First off, $3M is not "HNW". It's just average wealthy. I'm fortunate to be substantially better off than that, but the HNW club starts at a minimum of two commas. If he had $10M, 90/10 AA would be fine. If I were your dad, I'd want a minimum of $1M in safe assets to cover LTC, medical treatments, etc. not all of which may qualify for medicare/insurance. I did not expect my mom, who had a heart attack at 60, to live into her 90's -- but she did, and late in life expenses were substantial. Going to a more conservative AA for the duration of your dad's life if prudent. 60/40 is not hiding in a bunker. If things work out well, you can increase when he passes. You haven't missed out on much. But if you need to spend down, in a down market, at a very high AA, it will be painful. There's an old saying in aviation: "It is better to be on the ground wishing you were in the air - than in the air wishing you were on the ground."Can you clarify? He's 78 and has over 3 million. Also, "his life life expectancy" is decreased. Why do think he wouldn't be able to cover expenses for the rest of his life with a 100% stock allocation? I'm not suggesting that, but theres a very real chance of this being totally fine. "General consensus around here" really doesn't matter. Even a 50% haircut followed by a rebound may be enough, with social security and not doing the things that 80 year olds do like skydiving and going on expensive vacations and such.I would significantly up his fixed income to ensure all needs are covered in his lifetime. 60/40 is about as agressive as I'd go. I'm not sure what you mean by "4 funds". "3 funds" is the default boglehead option, and general concensus around here is that Vanguard places too much weight on international (and that international bonds are unnecessary). I would use high quality fixed income - i.e., short term treasury index and CD's as opposed to Total Bond. or, in the alternative, a 10 year TIPS ladder to fund all essential spending.
Statistics: Posted by Outer Marker — Sat Sep 28, 2024 6:52 pm — Replies 17 — Views 1308
