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  • bee November 2013
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A Conservative Asset Allocation For Income Focused Investors

Comments

  • beebee
    edited November 2013
    Just thinking out loud... Could one just allocate 30% of their $1M into ultra-safe FDIC insured laddered CDs and allow the other 70% the opportunity to keep up with inflation...maybe even appreciate from $700,000 to $1M over the next ten years...a 4% average return would get you there and could be completely deversified with just 2 ETFs...VT and VTI.

    At the 10 year mark, another 30% would be available to reallocated from the capital appreciation account to capital perservation/capital needs account?

    Additionally, in any year where returns on the capital appreciation account are greater than 4% the difference could be reallocated to the capital perservation account this might maintain a simple and continual rebalancing between the two accounts.
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