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

[jeroly]

63, 50/50 on a reverse glide path - five years ago my AA was 30/70 and I’ve been letting the equities (in index funds, overweighted towards value - e.g. MGV - and slightly overweight small caps as well) ride since, and will continue to do so until they hit 70%, at which point I’ll start annual rebalancing.

 

[slowsaver]

48 yo, 60/40 AA.

 

[joedila]

more aggressive

I'm 70 and my wife is 71.

We have about 1.7M invested with Fidelity that I can track/do analyses on wiith their "Full View" feature. This is what it tells me:
- 38% Domestic Stocks (all Fidelity mutual funds)
- 13% Foreign Stocks (all Fidelity mutual funds)
- 13% Bonds (all Fidelity mutual funds)
- 13% Short Term/Cash (some in Fid Mutual funds, some in Chase
checking/savings accounts etc, ie our emergency fund which is way
more than 6 months
-22% Unknown (outside accounts TIAA-CREF and a 457B) that Fidelity can't
analyze, but which I estimate to be close to the above percentages,
perhaps a little more in bonds.

We are very comfortable with this allocation - we have way too much in cash, but I can live with it, and are gradually reducing its percentage

 

[53anddone]

61 years old - 65% in equities, 13% Muni, 11% T-Bill, 11% Preferreds. Probably too much in T-bills but can resist the current rate.

 

[zippy2020]

I'm not sure such a general question helps the OP, as some of us have other resources (pension, annuity, rental property, etc.) so don't rely 100% on distributions.

I'm 71, 55/45 (it fluctuates, obviously). But our distributions are strictly 'fun money'. Our other sources of income cover all our expenses and then some.

 

[mickeyd]

Age 78/74
AA 45/45/10

 

[F.I.R.E User]

45. 100% equity in mostly USA.

Target RE: 55-60. Should I change anything? I am a renter.

 

[Sconie]

74; DW is 68. 80% equities, exclusively index funds: 65% U.S. & 35% International. Remainder, 20%, is fixed divided equally between Vanguard intermediate term index bond admirals and cash/money market.

 

[target2019]

I am 67yo, retired. I have my nest egg in index funds, TIRA. My AA is 60/40. I have been fairly risk-averse but now, am wondering if I should maybe be more aggressive. From my parents' history I could live into the 90s.

So, I was wondering what other folks are doing with their nest egg. It is a function of age, I think so, also what is your age?

Thx

Close to 70. We're letting the AA drift to 60/40 (up from 50/50), and possibly further.

 

[PointBreeze]

Age 63. 50% equities, 5% REIT, 19% bond funds, 19% CDs, 7% cash.

I recently moved a bunch from bond funds to CDs, and just sold some equity index funds in order to free up some dry powder in anticipation of a some buying opportunities in the next 12 months.

 

[Lstansbury]

65 years old, 77% fixed, 23% equities. Single female who only made a bunch in the last 4 years of my career, so very conservative. Am doing very well, but not much room for error.

1 normal pension, 1 little bitty pension, both non-COLAed, which makes me even more conservative. Waiting to take SS since I need a COLAed annuity somewhere in the mix.

 

[kgtest]

I will be 100% equities until I pass away.

DF is also 100% equities at 71...well he owns a rental so maybe that's looked at differently. Although, he foolishly tried to time the market, pulled out a couple weeks ago, and missed the massive gains we had last month. WHOOOPS! I tried to warn him, if you don't need to sell, don't...just stay the course. But you can't talk sense into your own father, what am I some dumb 41 yr old kid to him. Lost like 100k or something and bought back in today. I told him that was 2 semester's of college for his grandkids and he just said "yeah."

 

[Monterey298sc]

63. Just sold my business to retire so have 1.7M in fixed right now and 1.8M 60/40 AA

 

[GoodLife59]

We’re closing in on 63. We have a portfolio of mutual funds with Vanguard and TIAA-Cref. Classic 60/40 allocation which we intend to continue for many years. History and the modeling we’ve done with our advisor predicts we’ll be good we’ll into our 90’s. My concern with a more aggressive play into equities would be time to recover from a downturn. Risk tolerance is a lot different in your 30’s and 40’s vs your 60’s and 70’s.

 

[COcheesehead]

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.

Bonds don’t lose money unless sold early or default. You used bond funds which are not bonds and perform exactly as you describe.

 

[KarenF]

62 and 70/30.

