"If you have enough money to fund your retirement, there is no need for a buffer of cash and fixed income. You might have to sell a little stock when it's cheap sometimes, but you'll also sell some when it's expensive. Over the long run you'll get the average valuation, and get a positive real return you wouldn't get with the cash and fixed income."

You've mentioned this number of times - you discount sequence of returns risk?

Sequence of returns not an issue "If you have enough money to fund your retirement".

How much is enough? If you have to ask... ;-)


Buffett (2014): "But I've told the trustee to put 90% of it in an S&P 500 index fund and 10% in short-term governments. And the reason for the 10% in short-term governments is that if there's a terrible period in the market and she's withdrawing 3% or 4% a year you take it out of that instead of selling stocks at the wrong time. She'll do fine with that. And anybody will do fine with that. It's low-cost, it's in a bunch of wonderful businesses and it takes care of itself."

He also said "Vanguard would be fine, and Berkshire would be fine...I wouldn't want to be touting Berkshire".

Berkshire Hathaway FAQ

---

Contact Shrewd'm
Contact the developer of these message boards.