Where My 100% Equities Peeps At?!?

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khangaroo
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Where My 100% Equities Peeps At?!?

Post by khangaroo »

It's time to test our mettle!! I was in the market during 2008 but I was only a wee lad and my portfolio was minuscule but now seeing that I dropped $30k in a few days has been sobering.

Regardless, I'm in for it the long haul baby so time to buckle down and ride this roller coaster!

Posting to encourage others who have 100% equities allocations to stay the course, grab your board and ride this wave!
Mardoc01
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Re: Where My 100% Equities Peeps At?!?

Post by Mardoc01 »

Right here although no bonds. I have some cash. So I guess not quite 100. Bit Ready to deploy soon.
MadDwag
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Re: Where My 100% Equities Peeps At?!?

Post by MadDwag »

Present and holding the line!
dru808
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Re: Where My 100% Equities Peeps At?!?

Post by dru808 »

not here.
Last edited by dru808 on Sat May 16, 2020 12:26 am, edited 1 time in total.
65% US equity | 25% INTL equity | 10% US long bonds
assyadh
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Re: Where My 100% Equities Peeps At?!?

Post by assyadh »

100% here. Software engineering job at a large cloud megacorp. No need for bonds. 31 Yo. Front loading my 401k
FlyerJack
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Re: Where My 100% Equities Peeps At?!?

Post by FlyerJack »

100% equities in my retirement accounts (retirement 20+ years away), although I have a good amount in high-yield savings for a possible downpayment at some undefined point.

Traditional payroll contributions are automatic and I bought additional total market shares last week for our Roth IRA 2020 contributions. I don’t have a slightest desire to sell. Maybe I’ll start worrying more about fluctuations in 15 years.
veggivet
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Re: Where My 100% Equities Peeps At?!?

Post by veggivet »

I'm close at 90/10. I continued to buy all the way down in 08/09, when I was still working. Deployed some cash last week...waiting for the other shoe to drop next week to put the rest to work. I'd never had a 6 figure down day until last week, when I had two!
Last edited by veggivet on Sat Feb 29, 2020 4:39 pm, edited 1 time in total.
If you watch your pennies, your dollars will take care of themselves.
carminered2019
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Re: Where My 100% Equities Peeps At?!?

Post by carminered2019 »

Right here, retired at 50, 100% equities last 24 years then got into 40% Bonds 6 months ago but realize it’s not for me so going back to 100% equities again. Still up 360% since 1996 after two major recessions, Sep 11 attack, many corrections, many bear attacks, black swan, white swan, couple wars and we as a country will beat the CORONA virus also.


:sharebeer
Last edited by carminered2019 on Sat Feb 29, 2020 6:33 pm, edited 5 times in total.
Nupey03
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Re: Where My 100% Equities Peeps At?!?

Post by Nupey03 »

95-100% here; not loving this development but it is to be expected. I got REALLY unlucky from a timing perspective as my annual cash bonus was paid-out on 2/19 and I immediately dropped a lump sum of >$100k into the market (via VTI/VXUS/VGT). 2/19 has proven to literally be the top-of-the-market :oops: ...
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BigfootTech
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Re: Where My 100% Equities Peeps At?!?

Post by BigfootTech »

Retired middle of 2018 at 47. 100% US equities (plus some non-liquid real estate).
A couple ways of looking at it.
  1. I'm down $190k since Feb 19 peak.
  2. No change since I still own the same number of shares as I did last week.
I prefer #2 to avoid any stress about it. We'll see how I feel in December when I need to take a distribution.
I will try to time the dip for Roth conversions. 8-)
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geerhardusvos
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Re: Where My 100% Equities Peeps At?!?

