[CoachKandSportsguy]

Originally Posted by opinionist

I don't understand why people like bonds.
Subtract the inflation rate from the yield, and you will get a negative number.

its called Portfolio Construction, Optimization, and Risk Management, if you care to read up on some how money management for the long term works.

Bonds are not just about after inflation yield in a portfolio.

Here is at least a graduate level overview. . written by Aswath Damodaran, who writes and documents with data, market valuation processes. Yes, I have his first book, after my MBA and even then, he hasn't covered all topics used today for portfolio valuation.

just a web page introduction, don't assume its more than that.

An Introduction to Portfolio Management

good luck. .

[bragones]

Originally Posted by Nevinator

I cut bonds from my portfolio in 2014 and never looked back. The rate of return was just too small to make any significant difference. I have relied on ETFs, individual high dividend stocks, and selling both put and call options. Unused funds reside in a 7 Day money market fund, currently paying 4.30%.

Selling covered calls = GOOD investment strategy. Selling puts = Dangerous investment strategy with potential for very large losses. Some investment firms won’t allow selling puts for good reason.

[rsmurano]

I mentioned palantir a couple of hours ago as a great investment during the last year. I just heard that palantir will be used by the federal government to track down illegal immigrants. If this is true, This stock still has legs.

Somebody mentioned holding 20% cash, why? You are losing money every day. I use my money market funds as my emergency cash stash, can sell right now and transfer the money the same day, all while making 5.4%.
Somebody else mentioned about somebody indicating they recommended getting out of the market a year ago. Not sure if I said this but I did say this at the end of 2021 and I did exactly that, moved everything into money market making 5.x%. This is the 1st time I did this in my life, stayed in during 2000’s, 2007, and 2020, but now, why when I can tell things aren’t looking good.
I made money throughout 2022 and part of 2023 while everybody invested lost 30% or more. So when I thought it was time to get back in, I started off where I left off at the highs of 2021 instead of waiting months or longer for my portfolio to get back to where it was in 2021. Plus, the environment was different when Tesla, meta, Apple were way down, some less than $100. If I was all invested, I wouldn’t be able to take advantage of buying these stocks, which I did when some of these stocks were < $100 and Apple was in the $120’s. Have you seen where each of these stocks are today?
The days of riding out a recession or a large downturn, are gone for me. I have trailing stop losses on my etfs and stocks so I take the emotion out of selling.

[roadrnnr]

Originally Posted by manaboutown

A fiduciary advisor paid a fee by the hour and seen every year or so is the way to go if one is uncomfortable making their own decisions or wants someone to talk things over.

That's what I need. How do I find one around here?

[retiredguy123]

Originally Posted by rsmurano

I mentioned palantir a couple of hours ago as a great investment during the last year. I just heard that palantir will be used by the federal government to track down illegal immigrants. If this is true, This stock still has legs.

Somebody mentioned holding 20% cash, why? You are losing money every day. I use my money market funds as my emergency cash stash, can sell right now and transfer the money the same day, all while making 5.4%.
Somebody else mentioned about somebody indicating they recommended getting out of the market a year ago. Not sure if I said this but I did say this at the end of 2021 and I did exactly that, moved everything into money market making 5.x%. This is the 1st time I did this in my life, stayed in during 2000’s, 2007, and 2020, but now, why when I can tell things aren’t looking good.
I made money throughout 2022 and part of 2023 while everybody invested lost 30% or more. So when I thought it was time to get back in, I started off where I left off at the highs of 2021 instead of waiting months or longer for my portfolio to get back to where it was in 2021. Plus, the environment was different when Tesla, meta, Apple were way down, some less than $100. If I was all invested, I wouldn’t be able to take advantage of buying these stocks, which I did when some of these stocks were < $100 and Apple was in the $120’s. Have you seen where each of these stocks are today?
The days of riding out a recession or a large downturn, are gone for me. I have trailing stop losses on my etfs and stocks so I take the emotion out of selling.

I consider a money market fund to be cash.

[msilagy]

Vanguard does not give advice anymore for $1 mil or over. That has changed

[rsmurano]

The notion to have X% invested in bonds as you get older is old news. The other old standard is taking 4% out of your portfolio each year to live on. Some of the new standards are 0% in bonds and up to 8% withdrawal rate.
It all depends on how much you have in your portfolio, how much you need to live off of, and your risk tolerance.
Just because you retire or you turn 65, that doesn’t mean you have to stop making money.
I have a VP of the brokerage house I have my portfolio in that calls me once a year to see how things are going. I do my own trades, I don’t use and of this firms brokers. She looks over my accounts and always tells me you have done well this year and has always told me to think about bonds, she has done this for 2 decades, and she knows I won’t.
I’d rather be in a money market making 5+% than getting in bonds.

