Quote:
Originally Posted by tophcfa
So, exactly how does one determine when it’s the best time to shoot all the dry powder?
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very difficult, though it might be easier to just hold a portfolio and hedge it as needed. Or buy low volatility funds, or seek institutional portfolio manager investments/advice.
Might be what that portfolio management fee will cover, if losses are minimized for a lower but more steady annual return, ie reduced portfolio drawdown trading off against big annual SPX returns. SP500 averages 10% per year with dividends, but there are very few 9-10% years. The annual distribution is a bar bell shape, with very few observations of annual returns between -5% and 15%.
A portfolio returning 7% per year in an IRA will continuing growing beyond RMD withdrawals until the age of 87. . . then the balance will decline slowly.
A portfolio returning 7% per year in an IRA will continuing growing beyond RMD withdrawals until the age of 90. . .
might be something to that slow and steady lower returns for professional management than just a cost minimization strategy.
YMMV