What is your theory on investments re age...

[masraum]

Originally Posted by aschen

out of lazyness and some ignorance I have been buying these at least in my Roth

https://investor.vanguard.com/mutual-funds/target-retirement/#/

Up the risk/reward factor a bit by selecting a retirement date slightly longer than I hope to achieve.

Yep, I've heard that they can be a bit conservative and that's the way to adjust. They take a lot of the trouble out of figuring out what to do, but I think the costs are usually a little higher because of the extra management. Still, not a bad solution.

[Seahawk]

Originally Posted by masraum

I think it depends upon how much risk you are willing to endure. I also think that it depends upon how on track you are for retirement. Are you ahead of the game, then you could likely have more in the market. Are you behind, then maybe you need to be more conservative.

I'm not doing bad, but from my point of view, I'm behind. I'm also confident that I've got risk minimized, through index funds that are spread around through various asset classes, so I have more in the market than is usually recommended.

Excellent post, one echoed in the Motley Fool link you pasted, #2.

I have been investing since I was 10 years old - my parents did the whole allowance/chores money earned very well. Standard stuff: Go to the bank, open a savings account, pass book, the whole nine. I had to save, later invest, 25% of my allowance and later earnings on the ranch.

My Dad taught me how to look at stocks in the paper, FGS. Different time.

I was making good money as a Little League Umpire when I was 15: $7.50 a game and I averaged 4 games a week. This was in 1971. 25% automatically, a habit, was stashed.

The good news/bad news is that I was never a financial risk taker based on that upbringing. My parents were low to moderate risk takers financially and by default so am I. I have left a lot on the table but frankly I would have worried too much. Not worth it, at least in my mind.

We are are, however, willing to risk on physical assets, particularly real estate. We all did very well there, continue to do so.

Now, at 65, we are in excellent shape and I am very comfortable with a portfolio that reflects my age and risk tolerance.

[NYNick]

If you're married, the stock/bond ratio as it pertains to you age is dumb. You're not investing for your lifetime, you're investing for whoever lives the longest. That's your time horizon.

Once you're financially secure, all those predetermined plans and ratios go out the window. We're not going to see any Great Depressions anymore, so you should be investing somewhat vigorously. Patience and consistency are key. Panicking under any circumstances is the worse thing you can do. Don't.

It's been proven time and time again the the stock market (not the bond market BTW) provides the greatest return on investment long term. Don't be a baby. It always bounces back. Always.

[Scott Watkins]

Everyone's situation is different.

If I were 16 and starting all over today, I would invest as much as can every payday in SWVXX. This is what we've done for our grandchildren and their money has doubled in the short lives.

I always recommend educate yourself and ask questions.

Good place to start learning.

https://www.bogleheads.org/forum/index.php

[Z-man]

So question for the Pelican brain trust:

Regarding Equities: what's your breakdown? Single Stocks? ETF's? Mutual funds? Does it differ from what type of investment you have? (IRA, Roth IRA, 401K...etc)..

[93nav]

Originally Posted by stevej37

I quit working at 60...was plenty concerned if I was making the right decision.

Markets have been great since and my net worth is more now than it was when I retired. (8 years ago)
Have used Ed Jones for almost everything.
Their advisory account has returned over 10% every year that I've been in it.

The markets have been very good for the last 10 +/- years, hard not to make money. Just something to point out.

[93nav]

Originally Posted by NYNick

IIt always bounces back. Always.

Yeh, but sometimes it takes a LONG time bounce back. Look at the highs of 1929 and 1966. both are about 30 years to recover.

With the Fed keeping the interest rates low (artificially), the federal deficit, and the cyrpto craze, I think we are in uncharted waters. But if I knew what I was talking about, would I be here?

Personally, I am not 'all in' on the market like I have been before the last 3 or 4 years.

https://www.macrotrends.net/1319/dow-jones-100-year-historical-chart

[Crowbob]

Originally Posted by Z-man

So question for the Pelican brain trust:

Regarding Equities: what's your breakdown? Single Stocks? ETF's? Mutual funds? Does it differ from what type of investment you have? (IRA, Roth IRA, 401K...etc)..

Your age, risk tolerance and retirement goals would determine the Answers to your question.

