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
Yes & No, not really, depends, lots of ways to skin a cat... how's that for an answer??
58/58, retired last year and went to effectively a 2 bucket system: Bucket 1 - 10 year bond/some cash ladder, Bucket 2: Diversified stock portfolio rebalanced annually. This floats my AA depending upon current valuations/balances... currently around 70/30. As others have said, lots of variables such as risk tolerance, how tight your expenses are, return expectations, WR. I made my (call it AA) decision based on the following factors...
- 10 YR Bond ladder of highly discretionary planned spend should insulate me from (most) market down turns allowing stocks to recover
- Mid 2% WR based on current balances
- Currently have my planned spend growing 3%/yr, but I have lot's of levers to pull if the $hit hits the fan which allows me to absorb any lumpy inflationary hits.
- Underwriting 5% average annual growth on portfolio, which I think is conservative, especially where individual bond yields are at today
- My MO is more of a "won the game, so keep playing" mentality. No hard and fast legacy goals, but I like to see things grow.
So that's just me. In today's interest rate environment I could probably make an argument to go 100% bonds, but so far, i like my plan.