Should I buy more REITs?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
User avatar
Topic Author
InvestorNewb
Posts: 1663
Joined: Mon Sep 03, 2012 11:27 am

Should I buy more REITs?

Post by InvestorNewb »

Hello,

I'm using my tax-deferred account for Vanguard's REIT fund (VNQ). At this time, I only have VNQ shares in the account and they make up 17% of my portfolio.

My idea for buying VNQ was to get the best of both investing worlds, i.e. total return and income. My taxable accounts are dedicated to total market funds, while my tax deferred account is dedicated to income. So far I am pleased with the results.

I am able to make a new contribution in my tax-deferred account.

- Should I buy more VNQ shares even though they have done really well this year?
- Is 18% REIT too high?

Thanks
My Portfolio: VTI [US], VXUS [Int'l], VNQ [REIT], VCN [Canada] (largest to smallest)
rkhusky
Posts: 17764
Joined: Thu Aug 18, 2011 8:09 pm

Re: Should I buy more REITs?

Post by rkhusky »

Keep in mind that Total Stock Market, Mid Cap and Small Cap funds also have REIT's (http://www.bogleheads.org/wiki/Percenta ... ndex_funds). You can compare your portfolio percentage with that in TSM to see how much you are tilted. If TSM is indeed 2% REIT, than you appear to be heavily tilted at 20%.

Is 17% really the percent of portfolio, or is it percent of stock holdings? If the former, what is your portfolio bond percentage?
John3754
Posts: 1289
Joined: Tue Mar 19, 2013 8:56 pm

Re: Should I buy more REITs?

Post by John3754 »

What does your IPS say?
Lafder
Posts: 4127
Joined: Sat Aug 03, 2013 7:56 pm
Location: East of the Rio Grande

Re: Should I buy more REITs?

Post by Lafder »

18% sounds high to me.

What is your overall portfolio asset allocation?

Do you have any real estate holdings?

lafder
Buddtholomew
Posts: 1059
Joined: Thu Mar 01, 2007 2:29 pm

Re: Should I buy more REITs?

Post by Buddtholomew »

There are merits to placing total market funds in taxable accounts and REITs in tax-deferred, but this should not drive your AA percentages.

If you have 17% in REITs and they have out-performed the total market this year, then it is unlikely you are overweight in VNQ, correct? You're not adverse to buying ETFs, so buy your lagging ETF asset in tax-deferred (e.g. VTI, VEU).

I know you want to purchase VNQ, but make sure the reasoning is sound. Unfortunately, I am not convinced given your timing.
"The first principle is that you must not fool yourself and you are the easiest person to fool" --Feynman.
User avatar
nedsaid
Posts: 19275
Joined: Fri Nov 23, 2012 11:33 am

Re: Should I buy more REITs?

Post by nedsaid »

I think 17% of your portfolio in REITs is too much. Have you been reading the threads and comments by Swedroe and Bernstein about valuations? There is a lot of concern out there that REITs are pretty richly valued. I kept what I own and have been buying them with 10% of my new funds for investment through my workplace savings plan. This has been done as part of my investment and diversification plan. Right now, REITs are about 8% of my portfolio and maybe another 3% in Timber REITs. In a mutual fund IRA, I actually have been trimming them a bit.

These doggoned things can be really volatile. I have seen the Vanguard REIT fluctuate as much as 8-10% in one day!!! I sure wouldn't go overboard on these things. 2014 has been a great year for these and piling into them at this time is simply chasing performance.

Do you have an investment philosophy? Have you put your thoughts on paper in the form of an investment policy statement? I have read a number of your threads and you seem all over the map.
A fool and his money are good for business.
placeholder
Posts: 8421
Joined: Tue Aug 06, 2013 12:43 pm

Re: Should I buy more REITs?

Post by placeholder »

Almost two years ago in answer to another "should I do this" post from you someone said:
Why? you need an written plan and stay the course
The Wizard
Posts: 13356
Joined: Tue Mar 23, 2010 1:45 pm
Location: Reading, MA

Re: Should I buy more REITs?

