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Going to a 100% Stock Asset Allocation Due to Nice Pension – Anyone else doing this?
On condition that, I’ve determined to go together with a 100% Inventory Asset Alloocation being 80% home and 20% worldwide with a medium sized tilt to small/medium caps. I believe that can give us the most important potential return given we’re unlikely to the touch the shares till effectively into our 70s once we may have LTC (we’re self insuring) or paying for grand children tuition and so forth.
The caveat is that we’re in California and the Californian Rule (defending pensions) applies to Ms Cheapo (25% of our pension quantities) however most likely to not me (75% of pension quantity) as I am not technically a authorities employee (although I work for a state entity).
Re: Going to a 100% Stock Asset Allocation Due to Nice Pension – Anyone else doing this?
Our children are each 100% equities, however that could be a bit too excessive for us as a retiree. Plus Mrs Wiggums would by no means approve of your allocation. You’ll be able to nonetheless make a much bigger pile of money with some fastened revenue in your portfolio. We additionally use further cashflow to purchase extra inventory to provide to our kids.
“I began with nothing and I nonetheless have most of it left.”
Re: Going to a 100% Stock Asset Allocation Due to Nice Pension – Anyone else doing this?
Who’s within the recreation? I’m at 95/5 and my youngsters are within the on-deck circle, and we really feel we’re investing for them since our pensions and SS cowl all residing bills, together with journey and gifting, and we’ve LTC coated. Our 5% is in money, which will get supplemented by financial savings from our pensions and SS.
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Re: Going to a 100% Stock Asset Allocation Due to Nice Pension – Anyone else doing this?
That saying – William Bernstein, if I recall accurately – would not advocate eliminating all danger out of your portfolio. It means eliminating danger (to the extent that is truly doable) from the portion of your portfolio you completely require. As soon as that is dealt with, you possibly can tackle as a lot danger as you possibly can abdomen with what’s left.
(AKA a Legal responsibility Matching Portfolio and a Threat Portfolio.)
Re: Going to a 100% Stock Asset Allocation Due to Nice Pension – Anyone else doing this?
ChrisC wrote: ↑Solar Sep 08, 2024 2:09 pmWho’s within the recreation? I’m at 95/5 and my youngsters are within the on-deck circle, and we really feel we’re investing for them since our pensions and SS cowl all residing bills, together with journey and gifting, and we’ve LTC coated. Our 5% is in money, which will get supplemented by financial savings from our pensions and SS.
Inherited wealth usually will get blown shortly. Possibly your children would be the exception. I am not occupied with enriching descendants such that they do not need to work and contribute to society. They’re going to get one thing through belief in periodic funds and the remainder goes to charity.
Grey would not matter.
Re: Going to a 100% Stock Asset Allocation Due to Nice Pension – Anyone else doing this?
MrCheapo wrote: ↑Solar Sep 08, 2024 1:01 pm
On condition that, I’ve determined to go together with a 100% Inventory Asset Alloocation being 80% home and 20% worldwide with a medium sized tilt to small/medium caps. I believe that can give us the most important potential return given we’re unlikely to the touch the shares till effectively into our 70s once we may have LTC (we’re self insuring) or paying for grand children tuition and so forth.
I’m tremendous with this.
I’ve additionally received a heavier-than-typical-Boglehead allocation to shares in retirement, largely due to my good pension. (However not 100%).
Additionally, I’ll wager that your companion LOVES being known as Ms Cheapo. It has a pleasant ring to it.
Retired life insurance coverage firm monetary govt who sincerely believes that ”It’s a GREAT day to be alive!”
Re: Going to a 100% Stock Asset Allocation Due to Nice Pension – Anyone else doing this?
It might be kinda bizarre and inconsistent in case your pension worth elevated and also you didn’t up the fairness stage in your funding portfolio. It might imply you both had an excessive amount of initially or not sufficient afterwards
So bravo. At the very least directionally I believe you’ve received the fitting concept
“Anybody could prepare his affairs in order that his taxes shall be as little as doable; he’s not sure to decide on that sample which greatest pays the treasury.” |
― Choose Discovered Hand
Re: Going to a 100% Stock Asset Allocation Due to Nice Pension – Anyone else doing this?
The query I might have with that’s the annuity charges for somebody younger (“early retirement”) mixed with no or almost-no COLA. I did this kind of myself – on a really small scale – by shopping for 2 extra years of pension service, however considerably misplaced that wager on account of what was for me unanticipated inflation.
The OP has a COLA pension in order that’s a very totally different scenario.
