AA too conservative

[Bikechuck]

The more I read threads like this the happier I am with my 50/50 asset allocation. I am married and my age is 64.5, my wife is 63.5.

I feel blessed in that I have a fixed annuity (which is not annuitized) that is paying a guaranteed minimum 4.5% and two TIAA Traditional accounts that are most recently paying 4.0% and 3.5%. I consider these to be the equivalent of Bonds (only better because they will not drop in value with increasing interest rates) and these investments comprise a little more than half of the fixed income portion of my portfolio.

Currently we plan to have my wife take SS when she turns 65 at which time I will be 66 and I will file a restricted application for half of her benefit allowing my benefit to grow until I am 70.

I sleep well at night and although we are not wealthy I feel blessed to have a sufficient portfolio to provide for a happy retirement. Like others the biggest threat to our peace would be an illness requiring the use of an extended care facility for which we are self insured.

 

[pumpkineater]

You might want to spend time looking at the asset allocations on portfoliocharts.com. Some of the allocations such as Harry Brown's "Permanent Portfolio" are remarkably effective despite relatively low allocations to equity. One could argue that we have more uncertainty about the macroeconomic climate during the next 10 because of how unusual the last 10 years have been relative to history. So choosing an allocation that was created to weather this kind of uncertainty about macro environment could be a timely choice.