I don’t know if this is what some people would call life changing money.
safe bet: long term investment for retirement or to buy a house.
dreamer me: study the piano bachelor you always said you wanted to do, even if it’s just the bachelor, and not a master, even if you’re doing it not for the money or fame, but just because you want to play and maybe teach part time, but mostly because is something I enjoy doing, even if teaching the piano is mostly a side job to my main job.
I don’t know what to do. Feel free to read my previous post, because it’s related to this one.
While this is probably true, 4% rule will leave you with money left 95% of the time over 30 years, not for your lifetime. So if you’re going to withdraw money from this for longer than 30 years you should probably adjust your withdrawal percentage to less than 4%.
You can withdraw/shift allocation to more stable assets during bullruns and live off these stable assets until the rest of your more volatile assets have made gains again.
I know this is cherry picked days, but it’s happened many times over the last hundred years. From 2000-2013 the market was essentially flat due to crashes in 2000 and 2008. Are you going to have enough stable assets for the market being flat for 13 years? no. Plus you’re talking about timing the market and knowing when these bull runs will start and for how long, which is just guessing. Not the best idea with your life’s savings.
That just means no extra money during these times.
You don’t need to try timing the market.
You operate with thresholds instead: the $150k have become $150k + x -> move x to stable assets and wait until the next time there’s x extra.
What’s not working is trying to have a reliable, stable source of extra incoming.
Skimming gains is possible though.