Own no stocks? anyone else?

[albireo13]

Our entire retirement savings has been based on 401Ks and IRA funds, also counting on some pensions. We own no stocks themselves. Our funds tend towards 60/40 AA currently, equities/bonds.


Have we been missing out on something? ... poor diversity?
Any thoughts out there?



My Dad was the opposite. He invested heavily in stocks, tending towards those offering dividends. Today his dividends supplies most of his monthly income. He owns no investment funds.


My employer has stock purchase plan but, I never partook of it.



I suppose the fund approach has to consider loss due to the fees. On the other hand I was never interested in worrying about trading, tracking the market, etc. Too busy with life I suppose.

 

[DrRoy]

I also have a 60/40 AA through equity funds and ETF's, but have no individual stocks.

 

[wmc1000]

Currently 80% individual stocks, 20 equity funds.

 

[Dtail]

I am 55/35/10. Yes, I see Apple etc continuing to rise, but I will hold them through the index funds. The majority of my holdings are in TIRA, so the dividend play doesn't work for me.

 

[scrabbler1]

I have about 41% stocks but no individual stocks, only through funds. The last 10 years I worked, I owned shares of employer stock through their ESOP plan. I had to liquidate them when I left. By then, the value of those shares were 1/3 of my total portfolio.

 

[jim584672]

With some brokers offering $0 commissions now it starts to make sense to own your own stocks individually. Put together 100 stocks for your own index. Advantages to this is complete control of your taxes, no surprise year end distributions, micro fine tax loss/gain harvesting. And best of all 0% expense ratio.

 

[joeea]

Our entire retirement savings has been based on 401Ks and IRA funds, also counting on some pensions. We own no stocks themselves. Our funds tend towards 60/40 AA currently, equities/bonds.

Have we been missing out on something? ... poor diversity?
Any thoughts out there?

The only individual stocks I own are from my prior employer. They are currently worth about 11% of my portfolio. I've been holding on to them for the past few years and looking for the right time to sell.

Otherwise I hold a widely diversified array of Mutual Funds and ETFs. You don't need individual stocks for diversity.

I'm not missing out on anything that I care about.

 

[Oz investor]

am heavily in stocks but also have investment properties with solar arrays fitted generating electricity credits ( as well as rental income )

had i planned to retire earlier ( say start planning before 2000 ) i might have been more into investment properties ( plus the inherited share portfolio , which came to me in 2010 ) the time you start planning can make a big difference

 

[street]

I have no individual stocks.

 

[Aerides]

Individual stocks are less than 3% of our assets, and 2/3 of that is laziness/timing (ie, company stocks or things held from long ago we haven't gotten around to selling/taxes, etc.)

The other 1% (and less than that really) is my "fun" account. I do like to play with individual stocks a little, but emphasis on a little.

 

[EastWest Gal]

I have only one individual stock holding; everything else that is equities is in index funds/ETFs. I inherited 11K shares of Chevron stock-my dad’s portfolio from 40 years’ investing at work. The dividends funded his retirement and his portfolio leapfrogged me into FI much earlier than expected. He had small IRA and treasury investments as well. I sold most of the stock upon inheritance, but kept 2+K shares in honor of him. I get $9000/yr from that stock. It is part of my goal of putting away 2years of cash prior to final retirement. I have a set-in-stone goal date of 9/1/19.

 

[corn18]

I am all index funds except, I felt the need to tinker one day so I bought 1 share each in companies that I like and use. It's my own personal index fund:

T
GOOGL
AMZN
AAPL
BRK B
DE
DIS
HD
JNJ
MCD
MSFT
PG
ULTA
UL
VZ

Not efficient, but it scratches my stock itch.

 

[MRG]

I own a few issues. APPL, GOOG, GOOGL, MO, and a little WFC. I held Megacorp for years, the shares were gifted to my 401k. I slowly sold them off till I was under 100k in assets. When Megacorp was acquired those shares were bought out.

Probably should look at taking some off in both AAPL and MO.

 

[bobandsherry]

If you are invested in equity funds your are invested stocks. Perhaps not individual stocks, but you are invested and exposed as if you owned any stock that's in the fund.

 

[calmloki]

Not counting homes, about 22.6% of our net worth is in stocks and bonds. 25% of that amount is in a California tax free bond fund, VCADX. 12.5% of the invested amount is in individual stocks the Gal holds - Alibaba, Costco, Apple, Amazon, JNJ, Home Depot, and a garbage company RSG. The remaining 62.5% is in Vanguard funds and ETFs. Our primary accumulation of worth is in real estate holdings; whether rental, contract, or short term loan.

 

[JoeWras]

I've done the individual stock thing before and had both winners and losers. In the end, the index gives me less heartburn.

With more time on my hands, I may dabble in a stock or two again just for fun. I would be less than $10k total.

 

[mrfeh]

We take the boglehead approach: own only funds based on indices (ie. total ex-US, total US). No individual stocks.

 

[walkinwood]

I gave up on individual stocks after the internet bust confirmed that I am no stock picking genius.

 

[Bimmerbill]

No individual stocks, all mutual funds here. 75% equities/25% bonds.

 

[Car-Guy]

No mutual funds here,,,, ever! Individual stocks for swing trades for the most part. Millions in fixed income.

 

[Which Roger]

The only time I've ever owned an individual stock was when my employer offered company stock at a discount. I see no reason that someone saving for retirement needs to own individual stocks.

 

[COcheesehead]

Equities in ETF's and funds, yes. Individual stocks, no. Every once in a while I will take a flyer on something, the most recent being STZ, bought it when it got hit big, sold the bounce. Those transactions are rare for me though.

 

[kgtest]

Currently 80% individual stocks, 20 equity funds.

I am the exact opposite. 20% stocks, the rest ETFs. and i've outperformed the 3 major indices on average over the past six years.

Not sure there is a single silver bullet.

 

[SpartacusSchmartacus]

Our entire retirement savings has been based on 401Ks and IRA funds, also counting on some pensions. We own no stocks themselves. Our funds tend towards 60/40 AA currently, equities/bonds.


Have we been missing out on something? ... poor diversity?
Any thoughts out there?



My Dad was the opposite. He invested heavily in stocks, tending towards those offering dividends. Today his dividends supplies most of his monthly income. He owns no investment funds.


My employer has stock purchase plan but, I never partook of it.



I suppose the fund approach has to consider loss due to the fees. On the other hand I was never interested in worrying about trading, tracking the market, etc. Too busy with life I suppose.

You did/are doing the right thing. With little interest in stock picking you would be making uninformed "chances" rather than decisions.
The company stock purchase plan should be done but only if you get a serious discount. Then sell that stock and keep the difference, when allowed, usually annually.

 

[Cayman]

One individual stock makes up a larger % of our portfolio than it probably should, but we choose to let it ride. Most of our equity allocation is in index funds.