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Author: 39dopey One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75833  
Subject: Re: Retirement-Asset Allocation Date: 1/5/2000 4:24 PM
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If you were 56 and retired what level of allocation would you give to equities? I like average to above average risk. I also need to draw out 8% monthly. My thought is 65% Vanguard total stock market index or split the 65% into two 4 or 5 star rated funds, 15% into Vanguard GNMA fund, 10% into an excellent international fund and 10% into a money market! I'd appreciate any feedback on this approach, good, bad or otherwise.

If you can tolerate above average risk, I'd suggest 80% to 90% equities to maximize return. I'm planning on 100% since I'm willing to take large cuts in annual spending if necessary due to market fluctuations. It's up to you to set the exact percentage of course. As for drawing out 8% monthly, maybe you should consider a career as a loan shark ... unless you mean 8% annually, taken out in monthly installments of 0.67%?

As for your plan and asset allocation, they look good to me. I chose Index500 for accounts that cannot be invested in individual stocks, but your choice is as good as mine. I tend to believe I can identify really bad individual stock investments and avoid them, which means I'm better off in the remaining good individual stocks - and my record bears this out. If you don't have the time or the interest to choose your own stocks, it's hard to do better than any of the Vanguard equity index funds.
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