What is your net worth?

[Raven Fan 362]

3 minutes ago, Horseman said:

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

Sure you do.

Rich guys always need to pirate streams and can’t afford $500 bets.

Your own words have outed your larping add you homo twink.

Poor, anxious, and gay.

Love this for you.

[Horseman 2,438]

Just now, Raven Fan said:

Sure you do.

Rich guys always need to pirate streams and can’t afford $500 bets.

Your own words have outed your larping add you homo twink.

Poor, anxious, and gay.

Love this for you.

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

[Raven Fan 362]

Just now, Horseman said:

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

You didn’t take advantage of rates close to zero?

Is that why you need to pirate streams and can’t afford $500 bets?

LOLOLOLOL

You’re poor, gay, and dumb!

[Raven Fan 362]

1 minute ago, Horseman said:

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

LOL

It’s called cope.

You need to pirate streams and can’t afford to lose $500.

You’re poor, dumb, and gay.

[Horseman 2,438]

5 minutes ago, Raven Fan said:

LOL

It’s called cope.

You need to pirate streams and can’t afford to lose $500.

You’re poor, dumb, and gay.

Buying things just because you can.

Gambling. 

Two things you'll never hear from an Investment Adviser.  

[thegeneral 3,077]

16 minutes ago, Horseman said:

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

That all?

[Horseman 2,438]

Just now, thegeneral said:

That all?

More than. >

In IT but doesnt understand code apparently. 

[Raven Fan 362]

2 minutes ago, Horseman said:

Buying things just because you can.

Gambling. 

Two things you'll never hear from an Investment Adviser.  

You can’t afford a $6 stream.  You have to steal it.

And moron did you forget you lied yesterday about how much you gamble each week?

Holy epic smack down I’m actually starting to feel sorry for you.

[Hardcore troubadour 15,171]

So ass rot thinks someone can afford a smart tv and not six dollars? 

[Horseman 2,438]

Just now, Raven Fan said:

You can’t afford a $6 stream.  You have to steal it.

And moron did you forget you lied yesterday about how much you gamble each week?

Holy epic smack down I’m actually starting to feel sorry for you.

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.  

[Horseman 2,438]

Just now, Hardcore troubadour said:

So ass rot thinks someone can afford a smart tv and not six dollars? 

. Better than mine.  

[Raven Fan 362]

Just now, Horseman said:

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.  

Ballers always “choose” to steal streams…oh that’s right they don’t.

You can’t afford it. You’re poor.

LOL

[Raven Fan 362]

4 minutes ago, Hardcore troubadour said:

So ass rot thinks someone can afford a smart tv and not six dollars? 

He overextended himself buying the tv and now has to steal streams?

LOLOLOL

[Horseman 2,438]

2 minutes ago, Raven Fan said:

Ballers always “choose” to steal streams…oh that’s right they don’t.

You can’t afford it. You’re poor.

LOL

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. 

[nobody 2,634]

If you guys really want to settle this, why don't you just post specific numbers?

[Raven Fan 362]

Just now, Horseman said:

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. 

Self made millions DGAF about $6 you idiot.  Time is money.  Ballers don’t spend the time to pirate streams to save $6.

 You can’t afford a $6 stream and have to lie on the internet to strangers.

What a SAD IRL you must have.

I’m going to stop picking on you.  Your life sucks enough already.

[Raven Fan 362]

1 minute ago, nobody said:

If you guys really want to settle this, why don't you just post specific numbers?

I’ve posted actual non larping numbers.  Guess who hasn’t. 

[Horseman 2,438]

6 minutes ago, Raven Fan said:

Self made millions DGAF about $6 you idiot.  Time is money.  Ballers don’t spend the time to pirate streams to save $6.

 You can’t afford a $6 stream and have to lie on the internet to strangers.

What a SAD IRL you must have.

I’m going to stop picking on you.  Your life sucks enough already.

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.  

[nobody 2,634]

All I saw was "hope to have $2M by the time you retire" which I took to mean you are probably somewhere less than that now in your retirement accounts and probably doesn't include property if you own any.

So I'm assuming you probably have about 1.25M between savings, stock, and retirement accounts.  I'm also assuming you wouldn't keep your retirement in stocks as you get closer to retirement.

That seems legit to me.

[Horseman 2,438]

2 minutes ago, nobody said:

All I saw was "hope to have $2M by the time you retire" which I took to mean you are probably somewhere less than that now in your retirement accounts and probably doesn't include property if you own any.

So I'm assuming you probably have about 1.25M between savings, stock, and retirement accounts.  I'm also assuming you wouldn't keep your retirement in stocks as you get closer to retirement.

That seems legit to me.

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.  

 

[nobody 2,634]

18 minutes ago, Horseman said:

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.  

 

Don't you assume liquid savings should be about $200k which you'll only get 5% out of.

Then you have stocks for another 400k that you'll probably remain aggressive with over the whole time which you can assume 8%.

Then I'm thinking 600-ish in the 401k, you'd probably go transition to something more conservative to protect the principle so he's probably looking at 5% again toward the last 3-5 years.

[Horseman 2,438]

11 hours ago, nobody said:

Don't you assume liquid savings should be about $200k which you'll only get 5% out of.

