You don't "need" it, it's one option that provides peace of mind, especially for tying you over to SS when you want guaranteed income regardless of what the market does. In 2022/023 bonds crashed so drawing from the portfolio, even bonds, meant selling depreciated assets, which could cause someone to stress about it.
Yes, in this case rebalancing/staying in the market handsomely recovered your portfolio and more, but that's never a guarantee, at least over the time period you want to spend the money in, like the next 5 years.
With a portfolio your either have plenty, in which case.you don't care about market bumps, or you reduce how much you're withdrawing when the market is depressed, but if we're talking basic expenses (whatever that means to you) then you may not have a choice.
Yes, in this case rebalancing/staying in the market handsomely recovered your portfolio and more, but that's never a guarantee, at least over the time period you want to spend the money in, like the next 5 years.
With a portfolio your either have plenty, in which case.you don't care about market bumps, or you reduce how much you're withdrawing when the market is depressed, but if we're talking basic expenses (whatever that means to you) then you may not have a choice.
Statistics: Posted by Raspberry-503 — Tue Dec 31, 2024 2:11 pm — Replies 17 — Views 961