I'm 53 and thinking of retiring. Net worth is about $5M and portfolio value is $4M (approx $800K of that in IRA's, 401K). Married and we spend about $90K per year. No debt. Current portfolio produces about 3.2% in interest and dividends.
Currently trying to figure out asset allocation going into retirement. I've been ok at the accumulation phase of my life but have no idea what to do during the distribution phase. We travel a bit now, but I'm hope that will increase. No current health concerns but I've never had to pay for health insurance out of pocket before so that is a big unknown expense. I'd like to try to live off just the interest and dividends without drawing down investments too much. Is that anywhere near realistic considering inflation and increased costs like healthcare?
Just trying to see if there are thoughts on my current setup going into retirement or thoughts on a tweaks going in? I've heard mixed information related to the amount kept in TIPS and I have had some people say keep as much as 2 years worth of spending in cash (as examples). I appreciate the feedback.
Current allocation is:
Domestic Total 5.28%
Domestic Value 4.13%
Domestic Small Cap 1.36%
Domestic Growth 1.68%
Individual Stock 5.72%
Domestic Stock 18.17%
Developed Total 5.75%
Foreign Value 4.82%
Foreign Small Cap 3.17%
Emerging Total 6.26%
Foreign Stock 20.00%
Domestic REIT 3.31%
International REIT 3.17%
REITs 6.48%
Domestic Preferred 2.25%
International Preferred 1.72%
Preferred 3.96%
Domestic Bonds 13.16%
International Bonds 12.98%
Municipal Bonds 7.43%
Domestic TIPs 14.00%
International TIPS 0.03%
Bonds 47.6%
Cash 3.10%
Cash 3.1%
Commodity 0.69%
Commodity .69%
Submitted May 04, 2019 at 10:47AM by letstrytogetalong http://bit.ly/2LwMlRU
