Mike Milligan explains Dr. Wade Pfau's framework: use bonds and annuities to cover essential expenses like food and housing, then invest remaining money in stocks for discretionary spending on travel and hobbies. This approach gives every dollar a specific job and separates the income you need from the income you want.
So, uh, Dr. Pfau's method suggests pairing predictable expenses like food, housing, and healthcare with secure bond-like assets such as annuities or TIPS ladders. So Treasury Inflation Protected Securities ladders. Then the more volatile equity holdings can fund discretionary spending like travel, hobbies, and grandkid adventures. And we all want to have those, Gary. Yeah. It's like giving every dollar a job and every risk a cushion. And that's one of the things that when we build portfolios in the One of a Kind Financial Plans, we want to do. Where he talks about using different investments for the needs and the wants, we talk about having the income you need in retirement and the income you want. So our philosophies are very well paired with Dr. Pfau's.
How to evaluate AI growth stocks (Nvidia, Oracle, CoreWeave) beyond market hype
How to evaluate AI growth stocks (Nvidia, Oracle, CoreWeave) beyond market hype
