Zer, new here... eager to learn more about early retirement

[Zer]

Someone at FatWalletFinance just said this is a cool place to share info on increasing knowhow about managing money. I'm keen to learn. It's a little late in the game for me to manage 'early' retirement, but never too late to learn some ways to manage money. I'm all ears. Did not get what saving was all about until I was nearly 50, I'm a late bloomer on the finance scene. Am mostly in a conservative investment mode now (at 61) with only about 17% in equities, mostly an REIT that is returning 8% -- about double the return I get on other monies. Any ideas? -Zer (SoCal Aspie)

 

[dex]

Are you currently retired?
What are your financial goals?

 

[Spanky]

Zer,

it seems that you have too much invested in REITs. See the following thread discussing REITs: http://early-retirement.org/forums/index.php?topic=3162.0

Spanky

 

[Helen]

Hi Zer,

Welcome to the board !

I think you need to start researching asset allocation - do that first before you start moving money around. It's always a good idea to have a plan.

Here is a board that has some pretty solid advice to offer, it's morningstar's Vanguard Diehard forum:

http://socialize.morningstar.com/NewSocialize/asp/AllConv.asp?forumId=F100000015

Vanguard is not the only low cost fund family out there, but it's a good one. And whether you go with Vanguard or not, the concepts of asset allocation will still hold true. So read, study, ask and learn.

Best of luck,

-helen

 

[wildcat]

May I speak for everyone on the forum and recommed reading "Four Pillars" first. Very good intro to asset allocation.

If you don't have much saved at this point I still think you should have more equity exposure. Late start people need higher returns and higher savings to catch up. But hard to reco anything with the info you gave. Are you retired now or still accumulating or what? I guess what I am trying to say is you aren't going to get the returns you need by playing it too safe and being too heavy in one area exposes you to more risk than you may think.

By default I think 60/40 is more reasonable and still conservative. You can mitigate some of the equity risk by spreading it around and being diversified.

If you don't care to do the leg work then throw your money in a Lifestrategy fund or Target Retirement fund. Let them do it for you approach.

More info is needed though

 

[Zer]

Are you currently retired?
What are your financial goals?

Cataclysmic life event a decade ago put an end to professional income.  Gave me leisure to take a look at what I'd set aside in IRAs of a brokerage nature and TSAnnuity (403-b). [Modified from earlier typo "305"]

I tried mutual funds, then took my losses on 1040 and swore off mut.funds forever.  Currently have $1k a month to invest, as I conserve funds and seek a secure and productive return.  I pared down the brokerage stuff when I found I was not enjoying a roller coaster ride.  Looking back, I sold at highs and am still tracking some of the stocks that are well below my selling point.  Good thinking, but a blind guess -- as many of my decisions have been.

My financial goals?  To continue increasing net worth as I have been doing for the past decade.  At 61, I am looking to arrange matters so that my life is less brinksmanship and more profitable with not so much tension.  I am pleased with an 8% return at a higher risk than the 6% return or the 5% return at no risk to speak of. 

Now, I see a slew of recommendations to read as I find out precisely what my financial goal might be and how to allocate my new income in a way that will bring balance to the money I manage.  I am a CEO/CFO of my financial empire.   It's time I start functioning at the C-level!  Thanks for all the info.

I hope some of my answers help to fill in a profile so that we can mesh minds and help build!  -Zer

 

[Zer]

it seems that you have too much invested in REITs. See the following thread discussing REITs: http://early-retirement.org/forums/index.php?topic=3162.0 Spanky

Thanks. Super site. Laid a couple of questions on some investors there. Too much? I'm just under 10% of net worth into REIT (CEI) and just picked up a few shares of CMO when they teamed up with CEI on what looks like a good venture. I hope. -Zer

 

[Zer]

Tough to let go when an investment is rising fast. My REIT is moving up fast and is paying another dividend in a week or so. It's targeted to hit 24, but I'm determined to sell at 20 to collect benefit of buying in at 15.5 and 16 -- and it's now at 19.5 as I qualify for the dividend with 2k shares.

Hard to let go of an 8% yield in dividends. I'm definitely not buying more, as some are doing in hopes of collecting on the target of 24 that is predicted.

But I'm reading about the virtue of diversifying. I've lost a few dollars by hanging on too long, not diversifying. -Zer

 

[Zer]

Still finding my way around this site. Got to get back here more often. Four Pillars? Okay. Thanks for the pointer.

What sort of growth of net worth should I be looking for? I'm pleased that my net worth grows steadily, but I have no idea what to aim at, as I befuddle along by my wits.

At the present time, I'm 2/3 in annuities at 4.1-4.5%. Just got tired of the rise/fall of the market. I really like steady growth. Only about 15% in market; 11% in cash, shifting some of that into CDs at 5%, 6%; I still find i-bonds at 4.80% a worthwhile place for $1k/mo investment.

Will check out Four Pillars, then see what I can adjust. Probably only new money will flex now, as annuities are doing fine on their own. I must admit that I am a bit tempted to abdicate my devotion to i-bonds at 4.80% and put some cash into a brokerage account, to play fast and hard with in hopes of doubling my return. -Zer (who never gambles, except in the market; never bought a lottery ticket and never will, but I do like trading!)

May I speak for everyone on the forum and recommed reading "Four Pillars" first.  Very good intro to asset allocation.

If you don't have much saved at this point I still think you should have more equity exposure.  Late start people need higher returns and higher savings to catch up.  But hard to reco anything with the info you gave.  Are you retired now or still accumulating or what?  I guess what I am trying to say is you aren't going to get the returns you need by playing it too safe and being too heavy in one area exposes you to more risk than you may think.

By default I think 60/40 is more reasonable and still conservative.  You can mitigate some of the equity risk by spreading it around and being diversified. 

If you don't care to do the leg work then throw your money in a Lifestrategy fund or Target Retirement fund.  Let them do it for you approach. 

More info is needed though

 

[unclemick]

If you are serious about retirement - it's probably not a good idea to read any books on investing.

Call up Vanguard and buy the apropriate Vanguard Target Retirement Series for your age/planned retirement situation and fund it - via auto investing DCA or some other mechanism - payroll deduction, etc.

Go on out there and do your day to day thing - until  it's time to retire.

Of course - trading/reading/'investing' is one of those incurable hormonal diseases - but treated properly - it can be kept under control and often(not always) one can lead a normal life.

Reading Shakespeare - often helps some.

The paradox being - once you grasp how unimportant most investment reading is - then you can grasp it's significance.

Also - like most mental diseases - talking it out on a forum like this(group therapy) helps many.

AND - B.S. -ing is fun.