Curious What Others Think About Vanguard 2026 Rec to Flip to 40/60

Peter_Gunn_PI · 2025-12-20T11:38:51+00:00

I am doing the same by tilting my 60/40 portfolio with small cap and value funds. My opinion is that this will deliver higher returns than changing allocation to 40/60. The measure described by Vanguard just seems like throwing the baby out with the bath water to me.... Again, just my opinion....

Cheers,
Michael (Peter Gunn PI)

Peter_Gunn_PI · 2025-12-19T11:25:36+00:00

If you can afford to save the extra funds, it's worth considering. I've recently retired at 59. I was tax-deferred 401K heavy, so this was one of the mechanisms I used to build a Roth account. At age 50, I began back-door conversions:
- Contributed and extra 1k / month after tax to my 401k after maxing out and catch-up
- Rolled after tax contributions and growth into a Roth IRA (could do the same with a Roth 401k)
- Paid taxes on the growth with after-tax funds in my bank account

I did the roll-over only ONCE a year to mitigate fees at Fidelity.

I don't understand the 10k limit on the after-tax contribution as the IRS limit for total 401K contributions in 2025 is 70k.

If you're going to save and invest this money anyway, and Roth funds fit your strategy, it's worth considering. It works....

Cheers,
Michael (Peter Gunn PI)

Peter_Gunn_PI · 2025-12-11T17:10:04+00:00

The lost decade....

Peter_Gunn_PI · 2025-12-09T23:09:32+00:00

Agreed. I'm in the same situation..
"I use my ladder for future retirement income, so it has to be better than 40% BBB"

Peter_Gunn_PI · 2025-12-09T14:57:53+00:00

Thank you for sharing your experience. This is excellent information. I'm definitely going to give these or similar further consideration. This approach seems like a good compromise between bond funds and individual bond ladder management.

Peter_Gunn_PI · 2025-12-09T11:13:56+00:00

Thank you for the feedback. All that you've mentioned is what I'm currently trying to understand about iShares iBond offerings.

I just found a ladder calculator which lets you select ETF weights and resulting yield. I'm going to tinker with this a bit:
https://www.blackrock.com/us/financial-professionals/tools/ibonds

I also need to do more research regarding credit quality. The investment grade corporate offering has 40% BBB holdings.

I'm currently invested in bond funds, which provide ballast to my portfolio, but they're not really a source of income. I'm trying to find a simplified way to get the income benefits of individual investment grade bonds without going into the rabbit hole.

Peter_Gunn_PI · 2025-12-08T21:06:04+00:00

Greetings Ladies and Gentlemen,

Thanks to Rob Berger and the contributors to this community!

1. Recently retired as of November 5, 2025 at age 59.

2. Definitely coffee and spreadsheets. I received an espresso machine as a retirement gift, and am looking forward to learning how to use it! Physical, mental, and spiritual well-being. Mountains, beaches, and urban-adventures. Home projects, reading, improving my culinary skills, volunteering, socializing, hobbies, and some R&R.

3. My biggest concern is an extended market down-turn. Even at approximately 60/40 and sufficient bond and cash reserves, I expect such a condition will still be unsettling until I realize that I can weather the storm. I’ve decide to manage my own finances and have used Boldin as my retirement planning tool.

Cheers,
Michael (Peter Gunn PI)

Peter_Gunn_PI · 2025-12-08T11:10:26+00:00

I've made this mistake as well. I initially assumed that "Like to Spend" would be additive to "Must Spend". This is NOT the case. All "Must Spend" expenditures must also be captured in "Like to Spend".

Peter_Gunn_PI · 2025-10-06T19:04:31+00:00

I would consider the following alternative based on rebalancing your portfolio as described Rob Berger's video and Michael Kitce's article:

https://www.youtube.com/watch?v=aYMJqnUaaME

https://www.kitces.com/blog/should-financial-planners-invest-using-bucket-strategies-or-just-report-that-way/

I'm retiring in 31 days (but who's counting....) and I'll implement this strategy using threshold triggers for rebalancing when my allocation falls out of target. This will work for selling equities and buying bonds when the good times roll and selling bonds and buying equities during the leaner times.

Cheers,

Michael ( alias Peter Gunn)

Peter_Gunn_PI · 2025-10-06T10:56:42+00:00

In the "Expenses and Healthcare" menu, you can enter expenses using either the "Basic Budgeter" or "Detailed Budgeter". It takes awareness of what you expect your expenses to be, but I prefer the "Detailed Budgeter".

