billryan
billryan
Joined: Nov 2, 2009
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May 13th, 2019 at 9:50:35 AM permalink
Might I occasionally outperform my portfolio manager? Possibly, but what is my time worth? Do I want to spend hours researching stocks and keeping up on every and anything that can affect it, now and in the future.
It's easy to look back at the last thirty years of the stock market and think the growth in one's portfolio was superior to what a pro would have done, but who can really say. I know how well I did. What I don't know is what it might have done.
I turned most of my portfolio over to a pro five years ago. I'm happy with the results, and thrilled with the hundreds of hours I have saved.
At sixty, I have better things to do that then work on my portfolio
My stock picking these days in pulling a couple of silver age comics to list for sale.
Choose your own path or follow a pro. Just get money put aside for retirement.
AcesAndEights
AcesAndEights
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May 13th, 2019 at 10:46:21 AM permalink
Quote: billryan

Might I occasionally outperform my portfolio manager? Possibly, but what is my time worth? Do I want to spend hours researching stocks and keeping up on every and anything that can affect it, now and in the future.
It's easy to look back at the last thirty years of the stock market and think the growth in one's portfolio was superior to what a pro would have done, but who can really say. I know how well I did. What I don't know is what it might have done.
I turned most of my portfolio over to a pro five years ago. I'm happy with the results, and thrilled with the hundreds of hours I have saved.
At sixty, I have better things to do that then work on my portfolio
My stock picking these days in pulling a couple of silver age comics to list for sale.
Choose your own path or follow a pro. Just get money put aside for retirement.


How much does he charge?

My statements are based around an index fund point of view. I don't pick stocks (or pay anyone else to pick them for me). Buy the market, add in bonds to moderate risk, rebalance.

I do believe some very very talented individuals can beat the market picking individual stocks, but I absolutely am not spending my time looking for that person, and paying them. I just stick to index funds.
"So drink gamble eat f***, because one day you will be dust." -ontariodealer
unJon
unJon
Joined: Jul 1, 2018
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May 13th, 2019 at 11:21:51 AM permalink
Quote: billryan

Might I occasionally outperform my portfolio manager? Possibly, but what is my time worth? Do I want to spend hours researching stocks and keeping up on every and anything that can affect it, now and in the future.
It's easy to look back at the last thirty years of the stock market and think the growth in one's portfolio was superior to what a pro would have done, but who can really say. I know how well I did. What I don't know is what it might have done.
I turned most of my portfolio over to a pro five years ago. I'm happy with the results, and thrilled with the hundreds of hours I have saved.
At sixty, I have better things to do that then work on my portfolio
My stock picking these days in pulling a couple of silver age comics to list for sale.
Choose your own path or follow a pro. Just get money put aside for retirement.

For equity investments just buy a mix of VTI and VXUS (in whatever % you want exposure between US and international), then forget about it.
The race is not always to the swift, nor the battle to the strong; but that is the way to bet.
AcesAndEights
AcesAndEights
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May 13th, 2019 at 1:25:04 PM permalink
Quote: unJon

For equity investments just buy a mix of VTI and VXUS (in whatever % you want exposure between US and international), then forget about it.


This is exactly what I do. 25% international for me.
"So drink gamble eat f***, because one day you will be dust." -ontariodealer
odiousgambit
odiousgambit 
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May 13th, 2019 at 1:46:51 PM permalink
The bit about having your percentage in bond funds equal to your age is way, way too conservative today, people live too long now. The other thing I'm confident about is that you need to have the ability to avoid having to take money out of either type of asset at different times; in other words, you can't be sure it is better to take money of of bonds instead of stocks at a given time in retirement, there are hairy times when you don't want to take money out of either.

Quote: SOOPOO

My retirement window is...... soon! Highly likely I retire before Labor Day. If I told you my net worth and said I have 20% in bonds now that might be somewhat misleading. I will be getting a 'defined benefit plan' pension from NYS of lets say $60k per year, and eventually Social Security of lets say $30k per year. So lets say my net worth is $5 million. But I would want to count the $90k per year as approximately a $2.5million dollar bond. So I have $1million in real bonds, $2.5million in make believe bond, and $4 million in stocks. (Numbers used as an example, of course)

So an advisor would tell me being only 20% in bonds is bad as I'm about to retire, but I look at it as $3.5million out of $7.5 million, or nearly 50%.

