Age vs Equity/Fixed Income Split

[frayne]

The rule of thumb about keeping your age as a percentage of your fixed income is some what dated in my opinion. I am 62 (retired, DW is 59))and have a 65 equities/35 fixed income split. The majority of my equities are index funds, TSM and S&P. Just wondering what others are doing.

For the sake of brevity if you would like to participate just put age and equities/fixed income split as something like this.

62=65/35

 

[prototype]

58= Planned is 58 Equities/42 Bonds (currently at 63/37)

guess I'm backwards from the "rule of thumb"

 

[Tinder8]

54=73/27
Rules are made to be broken

 

[MooreBonds]

36, currently carrying

88% "equities"
13% fixed income

The equity part is in quotes because it's an extremely jumbled assembly of equities (foreign/domestic), as well as big slugs in business development companies, MLPs (mostly oil pipelines), and some REITs. I have a very small percentage of the equity portion in a few diversified mutual funds (pssst). The fixed income used to be 12.25%, so I just rounded up to account for that small fixed income allocation inside the diversified funds.

Also, my fixed income component is comprised 1/3 of I-bonds that is performing double duty as my emergency stash if I truly needed to tap into it.

My goal is to retire on dividends and distributions (hopefully by 45), so I'm comfortable with the above allocation as it will allow me to do that, with no required liquidation of positions to fund planned, average budget expenditures.

 

[audreyh1]

54. I seem to be at age=equity at the moment, and since reading some recent drawdown studies, I'm inclined to allow my equity to gradually increase with age, rather than the other way around.

 

[SoReady]

57 =

Retirement accounts: 67/33

All accounts: 65/35 (this includes after tax investments/cash)

 

[Donzo]

57
about 50/50

 

[Katsmeow]

Like many people my allocation is for DH and I together so it is sort of hard and misleading to just give one age so I will go against the instructions to explain this and to give 2 age numbers.

66 and 59 - 55/45

 

[Tree-dweller]

60 (and retired. Makes a difference, perhaps.) @ 50/50

 

[W2R]

65 and retired with a truly tiny pension, no SS yet.

45% equities
55% fixed

 

[Marc]

56=70/30; hopefully on path to 60/40 by time I turn 60.

Marc

 

[Alan]

58 = 40/60 but I don't plan on going below 40% equities in future years.

 

[retire2020]

49 - 65/35 …currently

Future plan is to have..

55 - 60/40…..Then reduce a percent every year in equity
60 - 55/45
65 - 50/50
70 - 45/55
75 - 40/60
80 - 35/65….and so on. Will see how market performs and will adjust according but this is the plan as of now.

 

[RobLJ]

55: 60/20/20 (cash &other).
I'm allowing myself to range between 55-65 equity, with 60 in the middle.

 

[foxfirev5]

Holding steady at 45/35/20 with less than 2 years until ER. Sufficient cash to fund 5 years retirement. At that point I plan on being around 50/50 equity/fixed. I have no age in bonds formula, just a plan based on my current situation.

 

[Gatordoc50]

53- 65/35

 

[donheff]

65, dw 60: 60/40 (currently up to 63/37). We have good pension support and will leave it at this level for now.

 

[brett]

62 & retired.

60/40 today. But it fluctuates by 10 percent depending on the market situation/opportunities.

Our current income requirements are satisfied by a DB pension and other income items not pertaining to our investments accounts.

 

[Pharmmgr]

Currently 45, approximately 70% stock and 30% bonds.

 

[clifp]

Age 54. 70/10/5 15% in Real Estate and angel investments.

 

[rodi]

age 52, DH is 61. 55/45.

It should be noted that DH is 100% fixed income (bond funds)/cash (CDs). I skew more towards equities in my retirement accounts to compensate.

 

[Svensk Anga]

54=67/33

I think that "age in bonds" rule is obsolete. It came from an era when one made it to retirement with very little life expectancy left. Also, a couple generations ago, inflation was lower, with deflation common in panics. Lending money (owning bonds) is not so safe when the Fed is targeting some positive inflation rate, and may very well overshoot it.

 

[Apex1]

39 = 90/10, not RE'd yet although plan to stick to 90/10 throughout RE and mitigate the high equity risk by having a WR below 2.5%

Disclosure: >90% of investments are in a professional corporation, a taxable account which taxes fixed income at close to 50% regardless of personal tax bracket

 

[TOOLMAN]

58=77/23

 

[amfox1]

Age 46. 54.5/45.5 as of today. Ideally, we'd like to be at 63/37.