My wife and I WILL pull the trigger this year, both at 62. We have $3.3MM+ in, investable assets, with a paid off $400K house. I've been investing since 1987, so I've seen lots of ups and downs in the stock market, and although, I threw up a little 
, I stayed the course and kept investing and only started to shift from stocks to bond funds about 5 years ago.
Right now, we're about 55% in simple S&P 500 or Total Stock market funds, with about 10% of that, in overseas funds. 18% in Total Bond Market funds (6 year duration), 5% in short term Bond funds, 20% in 5 year CD's averaging just under 3% and the balance, in cash.
I feel comfortable here, but my wife feels a little uneasy about our bond allocation, since it has gone down a little in value, recently. She's looking at the increasing interest rates and the affect it will have on it. I know that it will go down a little, then gradually work it's way back up. Or it could have minimal affect if rates only go up another 1/2%
Right now, we have $1.1MM in tax differed accounts and $500K in Roths. The balance or about $1.8MM in taxable accounts. The CD's will be used first and added to if/when interest rates increase.
$70,000 (taxes included here) + $25,000 for healthcare costs (till Medicare in 3 years) +$25,000 in discretionary spending (fun) = $120,000 in spending - $25,000 in a small pension which we will start this year, so I really have to come up with about $95,000/yr, until we start to take SS at 70. We're flexible if that needs to change.
My plan is to do Roth Conversions on the tax deferred, yearly.
The real question here is, does anyone have any great suggestions on our bond portion? Anything different than a Total Bond Market Index that meets our risk comfort level? I'm a believer that bonds will hopefully give me a return "of" my investment and stocks will give me a return "on" my investment.
, I stayed the course and kept investing and only started to shift from stocks to bond funds about 5 years ago.Right now, we're about 55% in simple S&P 500 or Total Stock market funds, with about 10% of that, in overseas funds. 18% in Total Bond Market funds (6 year duration), 5% in short term Bond funds, 20% in 5 year CD's averaging just under 3% and the balance, in cash.
I feel comfortable here, but my wife feels a little uneasy about our bond allocation, since it has gone down a little in value, recently. She's looking at the increasing interest rates and the affect it will have on it. I know that it will go down a little, then gradually work it's way back up. Or it could have minimal affect if rates only go up another 1/2%
Right now, we have $1.1MM in tax differed accounts and $500K in Roths. The balance or about $1.8MM in taxable accounts. The CD's will be used first and added to if/when interest rates increase.
$70,000 (taxes included here) + $25,000 for healthcare costs (till Medicare in 3 years) +$25,000 in discretionary spending (fun) = $120,000 in spending - $25,000 in a small pension which we will start this year, so I really have to come up with about $95,000/yr, until we start to take SS at 70. We're flexible if that needs to change.
My plan is to do Roth Conversions on the tax deferred, yearly.
The real question here is, does anyone have any great suggestions on our bond portion? Anything different than a Total Bond Market Index that meets our risk comfort level? I'm a believer that bonds will hopefully give me a return "of" my investment and stocks will give me a return "on" my investment.
