As we all know, the stock market is at an ATH. I currently have an estimated 2.1% SWR, or 46x expenses. I can't help but feel like this is too optimistic and I should "normalize" my current portfolio as it just feels like the market is elevated due to a 29x PE. Current holdings is 70/30 with VOO with my bond holding being 25% PIMIX (which has historically massively outperformed BND and I love PIMCO) and 5% short term treasuries as a last resort cash. My biggest fear is sequence of return risk- if VOO were to normalize to a 17.5x PE, my SWR would instantly jump to a 3.76% which is dicey.
Currently, to fund my life, I've just been selling VOO which has been completely fine but a lucky NVDA trade caused my portfolio to double YoY to 4.6m and I'm still waiting to capture gains on that and rotate it into VOO/PIMIX (next year, my taxable income will be 0, I'm currently at the highest bracket this year).
Am I being overly cautious? stupid? Should I just shut up and enjoy my life?
Investment Timeline: Forever- this is going to sound very cringe but I'd like to be the start of generational wealth submitted by /u/thelastsubject123
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Currently, to fund my life, I've just been selling VOO which has been completely fine but a lucky NVDA trade caused my portfolio to double YoY to 4.6m and I'm still waiting to capture gains on that and rotate it into VOO/PIMIX (next year, my taxable income will be 0, I'm currently at the highest bracket this year).
Am I being overly cautious? stupid? Should I just shut up and enjoy my life?
Investment Timeline: Forever- this is going to sound very cringe but I'd like to be the start of generational wealth submitted by /u/thelastsubject123
[link] [comments]