Episode 134 YouTube Live Q&A (not really): Answering Your Questions about Portfolio Allocation in Retirement

In this episode, Wade and Alex answer listener questions about portfolio allocation in retirement. They discuss the impact of low yields on TIPS and how it affects a retiree's portfolio. They also explore the optimal allocation of assets in taxable, tax-deferred, and tax-avoided accounts. Additionally, they address the role of annuities in retirement income and how they can replace the bond portion of a portfolio. They emphasize the importance of tax diversification and asset location. Finally, they provide insights on investing in stocks and the different factors to consider, such as value, small-cap, and REITs.

 

Takeaways

• Low yields on TIPS impact a retiree's portfolio and may require a reassessment of risk and allocation.
• Tax diversification is important, but the exact percentages in each type of account are not as crucial as asset allocation and asset location.
• Annuities can play a significant role in retirement income by providing protected lifetime income and reducing reliance on other investments.
• When investing in stocks, it is important to capture market risk and consider factors such as value, small-cap, and REITs.
• Growth indices may not necessarily provide a premium over value stocks in the long term.

Chapters

00:00 Introduction and Small Talk
02:45 Navigating Low Yields and Portfolio Allocation in Retirement
09:15 Optimal Allocation of Assets in Taxable, Tax-Deferred, and Tax-Avoided Accounts
25:58 The Importance of Tax Diversification and Asset Location
26:41 Investing in Stocks: Capturing Market Risk and Considering Factors

 

Links

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips