When I was 30 I had essentially nothing. Now I'm retired, and have less than you. But I'm comfortable and happy.Thanks to regular saving and market’s run-up as of late, I am a bit over $2.1m. This is invested in mostly VTI or equivalent, with ~$300k in AAPL. $1.5m in brokerage, $600k in 401k, Roth, HSA.
I am 30 with no plan to retire until my 50s or later, but I value being financially secure in case of job loss, health issues, etc. As such, I was thinking now may be a good time to add Total Bond (BND) or some cash and make that 10-20% of my portfolio. I contribute at least $4k/month toward my investments and do not spend extravagantly. I have a small emergency fund and a paid off home.
I have never had an official IPS, so I hoping for some insight as to whether I should start thinking more conservatively now that I have hit $2m, and “take some off the table”. I sleep well at night despite knowing a 50% reduction in my NW isn’t out of the question, but is that risk worth the reward in my situation?
I like having "money in the bank". But you may not need it. It is certainly something worth considering. I think having 10-20% in cash like things might not be a bad idea, and it might be a good idea. I like more than that, but that is me. Depends on what makes you happy, and what your goals are.
It is good you are thinking about it.
Statistics: Posted by dknightd — Sun Dec 01, 2024 9:03 am