Portfolio Asset Allocation

I just got to ask, why are you asking people about your future finical plans that you don't know? Is there not a bank where you live? If you turn on your tv for any length of time you will most likely see an investment firm advertise. Those people make mega bucks to be right about stuff like that. 

I know, none of my business but just wondering????????

@MichaelC374013,Your Asset Allocation is an important factor in planning retirement income. However, before anyone should comment on whether a 70% equity/30% income approach will be the solution for you and your spouse's needs, additional information is needed. First, do you and/or spouse participate in a defined benefit (monthly pension) plan? If so, are you and/or spouse vested? If vested, have you and/or spouse obtained an estimate of the monthly benefit that has accrued? Will both be eligible for SS Benefits in 5 years (age 62)? If you and spouse do not participate in a defined benefit plan, will your defined contribution plans (403 B and 401 K ) be your source of income (monthly, quarterly, semi annual, or annual distributions)? If so, have you developed an estimate of the income you need? Will you be increasing that amount from year to year by a percentage for inflation (i.e., 2.5%, 3.0%, etc.)? If your defined contribution plans will be used for income, you may need to adjust your asset allocation so your portfolio(s) will produce more income rather than capital gains which you cannot depend on. Capital gains are great when they are there, but when not there, you may need to sell some of your assets to obtain the income you need. You current equity allocation is focused on growth which has performed outstanding over the last 5 years. The S&P 500 has just about doubled since June 2020. Nobody knows if that will continue going forward. Keeping an allocation in the S&P 500 (aka the market) will outperform 80 to 85% of investment managers at almost no cost. Based on the info you have provided, I believe you are savvy and understand equity will provide the greater return over the long run (at least 5 to 10 years). However, if you are depending on your portfolios to generate income, you will need to evaluate your tolerance for risk. If more average in risk tolerance, you will need to reduce your equity exposure to maybe 60% or even 50%. On the other hand, if you and your spouse do not need much income from your defined contribution portfolios and are OK with about 1 to 2% yield, you may consider increasing your equity exposure to maybe 75% or even 80%. This is the best general info I can provide which is useful for you as well as other readers. Be careful with all the advisors trying to gain you as a client. Many charge 1% or more of assets and do not outperform the S&P 500 over the long run. They may have a good year or two which earn them bragging rights, but most of the time their performance is less than the S&P 500. Hope this helps.

Great move shifting from “head in the sand” to intentional planning especially with retirement only 5 years away.

Your approach to Strategic asset allocation already shows strong discipline: viewing all accounts as one unified portfolio, keeping a diversified 3-fund structure, and maintaining growth exposure while preparing for retirement income needs. The 56/14/30 mix is fairly balanced for someone still planning a multi-decade retirement horizon, though I’d personally keep a close eye on sequence-of-returns risk as retirement gets closer. Holding 1–2 years of cash/safe reserves alongside the portfolio can make that equity exposure much easier to tolerate during market downturns. Overall, this looks thoughtful, practical, and much more structured than many portfolios I see from investors nearing retirement.