*Investors Blog*

JHZR2 said:
The metric indicated $1MM of investable assets I think. If so that means next to nothing. It doesn’t make one rich, or really have any bearing on spendable or investable income. I see it very plausible that many folks would be barely scraping by. Especially in high cost areas where they’re taxed to death but have incomes way above the average.
Click to expand...
Well, the article is about feelings, so... emotions are what they are.

$1M in net value can look good but mean nothing if it's tied up in a primary residence and retirement funds. If one is basically living paycheck to paycheck--every dime getting spent between debt, savings goals and everyday living--it can sure feel not like being "rich" where one doesn't look at the price tag before contemplating a purchase.

So yeah, I agree with you, a mil sounds like a lot--but context matters.
 
supton said:
Well, the article is about feelings, so... emotions are what they are.

$1M in net value can look good but mean nothing if it's tied up in a primary residence and retirement funds. If one is basically living paycheck to paycheck--every dime getting spent between debt, savings goals and everyday living--it can sure feel not like being "rich" where one doesn't look at the price tag before contemplating a purchase.

So yeah, I agree with you, a mil sounds like a lot--but context matters.
Click to expand...
IMO, that's a great place to have a cool mil... Those are the 1st places I shot for and boy am I glad I did.
 
Pablo said:
Probably not. But I think the younger guys are in ETFs and such.

I really don’t hold many stocks at 65. I have some funds but remain in preservation mode with gains here and there. Barbelled income. Jumping in when beat down on rate hike news.
Click to expand...
yeah, some of the decision making on asset allocation has to be long term versus short term, don't you think.? like how big of a return you can get on cash versus the other stuff, versus the risk reward scenario.

reality is when interest rates are hi enough stock isn't the most lucrative place to be, but we aren't quite there yet.. at least I don't think we are yet. maybe when the household mortgage rate hits 10% or a money market mutual fund hits 7%,might be the time to do a larger asset shift out of stock mutual funds.. hard to say.
 
MSCH said:
yeah, some of the decision making on asset allocation has to be long term versus short term, don't you think.? like how big of a return you can get on cash versus the other stuff, versus the risk reward scenario.

reality is when interest rates are hi enough stock isn't the most lucrative place to be, but we aren't quite there yet.. at least I don't think we are yet. maybe when the household mortgage rate hits 10% or a money market mutual fund hits 7%,might be the time to do a larger asset shift out of stock mutual funds.. hard to say.
Click to expand...
A long time ago I determined I can’t time the market nor can I put everything in a couple or one fund and be ok with that.

I diversify way more than probably necessary and somewhat unconventionally. I do follow the Fed - and yes the reactions are not nearly as expected but it seems the last year or so I would rather miss 0.25 pts than take a 30% hit in principal. And I probably should have gone longer on some of the CDs and bonds but that remains TBD.

I will sometimes even hold a company’s debt or a REIT preferred shares rather than the common. I mean I’ve been holding BofA preferred shares since C-19 while I sold the common stock. My biggest and best bets remain BXSL and FSK and they pay juicy dividends.
 
Prices are cooling overall, even though inflation is still way high. But the trend is good. Employment remains strong.
For the past few years so many have screamed recession. Time has proved them wrong.
You cannot take 1 month or whatever short term as the result, but this economy is resilient.

Since I am well invested in tech, hold on for the ride! Take the tech out of the mix and my portfolio is pretty darn conservative.
 
JeffKeryk said:
I am a fiscal conservative. After a point the goal is to maintain via low risk financial products and minimize tax burden. I am not chasing risk.
I use the Schwab Wealth Advisory.
Click to expand...
I meant that tech is a good part of the mix, and therefore the overall portfolio can't be classified as conservative. Smart, yes. Warranted, yes. Good bet, yes. I know what you were saying, but the Princess Bride quote was to funny to not use.

My concern now is I don't think we can trust the economic numbers. Great job numbers are reported with great fanfare, then later adjusted downwards in silence. I'm not sure we can trust the inflation numbers that resulted in the great market gains today. That being said, I've made the mistake of trying to time the market before and given up a lot of gains. Not going to make that mistake again. Keeping a reasonable bucket of cash and the rest is invested.
 
ArrestMeRedZ said:
I meant that tech is a good part of the mix, and therefore the overall portfolio can't be classified as conservative. Smart, yes. Warranted, yes. Good bet, yes. I know what you were saying, but the Princess Bride quote was to funny to not use.

My concern now is I don't think we can trust the economic numbers. Great job numbers are reported with great fanfare, then later adjusted downwards in silence. I'm not sure we can trust the inflation numbers that resulted in the great market gains today. That being said, I've made the mistake of trying to time the market before and given up a lot of gains. Not going to make that mistake again. Keeping a reasonable bucket of cash and the rest is invested.
Click to expand...
You are right; my overall portfolio is waaaaaay out of balance because of my career stock options/purchases/grants and a little Tesla. Let's just say that Silicon Valley has been very good to me.
I manage those, by letting them do what they will. Schwab and I separate them out of the Wealth Advisory portfolio because they badly skew any analysis.

My Schwab team advises me on a diverse set of investments that is pretty darn conservative. One is a CA Muni Bond double tax free fund. I get tax free income and do not touch the principal; upon maturity the principal is reinvested. Wasmer-Schroder

So this is why I say my portfolio is conservative. If I lost the tech, my beneficiaries would be just fine. FYI, the reason I am a fiscal conservative is I know the other side of life and never wanna go back there.
 
You must log in or register to reply here.

Similar threads

Passport1
Stock Split
2
Replies
29
Views
1K
mjk1967
SC Maintenance
Private Equity wants access to your 401K money
2
Replies
23
Views
1K
Shannow
A
Major power grid issues in Portugal, Spain and parts of France
2 3 4
Replies
67
Views
2K
Shannow
S
Filling in the California Duck Curve
2
Replies
29
Views
1K
Snagglefoot
buster
CEOs: AI Will Wipe Out Some Jobs
4 5 6
Replies
106
Views
2K
supton
Back
Top Bottom