Thanks everyone, these are all very interesting posts. Summarizing: Risk management.
But I have a key follow up question regarding that risk: Has anyone seen a chart that gives an AA to future yearly X spend value? So like 25X = 60/40.
Let me clarify that question in an example:
• Say I'm retired with no pension/etc.
• Say I am 60 and am hoping to live 100. So 40 yrs of nest-egg withdrawing.
• Say I have 32X in retirement savings, so if I spend $100k a year I have $3.2mil on tap. Say taxes and Social Security (SS) is figured into this "on tap" number. I know factoring in tax and SS gets complicated, but go with my example here.
• Is there a chart that has say 10X = 80/20 AA portfolio (stock/bonds notation).
• And for 25X = 60/40.
• And for 30X = 40/50.
• So on, so forth. I'm just throwing darts here, but you get my example I hope.
I haven't seen any chart like this but would love to. This chart would then clearly delineate what risk/reward you NEED to take. So using the above metrics in the example, if you have $40mil, you can easily have a 0/100 AA. And if you have $400K, you have to take risk and maybe go with 90/10 or something.
I have tried to search for this type thing but the term "X" is unfortunately an ambiguous term to search for. Anyone seen a chart?
But I have a key follow up question regarding that risk: Has anyone seen a chart that gives an AA to future yearly X spend value? So like 25X = 60/40.
Let me clarify that question in an example:
• Say I'm retired with no pension/etc.
• Say I am 60 and am hoping to live 100. So 40 yrs of nest-egg withdrawing.
• Say I have 32X in retirement savings, so if I spend $100k a year I have $3.2mil on tap. Say taxes and Social Security (SS) is figured into this "on tap" number. I know factoring in tax and SS gets complicated, but go with my example here.
• Is there a chart that has say 10X = 80/20 AA portfolio (stock/bonds notation).
• And for 25X = 60/40.
• And for 30X = 40/50.
• So on, so forth. I'm just throwing darts here, but you get my example I hope.
I haven't seen any chart like this but would love to. This chart would then clearly delineate what risk/reward you NEED to take. So using the above metrics in the example, if you have $40mil, you can easily have a 0/100 AA. And if you have $400K, you have to take risk and maybe go with 90/10 or something.
I have tried to search for this type thing but the term "X" is unfortunately an ambiguous term to search for. Anyone seen a chart?
Statistics: Posted by MoneyIsTime — Wed Jan 15, 2025 5:31 pm