The majority of people that are coming to me have an investment portfolio that might show 60%

equities and 40% fixed income. Maybe it's 70% equities and 30% fixed income. Sometimes it's even

100% equities and 0% fixed income. None of them are right or wrong, but it depends on your

situation. And here's a very simple example to illustrate this. Client came to me with $3 million and they were 100% equities. And they said, Ari, isn't this crazy? Like how did my initial advisor even recommend this? And I said, it depends. How much do you want to spend in your retirement? They said, $8,000 a month. I said, that's $96,000 year. They go, yeah, that's right. I said it's about $100,000 here and you've got a $3 million portfolio in 100% equities.

Do I have that right?

They go, yeah, that's right. I said, it's about $100,000 a year. And you've got a $3 million portfolio

and 100% equities.

Do I have that right?

They go, yep, you've got that right. This is a rocket science. I go, how much does your pension cover? And they go, well, about $6,000 a month. I go, okay. So your pension covers about 6,000 a month.

You want to spend 8,000 a month.

2,000 a month needs to come from your portfolio.

Do I have that right?

They go, yep, you've got that right.

I say, great. Here's what I need you to think about. That $3 million can fluctuate a whole lot more than someone who doesn't have a pension, but it doesn't need to be a hundred percent in cash because the reality is you have the pension that's helping out, which

means you can be able to take on a little bit more risk than your traditional retiree.

Does that make sense?

They said, yes, but once again, does 100% equity just sound really aggressive?

And what we ended up having a long conversation on is the fact that most people are getting

older and think they need to be more

conservative. And so I like to break it down like this. I'll say, what does conservative mean to you? And someone said, conservative means to me that my money's not going to go up and down a whole bunch, because as I'm getting into retirement, I don't have the ability to recover in the same way I did when I was younger. I said, that's true.

They said, then what do you recommend? I go, well, why don't you hear this other definition

from my client who I asked about what does conservative mean to you? And they said conservative means

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