Asset Allocation For Near Retirement

How is their health and what age are you talking about 59.5 or like 70? If they are only 60 and they are in good health then at least one of them will pay likely live past 80, so you are talking about still needing 20 years of income. What percentage of their portfolio do they need to survive?

Personally, and I'm still young so that means little, my plan is to have about 1 years income in like a money market and keep the rest well invested. Rarely does the market not rebound in 2 years. So if you have 1 years salary in a cash emergency fund you will most likely recover very quickly any losses incurred with little changes.

I'm currently 80/20 in my allocation. I don't plan to change that till I think I'm at 5-7 years to retirement. Then I'd probably switch to 60/40. Or whenever my portfolio gets big enough that I've "won the game" I'll adjust it sooner to protect the gains.

Once I'm ready to retire, I'll probably go 40/60. However, I haven't really put alot of thought/research into this. At that point, it's probably worth getting some professional advice (not necessarily management).

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What are your plans for reducing risk close to retirement age and to generate retirement income?

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Slowly switch to fixed income securities. But I will never leave the market overall.

I am 67 years old and have thought about this quite a bit of the last several years. Finally arrived at 50% stock mutual funds and 50% bond mutual funds. Been happy with the decision so far.