galeno
Recycles dryer sheets
Wife and I are 56 years old. We retired this year. I worry about inflation risk. My wife is more concerned with volatility risk.
We both agree about our rule of thumb: a conservative investor = age in fixed income; moderate = age-10; aggressive = age -20.
I'm extremely worried about the fact that our fixed income allocation has a negative real return = -0.9%. IMHO, this must be compensated with an aggressive allocation of 65% stocks.
My wife is more worried about a sequence of bad stock market returns forcing us to lower our annual withdrawals in the future. She wants 45% in stocks.
Should we go to 55% stocks?
A little background on us. We are not US citizens or residents. No future pension. We own our very luxurious home free and clear. It makes up 25-30% of our total net worth. We bought it in 2000. It has gone up 300% in nominal US$. We are in the top 1% here according to net worth. In the USA we'd be in the top 5%.
Our country, Costa Rica, used to be very inexpensive. It is now VERY expensive. More expensive than most parts of the USA.
We have 4 children living with us ages 27, 24, 19, and 17. This is common with many young people here. Average wages here are LOW. About 1/6th of average USA wages. The two oldest work. The two youngest are still in school.
We both agree about our rule of thumb: a conservative investor = age in fixed income; moderate = age-10; aggressive = age -20.
I'm extremely worried about the fact that our fixed income allocation has a negative real return = -0.9%. IMHO, this must be compensated with an aggressive allocation of 65% stocks.
My wife is more worried about a sequence of bad stock market returns forcing us to lower our annual withdrawals in the future. She wants 45% in stocks.
Should we go to 55% stocks?
A little background on us. We are not US citizens or residents. No future pension. We own our very luxurious home free and clear. It makes up 25-30% of our total net worth. We bought it in 2000. It has gone up 300% in nominal US$. We are in the top 1% here according to net worth. In the USA we'd be in the top 5%.
Our country, Costa Rica, used to be very inexpensive. It is now VERY expensive. More expensive than most parts of the USA.
We have 4 children living with us ages 27, 24, 19, and 17. This is common with many young people here. Average wages here are LOW. About 1/6th of average USA wages. The two oldest work. The two youngest are still in school.