Example retirement portfolios

HeyYeah

I really like the Reader Portfolios in Investors' Chronicle because I'm relatively new to investing and I like to see portfolio examples and expert analysis, However I don't want to subscribe as I only read that part of the magazine, and it's £180 pa for the online version. 

Has anyone seen anything similar for less money? Does anyone subscribe and find it useful? 

bostonerimus

I don’t see why a retirement portfolio needs to be that different from a portfolio you have while working if you are taking a total return approach to income. Maybe you’d want to hold more cash or add an annuity - this isn’t rocket science.

dunstonh

There is no requirement to run a portfolio differently in retirement compared to accumulation.   However, many people do drop a notch or two on the risk scale when they retire.     Some people like a yield strategy in retirement.  However, that went out of fashion after the credit crunch but with yields increasing again, it could come back into play.

HeyYeah

True - any example portfolios would be interesting plus analysis of them.

bostonerimus

55% US equity index,  30% non-US equity index, 10% US bonds (I'm in USA) and 5% cash, DB pension, rental income and state pension to come. I am mortgage free on my home and the rental. I live off the DB pension and rental income and so have an aggressive portfolio. The portfolio produces around 2% to 3% annual dividends which are reinvested.  I have a lot of money at risk, but as I get my income from the DB pension and rental I can take that risk. I also don't need to worry about a drawdown rate. 

I think an equity heavy portfolio with potential for some dividends ie large cap combined with a cash buffer, an annuity (now that rates are creeping up) and state pension is something to think about. The difficulty will be inflation so some frugality and budgeting will help.

Albermarle

HeyYeah said:

True - any example portfolios would be interesting plus analysis of them.

A lot of this stuff is defined by your risk tolerance. History would tell you to have a high % of equities, but most people do not like the roller coaster ride that comes with this.

If you have a sensible portfolio that suits you before retirement then probably not a great need to change anything when retired.
I think most of the marketing of 'retirement portfolios' is probably for people who have never given a moment thought to their pension , until retirement looms very close.

This guy is informative generally about investments/pensions.
Golden Butterfly Portfolio vs Pinwheel Portfolio – Which is Best? (pensioncraft.com)