In this episode we answer emails from Arun, Jeffrey and Chris. We discuss using simple back-of-the-envelope estimation methods to solve for complex portfolio projections, using a risk parity style portfolio for intermediate accumulations, and re-cap annuity considerations from Episode 184.
And THEN we our go through our weekly and monthly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio.
Arun's question:
"What type of portfolio would you suggest for below scenario. I can invest $x a month for y years and can let it sit for n years. After y+n years would like to start withdrawing at least .75x dollars per month perpetually. Value of x would be less than $1000 and value of y would be 5-10 years but depending on future need and market condition it can stay longer or shorter. Ideally would like to have n=0 but that might be too ambitious. Is there to tool to play with these variables that you know and what type of portfolio would you suggest."
Additional Links:
Risk Savvy book: Risk Savvy: How to Make Good Decisions by Gerd Gigerenzer | Goodreads
Portfolio Visualizer Monte Carlo Simulator with Multi-stage Analyzer: Financial Goals (portfoliovisualizer.com)
Rule of 72: Rule of 72 - Wikipedia
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