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Old 06-27-2019, 10:04 AM
 
Location: Rust'n in Tustin
2,159 posts, read 2,362,842 times
Reputation: 3765

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My wife and I went to another free dinner/financial planner sales pitch last night. In addition to getting a bunch of free dinners, we're learning a few things.

The "rule of 100" states, take the number 100, subtract your age, what's left is the percentage of your portfolio (minus a year's living expenses in cash) that should be in stocks, mutual funds.

The rest should be in something that provides you income, rental properties, CDs, bonds, and of course annuities (that they'll happily sell you).

So basically, if I'm 61, 39% of my portfolio should be in stocks and mutual funds.

Anybody heard of this investing idea?
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Old 06-27-2019, 10:05 AM
 
Location: Rust'n in Tustin
2,159 posts, read 2,362,842 times
Reputation: 3765
The idea is the older you get, the more conservative you need to be.
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Old 06-27-2019, 10:13 AM
 
71,457 posts, read 71,629,249 times
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Do your own homework ..there is no financial logic to any of the above. There are so many factors that go in to an allocation and age is the least of the parameters
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Old 06-27-2019, 10:19 AM
 
Location: Florida
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Yes and I think it is old school - not the best way to invest.
Remember interest rates are rather low.
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Old 06-27-2019, 10:19 AM
 
Location: Rust'n in Tustin
2,159 posts, read 2,362,842 times
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Quote:
Originally Posted by mathjak107 View Post
Do your own homework ..there is no financial logic to any of the above. There are so many factors that go in to an allocation and age is the least of the parameters
Really, age is the least? I've always been told be aggressive when you're young, and conservative when you're old.

I'd hate to be 80 years old, and lose 50% of my portfolio.
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Old 06-27-2019, 10:21 AM
 
71,457 posts, read 71,629,249 times
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Quote:
Originally Posted by ysr_racer View Post
Really, age is the least? I've always been told be aggressive when you're young, and conservative when you're old.

Is hate to be 80 years old, and lose 50% of my portfolio.
Do some learning first ...there is so much wrong with your statement . You need to come up to speed on retirement planning before commenting or arguing points.. this statement is a lot of nonsense as I hope you will learn
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Old 06-27-2019, 10:25 AM
 
Location: Rust'n in Tustin
2,159 posts, read 2,362,842 times
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Quote:
Originally Posted by mathjak107 View Post
Do some learning first ...there is so much wrong with your statement . You need to come up to speed on retirement planning before commenting or arguing points.. this statement is a lot of nonsense as I hope you will learn
Got a link for me?
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Old 06-27-2019, 10:27 AM
 
Location: Rust'n in Tustin
2,159 posts, read 2,362,842 times
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And I have no desire to become a financial planner. I'm not a doctor, or a lawyer, or a CPA either.
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Old 06-27-2019, 10:30 AM
 
8,815 posts, read 5,119,154 times
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Quote:
Originally Posted by ysr_racer View Post
My wife and I went to another free dinner/financial planner sales pitch last night. In addition to getting a bunch of free dinners, we're learning a few things.

The "rule of 100" states, take the number 100, subtract your age, what's left is the percentage of your portfolio (minus a year's living expenses in cash) that should be in stocks, mutual funds.

The rest should be in something that provides you income, rental properties, CDs, bonds, and of course annuities (that they'll happily sell you).

So basically, if I'm 61, 39% of my portfolio should be in stocks and mutual funds.

Anybody heard of this investing idea?
Yes, that has been around for a long time. Many say, with longer life expectancies, the rule should be 110-age; sometimes you even hear 120-age suggested.
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Old 06-27-2019, 10:38 AM
 
71,457 posts, read 71,629,249 times
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Quote:
Originally Posted by ysr_racer View Post
Got a link for me?
You can start with the firecalc website ..

First of all how you invest for retirement depends on your draw rate ... a 4% draw inflation adjusted requires at least 40% equities to last 30 years safely .

But who you invest for is important..many are investing for legacy money for heirs , they have pensions and ss that supports them ...they can be 100% equities if they want ...

On the other hand a 50/50 mix has never lost a dime over any 10 or 20 year period , it is ideal for someone who needs to draw 4% inflation adjusted .....

Fixed income only , has failed to last so many 30 year time frames its success rate is poor ..

So far age is not involved in any allocation, only goals and needs ....even a 65 year old has long term money they won’t eat with for 25-30 years and equities are fine ..diversified funds have not lost a penny to date over the long term , only poor investor behavior has ...
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