CaseInPoint
Recycles dryer sheets
I finally moved some money out of a high-fee investment I had at a “wealth management” company (although I am not wealthy), and am about to reinvest that money into Vanguard where I already have some investments. The money will be invested at a much lower fee. It wasn’t an easy decision for me, but it’s done.
The past year has really caused me to rethink the whole concept of buy-and-hold investments. Until the market crashed, I always believed that if you worked hard, saved, and invested conservatively, then over the long run you’ll come out considerably ahead. Maybe something like 5-10% annually on average. But now I wonder if that’s true, having seen big losses on my mutual funds and ETFs, as the market dropped.
Anyway, I still haven’t found any good alternatives to the types of investments I’ve made, so I’m considering a strategy of periodically shifting some or all of the dividends that I will (hopefully) eventually receive from my investments and buy into T-Notes, TIPS, etc., as a hedge against future market downturns.
Ideally, I’d want this process to happen as automatically as possible through VG, as I don’t want to take on the lifestyle of a day-trader.
I have 2 questions:
1. I wanted to ask for some opinions on this strategy. I know it’s not an original concept, and I wonder if anyone has either an opinion or actual experience doing, at least some of this, through VG?
2. I’m sure that some other investors are reaching the same kind of conclusions about the long-term buy-and-hold investment strategy. If so, what kinds of investments are you turning to? Or are you just staying the course and waiting for the usual economic upturn to recoup your losses and pull ahead?
The past year has really caused me to rethink the whole concept of buy-and-hold investments. Until the market crashed, I always believed that if you worked hard, saved, and invested conservatively, then over the long run you’ll come out considerably ahead. Maybe something like 5-10% annually on average. But now I wonder if that’s true, having seen big losses on my mutual funds and ETFs, as the market dropped.
Anyway, I still haven’t found any good alternatives to the types of investments I’ve made, so I’m considering a strategy of periodically shifting some or all of the dividends that I will (hopefully) eventually receive from my investments and buy into T-Notes, TIPS, etc., as a hedge against future market downturns.
Ideally, I’d want this process to happen as automatically as possible through VG, as I don’t want to take on the lifestyle of a day-trader.
I have 2 questions:
1. I wanted to ask for some opinions on this strategy. I know it’s not an original concept, and I wonder if anyone has either an opinion or actual experience doing, at least some of this, through VG?
2. I’m sure that some other investors are reaching the same kind of conclusions about the long-term buy-and-hold investment strategy. If so, what kinds of investments are you turning to? Or are you just staying the course and waiting for the usual economic upturn to recoup your losses and pull ahead?