I feel like we won the game, invest in equities, and would never consider a portfolio with only fixed income.
+1
Even if you've "won the game", it is not advisable to have 0% equities in your portfolio.
I feel like we won the game, invest in equities, and would never consider a portfolio with only fixed income.
Yes, one size does not fit all. Social Security, company pension, rental real estate all can provide an important source of retirement income. OP is not considering any of that, however, and limiting the discussion to only fixed income and equities.
Evaluating the merits of only fixed income without mentioning inflation is like asking about living in SE Florida - but not mentioning hurricanes. Not talking about the risk does not mean it isn’t still present.
i voted "no", but I think the question itself is based upon the false premise that "winning" the game equals not being invested in equities.
I don't think of it as a "game". A game has rules, and I associate some level of frivolity with games. I suppose it's just a term but I cringe when people refer to it as a game. Life and finances don't have to follow any rules, so there's no guarantee to know that I have won until it's all over. And it's certainly more serious than a game. I take less risk than I used to and feel pretty certain I won't run out of money, but still have the majority of my investments in equities.
I understand that, but it still irks me. I guess I should keep that to myself.Well, of course. We are using the word "game" metaphorically, and I think everyone on this board understands that.
There are some rules. For example there seems to be an unescapable correlation between reward and risk. And the point of the metaphor is to communicate how we balance reward and risk.
I understand that, but it still irks me. I guess I should keep that to myself.
I don't think people realize there are more ways to lose this "game" than they can think of. It's not just a stock market crash or runaway personal inflation. I shouldn't have implied there are no rules, what I meant is that we can't know all the rules and they can be changed at any time. How can you know for certain you've won when you don't know all the things that can happen?
Just for example, what if a close family member has an extremely serious medical issue that can be treated, but the procedure is very very expensive, not covered by insurance, and must be paid in advance--no option for them to declare bankruptcy and skip out on the bill afterward? I don't mind taking a little risk for bigger gain to better be able to help them.
+1. There are many sources of "risk," and market risk (aka equity price volatility) is just one. For some reason, people fixate on it and even use the term "risk" as a synonym for equity price volatility.I don't think people realize there are more ways to lose this "game" than they can think of. It's not just a stock market crash or runaway personal inflation. I shouldn't have implied there are no rules, what I meant is that we can't know all the rules and they can be changed at any time. How can you know for certain you've won when you don't know all the things that can happen?
Just for example, what if a close family member has an extremely serious medical issue that can be treated, but the procedure is very very expensive, not covered by insurance, and must be paid in advance--no option for them to declare bankruptcy and skip out on the bill afterward? I don't mind taking a little risk for bigger gain to better be able to help them.
+1 We have won the game.... which I define as 100% success rate in FIRECalc for any AA.
We could avoid equities entirely but choose to remain invested in equities since at the end of the day we are effectively investing for our heirs and charities and as far as we are concerned, the more for them the better.
We feel like we won the game, and we lowered our equity exposure considerably upon retiring after taking considerable risk while working.
But we still stay around 50/50 to 60/40. I see it as evenly hedging my bets.
We have a big war chest of cash available for short term needs. Our income exceeds our expenses. We should be able to survive a long downturn (knock on wood). So I feel like we have a large personal financial safety cushion and am comfortable with moderate equity exposure.
Evaluating the merits of only fixed income without mentioning inflation is like asking about living in SE Florida - but not mentioning hurricanes. Not talking about the risk does not mean it isn’t still present.
With [-]8 pensions between the 2 of us[/-] money out the wazoo we have no need for equities but maintain a 50/50 AA.
FIFY...again.
FIFY...again.
With 8 pensions between the 2 of us we have no need for equities but maintain a 50/50 AA.
It won't be clear if I truly won the game until both DW and I are dead...