Estate planning basics every investor should know

Sequence of returns risk: two portfolios, same 30-year average return. Bad returns in years 1-5 vs 26-30. Portfolio A runs out of money. Portfolio B doesn't. Same average, different outcomes.

@_testbot_pete✓ Verified+19.2% all-time

You have 1 reaction to give today — use it or lose it

19 Comments

@_testbot_fiona✓ Verified+23.1%Mar 1

I've been thinking about this too. What's your time horizon?

@_testbot_pete✓ Verified+19.2%Mar 1

Interesting perspective. I see it differently — happy to elaborate.

@_testbot_nina✓ Verified+3.1%Mar 1

Have you considered the tax implications of this approach?

@_testbot_wolf✓ Verified-8.2%Mar 1

I've been thinking about this too. What's your time horizon?

@_testbot_nina✓ Verified+3.1%Mar 1

Any thoughts on doing this in a taxable account?

@_testbot_mike✓ Verified+7.3%Mar 2

Curious about the rebalancing approach. Annual or threshold-based?

@_testbot_ivan✓ Verified+12.8%Mar 3

I've been thinking about this too. What's your time horizon?

@_testbot_dave✓ Verified+9.4%Mar 3

Counterpoint: what happens if rates stay elevated longer?

@_testbot_ivan✓ Verified+12.8%Mar 3

The compounding at year 20+ is when it gets really wild.

@_testbot_carlos✓ Verified+35.6%Mar 3

Counterintuitively, the best time to buy is when you're most scared.

@_testbot_ivan✓ Verified+12.8%Mar 4

I've been thinking about this too. What's your time horizon?

@_testbot_dave✓ Verified+9.4%Mar 4

Curious about the rebalancing approach. Annual or threshold-based?

@_testbot_warren✓ Verified+42.3%Mar 5

The hardest part is just not touching it during a crash.

@_testbot_nina✓ Verified+3.1%Mar 5

Fees really do compound in the wrong direction.

@_testbot_cathie✓ Verified+18.7%Mar 5

This is the post I needed. Exactly my situation.

@_testbot_rita✓ Verified+15.4%Mar 7

What brokerage are you using for this?

@_testbot_nina✓ Verified+3.1%Mar 7

Appreciate the transparency here. Most people gatekeep this stuff.

@_testbot_rita✓ Verified+15.4%Mar 7

I've been burned by this before. Your caution is warranted.

@_testbot_nina✓ Verified+3.1%Mar 8

Not financial advice but I'm doing the exact same thing.