Reply to At what net worth are you considered wealthy ?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I think the debate between NW versus cash flow depends on where you are in your working career. The closer you get to the end of your career, cash flow becomes the chief concern, not building NW.

I am late 50s, and it’s all I think about. I have no pension, so actively selling no/low yield stocks( including tech) to buy individual bonds/CDs, to lock-in some income. My younger self would not be doing this. I don’t even consider my house in NW, b/c I am going to live in for likely another 10 years, so it’s really an expense to me.[/quote]

Why would you not stay in equities?[/quote] Are you serious ? Bonds are safer and generally have a higher yield, and I will need cash flow.

I am not totally out of stocks, but trimming high flyers.

[/quote]

NP. I don't think I would say that bonds are necessarily safer because you are going to get killed by inflation if your bond allocation is too high. The main purpose of bonds is to stop investors from doing something stupid when the market is volatile. They are also extremely important if you retire at the wrong time, which will only be known in hindsight. If you bond allocation is too high, your withdrawal rate and the terminal value of your portfolio will be not so great. Maybe you are becoming more risk averse as you get older, which is pretty normal.[/quote]

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