"I'm retired and I have no income other than my investments."You make a good point and your math is correct. But my bonds are municipal bonds which are tax exempt at the federal level and I live in a state with no state income tax. The dividends and interest are more than I need to live on, and if I were 100% equities, after taxes it would be a wash, for now. At a certain level it becomes primarily about taxes. So the question becomes whether it's worth paying more in taxes in exchange for a probable greater long term expected gain. That's a bit risky. Mathematically, going all equities would probably work out better for me, but at what point does it shade over into greed and unnecessary risk? I'm retired and I have no income other than my investments. At 50/50 even a severe stock market crash would not affect my lifestyle. The price I pay is giving up some yield on the bond side. But like you, I sometimes question the wisdom of my approach.I don’t get bonds at 100x. The S&P 500s yield is 1.2%. It’s all qualified dividends. At 25x, you’d need a 4%. At 50x, you’d need a 2% yield. And 100x, you’d need a 1%. And the S&P 500 yield has typically grown much faster than inflation.I'm also about 100x and SS will be close to the max benefit but my AA is 50/50. It's people like you who make me wonder if I'm being too conservative.VTSAX/Cash 99/1
>100 X
69, retired, never owned bonds. SS at 70(close to max) will largely cover basic expenses. Living the dream....
I get having some bonds on the side for a couple of years of expenses, but I struggle with 50/50 when you can live off of the dividends.
You do not have a pension or SS income?
"But my bonds are municipal bonds which are tax exempt at the federal level and I live in a state with no state income tax."
Same here but we are well aware of the 'costs' of choosing these funds in order to minimize taxes.
Statistics: Posted by smitcat — Fri Jul 05, 2024 9:18 am — Replies 442 — Views 64390