Post by The Wizard »

You have enough REITs.
Time to start funding your International stock fund now...
Attempted new signature...
User avatar
backpacker
Posts: 1620
Joined: Mon Sep 22, 2014 2:17 pm

Re: Should I buy more REITs?

Post by backpacker »

Go big or go home. If you think that a dedicated REIT allocation makes sense, hold enough to make a difference. David Swenson is awfully smart and suggests 20%.

That said, I think the arguments for a REIT allocation (unique diversifier, real estate underweighted in the private market, blah, blah) are bunk. So I have nothing in REITs.
Last edited by backpacker on Mon Oct 27, 2014 7:17 pm, edited 1 time in total.
gkaplan
Posts: 7034
Joined: Sat Mar 03, 2007 7:34 pm
Location: Portland, Oregon

Re: Should I buy more REITs?

Post by gkaplan »

John3754 wrote:What does your IPS say?
This.
Gordon
User avatar
Ged
Posts: 3945
Joined: Mon May 13, 2013 1:48 pm
Location: Roke

Re: Should I buy more REITs?

Post by Ged »

John3754 wrote:What does your IPS say?
Probably something like 'start another Boglehead thread to see what they say'.
User avatar
zaboomafoozarg
Posts: 2431
Joined: Sun Jun 12, 2011 12:34 pm

Re: Should I buy more REITs?

Post by zaboomafoozarg »

InvestorNewb wrote:Should I buy more VNQ shares even though they have done really well this year?
You should buy more of whatever in your target allocation did the worst.
User avatar
zaboomafoozarg
Posts: 2431
Joined: Sun Jun 12, 2011 12:34 pm

Re: Should I buy more REITs?

Post by zaboomafoozarg »

Ged wrote:
John3754 wrote:What does your IPS say?
Probably something like 'start another Boglehead thread to see what they say'.
The Wisdom and/or Madness Of Crowds AA strategy :D
Johm221122
Posts: 6393
Joined: Fri May 13, 2011 6:27 pm

Re: Should I buy more REITs?

Post by Johm221122 »

InvestorNewb wrote:Hello,

I'm using my tax-deferred account for Vanguard's REIT fund (VNQ). At this time, I only have VNQ shares in the account and they make up 17% of my portfolio.

My idea for buying VNQ was to get the best of both investing worlds, i.e. total return and income.

Thanks
http://en.m.wikipedia.org/wiki/Total_return
The total return on a portfolio of investments takes into account not only the capital appreciation on the portfolio, but also the income received on the portfolio.[1] The income typically consists of interest, dividends, and securities lending fees. This contrasts with the price return, which takes into account only the capital gain on an investment.
John
kazper
Posts: 628
Joined: Fri Aug 01, 2014 7:45 pm

Re: Should I buy more REITs?

Post by kazper »

Check your aa. If you are coming up short in reits, by all means go out and purchase more. I have part of my portfolio in reits (7% with a 10% goal). 17 does seem rather high but nothing outlandish like say 50%. I believe a little more diversification could go a long way, but not if it is counter to your plan.
IPer
Posts: 1639
Joined: Sun Jul 28, 2013 8:51 pm

Re: Should I buy more REITs?

Post by IPer »

REITs are not fixed income, what does your IPS say?!
Read the Wiki Wiki !
User avatar
Aptenodytes
Posts: 3786
Joined: Tue Feb 08, 2011 7:39 pm

Re: Should I buy more REITs?

Post by Aptenodytes »

backpacker wrote:Go big or go home. If you think that a dedicated REIT allocation makes sense, hold enough to make a difference. David Swenson is awfully smart and suggests 20%.
Is Swenson still recommending 20% in REITs, even given their very high valuations?
User avatar
ruralavalon
Posts: 26353
Joined: Sat Feb 02, 2008 9:29 am
Location: Illinois

Re: Should I buy more REITs?

