Poll: Equity Allocation for the 1st 10 years of RE

[FI_RElater]

start low, increase once SS starts

we decreased equities prior to retirement to 45%, established a rolling three year CD ladder, and had the pension start once retired. [45% is the lowest level of equities for survivable portfolios in most articles I’ve seen] The earliest I plan on SS is January of year following FRA (to maximize credits and when they start) and can then increase equities to either 50% or 55% as most of our non discretionary spending would be then taken care of by SS/pension {we currently are under 2% WR, so aren’t concerned with SOR at 45%, and we don’t need to push for four large when we already have three} and only discretionary spending would be affected by any market downturns.
{plan on 3.5% WR (max) for initial 10 years, will examine after that, likely change to Guyton-Klinger plan to maximize spending thereafter}

 

[street]

Retired 2 1/2 years ago and will keep my equity at 75%. I don't have any reason to change it lower and no plans to change it at all.

 

[TwoByFour]

I voted at the 60% level but it is really more complicated than that. Our AA is to not have more than 60% equities, but having less than 60% is fine. In fact it is expected when the market has its next downturn. So basically this means we will never reallocate by selling bonds to buy equities, but we will (and do) sell equities to buy fixed income.