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Old 02-13-2020, 09:47 AM   #61
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I'm currently 60% stocks/20% bonds/20% cash (mm,CDs etc). The 20% bonds covers about 10 years of expenses which will overlap with a pension and SS. Although when pension arrives in five years I will be 70%/20%/10% and I'll probably stay that way even after SS kicks in at FRA
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Old 02-13-2020, 10:06 AM   #62
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Now 50%

20% bonds, and 30% cash equivalent.
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Old 02-13-2020, 10:20 AM   #63
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$2600 in checking. Rest in index stock funds.

Retired 3 years ago at 51.

Current annual spending % of net worth is 1.5%. If stock market goes down 67% my annual spending % of net worth would be 4.6%.
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Old 02-13-2020, 10:49 AM   #64
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40% Stocks/ 40% Bonds/ 20% Cash
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Old 02-13-2020, 12:58 PM   #65
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75% Dow/S&P index funds, 25% cash, savings @1.25% past 12 months in my IRA core position of FIDELITY GOVERNMENT MONEY MARKET (SPAXX)
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Old 02-13-2020, 02:14 PM   #66
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Around 30%.
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Old 02-13-2020, 03:09 PM   #67
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This thread is really interesting. Im surprised, actually. Weve dialed it back quite a bit over the last 5 years, to the point we feel too conservative. As of today 44 stock/56 bonds and cash. Some mention pensions, wonder how many of total responders so far have them. Us...only a very small pension.

Not retired yet, but soon
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Old 02-13-2020, 03:23 PM   #68
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This thread is really interesting. Im surprised, actually. Weve dialed it back quite a bit over the last 5 years, to the point we feel too conservative. As of today 44 stock/56 bonds and cash. Some mention pensions, wonder how many of total responders so far have them. Us...only a very small pension.



Not retired yet, but soon


We are at about 50% in a stable value fund(within our 401k) paying 3%.
The rest is 40% VINIX, 15% VIEIX, 5% VTIAX.

We have non COLA pensions to cover about 60% of our spending.

We are in our first year of retirement, so we are still trying to figure out this retirement phase!
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Old 02-13-2020, 04:03 PM   #69
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This thread is really interesting. Im surprised, actually. Weve dialed it back quite a bit over the last 5 years, to the point we feel too conservative. As of today 44 stock/56 bonds and cash. Some mention pensions, wonder how many of total responders so far have them. Us...only a very small pension.

Not retired yet, but soon

I have a very small pension but it comes with a cola
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Old 02-13-2020, 08:21 PM   #70
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61, retired 13 years, no SS (yet) or pension.

100% individual stocks (all dividend growth) since 1993. Dividend flow is considerably more than spending, so I am still buying more.
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Old 02-13-2020, 09:48 PM   #71
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About 1/2 of my NW is in real estate (approx 33% our primary home & vacation place, the other 66% is for sale).
About 66% of the other 1/2 is in index funds and the rest is in a money market fund.

That's been way too much cash sitting in the MM fund, so I'm planning to put about half of it into index funds too. That will leave enough cash for 4-5 years of a safety net if the market has a major correction.

As the real estate sells I plan to put most of it into index funds, but may make adjustments depending on market conditions and whatever opportunities may come up by then.

So, I guess roughly about it's been about 12-14% in cash. But, I am planning to adjust that down to about 6-7%.
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Old 02-14-2020, 05:19 AM   #72
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Was discussing this cash allocation question with my FA and I said minimum 100-150k in cash (money market or short term CDs. All of which pay little to nothing

He reminded me that I have a million dollar no cost credit line for real emergencies and in 10 years have never drawn out more 25k at any one time except when I bought a house which would have exceeded any cash held anyway. So he wanted to know why so much cash? (3 years withdrawal rate based on other income)

Furthermore during the 3 year period there are always bonds coming due in my bond ladder for cash if needs be.

Starting to think it is just insecurity and that we are used to having a 100 k in the bank. As it were separate from investments.

Is my thinking outdated?
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Old 02-14-2020, 06:27 AM   #73
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I think the bonds vs cash debate is a bit outdated. IMHO alot of it comes from the fact that brokers sold bonds, but not cash. So cash was a waste.

I think bonds and cash should be one category where people just evaluate yield, term, and risk. My strategy in this category is to ensure I get a sufficient term premium and risk premium.

