How Soon Before Retirement Should I Adjust My Portfolio?

[@Post4JM]

Agree with you 1000%. ❤ Your investment strategy should not be based on your retirement day but how much you really need the portfolio.

[@janethunt4037]

This was just incredibly helpful to me. I was just sure that the percentages I see on investment calculators based on age were not applicable to me, and you've convinced me that I'm right.

[@RootFP]

I’m glad to hear that!

[@davidcook7847]

10 years out! WOW! I'm only a few years out and all in NVDA for years. So far, so great

[@christaylor8022]

Thank you James, for another great video. The information is spelled out easily for us to understand! Keep the great content coming!

[@RootFP]

Thanks Chris!

[@neilcook1652]

Excellent, clear, sound advice, that helps me to validate where I’m at, thank you

[@RootFP]

You’re welcome!

[@conureron3792]

Thorough discussion

[@glockman99]

Another great video

[@Oivey2000]

Luckily, my Target Date Fund with Vanguard does the adjusting for me as I age and get closer to retirement/needing the funds, but this is good info for those that are managing their own portfolios.

[@johngill2853]

Your Vanguard Target Date fund is also very heavy international stocks, nothing wrong if that is your desired want/need. But it's very high percentage of international stocks for my taste

[@Oivey2000]

@@johngill2853 I agree. I'm with Jack Bogle who said you don't need international, or if you do choose to invest internationally limit it to 20%. But I like the target date concept, Vanguard's glide path and especially their very low fees so that's why I'm with them. But in my 401(K) at work I'm totally domestic since I have more than enough international with Vanguard.

[@johngill2853]

Fidelity no fee index

[@Patrick-xo8ht]

Great video. Never thought of the allocation that way.

[@RootFP]

Thank you!

[@johnyjsl9219]

James can you perhaps do a video on reducing stock exposure when the market is very elevated (risk is highest) and increasing exposure when market is at lower levels? You did an earlier video about investing new money at market peaks, but how about the allocation of existing investments vis-a-vis market levels? Seems to be if we are reducing market exposure based on age (retirement date) we might do the same based on market levels. thanks..

[@jpturner171]

Timely advice James…17 months to go👍🏽

[@RootFP]

Good for you!

[@eastbay40386]

For the 4 million example, can the retiree pledge the stock and borrow 40k money from the bank? Even if the downturn happens, it’s only one percent of the pro folio. What do you think?

[@70qq]

ty

[@RootFP]

Glad it was helpful!

[@jasonkatada1583]

Found it, thanks

[@kc3190]

Do you have a sliding scale of bond and stock ratios by year starting at year 10? For example, year 10 has 10% bonds and 90% stocks, should year 9 have 15% bonds and 85% stocks, etc? Or should thé growth of bonds happen faster in the last 5 years before I need the money?

[@everlastingarms3065]

It's not really about percentages. It's about having x number of years of expenses (where x is what you're comfortable with) in bonds/CDs/conservative investments, and the rest in growth. The years probably remain relatively static over time, or what you're comfortable with, and can probably diminish after age 80 or so (just my take), but the percentages would be ever-changing. Hope this helps; at least this is how he frames it, and I agree with his perspective on this. Good question.

[@bruced.370]

Great video 📹 👍 👏.

[@RootFP]

Thanks, Bruce!

[@jasonkatada1583]

How do I get in touch with you?

[@PH-dm8ew]

So i have been a bit too conservative with over 57 % in bonds and us treasuries for while. I switched 10 percent back into stocks after the march 2020 drop. I plan to retire at 60 next year. If and when we have another drop i would like to switch that 10 % back in. Good idea or stupid idea?

[@RootFP]

I can't say exactly how much you should have in stocks vs bonds, but that's a decision that I would base more on your financial plan and less on waiting for the next 10% downturn.

[@johngill2853]

Nobody knows that answer,but historically the higher the stock percentage the better if you don't panic. Problem is many people panic

[@sergiosantana4658]

By utilizing housing wealth into your retirement plan through the use of a reverse mortgage line of credit you can maintain a 100% equit portfolio with no need to adjust portfolio.

[@brianexplores285]

Excellent advice for the top one percent.

[@lkjacob1]

It's great advice for anyone! I'm not even a one percenter and never will be but some people just need to be snarky!

[@johngill2853]

Actually it's probably not good advice for the top 1 percent. The top 1 percent don't have to worry about the same risks as an average investor.