At the moment it's about two-thirds in tax-deferred accounts and I would suspect that would continue for the foreseeable future. That said, we've built up enough of a cushion we won't completely drain our taxable account if we go for a 20% downpayment....though given our conservativeness, we'll most likely push hard to pay down any mortgage since that's just a guaranteed interest loss.Desert wrote: ↑Tue May 31, 2022 3:27 pmJoypog, I can't remember if you mentioned this already, but is most of your portfolio in taxable or tax-deferred accounts?
The first decision is percent equity. I like the 50% equity allocation at your age. You could perhaps go as low as 40%, but below 40% seems too conservative for the number of years before you'll need the money. I think the house down payment should be kept primarily in cash/STT (and/or i Bonds if you have at least a year before buying). In other words, I'd separate this savings allocation from the ITT allocation that will remain a part of your portfolio after the house purchase.
If you really wanted a happy wife, you'd save cash for the down payment and invest your entire long-term portfolio in Vanguard's Wellesley fund.
I agree about shooting for a minimum 50% allocation (up to 55% if I count REITS). My wife and I need to try life on the "wild" side (HA, its nothing compared to to the Bogleheads on Reddit!) and then if it's too exciting, we can always drop it down to a 40% AA. Conversely, if we're comfortable with stocks at that level we might let it slide up the AA by natural growth (and as my pension accrues years of service time).
I keep seeing people talk about Wellesley, I need to look into that. I'm certain there are a plethora of lazy / simple portfolios that would be great for us...but I'm a bit too curious to just settle on someone else's AA, even if it were to be better than anything I might home brew.