The "flea market dealer" and "car dealer" are taking much more risk, IMO. They're doing what I'd regard as the equivalent of investing in penny stocks. "Real estate dealer" is more like a private equity investor - illiquid, but often decent returns.
I can't see the articles - behind a paywall at WSJ, but I'd expect they're comparing Gala apples to Red delicious apples. Also, I doubt bond indexes can be as comprehensive as stock indexes in covering their respective investable Universes. I'd focus on whether my bond funds are delivering what they promised me - and as long as that is true, this is noise I'd ignore.
I agree with the points made - and keep roughly 25% of my stock exposure in VXUS and 75% in VTI That is still an overweight of US stocks, but I do expect that the US outperformance of the last two decades will mean revert at some point in the next decade. Until then, I'll enjoy the ride US stocks have been giving.
Hopefully, stocks will beat inflation in the long term (for spending more than10 years out). For the short term (the next 10 years) I have TIPS to counter inflation. Of course, with Armageddon possibly around the corner - hostilities between two nuclear-armed powers (Iran and Israel), the question may be moot.
Shoring up the Social Security system will require some combination of an increase in taxes or some decrease in benefits or an increase in the retirement age - no way around that. Congress has been unwilling to enact any of the above fixes and the voters will likely return almost all of the Congressmen and Senators to office come November. Clearly American voters, collectively, are willing to let the can be kicked down the road. This will not end well.
Not a lot of knowledge for managing investments - a simple target date fund will get you there. For other aspects of finance - such as spending down when retired and social security claiming strategy, etc. everyone is likely to need help.
There is probably a lot missed, but I do not see that as a thing worth worrying about. There's an (effectively) infinite number of things that I could have done and experienced, and a very finite number that I did or experienced. I intend to keep my focus on what I can still do in the future.
Lower volatility, probably. Easier psychologically - sure. A dividend strategy may be less tax efficient for some people though. Dividends and short-term capital gains are effectively taxed at marginal IT rates, long-term capital gains have a lower tax rate (even zero for some folks). It may be better to sell some shares periodically vs receiving a dividend.
Comments
The "flea market dealer" and "car dealer" are taking much more risk, IMO. They're doing what I'd regard as the equivalent of investing in penny stocks. "Real estate dealer" is more like a private equity investor - illiquid, but often decent returns.
Post: The Hard Way
Link to comment from October 29, 2024
I can't see the articles - behind a paywall at WSJ, but I'd expect they're comparing Gala apples to Red delicious apples. Also, I doubt bond indexes can be as comprehensive as stock indexes in covering their respective investable Universes. I'd focus on whether my bond funds are delivering what they promised me - and as long as that is true, this is noise I'd ignore.
Post: Dazed and Confused.
Link to comment from October 25, 2024
I agree with the points made - and keep roughly 25% of my stock exposure in VXUS and 75% in VTI That is still an overweight of US stocks, but I do expect that the US outperformance of the last two decades will mean revert at some point in the next decade. Until then, I'll enjoy the ride US stocks have been giving.
Post: Underwater Overseas
Link to comment from October 6, 2024
Travel infrastructure - both road and rail - has improved significantly over the past decade. The next few months the weather will be tolerable too.
Post: Luxury on Rails
Link to comment from October 2, 2024
Hopefully, stocks will beat inflation in the long term (for spending more than10 years out). For the short term (the next 10 years) I have TIPS to counter inflation. Of course, with Armageddon possibly around the corner - hostilities between two nuclear-armed powers (Iran and Israel), the question may be moot.
Post: Hedging your bet in retirement-dealing with inflation. What’s your strategy?
Link to comment from October 2, 2024
Shoring up the Social Security system will require some combination of an increase in taxes or some decrease in benefits or an increase in the retirement age - no way around that. Congress has been unwilling to enact any of the above fixes and the voters will likely return almost all of the Congressmen and Senators to office come November. Clearly American voters, collectively, are willing to let the can be kicked down the road. This will not end well.
Post: I’m depressed, not very optimistic about retirement by R Quinn
Link to comment from October 2, 2024
I agree, that is my view too. But in David's defense, shouldn't everyone be able to define "enough" for themselves.?
Post: My Path to Peace
Link to comment from September 4, 2024
Not a lot of knowledge for managing investments - a simple target date fund will get you there. For other aspects of finance - such as spending down when retired and social security claiming strategy, etc. everyone is likely to need help.
Post: I Ain’t Stupid Ya Know
Link to comment from August 27, 2024
There is probably a lot missed, but I do not see that as a thing worth worrying about. There's an (effectively) infinite number of things that I could have done and experienced, and a very finite number that I did or experienced. I intend to keep my focus on what I can still do in the future.
Post: Did we do this all wrong?
Link to comment from August 27, 2024
Lower volatility, probably. Easier psychologically - sure. A dividend strategy may be less tax efficient for some people though. Dividends and short-term capital gains are effectively taxed at marginal IT rates, long-term capital gains have a lower tax rate (even zero for some folks). It may be better to sell some shares periodically vs receiving a dividend.
Post: Yielding No Advantage
Link to comment from August 26, 2024