Post by ruralavalon »

REIT at 17% is ample.

Do you have any fixed income (bonds or CDs) at all? You didn't mention that and you should have some.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
leonard
Posts: 5993
Joined: Wed Feb 21, 2007 10:56 am

Re: Should I buy more REITs?

Post by leonard »

I'd stick with 10% of equity.
Leonard | | Market Timing: Do you seriously think you can predict the future? What else do the voices tell you? | | If employees weren't taking jobs with bad 401k's, bad 401k's wouldn't exist.
User avatar
Peculiar_Investor
Site Admin
Posts: 2445
Joined: Thu Oct 20, 2011 12:23 am
Location: Calgary, AB 🇨🇦
Contact:

Re: Should I buy more REITs?

Post by Peculiar_Investor »

InvestorNewb wrote:Hello,

I'm using my tax-deferred account for Vanguard's REIT fund (VNQ). At this time, I only have VNQ shares in the account and they make up 17% of my portfolio.

My idea for buying VNQ was to get the best of both investing worlds, i.e. total return and income. My taxable accounts are dedicated to total market funds, while my tax deferred account is dedicated to income. So far I am pleased with the results.

I am able to make a new contribution in my tax-deferred account.

- Should I buy more VNQ shares even though they have done really well this year?
- Is 18% REIT too high?

Thanks
What did you end up doing here?
Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
leonard
Posts: 5993
Joined: Wed Feb 21, 2007 10:56 am

Re: Should I buy more REITs?

Post by leonard »

Peculiar_Investor wrote:
InvestorNewb wrote:Hello,

I'm using my tax-deferred account for Vanguard's REIT fund (VNQ). At this time, I only have VNQ shares in the account and they make up 17% of my portfolio.

My idea for buying VNQ was to get the best of both investing worlds, i.e. total return and income. My taxable accounts are dedicated to total market funds, while my tax deferred account is dedicated to income. So far I am pleased with the results.

I am able to make a new contribution in my tax-deferred account.

- Should I buy more VNQ shares even though they have done really well this year?
- Is 18% REIT too high?

Thanks
What did you end up doing here?
OP - are we essentially addressing the same question as before? If so, why?
Leonard | | Market Timing: Do you seriously think you can predict the future? What else do the voices tell you? | | If employees weren't taking jobs with bad 401k's, bad 401k's wouldn't exist.
DVMResident
Posts: 1814
Joined: Mon Aug 01, 2011 8:15 pm

Re: Should I buy more REITs?

Post by DVMResident »

I hit my IPS bands to sell Some REITs a few weeks back.
I doubt your IPS says buy high.
Do you have an IPS?
If you're prone to tinkering or flying blind, my I suggest a single target date fund for your entire AA (no offense intended).
BuckyBadger
Posts: 1221
Joined: Tue Nov 01, 2011 11:28 am

Re: Should I buy more REITs?

Post by BuckyBadger »

Wasn't there a thread somewhere along the lines of "Why not 100% in REITs" from the OP as well?
John3754
Posts: 1289
Joined: Tue Mar 19, 2013 8:56 pm

Re: Should I buy more REITs?

Post by John3754 »

BuckyBadger wrote:Wasn't there a thread somewhere along the lines of "Why not 100% in REITs" from the OP as well?
Yes...

http://www.bogleheads.org/forum/viewtop ... 1&t=118637
Tom_T
Posts: 4837
Joined: Wed Aug 29, 2007 2:33 pm

Re: Should I buy more REITs?

Post by Tom_T »

The OP made a bet on REITs this year that has worked out well, but that doesn't mean he should add more. Last year, the Vanguard REIT fund's total return was 2.4%, vs. 33% for Total Stock Market. Anyone who overweighted REITs last year cost himself a lot of money vs. just owning Total Stock Market.

