Hello dbr,A wise position, which deals effectively with the issue as far as I am concerned.Since WB is not a person of modest means , I would give no credence to a 90/10 recommendation. I can deal with the recommendation by absolutely ignoring it.Yes, but we also seem to have evidence that the suggestion is for people with modest wealth and not in a trust.I understood he was recommending this allocation for the trust which will be inherited by his wife. There is probably so much money in it, I imaging the 10% in cash would cover more than what she would need for living expenses for the remainder of her life. In my case, 10% of my portfolio is not enough to cover my living expenses for the remainder of my life. So I am sticking with 60/40.
But the whole thing is one of these piecing together of bits of conversation and scraps of commentary one place or another. There is no evidence of an intent on the part of Mr. Buffett to have given a considered discussion of advice for modest retirees regarding asset allocation. Even so, I personally think if he were to offer such a discussion the recommendation would be 90/10 as stated. What the details would be I can't say.
People who cringe at telling people to go 90/10 in retirement are just going to have to deal with it.
You have a pension.
If you didn't have a pension what would your AA have been all the years?
Would you have allocated more to stocks to increase total return?
I would assume it would have been necessary.
Statistics: Posted by rossington — Sat Apr 27, 2024 5:06 am — Replies 83 — Views 6878