"We have about $1 million in mortgages. I have $5.8 million in retirement, and my wife has $1.5 million. I am still employed ($330,000 salary) for at least another couple years. Our burn rate is approximately $300,000 per year. When my 94-year-old mother dies, I will inherit approximately $2.5 million. I expect to pay off the mortgages when my mother passes."
"All of my retirement is in stock (Tesla, Apple, Google, etc.). I have done very well with it. I know everyone (the New York Times, Charles Schwab, ChatGPT, etc.) strongly advises putting a significant amount of money in bonds, funds, etc. and drastically decreasing what is in stock. My wife thinks so, too. But I see the charts and historical recounting about how the best possible investment over time is stock, and nothing else (again, over time) does nearly as well."
A 66-year-old and a 61-year-old couple aim to preserve lifestyle while leaving as much as possible to three adult children. Their balance sheet includes two homes, about $1 million in mortgages, roughly $7.3 million in retirement accounts combined, a $330,000 salary, and a $300,000 annual spending rate. An expected $2.5 million inheritance will likely pay off mortgages. Retirement savings are heavily concentrated in individual stocks. At older ages, sequence-of-returns risk matters: the primary hazard is being forced to sell equities during a market downturn to cover spending. A multi-year bucket of cash and bonds, diversified allocations, and gradual de-risking of portfolios reduce that risk and preserve estate goals.
Read at Slate Magazine
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