You get the concept that portfolio size provides safety.Buffett’s 90/10 portfolio is for his wife to live on. I’m guessing her 10% bonds alone pump out 8-digits in interest a year. At that rate who cares if the stock market takes a plunge?
How about my 40x 80/20 portfolio as compared to a 30x 60/40? Which do you think is safer?
My portfolio is "only 33% bigger" but is now 6x less likely to fail than the more conservative 60/40 AA.
40x 80/20 0.2% failure (50 year retirement, 20 years until Soc Sec, Soc Sec provides 50% of income)
30x 60/40 1.3% failure (50 years retirement, 20 years until Soc Sec, Soc Sec provides 50% of income)
I took less risk than someone investing more conservatively and I have nearly 2x the average lifetime spending.
Statistics: Posted by abc132 — Tue Jun 25, 2024 12:26 am — Replies 38 — Views 2987