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What should our portfolio distribution be if my wife and I are becoming more risk averse?

My wife and I are both planning to retire December 31, 2021. She will be 70.5 years old, I will be 73 years old. We currently have just over $1,000,000 in combined retirement accounts-heavily weighted in stock mutual funds. What should our portfolio distribution be? We are becoming more averse to risk.

Financial Planning, Retirement, Asset Allocation, Mutual Funds, Stocks
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Regarding the distribution you and your wife take from your portfolio, the 4% rule states that retirees with a diversified portfolio split between stocks and bonds can safely withdraw 4% of their initial balance at retirement, adjusting the dollar amount for inflation each year after that.

Regarding the asset allocation in your portfolio, if you want to reduce risk, then increase the proportion of high-grade bonds relative to stocks. Before you make any changes though, I'd advise you to assess your risk tolerance by taking the award-winning online FinaMetrica Risk Tolerance Test.

 

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