daylatedollarshort
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Feb 19, 2013
- Messages
- 9,358
If I’ve got inflation covered and how is that making anything more risky? The loss of potential gains? People take risk to build enough to safely retire.. once there isn’t it prudent to reduce exposure?
That does not seem to be the prevailing sentiment here, but we did that. We have a small allocation to stocks and the rest invested along the lines of matching strategies. At even a zero real return we could have a safe withdraw rate of 3.33% at our ages (100 / 30 years = 3.33%) and we should be able to up that as 10 year TIPS are .44% real return today, plus I have other investment like a fair bit of 30 years TIPS I bought when rates were higher, some 2% or more. But I like optimizing expenses and looking for easy side income streams, so we really will be closer to zero WR. We just get a big kick out of looking at what we could spend, even though we won't, as we think we live pretty well now.
One of the ideas that changed our investment strategy was me reading the book Against the Gods: The Remarkable Story of Risk and the idea of diminishing marginal utility.
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