Post by geerhardusvos »

Nupey03 wrote: Sat Feb 29, 2020 4:00 pm 95-100% here; not loving this development but it is to be expected. I got REALLY unlucky from a timing perspective as my annual cash bonus was paid-out on 2/19 and I immediately dropped a lump sum of >$100k into the market (via VTI/VXUS/VGT). 2/19 has proven to literally be the top-of-the-market :oops: ...
Ditto on the bonus getting toasted. But I have that ESPP and RSU money coming in hot, so will make up for it hopefully
VTSAX and chill
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geerhardusvos
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Re: Where My 100% Equities Peeps At?!?

Post by geerhardusvos »

Currently 90/10 since my Written investment plan said add 10% bonds at age 30ish. Will be buying only equities in 2020 from what I can see
VTSAX and chill
Trader Joe
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Re: Where My 100% Equities Peeps At?!?

Post by Trader Joe »

khangaroo wrote: Sat Feb 29, 2020 3:15 pm It's time to test our mettle!! I was in the market during 2008 but I was only a wee lad and my portfolio was minuscule but now seeing that I dropped $30k in a few days has been sobering.

Regardless, I'm in for it the long haul baby so time to buckle down and ride this roller coaster!

Posting to encourage others who have 100% equities allocations to stay the course, grab your board and ride this wave!
I am 100% VFIAX/VTSAX. I always tune out the noise.
Redfactor
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Re: Where My 100% Equities Peeps At?!?

Post by Redfactor »

Here.

I am still in the accumulation phase and don't have as much to lose as many here; that makes it easier to swallow. I just keep repeating to myself that it's about the number of shares and not the number behind the $ symbol.

My current plan is to tighten up on the spending belt to divert even more funds towards cheap(er) shares. I felt good about purchasing at $83 a share. I feel better about purchasing at $73 a share. I'll feel better yet about purchasing at an even more discounted price.
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TechGuy365
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Re: Where My 100% Equities Peeps At?!?

Post by TechGuy365 »

100% equity in retirement and taxable accounts and as determined as ever!! By Thursday I was down $397k (12%) since 2/15 but that just took me back to the beginning of the year. After Friday I'm up a little YTD (1.3% with new recurring investments). 35%+ savings are still going straight to equity. These are just numbers to me and I'm in for the long run. Exciting times!
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Chrono Triggered
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Re: Where My 100% Equities Peeps At?!?

Post by Chrono Triggered »

I think the market will be higher in 10+ years than it is now so every day is a sale to me.
AlphaLess
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Re: Where My 100% Equities Peeps At?!?

Post by AlphaLess »

khangaroo wrote: Sat Feb 29, 2020 3:15 pm It's time to test our mettle!! I was in the market during 2008 but I was only a wee lad and my portfolio was minuscule but now seeing that I dropped $30k in a few days has been sobering.

Regardless, I'm in for it the long haul baby so time to buckle down and ride this roller coaster!

Posting to encourage others who have 100% equities allocations to stay the course, grab your board and ride this wave!
I would like to know where there are when market is down 70% from the top.

This is nothing. Yet.
"A Republic, if you can keep it". Benjamin Franklin. 1787. | Party affiliation: Vanguard. Religion: low-cost investing.
avecmoi
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Re: Where My 100% Equities Peeps At?!?

Post by avecmoi »

Still 100% equities but will have cash infusion in 1-2 months and salivating about the sale prices on stocks.
Ferdinand2014
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Re: Where My 100% Equities Peeps At?!?

Post by Ferdinand2014 »

I have and will continue to contribute 100% of my weekly contribution to FXAIX (Fidelity 500 Index Fund). I have met my cash (T-bills) goal of sleeping well at night and so no longer add to it.
“You only find out who is swimming naked when the tide goes out.“ — Warren Buffett
UpperNwGuy
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Re: Where My 100% Equities Peeps At?!?

Post by UpperNwGuy »

I've been a 60/40 investor since the beginning. I admire the courage of those who are 100% equities, but I will admire them from a safe distance.
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InvestorNewb
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Re: Where My 100% Equities Peeps At?!?

