Excellent!! That was very smart. Have fun following them on their way back up. Sounds like you got some winners.
I guess only time will tell whether it was smart or not!
Excellent!! That was very smart. Have fun following them on their way back up. Sounds like you got some winners.
Not to be argumentative, but how do you they're going back up?
Please examine the following:Nineteen years later, the stock market is still way down (and by now I assume people must have lost faith in the stock market)
I realize I haven't accounted for dividend reinvestment here, you'll have to forgive me.
Want2Retire,
But talking about the japanese market since 1989, it makes me wonder where do you invest your money if you are Japanese?
Please examine the following:
^N225: Basic Chart for NIKKEI 225 - Yahoo! Finance
What you are saying is an oft-repeated fallacy.
I came too late to buy into REITs and hold RE (other than my residence) only as part of my total market index. I would add commodities but it may be too late now to add that asset class.
I have asked myself that question many times; imagine you are some working stiff in Japan who just senses things are not good, how do you invest your workers income? I guess real estate was not the answer, probably buy foreign funds while the yen was still high enough.
An what should we do today? All I have done is increase my foreign stocks by 15%. Don't know what other bonds and things to buy. I came too late to buy into REITs and hold RE (other than my residence) only as part of my total market index. I would add commodities but it may be too late now to add that asset class.
I believe a "buckets of money" strategy which leaves 10-15 years of reliable, inflation-adjusted income in "safer" stuff while letting the rest ride in diversified equities would seem to be the trick here.This is why I would urge all of us to build a little slack into our ER plans that will allow us to tighten the belt for a long time without excessive discomfort, should times get tough and stay that way for over a decade.
An what should we do today? All I have done is increase my foreign stocks by 15%. Don't know what other bonds and things to buy. I came too late to buy into REITs and hold RE (other than my residence) only as part of my total market index. I would add commodities but it may be too late now to add that asset class.
I believe a "buckets of money" strategy which leaves 10-15 years of reliable, inflation-adjusted income in "safer" stuff while letting the rest ride in diversified equities would seem to be the trick here.
Personally, I think bonds of almost every stripe except treasuries and agencies are a remarkable bargain right now. You can buy AA rated notes issued by "too large to fail" banks that yield 150 to 200BP over treasuries. You can buy junk at ridiculous yields. You can buy bank loan funds at very attractive prices/yields. Heck, you can buy AAA munis at yields in excess of treasuries.
I know it's just a guess, but I value your opinion. Over what period do you think I should be DCA'ing into these. I want to take a significant stake in some of the bonds you mention. Do you think there is only a month or so to get in before these are higher? Or a year or two?
I know there are several distressed securities funds being set up and when they get involved prices could jump.
"Buckets of money" is a concept popularized by Ray Lucia. What that means (from 40,000 feet) is that you structure your asset allocation in retirement not as a typical "percentage of the portfolio", but into years of income. Each piece of the allocation is said to be a "bucket" and it's designed to provide years of income from "safe" investments so you can ride out stock market volatility and minimize the need to sell stocks while they are down.um...what is the "bucket approach"?
please point me to that...
thanks. i'll check it out."Buckets of money" is a concept popularized by Ray Lucia. What that means (from 40,000 feet) is that you structure your asset allocation in retirement not as a typical "percentage of the portfolio", but into years of income. Each piece of the allocation is said to be a "bucket" and it's designed to provide years of income from "safe" investments so you can ride out stock market volatility and minimize the need to sell stocks while they are down.
http://www.early-retirement.org/for...is-buckets-30725.html?highlight=buckets+lucia
No, it's perfectly legit and it makes sense, IMO. It's just really just a different way to look at asset allocation -- as a number of years of income rather than as a percentage. We usually talk about asset allocation in terms of a percent of assets -- for example, "60% in stocks and 40% in bonds." A "buckets" approach looks at allocation a different way -- several years of immediate income needs in cash, a few more in somewhat more volatile investments, and the rest in stocks that won't need to be "sold low" for at least 14 years. The thinking is that your "safe money" buckets will have a chance to be replenished during a time when stocks are higher -- pretty likely at some point in a 14-year period.thanks. i'll check it out.
is the "buckets" approach one of the sound ones or one of the "avoid like plague" ones?
hope i'm not opening a can of worms with that question