Is anyone else really turned off by the 4% rule and the traditional retirement portfolio mix? It seems way too conservative to me.
My current plan is to stay aggressive and collect dividends/capital gains on a portfolio heavy on technology and health care which I don't see trending downwards in my lifetime. Sure, you may lose 20%+ in a bad downturn but the longest the market has taken to reach new highs after a bear market is 2 years (not including the great depression which was 5 years).
My plan is to keep 2 years of living expenses in cash/bonds and collect dividends and capital gains from my portfolio during bull markets and reinvest it during bear markets.
Past performance isn't a indicator of future performance but let's be honest, in general it's damn good indicator. Back testing my portfolio shows that, over 7 years, the balance would almost double without dividend/CG reinvestment and the income it generates would range between $114K-$400K annually.
My mix is an equal spread between FXAIX (S&P 500 index), FSPTX (Fidelity Select Technology Portfolio), FSPHX (Fidelity Select Healthcare Portfolio), and DIVO (Amplify CWP Enhanced Dividend Income ETF).
Am I crazy in this idea? Granted, I have my normal investment portfolio, my wife will be drawing a six figure pension w/healthcare from the state, plus social security a few years later, so maybe that back up allows me to be less risk adverse than most.