What do you folks think about a dollar amount, or perhaps a bucket of 12 years' spending amount, in safe/safer assets vs an allocation percentage?
i.e. if you wanted $75k/year, you'd set 12 years aside of $900k (or maybe a round million to offset some inflation) and let the rest in the market vs say 75/25 on a $4MM base?
The reason I ask is that assuming the market does offer some returns, the assets will grow and rather than rebalancing back to a 75/25, that keeping something like that cool mil is "enough" on the safe side?
Ultimately I'm looking to write an IPS for those that follow after me once I'm gone and would prefer to keep it somewhat comforting as well as simple. Knowing so many are less fortunate than we are, it's hard to say (out loud) that "a million" isn't enough (in the given example) to cover you for a decent amount of time. Granted, if the assets grew to $10MM and market really tanked, it's hard to swallow losing 5MM vs "only" 3.
Perhaps there's a bucket amount that changes from one choice vs another? If you had $500k, you better stay AA vs if you had $5MM, you could choose one strategy over the other. With the lesser amount, you're really hurting out of a needed income vs with the higher amount, you would have to do some serious downsizing but it could be manageable.
i.e. if you wanted $75k/year, you'd set 12 years aside of $900k (or maybe a round million to offset some inflation) and let the rest in the market vs say 75/25 on a $4MM base?
The reason I ask is that assuming the market does offer some returns, the assets will grow and rather than rebalancing back to a 75/25, that keeping something like that cool mil is "enough" on the safe side?
Ultimately I'm looking to write an IPS for those that follow after me once I'm gone and would prefer to keep it somewhat comforting as well as simple. Knowing so many are less fortunate than we are, it's hard to say (out loud) that "a million" isn't enough (in the given example) to cover you for a decent amount of time. Granted, if the assets grew to $10MM and market really tanked, it's hard to swallow losing 5MM vs "only" 3.
Perhaps there's a bucket amount that changes from one choice vs another? If you had $500k, you better stay AA vs if you had $5MM, you could choose one strategy over the other. With the lesser amount, you're really hurting out of a needed income vs with the higher amount, you would have to do some serious downsizing but it could be manageable.