Personal Capital Retirement Report Card

Below is a recap of my Personal Capital retirement “report card” via their free online tool. Based off my profile, the projected growth rate of my portfolio looks appropriate, and my asset allocation is efficient. Currently Personal Capital only recommends that I consider adding slightly more (about 4%) to International stocks and even less than that to Alternatives (1%). “Alternatives” would be classified as real estate, gold, energy and commodities. I’m actually surprised they’re recommending this, as I am roughly 10% in REIT’s, which is fairly high in comparison to other recommendations. In fact, very few people are even in REIT’s.

Personal Capital Asset Allocation as of May 2017

Below is an overview of where my portfolio currently stands, in terms of asset allocation. You’ll see that I am approximately 90% in stocks and 10% in bonds, which is where I think all Millennials should be in their retirement planning. We have tons of time on our side so I think a Millennial long-term retirement investor should be somewhere between 90-100% stocks/equities.

In terms of my stock breakdown, I feel I am just right with an 80/20 split between U.S. stocks and international stocks. A lot of financial advisors out there usually recommend an international portfolio of 30-50%, but I am perfectly comfortable at 20%. I don’t see myself going much higher than. I’ll certainly never go over 30%. Warren Buffett has been quoted, along with a number of other well known investors, to simply invest in the S&P 500 and match the market, because rarely will you ever beat it. I am trying to match the market and diversify at the same time (as we all should). Buffett is leaving his estate invested 90% in the S&P 500 and 10% in short term bonds.

Personal Capital Asset Allocation
Personal Capital Asset Allocation as of May 2017




Personal Capital Retirement Planner Forecast

As of this moment in May 2017, Personal Capital is giving me an 88% chance of meeting my retirement goal. Personal Capital says I am in “good shape” for retiring at my desired age of 55, which is still 20 plus years away. These calculations are based off what I have saved thus far, what I save annually, social security estimates, and what I anticipate to be able to live off of when I retire.

Obviously my numbers are projections and its hard to accurately predict exactly what my wife and I will need to live on and retire at 55, which is approximately 20 years away for both of us. But based off the high percentage we currently save (roughly 20% on our income) and the fact that our house should be paid off in the next 10-15 years, I can closely predict how much we would need monthly to comfortably live on in retirement. Once you remove those two expenses alone from our monthly budget, mortgage and retirement savings, there isn’t a whole lot else left that is a large expense, or that isn’t very controllable, with the exception of healthcare.

The Personal Capital retirement forecast predictor is giving me an 88% change of meeting my goal income at retirement, which is great to see. Now I know I am pacing nicely towards a possible retirement at age 55. The forecaster predicts I will have approximately 40% more monthly income than I desire.

Personal Capital Retirement Fee Analyzer

Currently I am only paying a minuscule 0.18% in retirement plan fees. The benchmark that Personal Capital sets for retirement fund fees is 0.50%, which I am trouncing and I am proud of it. I take retirement fund fees very seriously and I am always looking at that when factoring in my investments. I currently invest in 12 different mutual funds and ETFs and have a fund fee of only 0.18%, so its not like I am in one S&P 500 index fund and that is why my expenses are low. No, I am in several very low cost index funds.

Personal Capital Retirement Fee Analyzer
Personal Capital Retirement Fee Analyzer




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