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Resources on learning how to build a retirement portfolio?
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this post was submitted on 07 Aug 2023
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Just out of curiosity, since I'm also considering bonds, what is "close to retirement" enough to consider non insignificant bod allocation?
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.