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Post by Deleted on Dec 10, 2021 1:46:11 GMT
End of year so time to review my AA. 6-10 years to retirement.
I have mix of stocks, real estate and some cash.
Bonds is like 1% of portfolio. primarily via Vanguard Wellington.
In stocks I have,
1. US 80%, INTL incl EM: 20% (Intl is majority EM) 2. Mid Cap : 8% 3. Small Cap: 2% 4. Large Cap: 90% (with 59% growth, 24% Blend, 7% Value)
Any change in allocation do you see?
I am thinking for waiting 1-2 years before adding bonds, after fed has increased rates somewhat. Till then it seems stocks and cash is safer.
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galeno
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Post by galeno on Dec 10, 2021 1:58:56 GMT
Cut equities to 60/40. Now. Two years from retirement go 40/60.
Once retired take your living expenses from FI until you get to 50/50. Then re-evaluate.
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Post by Deleted on Dec 10, 2021 2:08:03 GMT
To go to 60 (stocks) /40 (bonds) or may be 70/30 over say 2022,
Is this not a bad time to invest in Bonds?
or I think better question is what would some good bonds funds to invest my cash in today?
or should I pick some allocation funds like FBALX? Currently Wellington is only allocation fund I have. I can add to wellington.
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Post by Deleted on Dec 10, 2021 2:16:03 GMT
Well - what's your risk tolerance, what are your financial needs and other sources of support? I lean 85-15 and am 3 to 8 years from retirement. May go to 90-10 next year. I like either value or growth at a good price. SCHD which has been mentioned a lot, seems to do a nice job there. I have decreased EM and more in developed markets. Just based on my comfort level. I would stay in cash and not buy bonds now. But, you are losing to inflation. Buy I-Bonds? Get PIMCO to manage that part of your portfolio. I'm planning 75-25 when I retire and maybe 80-20. Also about risk tolerance and other income sources.
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Post by Fearchar on Dec 10, 2021 2:22:53 GMT
It's a good strategy to be overweight in equity right now.
Cash also makes no sense either; after taking into account inflation, cash is losing value. Over the short term and for spending purposes cash is okay, but not for the long haul.
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Post by Deleted on Dec 10, 2021 2:48:18 GMT
Well - what's your risk tolerance, what are your financial needs and other sources of support? I lean 85-15 and am 3 to 8 years from retirement. May go to 90-10 next year. I like either value or growth at a good price. SCHD which has been mentioned a lot, seems to do a nice job there. I have decreased EM and more in developed markets. Just based on my comfort level. I would stay in cash and not buy bonds now. But, you are losing to inflation. Buy I-Bonds? Get PIMCO to manage that part of your portfolio. I'm planning 75-25 when I retire and maybe 80-20. Also about risk tolerance and other income sources. Your thinking resonates with me. I have been reading your posts on other forum. And I did buy FB and PYPL recently. What does "Get PIMCO to manage that part of your portfolio" mean? Buy PIMCO bonds funds or stuff like PDI, PTY etc which are popular on these forums.
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Post by retiredat48 on Dec 10, 2021 3:09:21 GMT
Well - what's your risk tolerance, what are your financial needs and other sources of support? I lean 85-15 and am 3 to 8 years from retirement. May go to 90-10 next year. I like either value or growth at a good price. SCHD which has been mentioned a lot, seems to do a nice job there. I have decreased EM and more in developed markets. Just based on my comfort level. I would stay in cash and not buy bonds now. But, you are losing to inflation. Buy I-Bonds? Get PIMCO to manage that part of your portfolio. I'm planning 75-25 when I retire and maybe 80-20. Also about risk tolerance and other income sources. Your thinking resonates with me. I have been reading your posts on other forum. And I did buy FB and PYPL recently. What does "Get PIMCO to manage that part of your portfolio" mean? Buy PIMCO bonds funds or stuff like PDI, PTY etc which are popular on these forums. Sara... +1 to your reply post. Waffle...yes, consider PIMCO bond funds or stuff like PDI, PTY etc which are PIMCO also. Suggest include bond managers of funds at Doubleline (Jeff Gundlach) in the consideration. Lastly...suggest what I consider are "bond substitutes" in your FI allocation side. Such substitutes are: Preferred share funds (leveraged and unleveraged) such as PFF or HPS; income builder funds, such as TIBIX, where increasing the annual dividend amount is paramount, versus increase in stock prices; Bank loan funds; dividend growth funds such as VIG. Good day. R48
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Post by Norbert on Dec 10, 2021 4:57:19 GMT
retiredat48" income builder funds, such as TIBIX, where increasing the annual dividend amount is paramount ..." I see that TIBIX's annual return has been about half that of SCHD over the past 10 years (7.7% vs. 14.7%). That's huge. Both are dividend-focused funds. May I ask what you're seeing in this fund that motivates you to recommend it going forward? Do you think an international tilt will pay off? Is it the lower valuations of TIBIX? Both funds are LC value. TIA.
