|
08-05-2020, 06:48 AM
|
#1
|
Recycles dryer sheets
Join Date: Mar 2017
Location: Mid Town
Posts: 119
|
Hypothetical Portfolio
How bad, how ugly?
50/50 AA with a 3% draw down.
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
08-05-2020, 07:08 AM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
|
Not readable.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
|
|
|
08-05-2020, 07:38 AM
|
#3
|
Full time employment: Posting here.
Join Date: Mar 2016
Location: An island off the coast of Florida. (Ok - if you really need to know it's Vero Beach)
Posts: 633
|
Can't even tell what the question is all about or response solicited.
__________________
DW and I are 62/62. 100% equities 31 years. FIRE'd August 2019. Non-cola pension cashed out Dec 2022 before segmentation rates reduced balance - rolled to MM fund, max SS for DH and DW at FRA. Mega retiree health available. IRA rollover from 401k Jan 2020 for NUA treatment. LTCG for 3 years. Next few years will be IRA cash withdrawals or until Stock Market recovers. AA 33% stocks, 67% MM and T-Bills. Rising equity glidepath.
|
|
|
08-05-2020, 07:39 AM
|
#4
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
|
+1 not sure what it all means
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
|
|
|
08-05-2020, 08:14 AM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2017
Location: City
Posts: 10,337
|
Quote:
Originally Posted by pb4uski
+1 not sure what it all means
|
It doesn't mean anything. Drawdowns don't matter. Total return is what matters.
|
|
|
08-05-2020, 08:42 AM
|
#6
|
Recycles dryer sheets
Join Date: Mar 2017
Location: Mid Town
Posts: 119
|
Quote:
Originally Posted by pb4uski
+1 not sure what it all means
|
Quote:
Originally Posted by pb4uski
Not readable.
|
Quote:
Originally Posted by atmsmshr
Can't even tell what the question is all about or response solicited.
|
Quote:
Originally Posted by OldShooter
It doesn't mean anything. Drawdowns don't matter. Total return is what matters.
|
Scenario is 1.7mil 200k cash and 50/50 AA FBNDX/VTSMX 500k in each back tested with a 3% draw down annually.
In the chart shown I am wondering if this a typical scenario.
Thanks,
oh and sorry for confusion.
|
|
|
08-05-2020, 08:46 AM
|
#7
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2017
Location: City
Posts: 10,337
|
Quote:
Originally Posted by augam
...I am wondering if this a typical scenario. ...
|
Yes. It is typical for the market to go down sometimes.
Edit: It is also typical for the market to go up sometimes.
|
|
|
08-05-2020, 10:45 AM
|
#8
|
Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 4,366
|
I assume my 75/25 would look worse. I'm fine with that.
But this is such a short time, during a mostly bull market, that I don't think any general conclusions should be drawn.
|
|
|
08-05-2020, 11:00 AM
|
#9
|
Thinks s/he gets paid by the post
Join Date: Jan 2020
Location: Milwaukee
Posts: 3,976
|
Quote:
Originally Posted by augam
Scenario is 1.7mil 200k cash and 50/50 AA FBNDX/VTSMX 500k in each back tested with a 3% draw down annually.
In the chart shown I am wondering if this a typical scenario.
Thanks,
oh and sorry for confusion.
|
I still don't understand the portfolio yet: If you have 500k each in FBNDX & VTSMX and 200k in cash, and 1.7M total, where is the other 500k?
|
|
|
08-05-2020, 01:23 PM
|
#10
|
Recycles dryer sheets
Join Date: Mar 2017
Location: Mid Town
Posts: 119
|
Quote:
Originally Posted by Out-to-Lunch
I still don't understand the portfolio yet: If you have 500k each in FBNDX & VTSMX and 200k in cash, and 1.7M total, where is the other 500k?
|
My bad. I placed some side bets in various equities.
|
|
|
08-05-2020, 02:36 PM
|
#11
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
|
Quote:
Originally Posted by augam
Scenario is 1.7mil 200k cash and 50/50 AA FBNDX/VTSMX 500k in each back tested with a 3% draw down annually.
|
This is an odd mix of 2 funds because
(a) they are from two different firms
(b) VTSMX is no longer available for purchase I think since it has been replaced with VTSAX
(c) FBNDX is an actively-managed bond fund though many people confuse it with a total US bond index fund.
So one could have picked just about any 50/50 US stock / US bond mix I suppose and gotten similar results.
|
|
|
08-05-2020, 03:25 PM
|
#12
|
Recycles dryer sheets
Join Date: Mar 2017
Location: Mid Town
Posts: 119
|
Quote:
Originally Posted by LOL!
This is an odd mix of 2 funds because
(a) they are from two different firms
(b) VTSMX is no longer available for purchase I think since it has been replaced with VTSAX
(c) FBNDX is an actively-managed bond fund though many people confuse it with a total US bond index fund.
So one could have picked just about any 50/50 US stock / US bond mix I suppose and gotten similar results.
|
I needed to back test an equity holding that had some history. Hence hypothetical.
|
|
|
08-05-2020, 08:33 PM
|
#13
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Location: Boise
Posts: 7,866
|
OP, are you familiar with firecalc? ( http://www.firecalc.com - notice there are tabs across the top for multiple sections of input)
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
|
|
|
08-05-2020, 10:09 PM
|
#15
|
Thinks s/he gets paid by the post
Join Date: Jan 2020
Location: Milwaukee
Posts: 3,976
|
Quote:
Originally Posted by kevink
|
Somehow, a colon was missing from your URL. I think this is the link you meant:
https://portfoliocharts.com/2019/08/...r-investments/
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|