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Hi Norm,

Thank you. I think you accurately described what is commonly accepted professional financial planning advice, and for many that don't enjoy actively managing their own portfolios that is quite likely the best approach. Nothing wrong with it at all.

For those that may be reading this, I really don't have any pearls of wisdom to offer beyond that approach. But with my portfolio I intend to do it just slightly different, though not far different. I agree with the two pronged strategy, but (1) I've never felt comfortable with bonds or treasuries, and (2) I prefer more growth oriented weighting than 50/50.

For my retirement income I favor dividend aristocrats and MLPs, over bonds. As for weighting, I take my cues from history, which shows bear markets seldom last longer than 2-3 years (generally), so my weighting between reserve (income) and growth will require a rolling 3-5 year cushion in the income producing portfolio, rebalanced as necessary, while the rest is in the growth portfolio with a 10+ year investment horizon.

Stocks, and thus stock indices, go up and down, and thus produce growth in some years and losses in others. If you owned a basic S&P 500 index fund in 2008, for example, you lost about half of its value in that year. That is not reliable income.
Indeed, markets go up and down, that is as certain as the tides. No matter the strategy, it is foolhardy to think you can expertly time your moves to avoid a downturn. While I harbor no such delusions, in chapter 21 O'Shaungnessy demonstrates some nifty risk adjusted strategies that significantly outperform the index, while minimizing risk and reducing drawdowns. But ultimately sticking with a strategy over the long term is key to outperformance, and that can be very difficult when the world seems to be coming apart as it did in 2008.

Invest wisely my friends
CMFSoloFool - Ticker Guide / Share Holder
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