The duration of your retirement looks a tad optimistic. 75+50=125. However, planning for the worst (!) scenario is a basic risk management method.
It is true that with a 100% stocks allocation your expected return will be the highest. The risk is that you don't have infinite flexibility in expenditures. The "commitment to a percent of portfolio withdrawal strategy" in practice may be impossible to stick to. I'm not even talking about the psychological aspects (remaining 100% stocks when you see your assets depleting and age 125 is still far away), but about being able to survive drawing a fixed percentage of a depleted portfolio.
It is true that with a 100% stocks allocation your expected return will be the highest. The risk is that you don't have infinite flexibility in expenditures. The "commitment to a percent of portfolio withdrawal strategy" in practice may be impossible to stick to. I'm not even talking about the psychological aspects (remaining 100% stocks when you see your assets depleting and age 125 is still far away), but about being able to survive drawing a fixed percentage of a depleted portfolio.
Statistics: Posted by Thesaints — Sat Mar 09, 2024 7:21 pm — Replies 1 — Views 47
