Spanky
Thinks s/he gets paid by the post
33% equity -- planned to increase it to 50%.
Congratulations on your retirement. Like ARB and yourself I will also be 56 in Jan 2012.I agree ripper1.
I'm 56 like ARB57. Retiring in December 2011. Small pension from a former employer that I will tap in 4 years that will cover 10-15% of annual living costs; plus SS (at age 70 I think).
I think I would probably be 60/40 whether I had the pension or not; I need equities as an inflation hedge in the event my longevity is good. But having the pension makes my withdrawal rate more comfortable than if I didn't have it.
I'm retired, and I am staying the course (and will rebalance in January).
My target AA is 45:55 equities:fixed.
If you don't mind, going forward, please let me know whether or not you have a pension and how that factors into your overall investment approach.
Asset allocation considerations for a military pension | Military Retirement & Financial IndependenceA couple of posters have volunteered the fact that they also have a pension. On one hand, depending upon the size of one's nest egg, it would seem that the existence of a pension would "allow" one to be a bit more aggressive with their portfolio (higher percentage of equities.) On the other, having a pension might decrease the importance of growing that nest egg, thus reducing the need for greater exposure to equities. What's your take? If you don't mind, going forward, please let me know whether or not you have a pension and how that factors into your overall investment approach.
FIREd, age 53
AA 32/65/3
Staying the course Still accumulating on a modest scale, diversifying my MF bond holdings with respect to average duration.
When did you sell those calls? Every time I check DVY call prices they seem to be hardly worth the commission, let alone the risk of being called away...Been buying on the dips. Mostly DVY and IVW through FIDO's commission free program. Sold Oct and Nov calls on part of my DVY stash. As you might imagine, they have all expired worthless which so far suits me fine.
I have been retired for 7 years with a Federal pension that covers about 50% of our expenses (could cover 100% in a crisis). Whe I retired I was around 90% equities (I thought like Nords) but gradually moved down to about 60% where I plan to stay. I ultimately concluded that it made sense to view that "discretionary" spending from the portfolio as a simple income stream to secure. I like the reduced volatility and the research that argues for advantages from diversity. I don't see a need to drop to 50% or less as many do because I have a lot of flexibility to back off spending. Without the Pension I would be no higher than 50% and might be 40%.A couple of posters have volunteered the fact that they also have a pension. On one hand, depending upon the size of one's nest egg, it would seem that the existence of a pension would "allow" one to be a bit more aggressive with their portfolio (higher percentage of equities.) On the other, having a pension might decrease the importance of growing that nest egg, thus reducing the need for greater exposure to equities. What's your take?
Sorry, missed this first time through. Thanks for the link. I should give credit to ClifP for also suggesting this idea.Read an article from a site I subscribe a week or two ago to making a compelling case to do the same thing.
Using Options To Go Long Berkshire Hathaway | LIVING OFF DIVIDENDS & PASSIVE INCOME
Part of the FIDO beauty is no commission except to sell the call.When did you sell those calls? Every time I check DVY call prices they seem to be hardly worth the commission, let alone the risk of being called away...
I've been targeting $250/contract or more on Berkshire Hathaway and a small-cap value ETF (IJS).My average call premium is about $80-90 which works out to about 22% annually.
Lots of work for small returns, but hey, it's 2011.
Buffett's already put in a floor at $66/share. The "worst nightmare" is if he or Charlie unexpectedly passes away. (At their ages I doubt that it's very "unexpected".) And if that's what caused shares to dip 20%-30% then I'd buy on margin.
For the record, I'm 56...retired about a year...NO pension. I've been quite conservative on the investment front over the years, but have been buying a bit over the last 2 or 3 months. I'm currently at about 25% equities...75% fixed, but have an eventual equity target of 35-40%. Perhaps a bit higher should things get really cheap.
Your feedback is very much appreciated. Thanks!
I was just using jargon about Berkshire's filing that they'll buy back shares when the stock price drops to within 10% of book value.Isn't $66 a floor only to protect against a 20-30% dip upon Buffet or Charlie's death?
If Buffet finds other opportunities more attractive if the market drops plenty over the next few months, I assume he'll let BRK.B go below $66.
(I'm interested below $70 and margin interested below $60.)