Most people don’t realise it, but the secret to retiring comfortably is finding a way to make returns while your money works for you. My dad, as I remember, started saving for retirement quite late, but I know he was making more than 10k returns from his investment monthly and it was completely passive.
Haha. Investing enthusiast? Not really. Our family got introduced to a financial advisor about four years before my dad retired. That was what changed things. I've been using the same now and I think my retirement income would be on the right track.
I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
Just talked to my dad today, he's 72. Mom and dad retired debt free, and are able to pay for their lifestyle entirely on SS. Occasional/rare large purchases are pulled out of their modest cash only CD type investments. Mom just had a triple bypass, Medicare and SS paid it all. He just bought me lunch today. They have a pretty nice life.
That's great for them unfortunately it's less likely to be great for us. Social security payouts might be cut, be fully taxes, full retirement age moved back, or withheld entirely if we have any type of income by the time we retire. We'll need to depend more on our own investmentsor be prepared to work for the rest of our lives. It's not going to get any easier for us.
it's so obvious that things are not improving. I'm looking at high-yield dividend stocks. Selling 200k worth of stocks is stupid without reinvesting it. I might turn to cash soon if I don't invest it. Any particulars? (Buying bonds or CDs is not for me)
The market's instability makes DIY risky. You don't need to find the next NVDA to succeed in investing. Opt for top-notch ETFs, dividend aristocrats, and a trusted advisor. I've turned $480k into 33,000 in quarterly dividends using one, a major milestone.
I'm cautious about giving specific recommendations as everyone's situation varies. Consider independent financial advisors like "JENNIFER LEIGH HICKMAN" I've worked with her for 9 years and highly recommend her. Check if she meets your criteria.
You ride it out by living modestly . There are a whole slew of people that supposed to retire in 2009-2010 . All of them wisely ride it out by staying in SP500 and postponing retirement for 8 months to 1 year . All continue to live modestly. Within 2 years or so they are all doing ok
Recently retired. 2 weeks ago, I filled my cash bucket with 2 years worth of living expenses to minimize the possible impact of sequence of returns risk. The S&P index has continued to climb, but it’s impossible to perfectly time the market. However, the current P/E ratio is 28, so the market is clearly overvalued right now. So no regrets. (Edit: Corrected typo that erroneously indicated current P/E ratio at 20. Average over last 20 years is 24.5).
It’s extremely unwise to do any “time the market” moves. Experts for decades have been saying that if you even miss just ‘one rebound’ you would have lost any advantage from trying to time the market. Much, much better to just keep it in the market and weather the downs as there will always be ups.
@@glasshalffull2930 As I said, it is impossible to time the market, and I agree that would be unwise to attempt. However, in early retirement, it's important to have enough cash to weather a market downturn. Otherwise, you're having to sell at market lows to cover living expenses, and run into a sequence of returns risk (look it up if you're not familiar). Until recently, most of my investments were tied up in stock and bond funds with very little in cash. We've seen how both types of investments can tank simultaneously (2021), so having enough cash is equally important in retirement to avoid having to sell low. My recent sale from a stock fund was a small fraction of my total investments, and just enough to give me a 2 year cushion in case of a market downturn. I was also able to sell close to historic market highs, so the risk of "losing out on a rebound" does not exist here. I can be greedy and stay fully invested in stocks for higher returns, but in retirement, stability is more important. So I now have a mix of stocks, bonds and cash (the 3 bucket strategy) to allow me to sleep at night. I believe that was Azul's point in this video.
@@todds9839 I have both. Cash in money market funds for short term needs (less than 6 months), and a treasury bond ladder that extends further out (i.e., ranging from 6 months to 5 years), so having staggered expirations. I only use those funds if the market is significantly down. Otherwise, I'm gradually selling off my stock index holdings to fund my retirement. I also have about 35% of my total holdings in bond index funds, but as we've seen from the 12% downturn in 2021, they're not as safe as experts had led us to believe.
