At my age, 67, most are running to “safety” or “lower risk”. At age 67 I am a “most aggressive growth” investor (according to Fidelity), with 83% in domestic stocks and 12% in foreign. Yes, that is 95% in the “high” risk section of the investing world. But I am not nervous and don’t let market behaviors rattle my thinking or change my plan. I have diversified dividend growth that more than meets our annual expenses. We could easily weather a bear market, including reductions in dividends.
Some of the income growth since 2010 is the result of selling positions, most at a profit. I sold them because they were not aligned with my new written investment plan. One element of my plan defines my requirements for and my focus on dividend growth investments. The proceeds are used to buy investments that fit my investment plan. A significant portion of the growth is from dividend growth and reinvesting dividends.
Our monthly expenses are about $4,000 per month and we are debt free. A large portion of our “expenses” per month is charitable giving and discretionary spending. Our “cost of living” expenses are easily covered by my Social Security and my wife’s small income caring for her aged mother.
I really don’t care about bear or bull markets, other than to see them as buying and selling opportunities. If my core dividend-growth stocks fit my investment plan rules I do not sell them.
Here is a picture of the results from using my plan: