DustyMom
Dryer sheet aficionado
- Joined
- Jul 14, 2012
- Messages
- 29
I am struggling a bit with asset allocation for my planned 401(k) rollover.
· I have just retired at age 54 (3 weeks now!)
· DH will retire in 18 months at age 57
· EXCLUDING my 401(k), asset allocation is 60% equity/40% fixed income & cash
· Current 401(k) with ex-employer is in a 2015 Target Date Fund, plan to move into an existing rollover IRA
· Was thinking I should just invest it 60/40 to match the rest of the portfolio
However,
· By age 70 (in about 15 years), all of our guaranteed income sources will have kicked in (4 pensions, 2 SS)
· About 70% of those amounts are COLA'd
· I cannot really conceive of needing (and probably not even wanting) more than what will be provided in those 6 income streams
· It seems like we could feel free to use up most of the nest egg in the next 15 years (probably won’t, but it’s a nice thought)
On the one hand, so many sources of guaranteed income seems to indicate we can take more risk with our portfolio. On the other, if we want to use it up in the next 15 years, that would indicate a shorter investing horizon/less risk, would it not?
I just can't decide which way to go here - more to equities or less?
I'm not asking you to pick my AA, just advise on what I should be considering when I make this decision. As always, many thanks.
· I have just retired at age 54 (3 weeks now!)
· DH will retire in 18 months at age 57
· EXCLUDING my 401(k), asset allocation is 60% equity/40% fixed income & cash
· Current 401(k) with ex-employer is in a 2015 Target Date Fund, plan to move into an existing rollover IRA
· Was thinking I should just invest it 60/40 to match the rest of the portfolio
However,
· By age 70 (in about 15 years), all of our guaranteed income sources will have kicked in (4 pensions, 2 SS)
· About 70% of those amounts are COLA'd
· I cannot really conceive of needing (and probably not even wanting) more than what will be provided in those 6 income streams
· It seems like we could feel free to use up most of the nest egg in the next 15 years (probably won’t, but it’s a nice thought)
On the one hand, so many sources of guaranteed income seems to indicate we can take more risk with our portfolio. On the other, if we want to use it up in the next 15 years, that would indicate a shorter investing horizon/less risk, would it not?
I just can't decide which way to go here - more to equities or less?
I'm not asking you to pick my AA, just advise on what I should be considering when I make this decision. As always, many thanks.