Post by InvestorNewb »

I'm still 100% equities with a 7-figure portfolio. I didn't get to this point by being risk-averse.
My Portfolio: VTI [US], VXUS [Int'l], VNQ [REIT], VCN [Canada] (largest to smallest)
PRMECP
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Re: Where My 100% Equities Peeps At?!?

Post by PRMECP »

Present
Yes, I like PRIMECAP. A lot.
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firebirdparts
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Re: Where My 100% Equities Peeps At?!?

Post by firebirdparts »

I made it to my 50s and I have exited your merry band, but I am still cheering for you.
A fool and your money are soon partners
Thesaints
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Re: Where My 100% Equities Peeps At?!?

Post by Thesaints »

khangaroo wrote: Sat Feb 29, 2020 3:15 pm Where My 100% Equities Peeps At?!?
Around 88%, give or take...
JohnDindex
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Re: Where My 100% Equities Peeps At?!?

Post by JohnDindex »

Right here! Still buying weekly as usual. No changes except some TLH
justsomeguy2018
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Re: Where My 100% Equities Peeps At?!?

Post by justsomeguy2018 »

vipertom1970 wrote: Sat Feb 29, 2020 3:59 pm Right here, retired at 50, 100% equities last 24 years then got into 40% Bonds 6 months ago but realize it’s not for me so going back to 100% equities again. Still up 360% since 1996 after two major recessions, Sep 11 attack, many corrections, many bear attacks, black swan, white swan, couple wars and we as a country will beat the CORONA virus also.


:sharebeer

Interestingly, according to portfolio visualizer, starting from 1996 it looks like 100% equities did not really significantly pull ahead of a 60/40 portfolio (using int. treasuries as bonds) rebalanced annually until about 2015.
CatLadyNyc
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Re: Where My 100% Equities Peeps At?!?

Post by CatLadyNyc »

Lost 400k this week ...hanging in there. I got a new job with 100k sign on bonus - might dump it all in VTSAX.
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firebirdparts
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Re: Where My 100% Equities Peeps At?!?

Post by firebirdparts »

justsomeguy2018 wrote: Sat Feb 29, 2020 9:56 pm

Interestingly, according to portfolio visualizer, starting from 1996 it looks like 100% equities did not really significantly pull ahead of a 60/40 portfolio (using int. treasuries as bonds) rebalanced annually until about 2015.
That's true, but we didn't know that. I guessed, in 1996, that 100% equities was the place to be. The period from 1999 to 2002 was very, very sad. After that I was okay. I was okay with it in 2008.
A fool and your money are soon partners
alibaba123
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Re: Where My 100% Equities Peeps At?!?

Post by alibaba123 »

Do you guys think it is a good idea to be 100% equities even in retirement?
TheDDC
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Re: Where My 100% Equities Peeps At?!?

Post by TheDDC »

To OP: Here I am.
alibaba123 wrote: Sat Feb 29, 2020 10:48 pm Do you guys think it is a good idea to be 100% equities even in retirement?
Yessir. I would say there is a larger cash component there that is not spoken of for most retirees who are 100% equities. There may also be some passive income strategies at play, which we recommend consistently to retirees. That could take the form of pensions or real estate rental income.

I plan to stay 100% equities into retirement, and I'm 37.

-TheDDC
Rules to wealth building: 90-100% VTSAX piled high and deep, 0-10% VIGAX tilt, 0% given away to banks, minimize amount given to medical-industrial complex
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firebirdparts
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Re: Where My 100% Equities Peeps At?!?

Post by firebirdparts »

alibaba123 wrote: Sat Feb 29, 2020 10:48 pm Do you guys think it is a good idea to be 100% equities even in retirement?
Not really. I've already bailed. But you could do far worse.
A fool and your money are soon partners
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cchrissyy
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Re: Where My 100% Equities Peeps At?!?

