Anyone comfortable with 100% stock?

[unclemick]

100% stocks, 100% bonds, 100% raw land? - sure no problem - all retires(not ER's) from my monthy retirement luncheon(beware - retired engineers are a dangerous crowd). All were backstopped by a pension from the company we worked for and owned homes.

The horse you rode in on applies - due diligence and understanding the nature of the beast - I would have no problem with 100% stocks (not real estate or individual bonds) because that's closest to what I know.

Balanced Index plus individual stocks for me (for now).

 

[Billy]

We have been 100% long for years...

Billy
Website www.geocities.com/ba264

 

[John Galt]

And I can't imagine any circumstances under which
I would invest in any common stock...............
not for any reason! But, whatever works.
Different strokes, right?

John Galt

 

[Bruce]

There is only one problem with staying even with inflation; If the items you buy go up more than inflation (like health care) your purchasing power will be decreasing. 8)

 

[SDY888]

We are basically 50% real estate + 50% equities.

As we are mid-thirties and both working, we are comfortable with the volitility in return for the longer term cap appreciation (hopefully). Just to make the hairs on the back of the neck stand on end, a big chunk of those equities are Asian / Emerging Market stocks. Yikes!!!!

Our main driver is that we have no access to company pension provision (and are not likely to in future) and we are not entitled to any of our respective home state's benefits like Social Security. Thus we have to plan for a TOTALLY self funded retirement, with little or no safety net.

 

[John Galt]

Hmmmmmmmm, a "TOTALLY self funded retirement".
No SS, no pension, no inheritance. I guess we could do
it but it would not be pretty

John Galt

 

[SDY888]

John,

My wife views this as a "Worry", whereas I choose to take it as a "Challenge".

Either way, it focuses the mind.

Simon

 

[Cut-Throat]

When a lot of folks are comfortable with 100% stocks, that should be the time to be uncomfortable with stocks.

The only solace that I can take from being in stocks is that almost everyone thinks that it is a lousy investment currently.

 

[Hyperborea]

Hmmmmmmmm, a "TOTALLY self funded retirement".
No SS, no pension, no inheritance.  I guess we  could do
it but it would not be pretty

Aren't you happy that society has decided to make sure that the financially incompetent aren't starving in the streets?

 

[John Galt]

Yep! No starving in the streets. That's bad karma.

John Galt

 

[dex]

Aren't you happy that society has decided to make sure that the financially incompetent aren't starving in the streets?

I must tell you that if the same rule of "smarts"/ common sense applied to the USA as it does in most third world countries there would be a lot of people starving in the streets. A couple of examples you say?
The average household credit card debt is $8,000.
I was listening NPR this morning and they had the segment where a caller asks the ethicist a question. This guy says I want to donate blood but because I lived in a particular part of Africa I am not allowed to donate blood. So is it OK for me to lie when I'm questioned at the donation center? I've lied about it in the past. Can you belive this? This guy knows better than all medical authorities and is willing to taint the blood supply!
Eventually, people will be dying in the streets and the government won't be able to do anything about it. The laws of nature and economics eventually prevail.

It would be nice if governments could protect us from ourselves but eventually it catches up with us - look how the value of the dollar is falling.

 

[John Galt]

Hey dex! Anyone waiting for the government to protect
them (from themselves or others) is likely to be disappointed. Now, obviously the government has a role to play, but it has expanded way beyond any
appearance of good sense. For those of you waiting for
the government to solve your problems, I respectfully
suggest you remember the definition of insanity.

John Galt

 

[Michael]

No SS, no pension, no inheritance.

Don't forget no Medicare. An 80 year old couple is looking at $2000/month in private health insurance premiums.

 

[dex]

Hey dex!  Anyone waiting for the government to protect
them (from themselves or others) is likely to be disappointed.  Now, obviously the government has a role to play, but it has expanded way beyond any
appearance of good sense.  For those of you waiting for
the government to solve your problems, I respectfully
suggest you remember the definition of insanity.

John Galt

John,
I think we got where we are because everyone expects it to protect them from the realities of life. Go to most 3rd world countries and the people are more in touch with life. There aren't any safety nets. And, you know what; for all the poverty, injustice etc they may be more in touch with life. While we worry about safe withdrawl rates and do I have enough to retire they are living life - a more real life, a more ... connected life?

 

[Hyperborea]

Go to most 3rd world countries and the people are more in touch with life.  There aren't any safety nets.  And, you know what; for all the poverty, injustice etc they may be more in touch with life.  While we worry about safe withdrawl rates and do I have enough to retire they are living life - a more real life, a more ... connected life?

I think you are romanticising. The "white man's dreams of the noble savage" to put it in an 18th century perspective.

 

[John Galt]

Hey Hyperborea. I think he was romanticizing too, but cut him some slack man! We all have our fantasies.
Hell, I still think I can stay retired comfortably owning
no stocks

John Galt

 

[Michael]

...they are living life - a more real life, a more ... connected life?

Pol Pot killed a million Cambodians, the Hutu Tutsi conflict has resulted in another million people macheted to death by government troops. How is any of this a more real life? I would rather see the government trying to help, however inefficiently, than perpetrating such atrocities. I don't see the attraction of such third world governments. I can be connected just fine right here.

 

[John Galt]

Hello Michael. Third world countries have no attraction for me either. BTW, any student of history can tell you
that the history of mankind (oxymoron?) is largely
atrocities, warfare, genocide and all manner of
horrors. I have a neat little pocket book from
Random House 'Great Events of World History', 90%
killing, mayhem, starvation and disease. Not a pretty
picture.

John Galt