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FYI: STOCKS MARCH ever higher, portfolios get ever fatter and yet the conundrum facing investors remains the same. We have no idea what will happen next to share prices—and no reliable way of figuring it out. Consider: Regards, Ted https://humbledollar.com/2019/07/balancing-act/
Nice article which pretty much mirrors my own perspectives and much what I do now being in retirement.
The way I govern my withdrawal rate, from my portfolio, with me now being in retirement is to take a sum of no more than about one half of what my five year average annual return has equaled. In this way my principal grows over time which helps to offset inflation. And, as principal grows so does the distribution.
My asset allocation of 20% cash, 40% income and 40% equity works for well, for me, as I have ample cash on hand to meet the unexpected plus play a special investment position (spiff) from time to time if felt warranted, ample income generated from my income area to more than meet my retirement distribution needs, and ample growth coming from the equity area to grow my principal over time.
One of the big reasons for my success is that I and my wife have lived conservatively staying well within our means, saved and invested for our future anticipated needs. Plus, we received some gift and inheritance transfers as my family for the past three generations believed in passing some assets forward thus helping make life better for our kids than we had it ourselves. My parents did this for me as well as my grandparents did the same for my parents. And, my great grandparents did this for my grandparents. With this, I'm charged with doing the same.
Have a great weekend ... and, I wish all "Good Investing."
Comments
The way I govern my withdrawal rate, from my portfolio, with me now being in retirement is to take a sum of no more than about one half of what my five year average annual return has equaled. In this way my principal grows over time which helps to offset inflation. And, as principal grows so does the distribution.
My asset allocation of 20% cash, 40% income and 40% equity works for well, for me, as I have ample cash on hand to meet the unexpected plus play a special investment position (spiff) from time to time if felt warranted, ample income generated from my income area to more than meet my retirement distribution needs, and ample growth coming from the equity area to grow my principal over time.
One of the big reasons for my success is that I and my wife have lived conservatively staying well within our means, saved and invested for our future anticipated needs. Plus, we received some gift and inheritance transfers as my family for the past three generations believed in passing some assets forward thus helping make life better for our kids than we had it ourselves. My parents did this for me as well as my grandparents did the same for my parents. And, my great grandparents did this for my grandparents. With this, I'm charged with doing the same.
Have a great weekend ... and, I wish all "Good Investing."
Old_Skeet