What is your Asset Allocation if you have no pension?

[Mountain skier]

late 50s... will retire in 5 months...non-cola pension 50% of projected expenses...48% stocks/ 52% cash

 

[ATXFIRE2034]

Age 38...89/0/11

 

[GenXguy]

Mid 50's, FIRE in 3 to 17 months most likely. No pension to come.

42/58. The 42% is equities, and 58% includes everything else, including cash, MM, CDs, bond funds, and fixed interest (stable value) funds.

 

[24601NoMore]

You and 24601NoMore make me feel better.
I am also an ER and in my early 50's, I am at 36/33/31, I would like to scale back to 15% on the MM/cash position but the political climate is so unnerving, the market is keep shooting up.

Where's the 31% cash parked? You might be able to still generate a decent bit of income from that much cash, which reduces the need to spend from the equity or bond portions of your portfolio.

That's what I did, but I was also lucky enough to get some CDs solidly north of 3% back before the Fed cuts of 2019..3+% money is pretty much all I need to pay the bills, and since I don't take leaving a legacy into account in my plan, am not concerned about losing out to inflation. That's my plan for now, until SS comes on line for DW (older than me by 6 years) and I can re-allocate some of that cash to higher risk assets..

 

[2017ish]

60 this month. DW soon 59. We are finally down to 63/37 now; soon to be 60/40. Plan reverse glide path to 75/25 at her age 70. (Bond funds are all short term, so I consider them and cash together)

No pensions, but under current projected payout, our socials at 70 would cover all non-discretionary expenses other than long-term care. Still not counting on that though.

 

[53anddone]

Great Thread.

55 and No Pension

53% Equities (Blue Chip Dividend Payers)
47% CDs, Munis, Preferred Stock, Cash

Pretty much can live off the income generated so will continue to drive the equity portion down.

 

[denstl]

60/40 but do have a pension. But even if I did not, would still be 60/40...

 

[steveark]

No pension

No pension but a large social security benefit once I hit 70. 45-45 allocation with 5% reits and 5% Alternatives.

 

[tmm99]

95/3/2

Retired 2 years ago at age 53. No pension. Blue skies!

Wow, that's pretty wild! I don't have the stomach for it.
Retired 5 years ago at age 55. No pension yet, but 55% equity.

 

[jebmke]

The right allocation is the one that YOU are comfortable with and you will re-balance and tax loss harvest as needed without feeling too nervous in the middle of a down draft.



I retired in December, 2007 with a 10 year window with no pension or SS. So I went with 40/60 so I wouldn't think about it if things went south - which they did right after I retired.

 

[jasg]

It's complicated.

No pension. Retired in early 2009 at 60 with an allocation of 95/5 - maintained that until 64 1/2.

Since then I have been moving money out of the market into TIAA Traditional and Real Estate. That bucket is now ~40% of my investments and I am spending it down with RMDs. Should last for 12-14 years.

The remaining 60% is in a Three Fund Portfolio that is 80/20. Interestingly, I have had the same dollar amount in equities for the last ten years or more.

The Real Estate money complicates the stock/bond calculation. Ignoring it I am at 58/42.

 

[fireorbust]

Mid 50s and ER'd last Jan..no pensions.

~25% Equities / 75% Fixed Income (bond funds, CDs and MMs). Working to get equities to ~20% in the new year, and have some company stock that I wanted to sell in 2020 vs 2019 for tax reasons that should get us there.

Divvys from the FI part of the portfolio pay most of the bills. The 25% Equities is 10+ year money for growth.

We're obviously very conservative, but with no W-2 paychecks and being the ages we are, I have no desire to live through another 2008. I've also done quite a bit of research into max drawdown and recovery periods and came to the painful realization that I can't psychologically deal with being "underwater" for potentially 10 or more years in the next bear with a large portion of my net worth..plus, with valuations as high as they are now..the next decade is not likely to be a repeat of the last.

