By: Dividend Sensei
The lowest interest rates in history have caused the standard 60/40 retirement portfolio to yield just 1.7% and future inflation-adjusted returns of just 1% to 5% annually are expected.
Thankfully, a diversified and prudently risk-managed portfolio consisting of four high-yield blue-chips, a 60/40 portfolio, and 2% allocation to cryptocurrencies, can potentially deliver 5X the retirement income over the first 15 years alone, and potentially 13X over 30 years.
This portfolio is 80% likely to deliver 12% to 17% inflation-adjusted returns and has a safe withdrawal rate 5X that of a 60/40.
Take out the 2% crypto allocation and this 80/20 high-yield blue-chip portfolio is 80% likely to deliver 8% to 13% inflation-adjusted returns, and has a 3X higher safe withdrawal rate than a 60/40.
Without crypto, this portfolio could deliver 4X the income of a 60/40 over the first 15 years. With crypto 5X the income. All within a diversified and prudently risk-managed retirement portfolio whose yield and risk-adjusted expected returns are nearly 2X that of a 60/40 retirement portfolio. This portfolio can help you retire rich, stay rich in retirement, and potentially help your children and grandchildren retire even richer.