I am with Schwab and invest with a automated purchase plan

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Topic Author
TimTheEnchanter
Posts: 7
Joined: Fri Jul 12, 2019 12:54 am
Location: California

I am with Schwab and invest with a automated purchase plan

Post by TimTheEnchanter »

I have a list of funds, some index some proprietary with some fixed income as well. Initially, I set up the periodic purchase (dollar cost average) with monthly intervals but recently I am a bit cautious of the market, decided to invest quarterly a but larger amount. Frankly, I expect a selloff this year or next. I am only 10-percent invested and a big portion of that is gold mining, banking, energy sector, and fixed income. What do you think of my rationale? I have my wife IRA invested roughly in 45% stocks but she is 10-years younger than me and will get a very nice pension on top. Her return is still a nice 19-percent.
"Neither a borrower nor a lender be. Do not forget, stay out of debt..." Shakespeare
123
Posts: 7361
Joined: Fri Oct 12, 2012 3:55 pm

Re: I am with Schwab and invest with a automated purchase plan

Post by 123 »

I don't deal with any individual stocks or sectors. I use Vanguard mutual funds and ETFs and I never have to work about individual stock or sector risk. And I am pretty much guaranteed to get market returns (except for a small fraction for expense ratio). But some people like things more complicated or want to "do more" to feel they can out think the market.

You can exercise a lot of mental energy to "beat" the system but it is more likely to beat you.
The closest helping hand is at the end of your own arm.
Topic Author
TimTheEnchanter
Posts: 7
Joined: Fri Jul 12, 2019 12:54 am
Location: California

Re: I am with Schwab and invest with a automated purchase plan

Post by TimTheEnchanter »

I do not hold stocks either. sectors are not a bad way to go and I do not think they overcomplicate anything, especially if you believe in hard assets and inflation (I like real estate, commodities, gold funds). at any rate to each its own...
"Neither a borrower nor a lender be. Do not forget, stay out of debt..." Shakespeare
000
Posts: 4944
Joined: Thu Jul 23, 2020 12:04 am

Re: I am with Schwab and invest with a automated purchase plan

Post by 000 »

I agree both that we are likely to see a big drop at some point and with the bullishness on gold miners and energy but IMO the current party can go on for a long time. I prefer adding commodity producer tilts alongside a broadly diversified portfolio instead of as the sole stock exposure.
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