Keeping it simple. maybe some combo of VT/BND, based on her risk tolerance. Maybe 30/70? Do some sims in firecalc.
4% swr on 950k is 38k annually, but that assumes a classic 60/40 portfolio. Does her social security make up the difference?
Fairly good review of the Trinity study and safe withdrawal rates. Guess it depends on whether you’re willing to die broke or not.
https://www.whitecoatinvestor.com/how-much-will-you-probably-die-with/
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I couldnt care less about dying broke. My biggest fear is still being alive the day after I’ve gone broke. If I knew I was going to die tomorrow, you can be damn certain that my next 24 hours would be epic, blowing every penny I could scrounge up. Problem is when I still wake up the following day, since the only thing certain about death is that it will happen at some point.
That is pretty much everyone’s issue with retirement spending - regardless of the theoretical models, you have no clue how long your money will actually have to last. For the most part, everyone hopes for the high end of their expected lifespan, and there is no hard ceiling to how high it could go. So it’s counter-intuitive, and very short-sighted, to budget based on the low end of what’s possible. Even if the odds say there’s a good chance it’ll all work out just fine.
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I’ve been out of this forum for a couple of years now. A friend of mine who is well known in here just got me thinking about it again so this is my first post since 2017. Anyway, I’m big into real estate investing. So let’s say she buys the condo she’s in or a similar one. She still has $350K left. She can buy another smaller rental unit and use a local property manager. This gives her some extra income and solves the inheritance issue, even though that’s low priority. And she can raise rents over time.