Three questions for you veterans (of this forum)

[jime444]

Just getting my feet wet on the forum; it's good and learning quite a bit, so far. Gotten through about 5 books on the recommended list. Three questions:
1. What's your asset allocation?
2. So you plan to modify as you and/or your significant other get older?
3. Time to retirement? or, retired, how long?

Thanks in advance. I'm now almost "chomping at the bit" for FIRE.
Jim

 

[LOL!]

1. Nominal asset allocation is 31% US equities, 31% foreign equities, 31% fixed income, and 7% commercial real estate.
2. Yes.
3. I am semi-retired for the last 5 years.

 

[W2R]

Welcome to the Early Retirement Forum, and good for you to have already read 5 books on the list! I am impressed. Those books were really helpful to me. Rick Ferri's book "All About Asset Allocation" is one of several that I found to be very helpful in understanding asset allocation issues.

1. My asset allocation is 45:55 (equities:fixed).

2. Yes, probably; I may use 10% or less of the equities portion to purchase an immediate lifetime annuity if/when I reach age 80-85. I should get a pretty good rate at that age. The advantage would be to gain a steady income direct deposited to my bank account. I could rely upon this income for my living expenses without paying any attention to it, so I would have no worries of market crashes as I become less and less capable and reach the age of sharp mental/physical decline.

3. Age 64, fully retired for two and a half years and loving it.

 

[bbbamI]

1. 35/50/15 (more or less)
2. Maybe
3. My age 54..retired at 41. DH's age 58..retired at 54..

 

[mickeyd]

Welcome to the Group jime,

1. What's your asset allocation?
60/40

2. So you plan to modify as you and/or your significant other get older?

Maybe so. Only time and cash flow will determine that one.

3. Time to retirement? or, retired, how long?

Retired completely about age 60 (7-8 years ago)

 

[clifp]

AA 75% Equities 15% cash, CDs, and Bonds. 10% other rentals angel investing.

Modification at some point in the next 20 years I'll adopt a slightly more conservative portfolio and move from collection of individual stocks to ETFs

3. Retired at 39, 13 years ago.

 

[Avalon]

1 - 57/34/9
2 - Possibly
3 - Retired 6 years

 

[FIREd]

1 - 27% fixed income and cash, 35% equities and commodities, 38% investment real estate.
2 - Probably.
3 - Retired 2 years, but DW still works full time.

 

[Midpack]

1. What's your asset allocation? 56:38:6, letting it drift up to 60% equity.
2. So you plan to modify as you and/or your significant other get older? Will probably reduce equity exposure very gradually, but no hurry (right now esp). I was 100% equity until my mid-forties (not recommended for anyone) and about 70%+ until I retired (also not a recommendation).
3. Time to retirement? or, retired, how long? Retired for one year as of today as a matter of fact!

 

[W2R]

Congratulations on your retirement anniversary, Midpack! It seems like only yesterday. Time flies.

 

[WilliamG]

1. What's your asset allocation?
50/50 Don't want to bet either way!

2. Do you plan to modify as you and/or your significant other get older?
Probably not. Our family situation is such that we need to help out and are concerned for more than just us (DW&me). Not shooting for a particular estate but anything left for 5 grand kids is certainly ok!

3. Time to retirement? or, retired, how long?
Retired in 2000 at 55.

 

[ejman]

Just getting my feet wet on the forum; it's good and learning quite a bit, so far. Gotten through about 5 books on the recommended list. Three questions:
1. What's your asset allocation?
2. So you plan to modify as you and/or your significant other get older?
3. Time to retirement? or, retired, how long?

Thanks in advance. I'm now almost "chomping at the bit" for FIRE.
Jim

1. Nominally 50/50 but with a wide 10% band since I don't like to rebalance too often. I'm currently at about 53/47 so I'm watching it closely.

2. I've brought down the equity portion of my AA gradually since I retired 10 years ago but I'm comfortable with the current 50/50 split so I may stay there for a long while. Just as W2R said sometime in my 80's I might consider a small portion of my assets going to an annuity - will see (currently 62)

3) Retired end of 2002 at age 52. Just for additional information, no pension or other sources of income - relying entirely on asset return, will take SS this year at 62.

 

[Nords]

Just getting my feet wet on the forum; it's good and learning quite a bit, so far. Gotten through about 5 books on the recommended list. Three questions:
1. What's your asset allocation?
2. So you plan to modify as you and/or your significant other get older?
3. Time to retirement? or, retired, how long?

