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

[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]

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/forums/f44/75-25-is-the-new-60-40-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.

 

[Helen]

50/50. If the market drops I will invest more in a total stock market ETF. I sold off a chunk of individual stocks last year but just couldn't pull the trigger to reinvest in the stock market. I do regret it, but a 50/50 mix is very OK for now.

 

[W2R]

I see you have taken that magical youth elixir again.

Yep!! In reality I'm a white haired old lady. My avatar photo was taken when I was a teenager, back in Hawaii.

 

[calmloki]

Not counting personal homes we are at 26% of our net worth in bank accounts and CDs - expecting that to go to about 37% this month when a large loan pays off. Unnecessary and probably not optimal, but I have 60 day buy orders in with VG (oops - didn't count the cash in VG waiting to pay for orders) at 5, 10, and 20% below the trailing 52 week high for VTI. If a crash happens maybe I get orders filled in x, 2x, 4x amounts.

 

[MichaelB]

Yep!! In reality I'm a white haired old lady. My avatar photo was taken when I was a teenager, back in Hawaii.

We know in spirit you still are that same young girl ...

 

[wmc1000]

currently 20% = 18 yrs. potentially needed stash in cash @1.6%, no downturn concerns and by then we will be in our mid 80's

 

[Dawg52]

25% stocks
75% cd's/bonds

 

[jazz4cash]

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?

I couldn’t get past this either.

I have > 10 yrs in CDs and no bonds. I was embarrassed to be so conservative but thanks to this thread I see I’m not alone. I’d That safe money is 40%. I’d like it to be 30% but it’s hard to rebalance CDs (didn’t think about that when I elected to use CDs in lieu of bonds for bucket #2. DW still works.

 

[dvalley]

2 yrs worth of expenses in cash, the rest in equities.

 

[GravitySucks]

Danged cute.
Thought it was Dawn Wells from Gilligan's Island!

Yep!! In reality I'm a white haired old lady. My avatar photo was taken when I was a teenager, back in Hawaii.

 

[KB]

Stocks 34%, Bonds 60%, Cash 6%.

As my dividends build up I plan on increasing my stock exposure.