Looking to rebalance to get our portfolios better aligned with life stage. Wife and I are both retired, though she contracts p/t. We are in our late 50's.
I read on the Wiki, John Bogle's advice for SS in portfolio balancing:
John Bogle recommended "roughly your age in bonds"; for instance, at age 45, about 45% of the portfolio should be allocated to high-quality bonds. He also suggested that, during the retirement distribution phase, you should treat the value of any future pension and expected Social Security payments as a bond-like component of wealth and asset allocation.
I'm a bit confused by this as to how to factor in future and, let's be honest, undetermined SS benefits in balancing portfolios TODAY. Or if I even should. Practically speaking, I understand the thought here but pragmatically am at a lost as to how to go about it.
On a different note, we have most of our retirement savings in 401k but also have a couple after tax accounts and Roth IRAs. I'm struggling a bit on full portfolio allocation (the easy part) vs. each account, or acct. type. Perhaps I should adjust balances by type to be more conservative on the after tax accounts given the recommendation to withdrawal from those first but the issue is tax on any gains. The goal is to have an allocation across entire portfolio but I'm trying to make sense of how to practically apply that across several different accounts/account types.
I read on the Wiki, John Bogle's advice for SS in portfolio balancing:
John Bogle recommended "roughly your age in bonds"; for instance, at age 45, about 45% of the portfolio should be allocated to high-quality bonds. He also suggested that, during the retirement distribution phase, you should treat the value of any future pension and expected Social Security payments as a bond-like component of wealth and asset allocation.
I'm a bit confused by this as to how to factor in future and, let's be honest, undetermined SS benefits in balancing portfolios TODAY. Or if I even should. Practically speaking, I understand the thought here but pragmatically am at a lost as to how to go about it.
On a different note, we have most of our retirement savings in 401k but also have a couple after tax accounts and Roth IRAs. I'm struggling a bit on full portfolio allocation (the easy part) vs. each account, or acct. type. Perhaps I should adjust balances by type to be more conservative on the after tax accounts given the recommendation to withdrawal from those first but the issue is tax on any gains. The goal is to have an allocation across entire portfolio but I'm trying to make sense of how to practically apply that across several different accounts/account types.
Statistics: Posted by GoneCamping — Tue Jul 09, 2024 4:45 pm — Replies 1 — Views 219