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We've established an inflation adjusted, non-stock-based, fixed income (pension, annuities, SS). Beyond that, we invested about half the balance in property and the other half largely in dividend stocks, held in managed accounts (also have a reasonable stash of emergency cash and available credit). We're currently down about 10-percent in stocks and would not be surprised if they fell more.
This may sound passively conservative, but, I've never had the skill or emotional make-up to 'play the markets' (learned from taking significant losses back in the 70's and 80's, plus always being in the wrong 'mix' in 401K's/403B's). Over the long haul, we're making money, -- otherwise, I've pretty much stopped re-visiting and worrying about our stock investments.
We've got retired friends who spend their days playing the markets and anguishing over the ups and downs. That's not how I've spent my retirement over the last 10-years, nor how I want to spend the future. We live comfortably and well, but, are far from wealthy.
We've established an inflation adjusted, non-stock-based, fixed income (pension, annuities, SS). Beyond that, we invested about half the balance in property and the other half largely in dividend stocks, held in managed accounts (also have a reasonable stash of emergency cash and available credit). We're currently down about 10-percent in stocks and would not be surprised if they fell more.
This may sound passively conservative, but, I've never had the skill or emotional make-up to 'play the markets' (learned from taking significant losses back in the 70's and 80's, plus always being in the wrong 'mix' in 401K's/403B's). Over the long haul, we're making money, -- otherwise, I've pretty much stopped re-visiting and worrying about our stock investments.
We've got retired friends who spend their days playing the markets and anguishing over the ups and downs. That's not how I've spent my retirement over the last 10-years, nor how I want to spend the future. We live comfortably and well, but, are far from wealthy.
A breath of fresh air in this "investing" forum. Thanks!
Have you considered using bond funds to build a passive stream of income rather than looking at it from the "buy-low, sell-high" viewpoint?
As the Fed Funds Rate goes up, bond funds will be replacing the lower-interest bonds that they currently hold with higher-interest bonds being issued. The price of the bond funds will go up therefore, but don't worry about the price. Think of it as building a stream of monthly income that you can live off in retirement.
My passive portfolio paid me over $1,400/month in 2018. (It was only $250/month in 2009.) By the time I retire, I expect to be getting around $2,000/month in passive income from my mix of dividend-paying stocks, bond funds, and REITs which will go along nicely with my pension and SS. And that will be achieved by not selling anything, thus, no need for another stock market runup.
as of last month we have a 4k a month income stream coming in from bond funds . the funds are laddered ultra short to longer
Last edited by mathjak107; 12-29-2018 at 10:55 AM..
I think you've confused real estate investing with buying CDs. Left coast is riding a nice long wave. Call it great location on increasing value combined with 30 years of declining interest rates. Lots of dual employed standard credit borrowers. Low forced sales. No liquidity crisis.
It's been nice....don't confuse it with forever.
Aren't you assuming that the real estate investor is running his 'empire' with debt? Some of us don't do that - we own our properties outright, and maintain them as if they were valuable assets.
Paid for; well maintained; insured; steadily occupied for over 30 years - I can't think of any reason why it will not go on for years and years to come.
Stock market money is different. I know there will be bear markets, but since I am not a trader I keep spreadsheets on my investments (all both of them). I know when earnings will be released, I know what numbers to look for, I know the complete history and I listen to and read the earnings release and 10Q. If something changes, I will sell my holdings, but not until then.
Hopefully I will sell them slowly as I need to take money out. That way they can appreciate silently and I will take advantage of long term income advantages.
What kind of monthly income were you getting from the bond funds?
Compare that with the monthly income you would have been getting from a CD with the same initial investment.
You don't have to sell your bond funds at a low price if they are giving monthly income (or quarterly income divided by three). Add up the monthly or quarterly income for the entire year and divide by your initial investment. Is that percentage higher or lower than what the CD would have paid?
My bond funds are paying me between 5% and 8% on an annual basis. Where does one find CDs paying that these days?
Would you mind sharing what bond funds you use to get 5 and 8 percent? Also, are your bond funds completely risk free, as are CDs?
i don't have any that pay that high . my highest is 5.04% sec yield . it is a very short term floating rate high yield fund . it is low risk but certainly not in the class of cd's and treasuries . but that is why i am getting compensated . i can lose 2 -3 % and still be ahead of cd's . not to mention capital appreciation if rates fall
Trade war is the only thing that overshadows the market and the overall economy. This is totally manmade disaster and can be avoided. Trump is in political trouble all around right now. Hopefully, things will not be made any worse and the market is over reacting to this point.
floating rate short term high yield . they are short term mostly BBB and B rated so just under A . it is a nice range to be in , when you have a healthy economy .
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