Marjorie,It sounds like you are basically on top of things. I would suggest, even with 25 years to retirement, you try to run some rough estimates as to expenses (after inflation) when you start retirement. That can then let you figure out how much you will need to accumulate by then to have a reasonable initial withdrwal rate (3-4%). An age adjust allocation plan is better than nothing (e.g., 110 minus your age in low default risk fixed-income/bonds), but you can do better estimates fo ryour personal circumstances. My wife and I have a low % of stocks for our age for the simple reason that we are able to save so much each year (now) relative to our expenses, we are going to be able to retire with below a 3% initial withdrawal rate without taking on a lot of stocks or high default risk bonds.If you figure you can get about 2% (pre-tax) above inflation from the low risk bonds/fixed-income, with what you already have plus social security, you could probably accumulate enough with no stocks if you can put away 75% of your expenses (not including wage and income taxes) for the next 25 years.This can also help on your desire to improve on your index fund returns. If average is more than enough, why take on unnecessary risks just to be a winner.
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