leevs11,This is what I'm getting at. How do I figure out if it's worth the additional risk or not at my age?OP,
1) Any simple math calculation will show you that you are less than 10 years from reaching 33X.
2) Anyone with basic common sense will tells you that it is too risky to be 95% stock when you are less than 10 years from retirement.
3) Anyone with some basic calculation will show you that it is not worthwhile to take the risk of 95% stock when you are less than 10 years from retirement. You can get there with 70/30 safely.
4) It is not worthwhile to take the risk of the 25% additional stock. You have more to lose than gain.
KlangFool
It is not worth it. And, it has nothing to do with your age. It has to do with your portfolio size and saving rate. You will reach 33X in less than 3 years. It is too risky to be 95% stock.
Why would you take the risk of 95% stock when you only gain less than 1 year to reach your 33X number?
Your portfolio size is at 25X
Your saving rate is at 1.5X
At an average 5% return rate, you will reach 33X in 3 years
At An average 8% return rate, you will reach 33X in 2+ years
At an average 10% return rate, you will reach 33X in 2+ years.
Starting Net Worth2500%
Annual Savings150%
Years
Annual Return Rate123
5.00%2775%3064%3367%
6.00%2800%3118%3455%
7.00%2825%3173%3545%
8.00%2850%3228%3636%
9.00%2875%3284%3729%
10.00%2900%3340%3824%
KlangFool
Statistics: Posted by KlangFool — Tue Apr 30, 2024 6:24 am — Replies 28 — Views 1843