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Even flying by the seat of one’s pants can work. As Nike says, Just do It!
I claim no expertise in investing, and rightly so. I read and listen about the basics like diversification, bonds vs stock and such, but not much more.
To me the most important thing is to save and invest and keep doing it which I have done since I was eighteen – 63 years. Probably more expertise would have meant larger fund balances, but since I will never know, why worry about it?
Fact, is I started with zero, earning minimum wage after high school and today my net worth is more than double the average for my age. Should I worry it’s not higher? Not me.
Fidelity just gave me an analysis of my accounts – one qualified, one brokerage. In the last year my total aggregate return was 28.12% compared with the S&P at 35.53% and the total stock market at 35.08%.
The dividends paid in the last year on my investments equal 31% of my fixed pension. I’m not sure what that means except I can deal with inflation – a fortuitous result of my non-expert investing I admit.
Should I be depressed being 7% behind? Not me, I’m happy seeing my accounts still growing, even overcoming the RMDs.
The message is clear – to me – save first, invest, be patient, be very patient, never stop or give up, don’t do anything really stupid (a little stupid as in my case is likely survivable), but most of all … just do it‼️
Dick,
If you had any money in bonds, which it sounds like you do to decrease your portfolio’s volatility, you would NEVER be able to match the return of the S and P. So comparing your portfolio to a stock only index is not appropriate.
My only complaint with Morningstar’s Portfolio Manager is that their only bogeys available for comparison are stock only index’s such as the S and P, etc..
What I use for comparison are Vanguard’s and Fidelity’s Target Date Funds. Even though I may not have the same asset allocation, I’m still comparing my portfolio’s return to their “suggested” portfolio’s return for my age.
For those interested I beat both of theirs returns over most time periods!
“If you had any money in bonds, which it sounds like you do to decrease your portfolio’s volatility, you would NEVER be able to match the return of the S and P.”
In the first decade of the 21st century, bonds surprised most observers by outperforming the stock market.
https://www.investopedia.com/articles/06/centuryofbonds.asp#:~:text=future%20into%20question.-,In%20the%20first%20decade%20of%20the%2021st%20century%2C%20bonds%20surprised,extreme%20volatility%20during%20that%20decade.
Good point. Actually I have about 30% of the brokerage account in municipal bond funds. The goal is future tax-free income generation for my wife if needed.
She can swap out a taxable fund for tax free if she starts filing single.
Please see if you can find a similar target date fund and see how you compare and report back. I think we’d all be interested in the results of a comparison to a more appropriate bogey.
Invest early, invest regularly, invest for a long time. I believe in the k.i.s.s. (keep it simple stupid) method. I’m never the smartest person in the room but I stay informed when it comes to investing, I determine a plan for investing, and then I follow through with it. The stock market always has been and always will be the best investment vehicle so I just keep investing
You don’t have to have the perfect plan, but you do need have one.