Post by cchrissyy »

90/10, staying the course
SovereignInvestor
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Re: Where My 100% Equities Peeps At?!?

Post by SovereignInvestor »

Holding strong and adding weekly.

Spread between S&P 500 dividend yield and 10year yield is widest since 2012 and then 2009.

S&p forward earnings yield is around 6%, okay shave it to 5% say if corona virus causes hit. 10year note is close to 1%. That's a very fat risk premium that compensates equity investors well.
SovereignInvestor
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Re: Where My 100% Equities Peeps At?!?

Post by SovereignInvestor »

Holding strong and adding weekly.

Spread between S&P 500 dividend yield and 10year yield is widest since 2012 and then 2009.

S&p forward earnings yield is around 6%, okay shave it to 5% say if corona virus causes hit. 10year note is close to 1%. That's a very fat risk premium that compensates equity investors well.
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JoMoney
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Re: Where My 100% Equities Peeps At?!?

Post by JoMoney »

I had some steep losses this week, like several years salary losses... :annoyed
It hasn't really phased me (yet). I'm still up for the past year (12mo).
Still making my regular payroll purchases and moving along, nothing has really changed my plans. While the timing was unexpected, drops like this (and worse) were completely expected. It's not in my plan to try and jump in-out-around these things, so.. :confused
"Press on regardless."
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
pharmermummles
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Re: Where My 100% Equities Peeps At?!?

Post by pharmermummles »

This doesn't really qualify as a legitimate test yet, but I really cannot wait until I have been thoroughly tested so that I have an answer to all of the people who insist I shouldn't be 100% equities because I didn't invest through 2008. Just because I'm young doesn't mean I don't know my own risk tolerance. I updated my spreadsheet, saw that I lost ~$15K in the last two weeks, texted my wife the stat with a "lol", and went back to ignoring the news.
Ornery Old Guy
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Re: Where My 100% Equities Peeps At?!?

Post by Ornery Old Guy »

Nupey03 wrote: Sat Feb 29, 2020 4:00 pm 95-100% here; not loving this development but it is to be expected. I got REALLY unlucky from a timing perspective as my annual cash bonus was paid-out on 2/19 and I immediately dropped a lump sum of >$100k into the market (via VTI/VXUS/VGT). 2/19 has proven to literally be the top-of-the-market :oops: ...
ON the other hand ... read the story about "the worst market timer ever." Search for it on this website. There's pretty much no bad time to dump it in as long as you're investing long term.
Ornery Old Guy
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Re: Where My 100% Equities Peeps At?!?

Post by Ornery Old Guy »

avecmoi wrote: Sat Feb 29, 2020 4:39 pm Still 100% equities but will have cash infusion in 1-2 months and salivating about the sale prices on stocks.
Better get it in sooner than that! In two months we will be back to where we were two weeks ago!
Ornery Old Guy
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Re: Where My 100% Equities Peeps At?!?

Post by Ornery Old Guy »

AlphaLess wrote: Sat Feb 29, 2020 4:37 pm
khangaroo wrote: Sat Feb 29, 2020 3:15 pm It's time to test our mettle!! I was in the market during 2008 but I was only a wee lad and my portfolio was minuscule but now seeing that I dropped $30k in a few days has been sobering.

Regardless, I'm in for it the long haul baby so time to buckle down and ride this roller coaster!

Posting to encourage others who have 100% equities allocations to stay the course, grab your board and ride this wave!
I would like to know where there are when market is down 70% from the top.

This is nothing. Yet.
Why will it go down 70%? 2008 we had people borrowing enormous leverage (houses) with nothing to back it up, and an enormous amount of money went poof. And even then the market only went down 50 then came up over a reasonable amount of time. What do you see today that's worse than that?
Ztx
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Re: Where My 100% Equities Peeps At?!?

Post by Ztx »

Early 40s.. 100% stocks and holding firm!
Ornery Old Guy
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Re: Where My 100% Equities Peeps At?!?

