Investments strategy with new administration?

[1Mech]

I find it a little unbelievable that you're getting 20- 25% return. Typical, is around 6-7% if you're investments are broad and balanced. Not saying you're not getting those returns, but your risk must be way out there.

As someone who's currently in the retirement implementation phase, my financial advisor recently moved me from Merrill Lynch where I was invested as moderately aggressive to Charles Schwab and we're dropping back to essentially a moderate plan, with much broader investments.

The Monte Carlo scenario's (think stress testing of your investments with 1000's of scenario's run) on the new Charles Schwab accounts show an expected average return of about 6.4% with a 91% chance of meeting my retirement goals. By comparison, the former Merrill Lynch accounts showed an expected return of 6.52% with the chance of retirement success dropping to 71%.

Personally, I don't think the next 20 years will look anything like the last 20 years, financially. It is expected that within the next 20 years, we will experience a major financial upheaval in this country. The tensions (China, Russia, Iran, N. Korea), the national debt and the changes in the world economy are setting the stage for something bad. I'm not "Chicken-Little" with the sky-is-falling, but I honestly think we're in for a rough ride at some point.

I have a large portion of my retirement funds in the federal Thrift Savings Plan, from my 30 years as a postal employee. Last year, my rate of return was 20.98% using the "C", "S" and "I" funds, all stock funds, no bonds or fixed rate funds. So far this month. I am up 4.08%
Official TSP rates of return:
Year G Fund F Fund C Fund S Fund I Fund
Inception date 4/1/1987 1/29/1988 1/29/1988 5/1/2001 5/1/2001
1 year 4.40% 1.33% 24.96% 16.93% 4.27%
3 year 3.87% -2.30% 8.90% 2.61% 2.03%
5 year 2.78% -0.24% 14.48% 9.88% 5.07%
10 year 2.52% 1.49% 13.09% 9.52% 5.63%
Since inception 4.65% 5.25% 11.17% 9.33% 5.01%

 

[sandman2234]

Same applies to timepieces like Rolex watches and fine gems.

While my ROI isn't great on Rolex watches, the investment stays very stable during market fluctuations.

Besides, you can actually wear your investment and they provide a useful function, unlike stocks and bonds that are just paper.

I have Rolex watches, and enjoy wearing them, but with the average person using their phone as a time piece, any watch is becoming a thing of the past. Kind of like what happened with pocket watches, as very few people carry them.
Used Rolex watch values have dropped over the past couple years when inflation is factored in. Rolex Corp likes to argue this, saying the values dip and raise... but the bottom line is, they aren't appreciating. I put Rolex watches in the same portfolio as my firearms. If they decrease in value, I can still use them. Like your gold and platinum bars, my lead bars will become more valuable if SHTF in this country.
David from jax

 

[EddieWalker]

I'm making around 10% in the Market and I'm going to let them decide what to do with it. I know nothing about the Market and I figure they are charging me for their knowledge, so I'll listen to what they say.

I also have some land, and I'm wondering if it will continue to increase in value like it has in the last few years, or will people dump land and put their money into the Market?

From what I've seen before, the value of land seems to go up when the Market is unstable. But when the economy is doing great, then people want to cash out and buy Stocks for a greater return then they are getting with land.

More than likely, I'm not going to do anything different and hope for the best.

 

[1Mech]

That chart didn't come out right in my previous post.
Other than my TSP funds, I mostly trade stock options, in and out rather quickly. I do hold a few dividend paying stocks, reinvesting the dividends into more shares.

 

[Portuguese Farmer]

Investing in keeping what we have, don't need anymore so why risk.

 

[NorTracNY]

No changes because of the new administration. I do mostly index funds and almost 100% equities. If I don't need the money within the next 10 years, I don't believe it should be in anything other than stocks.

 

[bcs001]

I subscribe to and follow closely a very contrarian investment recommendation service that has been right about most every major move for the past 15 years. Now being in full retirement mode and having great success with the income strategies they've recommended, the old traditional strategy of minimizing stocks and moving more into mostly "safe" bond and fixed treasuries doesn't really work so well.

Any portfolio that followed that dated approach missed out on huge gains in the market. There are "safe" ways to stay in the equities market, book big gains, generate meaningful dividends and protect capitol. The economy has and is changing. If you're willing to educate yourself and be proactive with your investment, there are great opportunities that are low risk.

I see a MONSTER potential in Crypto and it is just getting started. The learning curve is super steep but there are resources available if you have the interest. I'm slowly putting very small amounts of new money into the crypto blue chips that have the potential to do what Bitcoin has done. I'm still kicking myself for not buying a bitcoin when I first learned about it at $250. It is now over $100,000. Who knows what a very small investment in one of these other coins/blockchains/tokens might grown to.

 

[gsganzer]

I also have some land, and I'm wondering if it will continue to increase in value like it has in the last few years, or will people dump land and put their money into the Market?

From what I've seen before, the value of land seems to go up when the Market is unstable. But when the economy is doing great, then people want to cash out and buy Stocks for a greater return then they are getting with land.

Eddie,
I think TX land is the best investment a person could have. Not being political, but I think land in a southern or "red" state is solid, for years to come.

I think the Covid pandemic started (or accelerated) a movement and mass migration to areas with less government intrusion. The first to move were those that were retired, that weren't relying on employment opportunities. But now you're seeing businesses, not just people moving to red states. I look at all the building in states like TX, AZ, OK and it's incredible.

Just look at land prices in TX. They're up 4x from pre-pandemic levels and are still rising.

 

[ultrarunner]

Company 503B is target date and at least 50% bond funds so never experienced high returns as some.

 

[DarkBlack]

I only invest in mutual funds and not individual stocks and am entirely satisfied with a 20-25% return.

Other than the S&P returning 20-25% last year, the average is around 10%.
You have Warren Buffett beat, if you consistently get 20-25% yearly returns, especially with mutual funds