Comments on: How Much of Your Portfolio Should Be in Stocks When You Enter Retirement? http://www.consumerismcommentary.com/2009/05/27/how-much-of-your-portfolio-should-be-in-stocks-when-you-enter-retirement/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sat, 21 Nov 2009 16:42:00 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Cale http://www.consumerismcommentary.com/2009/05/27/how-much-of-your-portfolio-should-be-in-stocks-when-you-enter-retirement/#comment-194102 Cale Fri, 29 May 2009 18:23:20 +0000 http://www.consumerismcommentary.com/?p=6050#comment-194102 I found the book Spend 'til The End pretty enlightening when answering this question in particular. More specifically, the authors state: "Stock holdings should rise, fall, rise and fall with age" so, contrary to conventional financial wisdom, they advocate increasing your allocation to stocks when you first retire. Also a lot of other gems in there. I started posting some of my notes from the book on my blog at www.caleinthekeys.com. Here's the summary of the first part, FWIW: http://tinyurl.com/lexl9j I found the book Spend ’til The End pretty enlightening when answering this question in particular. More specifically, the authors state: “Stock holdings should rise, fall, rise and fall with age” so, contrary to conventional financial wisdom, they advocate increasing your allocation to stocks when you first retire. Also a lot of other gems in there. I started posting some of my notes from the book on my blog at http://www.caleinthekeys.com. Here’s the summary of the first part, FWIW: http://tinyurl.com/lexl9j

]]> By: Moneywinks http://www.consumerismcommentary.com/2009/05/27/how-much-of-your-portfolio-should-be-in-stocks-when-you-enter-retirement/#comment-194011 Moneywinks Thu, 28 May 2009 17:53:48 +0000 http://www.consumerismcommentary.com/?p=6050#comment-194011 For people who are in the 30' and 40's I still think you have time to be risky. It is those last 10-15 years that stuff should be converted to less risky investments. Also all these people who were losing a ton of money why didn't they have sells setup if they hit a certain low so they would not lose as much? I guess we all got a little greedy. For people who are in the 30′ and 40’s I still think you have time to be risky. It is those last 10-15 years that stuff should be converted to less risky investments. Also all these people who were losing a ton of money why didn’t they have sells setup if they hit a certain low so they would not lose as much? I guess we all got a little greedy.

]]> By: TStrump http://www.consumerismcommentary.com/2009/05/27/how-much-of-your-portfolio-should-be-in-stocks-when-you-enter-retirement/#comment-193978 TStrump Thu, 28 May 2009 04:52:56 +0000 http://www.consumerismcommentary.com/?p=6050#comment-193978 When I retire most of my portfolio would probably not be in stocks at all. I'd be more concerned about capital preservation at the point. Sure, I could miss a market rally, but the market could also go the other way, too. When I retire most of my portfolio would probably not be in stocks at all.
I’d be more concerned about capital preservation at the point.
Sure, I could miss a market rally, but the market could also go the other way, too.

]]> By: My Journey http://www.consumerismcommentary.com/2009/05/27/how-much-of-your-portfolio-should-be-in-stocks-when-you-enter-retirement/#comment-193974 My Journey Thu, 28 May 2009 03:19:01 +0000 http://www.consumerismcommentary.com/?p=6050#comment-193974 I think this downturn is particularly bad because those nearing retirement or in retirement ignored basic ideas of risk associated with 100% (or close enough) in equities. I think this downturn is particularly bad because those nearing retirement or in retirement ignored basic ideas of risk associated with 100% (or close enough) in equities.

]]> By: doctor S http://www.consumerismcommentary.com/2009/05/27/how-much-of-your-portfolio-should-be-in-stocks-when-you-enter-retirement/#comment-193971 doctor S Thu, 28 May 2009 02:45:03 +0000 http://www.consumerismcommentary.com/?p=6050#comment-193971 Wow. That March 9, 2008 comparison is an eye opener. The projection of $1 million decreasing to $600k is the most convincing point of it all. I know a bunch of people who planned on retiring this year who are still working. I guess the only way to prevent this from happening to ourselves is taking a peak at least once a year. Although, as @Greg comments above, the conservative approaches would not have provided much of an safety net as normal years. Im with Craig, im 25 and am even more risker 95/5 stocks vs bonds and I keep it that way until I have my first kid (hopefully later rather than sooner). Wow. That March 9, 2008 comparison is an eye opener. The projection of $1 million decreasing to $600k is the most convincing point of it all. I know a bunch of people who planned on retiring this year who are still working. I guess the only way to prevent this from happening to ourselves is taking a peak at least once a year. Although, as @Greg comments above, the conservative approaches would not have provided much of an safety net as normal years.

Im with Craig, im 25 and am even more risker 95/5 stocks vs bonds and I keep it that way until I have my first kid (hopefully later rather than sooner).

]]> By: Greg http://www.consumerismcommentary.com/2009/05/27/how-much-of-your-portfolio-should-be-in-stocks-when-you-enter-retirement/#comment-193944 Greg Wed, 27 May 2009 19:01:29 +0000 http://www.consumerismcommentary.com/?p=6050#comment-193944 Of course, bonds haven't exactly provided much of a haven during this downturn...... Of course, bonds haven’t exactly provided much of a haven during this downturn……

]]> By: Craig http://www.consumerismcommentary.com/2009/05/27/how-much-of-your-portfolio-should-be-in-stocks-when-you-enter-retirement/#comment-193940 Craig Wed, 27 May 2009 15:35:02 +0000 http://www.consumerismcommentary.com/?p=6050#comment-193940 From everything I have been reading you should start young and have roughly 90% in stocks (which I currently have in my Roth IRA) and when retire about the opposite at 10% if not less. No reason to be risky at that time, problem is a lot of people had accounts like that and lost big recently. From everything I have been reading you should start young and have roughly 90% in stocks (which I currently have in my Roth IRA) and when retire about the opposite at 10% if not less. No reason to be risky at that time, problem is a lot of people had accounts like that and lost big recently.

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