One of the best advices ever heard and it's free... Azul tells us truths that chill active investment managers charging hefty fees. (I had been in the investment management industry for 30 years.. )
My plan is to have an emergency fund. An emergency fund is useful now when I am working, I don't see why it won't be useful when retired. If the market falls 50% then I can reduce the withdrawal by 50%. The rest would have to be taken from the emergency fund. When the market bounces back I replenish the emergency fund. Very similar to working today.
if we have speculative euphoria like the 2000 topping cycle then we are exactly at Jan 1998 (looking at the current Shiller PE). Back then the market topped in Fall of 2000 so the market climbed for another 2.5 years after this point which puts us out to early 2027 sometime and the S&P 500 at over 7000. My point is that crashes can take a long time to materialize and drive the market to dizzying heights before crashing.
Use a three bucket strategy. Bucket 1, cash in money markets for three years. Bucket 2, two years in bonds, preferred stocks etfs, and a balanced fund. The remainder in equities. That's my strategy.
I had a family friend (who had a seat on the Silver Exchange and his son had one, too!) tell me that when the stock market is down, that just means stocks are on sale.
3:30 Nice chart. We need to know: is the investor 6.81% straight up or after management (MER) expenses? and, is the market 9.65% without dividends or does it include dividends? Notes on the chart itself do not mention either.
Instead of bonds, I ladder CDs at 5-5.5% so I always have cash available within a few weeks to leverage a buying opportunity. Should the market correct, which it inevitably does.
I weathered all of what you said. 2008, 2020 and 2022. Never sold anything. Have taken some losses when a company went bad but never a forced seller. I won't next time either. I have 2 years of bonds and High Yield MM funds on stand by.
@@bruced.370 Everyone’s situation is different. If you estimate your expenses for after retirement and think you are barely going to make it, then you certainly want to be conservative a handful of years out. On the other hand if you have a pension/SS and a spouse still working or a part time side gig, and an emergency fund to last a few years, then maybe you can be more aggressive and stay mostly in stocks because you can weather a downturn.
We are in a good spot, and we are furtunate. We don't have a crystal ball on when the next crash and/or prolong down market is going to occur, so we set aside a five year bucket of cash - and it also doubles up as our emergency fund and for opportunities (eg made a killing when the Pandemic started).
@@deanrotering879 I made the mistake of not also doing a lot more Roth Conversions at that time period (I had over two months+ to make the move, but I was concentrating on buying stuff)
Oftentimes that is true. In fact, well over half the time the market is at or near all time highs. That is why my main point is that ATHs are a great time to make sure your long term allocation is correct. Easier to tweak at ATHs than after the market falls a bit (or more). Thanks for watching and for taking the time to comment. Azul
Ok, so I live reasonably modestly and am 100% stocks at 60. I work because I want to, not because I have to and invest more than 30% of my income. Given I can take a pretty big hit and still do fine, why wouldn't I stick with 100% stock in retirement? I didn't blink in the last two recessions even though I took a huge hit - like .5M. Its all come back since. Feels like pure stocks in the long game still works? The alternative seems to just stem losses, but earns nearly nothing.
Hi Spin. One caution I would share is that oftentimes - but not always - how someone feels about market corrections feels much more painful once they no longer have an income coming in. One other thought to consider. Once you have "won", why not quit playing? You know yourself best so only you can make calls like this. Azul
Just one thing to consider. If you had to stop working tomorrow, would you be able to meet your financial needs and have money for a major emergency without having to take significant withdrawals from your 401K? I’m 64 and have an OK pension, SS and emergency cash for a few years and so I could stop my withdrawals from my 100% S&P500 portfolio if I needed to. The question is, could you do the same?
@@AzulWellsAs a recent retiree, I do think having a cash bucket is nice for peace of mind, but if you’ve won the game, why not keep playing? If you have enough so 50% losses wouldn’t affect your lifestyle or attitude, then why not stay almost 100% in the markets?
You aren't in retirement, though. You haven't actually realized a loss, because you haven't needed to access your portfolio for income. If you needed to access your portfolio and you were 100% equities in a down market, you would actually realize the loss. If you were never going to need to access your portfolio, because you are going to work until you die because you love the work or you have some other income covering your expenses, then sure 100% equities would be fine since you would presumably never realize the loss. The question then would be if you aren't ever going to need to access your portfolio, then why are you continuing to invest into it? You save and invest to eventually decumulate and spend.