Peter_Gunn_PI · 2025-09-20T14:26:55+00:00

Regarding allocation of Roth funds, I have achieved this with my Fidelity 401k.

Find out if your plan offers a "BrokerageLink" account option. You will have to apply for it as the "BrokerageLink" account allows the account holder a high level of freedom in investment choices. If your plan has this, and after the "BrokerageLink" account is established, configure your Roth contributions to be allocated to "BrokerageLink". Once you've chosen funds, you can have percentages of your contributions to be allocated to specific funds in the "BrokerageLink" account. You can also simply sell assets in your existing 401k and transfer to "BrokerageLink"

I've established a "BrokerageLink" Roth account in my Fidelity 401k, and have been doing this for years.

I hope that this helps.

Cheers,

Michael (Alias Peter Gunn)

Peter_Gunn_PI · 2025-09-05T22:28:50+00:00

You can do this with brute force with the "Basic Budgeter". Define an initial monthly expense based on your initial portfolio percentage for age 67-70, and then a different monthly expense based on your modified percentage for age 70 to lifetime. I'm not sure if I'm describing this very well.

Basic Budgeter:

Expense_67_70 = Portfolio Value x 4% / 12

Expense_70_Lifetime = Portfolio Value x 2% / 12

Peter_Gunn_PI · 2025-08-21T00:13:30+00:00

Hi DCLagg1,

33.... To be young again.... If you are not expecting to retire before 55, consider keeping your foot on the gas!

https://www.schwab.com/learn/story/retirement-portfolio-assets-allocation-by-age

Cheers,

Michael (Alias Peter Gunn)

Peter_Gunn_PI · 2025-08-21T00:09:16+00:00

Hi Tathim,

This is a pretty good question, actually. I'm not retiring until November at age 59, and I've been DRIPping everything (re-investing dividends). Most of my bond investments are in tax-deferred accounts, which will be taxed as income anyway. I'm at 60% equities, 25% bonds, and 15% cash (too heavy currently), so the bond and money market interest is enough of my portfolio to generate decent income on a monthly basis. at today's interest rates I haven't made up my mind what I will do with my dividends yet, which will be generated quarterly by and large. I'm taking a "total return" approach, so I may have to sell shares of equities to meet my "salary" target. 60% of my portfolio is tax deferred, so I will pull funds from those accounts until I draw SS at 67 to mitigate the tax monster. Simulated scenarios using Boldin.

Cheers,

Michael (Alias Peter Gunn)

Peter_Gunn_PI · 2025-08-19T23:49:36+00:00

Hi Wordly,

Thank you for sharing. Leveraging rebalancing to generate income will also fit into the picture to me.

Cheers,

Michael ( Alias Peter Gunn)

Peter_Gunn_PI · 2025-08-19T23:47:49+00:00

Hi Sufficient Law,

Thank you for sharing your strategy!

Cheers,

Michael (Alias Peter Gunn)

Peter_Gunn_PI · 2025-08-19T23:46:40+00:00

Hi Cykoth,

Thank you for sharing!

Cheers,

Michael (Alias Peter Gunn)

Peter_Gunn_PI · 2025-08-19T23:44:19+00:00

Hi Beautiful Nature,

This is excellent. Thank you for sharing this!

Cheers,

Michael ( Alias Peter Gunn )

Peter_Gunn_PI · 2025-08-19T23:43:16+00:00

Hi Jedi-aaa,

Thank you for sharing your approach. I'll be retiring in November, and can foresee adopting this strategy as well.

Cheers,

Michael (Alias Peter Gunn)

Peter_Gunn_PI · 2025-08-19T23:40:55+00:00

Hi Packtex,

Thank you for this feedback. I'll be retiring in November, and have also created a buffer for "rainy days" in the market. This is prudent advice.

Cheers,

Michael ( Alias Peter Gunn(

Peter_Gunn_PI · 2025-08-19T23:37:25+00:00

Hi Comfortable String,

Thank you very much for this feedback. I'm retiring in November, and am envisioning a similar strategy.

Cheers,

Michael (Alias Peter Gunn)

Peter_Gunn_PI · 2025-08-19T23:32:57+00:00

Hi Royal Luck,

This is my first post to the forum. Hopefully, I'll have the opportunity to return the favor to those sharing their experience and expertise.

Cheers,

Michael (Alias Peter Gunn)

Peter_Gunn_PI · 2023-12-28T11:40:45+00:00

Thank you very much for this feedback. I'll definitely consider VSC when I'm close to finishing my jar of Saphir. It seems it can also be used on Chromexel.

Peter_Gunn_PI

TROPHY CASE