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Erik ........

As the British say: "Some questions are not asked in polite society"...:-). Therefore I can respond to your first one only in relative terms.

As to the second, my only Real Estate is my home and otherwise I am 100% in equities ..... about half of which could be termed 'high yield'.
75% is in tax-deferred accounts.

I view my home as an expense rather than an investment since I have to live somewhere. One of my assumptions is that both property value and cost-of-living inflation will rise at their long-term averages of 3%. At some point I suppose I may monetize the asset but I did not include that in my calculations for 'required income'. Otherwise, the equity will simply go to my heirs and for disposal of my earthly remains.

I used the same annual 3% COLA for all other expenses.

Several years ago I arrived at a target of requiring gain-generating assets of 15 times my 'living expenses' as the point at which I could retire. I used the following factors/criteria.

At age 60, a pension will kick in and pay 20% of the living expenses. Unfortunately, it is non-indexed so its impact will degrade over time. At age 65 an indexed old-age security plan will kick in and cover an additional 15%.

Obviously, the gap between retirement age and pension age is important. The longer that period of no 'wages' income, the better the average performance of this next section must be to make up for it. I formulated the plan at age 50. My initial target was age 56 but that slipped to age (almost) 58.

By the way, it was relatively simple to lay out an Excel spreadsheet for investigating various scenarios. "Life expectancy" gave rise to mixed emotions as it is really not much fun considering one's personal demise ...:-)

Considering my health and geneology, I settled on age 82.

If I can generate an average of 6.67% in pre-tax ROI, then I will go to meet my Maker leaving behind only the 'house' to which I referred previously.

If I can do 8.5% in pre-tax ROI, then I will depart with about the same number of dollars that I had on Retirement Day.

Over the last 7 years I have never generated an investment gain of less than 8%. One year I achieved over 41%. Therefore, with more time now to devote to the cause, I believe that the plan is conservative and do-able.


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