We don't have any desire to just run the number up as high as we can get it, so our plan is structured to deliver "enough" to allow us to live to 95+ with a minimal level of risk.

DITTO to all of the above

 

[CyPlainsDrifter]

An adviser I really like says 120-(your age) = percent you should have in risk.
That's where I pretty much am.

 

[HMMY]

Retired at age 52 at 55/45 stocks/fixed income. Will go to 60/40 at age 65 and to 70/30 when I collect SS at age 70.

 

[esterhazy]

100/0. Technically I have some high-yield bonds (3%) and emerging market bonds (3%) but I don't think that's what anyone counts as "bonds" when they ask this kind of question. Been retired for 2 years.

 

[treadingwater]

65/35. Age 53. Retired 1 year. I have enough in bonds to get me close to ss at 70. Then ss should cover most/all necessary expense.

 

[Tracer]

55/35/10 (in traditional and Roth IRA's, mutual funds, money market accounts and CD's).

No pension but collect about $3500/mo from two annuities and SS.

Also get $1547/mo RMD from two IRA's

I'm 71. My FA says even in a "significantly below average market", I'm good till 100!!

 

[Retired Expat]

Moving to fixed

Great Thread.

55 and No Pension

53% Equities (Blue Chip Dividend Payers)
47% CDs, Munis, Preferred Stock, Cash

Pretty much can live off the income generated so will continue to drive the equity portion down.

Retired 8 years now. It has been a pretty good ride so far and loving every minute of it.

I was 75% equities but as I approached 60 and DW 65 moved more conservatively. Also the world is just so crazy right now!

Now 30% income bearing Real estate, 30% bond funds or bond ladders and 40 % equities. RE and interest and dividends covers all our expenses and needs. Any principal spent is purely for fun and travel and less than a 1% WR sustainable for a long while. Could easily cut back and in truth have to kind of look for ways to spend money as investment accounts even at a conservative mix are growing at least 4x faster than what I draw from them.

Pension No thanks, why trust my ex company with my money when in the end I didn’t trust them at all!

 

[indiajust]

5% 25% 37% 20% 3% 3% 7%
cash us intl bond energcmdyREIT

 

[teejayevans]

100/0. Technically I have some high-yield bonds (3%) and emerging market bonds (3%) but I don't think that's what anyone counts as "bonds" when they ask this kind of question. Been retired for 2 years.

100% equities? And I thought I was aggressive at 80/20.

 

[esterhazy]

100% equities? And I thought I was aggressive at 80/20.

These kinds of threads leave out so much information, they don't convey much useful information. What if someone doesn't have a pension but in 2 years their Social Security will kick in and that will cover 110% of their expected spending? What if someone has a portfolio that is 70x their expenses? What if someone is 40 years old? What if someone is 85 years old? What if someone is more concerned about growing the portfolio so it can support their special needs child after they're gone? What if someone started at 60/40 but just did never rebalanced over the past decade? What if someone has reason to expect there's a high probability (>90% chance, say) of inheriting at least a few hundred thousand from a parent in the next few years?


Etc etc etc.


So many variables, all of which affect the answer. None of which people explain

 

[Dtail]

55/35/10 (in traditional and Roth IRA's, mutual funds, money market accounts and CD's).

No pension but collect about $3500/mo from two annuities and SS.

Also get $1547/mo RMD from two IRA's

I'm 71. My FA says even in a "significantly below average market", I'm good till 100!!

Sounds like your FA is quoting from the Fidelity Retirement calculator.

 

[Tiger8693]

if I can stop thinking about our President and all the bad things that could happen to our economy.

I am the opposite, I am holding at 60/40 now, but if it looks like there will be a "change" in leadership, I will drop equities drastically to avoid the carnage.

 

[Dtail]

I am the opposite, I am holding at 60/40 now, but if it looks like there will be a "change" in leadership, I will drop equities drastically to avoid the carnage.

Could be just temporary.
Remember the market prediction the last time was way off.

 

[SlowlySaving]

Semi-retired at 50.

80/20, no pension