Can Your Retirement Survive High Stock Market Valuations?

[@dominic8218]

I’ve based my world allocation 60/40 fund on 5% growth pa and inflation at 2.5%. Would like to get thoughts on whether this is too aggressive and should I scale it back? 🤔

[@coderider3022]

For a drawdown portfolio ?

[@dominic8218]

@@coderider3022 yes 👍🏻

[@AlexNorman-Jones]

Hard to say without knowing more of your circumstances eg how comfortable you are with volatility and drawdowns etc aswell as other retrement assets etc. If you are concerned with the volatility and drawdowns, I always like to look at how a portfolio has done in the past to get a sense of how bad things have been in the past such as during the banking crisis, dot com crash of 2000 and more recently COVID. This is a great free backtest software - www.portfoliovisualizer.com/ that puts this into perspective. Big caveat past performance isnt a guide to the future and future drawdowns and volatility could eclipse those of the past.

[@dominic8218]

@@AlexNorman-Jones brilliant! Thanks Alex and really appreciate your help. Enjoying your vlogs and picking up lots. Many thanks 👍🏻