Investing for beginners

[California]

This article says a portfolio of domestic and international stocks will outperform a 'balanced' (stocks, bonds) or target-based strategy, over a long horizon. Interesting, but I think this deserves more research before relying on it.

At any rate, this approach has worked well for me. Using broad-market mutual funds, not picking individual stocks. That is best left to the pros.

Throw away those target-date funds, and don't hold bonds at all, says this daring new research

So much for the 60/40 portfolio. A new research paper says investors are far better off solely in stocks, then trying to maintain a balanced portfolio.

www.marketwatch.com

 

[ultrarunner]

This article says a portfolio of domestic and international stocks will outperform a 'balanced' (stocks, bonds) or target-based strategy, over a long horizon. Interesting, but I think this deserves more research before relying on it.

At any rate, this approach has worked well for me. Using broad-market mutual funds, not picking individual stocks. That is best left to the pros.

Throw away those target-date funds, and don't hold bonds at all, says this daring new research

So much for the 60/40 portfolio. A new research paper says investors are far better off solely in stocks, then trying to maintain a balanced portfolio.

www.marketwatch.com

Target Date is the Corp Plan.

The older you are the more bonds in your fund.

There are a few other choices like International, Small and Large Cap and Real Estate Fund.

 

[kenmac]

This article says a portfolio of domestic and international stocks will outperform a 'balanced' (stocks, bonds) or target-based strategy, over a long horizon. Interesting, but I think this deserves more research before relying on it.

At any rate, this approach has worked well for me. Using broad-market mutual funds, not picking individual stocks. That is best left to the pros.

I have a mix of mutual funds, single stocks, and many private equity investments that have worked well for me.
If I were a beginner, I would probably just stick with good growth mutual funds

 

[dmccarty]

We still have some small amount in European and Pacific funds but no longer add money to them. These funds used to go up in value when US funds went down in value, and vice versa, so it was a good balance. However, for a decade or more, the European and Pacific funds we have money in have not really gone up in value. They just kinda sit there. I stopped investing new money and have kept the funds though I think about moving the money to a US based fund...

I think what is happening is the Europe and Asia just are not growing like US companies for a variety of reasons. Given their loss of population, which is going to continue and speed up, I suspect this is going to be their new normal.

 

[CloverKnollFarms]

Active investors rarely outperform an index fund. You can... But most people just chase returns and suffer from FOMO

 

[MoKelly]

Active investors rarely outperform an index fund. You can... But most people just chase returns and suffer from FOMO

Yes!

 

[California]

How long will a million $ in retirement savings last?

Source, discussion.

 

[ultrarunner]

How long will a million $ in retirement savings last?

Source, discussion.

Not long with high inflation..

 

[CloverKnollFarms]

Depends. Are you debt free? What's your lifestyle like? I mean, I can live on $30k/yr easily. 4% of $1m is $40k. That would account for inflation. I'd likely never touch the principle. Hell if you were collecting SS, you'd be buying Cuban cigars on the regular

 

[ultrarunner]

Don't overlook taxes if applicable?

In 1960 a new tract home here cost 15k

Sixty years later those 60 year old tract homes were selling for 900k

Of course the person buying that 900k home would now pay 15k property tax annually... exactly what the place sold for new!

Countries continue to experience wild inflation around the world... worse case the money isn't worth the paper it's printed on... Germany, Venezuela come to mind.

 

[CloverKnollFarms]

I mean, I'm including property tax. Which in these parts for 10 acres, a home and 40x60 pole barn, runs under $2k per year. Granted we are shopping for 25-30 acres to build a new mini farm on... But that will be a cash purchase too, or we wont do it

 

[riptides]

How long will a million $ in retirement savings last?

Source, discussion.

The comments in that reddit are hilarious.

 

[California]

Hard to tell if Fidelity simply wrote this puff piece for IBD to publish, or its a real comparative analysis. But it describes what I've liked about Fidelity for some 40+ years now as our savings grew from near zero to quite comfortable.

My opinion is that Fidelity is the best choice for the beginning long-term investor. As well as for someone more experienced.

Keep in mind that some private effort - farming, rentals, a welding side business, etc can do better than an investment in the market, Because every investment available to the public is going to be priced at the average of what everyone in the world, including the pros with excellent analysis available, consider that investment is worth.

Fidelity Investments Ticks All Boxes As A Best Online Broker

Fidelity Investments made IBD's Best Online Brokers list for the 12th year. So what benefits does it offer? Here's what its clients say.

www.investors.com

 

[newbury]

...

 

[newbury]

How long will a million $ in retirement savings last?

Source, discussion.

The third post in that link summarizes it well.

That's just ridiculous.

And then from a CBS link

The key finding: Retirees can get the biggest bang for their buck in Mississippi, where the combined cost of food, utilities, housing, health care and other essentials is $44,000 per year. Saving of $1 million in the state would last you nearly 23 years, the personal finance site said.

And since that doesn't include pension - I should be easily good for 23 years.
Of course one thing they probably left out was gifts to grandchildren.

 

[kenmac]

When I retired, I had no idea how much money I would need. I just sold the business and said that's it. That was going on 9 years ago.
I may have to go back into the HVAC / Plumbing field next week

 

[riptides]

When I retired, I had no idea how much money I would need. I just sold the business and said that's it. That was going on 9 years ago.
I may have to go back into the HVAC / Plumbing field next week

Medical issues in immediate family forced me back into the work force. Twice.

No way to predict or plan for that.