Quick background: 48 years old, retiring (sort of) at 53. Own 3 businesses, inc. lawn care, web design and 48 rental units. Most of our portfolio is with our financial advisor who uses a G/I mix with about a 50/50 split stock bond (though he might throw in a bit of commodity or REIT from time to time.) I manage our SIMPLE's and ROTHS and that is what my question is about:
For years I've been battling inside between surrendering to a simple "rules based" investment strategy and a second strategy, which is simply expanding a little: 15-18 funds, diversifying a bit more, adding some "alternative" funds (Int'l RE, domestic RE, Limited pships, etc.) - the problem is, I find the 15-18 fund approach a little too much work. I don't manage it impeccable. (i.e. I like the tactical asset allocation approach but simply don't take enough time to watch every position's 300 day moving average) and rebalancing is really a bear.
So I think what I need to discover is the answer to 2 questions: A.) Is there a way to do significantly better than doing a 5-6 fund rules based asset allocation using Vanguard funds and B.) if there IS a way, am I THE MAN for the job? In other words, even if I fiind a metod that will give me 12% a year vs. 8% a year, am I likely to do the work needed to make that 12% possibility a reality?
I'm wondering if this post brings up any thoughts with any of you? Have any of you had similar internal battles? did you find answers? If you surrendered to simplicity, did the "itch to be creative" drive you nuts
Thanks so much'!
Ken
For years I've been battling inside between surrendering to a simple "rules based" investment strategy and a second strategy, which is simply expanding a little: 15-18 funds, diversifying a bit more, adding some "alternative" funds (Int'l RE, domestic RE, Limited pships, etc.) - the problem is, I find the 15-18 fund approach a little too much work. I don't manage it impeccable. (i.e. I like the tactical asset allocation approach but simply don't take enough time to watch every position's 300 day moving average) and rebalancing is really a bear.
So I think what I need to discover is the answer to 2 questions: A.) Is there a way to do significantly better than doing a 5-6 fund rules based asset allocation using Vanguard funds and B.) if there IS a way, am I THE MAN for the job? In other words, even if I fiind a metod that will give me 12% a year vs. 8% a year, am I likely to do the work needed to make that 12% possibility a reality?
I'm wondering if this post brings up any thoughts with any of you? Have any of you had similar internal battles? did you find answers? If you surrendered to simplicity, did the "itch to be creative" drive you nuts
Thanks so much'!
Ken