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This is also what I try to tell people. Most of the stuff you see in the news has no bearing on the stock market for long-term investors. Summit meetings, Presidential tweets, government shutdowns, etc., etc., are all just noise. They will amount to nothing in the end.
The United States GDP growth has been the primary driver of the stock market over the last 2 centuries. Companies profit = the stock market goes up. That is the bottom line.
Depends on how one defines long-term. Keep in mind we're in uncharted waters. Don't believe there has ever been another situation exactly like this in our country's existence. Does that mean you should sell if your investment horizon is greater than 5 years? Of course not, but it's probably a good time to examine risk tolerance and review your financial plan.
long term to me is any money i don't need to eat with for 15 plus years for sure . some may go down to 10 years and consider that long term .
we scaled back from 100% equities about 8 years pre retirement to 60/40 so we had decades of time at 100% equities . i would consider anything less than 40-60% very inefficient use of my money even in retirement ..
how many years before depends on your plan . heck if we had more of a pension to cover things i would be 70% equities in retirement . if our pension fully covered us with social security then for all purpose the paycheck never stopped and i would be 100% equities since most of the investing is for heirs .
there is a reason you will find most retirees with investments will be in the 40-60% range all the time . it works well over retirement time frames providing a nice balance between income and legacy money . . .
Last edited by mathjak107; 06-11-2018 at 08:19 AM..
long term to me is any money i don't need to eat with for 15 plus years for sure . some may go down to 10 years and consider that long term .
we scaled back from 100% equities about 8 years pre retirement to 60/40 so we had decades of time at 100% equities .
how many years before depends on your plan . heck if we had more of a pension to cover things i would be 70% equities in retirement . if our pension fully covered us with social security then for all purpose the paycheck never stopped and i would be 100% equities still since most of the investing is for heirs .
This is exactly our plan. Create a pension by annuitizing, large enough to cover living expenses, adjusted for inflation, and then invest the rest 100% in equities (including Roth IRAs).
except as i explained to you that is not how a retirement portfolio is viewed . you are more like 20% equities with the 80% shared between fixed income and annuities . that would be considered 20/80 not 100% equities . a retirement portfolio allocation is based on the total assets .
you can put 10k in an index fund the way you do it and because you choose to call that long term money you call it 100% equities even though millions are in fixed income . you can see that makes little sense when expressing an allocation on forums . portfolio's are discussed in terms of all assets . annuities are part of the fixed income budget .
except as i explained to you that is not how a retirement portfolio is viewed . you are more like 20% equities with 80% shared between fixed income and annuities . that would be considered 20/80 not 100% equities .
Disagree. You mean you do not view it that way. You have no idea what my %s are.
no , the entire retirement planning world views an allocation by total invest able assets and annuities are part of the fixed income budget .
calling a 20/80 allocation 100% equities is ridiculous .
you told us you are about 20% equities , your words in an earlier thread .
So, now you're speaking for the 'entire investing world' ?? I would never completely divulge the particulars of our entire portfolio on this forum... suffice it to say, we have substantial assets, both Roth and non-Roth over the amount we will be annuitizing..
go show us where in any accredited study a retirement portfolio is not looked at by total investable assets .
you can do it any way you want but that is not how allocations are expressed . no one goes i have a million dollars and 800k is in fixed income but i have a 100% allocation to equities .
go show us where in any accredited study a retirement portfolio is not looked at by total investable assets .
you can do it any way you want but that is not how allocations are expressed . no one goes i have a million dollars and 800k is in fixed income but i have a 100% allocation to equities .
If you want to look at it on an overall basis, you and I or anyone else can do that, as well. But there are other ways to look at and analyze retirement assets. To try to speak for the entire investment world is absurd.
you can look at it any way you want but if you are expressing it to others here then it becomes a meaningless statement when not used in the standardized format everyone here talks in terms of . saying you are 100% equities turns you in to a very aggressive investor by any of the yardsticks we all use here and nothing could be farther from the case , you are ultra conservative based on what you expressed to us .
it makes as little sense to us as having a million bucks and buying one stock for 2000 bucks and calling it 100% equities . it just loses all context of how things are judged here . sure his maximum dollars he wants to allocate to stocks are 2k and since he put all 2k in stock he is saying he is 100% equities but that would a pretty silly way to express it to others .
you may as well not even express your allocation to us if it is in any other format as it is meaningless to us as far as what you are doing .
Last edited by mathjak107; 06-11-2018 at 09:01 AM..
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