Can I ask (if I'm not being too pushy)...what was your asset allocation mix.
I'm curious what other folks are using between the ages of 53-59.
At the moment, I'm really nervous with the potential pullback of the QE policies.
That could cause both the stock market and bond funds to undergo a major correction during the next quarter.....
Thoughts anyone ?
I don't mind. The folks on this site have been a huge help to me over the years. I'm mostly a lurker, so it's nice to give back a little.
We have 4 different accounts at VG, 2 lump-sum retirements from megacorp, and our individual 401s. We used the lump sums for 2 different 72Ts. To make this all work, we had to take more of a risk than we should. We needed 7% return a year, and be able to live off our 72Ts.
The risk was fine with us until about October of 2008. DW folded first, she wanted her money out of the market. We put her accounts in MM. I didn't make any changes in mine at that time. Before the crash we were 65-70% slice and dice stock funds, 20-25% bonds, and 10% MM.
Once you get out, then it's hard to know when to get back in. To me- it was harder than getting out. What is the bottom? Can it get worse?
Anyway, we got back in, but with less risk. DW now has her money in the 2015 fund, with her 401K in Wellington. I moved mine to the 2020 fund, and my 401 in Wellington. It's low maintenance, and has worked for us.
The next pullback, we hope to just keep on with our plan. It's easy to say that now, but gut-wrenching when you have 5 figure losses in a day.