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Retirement Savings By Age - What to do with your portfolio (T Rowe Price 2024)

hank
edited April 7 in Other Investing
Here’s the LINK

Offers only a simplistic approach which does not take into consideration one’s circumstances, knowledge base, experience or predilection for risk taking. Nonetheless, I thought it might be helpful for some - or a starting point for further discussion.

Price’s recommendations appear on the aggressive side compared to most other age related recommendations I’ve come across. I’m in-line with their 70+ age tier, being currently 40% equities, 40% bonds, 10% cash and 10% “other” (probably metals, real estate, derivatives). Always second-guessing that. A bit of reassurance that TRP lends some support.

Comments

  • yogibearbullyogibearbull
    edited April 7
    This is also reflected in the Price TDFs (old Retirement 20xx, newer & tamer Target 20xx) that are among the most aggressive. Fidelity TDFs are tamer, Vanguard TDFs in the middle.
    Fed TSP TDFs (with limited choices) are superconservative.
  • CrashCrash
    edited April 7
    An easy read. Thanks, @hank. Age 70 is coming for me in July. I can afford some more risk with a longer time-horizon---- given that I have a working spouse, much younger, and have heirs in mind, not just myself. Still, everyone should be prudent about taking either not enough risk, or too much.

    I'll switch-out of some of my junk bonds sooner or later. They are still juicy and advantageous at the moment. But yes, they will require me to stay vigilant about their risks in different circumstances. I've just BEGUN a position in FALN: investment-grade bonds which have fallen into "junk" status. The safer side of the junk bond world.

    My allocations are not far off from those offered in the article. I do not include savings in the credit unions; those accounts are always earmarked for some goal or expense we are saving for. And in just several months, the car will be paid-off: the new car we bought, after arriving here in the Aloha State. We got a good deal on that Nissan sedan, though there have been battery issues.

    7 cash.
    48 US stocks
    5 foreign stocks.

    38 bonds of all sorts, including the balanced funds we own. (Soon switching out of BRUFX and into WBALX to counter-balance some of the risk inherent in the single-stocks we now own. Oil/gas midstream and drilling is doing nicely; but financials and Real Estate? Not good at all, yet.)

    3 "other."

    Still reinvesting everything that comes, except with TS, because it's an ADR. I'm unable to reinvest profit from TS at Schwab. So, I'll reinvest the cash manually, myself. Every year in January, I take just a very thin slice from the T-IRA, which does not affect tax return. I deliberately keep that withdrawal amount limited, so that the portfolio can make up the difference through the coming year. Finally: I have been continuing to ADD monthly to the portfolio in tiny bites, too. I'll re-start that habit shortly with the new broker dealer (Schwab.)

    RMDs are coming in a couple of years. I suppose the "good news" is that I'm already accustomed to taking those RMDs unofficially, already. Maybe not quite as big a chunk as the required RMDs will be...
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