What is your age and your AA for your nest egg?

[Exchme]

What should be important to OP is not what others do as everyone's situation is different and most importantly, everyone's risk tolerance is different. There is another recent thread where some poor soul upped their stock allocation and then panic sold everything after a downturn.

Panic is far more dangerous to a portfolio than not have a "perfect" asset allocation. The OP's 60/40 is a very common recommendation of professionals and academics, and OP has apparently learned to deal with the ups and downs associated with that. So my recommendation is not to try to fix something that isn't broken.

 

[ImThinkin2019]

Age 65 1/2. 40% equities, using this market downturn to dollar cost average more of our cash into equities, almost all dividend funds.

 

[TB1960]

I am 62 yrs old and wife is 57 yrs. I retired in 2021, she is still working part time.

Our nest egg at Schwab is as follows...

68.13% consists of Mutual Funds, Sector ETF’s and individual stocks.

• Of this 68.13%, 48.00% is invested in Mutual Funds that track the entire U.S. stock market, or, S&P 500, such as VOO, SWTSX and SWPPX.
• Another 44.37% of this 68.13%, is invested in various Mutual Funds and in various Sector ETF’s.
• Finally, of this 68.13%, 7.62% is invested in Individual stocks.

Second, 28.33% of our Schwab Portfolio is invested in CD’s. I tried to build a CD ladder of sorts.

• Of the 28.33%, 20.58% is invested in a 2 year CD earning 4.65%.
• Of the 28.33%, 20.58% is invested in a 1 year CD earning 4.70%.
• Of the 28.33%, 58.82% is invested in a 6 month CD earning 4.60%.

Finally, 3.53% of our Schwab portfolio remains in cash accounts.

We have other investments in residential/commercial real estate and promissory notes that pay for our daily expenses. So, no need to make withdrawals from the Schwab account at this time.

 

[Teacher Terry]

I am 68 with a cola pension and a micro SS. This covers all my normal expenses and have a different pot for vacations, etc. I am in 100% fixed.

 

[Dash man]

We’re both 66. I have a small non cola pension and I’ve started SS. DW is waiting until 70.
We’re currently adjusting from 67/33 to 75/25. Most of our expenses are covered by dividends, my pension and SS. We primarily invest in low beta stocks that grow their dividends each year. It’s our way of giving ourselves a Cola to beat inflation.

 

[Navigator]

I’m 67 and have a 60/40 portfolio, but will probably move to 70/30 soon. I’ve never believed that risk tolerance should depend on age, but rather what the data indicate. In my case, more aggressive is better - if not for me, then for my children.

 

[ncbill]

early 50s, 80/20 with the latter in cash (money market @ ~5%)

once I'm done with Roth conversions that will move to a more conservative ratio.

 

[phil1ben]

I am about to turn 63. I am 30% individual stock, 20% individual municipal bonds intermediate term, 30% in limited partnership interests that own apartment complexes (the business I was in pre-retirement) and other real estate and 20% in 3-6 month treasury bills.

 

[Gary from Tampa]

77 YO now 6.17% withdrawal.
Retired at 62 with 4.05% withdrawal.

 

[foxfirev5]

84 posts and I've learned nothing. I've got a pension and it may be 5k or 50k per year. I have 10x expenses or 50x expenses. I may sell my greatly appreciated second home. etc.

You've got to figure it out for yourself. Simple AA is problematic.

 

[street]

We are 65 & 66 with 80% equities. I also have no intention to lower our equity percentage.

 

[Henry Lili]

vtsax, vti, voo, & vym this one may change jepi

Look at DIVO as well. With dividends being consumed it's better long term growth wise though if divys reinvested about even. JEPI has such a limited track record so it's not a true head to head. I own both in small amounts.

 

[Henry Lili]

Thanks. Looks like these are Vanguard and JPMorgan ETFs. I need to find the equivalent ETFs for Fidelity.

You can buy non Fido ETFs at FIDO ( unless you're in a 401k type plan). Doubtful any 401k would offer a JEPI covered call type product. Especially given the use of equity linked notes to generate the options income.

 

[JohnnyBGoode]

56yr old. 72% equities, 8% bond funds, 20% cash (CD's and Treasuries, mostly)

 

[Echard]

60 years old. Live off investments with a part time gig mostly for fun, but puts about $15k a year in my pocket. Ends up being blow it money.
We are 30/70. Every planning tool says we can be 0/100 with 100% success. No heirs, just charities to pass our assets to.
The 70% is in two bond ladders, a tax free and a taxable. We also own two closed end fixed income funds and have a real estate holding outside of our own home.
We receive almost 50% more in income from the ladders than what we spend. We spend freely, live in a very nice house, in a desirable neighborhood, have nice cars, etc. Equities and real estate are part of the mix as an inflation hedge. Our goals are high current income, capital preservation following by moderate growth.
I hold only a few months of cash because the ladders throw off funds virtually every month. We have no emergency fund. I carry a sub 3% mortgage which I have no plans to pay off. The investment arbitrage works for us and I like the tax benefit of it.
Our asset allocation has survived two bear markets and now with fixed income paying what it is, its just a bonus.