Right now, there is hardly any difference in rates for BBB vs AAA. So I take the low risk stuff. There is also no real term premium so i keep term short.

In this category I find that CU CD's have the lowest risk and highest yield so I buy those.

For my stocks bonds and cash I am 55/45 where bonds and cash are lumped together. But I have a fair amount of real estate / alternatives so when you lump it all together I am closer to 33/33/33 (about a 1/3 in each give or take).



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Originally Posted by Retired Expat View Post
Was discussing this cash allocation question with my FA and I said minimum 100-150k in cash (money market or short term CDs. All of which pay little to nothing

He reminded me that I have a million dollar no cost credit line for real emergencies and in 10 years have never drawn out more 25k at any one time except when I bought a house which would have exceeded any cash held anyway. So he wanted to know why so much cash? (3 years withdrawal rate based on other income)

Furthermore during the 3 year period there are always bonds coming due in my bond ladder for cash if needs be.

Starting to think it is just insecurity and that we are used to having a 100 k in the bank. As it were separate from investments.

Is my thinking outdated?
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Old 02-14-2020, 08:11 AM   #74
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Quote:
Originally Posted by Retired Expat View Post
Was discussing this cash allocation question with my FA and I said minimum 100-150k in cash (money market or short term CD’s. All of which pay little to nothing

He reminded me that I have a million dollar no cost credit line for real emergencies and in 10 years have never drawn out more 25k at any one time except when I bought a house which would have exceeded any cash held anyway. So he wanted to know why so much cash? (3 years withdrawal rate based on other income)

Furthermore during the 3 year period there are always bonds coming due in my bond ladder for cash if needs be.

Starting to think it is just insecurity and that we are used to having a 100 k “in the bank”. As it were separate from investments.

Is my thinking outdated?
What do you consider little paying little to nothing?

In Jan I always put a year’s worth of spending in high yield savings and short-term no penalty CDs, or CDs that will mature within the year. I’m happy with 1.7%-2.0% on highly liquid funds right now.
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Old 02-14-2020, 08:13 AM   #75
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Originally Posted by BeachOrCity View Post
I think the bonds vs cash debate is a bit outdated. IMHO alot of it comes from the fact that brokers sold bonds, but not cash. So cash was a waste.

I think bonds and cash should be one category where people just evaluate yield, term, and risk. My strategy in this category is to ensure I get a sufficient term premium and risk premium.

Right now, there is hardly any difference in rates for BBB vs AAA. So I take the low risk stuff. There is also no real term premium so i keep term short.

In this category I find that CU CD's have the lowest risk and highest yield so I buy those.
Yep.
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Old 02-14-2020, 09:20 AM   #76
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This thread made me look. Fixed income and cash sit at 49.54%

We originally aimed for a 40/60 allocation. That was based on having a set $$ amount in fixed income that let DW sleep at night.

We still have that same $$ amount in fixed income but since I still work part time, the EQ portion has grown. I'm comfortable with 50/50 and DW says as long as we still have that amount in FI, she is happy with it.
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Old 02-14-2020, 09:52 AM   #77
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Danged cute.
Thought it was Dawn Wells from Gilligan's Island!
Thankfully, W2R only looks like Dawn Wells.......

https://www.huffpost.com/entry/dawn-...b0511db3dfa546


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Gilligan’s Island” star Dawn Wells said Wednesday that she’s broke and would be grateful to those “willing to offer support.”
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Old 02-14-2020, 10:38 AM   #78
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Thankfully, W2R only looks like Dawn Wells.......

https://www.huffpost.com/entry/dawn-...b0511db3dfa546
Life could be so much worse! Luckily a divorce at age 50 pushed me to start actively steering my own life in the direction that I wanted it to go. Plus, I didn't have the health problems that she had to deal with (apparently without insurance?).
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Old 02-14-2020, 10:43 AM   #79
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Unless the bonds are short duration I don't know that I would count them as "safe" funds.

JMHO
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Old 02-14-2020, 02:48 PM   #80
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About 35% between bonds and cash. Virtually all is now in Tbilis for taxable accounts and 5 year laddered CDs in IRAs. Negligible bonds.

The yield pickup on longer term bonds doesnt seem worth the risk to me. Although Ive thought of putting 5%-10% into long term zeros in the IRA in case we really have a meltdown and rates go negative.
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