Post by Ornery Old Guy »

alibaba123 wrote: Sat Feb 29, 2020 10:48 pm Do you guys think it is a good idea to be 100% equities even in retirement?
I'd say equities is for money you don't need for at least 10 years, preferably 20 years. If you're in retirement and that's your only source of income it's a very very bad decision. Frankly stupid and irresponsible. If you're in retirement and you have a pension that pays your daily bills that's another story. Don't forget too if you think you'll live till 90 and you're retired at 60, you have 30 years of expenses and you better have something in equities because nothing else should be expected to beat inflation.
Caduceus
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Re: Where My 100% Equities Peeps At?!?

Post by Caduceus »

Ornery Old Guy wrote: Sun Mar 01, 2020 12:02 am
alibaba123 wrote: Sat Feb 29, 2020 10:48 pm Do you guys think it is a good idea to be 100% equities even in retirement?
I'd say equities is for money you don't need for at least 10 years, preferably 20 years. If you're in retirement and that's your only source of income it's a very very bad decision. Frankly stupid and irresponsible. If you're in retirement and you have a pension that pays your daily bills that's another story. Don't forget too if you think you'll live till 90 and you're retired at 60, you have 30 years of expenses and you better have something in equities because nothing else should be expected to beat inflation.
I could see it being fine for extremely wealthy people. If you have 10 or 20 million in investments, you'd likely come out ahead over time (for yourself or your heirs) with a 100% equity allocation and in the meantime, even the worst fluctuations in market conditions isn't going to really affect your standard of living (but maybe it's just because I'm not imaginative enough about how truly insanely rich people spend their money!)
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Cheez-It Guy
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Re: Where My 100% Equities Peeps At?!?

Post by Cheez-It Guy »

Checkin' in at ~95%. Mostly cash in remaining 5%.
Ornery Old Guy
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Re: Where My 100% Equities Peeps At?!?

Post by Ornery Old Guy »

Caduceus wrote: Sun Mar 01, 2020 12:07 am
Ornery Old Guy wrote: Sun Mar 01, 2020 12:02 am
alibaba123 wrote: Sat Feb 29, 2020 10:48 pm Do you guys think it is a good idea to be 100% equities even in retirement?
I'd say equities is for money you don't need for at least 10 years, preferably 20 years. If you're in retirement and that's your only source of income it's a very very bad decision. Frankly stupid and irresponsible. If you're in retirement and you have a pension that pays your daily bills that's another story. Don't forget too if you think you'll live till 90 and you're retired at 60, you have 30 years of expenses and you better have something in equities because nothing else should be expected to beat inflation.
I could see it being fine for extremely wealthy people. If you have 10 or 20 million in investments, you'd likely come out ahead over time (for yourself or your heirs) with a 100% equity allocation and in the meantime, even the worst fluctuations in market conditions isn't going to really affect your standard of living (but maybe it's just because I'm not imaginative enough about how truly insanely rich people spend their money!)
Oh true ... Although even then ... If you were a Rockefeller and the market dropped 50% you would nonetheless NOT want to sell your stocks at 50% discount to go out for dinner. I don't want to sound defensive (though I'll come out this way) any money you need less than ten years from now shouldn't be in equities with the possible exception if you're a Rockefeller or similar and so rich money has little meaning to you. You're right of course. I was thinking people with under 10 or 20 million. Although to be honest if you have 10-20M you probably have expenses such that you can't afford to lose 50%. Dropping from 20M to 10 might not be a big deal but I think dropping from 10M to 5 would probably impact your life in the sense that you know you can't run out of money if you have 10 but you really could if you have 5.
alibaba123
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Re: Where My 100% Equities Peeps At?!?

