Post by Admin on Oct 7, 2021 22:31:10 GMT -5
An older relative retired around 2002 and told me he saw several financial advisors and they want to charge him 1% and he really doesn't trust any of them. Markets are volatile and he wants a stable LT simple portfolio and all his money is at Vanguard. Based on the amount of money he had, he needed about 3.5% yearly withdrawal, and wants aconservative portfolio. I told him he can be in just 35-40% stocks and the rest bond and to invest in just 2 funds VWIAX+VCCGX. If he needs more money, just sell shares from both funds at equal amount of money. Just keep several thousands in the bank, use your SS and distributions from these 2 funds and if you require more just sell shares from both at 70/30 (VWIAX+VCCGX).
In the first 10-15 years, this guy called me every 2-3 years and thanked me how I saved him so much money and how it works well.
Below are the results(link)including 3.5% annual withdrawal, and they show that KISS investing and spending worked very well. This portfolio was able to support the 3.5% and grow at 6.77% (including the 3.5% withdrawal).
Below is a copy of the above link as with performance from 2002 to 2019 (almost 20 years) + XRAY of the portfolio with about 40% stocks & 60% bonds(VWIAX bonds are mostly high-rated Corp).
In the first 10-15 years, this guy called me every 2-3 years and thanked me how I saved him so much money and how it works well.
Below are the results(link)including 3.5% annual withdrawal, and they show that KISS investing and spending worked very well. This portfolio was able to support the 3.5% and grow at 6.77% (including the 3.5% withdrawal).
Below is a copy of the above link as with performance from 2002 to 2019 (almost 20 years) + XRAY of the portfolio with about 40% stocks & 60% bonds(VWIAX bonds are mostly high-rated Corp).