@@dforrest4503 it's a technique, but chances are a 50% drop is going to impact your lifestyle and attitude. If you are used to spending $200k/yr a 50% reduction means you are going to have to double your withdrawal rate to maintain it, or you are going to have to reduce your lifestyle by 50%. That's pretty significant.
huh, @10:08 get from your head to your heart? Seems your whole argument and backup data you presented suggests the opposite: you need to move from your heart (emotional) to your head (logical).
Yah Dalbar. Like the average investor can be 100% in stocks for 30 years. The comparison chart is fantasy because typical asset allocation lowers returns. The average person just wants a modest return and not to go through the equity rollercoaster. ZIRP was a total debacle for those not inclined to roll the dice with equities.
I'm usually a fan of your channel but i disagree with the first part of this video where you show that the average investor makes under 7 percent but the S&P makes almost 10 percent. There are several reasons for this (in my humble opinion). I am over 60 years old and have been investing in a 401(k) for over 30 years. I have never sold my investments in a down market but I have changed funds when there were lower cost, more diversified options offered. One thing missing from your presentation is that there are fees to invest in 401(k)s and, although people now have a wonderful variety of low cost ETF funds with lower expense ratios to invest in, it has taken the 401(k) administrators a very long time to include any such offerings. Most 401(k) plans are being managed by the big name companies and they have kept mostly higher cost mutual funds as choices (with much higher expense ratios) as options. As a private investor, I have exceeded my 401(k) percentage returns because I free reign to be able to choose those lower cost funds in my brokerage account.
Azul and others talk about asset allocation split between stocks and bonds, but would it be better today to split between stocks and CASH? The bond ETFs I look at have negative returns over the past 5 years. Meanwhile banks and brokerage firms are paying more than 4%.
my question is being prepared vs when do you move money? If you have a plan... what bond funds you're going to move stuff to, doesn't it just make sense to act on it when the signs are clear there is a crash happening? Most 401k move whatever you want in 2 weeks. So it doesn't seem to make sense to do stuff now as things continue to skyrocket. but.... being prepared to act on your plan seems to make the most sense. Doesn't it? (I mean of course not to over think it and move stuff back and forth, but use logic and rational thinking)
What kept me out of market too long was the idea often heard on cnbc over the years - that the market has “pulled forward” future returns and so then future long term returns on stocks is likely to be about 3 to 5 percent. That has never been true. Also with markets at all time highs it means every crash or pullback in history has been a buying opportunity
I like your content but your bias is clear. Very few people beat the S&P 500 including professional investors. I will not pay someone to pick stocks or funds for my portfolio. The advisor could lose 10% as easy as I could.
Have you looked forward to see what tax bracket RMDs will push you into? I certainly wouldn’t get into an annual agreement where an advisor gets 1.5%, but a flat fee for a onetime session with a tax guy who specializes in retirement issues would be a good idea.
@@kevinkanter2537 he doesn't, since he's referenced this for-profit, for FA industry benefit, problematic Dalbar report a couple times now. Even though FA industry likes to point to Dalbar to justify hiring a FA, it actually supports the argument to just invest in broad based index fund.
@@glasshalffull2930 yep - i am single w/ a small pension and it would have pushed me into the 24% tax bracket and as a further problem i would have gone from 1.4x in my 70's to 2.0x base Medicare premiums in my early 80's. I certainly didn't think you would have committed to the entire yearly AUM even for a quarter's eval for 1% AUM/yr .or .25% for the quarter - which i have never had success negotiating ... but 🙂? however a fee-only onetime session -- agree that it will be good. I'm going to do that because my situation gets weird in 2026.
Great video Azul! I am retiring in July and have a good allocation, but you just reminded me to set an appointment with my advisor to make sure it is the correct allocation right now while the markets are up. Keep em coming!
