Quote:
Originally Posted by 1990C4S
The answer is 'it depends'.
There are so many variables that there's no simple answer. Where is your money? Real estate, money market, maybe a business? When will you divest? How old are you, what's your life expectancy? What's your plan for your last five years? Live in your current home, downsize, assisted living? Do you want to drain your savings, or leave something for your surviving family? When do you want to disperse your 'excess' funds? And on and on...
Anyone that throws X% numbers around as a 'rule' is just talking. Talk is cheap.
Build a spreadsheet. Work YOUR numbers.
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Problem I think, if someone is listening to Ramsey they almost certainly won’t be able to figure the math. Intersection of risk and return - it’s fairly complex.
There’s a set of people that accept optimistic estimates and will be badly burned by his advice. 8%? Really? That rate will chew through your nest egg pretty quickly if there’s a downturn.