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Call_Me_Op

I would diversify. I notice you do not have any treasuries. I like my bonds to be very high quality.

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Hi dbr, I think you are defining the bucket strategy in a somewhat narrow sense. For example, Chrisitne Benz, a big bucket advocate, suggests that money can be moved between buckets. Most descriptions of bucket strategies I have seen suggest refilling bucket 1 from bucket 2 and/or bucket 3. I think ...

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Good point Ivy. I am still waiting for someone to elucidate the fundamental distinction of a bucket strategy versus other strategies. It seems that everyone separates their investments into categories (mentally or otherwise) that can be called buckets. I think the only real distinguishing factor is ...

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Reading through this thread really highlights that there are a lot of market timers among us. TIIA RE annuity is an odd one - one of the few (only) times I have been over to Morningstar to discuss. It *was* possible to time it. People who sold out at the beginning of the Global Financial Crisis in ...

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The amount I save by doing my own investing pays for the help I hire 10 times over.

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I would caution against constructing a portfolio primarily based upon back testing (which I think is driving your high allocation to long treasuries and small allocation to international equities). The big decision is equities versus fixed income. You are about 50:50, which is OK. However, I would s...

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The trouble with the One Big Bucket O'Money approach to retirement, for me, is that I have never had a big bucket of money. Instead I have had a series of problems that need to be solved. Can I live indoors, independently, in nice surroundings I choose? Can I keep the heat, water, and lights on? Ca...

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Reading through this thread really highlights that there are a lot of market timers among us.

Call_Me_Op

The trouble with the One Big Bucket O'Money approach to retirement, for me, is that I have never had a big bucket of money. Instead I have had a series of problems that need to be solved. Can I live indoors, independently, in nice surroundings I choose? Can I keep the heat, water, and lights on? Ca...

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Brianmcg321 wrote: ↑Fri Sep 25, 2020 1:40 pm $5,000,000

Have you considered a used Camry.

Sorry, it's not for sale.

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I find it valuable to think of my investable assets as existing in two buckets - a SAFE bucket and a RISKY bucket. I think this is a valuable dichotomy - if only to mitigate emotional mistakes. The SAFE bucket includes assets that are government guaranteed. This allows me to hold risky assets with h...

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That, to me, seems to be an excellent plan. Yes, intermediate treasuries are as good as fixed income in retirement. The yield is low, but then you get the guarantee that you will receive all your money, Uncle Sam does not default. Not true. The United States defaulted on some Treasury bills in 1979...

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I found that the annual maintenance contract is worse than a waste of money. When they put gauges on the outdoor unit (to look like they're doing something), that causes leaks over time. Then the AC fails at the worst time (during a heat wave) and the company is swamped and won't come out to service...

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I have my mom in a single Lifestrategy fund. It's perfect for her. All she does is receive an annual RMD check. That's it.

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There is always perceived danger. If there were not, there would be no equity return above Tbills.

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Reason is increased diversification.

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After maxing our my 401k and backdoor Roth, I have started putting money into a taxable Schwab brokerage account in the last few months. I recently realized I am holding SWTSX, the total market mutual fund, instead of an equivalent ETF like SCHB. I understand ETFs are somewhat better for tax reason...

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Unless you are willing to risk principal, US treasuries (preferably purchased as individual securities maturing in less than 2-3 years) are your only option.

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About 1 ton per 500-600 sq feet seems about right.

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In conclusion, performance chasing or any other market timing activity that doesn't shift overall market exposure shouldn't change your odds of under/over performing the relevant index. You are speaking strictly from the financial theory perspective and ignoring human behavior. Chasing performance ...

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Rick, I believe you are overthinking this. If you believe in cap weighting, that should extend outside of US borders. Otherwise, why not parse the US market based upon sectors and reallocate your money in some way other than cap weighting? Or why not exclude stocks of companies west of the Mississip...

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Sounds like an honest mistake that was corrected before any real damage was done. You are being too critical.

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I don't have a gambling tendency, but I've been thinking of putting up $1k or so on options trading and see what happens. For $3k, I don't think it's that bad... it's safe (e.g. No COVID risk).... and probably won't make a dime's bit of difference in your final retirement. That's a good point. If i...

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On this mornings show, Edelman was telling are people to sell their stock investments if they feel scared. All the while scaring them with evidence of a market drop, cycles show sell off etc. Are you selling? I am surprised. Usually, Rick does not give that advice. He is focused on getting new busi...

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sp226 wrote: ↑Sun Sep 06, 2020 7:15 am I've been using Quicken to track my finances since my first real job in 1999, and have 20 years of very accurate data.
But for some reason, I can't calculate my average returns accurately.

Average return and CAGR are different - which do you want?

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The risk is, regardless of how responsible you think he is, he might not repay the loan and that will cause problems in the relationship. Some would argue that just having a creditor/debtor relationship between two family members can be unhealthy. (I think home mortgages tend to be viewed differentl...

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On this mornings show, Edelman was telling are people to sell their stock investments if they feel scared. All the while scaring them with evidence of a market drop, cycles show sell off etc. Are you selling? I am surprised. Usually, Rick does not give that advice. He is focused on getting new busi...

