A risk factor for me is taxflation. I have enough in bonds to cover x years of spending, the rest is in growth (stocks). Ideally those bonds (drawdown/spent over time) need to pace inflation after costs and taxes so that they preserve purchase power. They also need to be safe. Lending to the state (buying treasury bonds) has the benefit that the state can always print money or raise taxes rather than default. Bond interest however can be taxed, with taxes being paid on what amounts to inflationary uplift. 10% inflation, 10% bond yield, 20% tax on nominal 'gain' and the bonds have lost 2% purchase power. To reduce/eliminate that risk I like bonds being in tax efficient accounts/options.
For the growth/stock side, dividend/income is just being reinvested. As dividends reinvested is less tax efficient than no dividends just capital growth I seek to minimise such dividend tax risk. Something like 50% 2MCL (FT250 2x ETF that is a fully collateralised total FT250 gain swap that pays no dividends) as the 2x stock, combined with 50% split 60/40 between BRK-B and gold, neither of which pay dividends, that collectively helps reduce/eliminate dividend tax risk whilst potentially providing comparable or even better rewards than had 100% long stock (FT250 1x ETF) been held.
With that 2 basket approach (bonds basket for drawdown, stock basket for growth) then if started with 50/50 in both of the baskets and bonds are spent over 20 years whilst stocks accumulate over 20 years then there's a reasonable chance that the stock value at the end of 20 years is the same or more than the inflation adjusted total 100% start date amount (longevity/heirs covered). Which is the same as a safe 2.5% inflation adjusted withdrawal rate, starting at 50/50 stock/bonds, ending at 100/0 stock/bonds, average 20 year 75/25 stock/bonds. With the added benefit that if stocks do perform well then they might be profit taken periodically to supplement income (unexpected spending). The relative expansion of stocks over time (50 start, 100 end, 75 average) is also akin to having (cost) averaged into stocks over time.
Having sufficient 'safe' bonds to cover spending requirements is a great comfort as you know that your 'wage' is (relatively) safe, stable and regular.