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Post by Mustang on Dec 10, 2021 10:41:45 GMT
It would really be nice if we could see the future. 10 years is plenty of time to reposition your portfolio from the accumulation phase to the withdrawal phase. My advice is to determine the beginning retirement asset allocation that achieves your goals and move a little at a time. What is your withdrawal strategy? That is what should determine your retirement asset allocation. Depending upon the withdrawal plan asset allocations can be all over the place A rising glide path strategy starts with 20-30% equity. A 60-year payout period might require the 80% equity position used in the Early Retirement Now articles. And you can use more than one withdrawal method. I'm planning on RMDs from our traditional IRAs. A dynamic withdrawal method allows for more risk. I'm looking at 70% equity right now in our IRAs and drawing down equities until we hit 65%. I'm also planning on using a modified 4% Rule from my taxable investments. For best results that sleeve of the portfolio needs to have between 50-75% equity. For my conservative nature I'm shooting for 50%.
That is pretty much the equity positions we need to achieve our retirement goals. Only you can determine yours but you need a target to aim for.
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Post by retiredat48 on Dec 10, 2021 18:20:00 GMT
retiredat48 " income builder funds, such as TIBIX, where increasing the annual dividend amount is paramount ..." I see that TIBIX's annual return has been about half that of SCHD over the past 10 years (7.7% vs. 14.7%). That's huge. Both are dividend-focused funds. May I ask what you're seeing in this fund that motivates you to recommend it going forward? Do you think an international tilt will pay off? Is it the lower valuations of TIBIX? Both funds are LC value. TIA. OK, hindsight is easy as to best returns. However, TIBIX is an income builder BOND SUBSTITUTE. Had anyone back then guaranteed 7.7% for ten years, I would have taken it. With monies reinvested(a form of dollar cost averaging), I am very pleased how TIBIX grew in my portfolio. Yes, I also own the VIGs and SCHD's of the world...as well as FSPTX high tech since inception. The reasons to like TIBIX currently as a bond substitute...or an interesting stock buy is: It is mostly European Companies, whose stock market has lagged for a decade plus...time to catch up? US dollar has strengthened...if dollar declines, favors TIBIX...so a hedge. TIBIX yield is 5% versus 3% on SCHD...more bond-like and yield focus, the theme of a bond substitute. Europe lags in Covid recovery...there will be a time covid is incidental everywhere; Europe should rebound OK. Most retirees like spending yield, not cap gains. BTW my strategy is to DIVERSIFY ownership of these bond allocation alternatives, to lessen the overall risk (think MLPs). TIBIX diversifies. R48
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galeno
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Post by galeno on Dec 10, 2021 18:54:03 GMT
We were recently early retired when we got hit with the 2000-2002 bear market. With an aggressive 80/20 port.
We hung tight and rebalanced into a bonfire. We learned a HUGE lesson from that.
Our port recoperated in late 2005. We converted to Bogleheadism in Jan 2006 and went to 60/40. We also bought our first bonds.
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Post by Deleted on Dec 10, 2021 19:54:17 GMT
galeno Thanks. I totally understand your viewpoint. I would have gone more conservative but 1) I started investing after age of 40 and initially for few years was in mostly value oriented - US value funds and Intl - and making like 0% returns. 2) We are in rising rates environment and bonds seem kind of risky. I understand there are many kinds of bonds and experienced bond managers know how to navigate rising rates environment. Still I am waiting for few rate increases by fed before I jump into bonds. So I cannot go too conservative now. I will have to be more like Sara - 80/20 or 85/15 till like 2 years before my retirement and then gradually shift. Though, starting now, I will start adding more dividend based stocks/MFs/ETFs over purely growth stocks as other posters suggested. I will also research into Pimco and Doubline and likely in 6 months or so add them to my portfolio.
