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On a more serious note, I believe I am close to no longer being a subscriber. I am rethinking things as I am now an old fart and seven years into retirement and truthfully new money is heading mostly if not all to Vanguard and mostly to Wellington and Wellesley. Even my RMD strategy is changing once I get there. I will still have a Fidelity taxable portfolio but it will not have long term significance beyond a years worth of LTCG money if needed.
On another note I would recommend to keep it as easy as possible and find someone else as a backup. My dad recently had a fairly incapacitating stroke and he kept everything very much to himself to the point that he forgot the password on his PC and my Mom does not know it. No she has to discover the financial situation on top of dealing with his illness... not a good situation.
On another note I would recommend to keep it as easy as possible and find someone else as a backup. My dad recently had a fairly incapacitating stroke and he kept everything very much to himself to the point that he forgot the password on his PC and my Mom does not know it. No she has to discover the financial situation on top of dealing with his illness... not a good situation.
Yup, I hear you and that is part of my motivation. Really won't be a lot that needs to be done. Most of the money will just sit there as in probably all of the money will just sit there. The money will flow into Vanguard on auto pilot and RMD's into the bank on auto pilot. She would have more than enough and if medical cost needed to addressed that could be done with minimal effort. the other fund companies would just sit if I went down.
i always say one day 100% wellesley and i am done.
Yeah and we still have my age 70 or 68 SS benefit to kick in. Seven years from now you will be a different investor. Wait for Marilyn to start asking why!
remember she was a widow once left on her own and lost 1/2 her savings with bad advice.
so wellesley and an immediate annuity with a check in her account every month may be the final plan down the road..
Thats not the why I was suggesting she would ask. I was thinking more along the lines what do we have all of this money for when we could be spending more of it now. Just think you are using a 2.8% draw down rate and not applying it to your full portfolio. Without a significant downturn will you have the same, a tad more or quite a tad more in seven years? You might be surprised how easy it is to kick up the spending level.
We are planning on using a variable spending plan based on each may 1st balance which will set the years max.
Down years will be based on 4% of the actual balance or less 5% than the previos years max.
Whether we spend that much remains to be seen. I don't want to stray off topic in to withdrawal methods but i do like discussing that stuff.
No, no, and no. This discussion is right on topic and this post of yours is right on spot with the discussion about Contrafund. One of the advantages and draws of Contrafund was it's previous less than 1.00 beta which helped make it a solid equity holding for your retirement years. It added predictable stability for your draw down rate. With its now over 1.0 beta and performance that is exceeded by other growth funds is it worth the risk v reward for a retired bloke needing stability for drawdowns?
while a fund with a high beta means it is riskier than its index in the context of a portfolio with other funds it may not mean much.
it may be only 10% of the overall portfolio. one fund really should not be a total investment , not even wellesely.
Sure, but one of the appeals of Contrafund was that it was a good choice during that accumulation phase that you could also keep during the draw down phase. As the thread comments indicate there may well be better choices today. It is currently 10 Percent of the growth fund and perhaps most importantly 20% of the Growth and Income fund. It is that role in the Growth and Income fund that could change.
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