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By 4% rule I am right there where I want to be but I actuall
Posted on: May 5, 2025 at 12:11:30 CT
TigerFan92 STL
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y developed a spreadsheet for tracking and investing.
The high level summary is have 2 year's income in money markets (avg 2% return in normal times) (8%)
Have 2 more years in safe but higher return like certain bonds (8%) figure 4% return
Have 2 more year in safer dividend company index type company figure 5% return (8%)
For a total of 24% in safer investments.
Thought is that markets almost always recover over any 5-6 year period. If not, I will have a lot of runway to do some part time work if I have to.
The remaining 76% I will invest aggressively. I have been averaging over 10% for quite a while and I realize these have been good times. But there is no reason to fall behind the market.
Whenever the market has a good year, move that year of income (4%) over to the first grouping to keep the 6-year safety net. If it is a down year, hold and I go from 6 years of reserves to 5, and so on if I have to.
Of course the spreadsheet has inflation added in, so it isn't just 4% every year but you get the idea.
We also have 30% of our net worth in rentals so that also spreads out the risk
Edited by TigerFan92 at 12:14:02 on 05/05/25
The high level summary is have 2 year's income in money markets (avg 2% return in normal times) (8%)
Have 2 more years in safe but higher return like certain bonds (8%) figure 4% return
Have 2 more year in safer dividend company index type company figure 5% return (8%)
For a total of 24% in safer investments.
Thought is that markets almost always recover over any 5-6 year period. If not, I will have a lot of runway to do some part time work if I have to.
The remaining 76% I will invest aggressively. I have been averaging over 10% for quite a while and I realize these have been good times. But there is no reason to fall behind the market.
Whenever the market has a good year, move that year of income (4%) over to the first grouping to keep the 6-year safety net. If it is a down year, hold and I go from 6 years of reserves to 5, and so on if I have to.
Of course the spreadsheet has inflation added in, so it isn't just 4% every year but you get the idea.
We also have 30% of our net worth in rentals so that also spreads out the risk
Edited by TigerFan92 at 12:14:02 on 05/05/25
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By 4% rule I am right there where I want to be but I actuall - TigerFan92 STL - 5/5 12:11:30