Investing new $$ when close to retiring

[audreyh1]

Quote:

Originally Posted by DawgMan At the end of the day, I suppose I will float between a re-balance between 55/45 - 65/35 using my keen Spidey market timing abilities to move accordingly. How's that for a compromise?!

Fair enough - I have transitioned to using a 50/50 to 60/40 AA range depending on the value of CAPE10 when I rebalance.

I also have a pretty good pile of cash outside my portfolio that had accumulated over the years. I like it being there.

Belts and suspenders.....

[OldShooter]

Quote:

Originally Posted by audreyh1 Fair enough - I have transitioned to using a 50/50 to 60/40 AA range depending on the value of CAPE10 when I rebalance. I also have a pretty good pile of cash outside my portfolio that had accumulated over the years. I like it being there. Belts and suspenders.....

So your AA really isn't 50/50 or 60/40?

[audreyh1]

Quote:

Originally Posted by OldShooter So your AA really isn't 50/50 or 60/40?

I only have a target asset allocation for my retirement portfolio. That's the only part I withdraw from annually and rebalance. I don't worry about the AA of my remaining assets since I don't rebalance them.

[Dtail]

Quote:

Originally Posted by audreyh1 I only have a target asset allocation for my retirement portfolio. That's the only part I withdraw from annually and rebalance. I don't worry about the AA of my remaining assets since I don't rebalance them.

+1 exactly as you.
But you know we have been down this theoretical difference of opinion road many times before in this forum.

[OldShooter]

Quote:

Originally Posted by audreyh1 I only have a target asset allocation for my retirement portfolio. That's the only part I withdraw from annually and rebalance. I don't worry about the AA of my remaining assets since I don't rebalance them.

Well, everyone gets to do their arithmetic any way they want.

But is it not the case that the norm here when people are talking about AA that they are talking about a ratio of total investable assets? It seems like that is the only option if posts are to be comparable.

IOW if you have a million$ in cash or a kilo of gold that you're not including in your AA, then reporting 50/50 or whatever is at best meaningless and at worst misleading to the OP and the rest of us.

Just curious: If you do include your not-included stash, what is your AA range? Is it materially different from what you reported?

[audreyh1]

Quote:

Originally Posted by OldShooter Well, everyone gets to do their arithmetic any way they want. But is it not the case that the norm here when people are talking about AA that they are talking about a ratio of total investable assets? It seems like that is the only option if posts are to be comparable. IOW if you have a million$ in cash or a kilo of gold that you're not including in your AA, then reporting 50/50 or whatever is at best meaningless and at worst misleading to the OP and the rest of us. Just curious: If you do include your not-included stash, what is your AA range? Is it materially different from what you reported?

Nothing here is comparable. It's all over the map. Heck - seems like at least half the folks here just pull out what they want from whatever and do a quick annual check that they haven't gone over some predetermined "SWR" boundary.

As I planned for retirement I made a choice to cordon off a subset of my assets as my retirement portfolio to withdraw from. I ran models to determine that it was sufficient for my long term goals. I had other plans for other funds.

And, as it turns out, we have accumulated more outside the portfolio because we've been underspending during rising markets. Have no idea if that will continue going forward - maybe not.

[OldShooter]

Quote:

Originally Posted by audreyh1 ... Heck - seems like at least half the folks here just pull out what they want from whatever and do a quick annual check that they haven't gone over some predetermined "SWR" boundary. ...

Yup. Works for us. Starting this year we have to check the RMD boundary too.

AFIK I have never started a year knowing how much I was going to spend that year. When we were working I had an approximate number based on salaries and now in retirement I have an approximate number based on history and known expenses. But we have been very fortunate and do not have to keep careful track.

RE AA, I hope you are wrong about all these AAs being inaccurate due to "side pots." There is a lot of energy spent here discussing AAs and I, at least, thought we were talking apples and apples. Apparently not at least in your case.

[MBAustin]

One of the things I did when I was a few years out from ER was to start taking capital gains and dividends from our taxable accounts in cash rather than reinvesting. I put them into an intermediate bond fund to build up my "cash bucket" for after ER. This also helped move our AA a little more conservative.