Dawg52
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I have a handful of blue chip dividend stocks to supplement my funds. Makes up just under 5% of entire portfolio. I do it to keep a little interest in the game.
One of the key things I've learned from participating in Internet forums is that gamblers always win.
1. Folks who like to visit the track and bet on the ponies always win.
2. Folks who like to go to Vegas always win.
3. Folks who wager on sports games or play parlay cards always win.
4. Folks who speculate on risky investments always win.
It's a great world for gamblers, isn't it?
Doing the necessary research to know what individual stocks to own, and when not to own them, is work. As a retired person I try to avoid as much of that as I can, so no individual stocks for me.
I have a new play account as a 5 year delayed goodbye gift from Megacorp. My Roth is in mostly Google I purchased 9 years ago and sat on. In my main investment account I kept 1000 shares of Megacorp, a couple years ago it turned into 80k that's now in a fund. Nine years ago I bought 100 shares of Apple and sat on it, sold a bunch to put in funds and reinvested the dividends. I've been writing 10% OTM covered calls on it, seems like you can make an easy 1k monthly on that strategy.No individual in my serious accounts. I do have a play account which has individual stocks in it, but that is more so I have something to talk about at the club.
It is not at all uncommon for early retirees to have a WR that exceeds 4% early in retirement... I did.... reinforcements of a small pension came along and SS is a short time way. We were at 5.8% our first few years of retirement... it dropped to 3.5-4.5% once my pension came on line and was only 1.8% last year because we paid off our car loan and mortgage at the end of 2019 and spent a lot less due to covid constraints on traveling and fun. 2021 looks like ~2% too and it will decline even more once DW starts collecting SS and to probably 1% or so once my SS is online. It is really that "ultimate" WR that is most important and you can estimate that with a little modeling.
I dabbled in individual stocks as a young adult but have been an avowed indexer since ~1982.... I do currently have a portfolio of 36 individual preferred stocks that is about 20-25% of our portfolio but no individual common stocks. I see nothing wrong with individual stocks as long as you are well diversified.
I own a lot of individual stocks, but there is absolutely nothing wrong with just owning mutual funds or ETFS....
One of the key things I've learned from participating in Internet forums is that gamblers always win.
1. Folks who like to visit the track and bet on the ponies always win.
2. Folks who like to go to Vegas always win.
3. Folks who wager on sports games or play parlay cards always win.
4. Folks who speculate on risky investments always win.
It's a great world for gamblers, isn't it?
If future returns are anything close to historical average, then I think about any strategy you choose will work. A broad based index fund could be a good choice. Of course inflation and actual returns may not be the same as the past, but I would think you would still make it if you decided on some combination of growth and value and income funds (as long as fees are not excessive), though trying to create that combination might also look similar to a single broad based ETF.Greetings everybody....
I have early-retired, I am 46 and retired about a month ago. I'm a bit worried about writing my whole plan here....because my SWR is over the magical 4% and I don't want to be taken to the woodshed
My question for the group is regarding equities.
Does anybody here use SOLELY mutual funds and ETFs....wit no individual stocks and what are people's thoughts about that.
My hopefully realistic goals are to *average* a 5% annualized return meaning some years might be +20%, some years might be down 20%....but overall, if I can average 5%, things should be ok. Any more than 5% is gravy - much welcomed gravy.
Thanks!
Doing the necessary research to know what individual stocks to own, and when not to own them, is work. As a retired person I try to avoid as much of that as I can, so no individual stocks for me.
We understand that your SWR is over 4%, and you're looking for 5% return. Is that real return or what? I happen to use a flat 5% with STD Dev of 8% in my planning, and that's with a 50/50 portfolio. Depending on your asset allocation (nobody knows yours), your returns will range from something to something else. You see the details mean a lot. I couldn't reverse the numbers and deduce anything about your AA.Greetings everybody....
I have early-retired, I am 46 and retired about a month ago. I'm a bit worried about writing my whole plan here....because my SWR is over the magical 4% and I don't want to be taken to the woodshed
My question for the group is regarding equities.
Does anybody here use SOLELY mutual funds and ETFs....wit no individual stocks and what are people's thoughts about that.
My hopefully realistic goals are to *average* a 5% annualized return meaning some years might be +20%, some years might be down 20%....but overall, if I can average 5%, things should be ok. Any more than 5% is gravy - much welcomed gravy.
Thanks!