Stock/bond allocation

[Ucsdryder]

Feel free to include how it’s changed based off age. I have some retirement investments that I don’t plan on touching for 20 plus years. I’m considering 90/10 and can’t find a downside besides the collapse of the market that never bounces back, which will probably make my money worthless regardless…

 

[gwak06]

I'm 36 so I have a little while before it matters. With that said, my wife and I are 100% stocks. If it collapses, it won't matter if it's stocks or bonds.

 

[Ucsdryder]

I'm 36 so I have a little while before it matters. With that said, my wife and I are 100% stocks. If it collapses, it won't matter if it's stocks or bonds.

Added 100% option.

 

[gwak06]

My basic plan is hit mu number by 55. If the market tanks, I work longer. I don't like the idea of waiting to 65 to retire.

 

[Ucsdryder]

My basic plan is hit mu number by 55. If the market tanks, I work longer. I don't like the idea of waiting to 65 to retire.

I’m struggling to figure out my number. So many variables it becomes very difficult to know what the target number is.

 

[gwak06]

My target is the standard 4% withdrawal rate. You should be about to leave on 4% of your total investments.

 

[180ls1]

Over 20+ years, as long as you can stomach it, 90/10 is fine. At least while you are this far out and your goal is max accumulation. Its well worth further scrutiny within 10 years as higher equity balances can actually decrease your risk of a successful retirement even if your total account balance is higher.

I am a financial planner by trade and sit in 100% equities. Feel free to shoot me a DM if you would like.

 

[DmrbigEshotT]

100% growth stock fund if you aren’t going to need the money for 20 years. Revisit your question 5 years before you need it.


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[CorbLand]

No bond allocation for me on retirement. All stocks.

About 40% of my emergency fund is in short term Tbills. 10% a CD. 50% in HYSA.

 

[Hnthrdr]

My 457 is a target date set and forget type, then I have my play account where I do a lot of stock picks, but lately have just leaned towards etfs (dividend yielding) have a few other accounts but once again don’t mess with bonds all that much since I’m 34 and have some time before I’ll need to touch anything.

 

[Marble]

100% growth stock fund if you aren’t going to need the money for 20 years. Revisit your question 5 years before you need it.


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This....

It's amazing what compound interest does!

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[Rich M]

They say to subtract your age from 100 to see where your stock accounts should be.

 

[Beendare]

100% growth stock fund if you aren’t going to need the money for 20 years. Revisit your question 5 years before you need it.

Depends on how close to retirement you are…and depends on bond rates. For example, if you can get guaranteed 9% treasuries like back in the late 70’s then great. Giving up a long term avg in stock ETF’s of 10%-20% to get 5% in bonds? Really?

If you have 20+ years why would anyone want an underperforming asset in your portfolio?

The argument FOR bonds is that it decreases risk. If you have a long time frame, that alone decreases your risk. The risk in stocks is piling in all at once. If you DCA in, that also reduces risk.

..

 

[MattB]

I retired at 51 and am still probably 90% equities. Bonds have significantly underperformed the stock market for quite a while now. Not quite sure how that makes them “safe”. If I was 20 years from retirement, my bond holdings would be close to 0.

 

[2531usmc]

I’m a little older and have a 50/50 mix. For my economic situation, it’s right for me.

But I’ve invested all my life and was pretty much 100% equities for most of that time. I benefited greatly from the low interest rates after the circa 2008 financial crisis.

But the next 20 of investing can not be counted on to perform as the previous 20 years were. As a nation, we’re adding a trillion dollars in debt every 100 days. Interest on the debt is starting to climb exponentially. Potentially this is catastrophic

Has anybody thought through this and is preparing a financial strategy or plan. Stay in equities? Buy gold or farmland?

 

[BBob]

They say to subtract your age from 100 to see where your stock accounts should be.

“They say”, who is they? Think about who they are and what they stand to gain???

 

[*zap*]

Zero stocks here.

 

[LostArra]

Everyone's life and money story is different. Hard to compare age, job security, account balance, pensions, social security, health, debt (hopefully none) and standard of living expenses.
How much time do you want to spend tweaking this or that?
There are a lot of right answers and even more wrong answers (usually due to tweaking).

Feel free to include how it’s changed based off age. I have some retirement investments that I don’t plan on touching for 20 plus years. I’m considering 90/10 and can’t find a downside besides the collapse of the market that never bounces back, which will probably make my money worthless regardless…

My reply would be I wish I had been more aggressive at your age but for me it didn't feel right at the time. 90/10 doesn't sound unreasonable for 20+ years as long as you don't do something stupid in those 20 years.

 

[2531usmc]

Everyone's life and money story is different. Hard to compare age, job security, account balance, pensions, social security, health, debt (hopefully none) and standard of living expenses.
How much time do you want to spend tweaking this or that?
There are a lot of right answers and even more wrong answers (usually due to tweaking).


My reply would be I wish I had been more aggressive at your age but for me it didn't feel right at the time. 90/10 doesn't sound unreasonable for 20+ years as long as you don't do something stupid in those 20 years.

But it’s easy to look back and say “I should have”. The hard part is how to look forward and say “how do I make money in a world full of reward and risk”?

 

[LostArra]

But it’s easy to look back and say “I should have”. The hard part is how to look forward and say “how do I make money in a world full of reward and risk”?

Absolutely!
"Past performance is not indicative of future results"

If you have money "saved" you have to decide where to save it based on your life not some formula. Does it all go under your pillow or all in a bank savings account or in the stock market or all in crypto or pork belly futures or Powerball tickets? Everyone's life situation is different.