I believe HousePain's question is one of philosophy/psychology rather than economics. With a 4 mil portfolio, a pension, no debt, modest spending needs and wants, and SS soon all added, there is no way that money will be a limiting issue in your retirement as long as you don't do crazy things with your portfolio. HP is well beyond the point of critical financial mass which is the point at which over the long term your portfolio generates returns in excess of your ongoing expenditures so that the portfolio principal value does not decline over time. In short you have nothing to worry about in terms of longevity risk and the only possible problem is that you will become demented and foolishly squander your assets of fall prey to financial sharks posing as expert financial advisors.
You have chosen a very low risk asset allocation--only 30% equity and the rest in supposedly safe fixed income. If you primary aim was to maximize portfolio returns you would have chosen more equity. You have the ability financially to take volatility risk and have chosen not to. This suggests that you are not a risk taker by nature and do not tolerate volatility easily. Be sure to have some TIPS in your bond allocation as well as a short/intermediate average term bond duration to safeguard against long term substantial inflation which is the main risk to a bond dominated portfolio. Otherwise you have nothing to worry about and perhaps it's time to consider focusing on spending and enjoying your considerable assets rather than preserving them untouched unless of course that excess security gives you pleasure.
Garland Whizzer
You have chosen a very low risk asset allocation--only 30% equity and the rest in supposedly safe fixed income. If you primary aim was to maximize portfolio returns you would have chosen more equity. You have the ability financially to take volatility risk and have chosen not to. This suggests that you are not a risk taker by nature and do not tolerate volatility easily. Be sure to have some TIPS in your bond allocation as well as a short/intermediate average term bond duration to safeguard against long term substantial inflation which is the main risk to a bond dominated portfolio. Otherwise you have nothing to worry about and perhaps it's time to consider focusing on spending and enjoying your considerable assets rather than preserving them untouched unless of course that excess security gives you pleasure.
Garland Whizzer
Statistics: Posted by garlandwhizzer — Thu Mar 28, 2024 1:31 pm — Replies 28 — Views 2811