I am probably 1-2 year from retirement, and am pretty aligned with Target Date Funds, Boglehead concepts, and getting more conservative financially for obvious reasons. I just did an audit of my 401K and Investment account and Roth IRA.
[While I do understand there is some redundancy here with TDF and Index funds and Bond funds, and would likely prefer to have less $$ in individual stocks, they are 75% Berkshire, Apple and Block.]
Anyway, please let me know what you suggest for these weights, and any thoughts/insight into a better path forward now that I am getting close to the start of the good times! Thanks so much.
| Target Date Fund | Index Funds | Stocks | REIT | Bonds / Money Market | Cash |
|---|---|---|---|---|---|
| 27% | 20% | 13% | 4% | 16% | 21% |
Close to retiring! Need feedback on retirement breakdown
byu/ZIP-King-of-rock ininvesting
Posted by ZIP-King-of-rock
5 Comments
that basically looks ok to me. i’ve been retired for 6 years.
21% cash seems high to me, i would just say it depends on how much 21% is compared to what your expenses are.
i keep about 3 months worth of expenses in a checking account in case i kick the bucket. it shouldn’t take my wife any longer than that to get everything into her name.
it only amounts to 1% of my holdings, all other free cash is in a money market ETF.
my soc sec + divs from all sources basically gives me all the cash flow i need.
6 years into retirement.
I suggest books by Wade Pfau (PhD in economics from Princeton) and Michael H. McClung’s opus, [Living Off Your Money](https://en.wikipedia.org/wiki/Great_Filter). Disclaimer — I am taking a simpler approach than the one that McClung arrives at, but nevertheless I found the book to be extremely helpful.
I really think your $ number matters not just %.
I assume your cash is in treasuries also? In taxable? How much is that in $?
Look at your TDF and how much of that is now bonds? Could be up to 50%. To me, too much in bonds overall. But the time to fuss with those was years ago really.
Anyway, to me, the real $ number is missing for you. Are you retiring at FRA and with Medicare ? Not earlier?
What’s the date on the Target Funds? It definitely looks pretty high on the cash side. You really only need 6 months of expenses there. I would move more into my bond portfolio.
I mean seems more or less fine. I definitely wouldn’t be 21% cash though personally