The $2 Million Portfolio Plan No Advisor Wants You to See

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Dec 1, 2025

Curious about investing $2 million without stress? Discover a straightforward 90/10 stock-to-money market strategy that balances growth and stability. Challenge outdated withdrawal rules—$120k to $200k annually is feasible and can fund meaningful life experiences. Explore how retirees often underspend due to anxiety and why spending for experiences can lead to lasting happiness. Learn the importance of a cash buffer during market downturns and how to confidently navigate your portfolio for a fulfilled retirement.

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INSIGHT

Percentages Over Principal

Percentages matter more than principal; the same allocation scales from small to huge portfolios.
Paying AUM fees that rise with portfolio size often doesn't buy better outcomes.

ADVICE

90/10 Simple Equity Plus Cash

Invest 90% in broad U.S. equity index funds like VOO or VTI and 10% in a short-term money market fund for liquidity.
Keep costs low and use the 10% cash as a buffer to avoid selling stocks in downturns.

INSIGHT

Stocks Drive Long-Term Growth

Stocks have historically outpaced bonds by several percentage points of real return, driving long-term wealth growth.
Overbonding can reduce compound growth and harm long-term retirement outcomes.

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If you’ve ever wondered how to invest $2 million—or any substantial portfolio—without losing sleep, this episode is for you. I break down a simple, historically backed approach: 90% in stocks (VOO/VTI), 10% in a money market fund (SPAXX). This allocation maximizes growth, keeps volatility manageable, and allows you to spend confidently.

We challenge conventional wisdom: the 4% rule is too conservative for most retirees. With disciplined withdrawals of $120k–$200k per year, your portfolio can keep pace with inflation, fund meaningful experiences, and still grow over time. Think of it as the financial equivalent of having your cake, eating it, and watching it regenerate.

We also tackle the psychology of spending: most retirees underspend, living smaller than necessary due to “consumption gap anxiety.” Intentional withdrawals for travel, family experiences, and “bucket list” adventures can bring more lasting happiness than accumulating wealth alone.

Historical context matters: even through market crashes—2008, 2020—you can maintain your lifestyle using a 10% cash buffer. Percentages matter more than principal; the strategy scales from $500k to $20M.

And if it's good enough for Buffett's estate...it's good enough for me.

Key Highlights:

Percentages over principal: 90/10 allocation works for nearly any portfolio size.
Withdraw confidently: $120k–$200k/year supports lifestyle while portfolio grows.
Spend for experiences: vacations, relationships, and quality of life matter more than hoarding.
Liquidity is your friend: 10% in cash lets you ride out crashes without selling stocks.
High-stakes bingo: later in retirement, increase withdrawals for “once-in-a-lifetime” experiences.

Resources and research mentioned in this episode:

William Bengen, 4% Rule (1994)
Michael Kitces on dynamic withdrawals
Wade Pfau, Safety-First Retirement Planning
Bill Perkins, Die With Zero
David Blanchett, Retirement Spending Smile

If this episode helps you feel more confident about using your money to live well, consider leaving a review on Apple or Spotify. Your feedback helps keep this financial literacy experiment alive.

And if you're still feeling stuck and are looking for expert advice for a flat annual membership fee, check out this episode's sponsor, Facet, by going to facet.com/tyler