Performance-chasing is not a good strategy, even if you get a positive outcome.
User avatar
Topic Author
InvestorNewb
Posts: 1663
Joined: Mon Sep 03, 2012 11:27 am

Re: Should I buy more REITs?

Post by InvestorNewb »

To answer some of the questions:

- I do not have an IPS
- I do not own real estate apart from the stock market
- I do not have any bonds
- For last year's contribution, I bought more REITs

Here is my dilemma:

VNQ is currently the only fund that I have in my tax-deferred account. Ever since beginning my plan, I have reinvested all dividends from VNQ back into VNQ to buy more shares. The same is true in my taxable accounts for my other ETFs. If I buy another ETF in my tax-deferred account, that changes things. When quarterly dividends are paid, I would now have to reinvest the dividends from two ETFs instead of just one. Each trade costs me $6.95. Given that the dividend amount will be low for the new ETF that I buy, it doesn't make sense to pay trading commissions on small reinvestments. DRIPs are also not offered on US ETFs by my broker. I know I am being fussy, but this is something I like to follow.
My Portfolio: VTI [US], VXUS [Int'l], VNQ [REIT], VCN [Canada] (largest to smallest)
John3754
Posts: 1289
Joined: Tue Mar 19, 2013 8:56 pm

Re: Should I buy more REITs?

Post by John3754 »

InvestorNewb wrote:To answer some of the questions:

- I do not have an IPS
- I do not own real estate apart from the stock market
- I do not have any bonds
- For last year's contribution, I bought more REITs

Here is my dilemma:

VNQ is currently the only fund that I have in my tax-deferred account. Ever since beginning my plan, I have reinvested all dividends from VNQ back into VNQ to buy more shares. The same is true in my taxable accounts for my other ETFs. If I buy another ETF in my tax-deferred account, that changes things. When quarterly dividends are paid, I would now have to reinvest the dividends from two ETFs instead of just one. Each trade costs me $6.95. Given that the dividend amount will be low for the new ETF that I buy, it doesn't make sense to pay trading commissions on small reinvestments. DRIPs are also not offered on US ETFs by my broker. I know I am being fussy, but this is something I like to follow.
You're letting the tail wag the dog. How about this...buy whatever you need to buy in order to keep your asset allocation on track, send the dividends to cash, reinvest them once a quarter or once every six months.
User avatar
ruralavalon
Posts: 26353
Joined: Sat Feb 02, 2008 9:29 am
Location: Illinois

Re: Should I buy more REITs?

Post by ruralavalon »

InvestorNewb wrote:To answer some of the questions:

- I do not have an IPS < -- Here is my dilemma
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
User avatar
abuss368
Posts: 27850
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!
Contact:

Re: Should I buy more REITs?

Post by abuss368 »

David Swensen, Yale University CIO, and author of the excellent book "Unconventional Success" has recommended a 20% of total portfolio allocation to REITs.

I would be curious of Dr. Swensen's recent thoughts in terms of International REITs.

Best.
John C. Bogle: “Simplicity is the master key to financial success."
Valuethinker
Posts: 49035
Joined: Fri May 11, 2007 11:07 am

Re: Should I buy more REITs?

Post by Valuethinker »

abuss368 wrote:David Swensen, Yale University CIO, and author of the excellent book "Unconventional Success" has recommended a 20% of total portfolio allocation to REITs.

I would be curious of Dr. Swensen's recent thoughts in terms of International REITs.

Best.
Swensen took a year off work to deal with cancer. I don't know his status.

I think Swensen, Malkiel et al. should knock their heads together and have a real think in light of what happened to REITs 2008-09. I think I read the Beta of the REIT sector is about 1.2. That's going to hurt. The implication is a loss of diversifying power, that is what has made me cautious of them (besides valuation). My gut says you want 6-8% cap rates on prime real estate, not 4% (which is where blue chip London is back down to).

