flyingpylon wrote: ↑Thu Dec 19, 2019 7:44 pm
What if your lifestyle at retirement would be fully funded by the amount generated by the PP or whatever “suboptimal” portfolio you chose?
you don't know what you will need or how you will do decades prior to retiring . remember we are talking retirement money not current living money
my opinion is strive for the max and then worry about having to much money down the road . it is a lot more palatable then coming up short because you wasted decades in assets that did not grow enough to adequately fund your future needs .
there is a time for maximum growth and then there is a time for preserving what you grew with some growth . preservation is after the fact you reached your savings goals.
but life has a way of screwing us over too . that nice high paying job you had could vanish at any point .. so the fact you were saving a lot is no longer the case ... we all eventually go through one of the big three , divorce-job loss or illness . so the more we let our money work for us the better our chances of survival .
so in my opinion we want to max out not only our earning capability , but our money working for us on our long term money so we have a bigger cushion develop over time . over decades there will be a substantial difference that develops if one is to conservative during those accumulation years .
all of us would love to have had nice low volatility investments through our accumulation stage with out big swings .. but the reality is with few exceptions that would have really reduced long term gains. so just because we can do something does not mean it is a good idea and we should .
many are coming up short with under funded retirements or stressful retirements because they are operating with less than they could have been and sweat every unexpected expense .