Chance of a Lifetime
AS ANOTHER YEAR draws to a close, I sometimes wish I could slow time down. As I grow older, it feels like life is moving way too fast. Maybe the reason is that I���m enjoying life more. I���ve always felt my life has gotten better as I���ve grown older.
Even though we���re having to deal with the fallout from COVID-19, I like my life. I wouldn���t want to turn back the clock and be young again. I enjoy being 70. It���s a good age to be if you have your health and financial independence.
My wife and I are at a time in our lives where we finally have the freedom to do the things we want to do. Both of our families are doing well. They don���t need us as caregivers or babysitters. It���s our turn to live our lives the way we want to.
It���s an opportunity that comes once in a lifetime for many people. We���re determined to take full advantage of it. I���m not going to jeopardize it in any way. That���s why I have an investment portfolio of 40% stocks, 55% bonds and 5% cash. Some may argue a portfolio like that is too conservative. But I���m thinking that you only need to reach financial freedom once. Why risk losing it?
I get that inflation is a major threat to our financial security. But an investment portfolio like ours should have enough stocks to ward off that threat. According to Vanguard Group���s asset allocation models, a portfolio with a similar mix of stocks and bonds had an average annual return of 8.2% from 1926 to 2020. Even if returns are somewhat lower going forward, we should be just fine.
At this point, I feel our most valuable commodity isn���t our stocks and bonds, but our health. That���s what I worry about. Without our health, we wouldn���t have the freedom to do the things we want to do.
Even though we���re having to deal with the fallout from COVID-19, I like my life. I wouldn���t want to turn back the clock and be young again. I enjoy being 70. It���s a good age to be if you have your health and financial independence.
My wife and I are at a time in our lives where we finally have the freedom to do the things we want to do. Both of our families are doing well. They don���t need us as caregivers or babysitters. It���s our turn to live our lives the way we want to.
It���s an opportunity that comes once in a lifetime for many people. We���re determined to take full advantage of it. I���m not going to jeopardize it in any way. That���s why I have an investment portfolio of 40% stocks, 55% bonds and 5% cash. Some may argue a portfolio like that is too conservative. But I���m thinking that you only need to reach financial freedom once. Why risk losing it?
I get that inflation is a major threat to our financial security. But an investment portfolio like ours should have enough stocks to ward off that threat. According to Vanguard Group���s asset allocation models, a portfolio with a similar mix of stocks and bonds had an average annual return of 8.2% from 1926 to 2020. Even if returns are somewhat lower going forward, we should be just fine.
At this point, I feel our most valuable commodity isn���t our stocks and bonds, but our health. That���s what I worry about. Without our health, we wouldn���t have the freedom to do the things we want to do.
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