Lower your returns Now!

[db]

Quote:

I am a littlle more agressive with equities than most at age 70. *However, I am comfortable with a 60/40 split. *Ironicallly, if my stash were bigger, I would probably be more conservative. *

Charlie,

I too follow a 60/40 split for our portfolio as well as that of my 91 year old mother, but my rationale is different. It seems to me that you determine how many years of future income you need in fixed income securites to be comfortable, and let that guide your asset allocation. In my mother's case, the 40% in fixed income securities is more than 15 years of her annual draw, so I feel justified in allocating the other 60% to equities.

db

Hello db! Now there is an explanation for having
a 60/40 equities/fixed income allocation that even I would not dispute. Pretty safe planning, unless you are
counting on your mother's estate funding your ER, a
questionable approach IMHO.

John Galt

[db]

Quote:

*Pretty safe planning, unless you are counting on your mother's estate funding your ER, a questionable approach IMHO.

John,

My wife and I have been retired for more than 10 years, and, except for the RMD from an IRA I inherited from my dad, we have not drawn from our IRAs. I am the sole heir of my mother's estate. She draws a bit under 3% annually for her living expenses.

db