Comments on: Planning for Your Retirement the Smart Way

By: steamboy

steamboy — Mon, 31 Oct 2011 01:36:21 +0000

i will receive about 2/3 of my retirement income from pensions. my thinking is that there is a goodly portion of bonds and fixed income products in those pension portfolios. therefore my personal investments are 100% in equities (albeit safe dividend increasing equities). i may be making some logic error here but it seems right to me.

By: neal@wealthpilgrim

neal@wealthpilgrim — Sun, 27 Dec 2009 20:30:24 +0000

Doc,

I personally agree that the system investors use is critical. Allocation is the most influential factor on returns but after that, it’s the system you use.

The problem is that all systems fail at times. Investors often abandon their system when it underperforms because they have unrealistic expectations.
.-= neal@wealthpilgrim´s last blog ..Free Holiday Weight Loss Program – Modern Miracle or Flash in the Pan? =-.

By: Doctor Stock

Doctor Stock — Sun, 27 Dec 2009 20:14:13 +0000

It’s not so much where our money is… it is how we invest it, particularly when we sell. Too often, retirement and stocks means investors buy and hold… and then… crash. It’s more important to know when to get out, than to buy a bunch of bonds because people won’t think.

By: Financial Samurai

Financial Samurai — Thu, 24 Dec 2009 21:30:19 +0000

Those stats are lies, all lies! We can’t count on living past 78 years old, and we can’t on transforming into women when we’re 65! :p

Equities weren’t fun in 1997, 2001-2003, and 2008-2009. I’d rather just earn 4-6% in fixed income, than try and put my entire NUT in the equities market.

It’s about building the NUT first, and nut rely on equities to build the NUT. Once you have $500,000 in the bank for example, a 5% return starts making a diff (25K) with zero risk.

But, to try and get a 25% return investing your 100K in the stock market…. not worth it.

I’m risk adverse with my portfolio… but I do love to punt with 50K every year and hope for a 10 bagger!
.-= Financial Samurai´s last blog ..Everything Is Rational – The Answer To All Things Irrational =-.

By: Neal Frankle

Neal Frankle — Thu, 24 Dec 2009 20:53:56 +0000

Sam,

At birth, you are right, you have a life expectancy of 78. But if you are 65, according to SSA gov stats, female has about 20 years to go. Male has a bit under 17.

http://www.ssa.gov/OACT/STATS/table4c6.html

Also, what do you base your dislike of having equities as a component of a 20-year – or in your case – 13 year investment horizon?
.-= Neal Frankle´s last blog ..Plan For Retirement – The Unconvention Yet Clever Way =-.