Investing for Retirement
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- GRB Founder
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Re: Investing for Retirement
I just did a 3 fund portfolio re-balance due to the market shift. Stay the course.
- sighyoung
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Re: Investing for Retirement
I'm beginning to practice saying, "Would you like fries with that?"
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Re: Investing for Retirement
Oh, boy. That will leave a mark. I like your mortgage idea better.
I'm kicking myself. I had reached my stretch FIRE goal in January. I work with someone who grew up in Wuhan, so in January I had a pretty good idea that we were looking at a pandemic, I just didn't know when it would hit here. I didn't sell my equity balance, mainly because I didn't want to take a decent-sized (and nothing more than that) tax hit. Just dumb.
I hate holding stocks. If you live a pretty simple life, like I do, and you've made pretty good money, like I have, then they're too [expletive] risky. In most scenarios you need something to balance interest rate risks (reinvestment rates too low / market value of securities demolished by interest rate increases), but using equities as a hedge is like using a chainsaw to trim your finger nails. They're just not appropriate for people who don't need growth.
Now I need to go look at some dumb ideas like 95% in a total bond fund and 5% in S&P500 ATM call options.
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- GRB Founder
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Re: Investing for Retirement
That sucks. Once I hit my fire number I'm going with a 60/40 equity to bond fund ratio. My international fund allocation will continue to be 30% of my equities.greenback44 wrote: ↑March 13 20, 11:17 pmOh, boy. That will leave a mark. I like your mortgage idea better.
I'm kicking myself. I had reached my stretch FIRE goal in January. I work with someone who grew up in Wuhan, so in January I had a pretty good idea that we were looking at a pandemic, I just didn't know when it would hit here. I didn't sell my equity balance, mainly because I didn't want to take a decent-sized (and nothing more than that) tax hit. Just dumb.
I hate holding stocks. If you live a pretty simple life, like I do, and you've made pretty good money, like I have, then they're too [expletive] risky. In most scenarios you need something to balance interest rate risks (reinvestment rates too low / market value of securities demolished by interest rate increases), but using equities as a hedge is like using a chainsaw to trim your finger nails. They're just not appropriate for people who don't need growth.
Now I need to go look at some dumb ideas like 95% in a total bond fund and 5% in S&P500 ATM call options.
I sold equities on the way up and I've been buying equities on the way down. It's fine. My methodology, job and age make it easy to not sweat the swings too much.
I actually lucked out with the mortgage. Right before the crash I exercised a bunch of my company options (my riskiest asset) and paid off my mortgage in full. My company stock is off around 27% right now, so I feel really fortunate. Like I said earlier, I wanted to cool off my portfolio a bit and paying down my mortgage was the easiest way to do it. The timing of the move was pure luck. Now that I have no house payment, I just changed the mortgage payment to a monthly equity purchase in my taxable account. I only purchase bond funds in my 401k for tax efficiency purposes.
- Radbird
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Re: Investing for Retirement
I should’ve worked another year.
- sighyoung
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Re: Investing for Retirement
What are the going rates for plasma these days?
- Joe Shlabotnik
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Re: Investing for Retirement
At least here in Oregon assisted suicide is legal.
- Radbird
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Re: Investing for Retirement
Commies
- Leroy
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- Radbird
- There's someone in my head but it's not me
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Re: Investing for Retirement
My retirement funds are doing swell. In fact when this is all over, we’re going to replan our trip to Rome and Florence. I hear Georgia and Alabama are nice in the fall.