>put $500,000 into a fund with avg annual return of 10%>sell 8% per year >retire >Keep an emergency fund of 6 months expenses in case of down yearswhy wouldn't this work?
>>62345323>10% annual returnWhat funds would offer that?
The ability to go a few months without withdrawing anything does actually make your safe withdrawal rate go a lot further. It's the bottom of crashes that you want to never touch. So if you like, doordash and uber for a few months while shit's in the dumps you can seriously improve your ROI.
>>62345323if you have 500k to just dump into a fund you're already set for life without that fund
>>62345348STRC, lol
>>62345409Let me guess its some covered call etf that loses its value while having high dividends?
>>62345323Bro, congratulations, you just achieved basic investing literacy and are smarter than 90% of people on this board. Now go do it. Have fun.
>>62345353yup. Or yah know, do what I do, and just kill expenses in hard times. No more takeout for me, 4 dollar meals for the family for a bit. I don't have 500k, but same premise.
>>62345355Can anyone actually retire on $500k in burgerland tho?
>>62345568In a small town and just surviving
When you have to sell in a bear market it all goes to shit. Dividends are much less volatile even when a crash happens, so you can 3-4% alone never selling shares, but 5%dividend/premium and 5% growth on average is very unlikely to have to take a paycut during a drawdown.
>>62345626what are some good funds that give 5% dividend/premium and 5% growth?
>>62345668Not many, so you mix something like dgro or schd with a little gpix on the side. Divo/qdvo com to mind though
>>62345323>>put $500,000 into a fund with avg annual return of 10%>one in a mutiple generation crash then depression happens>the end
>>62346367Doesn't it always go back up tho?
>>62345439It’s Saylor’s ponzi backed by Bitcoin
>>62345323Because average doesn't mean it gives 10% every single year. During bad years when the returns are negative you will decimate your stack with your constant withdrawal and it will run out faster than you'd expect
>>62347209wouldn't an emergency fund and maybe part time job help mitigate that enough?
>>62347217Of course. Youre probably bored in retirement anyway so you can find something to do that isnt soul crushing. Get your pfas levels checked and its very likly you would benefit from doing plasma donations.
>>62345323>open coinbase>put 100k in polkadot>pays 3% APR >bull market returns for alts >DOT goes to 10 dollars>your principal is now making 30% while you have 900% unrealized gains >never sell
>>62347455Wtf is this
>SORRY GOY WE WENT BANKRUOT AGAIN FOR THE 6TH TIME KEK>m-my money sir....>NO REFUNDS BUT DEBTS STAY FOREVER EVEN IN BANKRUPTCYHahhahahahhahahaHahahhahahahahahaAhahhahahahahaha
>>62348462http://polkadot.com Noob
>>62345323>Live a shitty middle class lifeNo thanks.
Jumping into this thread to ask an investment related question.So my husband is about to come into 250K USD and the only thing he wants to buy with it is bonds. Treasury bonds. I mean, I know it's not the worst possible thing, but I was hoping to convince to set aside like 1-5K of that money to do something fun/enjoyable.Do you think this is a reasonable request? Is there a way to phrase it better?
>>62349642>set aside like 1-5K of that money to do something fun/enjoyable.I assume he is highly cautious if he is going with t-bills. But might as well have at least a little bit in tech stocks imo, as a hedge against AI taking your jobs if nothing else. If the "bubble" burst then all good you can keep working and make more money, if AI does take over at least the tech stocks should boom and give you some extra cushioning.
>>62349658The 250K is tech stocks vesting.Any recommendations on phrasing for spending a small amount of this on something fun/enjoyable/not-at-all-profitable?
>>62349658I think she meant like vacation or something
>>62349664Oh, lmao. Nvm, I cant help there
>>62349664We just had a vacation so I don't think that's gonna work. I would just like him to spend some of the money on something fun/enjoyable for himself. Like... idk... a new PC or laptop or car parts... something fun? But he's like "well if you want me to have complete control over how it's spent then I'm going all in on T-bills". And again I have nothing against T-bills or other cautious investment vehicles but I think life is short and you should live a little, yeah?
This strategy will fail because an 8% withdrawal rate is roughly double the historically safe limit (4%), exposing you to complete portfolio depletion within 10 to 20 years due to sequence of returns risk, inflation, and taxes.While a 10% average annual return sounds like it can easily cover an 8% payout, averages are a mathematical trap in retirement.
>>62349674tbills are retarded. buy sp500. it has international exposure. it's diversified. it captures all the companies that actually make significant amounts of money and have significant amount of cash on hand. there's zero reason to hold tbills unless he's like 70 years old. thats why he's retarded. mortgaging your future so he can feel 'psychologically safe' about the number not going down every once and a while. literal smooth brain who can't control his emotions. tell him to put it all in sp500 and delete the app and not touch it for 30 years.
>>62345323because you don't have 500k
