obgyn65
Thinks s/he gets paid by the post
Thank you everyone for posting. I will need a day or two to digest the advice provided and will answer then.
Uh, no. Perhaps 0.1% to 0.4% would be reasonable.If you don't have time or knowledge, then maybe you are better off paying [-]1% or 2%[/-] to a Financial Advisor that you trust. I know that is contrary to most people here, but may work for you. good luck
Uh, no. Perhaps 0.1% to 0.4% would be reasonable.
I think it's very possible that buying CD's, munis etc the way that Obgyn does, involves more time and effort than maintaining a simple index fund portfolio. However, if you're very risk-averse, you'll be willing to take that time and effort in order to buy investments that are guaranteed to go up in value. We all need to do whatever allows us to sleep at night.It seems to me that fixed income investments take time as well. CDs come due and need to be replaced, annuities need to be researched and understood (hopefully!), and likewise with muni bonds. Whereas some people just go heavy into Wellesley, or target funds, or a simple mix of Total (US) Stock/Total International Stock/Total Bond). In the latter, take a look once a year and rebalance. No need to even do that in the other two since they are self-balancing. It really is that basic and shouldn't require the hand-holding of an adviser, though I think the OP may be using one anyway.
+1Everything in life is a gamble anyway. We all, in one way or another, play the game of risk-assessment every single day in our lives.
There you go.I first put money into the market about a year ago. I lost $8000 within the first month. That was fun. My stomach sank a little and I started to doubt my decision. However, a year has passed, and now I'm up by $27,000. It's just the way the market works. One day it's up; the next day it's down. You just ride it like a roller coaster -- but to reduce the nausea, try not to pay attention to the daily (or weekly) fluctuations. They don't mean a whole lot. It's the long horizon that matters.
You're fishing for a "wiped out" joke but I'm not taking the bait!If the market drops precipitously over the next few weeks, I'm secure in the knowledge that I have 60 rolls of bathroom tissue here .
And something to eat if things get really bad! The cats can catch their own dinner!There you go.
Today the S&P500 was down by 1.43% so I cycled to Target, bought some coffee, 24 cans of Fancy Feast for the kitties, and 60 rolls of bathroom tissue. Then I cycled back home, made lunch, and watched a couple more episodes of Twin Peaks on Hulu.
That was my strategy for today. If the market drops precipitously over the next few weeks, I'm secure in the knowledge that I have 60 rolls of bathroom tissue here However, it will go back up at some point - probably in the next few days.
I'm not aiming to make myself the "butt" of anyone's jokes, trust meYou're fishing for a "wiped out" joke but I'm not taking the bait!
Although, after what you went through at the hands of your doctor yesterday, you could be forgiven for doing so.Nah, no need to buy "Depend" yet!
Exactly right!Although, after what you went through at the hands of your doctor yesterday, you could be forgiven for doing so.
I am, thank you! Would not be posting otherwise. Can hardly wait until the next [-]torture er[/-] procedure.Hope you're feeling recovered by now!
My wife's 401k has just reported in. It is early today, as I often have to wait for another hour or 2.
Total equity including her funds: -1% today.
Total portfolio: -0.75%.
So what? It's only money, folks. It's better to be living poor than not living at all, or worse, living in pain.
Talk about health and the market, I still have the fight in me.
Obgyn has said before that he accepts his portfolio will lose out to inflation. If you enter a figure of 0% for inflation in Firecalc and run it for a 100% fixed income portfolio, you can take up to 4.5% out, based on the starting value and get 100% success over 30 years. In fact, you can get 100% success with a WR of 3.5% and a constant inflation rate of 1.75%.It was pointed out (time and time again) that a 100% fixed income portfolio historically has a low success rate with a 30 year time frame at a 3.5% WR - only 79.3%. An AA of anywhere from 30% to 85% equities however, provided a 100% success rate. That's not 'critical' - that's information. And it gets worse at 40 years - 27% success with all fixed, and 98% success with higher equities (~ 50/50 to 65/35).
-ERD50
He keeps telling us he's risk averse (in almost every post, it feels like) so I think he just might be telling us the truth