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So what do you think your best options would be for an already retired couple. Objective would be growth for about 40 percent of a retirement IRA, we really won't need to draw down for 3 -4 years as were 67 have a healthy emergency fund and keep 20 percent as of now in cash and short term CD's. Currently we have FZROX at 30 percent and 4 percent in apple.
So what do you think your best options would be for an already retired couple. Objective would be growth for about 40 percent of a retirement IRA, we really won't need to draw down for 3 -4 years as were 67 have a healthy emergency fund and keep 20 percent as of now in cash and short term CD's. Currently we have FZROX at 30 percent and 4 percent in apple.
Fzrox is 6.62% apple so I’d caution how much single name exposure you have. It’s also all equity so what do you have in other asset allocation buckets?
No problem with the equity.
I would keep Apple.
I think keeping two or three stocks that appreciate over the years is ok as long as you have your basis covered. Apple maybe down for a few months or a year but I think it will recover.
So what do you think your best options would be for an already retired couple. Objective would be growth for about 40 percent of a retirement IRA, we really won't need to draw down for 3 -4 years as were 67 have a healthy emergency fund and keep 20 percent as of now in cash and short term CD's. Currently we have FZROX at 30 percent and 4 percent in apple.
Best option is a diversified portfolio. Plenty of argument over 40-60% stock, 50-30% bond, 10% cash. Need to watch balance between taxable, tax-deferred, tax-free.
In time beware of RMD & Social Security or IRMAA tax bombs.
Cash includes checking, saving, emergency fund, Money in the Bank.
Total stock/bond fund could be one of the index funds.
So what do you think your best options would be for an already retired couple. Objective would be growth for about 40 percent of a retirement IRA, we really won't need to draw down for 3 -4 years as were 67 have a healthy emergency fund and keep 20 percent as of now in cash and short term CD's. Currently we have FZROX at 30 percent and 4 percent in apple.
Not sure what you are asking, a total stock market fund IS an index fund.
40% in equities is fine for retired, choose the fund that best fits your risk tolerance and desired growth. I personally wouldn't invest in individual stocks (i.e. Apple) but that's only 4% so I don't see any huge problem there.
Not sure what you are asking, a total stock market fund IS an index fund.
40% in equities is fine for retired, choose the fund that best fits your risk tolerance and desired growth. I personally wouldn't invest in individual stocks (i.e. Apple) but that's only 4% so I don't see any huge problem there.
Maybe the fund co could do a better job in explaining what a "total stock market fund" is. True, could be an "index fund" with a made up index. Fidelity does this a lot so they don't have to pay S&P for the use of the "S&P 500" name.
S&P 500 fund is easier to explain. At some point if the fund is large enough could have % of 500 stocks listed on S&P. Or at least match the performance of S&P 500 less what fees they charge. Should have lower fee than actively managed fund. You can do the same with Dow stock, Nasdaq, other published index.
Maybe what they want you to do is construct your own portfolio using a mix of funds. Have 50% in "S&P 500". then have some in medium or small cap stock funds. That "total stock market fund" may just be a marketing gimmick to get your money.
Maybe the fund co could do a better job in explaining what a "total stock market fund" is. True, could be an "index fund" with a made up index. Fidelity does this a lot so they don't have to pay S&P for the use of the "S&P 500" name.
S&P 500 fund is easier to explain. At some point if the fund is large enough could have % of 500 stocks listed on S&P. Or at least match the performance of S&P 500 less what fees they charge. Should have lower fee than actively managed fund. You can do the same with Dow stock, Nasdaq, other published index.
Maybe what they want you to do is construct your own portfolio using a mix of funds. Have 50% in "S&P 500". then have some in medium or small cap stock funds. That "total stock market fund" may just be a marketing gimmick to get your money.
Can you link any information to the fee the S&P charges to those building index funds using the S&P as an index benchmark ?
For instance this fidelity fund is benchmarked to the S&P 500 with an objective of having at least 80% of AUM invested in S&P 500 names
Location: Was Midvalley Oregon; Now Eastside Seattle area
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I benchmark 2000-2009. The lost decade in investing. Two major crashes. Do, What you can do, to survive a lost decade and bookended crashes. now age 73/76.
In 2008, decided to go the Income retirement model. Our High side income will be subdued but the low side income will be floored.
Others use a stock/bond/cash model. Your income will be dependent on your allocation model. If the future markets do as historically, you will have more Income and Wealth than we will when it all ends.
YMMV
SPGlobal manages many stock index. Doubt if they disclose what charges may be to use one of their products. They don't do it for free.
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