Author Topic: More aggressive or less aggressive?  (Read 1799 times)


  • Handlebar Stache
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More aggressive or less aggressive?
« on: October 31, 2014, 09:40:44 AM »
So one school of thought out there is that you consider income from pensions, SS, annuities, etc., as a fixed income/bond portion of your overall allocation.  Theoretically, this allows one to be more aggressive in the equity allocation of their invested portfolio.  I will receive @41% of my gross salary in the form of a pension when I retire (@5 years from now), and figure to need only 57% of my current gross salary to cover all expenses in retirement, so I only need my investment portfolio to replace 16% of my current gross salary.  I can likely achieve this with a mere 1.7% - 2% withdrawal rate from my expected 401k balance.

My question is -- if you were me, would this incline you to be MORE or LESS aggressive in your investment portfolio?  

FYI, my current allocation is 60/40, with the equity portion being 30% S&P 500 index fund, 20% Wilshire 4500 Index Fund (essentially comprising a Total Stock Market index fund) and 10% in an international (EAFE) index fund, with 40% in U.S. Treasuries.  I started out way back when 100% in equities, then as time when on I dialed back to 90%, then 80%, 70% and now 60% for the last 1-2 years.  It's worked fine for me and I'm pretty comfortable with the mix, though I have considered going as high as 75% equities.

Interested in your thoughts.