Lessons from my first retirement portfolio. Post #0.

I’ve been quiet lately, focusing on building my retirement portfolio. Since the name our community is “Invest and retire”, I thought I’d share my journey—struggles, insights, and all. I hope you’ll find it engaging and chime in with ideas! This is the first in a series of posts exploring my lessons learned.

▪️What is a Retirement Portfolio?

We’ve discussed this before, but it’s worth revisiting. For me, a retirement portfolio generates steady, reliable income year after year to cover essentials like housing, food, and healthcare, complementing pensions or Social Security.

A key we have also discussed, is avoiding withdrawals in negative years unless the portfolio is significantly larger than the withdrawn amount. For example, a $300K portfolio targeting $100K annual income can’t sustain a $100K withdrawal in a flat year. You’d be left with $200K, and earning $200K the next year to recover—while maintaining income—is nearly impossible due to psychological and financial pressure.

Another priority is passive management. As time passes, my portfolio should require minimal maintenance, allowing me to focus on retirement rather than active trading.

▪️My Portfolio Allocation

With these goals in mind, I’ve allocated ~40% to bonds and ~60% to equities. The equity portion is split into three buckets: Core (stable, low-volatility stocks), Income (high-yield assets), and Growth (higher-risk, higher-reward). Additionally, I’ve dedicated ~5% to cryptocurrencies and ~5% to precious metals, both via ETFs for simplicity and passive management.

▪️Active Trading for Short-Term Income

While I aim for a passive portfolio long-term, I plan to be active in the market for the next few years. To generate additional cash, I’ll trade options, focusing on selling covered calls and using short-term income strategies like vertical credit spreads. These approaches will supplement my portfolio’s income while I refine its structure.

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