I'm curious how you determined what percentageof your portfolio should be in "inflation fighting" categories like TIPS, iBonds, Real Estate, Equities(?), and commodities. I may also be able to cover a lot of living expenses with fixed income but want to make sure I have enough dedicated to inflation fighting because I believe inflation will run 3-4.5% for the next 6-10 years.

 

[mebden]

Look at DIVO as well. With dividends being consumed it's better long term growth wise though if divys reinvested about even. JEPI has such a limited track record so it's not a true head to head. I own both in small amounts.

But Henry thats what makes JEPI interesting just like all those other funds they all started as brand-new funds and look at how they did? So thats why I like JEPI its newer and if it grows like the others did it will be a big win and its dividend is nothing to downplay.

 

[mebden]

You can buy non Fido ETFs at FIDO ( unless you're in a 401k type plan). Doubtful any 401k would offer a JEPI covered call type product. Especially given the use of equity linked notes to generate the options income.

Yes, My JEPI is in TD Ameritrade/the soon to be new Schwab my 401K is very limited funds you will need to be invested in an individual IRA with one of the big companies to buy it.

 

[COcheesehead]

I'm curious how you determined what percentageof your portfolio should be in "inflation fighting" categories like TIPS, iBonds, Real Estate, Equities(?), and commodities. I may also be able to cover a lot of living expenses with fixed income but want to make sure I have enough dedicated to inflation fighting because I believe inflation will run 3-4.5% for the next 6-10 years.

I used the main tools - FireCalc, FIcalc and the Fidelity Retirement tool along with a tool called RetirePlan to run scenarios with different AAs. They all gave me more or less the same results. A healthy spending plan that is still less than what the portfolio will produce even at very conservative AA levels and ending with large balances. That gap between earning and spending is a pretty big safety net for runaway inflation, runaway LTC, runaway medical expenses, etc.

 

[OldShooter]

But Henry thats what makes JEPI interesting just like all those other funds they all started as brand-new funds and look at how they did? So thats why I like JEPI its newer and if it grows like the others did it will be a big win and its dividend is nothing to downplay.

Just out of curiosity I looked at JEPI in a little more detail. As you can see here: https://etfdb.com/etf/JEPI/#price-and-volume by clicking on the 3-year history button, during its period of good performance trading volume was tiny. After a couple of years volume increased, performance flattened out and began to decline.

This has the look of an "incubated fund." Basically a manager starts several funds with tiny $ from friends & family investors, then watches and waits to see which one starts to look good. The manager then kills the losers and goes to market touting the track record of the lucky one. As volume builds it is likely, though, that a hot hand will cool and/or a trading scheme will not scale. There is plenty of data supporting this observation. (https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1005167)

 

[VFK57]

age:65, 32.5% equities/ 7.5% PM / 60% fixed,

 

[RockyMtn]

turn 65 next month. 60/38/2 stocks/bonds/cash. Live off 2 pensions, some consulting work and dividends. Will probably increase our exposure to stocks once SS starts if not sooner.

 

[Letj]

54 years 30% equities, 8% bonds/cash and remainder in real estate including primary home. Don’t need to touch cash/bonds/equities since we live off rental income.

 

[SunGuy]

36 in a few months, 90% stocks (dividends mainly, some growth in upcoming markets like uranium, semiconductor , solar), 10% crypto (mainly CasinoCoin).

Also invest in 401k index fund and HSA account index fund, with 401k company match of 7%.

I invest 7% per paycheck, and they match 1 % of HSA contribution. But I just contribute to get their match in my work HSA for their 1%, then fund the rest into my own private HSA, because I can buy better funds.

Investing around 50% take home pay.

But this next year and a half most of it will be used for a down payment on a duplex for my first home purchase.

Also, I will never buy bonds because that is a foolish thing. Equities always win.

Also since my funds will outlive me and I will not have any kids or relatives to pass along to, I plan to donate them to a private fund to go towards scholarships to people that sign lifetime financial service pledges.

Which means they will have to have yearly meetings with the fund, and pass their audit to show good financial investments and spending, or else they will have to repay the scholarship at a huge penalty.

We have had 7 generations of lawyers in my family and they will help get this done . My Uncle who is himself a senior partner emeritus at one of the biggest firms in the US, who has a personal fortune north of 8 figures has a similar system in place, once the portion to his wife and son are accounted for.

 

[DrRoy]

63 and 52/48. Have a 2-3% WR depending on the year.

 

[cbslc]

50 and moving away from equities and bonds, maybe 30%

Every single time I have gone to retire, stocks AND bonds drop. I don't need asset appreciation as much as I need income. I totally gave up on bonds and since CD's are doing really well right now, I put about 25% into CD's. then in our qualified account, I have about a 50% equity 10% bond and 40% guaranteed (TIAA has a annuity fund, that is mostly liquid - supplemental account).
I've really grown to hate bonds, they gain 3% and lose 9. My CD's over the past 10 years have had terrible yields, but are outpacing bonds in the long run.