Tue Jul 30 2024, by Tyler Gardner

Retirement PlanningInvestment StrategiesStock FundsBondsFinancial Advice

Investing for Retirement

Here is how I would invest $1 million in retirement if I wanted to live off of $100,000 a year for 15 years. I'm Tyler, a former financial advisor and portfolio manager. Now, I create financial content for free so that you don't have to pay for it.

1. Stock Fund Investments

I would invest $600,000 in a mix of stock funds:

  • $200,000 in a fund like SCHD for dividends,
  • $200,000 in a fund like FXAIX for a low-cost index fund,
  • $200,000 in a fund like QQQM for some aggressive growth.

2. Bond Investments

The remaining $400,000 would go into government bonds and investment-grade corporate bonds. I might do this through a fund like iShares IGIB or SPDRs SPIB.

3. Annual Withdrawals and Rebalancing

At the beginning of each calendar year, I would sell $60,000 of stocks and enough of the bonds to complement my annual coupon payments that I'd received from the bonds. This helps maintain a stable income stream.

Additionally, I would rebalance the portfolio annually to ensure I never stray too far from my 60-40 split between stocks and bonds.

Will This Strategy Work in All Market Conditions?

Absolutely not. Will any strategy work in all market conditions? Probably not. If you find any of this information helpful, please like and follow, and I'll keep trying to get you one step closer to where you need to be.

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