1. >90% equities, ~8-10% cash. That gives us two years of spending during bear markets, or we replenish the cash stash annually. I have a military pension with cheap healthcare so we feel comfortable with the high-equity portfolio.

2. Like Clif, some of our equity is devoted to angel investing. It's a lot of work, and I think I'll be doing less of it in the future. But we'll be shifting from one type of equity to another, not out of equities.

3. I've been officially retired for 10 years and 29 days! Not that I'm counting...

 

[Animorph]

1. Nominally 100/0 all equities. Currently about 12% cash and bonds

2. I vary the cash in response to the market, more when things are going great, less when the market is way down.

3. Retired late 2008, DW plans on 2013.

 

[arky]

1. 20/40/40 AA. (Yes, I'm a wuss when it comes to risk)
2. No plans to adjust since current plan is to take SS at 66 (3+ years from now).
3. Formally retired 4 1/2 years (Jan 2008), last day of work was 5 years ago (Aug 2007).

 

[Katsmeow]

1. 55/45
2. Maybe...we'll see
3. Semi-retired 2 years ago (I'm 58), DH is 64, retired 2 years ago

 

[lemming]

I can't believe you are all being so nice and giving him an executive summary.
Everyone shares that info but I don't see how he has learned anything on his own if he hasn't seen that already.

So Jime... what's yours and why?

 

[dtbach]

1. 65/30/5
2. Gradually move to 45/45/10
3. Retired 2 years ago at 58. DW still working until my Navy retirement starts in 7 months.

 

[MooreBonds]

1. 50% Domestic Equities* / 8% Natural Resources / 27% International / 15% Fixed Income
(*contains decent amount of large-caps with int'l revenue...and about 1/4 of the Domestic Equity allocation is composed of MLP pipelines and REITs)

2. Not planning on increasing allocation to FI over the next 15 years (hope to be FIREd in next 12-15 years). Once retired, might gradually increase FI to 20%-25%, but goal is to be able to live off of the divvies/interest alone.

3. Currently 35, single, and a wage slave....so the future Mrs. will be the big wild-card in terms of when to hang up my hat.

 

[jebmke]

40/60 equity/fixed. No cash. age=59. Retired 5 years ago but did some consulting for a couple years before calling it quits for sure in 2009. No immediate plans to change the allocation any time soon. Pension starts @65 and then SS at 70.

 

[frayne]

60/40, equities/fixed, 90% of equities in no load index funds, majority in FIDOs S&P index fund, .07 exp. ratio.

Usually rebalance once a year around the middle of Jan.

61 years old and retired now for seven years.

 

[MichaelB]

Just getting my feet wet on the forum; it's good and learning quite a bit, so far. Gotten through about 5 books on the recommended list. Three questions:
1. What's your asset allocation?
2. So you plan to modify as you and/or your significant other get older?
3. Time to retirement? or, retired, how long?

Thanks in advance. I'm now almost "chomping at the bit" for FIRE.
Jim

1. My asset allocation is 40% equities, 50% fixed income and 10% cash
2. I expect to substantially shift fixed income to equities
3. I retired 12 years ago

 

[WilliamG]

1. My asset allocation is 40% equities, 50% fixed income and 10% cash
2. I expect to substantially shift fixed income to equities
3. I retired 12 years ago

! Not the usual retiree direction. Is this a tactical move you're planning?

 

[Cb]

Ages 51 & 52

70% stock (1/2 Int'l), 10% CCF, 20% TBM

I retired 6 years ago, wife retired yesterday w/ HC bennies

I'd plannd to shift another 20% to FI upon her retirement, but can't bring myself to do that after reading Warren Buffet's "return-free risk" column a few months back.

Non-indexed pension starts in 8 years, followed by SSI eligibility which should cover the non-discretionary (50%) part of our projected budget.

Cb

 

[Keim]

I am 40. Wife is 41. I work part time due to a medical issue, and desire to have a parent home for the kids after school. Wife works full time.
1. 80% equity. 20% bonds, all in an index portfolio.
2. We plan to get closer to the age in bonds rule as we near retirement.
3. Hope to retire when the 8 year old graduates college. About 15 years. Sooner if the market allows!

You didn't ask, but I am also completely debt free, including the house.