Personal Finance

3802 readers

1 users here now

Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Join our community, read the PF Wiki, and get on top of your finances!

Note: This community is not region centric, so if you are posting anything specific to a certain region, kindly specify that in the title (something like [USA], [EU], [AUS] etc.)

founded 1 year ago

MODERATORS

[email protected]

Resources on learning how to build a retirement portfolio? (programming.dev)

submitted 1 year ago by [email protected] to c/[email protected]

9 comments fedilink hide all child comments

About a year ago I hired a financial planner to manage assets in my retirement accounts but am starting to think about doing it myself.

I don't disagree with the general approach they're taking, but it seems like it should be simple enough for me to do myself every 6 months or whatever.

The gist of the strategy is a balance across large/mid/small cap and sectors at certain percents along with some % of bond funds and some real estate funds.

I think my main questions are how do I identify and compare various funds that fall into these broad categories to try and pick the ones I want to actually invest in.

you are viewing a single comment's thread
view the rest of the comments

[–] [email protected] 3 points 1 year ago

That's totally up to you. My personal number is about 5-10 years from retirement, though I'm pretty risk tolerant.

My plan is a rising equity glidepath. Basically, I'm going to load up on bonds (20-40% bond tent) a few years before retirement, and then ramp back down to no bonds in the first 10-20 years of retirement. I'm planning to retire early, and this plan seems to have a higher chance of success vs a consistent bond portfolio given a >30 year retirement.

The same strategy works for a shorter retirement, and you can keep your bond allocation constant as well. This strategy makes sense if you have a high risk tolerance, but recognize the need for portfolio stability in retirement. If you have a lower risk tolerance, do the "normal" strategy that target date funds use: 10% starting out, and increase as you get older.