Choosing from limited investment options

[Siress]

The numbers are why I prefer high percentage dividend paying stocks as a buffer. If all else fails you have that passive income stream rolling in.

Same here - since retirement is 30+ years out. It's a double edged sword in shorter time frames, as people have rightfully pointed out here already. Here's a ~10yr slice from the plot I posted above.

Ignoring the trend lines, those that were holding stock for their retirement plans during that period took a major hit relative to bonds and bills. A hit like that can cause you to burn through a significant portion of your retirement investments. And anyone that retired before eligibility to withdraw from retirement might even face penalties for early withdrawal if they lack sufficient savings and brokerage investments to weather the dip. Dollar for dollar, personal financial collapse is always a lot closer than gain; 15-45% closer depending on typical situations, by my estimation.

[sniper97]

My attempt to summarize here:

Ticker	Description	Axel (+Gabe)	Ford	Siress	Shadow191
VIIIX	Institutional Idx.	35	50		I guess?
VIGIX	Growth Inst. Idx.	15		100
VEMPX	Extended Mkt Idx	20
VSMAX	Small Cap Idx	10
VGSNX	Real Estate Idx	10
VEMIX	Emerging Mkts Idx	5
VTPSX	Total Intl Idx	5
VFIFX	Target 2050	not bad	50		not bad

I'm of the opinion that Savings Rate is a far better indicator than Asset Allocation. The goal, for me at least, is to attain enough savings that financial independence is possible. i.e. that my expected rate of ROI is greater than my rate of spending.



You aren't kidding... I dug this up a while ago to show my grandfather why I disagreed with his "buy gold and silver" investment philosophy. If you look closely over time scales of 'nearing retirement age' (e.g 10yrs) you can also see why it's really important to have bonds as a backup in case the stock market takes a dive.

Bond rates are at all time lows, as rates go back up, bond values will drop. Probably better holding funds in a money mkt fund. 60/40 split is gone, look at historical bond yields vs.bond yields now. Closer to retirement, some changes are necessary. Look at American Funds target dated funds, further out...minimally bond holdings

[flyweightnate]

Given the activity this week, I'm even more sure of my leanings towards the Vanguard small and mid cap value funds. Having a stock picked by its ratio to the intrinsic value of the company seems so much more secure, long term, than momentum plays on Tesla or Gamestop.

And they have stable historic returns.