I think I've seen 2 or 3 members say (or suggest) that they can or do live off their fixed incomes (SS, Pension, annuities, etc.) So, they feel comfortable with high % equities. I guess my question would be: Why swing for the fences when you don't even use (don't even "need") the extra money generated by equities? Is it for the next generation? If not, what do you plan to use the extra for? An elaborate funeral?
One of my personal back-ups is to be able to live from my fixed income. But I hope it doesn't come to that. Right now, I'm even taking MORE than my official RMDs. I use the extra for the fulfillment I planned for in retirement. So far so good. Having said that, I don't see that I need any more in the future EXCEPT to cover inflation which is one reason I DO invest in some equity positions.
Mentioned before, I see 2 potential black swans on the horizon: Excessive inflation and LTC - for an extended period. Other than one or both of those, I'll be hard pressed to "get rid" of my current stash (except through my will.)
Why swing for the fence is a great question, that I've asked myself a lot over the last decade, ever since I survived and even prospered during the 2008/9 crash.
At least part of the reason is I enjoy playing the game and it is a way of keeping score.
But at a practical level, I think why I invest in a variety of things (including risky assets) is to diversify and to increase safety. What does safety really means, is it simply stock market volatility. I don't think so
You mentioned two black swans. Inflation is truly scary for those who remember the 70s and early 80s. Long-term care is another great one. I'd add dementia, which would cause me to buy or give away too much money. Or more likely get taken advantage of by some scammer, like my grandmother was. I've joked if a
Anna Nicole Smith type befriends me when I'm 90, maybe I don't care if she takes millions as long as I die before she takes it all.
I see many other black swans. In my mind, virtually every asset class from Bitcoins, bonds, real estate, and equities is overvalued. I can make the case that any class's value could drop by 50% even 75% in a short (yearish) time frame. Bitcoin could easily go to zero. I also fear the great hack, which crashes the financial system and makes it really hard for me to prove I own financial assets or access them. I think hard assets like Real Estate or gold are a good hedge against this as would be owning an essential business.
I don't think we fully answer the consequences of climate change on the economy, but maybe owning farmland in Canada is a good hedge.
Now I don't have a solution to what happens if all the asset classes crash at once. I think that bonds are the most overvalued asset class, they don't help me increase my wealth. The only thing I think bonds are good for in today's environment is reducing volatility in a correction (a 20-30% market drop).
Now, none of these things really keep me up at night, I'm quite confident I'm fine financially.