I am in decisional paralysis on how to position Vanguard portfolio moving forward as I face retirement. As I have tried to educate myself more, I realize I have a mish mash of investments purchased on whims over 30 years. "Oooh, that one performed well, I'll buy some" and smash cut to the present and I have a Rorschach of investments. Recently stumbled upon this sub and like the diverse and knledgeable insights. Like many, I am a journeyman investor who has been diligently put away $ but lacks a certain expertise and am trying to avoid major mistakes.
My situation: Married, 58, double income. Wife will retire in 10 years. I will retire in mid-late 2027 with a guaranteed life pension of 137k per year (with COLA's). My wife will receive the same amount for her life if I predecease. I consider this like a bond, so I have been aggressive with the rest of my $.
I have app 4 million in investments between three brokerages beyond the pension with an 80/20 equity/bond split. Will have to shoulder healthcare for family but that will ease over time once I qualify for medicare and kids are out of school. I considered the “maximize dividends” route but have settled on continued long term growth.
My questions concerns my VG acct, where 930k sits divided between 2 Roth acts, a brokerage acct and an SEP for my wife, with the majority is in the SEP and Brokerage since we exceeded the Roth income limit some time ago. I have been aggressive due to my guaranteed pension. It is as follows between all accounts:
S and P/Total Stock market index funds: 486k
International index: 15k
Small Cap: 30k
Growth: 87k
Income producing: 30k
Tech ETF: 20k
Target 2035 fund 43k
Value (index and Windsor funds): 172
What type of rebalancing would you consider for better diversification, and in what percentages? I don’t mind being aggressive, but I don’t want to be stupid either. I appreciate your insights.