Early 60s here, retired, no social security yet. I'm over 90% stocks, about 8% cash, a smattering of bonds. I've always viewed bonds as a tool for mitigating some of the volatility of my stock portfolio. I have a high tolerance for risk, but my conditions are somewhat unique: I'm a military retiree, with VA disabilty. Upon no kiddng retirement, I did some thinking: with a minimal risk (and inflation protected) pension, VA disability, and upcoming Social Security, did I really need bonds? After a present-value calculation of those income streams and considering them as bond-equivalents for portfolio allocation purposes, I concluded that I didn't need a sizeable bond position. What I really needed was the opportunity for growth presented by stocks, esp if I assume 25+ more years of shelf life.
Thanks for this Patrick...my wife and I are working thru the same decision calculus now. We're both 63, retired, come from long-lived families, and are inclined to delay claiming Social Security. However, another consideration is the cost of Medicare Part B premiums for those of us who use TRICARE. My military pension and investment income will likely push us into a higher Medicare Part B IMRAA bracket...so now I'm thinking one of us will claim at 65 to mitigate those Part B expenses.
Comments:
Early 60s here, retired, no social security yet. I'm over 90% stocks, about 8% cash, a smattering of bonds. I've always viewed bonds as a tool for mitigating some of the volatility of my stock portfolio. I have a high tolerance for risk, but my conditions are somewhat unique: I'm a military retiree, with VA disabilty. Upon no kiddng retirement, I did some thinking: with a minimal risk (and inflation protected) pension, VA disability, and upcoming Social Security, did I really need bonds? After a present-value calculation of those income streams and considering them as bond-equivalents for portfolio allocation purposes, I concluded that I didn't need a sizeable bond position. What I really needed was the opportunity for growth presented by stocks, esp if I assume 25+ more years of shelf life.
Post: Is a 100% stock portfolio reckless?
Link to comment from June 20, 2024
Thanks for this Patrick...my wife and I are working thru the same decision calculus now. We're both 63, retired, come from long-lived families, and are inclined to delay claiming Social Security. However, another consideration is the cost of Medicare Part B premiums for those of us who use TRICARE. My military pension and investment income will likely push us into a higher Medicare Part B IMRAA bracket...so now I'm thinking one of us will claim at 65 to mitigate those Part B expenses.
Post: Searching for When
Link to comment from December 7, 2023