The retirement-planning specialist discusses whether the 60/40 is broken, annuities, and the challenges of creating one-size-fits-many solutions for retirement.
I retired early at 55. Moved to Thailand to control my expenses. Currently I live very comfortably under 30K. I'll do this until 65 and move back to the states. In the mean while, I'm doing ROTH conversions up-to 24% tax bracket. All my expenses are paid by three dividend ETF's I bought upon retirement. JEPI, DGRO and SCHD. No Annuities for me.. 5 year CD's are paying over 5% now... why lock up my funds?
I am thinking of moving to Asia with my wife to cut our living expenses while we can still move and travel. My biggest issue is which Medicare policy at my age of 66 . I am looking how to best guarantee our retirement income with less stress about the ups and downs of the equity market. Too often a couple has the wealth but not the health to enjoy their savings after years of labor under what I call modern slavery
Bonds tend to move in secular trends that span decades. The last great bull market in bonds started in 1981 after a roughly 30 year bear market that began on the early 50s. Before that, there was a bull market that started shortly after the end of the First World War and ran to around 1950 or thereabouts. The most recent bull market probably ended in 2020. If historical trends hold, we are in the early stages of what will be a slow-moving bear market that might last the remainder of my life. (I'm in my late 50s.) I'm not saying people shouldn't own bonds. But I am saying that bonds are unlikely to generate either meaningful real/inflation adjusted income or significant capital gains over the foreseeable future. So, I'd adjust their place in a portfolio accordingly. Dividend paying stocks, real estate and non-USD denominated securities are looking much more attractive.
@@lmilostr I strongly agree. Where stocks are concerned, I agree with Warren Buffet that most investors will not be able to beat a cheap S&P 500 index find over their lifetime. Having a cheap index fund as the core of the stock part of your portfolio is never going to be a bad move.
How to generate income for retirement? To buy real estate! All this financial system may not survive till once retirement. Getting harder and harder. They can change any dividend at ani given time. How about domino effect when most of the banks falling. Brokers, managers, and their custodians. If you own real estate no 3rd party needed between you and your assets....!
Dividend paying stocks and funds - just taking the dividend. Bonds and bond funds. Social security. Pensions, if you are lucky to have one. Rental properties.
