My Asset Allocation

 

My IRA may have recently filled with the Vanguard Utilities ETF (VPU), but it is not the majority of my nest egg. Want to make that clear. I also want to repeat that I am definitely not offering investment advice on this blog. I’m just showing what I am doing. As you can see, not much of a risk taker in retirement. Things might look different if I had a job to fall back on.

These are ballpark numbers. I’m valuing the long-term TIPS based on their inflationary gains from when I bought them many years ago, and not on their current market value (which is considerably higher). One small bond matures this month (1.17% real yield), a large bond matures in 8 years (1.75% real yield), and the rest mature in about 20 years (2.13% real yield).

The savings bonds are mostly I-Bonds also earning an average weighted real yield of about 2%. There are some EE-Bonds as well, which are guaranteed to double if held 20 years. The earliest purchases in 2010 are halfway there.

The savings account is earning 0.3%, thanks to the pandemic and the relentless long-term decline in interest rates.

I’m basing the value of my home on current Zillow estimates. Subject to change during the next earthquake. I do live in the Seattle area. This downside risk to my nest egg is not trivial.