Me, I’m retired, a Chicken**** and dumb so I’m staying in mostly index funds for my 401k, shiny metals with a healthy pile of cash.

Best thing to do first is get debt free in or just before retirement.

[hbueno]

Originally Posted by Z-man

So question for the Pelican brain trust:

Regarding Equities: what's your breakdown? Single Stocks? ETF's? Mutual funds? Does it differ from what type of investment you have? (IRA, Roth IRA, 401K...etc)..

For me and my wife, for pre-tax holdings it's 80/20 stocks/bonds in Vanguard Wellington, Vanguard Primecap, Vanguard Total Stock Market Index Fund, and Vanguard Total Bond Market Index Fund. All have low management fees and according to the site, our personal rate ot return has been 15% over the last 10 years.

For post-tax holdings, the majority is in Vanguard Total Stock Market and Vanguard Wellesley - ~85/15 stock/bonds plus some cash.

I'll second Scott Watkins, check out the forum at bogleheads.com. Their philosophy is that dealing with individual stocks is basically just gambling.

[Tidybuoy]

I guess I am following a more aggressive approach as I do not have any bonds and the bare min in cash. My investments are stocks, ETF's, and 4 mutual funds as well as my 401k. I mostly focus on dividend aristocrat companies that are: Large S&P500, have paid dividends for 25+ consecutive years, and have year after year increases. I've been doing Roth conversions every year and my goal is to have my entire IRA converted to a Roth within the next 10 years without bumping me into the next tax bracket. I am lucky to be able to offset my conversion tax liability with my rental deductions and depreciation. The only debt I have is my rental property and that is being 100% covered by my tenant's rents and generates a good cash flow.

I am 60 and will work until I am 70 - I like my job and it pays well enough for me to save a substantial amount each year. I have rental property as well so I feel that if the market were to dip, even over a prolonged period, I could survive on SS and rental property income.

[Jims5543]

Originally Posted by Z-man

You bring up an excellent point: Most people just look at age, and not your current net worth and how that relates to your future net worth.

The more $$ you have, the more you can invest in higher risk investments, such as the stock market.

The stock market has not been High risk since 4Q 2008.

Anyone could make money in the stock market for the last 13 years, there have been no real downs other than the Covidian scare where anyone with half a brain could have made big bank.

My buddy dumped 100K into the markets when they dipped in March 2020, all of it in Airlines and Cruise Lines.

He tripled his money. I thought he was crazy, he saw something I did not and benefited greatly.


Here is a fantastic tool when it comes to investing in the market.

https://traderschoice.net/about-traders-choice/

Scroll down and look at the MMRI - right now it is saying low risk, invest and do not worry.

I am in my mid 50's and have my money spread out everywhere. I cannot toss out percentages off the top of my head.

I have a Money Market Accnt that I contribute a decent amount weekly to.

Wife and I have both max out standard IRA's every year that are both investment accounts, I am about to contact the adviser and move them into PM only investments for the next couple of years. I think we are 6-12 months from a Market crash.

I have a decent amount in Crypto all across many different crypto's. I toss it on a wall and hope something sticks. Looking for the next Bitcoin... SHIB I am looking at you.

I also converted 50% of my cash into physical Silver and gold these last 6 years.

As well as having enough cash on hand to live a year without banks.

Want me to get started on my 1 year pantry goals?

I really need to get out of this tract home and onto some land so I can get livestock and start a small family farm.

*edit* I should also add, I have zero debt, no CC ,no car loans, and no mortgage. My only bills are utilities and home insurance / taxes. We just dumped close to 50K into the house on home improvements in order to make it maintenance free for the next 10 years. New impact doors, impact windows, hurricane shutters, metal roof, up to code Garage door, new Generator, new up to code Screen enclosure over pool and new Air Conditioning.

The house should need nothing for the next 10 years easy. My salary is the most it has ever been in my life, my business is 100% debt free and cranking in profits, while I do not expect these good economic times to last, I am prepared for a slow down with no overhead other than payroll and utilities. My plan is to sock away enough in the next 10 years to consider partial retirement. I love what I do and cannot fathom stopping myself from doing it.

[TimT]

I'm 60..

