Thank you Dave this is excellent. I was always thinking about the 3 bucket strategy but never thought of this “2 bucket” 90/10 growth/conservative mix approach. This could definitely work for me, I have high tolerance for risk and as long as I put aside 4-5 years cash and the remaining can still all stay in index funds earning more even though risks maybe a bit higher. I am about 2-3 yrs before retirement, currently still >95% stocks but really do not want to sell shares to convert to cash in this down market. So I will simply keep my new savings next 2-3 yrs as cash instead of buying more shares
this is fantastic. Thank you. This is pretty much my plan, although at 55 I am 10 years away from retirement, but the key is to have a solid CD ladder to not be forced to take money out of the market during the bear markets
If your client took his $1 million and put it into SCHD, he would receive a dividend yield of approximately 3.3% which for $1 million would be $33,000 a year, well above his $24,000 need. SCHD is in the top 100 dividend stocks with good dividend growth record in the S&P 500. Over the last five years, SCHD has grown its dividends by approximately 10% per year. Not only would your client have enough income, his dividends would grow over time, enabling his income to keep up with inflation.
If I had an income plan like that, I would need to find another financial planner to work with. Because he would not be on the same page with me. You can have the same return with a smaller standard deviation, making it easier to sleep at night.
My retirement plan is variable income. I keep 15 years cash plus a $2 million investment base (which generates only $52k income a year due to low interest rates). On up years (7 out of last 10), I move what ever is above $2 million investment base to the bank and increase my cash position. This year is a down year and it will probably take 2-3 years to recover before my $2 million investment base recovers. I live exclusively on my cash accounts until investment base recovers.
I'm in my late 40s and I'm more interested in investments that could set me up for retirement in my 60s, my goal is at least $2m, i want to buy a house for I and my kids.
Yeah, the investor only has S&P 500 for equity holdings? Kudos for not owning individual stocks, which you can't do in a lot of 401ks anyway, but no small cap? Missing out on the small cap value premium there. And quite right, too much home country bias.
The thing I have about your videos and all others I watch, the terminologys you use. it would make alot more sense if I knew what they meant as it would make everything else fall into place. Yes you need to use the proper terms just like and other professional would use the words of his industry.
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Yes. -Warren Buffett
Always quality content.
Thank you!
This caught my eye and Anyone relying solely on the S&P for retirement?
Thank you Dave this is excellent. I was always thinking about the 3 bucket strategy but never thought of this “2 bucket” 90/10 growth/conservative mix approach. This could definitely work for me, I have high tolerance for risk and as long as I put aside 4-5 years cash and the remaining can still all stay in index funds earning more even though risks maybe a bit higher. I am about 2-3 yrs before retirement, currently still >95% stocks but really do not want to sell shares to convert to cash in this down market. So I will simply keep my new savings next 2-3 yrs as cash instead of buying more shares
Yes, please more videos like these for retirement… thank you.
More to come!
this is fantastic. Thank you. This is pretty much my plan, although at 55 I am 10 years away from retirement, but the key is to have a solid CD ladder to not be forced to take money out of the market during the bear markets
If your client took his $1 million and put it into SCHD, he would receive a dividend yield of approximately 3.3% which for $1 million would be $33,000 a year, well above his $24,000 need. SCHD is in the top 100 dividend stocks with good dividend growth record in the S&P 500. Over the last five years, SCHD has grown its dividends by approximately 10% per year. Not only would your client have enough income, his dividends would grow over time, enabling his income to keep up with inflation.
If I had an income plan like that, I would need to find another financial planner to work with. Because he would not be on the same page with me. You can have the same return with a smaller standard deviation, making it easier to sleep at night.
My retirement plan is variable income. I keep 15 years cash plus a $2 million investment base (which generates only $52k income a year due to low interest rates). On up years (7 out of last 10), I move what ever is above $2 million investment base to the bank and increase my cash position. This year is a down year and it will probably take 2-3 years to recover before my $2 million investment base recovers. I live exclusively on my cash accounts until investment base recovers.
Thanks for these videos, very help full!
You are very welcome!
I wonder if there are additional investment strategies retirees should consider
Don't large public companies already diversify their revenues globally?
I'm in my late 40s and I'm more interested in investments that could set me up for retirement in my 60s, my goal is at least $2m, i want to buy a house for I and my kids.
Very informative, as usual! Thanks
its all good an well that he has high risk tolerance but does he need it? at 2.4% withdrawal it does not make sense to have too much risk.
Yeah, the investor only has S&P 500 for equity holdings? Kudos for not owning individual stocks, which you can't do in a lot of 401ks anyway, but no small cap? Missing out on the small cap value premium there. And quite right, too much home country bias.
really very very helpful, thank you!!
Glad it was helpful!
If you are Warren Buffett, yes, but most people will have more of a nuanced approach.
The thing I have about your videos and all others I watch, the terminologys you use. it would make alot more sense if I knew what they meant as it would make everything else fall into place. Yes you need to use the proper terms just like and other professional would use the words of his industry.