Hi, I'm 61. Self employed... average work income for last 5-8 yrs has been from 50-80k/yr. Deciding to dial back work (as a freelancer) and maybe transition to more of a draw from dividend income - which Schwab projects at about 5-6k/monthly the way i'm currently allocated.
I've had a conservative (40% equity) PF since 2009. I'll agree i went and stayed too conservative too soon. Regret that now. Nonetheless, over 10 years (2009-2020) I've roughly doubled assets from about 800k to about 1.85m (give or take 100k depending on market volatility). If I'd had a 60/40 equity allocation (or higher) I'd have made far more. Periodic FA I consult with basically didn't believe I had the temperment for that risk level, so i never went above 45% equity. Now I'm pondering how much draw down i can realistically figure on with roughly 2m in assets. No debt, paid-for house in low COLA area. Frugal, cost-conscious non-extravagant lifestyle and not looking to spend excessively going forward. Good health. No pension, and will need to start paying at least 5-700/mo. for health insurance in October as i lose a performer-union PPO insurance program. SS at FRA might be around 1900/mo. 1400 (approx) if I take SS at 62. Haven't decided on that.
So one question.. is it 'too late' to add to equity in my PF, like. step up my exposure to something closer to a Moderate allocation ? Otherwise, other ways/ideas to boost my investment returns? Performance IMO has been average/mediocre over 10-11 yrs...then again - i recognize i should've been way more aggressively allocated in hindsight. Like maybe a few others, after '08-09, i never fully re-entered the equity market - and stayed more bond/FI oriented ever since. I do regret that but what can i do now? Well, actually that is kind of a question - could it still be profitable to up my equity percentage to the 50% range at age 61, for higher growth potential? Or, have i passed some sort of age benchmark that conventional wisdom says i should not add risk and..should follow whatever that adage is about matching one's bond/fixed income percentage to their age? (i.e. 60% bond/FI to 40% equity exposure)
Thanks for any thoughts! Love this forum, and really appreciate the shared knowledge and generosity of all who contribute here.
Best Regards,
Mike in Michigan
I've had a conservative (40% equity) PF since 2009. I'll agree i went and stayed too conservative too soon. Regret that now. Nonetheless, over 10 years (2009-2020) I've roughly doubled assets from about 800k to about 1.85m (give or take 100k depending on market volatility). If I'd had a 60/40 equity allocation (or higher) I'd have made far more. Periodic FA I consult with basically didn't believe I had the temperment for that risk level, so i never went above 45% equity. Now I'm pondering how much draw down i can realistically figure on with roughly 2m in assets. No debt, paid-for house in low COLA area. Frugal, cost-conscious non-extravagant lifestyle and not looking to spend excessively going forward. Good health. No pension, and will need to start paying at least 5-700/mo. for health insurance in October as i lose a performer-union PPO insurance program. SS at FRA might be around 1900/mo. 1400 (approx) if I take SS at 62. Haven't decided on that.
So one question.. is it 'too late' to add to equity in my PF, like. step up my exposure to something closer to a Moderate allocation ? Otherwise, other ways/ideas to boost my investment returns? Performance IMO has been average/mediocre over 10-11 yrs...then again - i recognize i should've been way more aggressively allocated in hindsight. Like maybe a few others, after '08-09, i never fully re-entered the equity market - and stayed more bond/FI oriented ever since. I do regret that but what can i do now? Well, actually that is kind of a question - could it still be profitable to up my equity percentage to the 50% range at age 61, for higher growth potential? Or, have i passed some sort of age benchmark that conventional wisdom says i should not add risk and..should follow whatever that adage is about matching one's bond/fixed income percentage to their age? (i.e. 60% bond/FI to 40% equity exposure)
Thanks for any thoughts! Love this forum, and really appreciate the shared knowledge and generosity of all who contribute here.
Best Regards,
Mike in Michigan