Hi guys.
Just looking for some basic advice here.
I'm probably going to FIRE in about a year and for the first time since about 17 y/o will be REDUCING savings... yikes.
So for the past few decades I've mostly just saved and invested fairly "aggressively." This was a mix of buying individual stocks with mixed success and a bulk in a mix US and global index funds, a little bit of bond exposure and whatever "low" fee index fund work actually provided (I could go on about trying to get work to change 401k options... but what do you want to do ).
I'm thinking that in preparing to enter the "withdrawal" stage, stability seems way more important.
My gut was to do this:
VTI 40%
VXUS 30%
BND 20%
BNDX 10%
and then just rebalance each year.
I know the bond market is about to crash. I know the market is at all time highs. Yes that stresses me out... but there's always SOMETHING, right?
In addition to that, keep 2 years in a money market/ally checking account and if the market is "down" I consume that, if the market is "up" I sell shares at the beginning of the year to cover annual costs.
This is part of my plan to "reduce the stuff I think about" so I can focus on my family and whatever hobbies/personal projects I want to do . I really enjoy investing, but I think once I am dependent on the income it'll become a source of stress and I want to try looking at account balances every few months instead of every day . I also need a way to control my emotions from making stupid decisions when/if the next "bad market thing" happens.
Do you guys have practical experience with this?
Thanks!
Just looking for some basic advice here.
I'm probably going to FIRE in about a year and for the first time since about 17 y/o will be REDUCING savings... yikes.
So for the past few decades I've mostly just saved and invested fairly "aggressively." This was a mix of buying individual stocks with mixed success and a bulk in a mix US and global index funds, a little bit of bond exposure and whatever "low" fee index fund work actually provided (I could go on about trying to get work to change 401k options... but what do you want to do ).
I'm thinking that in preparing to enter the "withdrawal" stage, stability seems way more important.
My gut was to do this:
VTI 40%
VXUS 30%
BND 20%
BNDX 10%
and then just rebalance each year.
I know the bond market is about to crash. I know the market is at all time highs. Yes that stresses me out... but there's always SOMETHING, right?
In addition to that, keep 2 years in a money market/ally checking account and if the market is "down" I consume that, if the market is "up" I sell shares at the beginning of the year to cover annual costs.
This is part of my plan to "reduce the stuff I think about" so I can focus on my family and whatever hobbies/personal projects I want to do . I really enjoy investing, but I think once I am dependent on the income it'll become a source of stress and I want to try looking at account balances every few months instead of every day . I also need a way to control my emotions from making stupid decisions when/if the next "bad market thing" happens.
Do you guys have practical experience with this?
Thanks!