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Post by rhythmmethod on Dec 10, 2021 20:08:15 GMT
retiredat48 " income builder funds, such as TIBIX, where increasing the annual dividend amount is paramount ..." I see that TIBIX's annual return has been about half that of SCHD over the past 10 years (7.7% vs. 14.7%). That's huge. Both are dividend-focused funds. May I ask what you're seeing in this fund that motivates you to recommend it going forward? Do you think an international tilt will pay off? Is it the lower valuations of TIBIX? Both funds are LC value. TIA. OK, hindsight is easy as to best returns. However, TIBIX is an income builder BOND SUBSTITUTE. Had anyone back then guaranteed 7.7% for ten years, I would have taken it. With monies reinvested(a form of dollar cost averaging), I am very pleased how TIBIX grew in my portfolio. Yes, I also own the VIGs and SCHD's of the world...as well as FSPTX high tech since inception. The reasons to like TIBIX currently as a bond substitute...or an interesting stock buy is: It is mostly European Companies, whose stock market has lagged for a decade plus...time to catch up? US dollar has strengthened...if dollar declines, favors TIBIX...so a hedge. TIBIX yield is 5% versus 3% on SCHD...more bond-like and yield focus, the theme of a bond substitute. Europe lags in Covid recovery...there will be a time covid is incidental everywhere; Europe should rebound OK. Most retirees like spending yield, not cap gains. BTW my strategy is to DIVERSIFY ownership of these bond allocation alternatives, to lessen the overall risk (think MLPs). TIBIX diversifies. R48 , Norbert , I agree it is impossible to predict the future and hindsight is always 20/20. TIBIX as a bond substitute is reasonable, IMO. This reasoning is why I believe VWIAX to also be a decent bond substitute. I do see the higher yield of TIBIX as an advantage. However, that can also be made up with FI CEFs. Seems like shades of gray to me...🤷🏼♂️ Edit to add - even though I don't see TIBIX as a good fit, retiredat48 makes a point about European stocks that make me re-think adding a little to SCHY. Wadda 'ya think chang?
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Post by yogibearbull on Dec 10, 2021 20:23:19 GMT
I wouldn't call TIBAX a bond-proxy. It is income-focused, called income-builder, but has nominal equity of 84.55% and SD 17.60 (vs SP500 SD 18.49). I may accept FASIX, VASIX, FTANX, VWINX as bond-proxies, but that is already stretching it.
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Post by rhythmmethod on Dec 10, 2021 22:51:50 GMT
I wouldn't call TIBAX a bond-proxy. It is income-focused, called income-builder, but has nominal equity of 84.55% and SD 17.60 (vs SP500 SD 18.49). I may accept FASIX, VASIX, FTANX, VWINX as bond-proxies, but that is already stretching it. Thanks, yogibearbull. I should have looked at the SD but didn't as I don't see TIBIX as a good fit for me currently. retiredat48, would you not agree that VWIAX (SD 7.57) provided a better return (and risk return) than TIBIX? I'm not in love with VWIAX but see it as a decent soup stock (so to speak) to build a PF on. One can always add my equity, or FI as need be. My thoughts, anyway. Take care!
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Post by chang on Dec 11, 2021 2:24:06 GMT
Edit to add - even though I don't see TIBIX as a good fit, retiredat48 makes a point about European stocks that make me re-think adding a little to SCHY. Wadda 'ya think Admin〵chang? I guess I am inclined to agree, otherwise VGWAX would not be my largest holding -- and I selected that fund specifically for its Foreign LV portfolio (long before SCHY was made available). Re TIBIX, not a fan, and I say that as an owner from around 2005-2017(?). You can find numerous posts on M* made by me about TIBIX. I sold with a healthy profit, to be sure, but its record was one of excessive volatility and missed opportunities. Which drowned out the "income builder" feature imo. I won't repeat all the issues and details here. I will repeat one problem I see with TIBIX, though: I want foreign dividends to show up in my taxable account so I can claim a credit for foreign taxes paid. On the other hand, TIBIX is a lousy fund to hold in a taxable account (that's where SCHY as an ETF has a big advantage). Back to SCHY: I am more likely to add than to sell it. Fortunately, I don't hold a ton of it, so there's room for me to squeak up the amount a bit.
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Post by chang on Dec 11, 2021 2:31:37 GMT
TIBIX yield is 5% versus 3% on SCHD...more bond-like and yield focus, the theme of a bond substitute. I promised in my reply to rhythmmethod that I wouldn't dive into TIBIX, but I have to push back a little on this observation retiredat48 . First, TIBIX's volatility during the 10+ years I owned it was enormous, which is not very bond-like and also overwhelmed its yield. Second, TIBIX is a flexible balanced fund, and had the opportunity to go to bonds in 2008-2009, but it didn't. Its bond sleeve stayed around 10-20% even during the worst equity ravages. Draw your own conclusions from that. I ultimately decided that Thornburg's style and approach didn't suit me as well as, say, Wellington Management's.
