Contrarian
Dryer sheet wannabe
- Joined
- Nov 6, 2010
- Messages
- 24
Am playing with the portfolio changes available via firecalc and was wondering if following may make sense. The situation is that firecalc recommends a 70% allocation to equities for 20 year survival of portfolio and even higher beyond 20 years, at 4% SWR. The problem is just don't feel comfortable with such high allocation for equities. Even 50% psychologically difficult. Just don't have the faith in the equity premium that once I had. Have come to trust investment grade or higher bond fund interest payment. So what to do? One consideration I thought is to make small cap value a higher percentage within my equity allocation, which then seems to allow a lower percentage of equity allocation in overall portfolio for same survival rate of portfolio. Be curious if others have noticed or implemented, or any thoughts. Noted too, with firecalc on the bond side, no options for hybrid bond funds like multisector, or high yield, etc. Not sure how that may affect optimal equity allocation too. Anyway, any feedback welcomed.
Bob
Bob