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Or... That $10,000 investment went to a bond ladder, and today you have $12,000. And you're happy with your predictive results.
Yet, your brother bought Amazon and watched it grow to $15m, then... Woops.. it erodes to $12m. He's not happy, and it's terribly painful for him to pull out the $12,000 that you so cherish. But he will have $11,988,000 to spare. (That you won't ever have).
Fun game!
Or ... you both bought Amazon and watched it grow to $15m, ... Woops .. it erodes to $12m.
Or ... you both bought Amazon and watched it grow to $15m, ... you sell and put the money in bonds, but your brother holds and watches it erodes to $12m. But it rebounded to $20m. Are you sad?
Or ... you both bought Amazon and watched it grow to $15m, ... you sell and put the money in bonds, but your brother holds and watches it erode to 12m and stay there. Is he sad?
well the idea was to try to get people to give better detail when they talk about their allocations or gains ..
obviously someone saying they are 90% equities because that is what is in their retirement account yet it represents only 10% of their liquid assets isn’t the same as someone who says they are 90% equities and 10% cash and it represents all their liquid assets .
By the same token , in the first example , saying they are up 20% while 90% of their assets are getting 4% are worlds apart on the growth meter from the second case
Well, for me, I don’t consider all of my liquid assets to be part of my portfolio. I don’t have any taxable accounts and don’t plan on putting any of my savings cash into investments. For me, they are totally and completely separate and I would never include that money in a discussion of allocations.
Or... That $10,000 investment went to a bond ladder, and today you have $12,000. And you're happy with your predictive results.
Yet, your brother bought Amazon and watched it grow to $15m, then... Woops.. it erodes to $12m. He's not happy, and it's terribly painful for him to pull out the $12,000 that you so cherish. But he will have $11,988,000 to spare. (That you won't ever have).
Allocation? No pension, not wealthy but a light spender, 19 yrs retired 30 more yrs to fund. ~5yrs cash reserves, 80% equities. Withdrew ~10% of my net growth this year due to new roof, appliances, more toys. I don't consider my growth as gains (until realized).
This is a good payday year.
They are not all this abundant, but I don't intend to starve, or die broke.
It all goes to charity (including the houses I've built)
I feel it will be spent on the special needs of others.
Beats sitting at the adding machine like Scrooge McDuck monitoring every cent, and fretting about each delayed direct deposit pension check. (I'll never get one)
I never knew what my paycheck would be, so I'm continuing that theme in retirement.
Anything I get is a bonus, and I'm grateful. (But maybe not so wise)
Never in a million years would I be able to pin down what your full scenario is. It all seems so impossible. I am not sure what you have or all you do. But, I trust you to keep doing what works for you and yours. Not having guaranteed income made you smart in other ways that work out better for you (it seems).
Last edited by Wile E. Coyote; 12-27-2023 at 01:57 PM..
I think I got on Mathjak's bad side in another thread when he was talking about an exceptional year (2023) and I responded "I wouldn't call getting some of my losses back exceptional, but each to their own perspective". May be I shouldn't have said losses. I probably should have said getting you money back or something similar.
I'm not unfamilar with the up and downs of stocks. Experienced it for years and years. But, you are right, that now I want the peace of mind of holding bonds in retirement. Plus, I never want to have to depend on the stock market (higher risk) for my retirement income. Just me.
I've never been the type of guy that thinks that the market guarantees you will get your losses back if only you hold on long enough. I think the stock market has risk. Of course, bonds have risk too ... just lower risk. This mindset could be because I did individual stocks and not mutual funds or ETFs in most of my investment history.
By the way, when Mathjak said to you, "are you actually reading things or as usual commenting without reading." ... I think you read just fine
I understand both things too. Being intently focused on the stock market and not involved with it at all. Sometimes life is more important than money.
Well, for me, I don’t consider all of my liquid assets to be part of my portfolio. I don’t have any taxable accounts and don’t plan on putting any of my savings cash into investments. For me, they are totally and completely separate and I would never include that money in a discussion of allocations.
well whether part of a portfolio or not the idea was to see how much percentage wise people actually invest vs their total liquid assets.
like i said ,having 90% in cash because it isn’t part of “ one’s portfolio “ and saying one is 100% equities because 10% of the money they choose to count is all in equities is a very different situation then another’s 90% in equities and 10% cash when it represents their entire picture.
scenario one would be 10% equities and 90% cash in comparison to the second situation of 90% equities and 10% cash
Last edited by mathjak107; 12-27-2023 at 03:12 PM..
life can be pretty crappy or stressful because you have no choices when you wish you did but lack the financial ability
My life has always been more or less crappy. I had dead parents how less financially advantaged can you be? I have never had money. My life has always just been about survival. So what?
Difficult to worry too much about the portfolio's performance, just now: Christmas Eve, we got a call. Some cousins of our hosts at the party called. Just kids. 13 and younger. They were spending time at a church; one of a series of churches which form a circuit, for people who have nowhere else to go.
So, THAT base was covered. But..... They had no FOOD! We brought them some. A LOT. "Dad" is irresponsible, and mom was in dialysis when the kids called. They were HUNGRY.
As for my wife and I? we are just too fortunate.
**************************
Recent good performance in my stock sleeve shows my equity portion has grown from 60% of total to 61% of total. The junk bonds have been either holding their own from day to day or rising a bit. I'll stick with them. I've heard and read quite a bit that says "junk" today is not so "junky" as in the past.
Stock: 61%.
Bonds: 33%
Cash: 5%
"Other:" 2%.
Compared to 31 Dec, '22, the portfolio today is just a fraction higher.
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choices
