Key insights
- An individual plans to shift to an aggressive 80/20 equity/fixed income portfolio upon receiving Social Security benefits, citing high risk tolerance due to income exceeding expenses. While personally relevant, this single investor's plan has negligible direct influence on overall U.S. equity market movements. The post reflects individual retirement planning rather than a broad market trend.
When I claim SS in 8 years or so my wife and I will suddenly have another $5700 monthly coming in (mine+spousal). That WELL exceeds what we need to live on by $2700/month which I'll put in a vacation account.
I'm thinking that at that point our risk tolerance is through the roof so why not transition from a fairly conservative portfolio to a 80/20 go-for-broke hell-bent-for-leather Aggressive Growth allocation. Keeping just enough Fixed Income to rebalance into the dips and a 2 year "oh crap" cash balance.
We can live completely comfortably while watching the equities do their wild gyrations and make us money over the next 20 years & rebuild a semi-depleted portfolio that we eventually bequeath to our non-saving kids at about their retirement ages. They're fiscal morons - but they're still our children. Can't gripe too much though, they came by it honestly since I didnt really start saving for retirement until 45.
I can't see a downside to this, even when we hit the assisted living age and there's a sharp bear market the sale of the house will cover that.