Dawg52
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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The worst retirement mistake
- Thread starter ScottishCanadian
- Start date
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brett
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Apr 24, 2010
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- 5,926
We changed our investment strategy significantly when I retired early. Our rule of thumb is the percentage of equities that we hold should equal 100 minus our age. That number includes our investments and the notional value of my DB pension measured by the current value of an annuity for the same monthly income.
We held on to our stocks throughout the downturn. It did not make sense for us to sell and realize a loss. This strategy paid off.
I do get some pangs of guilt when I see how well our equities are doing compared to our bond funds and fixed instruments. But that is really a pang of greed. We can no longer replace money lost in the equity market with earnings. Our overall goal is to have a return that is at least 3-5 percent above inflation, net of fees. Last year was much better than that.
I keep that old saying in the back of my mind....pigs get slaughtered. This may not be the right strategy for everyone but it is working for us and it gives us a higher sense of financial security.
We held on to our stocks throughout the downturn. It did not make sense for us to sell and realize a loss. This strategy paid off.
I do get some pangs of guilt when I see how well our equities are doing compared to our bond funds and fixed instruments. But that is really a pang of greed. We can no longer replace money lost in the equity market with earnings. Our overall goal is to have a return that is at least 3-5 percent above inflation, net of fees. Last year was much better than that.
I keep that old saying in the back of my mind....pigs get slaughtered. This may not be the right strategy for everyone but it is working for us and it gives us a higher sense of financial security.
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