Friday, July 24, 2020 10:01:19 AM
Currently I'm looking at a senile asset allocation. Allocate initially equally between stocks, gold, cash; Pick a SWR such as 2.4% (0.2%/month), set stock to auto reinvest dividends and just draw the SWR each month/quarter/year from whatever asset is the highest value at the time and otherwise nothing else to do.
The drift in weightings provides some indication of which asset fed you the income over time, which varies according to start date. Started in the 1970's and again from 2000 and its mostly been gold. Started in 1980 and it was mostly stock.
In each of those cases after 20 years there had also been modest real gains on top .. around 2% real, which might have supported additional 'top-slicing' for the one-off expenses/costs. So could still leave sufficient for late life care home fees/costs.
The drift in weightings provides some indication of which asset fed you the income over time, which varies according to start date. Started in the 1970's and again from 2000 and its mostly been gold. Started in 1980 and it was mostly stock.
In each of those cases after 20 years there had also been modest real gains on top .. around 2% real, which might have supported additional 'top-slicing' for the one-off expenses/costs. So could still leave sufficient for late life care home fees/costs.
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