cute fuzzy bunny
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
This is where my "simplify!" approach brought me.
After running with a slice and dice portfolio with 15 funds in it, I sold each one as they became "fully valued". Except for REITS, which seem to defy gravity well, seems I sold each in a timely manner.
I waited for sectors to become more reasonably valued but found that large caps, particularly value stocks, seemed to persist in being the most reasonably priced.
Deciding that spending hours a week playing this game was no longer a lot of fun, I shifted about 2/3 of my taxable money into a vanguard target retirement fund and the rest into a large cap value dividend paying fund, In the IRA, same target retirement fund for 2/3 and small cap value for the remainder.
Ballast of self-regulating low cost index with a heavy twist of dividend payers; large on one side and small on the other. No rebalancing between. See where it is in 20 years.
Expense ratio is under .20. Kicks off about 2.6-2.7% in dividends and gains that go into the spending pot along with the few bucks my wife is still earning working a couple of days a week. Projected growth of capital is somewhere in the 5-7% range. Wont sell any shares unless we need to make a large purchase, like another frickin lexus or a college education.
Only thing that screws us is a very long downturn in the equities market. But as I tell my wife, that will screw everyone equally. With our no-debt situation and the probability of some sort of regular income, we'll probably feel a little less screwed.
You dont have to outrun the bear...just the other guy!
After running with a slice and dice portfolio with 15 funds in it, I sold each one as they became "fully valued". Except for REITS, which seem to defy gravity well, seems I sold each in a timely manner.
I waited for sectors to become more reasonably valued but found that large caps, particularly value stocks, seemed to persist in being the most reasonably priced.
Deciding that spending hours a week playing this game was no longer a lot of fun, I shifted about 2/3 of my taxable money into a vanguard target retirement fund and the rest into a large cap value dividend paying fund, In the IRA, same target retirement fund for 2/3 and small cap value for the remainder.
Ballast of self-regulating low cost index with a heavy twist of dividend payers; large on one side and small on the other. No rebalancing between. See where it is in 20 years.
Expense ratio is under .20. Kicks off about 2.6-2.7% in dividends and gains that go into the spending pot along with the few bucks my wife is still earning working a couple of days a week. Projected growth of capital is somewhere in the 5-7% range. Wont sell any shares unless we need to make a large purchase, like another frickin lexus or a college education.
Only thing that screws us is a very long downturn in the equities market. But as I tell my wife, that will screw everyone equally. With our no-debt situation and the probability of some sort of regular income, we'll probably feel a little less screwed.
You dont have to outrun the bear...just the other guy!