cute fuzzy bunny
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Which is pretty much what my plan is...
Spanky said:Back to your original question - you do not need any more bonds. You can simply invest in high dividend stocks or funds and live off the dividends. Also, it might not be a bad idea to have a couple of years of emergency cash in a money market account.
dm said:This is what I think I'll do. It still puts my after tax allocation at around 80% stocks.
Thanks everyone.
: Your portfolio seems devoid of a bond (or similar) position as well as a cash (CD, MM etc.) position. Is this by design or do you not consider cash as part of your portfolio or...?
"This is the seventh year in a row that I don't show any bond funds in my portfolio and, from time to time, FundAlarm readers ask me why I've left such a gap......It's a good question, and in last year's version of this exercise I addressed it as follows. I still feel basically the same way, though at some point in the next few years I probably will begin to lighten up on stocks, maybe down to the 80-85% range from 100% today.
[Below is from the discussion of my portfolio in the Feb 2006 Highlights and Commentary]
Spanky said:In short, if you are working for the government or receiving a "nice" pension, you do not need any bonds.
You & I may be able to have a conversation about hedging assets & liabilities and balancing maturities & durations, but I suspect that doesn't happen very often among the 20-something crowd or from the mutual-fund reps.ats5g said:If you going to take your human capital into account as an asset, shouldn't we also take your debts into account?
For example, if you're young with a secure job, and have a huge mortgage, you could be long long-term TIPS or bonds, but short long term mortgage backed bonds, right?
So, the mortgage could cancel out your human capital somewhat. And by the time you pay off the mortgage, your human capital could be very small.
Maybe I'll just go with a fairly high stock allocation with the money I have to invest. Something like 85/15.
Splitter said:According to most retirement withdrawal studies, including the one below from the FPA Journal, allocations above 75% stocks aren't actually helpful during retirement.
heyyou said:Thanks for the chart, Cb. To retain that info, I need reinforcement occasionally. First saw one in Roger Gibson's book, "Asset Allocation." Note how far left (low deviation) the 4-way portfolio is.