Value fund buy and hold - 10 years later

[unclemick]

Yep - I would replace #2 with invest as early as you can, as much as you can, as often as you can and keep the faith, stay the course - don't worry about what you can't afford to lose - if you're dead you can't take with you.

Faith, time in the market, and diversification.

Doing nothing is intelligent behavior.

Guess who I'm quoting?

heh heh heh -

85% Target Retirement 2015, 15% Norwegian widow stocks(to keep the hormones happy) Ballpark 4% SEC yield.

 

[Grep]

The part of #2 that I have bolded is a cliche that cannot be followed by an ordinary person who has to rely on his portfolio for his retirement.

Many people have retired, and retired well, without any significant investments in equities. In fact, I'd wager that most people have done so, and will continue to do so. The core of my own savings, which taken alone is fully adequate for early retirement, was made without equities.

Of course people cannot "afford to lose" their (entire?) investments on the eve of retirement. That is why people are advised to gradually reduce risk to the degree that is safe enough not to jeopardize their retirements as they approach that date. The latter is the very intention of the target retirement type funds (I don't use these personally, but people could do worse). Thus, don't risk more than you can afford to lose.

 

[unclemick]

Boy o boy o boy - what part of SEC yield don't people understand. They went thru this long debate over at Boglehead's forum.

If I were 'Curmudgeon for a day' - I would sentence everyone to shut off their computers/and maybe cable tv - dress like 1948 and go stand by the mailbox until the mailman brought their dividend/interest checks - WHICH they wouldn't get unless they could hum a few bars of 'gimme that old time religion' - in Norwegian!

And pssst Wellesley to youse too.

heh heh heh - just think after 15 yrs of ER - I graduate at 66 into crusty ole phartness this year.

Me and my Curmudgeon certificate are gonna have fun and put Missoula behind us. Heck I may even start using scented dryer sheets - generic of course. ok ok 17 on the test on the 'other' thread.

 

[yakers]

Unclemick, how are you ding with Wellesley, target retirement and your DRIP stocks? We have a pretty similar setup, DW's IRA is in Wellesley and my main IRA is in a target retirement fund. I also have some 'dividend' stocks. DW retired two years ago, I retired March 08, so far we have not drawn from our IRAs, we planned to do that next year. Despite this conservative portfolio we were down 18% last year. I don't know how I would feel if I were drawing down a portfolio that was going down already. Are your dividends enough that you are not selling any shares?

 

[Grep]

Boy o boy o boy - what part of SEC yield don't people understand.

Did you have any point to make that was relevant to quoting my post? Or was it just another opportunity to go on about Norwegian Widows and Psst-Wellesley?

By the way, I don't own Wellesley, but I agree it's fine for retirees.

 

[unclemick]

Did you have any point to make that was relevant to quoting my post? Or was it just another opportunity to go on about Norwegian Widows and Psst-Wellesley?

By the way, I don't own Wellesley, but I agree it's fine for retirees.

Yep - you got it right - you don't even need #2. My fear/rant/gripe/etc is that many people don't know what they can afford to lose - they see a large market fluctuation in their portfolio and sell in panic rather than stay the course.

Yakers - I haven't owned Wellesley since the 1980's. It stems from the old CFB days when he mentioned it as an example of a balanced value fund with a long history where SEC yield was a strong consideration.

Alas by quick calculation - my Norwegian widow stocks were -32% at low Mr Market wise and -17% dividend yield wise 2008 vs 2007 - not fun but livable. Target 2015 you can read it and weep on the Vanguard website - maybe -25% down at low Mr Market and my SEC yield climbed but I haven't checked my ding in $. Ballpark I cut expenses in 2007 roughly 25% - not a problem in my case - except I'm not getting any younger and need to keep spending up.

Guilty as charged - I have been known to zip in the Norwegian widow or pssst Wellesley in any thread availible.

It's what I do.

heh heh heh - The utes, food, oil, drug were ok and then there were div crashes - BAC, C, JPM and DOW among others. 33 stocks.

 

[haha]

heh heh heh - The utes, food, oil, drug were ok and then there were div crashes - BAC, C, JPM and DOW among others. 33 stocks.

I didn't realize you did so much with individual stocks, since you usually characterize that as testosterone driven.

I guess you are basically soaked in that stuff.

Ha

 

[HFWR]

I didn't realize you did so much with individual stocks, since you usually characterize that as testosterone driven.

I guess you are basically soaked in that stuff.

Ha

The infamous "filing cabinet"...

 

[unclemick]

I didn't realize you did so much with individual stocks, since you usually characterize that as testosterone driven.

I guess you are basically soaked in that stuff.

Ha

Hormones. Only 15% of total portfolio.

Besides -sans intervention - I can quit anytime.



heh heh heh - And then there is my obsession with the Saint's - Superbowl next season for sure.

 

[Grep]

Yep - you got it right - you don't even need #2.

I'd suggest otherwise; that risk is an important factor that should be taken into account (e.g., reduced) as one's human capital declines. But as I said, I was not attempting to come up with The Rules for one and all.

Cheers.