Adams, Our shop has been helping people plan for retirement for over 30 years....so, some tips to consider: It's not how much money / investments you will have...it's how much you need is the most important factor. First, start with you current expenses. Fixed (mortgage, auto, etc...those expenses which are necessary), next, variable expenses (all other). One you get a number, add approx 20% on top of it...for those items which occur - just living.
Next, what are the sources of assured income you will receive during retirement? Pension, Social Security,etc. Once you know the amount you can "count on", many people then have a remaining shortfall. Whatever the monthly shortfall will then determine the appropiate allocation of you remaining cash and investable assets. Do NOT place all investments in a stock - bond portfolio. Should be obvious based on current swings in the markets. When we plan for an investment portfolio, we use a combination of institutionally managed (fee basis) portfolio of domestic, international and emerging market stocks, bonds and cash. This allocation is generally equal to approx 60% - 70% of the retirment portfolio. Then a mix of publically registered non-traded Real Estate Investment Trusts (current dividends range from 6% to 7.24% partically tax sheltered) not to exceed 20% of the portfolio. Remaining balance may include investing in a pool of first trust deeds of commercial real estate (current dividend in 9% - 10% range). Finally, we like to add 5% - 10% into energy.
If a portfolio is only stocks and bonds, the safe income taken should only be in the 4% range. A protfolio as mentioned above, could provide in the 5% range. Both with potential appreciation to keep up with inflation.
Hope this helps
Aubrey