I'm sure some find that hard to follow, but I know exactly what you are talking about. Guaranteed income is a type of asset! Yet it never is included in any kind of statement about your net worth. Why? [other than of course SS etc can't be taken out as a lump sum]
the next time Dame Fortune toys with your heart, your soul and your wallet, raise your glass and praise her thus: “Thanks for nothing, you cold-hearted, evil, damnable, nefarious, low-life, malicious monster from Hell!” She is, after all, stone deaf. ... Arnold Snyder
AcesAndEights
AcesAndEights
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May 13th, 2019 at 1:50:58 PM permalink
Quote: odiousgambit

The bit about having your percentage in bond funds equal to your age is way, way too conservative today, people live too long now.


Agreed, that doesn't hold water any longer, if it ever did.
"So drink gamble eat f***, because one day you will be dust." -ontariodealer
billryan
billryan
Joined: Nov 2, 2009
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May 13th, 2019 at 2:00:13 PM permalink
Quote: AcesAndEights

How much does he charge?

My statements are based around an index fund point of view. I don't pick stocks (or pay anyone else to pick them for me). Buy the market, add in bonds to moderate risk, rebalance.

I do believe some very very talented individuals can beat the market picking individual stocks, but I absolutely am not spending my time looking for that person, and paying them. I just stick to index funds.



I hate to say this, but I honestly don't understand the charges. The base fee is 1% a year but the fee was waived the first year, and I got an unexplained $2500 bonus on the second year so that my fees for two years were negligible. I liked the guy I dealt with in NY, not so much his counterparts out here.
At sixty, I should probably stop being as aggressive as I am and be a bit more concerned with protecting the portfolio rather than growing it. I am very diversified, with less than a fifth of my worth in publicly traded stocks. Done pretty well with a few micro-investments since moving here.
I don't miss searching for candlesticks. Day trading just isn't for me.
billryan
billryan
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Thanks for this post from:
odiousgambit
May 13th, 2019 at 2:08:22 PM permalink
Quote: odiousgambit

The bit about having your percentage in bond funds equal to your age is way, way too conservative today, people live too long now. The other thing I'm confident about is that you need to have the ability to avoid having to take money out of either type of asset at different times; in other words, you can't be sure it is better to take money of of bonds instead of stocks at a given time in retirement, there are hairy times when you don't want to take money out of either.

I'm sure some find that hard to follow, but I know exactly what you are talking about. Guaranteed income is a type of asset! Yet it never is included in any kind of statement about your net worth. Why? [other than of course SS etc can't be taken out as a lump sum]



The big difference is most pensions end at your death, or at best when your surviving spouse dies, while the bond produces income until it matures.You can leave your bond to a loved one. Not so much a pension. Your pension is worth$60,000 a year. A Four million dollar bond is worth $60,000 a year plus four million dollars.
I'd say they are the same for day to day bookkeeping but very different when estate planning.
odiousgambit
odiousgambit 
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May 15th, 2019 at 12:03:43 PM permalink
Quote: billryan

The big difference is most pensions end at your death, or at best when your surviving spouse dies, while the bond produces income until it matures.You can leave your bond to a loved one. Not so much a pension. Your pension is worth$60,000 a year. A Four million dollar bond is worth $60,000 a year plus four million dollars.
I'd say they are the same for day to day bookkeeping but very different when estate planning.

Agreed.

Set aside whether that is a good return or not on the bonds, let's say it is.

If you took the 60k out as income from the bonds, income you needed, normally you'd start withdrawing the principle too. That money can be all used up if you retire early - though $4 mill would not ever be totally consumed by me, I'd like to think.

I might ponder something, stay tuned.
the next time Dame Fortune toys with your heart, your soul and your wallet, raise your glass and praise her thus: “Thanks for nothing, you cold-hearted, evil, damnable, nefarious, low-life, malicious monster from Hell!” She is, after all, stone deaf. ... Arnold Snyder
TigerWu
TigerWu
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May 15th, 2019 at 12:30:19 PM permalink
Quote: AcesAndEights

Agreed, that doesn't hold water any longer, if it ever did.



The "new" rule of thumb is your age minus 20 for bond holdings. This is supposed to account for people living longer.

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