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smalliebigs wrote: ↑Sat Sep 05, 2020 9:57 pm However, my wife has itchy fingers and wants to buy single stocks. But she doesn't really quite know about the mechanics, so wants me to do it.

Is she aware that individual stocks have the same expected return (as the index) but much higher risk?

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Let me start by saying I'm a Tesla fanboy and own stock (and options). I also think it's inevitable that Tesla will be added to S&P at some point (although not today). However, that got me thinking: let's say the S&P decides to not include it in their index at all for the rest of this year and mayb...

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In the past 2 months, I have been approached by managers about taking over positions for people that are moving to more advanced roles. After some thought, I declined both offers because I truly love my current role (love my team, flexibility, feeling like I contribute, no travel, minimal stress, e...

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I don't see any easy solutions. You don't want to build a big wall. It would take a lot of vegetation to make a significant difference. Noise cancelling headphones will help or earplugs, but I can't sleep with either. What is behind you? The noise must be (at least partially) reflecting off of whate...

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No...

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I am 69 years old and refuse to invest in bonds. I know the logic is when the market crashes, the bonds will level out your returns so you are not tempted to make any hasty decisions and weather the storm. However, my logic is even when the market crashes it usually comes back stronger and the tota...

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The Op's post has danger signs written all over it. This is much like early 2000, when the talking heads on CNN were saying that "this is the one time in history that you cannot afford not to be in technology stocks." (I am paraphrasing.) Many people jumped-in with both feet and lost their shirts. M...

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On the bright side, futures for the Russell 2000 are implying an open of up about 1.3% right now, so maybe tomorrow you make some money. The S&P 600 seemed like it was recovering but then it tanked badly again. I have most of my S&P 500 in my 401k which has been setting new records every day. I'm j...

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I personally don’t see the point of holding anything other than the S&P 500. VOO (I choose FXAIX) is already a low-cost, well-diversified fund with large companies that do business throughout the world. The key, in my humble opinion, is to grow wealth in order to sustain a comfortable retirement an...

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Thanks for the replies. I always worry about being a little too conservative. I have been trying to keep it simple. I normally don’t tweak my account, but was just looking over the bond funds while I was helping my mother-in-law go from stocks to bonds. Total Bond is a good parking spot IMO. It pro...

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Vanguard Long Term Invetment Grade (VWESX), and was wondering if I should put some of my bond position in it or just keep VBTLX? I know it has a little more risk but a greater return. Correction - "had" a greater return. That is because interest rates have been falling for a long time and stocks ha...

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Pardon me and let me admit this is a hot topic before I start my argument.. However - If someone reviews the revenue and operation of SP500 companies closely, he/she will be able to notice that 40% of the profits are coming from non-US market. If we agree that 20% of total asset should be in intern...

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Freefun wrote: ↑Mon Aug 31, 2020 2:59 am Since I was confused with the initial article, I found Big Erns explanation helpful.

https://earlyretirementnow.com/2020/08/ ... awal-rate/

It should be obvious that 0.5% makes no sense. This implies enough savings for 200 years at 0% real return.

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superinvestor wrote: ↑Sat Jun 13, 2020 6:31 am Futures market is pricing in negative rates, and this guy thinks cash will not lose nominal value?

You can always keep greenbacks under your mattress if rates go negative.

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This has been troubling me somewhat lately. I have been faithfully rebalancing my (fairly conservative) portfolio regularly. At age 57, I currently have ten years of fixed income in my portfolio. I expect to have 20 years of fixed income when I retire, with the remainder in stocks. I am wondering i...

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I don't think I have ever used the term "Cash is King." That said, everyone should hold some because cash - while not offering much return on your money - does have the rather unique characteristic of guaranteeing return OF your money (whenever you want it).

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I wouldn't stay in a job like that for 10 minutes. Find something else and then quit.

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We are in our very early 60s and just reached a milestone of $2M net worth, not counting our paid off house and cars. That's the good news. The terrible news is that 58% (~$1.2M) is essentially in cash (which includes the TSP G Fund) doing nothing. Overall, we are very conservatively at 42% stocks,...

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Let my fixed income lose some real value. As long as the equities more than compensate, no problem. One should avoid viewing asset classes in isolation.

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My dad died a few months ago. Mom is still sharp mentally and physically. My parents had annuities tied with life insurance. That's the best way she could describe her finances (Not very savvy with investing). About 1.5 years ago mom gave me $95,000 to invest for her, months later she gave another ...

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How does the recommendation to limit foreign stocks to 20% square against the following statement?

"Absolutely no one knows what the stock market is going to do tomorrow, let alone next year. Nor which sector, style or region will lead and which will lag."

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I recently had a refrigerator technician over. He wore a surgical mask. I gave him fresh gloves that he wore the entire time. The only thing he touched w/o the gloves was the door through which he entered. I sanitized the door knobs after he left. Very low risk - but it's never zero. Then again - I ...

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Must be sure to stay away from those "Poison Functions."

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