Rising equity glide path

[TheWizard]

I had a seven year span from start of retirement in 2013 until SS started. So I stayed around 55-60% stocks during the first part of that period.

My pension/annuity + SS exceeds my expenses most months now so I invest the excess in my taxable account, which has a target AA of 95% stock funds and 5% cash.

My net withdrawal rate, including RMDs is zero or slightly negative.
I expect my overall stock fund allocation to get up to 75% before too long. It might be even higher, but I have access to TIAA Real Estate Account in tax-deferred and will continue to hold lots of that...

 

[HMMY]

I retired at 55/45 at age 52. I am now 62/38. Dividends from taxable cover 50% of expenses. I will start drawing dividends from tax deferred at age 60, which together should cover nearly all my expenses. I plan to drift to 80/20 by age 70, when I will collect SS. SS + dividends and interest will exceed my current expenses, and I expect my expenses at 70 will be significantly lower. After age 70, I will let my equities run.

 

[Montclairbobbyb]

I'm riding 'n gliding... Putting my faith in my advisor (and Jesus)

 

[dtbach]

I've never changed anything for years. But then I'm not clairvoyant. Change means you have a 50/50 chance of being wrong.

 

[Suppertime]

My target is to spend dividends and around 1% of the portfolio from bonds/cash, don’t sell equities until they reach 80% or so.

 

[Out of Steam]

We've never ventured far from 50/50 stock/fixed income in retirement account allocations, even while working. Because of our need for fairly high withdrawal rates before Social Security eligibility (just below 4% for 2020, 4.5% for 2021), my intent has been to use a rising equity path.

Had been at roughly 45% stock at retirement, but we failed the sleep-at-night test and dropped that below 35% in mid-2020. I've let that allocation creep back up to 40%, and plan to stay there for at least a year, rebalancing if stocks decline. I've already done one adjustment, in late February when the S&P 500 hit 10% below peak.

I expect to be back at 50% stock once we have two Social Security payments started in 2025 or 2026.

 

[monte1022]

We've never ventured far from 50/50 stock/fixed income in retirement account allocations, even while working. Because of our need for fairly high withdrawal rates before Social Security eligibility (just below 4% for 2020, 4.5% for 2021), my intent has been to use a rising equity path.

Had been at roughly 45% stock at retirement, but we failed the sleep-at-night test and dropped that below 35% in mid-2020. I've let that allocation creep back up to 40%, and plan to stay there for at least a year, rebalancing if stocks decline. I've already done one adjustment, in late February when the S&P 500 hit 10% below peak.

I expect to be back at 50% stock once we have two Social Security payments started in 2025 or 2026.

I feel the way you felt. 50% stock dropping 50% and staying there for a while does terrible things to a plan. My concern is that we are 56/53 this year and SS is a long long way off. Having too little stock may be as devastating as having too much stock. But then again, we have flexibility in our spending as long as healthcare costs remain predictable

 

[Out of Steam]

I feel the way you felt. 50% stock dropping 50% and staying there for a while does terrible things to a plan. My concern is that we are 56/53 this year and SS is a long long way off. Having too little stock may be as devastating as having too much stock. But then again, we have flexibility in our spending as long as healthcare costs remain predictable

Agree on the huge impact of a market fall while taking a substantial account draw. There's no recovering losses on money that's spent. We're 62/61, so could take SS if required, though I'd like to delay to 66. My wife planned to take her SS at 62, but is working part-time right now at an income that would get it reduced.

The signs that inflation will be with us long-term, especially labor shortages, do bring up a concern about owning too little stock.