37yo, ~$1.0M household CAD in equities, mostly (XEQT + SCV + some mega-cap tech). Annual spend ~$70–90k. Long horizon.
Considering a 1–3%/yr tail-hedge budget using simple S&P 500 put spreads (12–24mo, laddered), plus keeping liquidity to rebalance in crashes.
My thinking:
• Costs ~2%/yr most years (insurance).
• In a −40–50% crash, could return 5–15× premium, cutting drawdown
Questions for those who’ve actually done this:
1. Did you stick with it through multiple calm years?
2. Any lessons on sizing (too small / too big)?
3. Regrets in hindsight?
4. Anything simpler that genuinely worked in real crashes?