Fri Sep 13 2024, by Tyler Gardner

Super Conservative Investment Strategy for Retirement

Here's how I would invest $1 million for retirement if I were a super conservative investor looking to live off about $100,000 a year for the next 15 years. I'm Tyler, a former financial advisor and portfolio manager, and I'm here to share financial insights for free.

1. Fixed Annuity Strategy

Firstly, I might allocate $600,000 to a fixed annuity strategy. This involves purchasing a series of annuities:

• A one-year annuity of $60,000
• A two-year annuity of $60,000
• A three-year annuity of $60,000
• ...continuing this pattern through 10 years to guarantee $60,000 annually.

2. High-Risk Equities Investment

Next, I would invest the remaining $400,000 in high-risk, high-reward equities, focusing on funds such as Invesco's QQQM or Vanguard's VUG. This approach aims to maximize growth potential for the next 15 years.

To support my income, I would sell $40,000 of the stocks each year to complement the $60,000 fixed annuity.

3. Projected Income Strategy

Lastly, I would plan to leverage the 10 years of growth from these funds to sustain my income during years 11 through 15. This strategy offers a reliable income for the first 10 years, with a projected but slightly riskier income in the latter five years.

Market Considerations

Does this strategy work in every market scenario? Absolutely not. But then again, does any strategy?

If any of this information is helpful, please like and follow for more insights that can help you achieve your financial goals!

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