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Old 01-25-2023, 01:49 PM   #61
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I use Excel. =PV(...

You can also compare with immediate annuity pricing.
What do you use as the discount rate if you have no cola?
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Old 01-25-2023, 03:30 PM   #62
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60 have a COLA pension that covers the non discretionary spending. 85/15 AA.
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Old 01-25-2023, 03:40 PM   #63
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62 and 63. 60/40 AA. Not claiming SS yet. Living on beneficiary IRA withdrawals and dividends, STCG, LTCG.
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Old 01-25-2023, 04:09 PM   #64
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What do you use as the discount rate if you have no cola?
FWIW, I use the expected rate of return on the portfolio.
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Old 01-25-2023, 06:57 PM   #65
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Both 61 in our first year of retirement. Current AA 80/20 with about 32% of spend covered by one cola'd & one non cola'd pension until SS at 70. Then about 80% covered by those sources.
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Old 01-25-2023, 07:06 PM   #66
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56 years old. 100% equity, but ~1year of expenses in cash so technically like 97% equity.
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Old 01-25-2023, 07:57 PM   #67
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Almost 57 and 100% stocks lots of individual stocks with Dividends and a few ETF's and will stay 100% stocks when I retire but all will be in 4 ETF's.
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Old 01-25-2023, 08:24 PM   #68
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77/76. Good pension as long as I’m breathing
50 equity/45 fixed/5 cash
Equity all in indexes (some of it TR/LS)
No plans to change
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Old 01-25-2023, 08:44 PM   #69
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Almost 57 and 100% stocks lots of individual stocks with Dividends and a few ETF's and will stay 100% stocks when I retire but all will be in 4 ETF's.
What are the 4 ETFs?
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Old 01-25-2023, 09:17 PM   #70
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What are the 4 ETFs?
vtsax, vti, voo, & vym this one may change jepi
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Old 01-26-2023, 06:10 AM   #71
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vtsax, vti, voo, & vym this one may change jepi
Thanks. Looks like these are Vanguard and JPMorgan ETFs. I need to find the equivalent ETFs for Fidelity.
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Old 01-26-2023, 07:45 AM   #72
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So, I was wondering what other folks are doing with their nest egg. It is a function of age, I think so, also what is your age?

Thx
Yes & No, not really, depends, lots of ways to skin a cat... how's that for an answer??

58/58, retired last year and went to effectively a 2 bucket system: Bucket 1 - 10 year bond/some cash ladder, Bucket 2: Diversified stock portfolio rebalanced annually. This floats my AA depending upon current valuations/balances... currently around 70/30. As others have said, lots of variables such as risk tolerance, how tight your expenses are, return expectations, WR. I made my (call it AA) decision based on the following factors...

- 10 YR Bond ladder of highly discretionary planned spend should insulate me from (most) market down turns allowing stocks to recover
- Mid 2% WR based on current balances
- Currently have my planned spend growing 3%/yr, but I have lot's of levers to pull if the $hit hits the fan which allows me to absorb any lumpy inflationary hits.
- Underwriting 5% average annual growth on portfolio, which I think is conservative, especially where individual bond yields are at today
- My MO is more of a "won the game, so keep playing" mentality. No hard and fast legacy goals, but I like to see things grow.

So that's just me. In today's interest rate environment I could probably make an argument to go 100% bonds, but so far, i like my plan.
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Old 01-26-2023, 08:02 AM   #73
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Age is one of many factors but, it is a factor.
If I am 70yo I am planning for a shorter time left than a 50yo. Not looking for any advice for my AA just, am curious what other folks do.

Anyway, there are so many factors but, I like to keep the question simple and see what kind of range of AA for different ages.
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Old 01-26-2023, 08:04 AM   #74
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Good luck with that!
Right??
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Old 01-26-2023, 08:13 AM   #75
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Age is one of many factors but, it is a factor.
If I am 70yo I am planning for a shorter time left than a 50yo. Not looking for any advice for my AA just, am curious what other folks do.

Anyway, there are so many factors but, I like to keep the question simple and see what kind of range of AA for different ages.

Right....to me investment time horizon is the much bigger consideration and not just age. Barring a tragedy, if you're in decent health and retire at 50-55 you're looking at a 20-30+ year time frame. Thats a looonnnggg time ! Hence, my large % in equities.
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Old 01-26-2023, 11:13 AM   #76
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What should be important to OP is not what others do as everyone's situation is different and most importantly, everyone's risk tolerance is different. There is another recent thread where some poor soul upped their stock allocation and then panic sold everything after a downturn.

Panic is far more dangerous to a portfolio than not have a "perfect" asset allocation. The OP's 60/40 is a very common recommendation of professionals and academics, and OP has apparently learned to deal with the ups and downs associated with that. So my recommendation is not to try to fix something that isn't broken.
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Old 01-26-2023, 12:31 PM   #77
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Age 65 1/2. 40% equities, using this market downturn to dollar cost average more of our cash into equities, almost all dividend funds.
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Old 01-26-2023, 12:41 PM   #78
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I am 62 yrs old and wife is 57 yrs. I retired in 2021, she is still working part time.

Our nest egg at Schwab is as follows...

68.13% consists of Mutual Funds, Sector ETF’s and individual stocks.

• Of this 68.13%, 48.00% is invested in Mutual Funds that track the entire U.S. stock market, or, S&P 500, such as VOO, SWTSX and SWPPX.
• Another 44.37% of this 68.13%, is invested in various Mutual Funds and in various Sector ETF’s.
• Finally, of this 68.13%, 7.62% is invested in Individual stocks.

Second, 28.33% of our Schwab Portfolio is invested in CD’s. I tried to build a CD ladder of sorts.

• Of the 28.33%, 20.58% is invested in a 2 year CD earning 4.65%.
• Of the 28.33%, 20.58% is invested in a 1 year CD earning 4.70%.
• Of the 28.33%, 58.82% is invested in a 6 month CD earning 4.60%.

Finally, 3.53% of our Schwab portfolio remains in cash accounts.

We have other investments in residential/commercial real estate and promissory notes that pay for our daily expenses. So, no need to make withdrawals from the Schwab account at this time.
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Old 01-26-2023, 01:06 PM   #79
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I am 68 with a cola pension and a micro SS. This covers all my normal expenses and have a different pot for vacations, etc. I am in 100% fixed.
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Old 01-26-2023, 01:14 PM   #80
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We’re both 66. I have a small non cola pension and I’ve started SS. DW is waiting until 70.
We’re currently adjusting from 67/33 to 75/25. Most of our expenses are covered by dividends, my pension and SS. We primarily invest in low beta stocks that grow their dividends each year. It’s our way of giving ourselves a Cola to beat inflation.
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