For me, dividend growth stocks and ETFs that grow their dividends with inflation, 10% in I-bonds that grow with inflation. Between growing dividends and interest, most of my expenses are covered.
15 years ago, we purchased a Variable Annuity, a very small portion of our portfolio, with aggressive subaccounts (Tech mostly, and international stocks). One of us will have a pension stream from employment. Along with social security and dividends from stocks and bonds, we will have 4 income streams when we turn 65 next year. This should cover our essential spending (utilities, property taxes, food etc.)
1 month treasury at 5.48% now. You might put 10% of you savings in those and 90% in something like S&P 500. Combine this with Social Security, Pensions, and any other rental type income you have and you basically execute the 90% stock approach Warren Buffet recommends.
Other than that you can look at various portfolios recommended by professionals here:
It is a mult-step process. Before you leave your career role, identify retirement income sources – pension (if any), wage income in retirement, returns on taxable investments, etc.
Then use a Social Security calculator to identify the optimal claiming strategy – and, as necessary, get counsel on this all-important decision.
If the sources of retirement income are insufficient, the best strategy may be one of deferral – deferral of commencing retirement, and deferral of commencing Social Security benefits as the most cost-effective “annuity” for most low- and middle-income households is to consider deferring commencement of Social Security.
Deferral is generally more favorably priced than annuities in the insurance marketplace, and Social Security comes with specific surviving spouse benefits.
For me, dividend growth stocks and ETFs that grow their dividends with inflation, 10% in I-bonds that grow with inflation. Between growing dividends and interest, most of my expenses are covered.
15 years ago, we purchased a Variable Annuity, a very small portion of our portfolio, with aggressive subaccounts (Tech mostly, and international stocks). One of us will have a pension stream from employment. Along with social security and dividends from stocks and bonds, we will have 4 income streams when we turn 65 next year. This should cover our essential spending (utilities, property taxes, food etc.)
1 month treasury at 5.48% now. You might put 10% of you savings in those and 90% in something like S&P 500. Combine this with Social Security, Pensions, and any other rental type income you have and you basically execute the 90% stock approach Warren Buffet recommends.
Other than that you can look at various portfolios recommended by professionals here:
https://www.optimizedportfolio.com/lazy-portfolios/
It is a mult-step process. Before you leave your career role, identify retirement income sources – pension (if any), wage income in retirement, returns on taxable investments, etc.
Then use a Social Security calculator to identify the optimal claiming strategy – and, as necessary, get counsel on this all-important decision.
If the sources of retirement income are insufficient, the best strategy may be one of deferral – deferral of commencing retirement, and deferral of commencing Social Security benefits as the most cost-effective “annuity” for most low- and middle-income households is to consider deferring commencement of Social Security.
Deferral is generally more favorably priced than annuities in the insurance marketplace, and Social Security comes with specific surviving spouse benefits.
See: https://crr.bc.edu/wp-content/uploads/2021/12/wp_2021-27.pdf
Depreciation-protected rents cover 75% of expenses and individual dividend growth stocks the rest.