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Old 11-25-2011, 09:49 AM   #21
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Thanks so much. I want to make sure that I'm clear...you ARE retired and you're 60% in equities?
Retiring next month. Am, have been and will continue to be 60% equities/40% fixed income in my investments. I think 60% equities/40% fixed income is quite typical of folks on this forum.

However, something to keep in mind is that this excludes my defined benefit pension and social security. If those were to be factored in as fixed income equivalents then it my AA would be more like 30% equities/70% fixed income.
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Old 11-25-2011, 10:40 AM   #22
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57, retired 4y, staying the course with 21% individual equities and 100% med's.
50/50 and 100% meds also.
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Old 11-25-2011, 11:00 AM   #23
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Thanks to all. Quite a diversity of opinions and approaches (as often seems to be the case.) A couple of posters have volunteered the fact that they also have a pension. On one hand, depending upon the size of one's nest egg, it would seem that the existence of a pension would "allow" one to be a bit more aggressive with their portfolio (higher percentage of equities.) On the other, having a pension might decrease the importance of growing that nest egg, thus reducing the need for greater exposure to equities. What's your take? If you don't mind, going forward, please let me know whether or not you have a pension and how that factors into your overall investment approach.

For the record, I'm 56...retired about a year...NO pension. I've been quite conservative on the investment front over the years, but have been buying a bit over the last 2 or 3 months. I'm currently at about 25% equities...75% fixed, but have an eventual equity target of 35-40%. Perhaps a bit higher should things get really cheap.

Your feedback is very much appreciated. Thanks!
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Old 11-25-2011, 11:32 AM   #24
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Thanks to all. Quite a diversity of opinions and approaches (as often seems to be the case.) A couple of posters have volunteered the fact that they also have a pension. On one hand, depending upon the size of one's nest egg, it would seem that the existence of a pension would "allow" one to be a bit more aggressive with their portfolio (higher percentage of equities.) On the other, having a pension might decrease the importance of growing that nest egg, thus reducing the need for greater exposure to equities. What's your take? If you don't mind, going forward, please let me know whether or not you have a pension and how that factors into your overall investment approach.

For the record, I'm 56...retired about a year...NO pension. I've been quite conservative on the investment front over the years, but have been buying a bit over the last 2 or 3 months. I'm currently at about 25% equities...75% fixed, but have an eventual equity target of 35-40%. Perhaps a bit higher should things get really cheap.

Your feedback is very much appreciated. Thanks!
I think a retiree in his or her mid 50's should take at least a 50/50 approach pension or not. Nothing is forever anymore with pensions. The only thing that might work anymore is having some exposure to stocks for growth. That being said you need an asset allocation plan that you can live with and stick to it.
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Old 11-25-2011, 11:48 AM   #25
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I agree ripper1.

I'm 56 like ARB57. Retiring in December 2011. Small pension from a former employer that I will tap in 4 years that will cover 10-15% of annual living costs; plus SS (at age 70 I think).

I think I would probably be 60/40 whether I had the pension or not; I need equities as an inflation hedge in the event my longevity is good. But having the pension makes my withdrawal rate more comfortable than if I didn't have it.
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Old 11-25-2011, 12:15 PM   #26
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33% equity -- planned to increase it to 50%.
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Old 11-25-2011, 12:22 PM   #27
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I agree ripper1.

I'm 56 like ARB57. Retiring in December 2011. Small pension from a former employer that I will tap in 4 years that will cover 10-15% of annual living costs; plus SS (at age 70 I think).

I think I would probably be 60/40 whether I had the pension or not; I need equities as an inflation hedge in the event my longevity is good. But having the pension makes my withdrawal rate more comfortable than if I didn't have it.
Congratulations on your retirement. Like ARB and yourself I will also be 56 in Jan 2012.
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Old 11-25-2011, 12:45 PM   #28
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58 retired AA is currently 0/0, Always was 100% equities until the early 2000's. If/when the S&P hits the low 700's, may repatriate 50% to buy equities. No pension.
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Old 11-25-2011, 01:12 PM   #29
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I'm retired, and I am staying the course (and will rebalance in January).

My target AA is 45:55 equities:fixed.
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If you don't mind, going forward, please let me know whether or not you have a pension and how that factors into your overall investment approach.
I am a retired federal employee, which gives me a pension and access to group health insurance coverage for life. My little pension is in the lower to middle 3 figures per month after my health insurance premium is subtracted out.
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Old 11-25-2011, 02:43 PM   #30
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Still sitting tight. Have not hit my re-balance triggers yet.