Bernstein's point is that valuations matter on these things. Anti Illmanen's books are worth reading as well. Given the 90% payout rule, the balance of returns from REITs will come from dividends + dividend growth. This is not primarily a capital gain play. It does depend on your outlook for future inflation, they should have superior inflation correlation over stocks.

The best you can say is REITs are not expensive compared to other asset classes (relative). Compared to absolute valuations and their own historic, they are. An 8x overweighting relative to the stock market position seems excessive.

Balanced against that as US unemployment falls, demand for Commercial RE and rents picks up. US has had good job creation the last few years. So the outlook for rental growth may not be as dire as it is on this side of the water.

To each his own.
Valuethinker
Posts: 49035
Joined: Fri May 11, 2007 11:07 am

Re: Should I buy more REITs?

Post by Valuethinker »

InvestorNewb wrote:To answer some of the questions:

- I do not have an IPS
- I do not own real estate apart from the stock market
- I do not have any bonds
- For last year's contribution, I bought more REITs

Here is my dilemma:

VNQ is currently the only fund that I have in my tax-deferred account. Ever since beginning my plan, I have reinvested all dividends from VNQ back into VNQ to buy more shares. The same is true in my taxable accounts for my other ETFs. If I buy another ETF in my tax-deferred account, that changes things. When quarterly dividends are paid, I would now have to reinvest the dividends from two ETFs instead of just one. Each trade costs me $6.95. Given that the dividend amount will be low for the new ETF that I buy, it doesn't make sense to pay trading commissions on small reinvestments. DRIPs are also not offered on US ETFs by my broker. I know I am being fussy, but this is something I like to follow.
You have an investment strategy which is a recipe for a 6 car train pile up at some point. Likely at the next stock market crash, but who knows?

Don't mistake a correction (-10%) in an asset class for a crash which might lead to excessively low valuations. OK with Treasury Bonds -10% is a big move-- see 1994. But for most sectors and asset classes? 10% is noise.
User avatar
abuss368
Posts: 27850
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!
Contact:

Re: Should I buy more REITs?

Post by abuss368 »

Valuethinker wrote:
Swensen took a year off work to deal with cancer. I don't know his status.
Hi Valuethinker,

My understanding is David Swensen has returned to Yale University a while ago and is fully engaged with the endowment. I was recently reading the endowment press releases regarding the investment strategy and results and Dr. Swensen was noted many times. If interested, the Yale University investment website has additional information.

Best.
John C. Bogle: “Simplicity is the master key to financial success."
Valuethinker
Posts: 49035
Joined: Fri May 11, 2007 11:07 am

Re: Should I buy more REITs?

Post by Valuethinker »

abuss368 wrote:
Valuethinker wrote:
Swensen took a year off work to deal with cancer. I don't know his status.
Hi Valuethinker,

My understanding is David Swensen has returned to Yale University a while ago and is fully engaged with the endowment. I was recently reading the endowment press releases regarding the investment strategy and results and Dr. Swensen was noted many times. If interested, the Yale University investment website has additional information.

Best.
Thank you.

A small nitpick, AFAIK he is not Dr Swensen. He did his undergrad at Yale, not sure about his MBA (Harvard?).
User avatar
abuss368
Posts: 27850
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!
Contact:

Re: Should I buy more REITs?

Post by abuss368 »

Valuethinker wrote:
abuss368 wrote:
Valuethinker wrote:
Swensen took a year off work to deal with cancer. I don't know his status.
Hi Valuethinker,

My understanding is David Swensen has returned to Yale University a while ago and is fully engaged with the endowment. I was recently reading the endowment press releases regarding the investment strategy and results and Dr. Swensen was noted many times. If interested, the Yale University investment website has additional information.

Best.
Thank you.

A small nitpick, AFAIK he is not Dr Swensen. He did his undergrad at Yale, not sure about his MBA (Harvard?).
That is good to know because I have seen Dr. out there in literature.
John C. Bogle: “Simplicity is the master key to financial success."
User avatar
Lucky Lemon
Posts: 101
Joined: Mon Jul 29, 2013 1:44 pm

Re: Should I buy more REITs?