[retiredguy123]

One reason to buy bonds is if you think interest rates will decrease. With a bond, you can lock in a specific interest rate for the term of the bond.

[bragones]

Originally Posted by retiredguy123

One reason to buy bonds is if you think interest rates will decrease. With a bond, you can lock in a specific interest rate for the term of the bond.

Also, if you think interest rates will fall, the face value of the bond will rise so it can be sold for a profit. Bond prices move inversely to interest rates.

[Caymus]

Originally Posted by roadrnnr

That's what I need. How do I find one around here?

That advice works in theory but not too well in practice. I contacted numerous "fee only/ fee based" advisors and couldn't find a match. Some wanted a retainer; some didn't seem that knowledgeable. I keep looking for when my cognitive abilities diminish (more than now)

[retiredguy123]

Originally Posted by roadrnnr

That's what I need. How do I find one around here?

You may want to consult with a certified financial planner, CFP. Google "find a cfp" and you can find them located in The Villages. A CFP is trained in all aspects of finance, including investments, retirement, taxes, estate planning, and insurance. They will probably want to sell you a comprehensive writtten financial plan for about $1,500 to $2,000. For some people, this is a good way to go. But, if you just want to pay someone $200 or so to ask questions, it will be difficult to find someone who will meet your needs. They will more likely want to manage your investment portfolio for an annual percentage of your assets.

[rsmurano]

Good luck on finding anybody good to manage your portfolio. I 1st looked for 1 over 3 decades ago. I had a good friend that was vp of Smith Barney and he wanted me to sell all of my stuff to move everything into a couple Smith Barney funds. Same went for a Fidelity guy, was going to is all fidelity funds. Tried again with a credit union brokerage fund and he wanted to invest in Oppenheimer funds that had a 5% load.
I was doing my own stuff back then and after all these interviews, i doubled down to learn all i can about how to invest, subscribed to all the morningstar technical monthly publications on stocks/funds, and read dozens and dozens of books from Bogle, Cramer, motley fool, and many others.
I save tens of thousands of $$$ per year, over $600,000 every 10 years that i do this stuff myself. It’s never too late to learn.

[retiredguy123]

Originally Posted by rsmurano

Good luck on finding anybody good to manage your portfolio. I 1st looked for 1 over 3 decades ago. I had a good friend that was vp of Smith Barney and he wanted me to sell all of my stuff to move everything into a couple Smith Barney funds. Same went for a Fidelity guy, was going to is all fidelity funds. Tried again with a credit union brokerage fund and he wanted to invest in Oppenheimer funds that had a 5% load.
I was doing my own stuff back then and after all these interviews, i doubled down to learn all i can about how to invest, subscribed to all the morningstar technical monthly publications on stocks/funds, and read dozens and dozens of books from Bogle, Cramer, motley fool, and many others.
I save tens of thousands of $$$ per year, over $600,000 every 10 years that i do this stuff myself. It’s never too late to learn.

I agree. One way to start slowly is to buy a subscription to Money magazine. It is easy to read and not very technical.

[LeRoySmith]

I've been talking to a guy in Ocala (the brick city group) about managing my money and I cant seem to make the leap. Its not that I don't trust him, but no one cares about your money as much as you do. The other part that's hard to swallow is the ~1% fee. That covers all my living expenses for a year and he is looking for a target that's lower than what I typically make on my own (he does make a very good case about lower volatility).

I've always stumbled my way to pretty decent results but as I age and my mind gives up on me it feels like I need help.

[retiredguy123]

Originally Posted by LeRoySmith

I've been talking to a guy in Ocala (the brick city group) about managing my money and I cant seem to make the leap. Its not that I don't trust him, but no one cares about your money as much as you do. The other part that's hard to swallow is the ~1% fee. That covers all my living expenses for a year and he is looking for a target that's lower than what I typically make on my own (he does make a very good case about lower volatility).

I've always stumbled my way to pretty decent results but as I age and my mind gives up on me it feels like I need help.

Don't agree to pay him 1 percent of all of your assets. If you have bonds and cash investments that you feel comfortable managing, you shouldn't be paying any percentage to an advisor. But, if you think the advisor can manage the equity portion of your portfolio better than you can, then you may want to agree to pay 1 percent of those assets only as a reasonable fee.