Hi all,
I'm in a bit of a dilemma regarding asset allocation & my future. I turn 50 this year and was hoping for a bit of advice from the wise out there.
I just hit my first $1MM in NW and am still working. I currently have a pretty high-stress (but high-paying) job, and live in a high COL city which would require about 1.6MM @ 4% to support my current lifestyle. If I moved to a cheaper city I could retire now, but psychologically I'm probably a couple years away from pulling the plug or ratcheting down to a more mellow life. That said, I can feel the pull to at LEAST start slowing down due to the stress of my daily grind.
I was still in debt until about 10 years ago, so my nut is relatively new and I'd hate to see my NW fall drastically as I'm so close to FI. I'm currently at 75/20/5 stocks/bonds/cash, but I'm wondering if I shouldn't drop to 65/35 or even lower equities (60/40?). The younger FIRE kids are always talking about keeping stock allocations relatively high in order to finance a longer retirement, but I'm skeptical I need that much risk. Jim Collins says stay in 100% equities until FIRE, then 75/25. Did you all carry this position until you FIRE'd??
BTW, I have no kids so don't have any legacy concerns. While I keep working, I do plan to continue to invest. For all I know I'll work another 10 years if I can find a better work/life balance, but who knows??
Any thoughts would be helpful, thanks!
I'm in a bit of a dilemma regarding asset allocation & my future. I turn 50 this year and was hoping for a bit of advice from the wise out there.
I just hit my first $1MM in NW and am still working. I currently have a pretty high-stress (but high-paying) job, and live in a high COL city which would require about 1.6MM @ 4% to support my current lifestyle. If I moved to a cheaper city I could retire now, but psychologically I'm probably a couple years away from pulling the plug or ratcheting down to a more mellow life. That said, I can feel the pull to at LEAST start slowing down due to the stress of my daily grind.
I was still in debt until about 10 years ago, so my nut is relatively new and I'd hate to see my NW fall drastically as I'm so close to FI. I'm currently at 75/20/5 stocks/bonds/cash, but I'm wondering if I shouldn't drop to 65/35 or even lower equities (60/40?). The younger FIRE kids are always talking about keeping stock allocations relatively high in order to finance a longer retirement, but I'm skeptical I need that much risk. Jim Collins says stay in 100% equities until FIRE, then 75/25. Did you all carry this position until you FIRE'd??
BTW, I have no kids so don't have any legacy concerns. While I keep working, I do plan to continue to invest. For all I know I'll work another 10 years if I can find a better work/life balance, but who knows??
Any thoughts would be helpful, thanks!