And recently decided I'm done with working

I have 1.2 million in my 401K

And over 800K in my ESOP

I plan on paying myself a salary equal to what I get now until I'm 65... then hitting up social security and Medicaid when I'm 65

Which will reduce how much I have to dip into my retirement funds..

[ckelly78z]

At 56 years old, I have no debt (10 acre farm, and cars paid off). I will have a 28 year pension at 62 years old, and the 401K is currently approaching 500K. The 401K is split evenly between Roth, and standard, and has been gaining an average of 20% yearly for the last 6-7 years with additionally 20% of my pay being added. I plan on building a cash fund that will cover 2-3 years of expenses in case the stock market dives, that I could use instead of selling low. I also have a Schwab investing acct that I play with high risk stuff...I made $$ on AMC, and soon will on DWAC.

My concern is paying for 3 years of health care if I go at 62 with my pre-existing conditions.

[dan88911]

Originally Posted by Z-man

So question for the Pelican brain trust:

Regarding Equities: what's your breakdown? Single Stocks? ETF's? Mutual funds? Does it differ from what type of investment you have? (IRA, Roth IRA, 401K...etc)..

Breakdown? 2/3s equities, 1/3 bonds, cash and stable valve.

Single stocks,ETFs, Mutual funds? All are part of the equities portion. There is some overlap.

IRA, Roth IRA, 401k ...etc? At the end of day, where ever you invest your money it's steal just one portfolio.

[masraum]

Originally Posted by Z-man

So question for the Pelican brain trust:

Regarding Equities: what's your breakdown? Single Stocks? ETF's? Mutual funds? Does it differ from what type of investment you have? (IRA, Roth IRA, 401K...etc)..

low cost equity index funds
ETFs that mimic ^
mutual funds that mimic ^

The only changes is that for tax-deferred, I unclude REIT, but for everything else, I do not.

[biosurfer1]

Dividend growth investing....then you don't have to worry about most of this BS

[stevej37]

^^^
Mine would be in more of the Dividend Payer area I think. The dividend has stayed the same for at least 4 years now.
But it still works out great.

[NYNick]

Originally Posted by 93nav

Yeh, but sometimes it takes a LONG time bounce back. Look at the highs of 1929 and 1966. both are about 30 years to recover.

https://www.macrotrends.net/1319/dow-jones-100-year-historical-chart

As I said, we're not going to see any Great Depressions around here again, not to mention your time frame includes WWII, and two other wars.

Consistent investing for decades is the key to success. For those with neither the time, inclination or knowledge to actively manage their own money, a few low cost 5 star index funds will do the trick. Evaluate them occasionally and adjust as necessary.

[Scott Watkins]

"As I said, we're not going to see any Great Depressions around here again, not to mention your time frame includes WWII, and two other wars.

Consistent investing for decades is the key to success. For those with neither the time, inclination or knowledge to actively manage their own money, a few low cost 5 star index funds will do the trick. Evaluate them occasionally and adjust as necessary."

And the church said amen!

[greglepore]

Originally Posted by hbueno

For me and my wife, for pre-tax holdings it's 80/20 stocks/bonds in Vanguard Wellington, Vanguard Primecap, Vanguard Total Stock Market Index Fund, and Vanguard Total Bond Market Index Fund. All have low management fees and according to the site, our personal rate ot return has been 15% over the last 10 years.

For post-tax holdings, the majority is in Vanguard Total Stock Market and Vanguard Wellesley - ~85/15 stock/bonds plus some cash.

I'll second Scott Watkins, check out the forum at bogleheads.com. Their philosophy is that dealing with individual stocks is basically just gambling.

This and similar.

I smell a change in the air, however. The markets have been crazy easy since 2008, and for a good time before that bump in the road as well due to low inflation and interest rates. I'm not sure that the current rise in inflation isn't going to lead to a cycle of higher rates, which could swing some money out of the markets. The fed will try to manage this but how successful they will be remains to be seen.
Nonetheless, I think that a good strategy remains to invest in broad sectors of the economy thru funds and balance there. Shoot for a decent average return rather than big hits. Yes, we all know folks that made fortunes in Apple or Google or Tesla "back then" but those are exceptions and not how I would do retirement planning.

And like Paul, real estate has been pretty solid through the last 20 years and is an "investment" you can appreciate in more ways than appreciation.