gcgang
Thinks s/he gets paid by the post
- Joined
- Sep 16, 2012
- Messages
- 1,571
With the run up in stocks over the last several years, I was wondering how retired folks have changed their portfolios and goals.
Seems like there are only a few options. Given an acceptable Firecalc success percentage, as the portfolio increased in value, and you are one year closer to death so your time frame is less:
1). Maintain current goals, reduce risk, selling stocks, increasing cash or bonds.
2). Rebalance to same AA, increase goals such as current spending or legacy gifts (an increase in Firecalc % above what is acceptable seems like a way of saying you're going to continue to LBYM and leave more stuff in your estate).
3). Do nothing, resulting in higher risk portfolio, and potential rewards of significantly increasing your goals.
I'm in my first year of retirement, feel like I've been handed a windfall with this years market results. I'm doing option 1 above, and increasing cash holdings.
Seems like there are only a few options. Given an acceptable Firecalc success percentage, as the portfolio increased in value, and you are one year closer to death so your time frame is less:
1). Maintain current goals, reduce risk, selling stocks, increasing cash or bonds.
2). Rebalance to same AA, increase goals such as current spending or legacy gifts (an increase in Firecalc % above what is acceptable seems like a way of saying you're going to continue to LBYM and leave more stuff in your estate).
3). Do nothing, resulting in higher risk portfolio, and potential rewards of significantly increasing your goals.
I'm in my first year of retirement, feel like I've been handed a windfall with this years market results. I'm doing option 1 above, and increasing cash holdings.