No. of Recommendations: 0
epiloguenc asks,

I am 100% in equities and can't seem to justify a move to bonds. I understand the market can turn sour...but I am not overly aggressive and good stocks and funds seem a safe haven to me. Would like some feedback from other retirees in training who share a similar philosophy.

Check out the Retire Early Study on Safe Withdrawal Rates at the following link:

If you look at the optimal asset allocations, the percentage of stock ranges from 82% for someone with a 50 year pay out period to 44% for an individual with a 10 year pay out period.

I retired 5 years ago at age 38 and haven't reduced my equity portion to anywhere near 82%, but I do keep 1 to 2 years worth of living expenses in a money market fund and 5 years worth in a laddered portfolio of CDs and US Treasury notes. As a minimum, I think a retiree should keep about 3 years worth of expenses in a money market fund or other short-term (less than 3 year maturity) securities.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.