Horseman

WTF? Might be the dumbest thing you've ever said.

Same. Had to build a new computer after 10 years because the old machine wouldn't decode H265 video containers now default from the newest GoPro cameras. I hope @Cdub100 isn't surfing around youtube like a teenager, but, if you need to watch a video on there just download it with yt-dlp so you don't have to put up with their nonsense.

BFD VPN

Although I'm more risk adverse with my equity-fixed income allocation I'm taking risk out of the equity portion by not buying any more individual stocks (Verizon/Pfizer). Looking back 9 years ago when 70% of my portfolio was in just two stocks, AMZN and GOOG, it was a huge risk. The risk paid off, but, I don't want nor need that type of risk anymore. I just recently sold half of both of those positions to free up funds to get international exposure, bond exposure and the rest went into index funds. Sold a bunch of other individual stocks too and will likely keep doing that moving into retirement. To your point though, a High Dividend Fund like FDVV might be a good idea.

We've moved on. Put the troll on ignore.

Tips for investors. 1 - Expense ratios. It's the one thing you have control over that can directly improve your returns. If you have an account at Fidelity they have a set of ZERO cost mutual funds. There are also a bunch of funds that compete with the Vanguard funds that they set up at lower expense ratios. https://www.fidelity.com/mutual-funds/investing-ideas/index-funds?imm_pid=700000001009773&immid=100820_SEA&imm_eid=ep35415530231&utm_source=GOOGLE&utm_medium=paid_search&utm_account_id=700000001009773&utm_campaign=MUT&utm_content=58700004265124983&utm_term=fidelity+zero+index+funds&utm_campaign_id=100820&utm_id=71700000038714008&gad_source=1&gclid=EAIaIQobChMIkuzco_ffgwMV6ROtBh06XwdyEAAYASAAEgI5O_D_BwE&gclsrc=aw.ds 2 - If you have brokerage accounts at Merrill Edge through Bank of America your cash isn't making any interest (unlike Fidelity). If you have a savings account at BoA, set this up via Merrill. You have to have 100K initial deposited, but once set up you don't have to maintain a minimum amount for what they call a "Preferred Deposit" account. But the subscribe button is kind of hidden. Go to Research>Cash Management Solutions and scroll all the way to the bottom of the page. That way your cash will make the ~5% interest right now.

Another discussion worth having is what to do when interest rates go down. By all accounts this is going to be a slow burn, the feds only projecting 0.75% decrease in 2024 which of course is dependent on how inflation goes. But 5% interest in money markets isn't going to last forever and if you're like me I have a considerable amount there because I will take a guaranteed 5% when there is zero risk. I'm about 10% in money market cash right now, which I have not counted towards my allocation. So I guess that means I really am closer to 65-35, but that's not currently my goal. 1 - Buy more bonds since bond values tend to rise as interest rates drop. 2 - If it is indeed a soft landing there are people that will be moving safe money market cash back into stocks. 3 - Seems to me the two listed above are trying to time the market. I think I following the rate drops, rebalancing, and DCA'ing the money into the target allocations.

I wouldn't take a single anonymous person's advise, we're just having a discussion. All really good points. I am more risk adverse than most people. I'd definitely tinker with it while in retirement though and go less risky as the years progress. Might even move to 70-30 when I retire. I just don't see myself settling for 5% that you mentioned previously. You can make 5% sitting in a money market right now. Another point is that when social security kicks in that is fixed income that nobody ever seems to count.

