dixonge
Thinks s/he gets paid by the post
100% equities (IVV - S&P 500 Index fund) - we have both pensions and SS
I tend to agree with Mr Diogenes."Risk" by my reckoning is what happens when we do unusual or innovative things, pro or con. Putting 100% of one's portfolio into the S&P 500, and holding forever (that is, never trading and never withdrawing) may be gut-wrenchingly volatile, but has essentially zero risk. Barring an end-of-the-world scenario, the S&P 500 will recover from any bear market whatsoever, period. The only caveat is if the investor needs to withdraw money, say at the nadir of 1932.
Risk is what happens if I open a hotdog stand, or start an AI-tech company, or for that matter, buy a house. The house might be a lemon, or the neighborhood my decline, or there may be a catastrophe that's not covered by insurance... and my investment goes poof. That's risk! It's risky not because I'm against real estate, but because it's an episodic or idiosyncratic thing... one house, in one place, bought by one person, one at a time.
As for the theme of this thread, the key questions are (1) can the investor stomach volatility, and (2) does the investor need to withdraw the money anytime soon? If the answers are "yes" and "no", respectively, then a 100% equity allocation - to indices, not to individual stocks, of course - is fine.
As for the theme of this thread, the key questions are (1) can the investor stomach volatility, and (2) does the investor need to withdraw the money anytime soon? If the answers are "yes" and "no", respectively, then a 100% equity allocation - to indices, not to individual stocks, of course - is fine.
Heh, heh, what's that old phrase? "Hindsight is 20:20." Unfortunately there are no do-overs in our financial lives.Just day dreaming where I would be if I never owned any bonds, for that matter add in no foreign funds or small caps.
Same here generically, but all is good in the end.Heh, heh, what's that old phrase? "Hindsight is 20:20." Unfortunately there are no do-overs in our financial lives.
If I could undo some of my investing mistakes, I'd be flying Netjets instead of flying "cattle-car" class.YMMV