Post by alibaba123 »

Ornery Old Guy wrote: Sun Mar 01, 2020 1:03 am
Caduceus wrote: Sun Mar 01, 2020 12:07 am
Ornery Old Guy wrote: Sun Mar 01, 2020 12:02 am
alibaba123 wrote: Sat Feb 29, 2020 10:48 pm Do you guys think it is a good idea to be 100% equities even in retirement?
I'd say equities is for money you don't need for at least 10 years, preferably 20 years. If you're in retirement and that's your only source of income it's a very very bad decision. Frankly stupid and irresponsible. If you're in retirement and you have a pension that pays your daily bills that's another story. Don't forget too if you think you'll live till 90 and you're retired at 60, you have 30 years of expenses and you better have something in equities because nothing else should be expected to beat inflation.
I could see it being fine for extremely wealthy people. If you have 10 or 20 million in investments, you'd likely come out ahead over time (for yourself or your heirs) with a 100% equity allocation and in the meantime, even the worst fluctuations in market conditions isn't going to really affect your standard of living (but maybe it's just because I'm not imaginative enough about how truly insanely rich people spend their money!)
Oh true ... Although even then ... If you were a Rockefeller and the market dropped 50% you would nonetheless NOT want to sell your stocks at 50% discount to go out for dinner. I don't want to sound defensive (though I'll come out this way) any money you need less than ten years from now shouldn't be in equities with the possible exception if you're a Rockefeller or similar and so rich money has little meaning to you. You're right of course. I was thinking people with under 10 or 20 million. Although to be honest if you have 10-20M you probably have expenses such that you can't afford to lose 50%. Dropping from 20M to 10 might not be a big deal but I think dropping from 10M to 5 would probably impact your life in the sense that you know you can't run out of money if you have 10 but you really could if you have 5.
If i were to retire i would want to make sure i have at least 40-50x expenses. That would put me in the 5 million range in today's dollars (nowhere near 10-20 million) At 2-2.5% withdrawal rate, it is shown that there is 100% success rate. I am thinking if i should just do 100% equities even into retirement.
carminered2019
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Re: Where My 100% Equities Peeps At?!?

Post by carminered2019 »

alibaba123 wrote: Sat Feb 29, 2020 10:48 pm Do you guys think it is a good idea to be 100% equities even in retirement?
I retired at 50, 100% equities soon but no way would I recommend someone to be in 100% equities after 50. For my situation, I got zero debt, my yearly expenses is fairly low, I have two years of EF(might save up to 5), my only child is out of the house, I have building rentals that cover my 1/3 of expenses and my dividends cover the other 2/3.
Last edited by carminered2019 on Sun Mar 01, 2020 1:07 pm, edited 2 times in total.
minimalistmarc
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Re: Where My 100% Equities Peeps At?!?

Post by minimalistmarc »

I’m 40 and am in a DB pension scheme but apart from that 100% equities. I did have 20k in cash last week for a possible near term purchase but couldn’t stop myself buying equities with it on Friday. Here’s hoping for even cheaper prices to come as I’m still accumulating for another 15 years
Ornery Old Guy
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Re: Where My 100% Equities Peeps At?!?

Post by Ornery Old Guy »

