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Re: Continuing 2013 For KTC

By: oldCADuser in FFFT | Recommend this post (0)
Fri, 03 Jan 14 9:32 AM | 49 view(s)
Boardmark this board | Food For Further Thought 		Msg. 59643 of 65535
(This msg. is a reply to 59635 by Zimbler0)
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I'm 66 years old so putting a portion of your assets where they're protected from another crash only makes sense. Ask any financial planner about 'hedging' as you get close to retirement age. But to make you happy, ALL of my new investments are going into equities as I've managed to put aside my 'emergency' fund, which has been accumulated over the past 8 or 9 years by skimming profits from funds which have seen large and rapid run-ups. And while that money market fund might be close to 40% of my 401k, it's only represents 15% of my overall net worth. So when you look at it in that light, and considering that the rest of my 401k, as well as my wife's smaller self-directed investment fund, is spread across several different types of financial vehicles, including large-cap, small-cap, international growth, index funds, etc, and yes, even some bond funds, I would say that I'm pretty much doing exactly what someone at 'Vanguard' has already advised you to do. BTW, how's your portfolio doing at the moment? Are you confident that you'll be able to retire when you're ready to do so? My confidence level is high, but then it's taken me 35+ years of consistent and disciplined investing as well as avoiding extravagances in our life style, to get to that point.




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OCU


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The above is a reply to the following message:
Re: Continuing 2013 For KTC
By: Zimbler0 in FFFT
Fri, 03 Jan 14 6:58 AM 		Msg. 59635 of 65535

Ya just ain't to bright, is ya OCU?

40% of your money in cash? With interest rates at
zero and inflation . . .

OCU> and even if we only see returns of half of what we did this past year


One thing I've noticed over the years, regarding
portfolio returns . . . sometimes you get real good
years - like this last one . . . (or 1998, 1999) . . .
and sometimes you get years like 2000 or 2007.
(Y2K stock market collapse or the sub prime meltdown.)

Vanguard gave me a clue as to how to survive the
roller coaster ride . . maintain a balanced portfolio
with appropriate amounts on stocks, bonds, and cash.

Cash to survive the inevitable crashes. Bonds for
base-load income. And stocks to replenish the cash
and bonds when the roller coaster goes up.

Zim.

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