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Anonymous

06 Jul 2021

Retirement

How to manage portfolio allocation after achieving FIRE?

There's plenty of info of how to achieve FIRE. But after achieving or exceeding your FIRE target and actually living the FIRE lifestyle, how are your financials supposed to be invested?

The common pre-FIRE strategy is to invest disposable income in high growth potential instruments such as stocks, ETFs, etc. The overall portfolio will be tilted towards capturing growth with a small percentage, say 10 - 20%, catered to bonds and emergency funds. This will continue till FIRE amount is reached.

However, once FIRE is hit, what happens to the portfolio then? Do you continue with pre-FIRE portfolio allocation? Such a portfolio is not geared for regular withdrawals and downside risks are high. Transitioning to a lower risk portfolio with lesser exposure to growth seems to be the answer but what kind of approaches are available locally? SRS/CPF is disregarded here as this is supposed to be before any of their age requirements.
1. Stick with current portfolio but adjust allocation to 40% equities 60% bonds. Monthly regular withdrawals support post FIRE. Can treat this as monthly re-balancing.
2. Switch to 80% income generating portfolio, such as dividend or REITs based, 20% growth.
3. Buy retirement plan or annuity, supplemented by point 1 or 2.
4. Others?

Curious to hear from those who have FIRED.

Discussion (6)

What are your thoughts?

Learn how to style your text

Just google FIRE drawdown strategies

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Daniel Chua

30 Jun 2021

Digital Audio Visual Production (Nitec) at ITE

Depending on how much you will need to R.E. cause if your annual expenses.

Being F.I. is pretty easy if you can be contented with less.

But Like my personal F.I. number is about 21k a year.

so mean i need about 700k in dividends or interest at a minimum of 3% to be finanically independence from having a dayjob.

Whats your current age or whats your current time frame to your F.I Journey.

Why not consider 50% health dividends equites 50% bonds.

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Next step is to think about how to preserve your wealth or grow more.

this you need to think about...

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