How the hell are we supposed to retire?

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The term to me can be interchangeable and its all on the provider and what they are providing. It barrels down to an overall cost.
Commission based would have me second guessing every recommendation if they only get paid for transactions.
 

Carson

Sport Bacon
Team MTBNJ Halter's
Thoughts on this strategy?

This investment mix beats the S&P 500 — by a mile - Paul Merriman

 

Patrick

Overthinking the draft from the basement already
Staff member
Thoughts on this strategy?

This investment mix beats the S&P 500 — by a mile - Paul Merriman


one should not have all their $$$ in sp500.
just a big part of it!

20% international -
some us growth - depending on how old ya be
some bonds (fuck that - i use a high dividend fund - price fluctuates, divs keep coming)

besides, are they really picking stocks outside the sp500, or just weighting them differently?
 

w_b

Well-Known Member
Thoughts on this strategy?

This investment mix beats the S&P 500 — by a mile - Paul Merriman

Exactly what Merriman says. Although he words it differently, and assumes investors already know the obvious.

1. ETFs in a self directed brokerage fund are an easy way to diversify. Many have low fees, which eat into your returns less than many higher- feed mutual funds.

2. You want to be diversified so as to level out the dips and not miss the pops of different asset classes.

3. Diligent rebalancing may be necessary if your asset allocation changes over time.

4. It’s relatively easy to make money in stocks if you have a long investment window and are patient.

5. It’s very easy to find an investment strategy that worked by looking at past returns.

6. Worked does not mean Will Work.
 

rick81721

Lothar
Thoughts on this strategy?

This investment mix beats the S&P 500 — by a mile - Paul Merriman


Looks good. I'd go with the first one - worldwide 4 fund combo. Around age 55, start mixing in a bond fund.
 

cassinonorth

Well-Known Member
Looks good. I'd go with the first one - worldwide 4 fund combo. Around age 55, start mixing in a bond fund.

A very good point. The closer to retirement you get the more conservative your allocation should be.

Target date funds are amazing for this...pick your retirement date and forget it. I'd wager 90% of people should just plop it in there and be done but everyone thinks they can beat the market.
 

rick81721

Lothar
A very good point. The closer to retirement you get the more conservative your allocation should be.

Target date funds are amazing for this...pick your retirement date and forget it. I'd wager 90% of people should just plop it in there and be done but everyone thinks they can beat the market.

Yep we had those as options in our corporate 401K
 

w_b

Well-Known Member
A very good point. The closer to retirement you get the more conservative your allocation should be.

Target date funds are amazing for this...pick your retirement date and forget it. I'd wager 90% of people should just plop it in there and be done but everyone thinks they can beat the market.
With a lil research a couple times a year you can easily beat most of the target date funds’ returns due to their relatively higher expense ratios vs. most big-box ETFs (Vanguard, Invesco, Schwab, etc.) Look carefully because certain ETFs’ ERs rival mutual funds’ on the order of 1% or higher. I look for ETFs with <0.2% whenever possible.

Agree tho, for those who can’t or won’t do the minimum and just let it roll target date funds will rebalance and adjust your asset allocation automatically over time.
 

cassinonorth

Well-Known Member
With a lil research a couple times a year you can easily beat most of the target date funds’ returns due to their relatively higher expense ratios vs. most big-box ETFs (Vanguard, Invesco, Schwab, etc.) Look carefully because certain ETFs’ ERs rival mutual funds’ on the order of 1% or higher. I look for ETFs with <0.2% whenever possible.

Agree tho, for those who can’t or won’t do the minimum and just let it roll target date funds will rebalance and adjust your asset allocation automatically over time.

So, 90% of people.
 
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Patrick

Overthinking the draft from the basement already
Staff member
So here is the problem. You go into income mode at 65 and live 30 more years. You miss at least 2 growth cycles.

Change your living expenses to match your draw in down years. Cause you don't want to be making 2020 money in 2050.
 

rick81721

Lothar
So here is the problem. You go into income mode at 65 and live 30 more years. You miss at least 2 growth cycles.

Change your living expenses to match your draw in down years. Cause you don't want to be making 2020 money in 2050.

Why income mode at 65? And even if so, why would you miss growth cycles?
 
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