What percentage of your wealth is in a safe fund such as bonds or cash?

[RetireAge50]

70/17/13
The 13 is CD’s and Stable Value.
The 17 is whatever bonds Wellington and TRowe 2030 have.
The 70 is a combination of S&P 500 plus the Wellington and TRowe stocks.

[Drake3287]

I'm the odd one here, I comfortably live off my pension but my investments are 1/3 in cash, 1/3 in 401k/457 accounts which are now in very conservative funds and my final 1/3 is still rolling the dice in a brokerage account of various stocks.

[luckydude]

On average we maintain 5% in cash = 7 years of annual expense.

DW still works, and between her income + dividend from aftertax investment, we add another 2-3% of total portfolio value to the cash position annually (net of expenses), but that excess usually gets moved off to another bucket (real estate, stocks, etc.) based on our investment decisions.

Lucky Dude

[W2R]

My portfolio is 42% equity funds, and the rest is in bond funds and cash.

I also have:

1) a paid off house
2) tiny pension
3) Social Security
4) All my 2020 spending money in cash in the bank

This is pretty conservative I guess, but it's my preference.

[Dtail]

Quote:

Originally Posted by W2R My portfolio is 42% equity funds, and the rest is in bond funds and cash. I also have: 1) a paid off house 2) tiny pension 3) Social Security 4) All my 2020 spending money in cash in the bank This is pretty conservative I guess, but it's my preference.

I see you have taken that magical youth elixir again.

[FIREd]

I have about 35% in stable value investments at the moment. The rest is in residential and commercial real estate. The income from the RE covers my living expenses and I tap into my cash stash for extras, as needed.

[atmsmshr]

50/50 if I exclude the cash balance pension (not yet annuitized and compounding a 4% p.a.). Stocks are filled in order of priority: the after tax brokerage and Roth (small for now) with remaining % in the IRA.

If the cash balance pension is added to the mix, the AA is more like 35/65. Pension plan is overfunded, so I consider this balance to be a 'super CD' for now.

Newly retired, of the 50% bonds and cash I am trying to keep 6-9 months of cash.

[BeachOrCity]

Quote:

Originally Posted by Olderschool For retirees only? Just wondering......Right now I keep about 25% or 3 years worth of retirement income in safe funds because I figure that's what I would need to ride out a market downturn. I then have another 20% in a 2025 target date fund which, as you know is diversified. The rest (55%) I keep in an SP500 index fund. ?

If you are retired and 3 years spending is 25% of your total stash that equals an 8 percent plus withdrawal rate!?

Did I misunderstand the metrics of your post?

[DrRoy]

I have 42% in bonds plus a stable value fund. I keep one year's spending in a MM, which I reload annually.

[jollystomper]

Currently about 40% in a stable value bond fund, and 22% in cash. I went into retirement planning for a cash stash of 5 years, but due to various factors it looks like the cash stash could easily last double that, so I might reallocate some it (but not in a rush to do so).

[ShokWaveRider]

100% averaging ~3.8%

[misanman]

Ten year bond ETF ladder is available if we need it. Otherwise just roll maturing issues into a new 10 year issue. This also provides some "insurance" for LTC.

[ER Eddie]

Here's a good recent thread that talks about the issue.

https://www.early-retirement.org/for...-a-102108.html

My takeaway is that whether you pick 60/40 over 70/30 (or even ratios at a wider range) doesn't matter a whole lot.

[Splash]

55% safe funds with 2/3 of it in my 401k Stable Value Fund. Equates to >10 years expenses prior to SS and pension.

[karen1972]

I figure 5 years safe haven, the rest equities, so 1 year cash, 3 more years in fixed, with the 5th year covered by accumulated dividends.

I'm planning on 45 more years so risk is required to ensure I keep up with whatever inflation brings and TIPs isn't sufficient as it won't cover my health care inflation projections.

[John0019]

30% bonds

[audreyh1]

A little over 50% of investable assets in fixed income.

[Midpack]

We’re about 50/50. But I could make an argument for much more or much less, so I’m not sure asking others is useful. How much secure income? How high/low withdrawal? Age/longevity? Liquid assets? Asset allocation/risk tolerance? Need for ending balance (kids/charity) or die broke? Married/SO or not? And several others...

[Car-Guy]

I guess I could figure out the actual %, but I keep 2m in CD's/Bonds/cash equivalents as my safety net. As that grows, I pull it back down to 2m about once a year. All other funds are used for very short term equity investing, hobbies, living expenses, etc.

[eytonxav]

40/60 while in RMD stage.