The Trinity Study on Safe Withdrawal Rates did not assume a bucket strategy nor a rolling ladder of individual bonds, just the annualized return of the investment classes which is achievable with funds rather than individual stocks and T-Notes. Funds are much easier to manage and, as noted upstream, are less headache for the executor of your estate.Why not???
Bucket strategies and ladders of individual Notes/Bills are largely a psychological comfort that isn't supported by a solid research paper (that I'm aware of) proving they are superior to a fund in the long term (10+ years). Now at 87, you might be thinking "I don't have a long term," but as @dbr said, the older you get the less aggressive you want to be, so that might mean less stocks (perhaps even 0%), and within the bond class shorter term durations rather than intermediate term. You might also increase your cash buffer beyond just a year or two of expenses in cash (despite the cash drag on performance, it will often dampen the volatility of stock & bond fluctuations).
Statistics: Posted by bonesly — Tue Sep 10, 2024 1:11 am — Replies 6 — Views 533