|
04-18-2013, 12:15 PM
|
#1
|
Thinks s/he gets paid by the post
Join Date: Feb 2011
Posts: 1,796
|
CNBC Retirement plans
Anyone else catch Bob Pisani's segments on CNBC regarding retirement potfolios for 30/50/70 yr olds using ETF's? The one for 50yr olds is here-
CNBC ETF Retirement Portfolio -- Target 50-Year-Old
Have not worked my way through all the individual holdings but it seems like an overly complex plan by committee. Doe one really need 17 different ETF's for adequate diversification?
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
04-18-2013, 12:57 PM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
|
I think once you get beyond 5-6 equity asset classes, additional holdings produce rapidly diminishing returns in terms of diversification and noncorrelation. And if you don't include "alternative" equity classes such as real estate and natural resources, you might not even need that many.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
|
|
|
04-18-2013, 01:22 PM
|
#3
|
Thinks s/he gets paid by the post
Join Date: Nov 2012
Location: Madeira Beach Fl
Posts: 1,403
|
__________________
_______________________________________________
"A man is a success if he gets up in the morning and goes to bed at night and in between does what he wants to do" --Bob Dylan.
|
|
|
04-18-2013, 01:27 PM
|
#4
|
Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
|
There are just too many funds here and obviously they are all ETFs as that's what is being pushed here......it's scary that someone might come to the article and just say "I'll copy this exactly" and then end up trying to track everything and trading too much and racking up fees. Also maybe ETFs aren't the full picture, would mutual funds be a better vehicle, would an SPIA be appropriate, maybe some CDs etc.
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”
Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
|
|
|
04-18-2013, 01:53 PM
|
#5
|
Moderator
Join Date: Jul 2010
Posts: 7,922
|
Quote:
Originally Posted by nun
There are just too many funds here and obviously they are all ETFs as that's what is being pushed here......it's scary that someone might come to the article and just say "I'll copy this exactly" and then end up trying to track everything and trading too much and racking up fees. Also maybe ETFs aren't the full picture, would mutual funds be a better vehicle, would an SPIA be appropriate, maybe some CDs etc.
|
+1 To be prudent, one should read prospectuses, annual reports, etc. and I can't imagine anyone doing that with this mix.
That said, I'm guilty of not reading all of mine and I have a much simpler mix.
__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
|
|
|
04-18-2013, 02:03 PM
|
#6
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,263
|
Way more complex than needed IMO I wonder what the weighted average ER is.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
|
|
|
04-18-2013, 02:32 PM
|
#7
|
Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
|
Quote:
Originally Posted by pb4uski
Way more complex than needed IMO I wonder what the weighted average ER is.
|
I looked at some costs for the biggest holdings and they were 0.2%ish, ok but there's trading to consider as well.
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”
Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
|
|
|
04-18-2013, 03:05 PM
|
#8
|
Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 4,366
|
Not something I would recommend for someone starting out or wanting something simple. And an experienced investor would probably have something different in mind. So the target audience seems rather limited to me. However, my portfolio has even more funds in it.
|
|
|
04-18-2013, 06:39 PM
|
#9
|
Confused about dryer sheets
Join Date: Jan 2013
Posts: 9
|
17 ETFs in a portfolio is way too many. You get overlap from that many which is not necessary, plus you have to consider brokerage costs of buying those. I use 5 iShares Index ETFs in my portfolio through Fidelity and do not pay brokerage costs. Fidelity has an arrangement with iShares whereby they are able to offer 65 ETFs free of trading cost; it's a great setup.
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|