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Resources on learning how to build a retirement portfolio? (self.personalfinance)

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

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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.

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[–] epchris 3 points 1 year ago (1 children)

Just out of curiosity, since I'm also considering bonds, what is "close to retirement" enough to consider non insignificant bod allocation?

[–] [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.