For those of you who have FIRED and reached 40x+, what are you doing with your resources as you age? Longevity risk and the need for keeping a 40x+ balance decreases with age. What are the alternatives to bequeathing a large estate? How do you balance the risk of outliving your resources with enjoying life and living generously?
DW and I have decided we would rather give our money away while we're alive instead of leaving a large estate. That way we get to enjoy seeing our children and charities use it for good.
I will keep working while I enjoy it, but we are setting some parameters now so I can ER when desired and we don't store too much in the barn. One issue we are concerned with is longevity risk. DW has 100+ in the family tree. I'm not so fortunate and likely will be moving on a decade before her.
The thought is that as we age, our budget will decrease and (hopefully) our portfolio will grow.
At the beginning of each age band we plan to rebalance the portfolio, create a 10 year budget, and give away any amount over the expense multiple. It's possible we may change this to 5 year segments, especially after we hit 70.
Age Band Expense Asset Allocation
From To Multiple Stocks Bonds Cash
49 59 45 60 35 5
60 69 40 55 40 5
70 79 35 45 50 5
80 89 25 40 55 5
90 99 20 30 65 5
100 X 10 20 75 5
I'm interested in reading what others in a similar situation are doing. I'd also like to read some other ideas of how to balance the risk of outliving one's portfolio with enjoying life and living generously.
If we could work it out, we'd die with just enough to pay for the burial having lived a full life and seeing what we have been blessed with put to use.