I did cull a bottle of wine out of my cellar last night so my liquid assets dropped a little.
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Old 11-25-2011, 03:23 PM   #31
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A couple of posters have volunteered the fact that they also have a pension. On one hand, depending upon the size of one's nest egg, it would seem that the existence of a pension would "allow" one to be a bit more aggressive with their portfolio (higher percentage of equities.) On the other, having a pension might decrease the importance of growing that nest egg, thus reducing the need for greater exposure to equities. What's your take? If you don't mind, going forward, please let me know whether or not you have a pension and how that factors into your overall investment approach.
Asset allocation considerations for a military pension | Military Retirement & Financial Independence
Asset allocation considerations for a military pension (part 2 of 3) | Military Retirement & Financial Independence
Asset allocation considerations for a military pension (part 3 of 3) | Military Retirement & Financial Independence
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Old 11-25-2011, 03:33 PM   #32
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I do the 100 - age thing as the percentage is equities.

When the new year rolls around, it'll be time to do the annual check my target vs actual asset allocations dance
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Old 11-25-2011, 10:42 PM   #33
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FIREd, age 53
AA 32/65/3
Staying the course Still accumulating on a modest scale, diversifying my MF bond holdings with respect to average duration.
Survivor benefits: CSRS pension and health insurance for life.
Annuity (conversion of my TSP 401(k)) income.

My own FERS pension coming at age 56.
I can draw my own SS at 62. No spouse SS benefit.

AA when employed: 60/40
AA at retirement: 50/50
Current AA target : 30/70 +- 5%

Modest size nest egg, low to medium risk tolerance.

I am single, so all I have is all I have.
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Old 11-25-2011, 10:43 PM   #34
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Retired in April. No pension. No Social Security for another 2 years.

I am living off dividends from preferred shares and a CD ladder. Mix is about 40% Preferreds, 60% CD ladder.

IRA is presently 80% bonds, 20% stocks. No MF. ( Hope not to have to touch this until RMD time )
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Old 11-25-2011, 10:55 PM   #35
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Been buying on the dips. Mostly DVY and IVW through FIDO's commission free program. Sold Oct and Nov calls on part of my DVY stash. As you might imagine, they have all expired worthless which so far suits me fine.
From the technical indicators I follow, the market is clearly in the crapper, but due for a bounce next week, but I don't expect any long term joy.
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Old 11-25-2011, 11:19 PM   #36
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I have been buying junk, selectively. Also added to a beaten down name I like. I bailed out of a single name that has a great long term opportunity but which may not have the balance sheet to make it to the eventual pot of gold. The resulting cash I am feeding back into the equity market every time there is a really lousy day (like wed.).

Other than that, I keep plunking the 401k contributions into a balanced fund that is about 50/50 and accruing cash balance pension credit. I am about 60/40 overall, but I usually run more like 70/30 and will get back to that level by the time I reinvest the cash I raised from my recent sale.
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Old 11-25-2011, 11:30 PM   #37
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Been buying on the dips. Mostly DVY and IVW through FIDO's commission free program. Sold Oct and Nov calls on part of my DVY stash. As you might imagine, they have all expired worthless which so far suits me fine.
When did you sell those calls? Every time I check DVY call prices they seem to be hardly worth the commission, let alone the risk of being called away...
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Old 11-26-2011, 12:28 AM   #38
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I'm an early-early retired, closing in on 10 years now. A ways to go before SS. 60/40 Equities/Fixed, have not hit any rebalancing trigger points lately. Trigger points are + 5% of total portfolio, so equities would have to be < 55% or > 65% for action.

As the famous Alfred E. Neuman said: "What - me worry?"
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Old 11-26-2011, 05:28 AM   #39
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In retirement process, final in January 2012. Will have SS and 2 pensions which together meet 80% of expenses. Could live off them with some less then severe cut backs. I am currently at 60/40 with all other investments. Will move to 50/50 over the next 10 years and probably stay at that level.
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Old 11-26-2011, 07:28 AM   #40
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A couple of posters have volunteered the fact that they also have a pension. On one hand, depending upon the size of one's nest egg, it would seem that the existence of a pension would "allow" one to be a bit more aggressive with their portfolio (higher percentage of equities.) On the other, having a pension might decrease the importance of growing that nest egg, thus reducing the need for greater exposure to equities. What's your take?
I have been retired for 7 years with a Federal pension that covers about 50% of our expenses (could cover 100% in a crisis). Whe I retired I was around 90% equities (I thought like Nords) but gradually moved down to about 60% where I plan to stay. I ultimately concluded that it made sense to view that "discretionary" spending from the portfolio as a simple income stream to secure. I like the reduced volatility and the research that argues for advantages from diversity. I don't see a need to drop to 50% or less as many do because I have a lot of flexibility to back off spending. Without the Pension I would be no higher than 50% and might be 40%.
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