Bond Holdings and FatFire -- Dollar Amount v Percentage
A lot of the discussion about holding bonds, at least in other subs, concerns how bonds serve as ballast during a downturn, a hedge against SORR concerns (less of a thing for FatFire), etc.
I was wondering what folks in this group did, especially those without large bond substitutes (retired partner income, "Friends" - level royalties, etc.). I'm right on the cusp of retirement...or maybe even retired, not sure.
Anyway, assume the following for a hypo: an taxable brokerage of $10M that will be the sole source of income, with a target of approximately $225K spend/expenses per year, which can be met with just dividends and no liquidation. The "percentage" folks would argue an AA of 30-40% bonds no matter what, but when sums get higher, the advice is just too conservative to me. I also want a material portfolio left for my kids/grandkids when I pass.
On these facts, I was thinking of having a roughly $1M allocation, or only about 10%, give or take.
Wondering about others' thoughts under these assumptions. Again, this is just a hypo, my actual numbers are/will be different, but they should hopefully be in the same universe to make the hypo valid. TIA.