donheff
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Michael Kitces and Wade Pfau are out with a study arguing that retirees can do better starting out with about 20-40% equities and gradually raising that allocation to about 50-60% over time during retirement. NYT has a brief article on it. I get the idea - lower volatility during the critical early years preventing panic, supplemented by greater growth later when a dip won't be as alarming. Since this strategy leaves you with a substantial potential for buying in the early years I would like to see a study that evaluates it with a little market timing. Since you plan to gradually buy equities over time anyway, how would it work out to make your buys only on significant dips (e,g. >5%) rather than on a fixed annual or other basis?