alibaba123 wrote: Sun Mar 01, 2020 1:26 am
Ornery Old Guy wrote: Sun Mar 01, 2020 1:03 am
Caduceus wrote: Sun Mar 01, 2020 12:07 am
Ornery Old Guy wrote: Sun Mar 01, 2020 12:02 am
alibaba123 wrote: Sat Feb 29, 2020 10:48 pm Do you guys think it is a good idea to be 100% equities even in retirement?
I'd say equities is for money you don't need for at least 10 years, preferably 20 years. If you're in retirement and that's your only source of income it's a very very bad decision. Frankly stupid and irresponsible. If you're in retirement and you have a pension that pays your daily bills that's another story. Don't forget too if you think you'll live till 90 and you're retired at 60, you have 30 years of expenses and you better have something in equities because nothing else should be expected to beat inflation.
I could see it being fine for extremely wealthy people. If you have 10 or 20 million in investments, you'd likely come out ahead over time (for yourself or your heirs) with a 100% equity allocation and in the meantime, even the worst fluctuations in market conditions isn't going to really affect your standard of living (but maybe it's just because I'm not imaginative enough about how truly insanely rich people spend their money!)
Oh true ... Although even then ... If you were a Rockefeller and the market dropped 50% you would nonetheless NOT want to sell your stocks at 50% discount to go out for dinner. I don't want to sound defensive (though I'll come out this way) any money you need less than ten years from now shouldn't be in equities with the possible exception if you're a Rockefeller or similar and so rich money has little meaning to you. You're right of course. I was thinking people with under 10 or 20 million. Although to be honest if you have 10-20M you probably have expenses such that you can't afford to lose 50%. Dropping from 20M to 10 might not be a big deal but I think dropping from 10M to 5 would probably impact your life in the sense that you know you can't run out of money if you have 10 but you really could if you have 5.
If i were to retire i would want to make sure i have at least 40-50x expenses. That would put me in the 5 million range in today's dollars (nowhere near 10-20 million) At 2-2.5% withdrawal rate, it is shown that there is 100% success rate. I am thinking if i should just do 100% equities even into retirement.
First, nothing in life is 100%. We play the odds.

Anything you have in equities you really must assume can drop 50% and stay that way for 20 years. It’s not likely but it is well within a reasonable possibility. If you had 5M and were counting on 2% withdrawal rate for 100K and that were your only source of income (which was the predicate), and 2008 happens and now you’re down to 2.5M and 50K income, and you really actually need 100K, you are screwed.

If you have 5M in the bank and you are planning on a 2% withdrawal, you should probably be mostly in bonds. You are COUNTING on 2%. The likelihood of your bonds crashing significantly is much much less than your stocks. Bear market occurs about every five years.

Money that you need under ten years should not be in equities. My two cents.

On the other hand if you have a pension or SS covers most of your expenses, that’s a different predicate (if I’m using the word correctly which I may not be). That’s a different situation.
Ornery Old Guy
Posts: 191
Joined: Tue Feb 04, 2020 2:55 pm

Re: Where My 100% Equities Peeps At?!?

Post by Ornery Old Guy »

minimalistmarc wrote: Sun Mar 01, 2020 2:55 am I’m 40 and am in a DB pension scheme but apart from that 100% equities. I did have 20k in cash last week for a possible near term purchase but couldn’t stop myself buying equities with it on Friday. Here’s hoping for even cheaper prices to come as I’m still accumulating for another 15 years
For money you won’t need for 15-20 y you should be 100% equity. You are young. If the market crashes 50% it will be back up by the time you need it. If you were in retirement you’re gambling too much if you don’t have a reliable source of income. Also there’s pensions and there’s pensions. If you own a company and you fully funded the pension you’re in great health. If you’re an employee of CA and in CALPERS or any of the other unfunded government pensions, many of those people are not counting on having a full pension. If you’re an employee of Kaiser Permanente you can probably count on the pension being there. There are pensions and there are pensions.
SovereignInvestor
Posts: 601
Joined: Mon Aug 20, 2018 4:41 pm

Re: Where My 100% Equities Peeps At?!?

Post by SovereignInvestor »

Agree with the recognition that equities have extreme downside risk. But pensions aren't totally risk free. You know...they usually invest half in equities. If stock market dropped 50% and stayed there nearly all pension plans would be insolvent since local government ones and multiemployer ones rely on 7%+ return assumptions.

Federal pension would be safe since backed by US credit which is risk free. But local government ones would be pressured heavily and private single employer ones are only back stopped up to about 55K and multiemployer ones are back stopped up to 12K and already mostly are in poor shape.

Just be careful assuming that all pensions are 100% safe because they are basiscaly just promoses based on equities not bombing heavily unless backed by something super strong like US Federal credit.
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