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Thread: Moving portfolio to retirement mode

  1. #11
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    I don't really understand the idea of broad based indexes for retired people.

    Wouldn't it make more sense to have money in a few baskets, tied to a few sectors, so the retiree can sell the sector that is doing the best to fund their retirement and let the hurting sectors heal?


  2. #12
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    Whiich sectors are going to perform well? Do you know that in advance? How good are you at sector rotation? Few money managers succeed. I sure don't know which sectors are going to outperform on an annual or 2-3 year basis in advance. But if you do, I'd play it with ETFs and spend some time studying/listening to, for example, Larry Berman then.

    I suppose it depends on what a retiree wants to do with his/her time in retirement. Spend hours upon hours online trying to pick sector rotation? Or gardening, travelling, socializing, hobbies, etc.?

  3. #13
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    I often wonder the same question the OP asked...

    Meaning, is there a major shift going from asset accumulation mode to retirement / asset withdrawal mode?

    I suppose you could do this many ways:

    1. keep same funds or ETFs, just increase bonds exposure or cash wedge?

    2. keep same funds or ETFs, just start selling some bit by bit?

    3. move from broad-market ETFs (e.g., VTI) into more income-oriented (dividend) ETFs (e.g., VYM)?

    4. move into more dividend paying individual equities, including REITs?

    Combinations of all four and more.

    I'm still many years from trying / being able to retire but I'm getting closer with each passing year so I'm always curious to learn from folks that have been there and done that, and why they have chosen the path they did. I find it all very interesting.

    I guess I've always struggled a bit with the broad-based index for retirees - isn't your focus on capital preservation and income?
    Hidden Content - Working on a $1 million portfolio and $30k per year from it.

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  5. #14
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    Quote Originally Posted by My Own Advisor View Post
    I guess I've always struggled a bit with the broad-based index for retirees - isn't your focus on capital preservation and income?
    Maybe... but Total Return is still an overall performance criteria for the most part. I've not changed anything in my ex-Canada holdings pre vs. post retirement.... all broad based ETFs like VTI, VGK, XWD except for a few legacy US stocks that I sell when I need USD. Why should I change what has worked?

    From a Canadian holdings perspective, I have done some of your items 1-4.

    1. I maintain about a 1.5-2 year living expense exposure in cash equivalent wedge
    4. I made slight adjustments from the time I was 55 or so (immediately pre-retirement) to age 65+ (well into retirement) to boost the income stream a bit and that has been the purchase of some REITs and some preferreds, collectively in the order of 15% of my portfolio. Beyond that, I've stuck with what I have always had, mostly dividend paying stocks with a significant range of yields. I don't see that changing any time soon.


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