In my opinion at ages 51 and 60, around 6 years until expected retirement, an asset allocation of 70/30 stocks/fixed income is within the range of what is reasonable.
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My age:51 Wife's Age: 60
I am self-employed working part time. Prefer to retire age ~58. Wife makes negligible money and won't take SS until age 70. We started a small business a year ago in the hopes that it can be a "hobby" that will generate enough income to cover med costs to allow for retirement at that age. Any income generated from that business beyond covering medical is gravy.
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His soon to be rolled over SIMPLE IRA:. . . . .
- AMCPX American Funds Large Growth 1.5%
Here is the missed the boat part I'm referring to. I had subscribed to the use your age for bonds and well, you know how that's gone. While I was slightly more aggressive having bond percentage at 30%, it still hurt the gains the past few years. Also, I subscribed to the four fund portfolio with half of the equity fund holdings in international.
My main questions are what the heck to do with the bonds (and future bond % allocation) as well as overall allocation. Should I consider the 3-fund portfolio? Different bond funds?
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Which fund firm or brokerage is your SIMPLE IRA currently with, and which fund firm or brokerage to you plan to receive the rollover of that account?
In my opinion Vanguard Total Bond Market Index Fund (VBTLX) is suitable for your fixed income allocation, held in one or more of the traditional IRAs. Other suitable bond funds would be Vanguard Intermediate Bond Index Fund (VBILX), and Vanguard Interm-Term Treasury Adm (VFIUX).
When very near retirement Vanguard Shrt-Term Infl-Prot Sec Idx Ins (VTSP) would also be a reasonable choice for part of the fixed income allocation. You can also consider I savings bonds through Treasury Direct, purchase limit is $10k annually for each of you.
Statistics: Posted by ruralavalon — Mon Mar 25, 2024 11:14 am — Replies 5 — Views 1013