Looking for advice. My spouse and are 53 and FI or close to it. I plan to work (full time/ part time) until around the age of 60 both for security of getting my kids through college and to maintain health insurance. I have lately been listening to “Risk Parity Radio” with Frank Vasquez and have taken a special interest in “safe withdrawal rates” and just starting to transition my long standing portfolio ( 90% growth stock, 5% bond, 5% cash) towards a “Risk Parity- Golden Ratio”. But before I go too far I wanted to get some opinions. Is it reasonable to start a gradual transition during this intermediate phase, when I will not be needing the 5% SWR, but want to protect my portfolio from a big market draw down in the next 7 years? Is there a point in gradually doing this over 7 years, to be more aggressive the initial few years and gradually taper down?
Also 25% of my portfolio is in brokerage with Vanguard mutual funds and the other 75% are 401K, IRAs and Roths. Should I adapt this gradual transition across all accounts? If I did this in my brokerage it would result in a huge capital gains if I shift funds into Risk parity funds. I am thinking I would do this mainly in my retirement accounts with the added benefit being the income interest given off would be in my non taxable accounts. Perhaps leave my brokerage alone and treat that as a % my large cap growth and use the retirement accounts to swap into Long Treasury, Gold, Managed futures and Small Cap. Am I on the right track? Is there an episode on Choose FI or Risk Parity Radio that discusses this transition period?
Thanks for any opinions/advice