Great information. Can you explain how asset allocation would protect us if say the market were to drop 20% in a short period. If you have a 60/40 allocation and $1m. Your stocks (600k) would drop $120k. What happens to the $400k in bonds. I understand it should likely stay stable. Does it? Or is having Bonds to help manage fear? The thesis I work with is that Bonds are never a good investment as long as you can manage fear. Holding Bonds that will likely underperform the S&P500 by 4-5+% is nearly always going to be worse over any 5 year period. I’m not expecting an answer but do hope you will discuss one day. Cheers
Hi Richard. I will discuss this in a future video. Thanks for the question. For now, let me share this. Your logic on stocks is correct. And, I agree, in general, high quality short duration bonds will oftentimes underperform stocks over a 5 year period (unless rates drop meaningfully). Once caution with bonds. Not all bonds are stable. Some a quite risky. Some are more risky than stocks. That is why I always say "high quality, short duration bonds". From your analysis, I know that you already know this but I wanted to share it in case it is helpful to you or to others in the community. Thanks for watching and for taking the time to comment. Azul
i have commented on this before so I will be brief. In retirement, the most important thing is to know your burn rate. As without it you can not determine your asset mix. Let me use a gross analogy. Let us say your burn rate is 5K a month, but between SS, dividends, pensions and side hustles you bring in 10K a month. Since none of this income stream is directly impacted by the fall of the market, you dont need to worry about short-term fluctuations. As you know in the long term stocks will do better than fixed income investments like bonds. But in the case is reverse, you only have a revenue stream of 5K, but need 10K, you DO care. As you need to make sure you are not selling stocks at their low to cover your bills and cash needs. So dont listen to conventional wisdom on what your asset mix should be. Instead, figure out your ratio of income to expense. and if it is less than .9 then make sure you have plenty of cash and fixed income. Otherwise a heavy equity asset mx is the best for the long term. Hope that makes sense.
Thank you for saying this much better than I could! When I was approaching retirement, I determined that I fell into your category #1. I would have a pension that replaced about 44% of my income, SS, small periodic side gig bringing in about $10K, the spouse was still working and most importantly an emergency fund that would allow me to NOT draw down from my stock portfolio in a few down years. Because of the forgoing, I decided to stay 100% in the S&P50. Now I’ve been retired 9 years and my S&P 500 fund has almost tripled even with pulling about $54K a year for the past four years. My co-workers thought I was crazy not to get heavily into bonds when contemplating retirement, but I knew I’d be OK. (Doesn’t mean the 2022 correction didn’t bother me, but I knew it would come back)
Could the market be rising due to inflation? (its not a bubble, just a normal part of inflation). What difference does it make if the SP500 doubles and Starbucks coffee is $50.
I only look at my investments 2 to 3 times per year, normally around tax season and end of the year. its on auto pilot for me. I use to do a lot of trading, but last 15 years, just not interested and returns are way better and no tax implications. Let it ride.
A Great Series of Video Azul preparing for Retirement, It hits a note for me, especially l have approx 12months to go b4 retirement at 60. I remember the 45% drop in 2008 for my market investments, it was gut wrenching for me. Since then pretty been 100% in market. But now, with only a year to go, lm becoming risk adverse. Im 30% cash now, rest Markets. World Markets are Crazy and most Countries in Huge Debts, like in 2007 l feel some big Surprise is Coming this Year or Next. Im no Expert, but lm preparing for a few hard years when a Correction Happens, I dont want To Suffer the Greif od 2007/2008 again. Keep Up your Great Videos Azul😁🦘👍
Azul, thx for your videos + greetings from Germany 🇩🇪 ! I like your calmness, because without it and without patience and foresight you have little success on the stock market 👍
I plan to retire in January. 85% stocks, 14% bonds. I’d like to change my asset allocation in my Vanguard traditional IRA, transition about 20% more from my stocks that are currently quite high into bonds to reduce my risk. I don’t actually know how to do it. If if keep it in my Ira but transition to bonds, it isn’t a withdrawal, but I guess it is a sale. Does that mean I have to pay taxes? I just don’t know how. I want to make my asset allocation less risky NOW while the market is up. Can I just call Vanguard?
