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One account will mostly cover our expenses until 70. At that point, assuming we are both still alive, social security and pension money will likely cover our expected expenses. This money is mostly in treasuries. I probably could put part of it in TIPs that would mature in 5 years.

I have an account (still) at TD that is decent sized but I probably won't need to draw from it unless something strange happens or expenses grow greatly after 70. Would you just put it all in the market and ignore it for most of a decade? I could see the money being needed if I were to pass away since that would cut my pension by 50% and my wife would only get my social security so that would leave a gap to fill.

For now it is a mixture of treasuries (2 years or less), stocks (BRK, Google, Facebook/Meta, ETFs (SP500, QQQE) and one fund Distillate US Fdmtl Stblty & Val ETF DSTL

I mostly curious what people who are retired would do with the money in the TD account. I don't think I'd be comfortable putting it all in stocks and I'm not a bond fund person.


Thanks
Rich

I don't think I'd be comfortable putting it all in stocks and I'm not a bond fund person.

I have some of our money in preferred stocks, holding them until called. It does take some (relatively infrequent) work to identify suitable preferreds, but they provide a reliable source of income until they're called. Quantum Online (https://www.quantumonline.com/ ) is a good source for locating preferreds.

Preferreds rather than common stocks for me because at my age, I need to be a bit more cautious--less time to recover from the intermediate-term drops on the way to the long-term gains.

One common stock: BEN, which I have because it's a stable company and I like the dividends it pays. Here, too, though, I don't care about its market price; I hold it for the dividends.

Eric Hines

With all dividends reinvested, in the last 10 years BEN turned $10,000 into $7200. CAGR -3.23%
If you took the dividends instead of reinvesting, $10,000 became $4,863. Looks like eating your seed corn.

Always check on PORTFOLIO VISUALIZER. https://www.portfoliovisualizer.com/backtest-portf...

Whenever somebody mentions a "good" stock that sounds interesting I generally check on PV. Found some good ones, found a whole lot of stinkers.

Looks like eating your seed corn.

Not sure how. I've collected a bunch of money in those dividends.

Eric Hines

For now it is a mixture of treasuries (2 years or less), stocks (BRK, Google, Facebook/Meta, ETFs (SP500, QQQE) and one fund Distillate US Fdmtl Stblty & Val ETF DSTL

I mostly curious what people who are retired would do with the money in the TD account. I don't think I'd be comfortable putting it all in stocks and I'm not a bond fund person.

I think you're doing what you need to do already: Index stock funds/BRK and enough treasuries/cash so you can sleep.

There's no need to get any more complicated than that.

We put my father-in-law's entire IRA portfolio into LifeStrategy Moderate Growth Fund (60/40). There are other allocations available:

https://investor.vanguard.com/investment-products/...

Can't get simpler than that. That's what I told my wife to do when I'm gone: keep the BRK and her IRA (Vanguard target date fund), put everything else into a LifeStrategy fund.

Thanks.

The biggest headache is just dealing with all of the accounts. Once Schwab moves my money from TD that will be one less account. Fidelity I just have to deal with a bunch of accounts for a while due to having some typical accounts (Roth, IRA, taxable and HSA) as well as inherited accounts (Roth, IRA) and for some reason Fidelity has my father's roth in 2 separate accounts since the money came from 2 different companies. I need to call them up and combine that money.

I'm planning to convert the inherited accounts sooner than later since I'll need the money. In my TD account I will try to do some Roth conversions over the next 5 years while income is lower and controllable.

I've found it is best to diversify within reason to account for the unknowns that always come up. Just a couple of years ago we were dealing with near zero rates and now everyone is complaining about high rates despite them being fairly low compared to much of history and not close to the double digits I can recall graduating school.

(I'm not against preferred stocks and its possible with the higher interest rates on treasuries some preferreds might be bargains now. I do have about 5% of my money in the WFC-pL that I got under par a long time ago.)

Thanks
Rich

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