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Post by retiredat48 on Dec 11, 2021 8:02:04 GMT
TIBIX yield is 5% versus 3% on SCHD...more bond-like and yield focus, the theme of a bond substitute. I promised in my reply to rhythmmethod that I wouldn't dive into TIBIX, but I have to push back a little on this observation retiredat48 . First, TIBIX's volatility during the 10+ years I owned it was enormous, which is not very bond-like R48 replies in bold...I just looked at the M* charts. Where is this extreme (enormous)volatility? Yes in the 2008 and 2020 bear markets it had a large price drop--after all, it is a mostly stock fund. But otherwise I don't see extreme moves. I didn't say my bond substitutes were bond-like in price movements. and also overwhelmed its yield. How does volatility overwhelm yield? The dividends were always paid. I never sold any, so volatility irrelevant. I did dollar cost average in the dividends, for which volatility adds to performance as one buys more shares at low price points. Second, TIBIX is a flexible balanced fund, and had the opportunity to go to bonds in 2008-2009, but it didn't. Its bond sleeve stayed around 10-20% even during the worst equity ravages. Draw your own conclusions from that. TIBIX is a high yielding income builder. It does not buy AAA treasuries. It invests in junk bonds, for example, for its bond side allocation, just like I want them to do. I did not want a 50-50 allocation or I would not have bought TIBIX. I wanted about 85/15.I ultimately decided that Thornburg's style and approach didn't suit me as well as, say, Wellington Management's. OK, but you are not comparing these fairly. Wellington is a mostly domestic stock fund with a high quality (lower yield) bond sleeve. I own these as well, but in separate funds. TIBIX is mostly European, with junk bond holdings. That's where the diversification comes in.
You simply can't look in hindsight and say that one should have selected the other. For instance, Emerging Markets lagged over the last decade. The previous decade EM was the leader, the top stock performance holding in five of those ten years. Diversification picks up this performance.
So yes, Yogi can say TIBIX is not a bond substitute (as it is only about 15% bonds), but that is what I used it for. It is part of a diversified set of investments that is taking the place of my former plain, vanilla bond allocation. BTW PCI and PCI are part of that diversified set, for instance...high yielding leveraged mortgage based funds. And preferred stock funds.
Per M*, $10,000 invested in TIBIX in 2012 is now worth $21,851 today. As a bond substitute this is fine for me. If one can guarantee TIBIX will repeat this total return in the next 10 years, I will gladly accept it. A 5% yield, income building, and a modest recovery in European Economy and stock Markets, would easily result in this total return--or more.
R48
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Post by Mustang on Dec 11, 2021 9:37:24 GMT
Maybe the difference is that I don't look at yield. I look at total return. But how is TIBIX a bond substitute? Diversification is finding investments that have low correlation. It is a way of lessening volatility which is important when withdrawing money to live on. Bond prices have a low correlation to stock prices. That is why a combined stock/bond portfolio is considered diversified. TIBIX is approximately 85% stock. It lost 34.42% in 2008. That is not a zero or low correlation when SPY lost 36.97% in 2008. That is hardly any difference at all. Most of the articles I've read suggest Vanguard Wellesley Income (VWIAX) or a similar fund as a bond substitute. It is not bonds. It does not have a zero correlation but it only lost 9.8% in 2008. Bonds have almost no return right now which is why investors are looking for a substitute. Wellesley's average return around 8%. It will have losses when the market turns down but it is a fund the investor can withdraw from without losing too much. Withdrawing from it allows other investments to recover.
Note: The original post was talking about 6-10 years from retirement and a retirement asset allocation.
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Post by rhythmmethod on Dec 11, 2021 11:08:54 GMT
I wouldn't call TIBAX a bond-proxy. It is income-focused, called income-builder, but has nominal equity of 84.55% and SD 17.60 (vs SP500 SD 18.49). I may accept FASIX, VASIX, FTANX, VWINX as bond-proxies, but that is already stretching it. Thanks, yogibearbull. I should have looked at the SD but didn't as I don't see TIBIX as a good fit for me currently. retiredat48 , would you not agree that VWIAX (SD 7.57) provided a better return (and risk return) than TIBIX? I'm not in love with VWIAX but see it as a decent soup stock (so to speak) to build a PF on. One can always add more equity, or FI as need be. My thoughts, anyway. Take care!
