cancel
Showing results for 
Search instead for 
Did you mean: 
     
Highlighted
Explorer ○○○

My possible retirement portfolio -- opinions?

Ok, I've been reading a lot of posts and getting good advice here.  After taking it all in, interested in feedback on one option for my retirement portfolio AA.  I'm open to others and may go a different route, but thought I'd hear thoughts from the smart people here. Aiming to retire in about 5 years, but can wait longer if this crisis lingers.

For this exercise, I'm toying with a "modified bucket" portfolio, which ends up being about 50/50, that could potentially generate enough income in "good" years or "down" years to avoid tapping principal.  I can get by on a 3% yield, but 4% is better.  Need 40+ years for it to last.  So here's the overall plan:

  • 8%    Cash + Short Term Bonds (2 years expenses)
  • 42%  Intermediate Term Bonds + Sprinkle of VWINX or USBLX for my taxable account (3-10 year expenses)
  • 46%  Dividend Equities (Div Funds + Individual Equities); CEFs; aggressive high-yield bonds; some pure growth equities; 
  • 4%   Gold/Managed Futures or some other portfolio diversifier (ambivalent about this but just leaving the option open)

With the right mix and luck, I could get sufficient yield to survive hard times without touching capital, but if hard times persist, I'll have 10 years of expenses in the bond portion and *hopefully* (my biggest fear) the equity portion will grow after 10 years to replenish.

Would I be doomed to be eating cat food after 20 years with this plan?

0 Kudos
3 Replies
Highlighted
Frequent Contributor

Re: My possible retirement portfolio -- opinions?

So, you are about 50% in stocks  and 50% in bonds, with some cash and gold? You are just shy of retirement? This would seem a reasonable portfolio. 

I still hold more stocks than bonds and my time horizon is about ten years. 

I think when into retirement it may be prudent to actually increase your stock percentage.

No one can tell what I the future brings, but the more wealth you bring into retirement, the better your chances to make it cat food free

 

 

 

 

 

0 Kudos
Highlighted
Frequent Contributor

Re: My possible retirement portfolio -- opinions?

It is untelling whether this portfolio is sufficient for your retirement without knowing your actual financial situation and requirements, but the asset allocation is prudent.

0 Kudos
Highlighted
Frequent Contributor

Re: My possible retirement portfolio -- opinions?


@unbiased2020 wrote:

Ok, I've been reading a lot of posts and getting good advice here.  After taking it all in, interested in feedback on one option for my retirement portfolio AA.  I'm open to others and may go a different route, but thought I'd hear thoughts from the smart people here. Aiming to retire in about 5 years, but can wait longer if this crisis lingers.

For this exercise, I'm toying with a "modified bucket" portfolio, which ends up being about 50/50, that could potentially generate enough income in "good" years or "down" years to avoid tapping principal.  I can get by on a 3% yield, but 4% is better.  Need 40+ years for it to last.  So here's the overall plan:

  • 8%    Cash + Short Term Bonds (2 years expenses)
  • 42%  Intermediate Term Bonds + Sprinkle of VWINX or USBLX for my taxable account (3-10 year expenses)
  • 46%  Dividend Equities (Div Funds + Individual Equities); CEFs; aggressive high-yield bonds; some pure growth equities; 
  • 4%   Gold/Managed Futures or some other portfolio diversifier (ambivalent about this but just leaving the option open)

With the right mix and luck, I could get sufficient yield to survive hard times without touching capital, but if hard times persist, I'll have 10 years of expenses in the bond portion and *hopefully* (my biggest fear) the equity portion will grow after 10 years to replenish.

Would I be doomed to be eating cat food after 20 years with this plan?


      How about going with utility or utility type stocks, Aristocrats, a few CEF’s maybe all in combination yielding 3-4%+ and a growth index like VUG or an OEF like TRBCX? Skip part 2 and definitely 4. Two many moving parts in what you listed. 

      Live off of the income in the 3-4%+ range. Bank capital gains into something like VWAHX, a national muni, which yields 3%+ now. Put this on reinvestment turning it on or off like a faucet when extra cash is anticipated. Another option is as a source of funds to be put back in growth during corrections or recessions. 
       
       As far as 40 years out if your that young keep working, if your in your 60’s your an optimist. LTC is 8-10k a month now. If that doesn’t give you pause cat food isn’t in your future.

       Most portfolios seem over “engineered” on here to me. Cash to your hearts content, one growth fund or index, one place to semi safely keep any cap gains and a variety of sources of income to meet your needs, less then 10. Cherry pick value and utility indexes for these and go with PIMCO mid range CEF’s. Maybe 15 holdings for you but including any indexes or funds, 500. “Allocations” are self set by you customized to your needs.

        There never will be a way to game an unknown. Adding a gadzillion parts isn’t any better then an S&P index, cash and spend down unless you really want to spend 40 years wandering the market looking for the holy grail.

Announcements