brewer12345
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Mar 6, 2003
- Messages
- 18,085
Term Life
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The Life Insurance company reports to the "Medical Insurance Bureau"......so when I apply for insurance now, the underwriter sees that, and it's automative turn-down...even for "no exam needed" policy. Once I'm examined by a doc, I'm told company X will "re-look" at me but of course, that's ONLY if the doc offers some positive news.
Maxed out with no-underwriting insurance thru work. There IS a bigger policy available, thru work but that is subject to underwriting. I dunno if underwriting standards are more lenient cause it's a group policy, but I imagine when they see "protein in urine" at the Medical Insurance Bureau.... that's not gonna make them happy.
Portfolio
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YES, i'm trying to be as conservative as can be. Trying to make it as passive an income-stream as possible. Here's where I request more critique, and opinion:
$4mm:
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1.)Yearly return of 2.75%
2.)Assuming 3.5% increase in yearly withdrawals.
3.)A portfolio that is rather low risk, and rather passively managed. Ie money put into CD's, Vanguard Wellsley, wellington, etc where I put the money in, and pray for 40 years of 2.75% returns, and 3.5% yearly inflation for expenses.
Is that realistic? Too conservative? Too wishful?
Keep in mind, this is 5 years from now. No crystal ball, but hoping interest rates for savers are higher than today so please factor that in.
Thanks
I will say it again: start playing with firecalc to get some idea of what historical returns from various portfolios look like. A 60% equity, 40% fixed income portfolio would get you solid 40 year survivability with a 3.x% withdrawal that increases with inflation. That mix is readily available in low cost, passive form by simply dumping the money into one of the many good balanced funds out there that have low costs (Vanguard Balanced, wellington, etc.) and all your DW would have to do is leave the money on autopilot and simply take the annual withdrawal every year. This is as simple and low cost as it gets and the learning curve would be not steep at all. More importantly, it will keep you and your survivors from doing anything godawful stupid with the money, which all of us are unfortunately prone to doing.
Are you a candidate for a transplant?