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Post by chang on Dec 11, 2021 23:25:01 GMT
Fair points retiredat48 . By volatility I meant, of course, down markets and bear markets, where TIBIX always got hit hard. People seldom complain about up-market volatility. I can't remember the last time some fund returned 50% in a good year and the owner moaned about how volatile the fund was. Good point about TIBIX bonds being HY (which also got hammered during the 08-09 crash) by mandate. Nevertheless, it is a flexible hybrid fund run by intelligent managers, and they could have made some changes in both the stock and bond portfolios to mitigate some of the carnage .... instead, they always seemed to crash harder than their peers. By the way, by "Wellington Management" I didn't actually mean the fund VWELX but rather the entire organization (they manage a bunch of funds, including Dividend Growth-VDIGX, Emerging Markets Select-VMMSX, Equity Income-VEIPX, Wellesley-VWINX, etc.) When I kicked TIBIX out of my portfolio it was part of a pretty large shake-up, so I cann't say that I exactly replaced it with XXX, but the major new funds were VWILX and VGWAX, which have performed at least as well as TIBIX if not better, so I have no complaints.
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Post by retiredat48 on Dec 12, 2021 3:37:07 GMT
@chang...
When "you kicked TIBIX out of your portfolio"...you were not retired then, right? You are not retired now, for certain, right? So it is OK to move to what you think is a better performing portfolio and funds, while still working.
But many retirees go to dividend themed portfolios, for added safety. TIBIX for me did this.
Also, the need for bond substitutes was not back then, it is now. With bond fund yields so low.
My biggest gripe with TIBIX was their failure (similar to Fidelity) to lower expense ratios as asset size grew into billions. But their are so few income builder funds, the choices limited. I use TIBIX to get some international diversification as well.
Chang, I'm not sure you were posting on M* way back when income builder funds were all the rage (CAIBX if I recall), and some posters making a case that it is all that retirees need in their portfolio. Some went 100% income builder funds. The rationale and arguments they made still hold today...perhaps even more so, as growth has raged to very high levels compared to 2008/9 period. Thus I want an income builder fund as part of my "retiree" portfolio makeup.
More on bond substitutes and tilting to stock funds now, in my next reply.
R48
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Post by retiredat48 on Dec 12, 2021 4:04:20 GMT
Maybe the difference is that I don't look at yield. I look at total return. But how is TIBIX a bond substitute?
Well, it is an age-old argument and discussion on whether to build a retirement portfolio around yield, or total return, or both. There are merits in all camps. Hundreds of original posts exist. I decided to use both...that is, I felt I had enough assets a decade ago to slowly get to a portfolio whereby I could live off of the yield alone. I restructured and to my amazement, I did it. That is, my dividends in IRAs etc plus social security plus rental property income, were enough for me to live on...and meet RMDs THAT IS A VERY COMFORTING FEELING. IT MEANS, REGARDLESS OF STOCK MARKET VOLATILITY AND BEAR MARKETS, UNLESS COMPANIES CUT DIVIDENDS A LOT, IT DIDN'T MATTER--RIDE IT OUT. Fast forward to today, and I can surely meet this goal with stock fund dividends alone (due to increasing portfolio values). Couple this with the terrible yields today on the bond side, I concluded to exit standard issue bond funds, as not worth it. So when I say TIBIX is a bond substitute for me, that is what it means. I am taking my former bond fund money and redeploying to actually boost yield further, so that I have an even greater margin of safety, of living off of yield. I am also holding the largest percent cash (or short term bond funds) ever. I call it investing in an etf called PATIENCE. I am patiently waiting, and thus have several years of withdrawals in safe places if needed as well. Now, if stock funds get zooming to new highs, and/or go parabolic, I also sell some to cash, and live off that, reinvesting the dividends from other funds. I'm agnostic--I will live off of capital gains (or total return), when the times are right (like now). I posted also doing so in Jan 2020, just before Covid, with the parabolic rise in stock funds. I plan to post an anecdote of me assisting an executor for a 96 year old couple, who died within two weeks of each other, and their 100% stock portfolio experience. This retiree asset allocation stuff of 60/40 bonds etc is relatively new (35 years in common use), and IMO maybe has outlived its usefulness. For instance, today I place rental real estate property far ahead of bond funds in terms of yield, total return, and safety. Perhaps it is why I own some. R48
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Post by chang on Dec 12, 2021 8:47:36 GMT
Chang, I'm not sure you were posting on M* way back when income builder funds were all the rage (CAIBX if I recall), and some posters making a case that it is all that retirees need in their portfolio. Some went 100% income builder funds. The rationale and arguments they made still hold today...perhaps even more so, as growth has raged to very high levels compared to 2008/9 period. Sure I was. Who could forget Taylor/TaylorZR posting about CAIBX every day? But while I understand the case for an income builder, the case can be pushed too far. Taylor got quite a bit of ridicule, much of it merited. Though not as much ridicule as "silverking", who pumped ADVDX incessantly. Now there’s an example of dividend investing gone overboard. That fellow was promoting a dangerous dividend-capture fund, from a company of questionable reputation (Alpine), purely on the strength of its 28% dividend. (You made several good points in your post: expense ratios, collapse of bond yields during the last 10-15 years, etc. I'm not sure about the inherent "safety" of a dividend-yield strategy, but I don't want to digress too much here.)
