Hello to all from MrTeight…..

[Teight63]

This is my very first post as I am a 60 year old newbie to this really cool website.


I am entering what I believe to be my last year of work (I doubt I will make it thru the whole year.)

I started to manage my own finances, which at first was scary. However I found out fast the paid money managers seemed to make more money for themselves versus the client they serve.

On paper, my saving through a fair/modest return (average in the 7%-8%) would create a fairly comfortable lifestyle.

Looking for advice on a fairly simple methodology to make money inside investments (ex: 70/30 - 60/40 equities to bonds portfolio) that I will manage however will not have to constantly make changes. I know enough to get myself in trouble thus the reason for simplicity.

I had accomplished this inside Fidelity with a total market fund and CD’s however the CD run is coming to an end (5% plus days appear to be over)!

Open to all of your thoughts, ideas, advice. Ultimately it’s on me to manage, however if you respond and have some experience managing your retirement would love to hear/learn from those who are already at the location I am heading to.

Thank you all in advance!!

 

[Bigdawg]

Welcome. Congratulations on getting to this point. Simple 3 fund portfolio is the easiest to manage.

https://www.optimizedportfolio.com/... fund portfolio&utm_content=Bogleheads 3 Fund

Best to run your #'s through FIRECALC (link below). Also need to fully understand and track your expenses. Good luck to you sir.

 

[kgtest]

I think you are doing yourself a favor by managing this yourself. You already appear well positioned to do so.

Investing, like BigDawg elludes to with his simple 3 fund portfolio, doesn't need to be and shoukldn't be complex. Sure there are the few that options trade etc, but most on this forum are just like you. Stick around and you will learn a lot.

As long as your expenses don't outrun your investment returns, you should be fine. Firecalc will help you understand that. *It's a handy tool along with i-orp.com Optimal Retirenemt Planner

 

[Teight63]

Thank you for the reply….Fire Cal tells me I am in very good shape….I just need confidence on the fund management.

 

[Surewhitey]

We've stocked up on the 5yr CD's until recently. May just do shorter duration or MM's for 5-5.3% until they don't.

We have a good bit in a Vanguard 2030 fund for a current 64-36 % split. It also gives a good chunk of intl' exposure. It's supposed to auto adjust as we age...

 

[Eucerin]

Welcome!!!
Before I decided to retire, I had tried 7 different retirement calculators including firecalc, they are all confirmed that I am good to go. Many good tools out there.
Since this is your last year of work, it is a good time to adjust your portfolio asset allocation to what you prefer. 3 funds method is recommended here, but go with what your existing portfolio is and make some changes.
If you retire at 60 which is 5 years before Medicare. You will be using ACA for medical insurance, you do need to watch out the incomes. Many of us here have been able to control our income to the extent to be able to receive subsidies.

 

[FiveDriver]

Welcome T8 --

What are your thoughts on when to start your Social Security? The General Rule of Thumb is: Don't start your Draw until you absolutely need it. The SS Paycheck does increase nicely past the age of 62. Keep an eye on the rumblings coming from the Entitlement Gestapo.

Do you have a proven Budget ?? Do you know how much it's going to cost you to live and really enjoy your Retirement Lifestyle ?

Good Luck to you in moving to a Streamlined, Low Expense Ratio Portfolio.

 

[pacergal]

Welcome to the forum.
Bogleheads forum has a great reading list and wiki pages that are a great place to start self education.
Also, the forum members here are so knowledgeable and I have found them to be very helpful when I asked questions.

 

[Closet_Gamer]

Welcome. You will get loads of good advice here ... starting with the above to keep it simple.

 

[Teight63]

Teight Reply

Welcome T8 --

What are your thoughts on when to start your Social Security? The General Rule of Thumb is: Don't start your Draw until you absolutely need it. The SS Paycheck does increase nicely past the age of 62. Keep an eye on the rumblings coming from the Entitlement Gestapo.

Do you have a proven Budget ?? Do you know how much it's going to cost you to live and really enjoy your Retirement Lifestyle ?

Good Luck to you in moving to a Streamlined, Low Expense Ratio Portfolio.

____________________________________________________________________

Going to attempt to get to at least 65 and preferably 67 for SS. On paper I do not need it right now.
Budget is pretty well defined however I have never lived on a pure budget thus this will be new. Expenses are well defined and manageable.
This is new territory thus first year I suspect I will learn a lot.
Right now weighing paying off house on a loan that sits at around 3%

 

[Teight63]

Welcome. Congratulations on getting to this point. Simple 3 fund portfolio is the easiest to manage.

https://www.optimizedportfolio.com/... fund portfolio&utm_content=Bogleheads 3 Fund

Best to run your #'s through FIRECALC (link below). Also need to fully understand and track your expenses. Good luck to you sir.

__________________________________________________

I am looking at the return of Bond Funds over time and fully understand its a cash preservation strategy, however with historical returns below 3% does it make sense to put 30% to 40% of your money in such a low return vehicle?

 

[Chuckanut]

Congratulations and Welcome!

 

[TheWizard]

__________________________________________________

I am looking at the return of Bond Funds over time and fully understand its a cash preservation strategy, however with historical returns below 3% does it make sense to put 30% to 40% of your money in such a low return vehicle?

Perhaps not.
I certainly didn't/don't.
But it depends on where your retirement income is coming from and how oversized your investment portfolio is...

 

[Lsbcal]

__________________________________________________

I am looking at the return of Bond Funds over time and fully understand its a cash preservation strategy, however with historical returns below 3% does it make sense to put 30% to 40% of your money in such a low return vehicle?

You want to focus on real returns not nominal returns. And specifically what different points on the yield curve have returned historically. Here is a link to the Fed data on daily Treasury Inflation Adjusted bonds (TIPS) :
https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_real_yield_curve&field_tdr_date_value_month=202312

This site offers some well reasoned thoughts on bonds:
https://tipswatch.com/

Just a warning that fixed income can be more confusing then equities. There are a lot of info sources on FI. And a tremendous amount of divergent opinions which can lead a newbie to total confusion ... maybe even insanity.

 

[MarieIG]

Dear Teight63,

Welcome to the ER forum. I'm glad to see that you've run FIRECalc already. If you haven't done so, I would recommend looking over Gumby's List as well.

Some Important Questions to Answer Before Asking - Can I Retire?

Consider picking an asset allocation, i.e. 60/30/10, low-cost broad-based index funds, a withdrawal rate, timing and manner of withdrawals, and an emergency fund - but consider including in your calculations a strategy as to how you would/ will handle down swings in the market.