I'm going to use this thought to try and get this thread back on track. I'm not so sure I agree with this philosophy, especially when retiring early. I'd like to know @Strike's thoughts as he referred All About Asset Allocation to me which after reading I read 5 other books on the subject. But that book was written over 10 years ago and in my argument below, have times changed? My argument against being conservative at retirement and questioning the application of a 60-40 stock to bond portfolio: 1 - What is magic about the date you retire? Even if you wait to 65 to retire you still have 20-30 years to recover from a downturn in the market. The last 3 recover periods since the tech bubble in 2000 (time it took for the S&P 500 to return to highs): 2000 Tech - 7 years 2008 Global - 5 years 2020 Covid - 7 months I hope we are seeing a trend of shorter and shorter recovery periods. But, if you're going to be in the market more than 10 years, not 10 years to retirement, you should be able to recover from any stock market crash. You might note that the recovery periods total 12 years over the past 24 years and that is the argument for 50% fixed income and 50% equity, but it's not. 2 - Out of the recovery times listed above here is the amount of time that the market was actually in downfall before equities started to gain again: 2000 Tech - 3 years out of 7 2008 Global - 2 years out of 5 2020 Covid - 2 months out of 7 The crash is always less than half the time than it takes for equities to recover. In other words equities are actually rising more than half the time during a recession. Doing the simple math again I think that is an argument for 25% fixed income and 75% equity portfolio. Not 50-50 or 60-40. 3 - In a recent discussion with my financial advisor about this he mentioned that moving forward it might be the end of the 60-40 stock to bond portfolio as the standard. Take a look at this comparison between Vanguards Total Bond fund and Total Stock Market fund: https://www.portfoliovisualizer.com/fund-performance?s=y&sl=sKIZkKgpghaF8q0seX0XX The reason for holding fixed income jumps off the page during the 2008 Global Crisis. But if you look at Covid since the fixed income market stopped being inversely correlated to equities. You didn't get to reap the benefits of being heavy in fixed income for 2020 Covid or the down market in 2022. Not saying that trend continues, but who knows. However, even if it continues you still can't deny the importance of some fixed income for rebalancing purposes. Again my argument for 25% fixed income and 75% equity even in a total equity driven market. Would love anybody to shoot holes in the above. I'm mid 50's and looking to retire this year. Convince me I need to go higher fixed income. My current asset allocation: 30% Big Cap 10% Small Cap 5% Micro Cap 20% International 10% REIT 20% Bond 5% High Yield Bond

For a normal person his age, maybe. Nobody in debt like him has has 200k liquid or a million in 401k. And why so conservative? Hes not retiring for another 10 years. Even at retirement age, you arent planning to die soon so the majority of cash will still be invest for a long time.

Should I donate a weeks worth of gambling winnings so @Raven Fan can afford to buy his wife a decent gift for a change? Sometimes I feel bad for the poor and less fortunate. On the other hand everyone here thinks he is a giant asshat.

No. 1.25 compounded over 10 years at a conservative 8% is 2.7 million without any further contributions. Plus hes repeatedly used "hope" and admitted hes in debt. He has a few hundred thousand in his 401k that hes never paid attention to.

Good choice. Stay down. You have a tiny point here. When you get used to seeing 20- 30k regular daily swings in your accounts just from the whims of the market it makes worrying about a 1000 dollar purchase seem silly. But I still hate the cable pig monopolies.

I've said it a million times. Self made millionaires like myself became that way because we are smart with money, the opposite of being a baller. You're just butt hurt (well more than usual) because you opened your fat mouth and told everyone how poor you really are.

. Better than mine.

Of course I can afford it. You should really learn when to drop arguments that make you look dumb. Anyone can afford it. The bum on the street can afford $6 after a couple hours of begging. Chooses to <> cant.

More than. > In IT but doesnt understand code apparently.

Buying things just because you can. Gambling. Two things you'll never hear from an Investment Adviser.

Why do you think "hope to have 2m 10 years from now" is so funny?

To be fair, I havent been in any kind of debt for decades.

Rumor is Liz Warren has heard of the mother in law story that didnt leave anything for the poor Raven Fan. Word on the street she is working on sneaking some funding in the next Ukraine package.

I have more in my retirement accounts now than you hope to have 10 years from now. So there is that.

You said 2017 rates. You also need to know what that is, exactly, if you're leveraged. You're not, you're just in debt. "Think 2017 rates"

Right. To be leveraged you have to have that amount or more invested making a better return. You're not leveraged, you're in debt.