Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Very near withdrawal phase...now what?
Old 06-27-2007, 08:52 AM   #1
Dryer sheet aficionado
Maneiac's Avatar
 
Join Date: Jul 2005
Posts: 32
Very near withdrawal phase...now what?

I am at the point of setting up my "withdrawal phase" Vanguard portfolio. The below suggested portfolio is a 55/45 AA which suits my risk profile just fine. The current Dividend throw off is 3.55% which is slightly more than I actually need to draw. My question is whether I have sufficient diversity or oversubscribed in any particular fund? It appears ok but am I missing anything? This will suppliment a COLA'd pension and SS.

This is all in a tax deferred account:

Wellesley 44.00%
Total Stock 12.00%
Total Intnl 18.00%
Total Bond 16.00%
TIPS Fund 5.00%
REIT Fund 5.00%

Thanks for any input/suggestions
__________________
"Money doesn't grow on chickens before they hatch."
Maneiac is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-27-2007, 01:56 PM   #2
Thinks s/he gets paid by the post
kaudrey's Avatar
 
Join Date: Feb 2006
Location: Alexandria, Va
Posts: 1,053
Looks good to me. Of course, if you have taxable or other accounts, they should be factored in as well to see your overall allocation.
kaudrey is offline   Reply With Quote
Old 06-27-2007, 02:04 PM   #3
Thinks s/he gets paid by the post
jIMOh's Avatar
 
Join Date: Apr 2007
Location: west bloomfield MI
Posts: 2,223
is this all in a taxable account? obviously Wellesley might be slightly higher impact than other funds.

If you can live off dividends, I might suggest adding a money market fund to this mix, and direct all dividends to the money market. You'll earn some interest on this in the mean time.
__________________
Light travels faster than sound. That is why some people appear bright until you hear them speak. One person's stupidity is another person's job security.
jIMOh is offline   Reply With Quote
Old 06-27-2007, 02:47 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W Just West of Woman Hollering Creek
Posts: 6,671
I assume that you also have a MMF in a taxable account to make distribution easier.

I find your inclusion of the Wellesley fund an interesting use of a bond-heavy balanced fund. Out of curiosity, why did you select it for such a large % (44) when you could have gotten a similar 55/45 mix just using the other funds?

Along with your COLAd pension and SS, this is a pretty nice conservative portfolio that should serve you well and insure many good nights of sound sleep.
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Old 06-27-2007, 03:04 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Jul 2003
Location: Pasadena CA
Posts: 3,340
Looks good to me, especially the Wellesley part. When we finish transferring my wife's 403b to VG IRA her AA will be 50% Wellesley, 40% Star and 10% Asset Allocation Fund.
__________________
T.S. Eliot:
Old men ought to be explorers
yakers is offline   Reply With Quote
mickeyd
Old 06-28-2007, 07:14 AM   #6
Dryer sheet aficionado
Maneiac's Avatar
 
Join Date: Jul 2005
Posts: 32
mickeyd

I anticipated using Wellesley this way because I couldn't seem to come up with the higher dividend yield I was looking for by using a combo of the other TIPS/Bond funds. At least it didn't look as good when using X-Ray. I do have a MMF planned to sweep the dividends and capital gains into and rebalance from the MMF at least annually or if the MMF grows to more than 2 years worth of my annual spending requirements.

Thanks all for replying.....I was just looking for any real mis-steps that I could building into the portfolio inadvertantly.
__________________
"Money doesn't grow on chickens before they hatch."
Maneiac is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Accumulation or Withdrawal Phase - Still Deciding TromboneAl FIRE and Money 17 01-20-2007 06:55 PM
Do you agree with Bengen's "Layer Cake" withdrawal rate MikeK FIRE and Money 23 12-16-2006 10:50 AM
Withdrawal Rates in Paul Merrimans Book Hydroman FIRE and Money 17 05-10-2006 04:14 PM
Withdrawal rates - theory vs practice Roger_R FIRE and Money 56 01-17-2005 06:45 AM
"Is the Safe Withdrawal Rate TOO Safe?" Nords FIRE and Money 13 10-20-2004 10:36 AM

» Quick Links

 
All times are GMT -6. The time now is 04:11 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.