You do need to work it out. What do you really need to live the life you want? Let’s work it out. It may be less than you think. How much do you need to be financially independent? Do your wealth calculator. People ask themselves what age they want to retire. But really the question is, at what income?
Most people have a pension. But when you look at that pension, you will see that you are paying huge fees, and pension investing has changed. And there are huge disrupters in this market, and that is good news. Because they are here to give you a better deal. Investment strategies are best left to smarter people than us. But, let’s see what the smartest people have to say:
Ray Dalio, a super successful fund manager, says you are smart if you think about investing like seasons. There will be Winter, but it will be followed by Spring. And what you must do is to spread the risk so you don’t lose when everyone else does. In essence, don’t have all your eggs in one basket: Diversify.
10%, 20%, 30%?
Clue. The older you are, the higher it needs to be.