Post by Lucky Lemon »

Valuethinker wrote:
abuss368 wrote:
Valuethinker wrote:
Swensen took a year off work to deal with cancer. I don't know his status.
Hi Valuethinker,

My understanding is David Swensen has returned to Yale University a while ago and is fully engaged with the endowment. I was recently reading the endowment press releases regarding the investment strategy and results and Dr. Swensen was noted many times. If interested, the Yale University investment website has additional information.

Best.
Thank you.

A small nitpick, AFAIK he is not Dr Swensen. He did his undergrad at Yale, not sure about his MBA (Harvard?).
I believe the David Swensen received a Ph.D. in 1980 from Yale. That would make him a doctor.

LL
If the women don't find you handsome, they should at least find you handy. - Red Green
placeholder
Posts: 8421
Joined: Tue Aug 06, 2013 12:43 pm

Re: Should I buy more REITs?

Post by placeholder »

Lucky Lemon wrote:I believe the David Swensen received a Ph.D. in 1980 from Yale. That would make him a doctor.
That's what it says here: http://investments.yale.edu/index.php/about/team
User avatar
zaboomafoozarg
Posts: 2431
Joined: Sun Jun 12, 2011 12:34 pm

Re: Should I buy more REITs?

Post by zaboomafoozarg »

Valuethinker wrote:You have an investment strategy which is a recipe for a 6 car train pile up at some point. Likely at the next stock market crash, but who knows?
Well to be fair, he did put newb in the name :D

I agree though. If OP thinks dips of 5%-10% are bad, what happens if REITs drop by 70% like they did a few years ago?
User avatar
abuss368
Posts: 27850
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!
Contact:

Re: Should I buy more REITs?

Post by abuss368 »

Lucky Lemon wrote:
Valuethinker wrote:
abuss368 wrote:
Valuethinker wrote:
Swensen took a year off work to deal with cancer. I don't know his status.
Hi Valuethinker,

My understanding is David Swensen has returned to Yale University a while ago and is fully engaged with the endowment. I was recently reading the endowment press releases regarding the investment strategy and results and Dr. Swensen was noted many times. If interested, the Yale University investment website has additional information.

Best.
Thank you.

That's right!
A small nitpick, AFAIK he is not Dr Swensen. He did his undergrad at Yale, not sure about his MBA (Harvard?).
I believe the David Swensen received a Ph.D. in 1980 from Yale. That would make him a doctor.

LL
John C. Bogle: “Simplicity is the master key to financial success."
User avatar
TomatoTomahto
Posts: 17158
Joined: Mon Apr 11, 2011 1:48 pm

Re: Should I buy more REITs?

Post by TomatoTomahto »

zaboomafoozarg wrote:
Valuethinker wrote:You have an investment strategy which is a recipe for a 6 car train pile up at some point. Likely at the next stock market crash, but who knows?
Well to be fair, he did put newb in the name :D

I agree though. If OP thinks dips of 5%-10% are bad, what happens if REITs drop by 70% like they did a few years ago?
Well, Newb has over 1000 posts.

[OT comments removed by admin LadyGeek.]
I get the FI part but not the RE part of FIRE.
User avatar
LAlearning
Posts: 1365
Joined: Wed May 09, 2012 12:26 pm
Location: Los Angeles

Re: Should I buy more REITs?

Post by LAlearning »

TomatoTomahto wrote: Well, Newb has over 1000 posts.

[OT comments removed by admin LadyGeek.]
Didn't know post count had anything to do with, well anything. He is still paying commissions :oops:
I know nothing!
User avatar
Topic Author
InvestorNewb
Posts: 1663
Joined: Mon Sep 03, 2012 11:27 am

Re: Should I buy more REITs?