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Post by Mustang on Dec 12, 2021 12:38:04 GMT
retiredat48 , we aren't there yet. We don't have enough assets to live off an income withdrawal strategy. We re-invest all dividends and capital gains. The only withdrawal we are taking from our portfolio right now is an RMD. It was a good year. Dividends and capital gain distributions exceeded the withdrawal. Maybe if I win the lottery I'll be able to change my withdrawal strategy. My wife invests in one ticket every week. P.S. I'm invested in that same ETF right now, patience.
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Post by Chahta on Dec 12, 2021 13:10:00 GMT
Mustang , are you saying you are still working to support yourself or are retired living from SS/other means? I understand your deep dive research in SWR. Don't mean to pry.
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Post by oldskeet on Dec 12, 2021 13:14:01 GMT
Hi guys, Old_Skeet owns TIBAX (TIBIX) for its capacity to generate income plus it provides some foreign exposure that some of my other hybrid funds don't provide. I have owned this fund even before my retirement about eight years ago. I take advantage of it's price swings and buy more of it when it goes on sale (so to speak). For me, it is a keeper. Some my find this link of interest ... some may not. www.thornburg.com/products-performance/mutual-funds/multi-asset-funds/fib/
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Post by Chahta on Dec 12, 2021 13:19:06 GMT
End of year so time to review my AA. 6-10 years to retirement. I have mix of stocks, real estate and some cash. Bonds is like 1% of portfolio. primarily via Vanguard Wellington. In stocks I have, 1. US 80%, INTL incl EM: 20% (Intl is majority EM) 2. Mid Cap : 8% 3. Small Cap: 2% 4. Large Cap: 90% (with 59% growth, 24% Blend, 7% Value) Any change in allocation do you see? I am thinking for waiting 1-2 years before adding bonds, after fed has increased rates somewhat. Till then it seems stocks and cash is safer. I never owned bonds until I was 65 YO. Reduced work to 1/2 time in 2018 to ease into retirement. Retired at 67 (2019). 2017 was a decent year to convert to 50/50 but 2020 would have been a better year. I agree that you should let rates rise some. Get an idea what type of funds you may want to buy and track the price. At some point IT core/core plus will be a great buy again.
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Post by Chahta on Dec 12, 2021 13:36:51 GMT
Interesting fund, TIBAX. Looking at it in Backtest, a 50/50 mix with SCHD/PTY would have given you better everything than TIBAX.
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Post by Mustang on Dec 12, 2021 14:21:35 GMT
Mustang , are you saying you are still working to support yourself or are retired living from SS/other means? I understand your deep dive research in SWR. Don't mean to pry. I am a retired military officer, a "mustang" officer not a "thoroughbred." That was a term coined long ago. Thoroughbred officers were the academy grads. Mustangs were NCO who became officers. Mustangs are wild animals. They can be broke to ride but a little of that wildness stays. They are not as refined as a thoroughbred. They always have a few bucks in them. After 20 years of service I retired and went to work in accounting, I have an undergraduate degree in accounting and an MBA. After around 20 years in industry (both running a machine on the factory floor and in accounting.) I retired as the CFO of a small manufacturing company. About half of my investments are from their 401k plan which I transferred to an IRA.
I quit working in 2018 when I stopped teaching accounting part-time for a local university. My wife and I live off my military pension and my social security. We re-invest my RMDs and her social security. But all of that changes should something happen to me. My military pension and social security goes away. I pay monthly for an annuity through the Air Force that will replace part of my pension and she may get social security survivor benefits but most of her income will come from our investments. Thus, my focus on simplicity and stable withdrawal income.
The path getting here was a winding road. I've been on my own since I was 18.
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