Thoughts on 5M Portfolio?

[charlotte9014]

73 y/o man still working (1-7 more years, depending on health), earning 250K-300K/year. 67 y/o woman, doesn't work. Expenses around 120K/year. Both now also collecting social security. 5M in cash/bonds/equity, 1.5M house. EDIT: This actually is a portfolio proposed to my parents my a new advisor working on an hourly-based fee. My dad is a doctor who loves his work and derives more meaning from it than anything else. I tell him he doesn't need to work so hard and maybe he can move to part-time. The money he earns doesn't matter at this point - he does it because he loves it, and know's he contributes.

30% BSV (Vanguard short-term bond fund, 0.04% exp ratio)

30% BIV (Vanguard Intermediate-term bond fund, 0.04%)

20% VTI (Vanguard total stock market, 0.03%)

4% AVUV (Avantis US Small Cap Value, 0.25%)

8.8% DFAI (Dimensional International Core, 0.18%)

4.8% DFAE (Dimensional Emerging Core, 0.25%)

2.4% REET (iShares Global Real Estate, 0.14%)

 

[nadafaith]

@charlotte9014 Retire and spend your remaining healthy years with the grandkids / family.

 

[catz]

@nadafaith Some people, especially those who work helping others, don’t see it as work and feel as if they will die without it. I’m a firm believer in celebrating one’s life and death is inevitable. You will always want more time with a loved on and no amount you spend with them prior to death will console you after they die. Let your loved ones do what makes them happy and it seems like this doctor loves his job and wants to spend as long as possible doing it.

I once had a boss where we had to throw him 5 retirement parties because he just wouldn’t leave. He was so unhappy not working and we weren’t even doctors. He just enjoyed gardening with his wife and coming to the office. He finally stopped coming in when he eventually passed away and his wife said he had zero regrets about loving his job.

 

[loverofchrist69]

@catz

He finally stopped coming in when he eventually passed away

I would sure hope so

 

[juliekl]

@loverofchrist69 My boss would probably expect me to come in anyways, beeing dead is no exuse!

 

[angeliq4]

@juliekl This is how you get written up.

 

[backintown1]

@loverofchrist69 That reminds me of a Don Rickles line. He was doing a routine at the 2nd inauguration for Ronald Reagan. And he was picking on the leader of the band which was just off the edge of the stage. (Older guy with grey hair)

After ripping off a few zingers about Reagan, he walks by the bandleader and goes “I spoke to the hospital Nelson, you died about an hour ago” LMAO

 

[catz]

@loverofchrist69 His ghost wanted to come but we said no

 

[charlotte9014]

@catz You nailed it. All he does is go to work--> read the paper --> maybe watch a show w/ mom--> go to bed. Rinse and repeat. 45 years. I've seen him at work - he is genuinely happiest. It was always the best going to work with him as a kid. He loves to talk to people and learn about them. He lives vicariously through all the interesting patients he meets. He loves to connect with people. He's also hilarious and self-deprecating. Thanks for helping me appreciate my dad.

 

[hd8e8dx]

@catz I also note that many (if not most) people retire and then start declining rapidly. They spend less time stimulating themselves intellectually, physically and socially. Those things can be hard to do without a job, because it competes with easy things like watching TV.

It’s not a surprise that a guy like Buffet still sounds sharp at 92, and not a surprise that Charlie was that way right up till he passed at 99.

 

[roann]

@hd8e8dx Most, if not all, of the people I know who retired (many cause I'm close to that age) have not declined and have enjoyed the hell out of their retirement.

 

[hcwewvcw02]

@catz Well said. Redittors are so silly. I’m sure this individual loves coming to work, having a routine, seeing his buddies, etc.

My father in law is the same way - at 73, shows no desire to retire. Doesn’t need the money at all and knows it, but enjoys the challenge, interacting with people, and he knows so many people because he’s worked there 40 (!) years.
Why would we tear him away from that? He still makes plenty of time to see the world, watch movies, etc whenever he wants. But what exactly would he do with all the extra time? Golf? Read?
All that gets old after a while for many people.

Having a purpose and sense of belonging is so so important when you’re older, and your kids have lives of their own. A no stress job where you love the people you work with and intellectual challenge and routine is absolutely great to have, and in my opinion incredibly healthy and will stave off the mental decline that happens to so many in their 70s.

 

[findingtruth]

@hcwewvcw02 Bingo. You hit the nail on the head - a no stress job which you like or atleast don't dislike, you can go on as a energizer bunny

 

[lynlovesgod]

@nadafaith I’m assuming someone in as established a position as this would already have the flexibility to have all the family time they want.

If kids work and grandkids are in school then there isn’t anything to do with them during most work hours anyways.

Staying active and engaged can be the most important thing for lifespan/healthspan at that point. If they retire just to sit around with nothing to do most of the day that’s actually a good way to die sooner and less fulfilled.

 

[darienjames]

@charlotte9014 this is what I tell my parents (who are in their early 60) to spend it all. they have 5mil in stock and few rental properties... my parents are too damn frugal. I want them to spend their money to travel and enjoy life

 

[faithfullyhis4ever]

@darienjames Exactly this…the guy is 73, if he keeps on working 7 years more he’s gonna have 6-7M in the bank by 80, then what

 

[piouswhale]

@faithfullyhis4ever Generational wealth.

Idk about OP, but coming from semi-poor family thats my goal in investing.

 

[nitelock75]

@piouswhale The best thing about generational wealth is how quickly the wrong generation can dispose of it.

 

[garyyancey]

@nitelock75 Shirt sleeves to shirt sleeves in 3 generations.

The American way

 

[piouswhale]

@nitelock75 That's why you give your offspring proper financial guidance and hope for the best.