Post by InvestorNewb »

TomatoTomahto wrote:
zaboomafoozarg wrote:
Valuethinker wrote:You have an investment strategy which is a recipe for a 6 car train pile up at some point. Likely at the next stock market crash, but who knows?
Well to be fair, he did put newb in the name :D

I agree though. If OP thinks dips of 5%-10% are bad, what happens if REITs drop by 70% like they did a few years ago?
Well, Newb has over 1000 posts.

[OT comments removed by admin LadyGeek.]
I don't think that was called for... but you are entitled to your own opinion.
LAlearning wrote:Didn't know post count had anything to do with, well anything. He is still paying commissions :oops:
I pay commissions because I'm in Canada and only Vanguard ETFs are offered here.
My Portfolio: VTI [US], VXUS [Int'l], VNQ [REIT], VCN [Canada] (largest to smallest)
John3754
Posts: 1289
Joined: Tue Mar 19, 2013 8:56 pm

Re: Should I buy more REITs?

Post by John3754 »

You need a more solid plan so you're not constantly second guessing yourself and coming on here and asking "should I buy more X?", the process needs to be more mechanical.
User avatar
TomatoTomahto
Posts: 17158
Joined: Mon Apr 11, 2011 1:48 pm

Re: Should I buy more REITs?

Post by TomatoTomahto »

InvestorNewb wrote:
TomatoTomahto wrote:
zaboomafoozarg wrote:
Valuethinker wrote:You have an investment strategy which is a recipe for a 6 car train pile up at some point. Likely at the next stock market crash, but who knows?
Well to be fair, he did put newb in the name :D

I agree though. If OP thinks dips of 5%-10% are bad, what happens if REITs drop by 70% like they did a few years ago?
Well, Newb has over 1000 posts.

[OT comments removed by admin LadyGeek.]
I don't think that was called for... but you are entitled to your own opinion.
LAlearning wrote:Didn't know post count had anything to do with, well anything. He is still paying commissions :oops:
I pay commissions because I'm in Canada and only Vanguard ETFs are offered here.
InvestorNewb, you're right that my comment was not called for. It was an attempt at humor, but it was at your expense, and that is not a good way for me to behave. I apologize.

It has to be said, however, that you have been counseled, probably a hundred times, that if you start so many of the "oh no, should I buy more, should I go all in, should I get out?" threads, it is a sign that your AA is too unstable and that you should simplify and reduce the risk. I think that you are a prime candidate for a single fund approach, which is not an insult -- if I were counseling my beloved and intelligent wife on what to do after my death, I would give the exact same advice; she needs an automated investment vehicle that does not require research and does not cause regret. Horses for courses.
I get the FI part but not the RE part of FIRE.
ML 59
Posts: 117
Joined: Sun May 26, 2013 8:26 pm

Re: Should I buy more REITs?

Post by ML 59 »

Newb, I have an idea for you to consider.

Construct a serious thread chronicling the writing of an IPS, namely your IPS, with input from the forum. Break it down into discrete elements and even discrete threads to keep it from getting too unwieldy. I found the process of writing this document to be an inward look at myself - and that’s why you have to write yours and cannot just copy someone else’s.

A number of forum heavy hitters have tried to help you here and in the past but the help appears to be lost. Being a forum, your journey through the writing process may inspire others to follow along.

Think about it.

BTW. I limit myself to a 10% or less REIT.
User avatar
Peculiar_Investor
Site Admin
Posts: 2445
Joined: Thu Oct 20, 2011 12:23 am
Location: Calgary, AB 🇨🇦
Contact:

Re: Should I buy more REITs?

Post by Peculiar_Investor »

ML 59 wrote:A number of forum heavy hitters have tried to help you here and in the past but the help appears to be lost. Being a forum, your journey through the writing process may inspire others to follow along.
Well said and a very good recommendation.
Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
User avatar
abuss368
Posts: 27850
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!
Contact:

Re: Should I buy more REITs?

Post by abuss368 »

This was a good thread!
John C. Bogle: “Simplicity is the master key to financial success."
Post Reply