Then you have stocks for another 400k that you'll probably remain aggressive with over the whole time which you can assume 8%.

Then I'm thinking 600-ish in the 401k, you'd probably go transition to something more conservative to protect the principle so he's probably looking at 5% again toward the last 3-5 years.

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.  

 

[Horseman 2,438]

13 hours ago, nobody said:

You'd probably go transition to something more conservative to protect the principle so he's probably looking at 5% again toward the last 3-5 years.

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&amp;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

[nobody 2,634]

Just to be clear, I don't want to convince anybody of anything.  It's your money, you should do what you think is best.  In fact please don't do anything based on anything I say.

That said, I think it depends on what your goals are.  If the goal is to make as much money as you can before you die, it probably makes sense to keep an aggressive split.  If the goal is to ensure you can maintain your standard of living until you die, once you hit that point, why take any risk?

[Hardcore troubadour 15,171]

Not much. It has a bunch of tears in it. I guess I’ll get a new one in the spring. 

[Horseman 2,438]

42 minutes ago, nobody said:

Just to be clear, I don't want to convince anybody of anything.  It's your money, you should do what you think is best.  In fact please don't do anything based on anything I say.

That said, I think it depends on what your goals are.  If the goal is to make as much money as you can before you die, it probably makes sense to keep an aggressive split.  If the goal is to ensure you can maintain your standard of living until you die, once you hit that point, why take any risk?

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. 

[Horseman 2,438]

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. 

[Horseman 2,438]

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&amp;immid=100820_SEA&amp;imm_eid=ep35415530231&amp;utm_source=GOOGLE&amp;utm_medium=paid_search&amp;utm_account_id=700000001009773&amp;utm_campaign=MUT&amp;utm_content=58700004265124983&amp;utm_term=fidelity+zero+index+funds&amp;utm_campaign_id=100820&amp;utm_id=71700000038714008&amp;gad_source=1&amp;gclid=EAIaIQobChMIkuzco_ffgwMV6ROtBh06XwdyEAAYASAAEgI5O_D_BwE&amp;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.

[OldMaid 2,130]

I think it’d be faster if you both just drop trou and get the measuring sticks out now.

[Horseman 2,438]

1 minute ago, OldMaid said:

I think it’d be faster if you both just drop trou and get the measuring sticks out now.

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

[nobody 2,634]

3 hours ago, Horseman said:

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 knew you wouldn't take any advice from me.  I just wanted to make sure everyone knows I'm just some schmo that just likes talking about financial stuff.  I don't want to be responsible for anyone's finances but my own.

And for my part, I don't put a lot of stock in social security when I'm doing retirement planning.  By the time I get there the social security age will probably be 72 or some shìt, and I can't see myself working to even the current ss age.

[nobody 2,634]

3 hours ago, Horseman said:

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. 

As interest rates come down, I'd expect the dividend stocks to go up.  I'd probably look for safe dividends payers like utilities and maybe a Verizon.  Pfizer disgusts me, but I'd probably invest in them since I might as well profit on their ability to manipulate the public.  

I doubt the fed starts dropping prime rates though unless we have some sort of recession looming.

[Horseman 2,438]

37 minutes ago, nobody said:

As interest rates come down, I'd expect the dividend stocks to go up.  I'd probably look for safe dividends payers like utilities and maybe a Verizon.  Pfizer disgusts me, but I'd probably invest in them since I might as well profit on their ability to manipulate the public.  

I doubt the fed starts dropping prime rates though unless we have some sort of recession looming.

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.  

[Mark Davis 375]

When it comes to asset splits I'd say it has to do with level of wealth as well as age.  If you're 45 or 50, and your net worth is under $1MM you want to be more aggressive than someone who might be at $5MM.  That person with the larger net worth has already won the game, it's about making sure you don't blow it before the clock runs out by taking unnecessary risks.  You can take the lower returns and never worry about living a very affluent lifestyle.

[edjr 6,579]

This is like when I see people on TV that have to tell people how smart they are. 

[seafoam1 2,879]

12 minutes ago, edjr said:

This is like when I see people on TV that have to tell people how smart they are. 

You do typify that. Watching trash and following that in your own life.

Self awareness is your strength it seems. 

[thegeneral 3,077]

48 minutes ago, edjr said:

This is like when I see people on TV that have to tell people how smart they are. 

[peenie 1,906]

I finally purchased a home so I guess I’m in the negative. 

[Strike 5,360]

7 minutes ago, peenie said:

I finally purchased a home so I guess I’m in the negative. 

Congratulations

[Horseman 2,438]

1 hour ago, Mark Davis said:

When it comes to asset splits I'd say it has to do with level of wealth as well as age.  If you're 45 or 50, and your net worth is under $1MM you want to be more aggressive than someone who might be at $5MM.  That person with the larger net worth has already won the game, it's about making sure you don't blow it before the clock runs out by taking unnecessary risks.  You can take the lower returns and never worry about living a very affluent lifestyle.

At age 50 the clock isnt going to run out for 30 more years.  But yeah 2m (40%) making 5% is a good amount safely.  Very convincing.