Thoughts on investing for retirement...

[SaltyTiger 7,774]

1 hour ago, abw0004 said:

There are too many unknown variables for me to say, which is the issue.  I would need to know your risk tolerance as well as the rest of what comprises your portfolio.  Because what you may be doing is overweighting what you have.  I simply just do not know.  It’s like asking me to call plays for LSU today without knowing who is on the team and their strengths/weaknesses.

Have you done a risk profile before?  If not, I would be happy to email you a quiz to take.  It wouldn’t cost you anything.  If so, just shoot me a PM.

Just asking the generic question 

[SaltyTiger 7,774]

31 minutes ago, Cardin Drake said:

TIPS aren't limited. Buy as much as you want, and the 10 year is paying more than the inflation rate.  The only advantage to ibonds now is you can redeem them for face after 5 years if you wish with no penalty. If you sell a TIPS bond before it matures, you will get market value, which could be good or bad. 

abw004, bonds and stocks both tend to go up with lower interest rates, and down with higher rates.  It's not really an inverse relationship.

Given the inflation rate and what the market is doing seems safe and attractive right now.

[Cardin Drake 1,820]

It seems that way to me too. 

[aubearcat 2,136]

2 hours ago, abw0004 said:

That is a lot of risk to be only in one sector of the economy.  I would diversify if I were you.  If you are into tech, I would look into energy as well.  

It’s managed by Nationwide and most of their products are lumped together. I’ve been kind of managing it myself and looking into what has grown the most and has the highest potential. Most of those funds are heavily tech stock based. I probably need to get an advisor to help me out. 

[abw0004 10,109]

32 minutes ago, aubearcat said:

It’s managed by Nationwide and most of their products are lumped together. I’ve been kind of managing it myself and looking into what has grown the most and has the highest potential. Most of those funds are heavily tech stock based. I probably need to get an advisor to help me out. 

If you are investing in fund families, DFA is a really good fund family I recommend looking into.  A more well-known fund to look into is American Funds.  It was started by an Auburn alum actually.  

[abw0004 10,109]

1 hour ago, SaltyTiger said:

Just asking the generic question 

I would need more information to give you better advice unfortunately.  It would be against my CFP and my series 7 license rules of best practice to advise with little information.

 I will say, if you go into bonds, choose a bond fund, not individual bonds.  Mutual funds are easy, but the load is expensive.  ETF’s are better but need to be managed.  

Edited October 1, 2022 by abw0004

[abw0004 10,109]

1 hour ago, Cardin Drake said:

abw004, bonds and stocks both tend to go up with lower interest rates, and down with higher rates.  It's not really an inverse relationship.

Who is this abw004!?  😂  I’m just messing with you.

Bonds and stock absolutely have an inverse relationship.  That’s why with the market cooling you see a higher investment in bonds.  It is correct that they both react to interest rates and inflation similarly, but that is where the similarities stop.  And it’s not a bad thing either.  You need something to prop up each other.  That’s why you want to be properly diversified.  

[abw0004 10,109]

Here is a helpful thread as well:

 

[abw0004 10,109]

On 5/20/2022 at 8:27 AM, abw0004 said:

I was actually thinking about this thread this week.  Here are a few more pieces of literature I might suggest those who are worried about today's market to read.  These come from DFA (Dimensional Fund Advisors).  It is probably the largest fund family you have never heard of as they do not spend money on marketing and you have to be approved by them to work and purchase their funds (I am one of those).

Let me know if you have trouble opening or reading them.  I am happy to email them to you as well.

 

Bulls, Bears and Long Term Benefits of Stock Investing (DFA).pdf 158.23 kB · 2 downloads Rewarding Distribution of Stock Market Returns (DFA).pdf 136.6 kB · 2 downloads Do Downturns Lead to Down Years (DFA).pdf 100.73 kB · 1 download Stock Gains After Large Declines (DFA).pdf 153.43 kB · 2 downloads

These documents I think are also useful again in this atmosphere. 

[SaltyTiger 7,774]

35 minutes ago, abw0004 said:

I would need more information to give you better advice unfortunately.  It would be against my CFP and my series 7 license rules of best practice to advise with little information.

 I will say, if you go into bonds, choose a bond fund, not individual bonds.  Mutual funds are easy, but the load is expensive.  ETF’s are better but need to be managed.  

I understand. Was not asking for advice. Just your feel about them.

https://www.forbes.com/advisor/investing/what-are-i-bonds/

I bonds are a type of U.S. savings bond designed to protect the value of your cash from inflation. With inflation at four-decade highs, investors are ever more interested in higher-yielding, lower-risk investments, and I bonds fit the bill.

The current interest rate on I bonds is 9.62%. That rate is applied for the next six months, until October 2022.

“Today’s I bond yield far surpasses that of any other government-guaranteed interest rate available from any bank, brokerage or other insured source,” says Steven Jon Kaplan, CEO at True Contrarian Investments in Kearny, N.J.