Born early 1960’s.
Posted before nearing retirement (To save my health).
Stocks 50%
Bonds 15%
Short Term reserves 24%
Other 11%.
Not sure what “other” means but that is the breakdown.
More information would be helpful for comments. What are your goals- money for heirs, charities “die with zero”? What is your risk tolerance? Any financial dependents? Approximate totals in each category. Income and expense projections during retirement-Social security, pension, RMDs. Are there likely major financial expenses during retirement?
You should be able to figure out what the other 11% is through your financial services company
I was the one who posted earlier about can I retire.
No heirs, no dependent’s, die with zero SS, looks to be about 2015 a month with anticipated cola next year (I haven’t claimed yet).
Expenses roughly 2,500 or so a month.
Roughly 225K now in 401K, 1,100 in emergency fund.
You never know but don’t expect many major expenses in retirement.
What are your plans for any income gap following retirement? When are you planning to retire and if not soon than what is current annual income? What age are you planning to start Social Security?
It would also be helpful to have additional information about the holdings in your portfolio including the expense ratios for your stocks and bonds and the current yield of your short-term reserves.
So, I am no expert, just a retiree. Assume if you retire at age 65 or older, you’ll qualify for Medicare. A payment for your Medicare coverage will be deducted from your social security benefit each month. To cover the gap in Original Medicare (Parts A and B), you’ll need a Medigap policy (supplemental insurance) and Part D (prescription drug coverage or choose an all-in-one Medicare Advantage (Part C) plan instead. (BTW, Clark Howard hates Medicare Advantage plans.) Medical expenses oftentimes hit retirees hard, so consider that as you select a Medigap policy. AARP offers a variety of Medigap policies. You might study their policies/prices just to get an idea of benefits and costs. Will you have a pension? Will you be paying for housing in retirement? What is your net worth? Once you retire, you’ll switch your 401K to an IRA. Be aware that the required minimum distribution (RMD) from your IRA will start at age ~73. That’s a tax hit. Sounds like you want to retire in order ‘to save your health’. Would you be interested in working a part-time job as a retiree. Finally, consider sitting down with a financial advisor and a Medicare specialist for more information. Best to you, Crench!
Born in the late 1940’s.
Stocks 100% from November through April, CDs during other 6 months
Works well 74% of time. Exceptions mostly during Trump’s years. Sleep very well May to November.
Dying with “zero” is not really practical since there is no way to do that without living with “zero” for some indeterminate period of time unless you arrange to die in a place that will take all your money.
Allocation is mostly about fit with your particular goals and adaptability. I am 68 and still working since I enjoy my job. I own my home so I don’t concern myself with rising housing costs.
I invest my money with a classic 25,25,25,25 in stocks, bonds, gold, and cash. My return on my investments exceeds 8% annually on average and I never worry about not having “enough.”
Some people would not be satisfied with my set up because they always want “more” rather than “enough” and that’s fine. There is no “right” allocation, only what fits your needs.