Reply to When does contributing to your portfolio start to feel pointless?

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[quote=Anonymous]At some.point you hit a time in life where you shift from capital accumulation to capital preservation. It's an individual choice when that is. Factoring in wealth, age, health, lifestyle, and risk. If OP is in accumulation then the $100k a year helps accumulate. Ironically. if OP starts using that $100k for lifestyle then it might extend the time to shift from accumulate to preserve, and increase the total $ they need in their cash flow portfolio. Over 10 years $1 million plus returns is consumed rather than heling them get to the position of being in capital preservation/low risk AND adequate cash flow indefinitely to keep lifestyle while not working/earning (i.e., Retire!).

Unless they have some major liquidity event in the future like selling a business that pushes them well beyond the level of liquid cash flow investments where the risk of remaining in accumulate doesn't matter because no matter how big a drop, or how late, or how long, it won't impact lifestyle or end of life care, they should save the $ now. There's actually more risk in life than in the markets... you or family becoming ill, losing jobs, not having that "extra" $100k to save... if you are left of the "could retire now" finish line and have that $100k to save, then save it.[/quote]

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