Is a 50/50 AA too conservative if I RE at 55?

[NW-Bound]

FWIW:

Slice-and-dice is not a derogatory term. It describes an investment methodology, which I use.

I do not belong to the Boglehead group, but often find that they have useful info.

Specifically in this case, see: https://www.bogleheads.org/wiki/Slice_and_dice for an explanation.

 

[comesailaway]

Considering worse case scenario

$100K allocated 50% stocks, 50% bonds. Bonds earn 2%
Real inflation rate is 6%. (Shadow Government Statistics - Home Page)



1. Market goes down 50% year 1.

Balance: $75,500. Rebalance to 50/50.


2. Market goes down 30% year 2.
Balance; $57,380. Rebalance to 50/50.


3. Market wobbles going nowhere the next 10 years. Interest rates now 0%.

Balance: $57,380.
Purchasing power: $34,428.


Essentially you've lost 2/3 of your account value.
Gold and/or real estate or a business may protect you.

 

[GenXguy]

Mid 50's and 1 year to FIRE, and I've dropped my equities from 80% to 43% of my AA over the last year as I've gotten my stash well above my original target. I plan to stay close to that AA for a while but will then increase equities during FIRE using a rising equity glide path.