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The Financial Times' columnist John Authers suggests emerging market equities: https://www.ft.com/content/699775ba-...4-0a1e63a52f9c . His belief, and that of the persons featured in the article, is that long-term potential ought to be greatest in (1) places that have yet to really enjoy the benefits of modern technology and capitalism, and (2) places that have lagged growth in US equities in recent decades.
As to the question of safety, I defer to one of our regular posters here, who emphasizes the distinction between "risk" and "volatility". The buy-and-hold emerging-market index strategy is very high volatility, but only moderate risk. There is no zero-volatility option, because even treasury bills or certificates of deposit are denominated in some particular currency (probably US dollars), and all currencies fluctuate. But this is probably zero-risk.
You want half in rock solid assets and only half invested. OK, what return do you expect? Would an average of 5% be OK? If so, you give me the money. I will invest it. After 10 years I will pay back the money and the equivalent of 5% annual returns. I will keep the rest.
You want half in rock solid assets and only half invested. OK, what return do you expect? Would an average of 5% be OK? If so, you give me the money. I will invest it. After 10 years I will pay back the money and the equivalent of 5% annual returns. I will keep the rest.
Is this 5% CAGR nominal, or adjusted for inflation? Is it after-tax, or before? If it's after-tax, and adjusted for inflation, then I'd be thrilled to invest in jrkliny Investments, LLC.
5% total, not adjusted for inflation. Definitely not after tax.
Dang!
One often hears of 4% as the gold-standard of inflation-adjusted, after-tax CAGR (coincidence with the 4% "safe withdrawal rule" is presumably incidental). So if I hear 5%, I get excited!
If I were to give you $10 k cash and told you the stipulation was you had to invest it at least 50% being "safe" for the future, where would you invest it for the next 10 years? 15 years? 20 years? 25 years?
I'd put it all in ACBFF, or else divide it with 5 stocks.
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You can change it if you want at any point during the 25 years, but it must remain 50% secure and "safe".
The same for the 50%.
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Originally Posted by jrkliny
You want half in rock solid assets and only half invested. OK, what return do you expect? Would an average of 5% be OK? If so, you give me the money. I will invest it. After 10 years I will pay back the money and the equivalent of 5% annual returns. I will keep the rest.
Where would you invest it though? You haven't answered the OP.
An S&P 500 index fund/ETF. Then forget about it until you withdraw it.
It will correct and go down, but history has shown that it's about the best long-term investment out there.
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