 

[Sanbenito1]

I’m 65 with 85 percent stocks (index funds, 65% domestic, 20 percent foreign). About 15% bonds. I keep $75K between cash and I-bonds for loans to young relatives, re-investing and emergencies. I am probably more aggressive than many would be because I have a military pension and a rental cottage that cover all my basic expenses so I look at the pension/rental money as though it was the cash part of my portfolio. As I get closer to 80, I imagine I’ll dial back the risk. I’m healthy and likely to live beyond age 90

 

[6miths]

76 and about 80% equities. The equities will mostly end up in our estate for charities and trusts for DS and the grands. So it is long-term money.

IMO optimum AA depends much less on age than it does on the purpose of the stash. If the stash is likely to be needed before death a more conservative AA makes sense. If the stash has a significant longer-term purpose, then (IMO again) the longer-term portion should be in equities. Either way, age doesn't have much to do with it.

Consider a healthy 75YO widow with $100K and another healthy 75YO widow with $10M. Why would anyone think they should have the same AA?

Exactly this. Most of our assets will never be touched by us. They are for the kids and grandkids.

 

[Doc0]

I'm 71 wife is 64 Fully retired

My approach was to separate my financial life into epochs: accumulation, transition and deflation. Each has different goals. Accumulation was to save as much as possible and get rich. Transition is to reconfigure the portfolio to yield best deflation tax efficiency and to be able to fund likely end of life events like LTC including me and my wife so allocation involves not only stock bond cash, but also what kind of account and it's optimized tax efficiency. Our income is optimized against age 70 SS and controlling RMD to a very predictable tax burden as we age. I have plenty of money, but I like to control how it's spent and how it's risked.

allocation right now 20/67/13. The goal is as the cash gets spent down it is replaced by portfolio income. I'm in my last year of Roth conversion so the cash is allocated to paying taxes and living expenses beyond SS for the next several years and is stored in a savings account right now yielding 4+%. My plan is to wind up with about 450K in IRA money treating the RMD as an annuity. The IRA has dividend stocks and bonds, mostly bonds right now. I RMD next year and hope to keep the IRA around 400K to 500K (aka virtually no growth) so the RMD slowly and predictably increases as the RMD rate increases. With this plan between 2 partner SS and the RMD income I can stay in the 12% tax bracket for about 15 years. I'll likely be dead before that threshold. My Roth is allocated to LTC if necessary and it doesn't get touched unless there is a disaster. Right now it's mostly bonds and dividend stocks. My post tax account is allocated to stocks that are very tax efficient. It's setup to allow my wife to manage her increased tax burden upon my death. The spend down is IRA then Post tax then Roth. I tax loss harvest in the post tax when I can.

When you enter full retirement the calculus switches from accumulation of funds to efficient deflation of funds. Risk management and spend rate becomes primary and accumulation secondary. One of the biggest factors in efficient deflation is controlling your tax burden once you get past the transition between accumulation and deflation. You won't be able to optimize once you have begun deflation. The time to optimize is at the end of accumulation and during transition and before RMD.

 

[Vader97]

Bonds don’t lose money unless sold early or default. You used bond funds which are not bonds and perform exactly as you describe.

That’s why I love individual bonds whether it’s munis or corporates, very predictable. I’m probably in the minority here but I’m 35 equities and 65 fixed income at age 44, capital preservation mode after I sold my business, focusing on cash flow.

 

[COcheesehead]

That’s why I love individual bonds whether it’s munis or corporates, very predictable. I’m probably in the minority here but I’m 35 equities and 65 fixed income at age 44, capital preservation mode after I sold my business, focusing on cash flow.

You and I are twins.

 

[Coach Shoe]

Me too! 35% Equities (Index), 38% 10-yr ladder (t-notes),27% cash @ 80 years old. Comfortable!

 

[Digger1000]

57 retired nearly 6 years ago, 100% stock mutual funds.

 

[youbet]

75/76. 61/30/9. FIRE'd (with zero earned income at all during that time) for 18 years. So far, so good!

 

[cyber888]

I'm currently 50-50 (equity vs fixed income).
I got ibonds at 7.12%, 9.62%.
I just locked a CD at 5% today.
But I am returning on my way to 60% - 40% as stocks are going up.
I also shift from conservative Value-stocks to Growth Large Cap and Small Cap stocks in my New Year's AA.