psteinx wrote: ↑Thu Nov 08, 2018 2:38 pm
Rick, a hypothetical...
A client (or, if you're not professionally advising, a friend, relative, or poster on an internet forum you like
) approaches you with these parameters:
Age 45. Married, kids almost out of the nest, and education provided for separately from the following.
Dual incomes $125K total, relatively secure
Home value $300K, remaining mortgage $100K
$400K to invest now ($300K tax-deferred, $100K taxable), plus $50K emergency fund
Want a simple, durable investment strategy (i.e. something they won't need to fuss with much over time)
Risk tolerance about typical for the above characteristics
What do you recommend?
We would all like to think that since you have been a BH member since 2007 and posted 2900+ times you would have been able to play along and pony up your own DIY recommendation for the couple in your hypothetical whiz quiz game.
Rick cannot, for obvious reasons, go out on a limb with a public recommendation for a non-client. Everyone that is a member of the BH DIY club can go out on a limb, though, because none of us have anything professionally to gain or lose in terms of accountability or legal matters with any recommendation here on the web.
Armchair investing gurus unite!
It appears to me your scenario is a rather simple one to recommend as the couple is in good standing from an income to debt ratio, and the amount of savings they have amassed thus far along with their human capital/dual income household places them in an excellent position to build their nest egg in the coming years.
Classic Four with the investor choosing at age 45 to begin with 70/30 and over the next 15 years slowly migrate toward -----> 60/40 while they continue to sock away 20% of their gross income* on automatic pilot through thick and thin for the next 20-22 years from their dual income careers.
*Sock away even more than 20% once the nest is totally empty and all of the college education expenses are finished.
Bonus recommendation - or extra free sauce advice - for the couple: enjoy life, family, friends, vacations, exercise, entertainment, food & wine along the way as they - like all of us - get this journey only once.
There you go. The couple can now profit from this armchair advice that was free and easy to dispense - especially since their savings rate will take care of any mistakes made in this non-professional, DIY web based recommendation.
We've enjoyed Rick's commentary here on the forums as well as appearances at the BH conferences (which we have seen via the video archives). The new website looks clean and easy to navigate, with excellent suggestions. Well done, Rick!