There is absolutely nothing wrong with an "age in bonds" AA; the Wiki of this board recommends it as a starting point for determining AA. A lot of the advice you will get here is of little use. One poster offers:A big thanks to Wiggums and madbrain and especially to luminous for their responses.
To luminous, I've got a few followups.
* Thanks for pointing out that we are suggesting a very conservative allocation. I will do some more research!
* Conceiving of all the investments as one big portfolio sounds good. I looked up the percentage allocations in stocks/bonds/intl-stocks for our IRAs (mostly TDFs as you say) and I calculated the allocation of these. Is it better to put our whole portfolio into three separate funds, or can I just buy the right amount of additional stocks/bonds/intl-stocks so that my overall allocation matches my desired allocation percentages, then reallocate it all once a year?
* We set up a joint trust a few years ago when we did wills. I think that means our assets are all co-owned.
* Your comment about 0.29% is kind of what I suspected for the IRA. If I'm planning to get a Vanguard account anyway then is it reasonable to Vanguard folks about transferring that IRA over when I buy some stocks/bonds/intl-stocks?
* Doh...I'm not at the max/year for my 403b and need to fix that. Just another dumb thing I can kick myself for. The 401k and the 457b were both actually at $23k/yr though.
* The tax efficient fund placement and backdoor Roths sound interesting for second level stuff once I get the basics lined up better.
To luminous and madbrain
* Yeah, early mortgage payments. We can work on doing better... sigh.
I'm not at the max/year for my 403b and need to fix that. Just another dumb thing I can kick myself for. The 401k and the 457b were both actually at $23k/yr though. 80/20 around age 50 is an risk outlier. Risk outliers have posted agonizing posts after corrections and crashes here as they capitulate and sell low. Just because someone is doing something doesn't mean it is somtehing that is generally recommended or right for you. Someone can post that they have smoked Camel straights for 40 years or that they have never worn their seat belt in their life. That is irrelevant to you. Read the Wiki and recommended books like the Boglehead Guide to Investing 2nd Edition. That should inform you more than strangers on the internet.For comparison, I'm in my late-40s with teenagers and I have 80% stocks.
Statistics: Posted by windaar — Tue Apr 16, 2024 7:59 am