First, let me acknowledge I know none of us really know if we are/were overfunded until we hit the dirt nap. That said, I am curious if/how/what those of you who may have some confidence in being overfunded do as it relates to managing the designated excess? If as an example all the calculators say $1M at a 60/40 AA gives you 100% probability of funding your desired retirement and you have $2M, do any of you separate the extra $1M and run it as a separate portfolio doing any of the following?
- Go extremely conservative and put in cash to just "blow the dough" or pump up the early giving/charity?
- Go relatively conservative and put it in fixed investments to minimize loss/volatility since you "won the game"?
- Let it ride in equities for legacy reasons or just to run up the score because you can?
- Just keep it in the mix with your first $1M, same AA, just pulling a lower WR?
- Some hybrid of the above, other?
Again, I know it's a personal and "depends" and I can see all scenarios being a valid way to approach any excess. I'm just scratching an itch here...
- Go extremely conservative and put in cash to just "blow the dough" or pump up the early giving/charity?
- Go relatively conservative and put it in fixed investments to minimize loss/volatility since you "won the game"?
- Let it ride in equities for legacy reasons or just to run up the score because you can?
- Just keep it in the mix with your first $1M, same AA, just pulling a lower WR?
- Some hybrid of the above, other?
Again, I know it's a personal and "depends" and I can see all scenarios being a valid way to approach any excess. I'm just scratching an itch here...