B) Alternatively he can create a TIPS ladder that generates an inflation adjusted income that is approximately the 1% of his total portfolio that he believes he needs for living. Rest in stocks.sponge,Facts:
Life Status: Retiree![8-)]( "Cool")
Time Horizon: 15 yrs.![:)]( "Smile")
Major Goal: Growth![:greedy]( "greedy")
Risk Tolerance: High![:shock:]( "Shocked")
Some of the principles we espouse are general limits that may be able to be modified when the other aspects of a particular investor are also considered. My questions are asking for two of these general limits, not advice that I should follow without considering my other specifics, which I will add to your answers to determine a possible course of action.
Questions:
1. Given the facts, what equity allocation limit would you recommend for an equity/bond ratio?
2. Within your recommended equity limit, what equity allocation % limit would you recommend for scratching an itch?
A) "Time Horizon: 15 yrs."
15 years to what? I have no idea what do you mean by this 15 years.
B) You should keep at least 10 years of expense in fixed income/cash. Beyond that, you can keep the rest in stock.
KlangFool
Statistics: Posted by dcabler — Mon Jan 20, 2025 5:27 pm