Does your current bond/equity allocation + oas/cpp provide enough passive income in distributions for your retirement lifetsyle? If so, why would you veer from the plan?
Not quite. I am still counting on capital growth and some drawdown of investments over time. No kids, so all I worry about is outliving my savings.Does your current bond/equity allocation + oas/cpp provide enough passive income in distributions for your retirement lifetsyle? If so, why would you veer from the plan?
Very true. That is why I am asking opinions from posters here. You have put forth good food for thought. Thanks.If you go looking for conflicting opinions on your portfolio, you will find them. Did you really think the advisor would tell you to 'carry on'?
Thanks. I guess taking on added risk that comes with higher returns is reasonable for me at this stage in my life. That is why I still have 60% equity in my portfolio. I plan to reduce this over time.If the pensions ARE indexed, then inflation is not a worry either. The income from the investments would only buy the 'extra' lifestyle above what the pensions can buy. Assuming these are nice-to-have but not necessities, you should also take on the added risk that comes with higher returns. Your downside is protected, and you have a chance of more spending money.
Thanks. What I do for my estimations is to run numbers via monte carlo simulation type calculators like: T. Rowe Price Retirement Income Calculator http://individual.troweprice.com/pu...esearch/Tools-&-Resources/Retirement-PlanningAs that article points out, no article can take account of all the different people's situations.
..... but most people with a house and decent CPP have very little to worry about.
Buy and hold is perfectly designed for volatile markets. Without volatile markets there would be absolutely no way I could find good prices to buy stock and absolutely no way my wife and I would have been able to become millionaires 10 years after graduating university.The stock markets are too volatile and will remain this way for a long time in my opinion. This makes buy & hold strategy very dangerous at least for me.