I participated in a free Jackson Grant Investment Advisor webcast today on the subject of Personal Portfolio Management - sharing what is recommended for an individual or couple in retirement whether engaging an Advisor or self-managing your portfolio. Key take-ways:
- Most important !! ... understand actual living and discretionary expenditures Here
- Know your coverage ratio - are your living expenses covered by interest and dividends without selling assets required for covering taxes and inflation
- The traditional 4% withdrawal rate is based on a 50/50 portfolio allocation
- You must be invested in stocks based on your risk 'tolerance' or you cannot keep up with inflation (a silent killer of portfolios)
- Review your coverage ratio quarterly to be sure income is adequate
- Ask yourself these questions
- How much am I spending now
- How much non-portfolio income is coming in
- What's the Gap
- How much do I need to withdraw from the portfolios to maintain the lifestyle over a lifetime that could be 20-30 years factoring in inflation, taxes, legacy.
- Collect all your accounts and place them in a binder
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