COOL - get it done. No taxes; the sale in a tax-deferred ira is not a taxable event. i was lucky and just rode out the 2021-2 rollercoaster with a 90% equity/10% cash position - i still have whiplash but i'mup a few peercent. i just called Fidelity who gave some eval but i have been DIY (or DIM, more like it 🙂) so it was easy research. Got caught because i figured i wanted to retire (enough!!) - in 2019 when RMD start-time pushed out so had some roth conversion opportunities - who hoo. so down now to 50% equities, which is a tad higher than most advisers and the literature would suggest, i.e 30-40% but I have my locations now under control ... Good luck getting the alloction target as well as the location of your different investment types under control. So often the more you know and the simpler you can make it, the better your advice will be since you know more. Otherwise, a financial check-up, as Azul recommends, is $ well-spent ($1-2k vs $$$ 1% of the AUM/assets under review ... ALSO make sure the reviewer is using tax-consideration software vs simple financial planning software. (Fidelity's standard calculator was NEVER enough for me to get the right plan since it had no tax implications eval.) this is not financial advice but just be careful not to rely on only yourself to get it right. you only have 1 time to get it right .
if you call vanguard for assisted trading you will pay a fee. you can buy and sell within an IRA account without being subject to taxes now. You are only subject to taxes on traditional IRA when you actually take a distribution/withdrawal. Keep in mind, you would normally keep your bond allocation in traditional IRA since you want your assets that have higher appreciation potential in your Roth IRA since earnings in a Roth IRA are tax free. If you aren't 59.5yo, yet and you need to tap into your IRAs, then you would want a mix of bonds and equities in your Roth IRA or taxable so you have access to the bonds until you reach 59.5yo and don't get early withdrawal penalty.
The recent stock market rally has left investors questioning whether it's the end of the bear market or a sign of volatility to come, especially with traditional indicators like the inverted yield curve signaling caution. In such a climate, pivoting to the dynamic world of cryptocurrencies could be a wise move. Despite a potentially bearish stock market, the crypto market remains a hub of innovation and opportunity. Amidst this the insights of a knowledgeable guide like Rafa Manuel can be crucial. His expertise in navigating the nuances of cryptocurrency investments could be the key to understanding and making the most of these emerging financial trends.
What impresses me most about Rafa Manuel is how well she explains basic concept of winning before actually letting you use her trade signals. This goes a long way to ensure winning trades.
Thanks for sharing this here. A lot of beginners Like me are smashed out there every day. It's a good thing we have nice people here who want others to become successful as they are
Fear is real. This Cypher Raige quote is hokum. Stating that fear is not real deligitimizes peoples' real emotions, which is harmful. Per Psychology Today: "If people didn’t feel fear, they wouldn’t be able to protect themselves from legitimate threats. Fear is a vital response to physical and emotional danger that has been pivotal throughout human evolution, but especially in ancient times when men and women regularly faced life-or-death situations."
Great video Azul but let's give credit to the script writers for that Will Smith movie. He may have said the "fear is a choice" quote in the movie 'After Earth' but the screenwriter wrote the quote!
Recently, a famous money talk personality stated you needed $5 million to retire early, and not to retire unless you have $5 million. What are your thoughts on this statement? She was addressing early retirement people, stating that health issues could claim your nest egg.
Asset allocation is easier now. When rates were really low, it was difficult to not overweight stocks...until the pandemic hit. Similarly, in 2023 when rates started to rise rapidly, bond (fund) holders felt some pain. Feels like, right now is a sweet spot.
you are viewing asset allocation wrong then. Lower risk assets are designed to preserve wealth not accumulate. You accept the opportunity costs to weather the bifurcation of riskier assets.
@@hanwagu9967 It depends whether Mike is retired or not. If he is, then reallocating an equity heavy portfolio towards fixed income and cash makes sense. I agree with him that the current market conditions are ripe to be rebalancing one's portfolio, especially if in retirement.
#1 You can make more money, you can’t make more time. #2 invest in these non-correlated asset groups. S&P 500 ETF, Total Bond market ETF, Real estate/ housing, gold.
I have a large stock portfolio that provides me with a lot of dividends. Im not too concern if the stocks fall as long as my dividend aristocrat stocks continue to pay. The only time Im concern is if I need to sell. Otherwise, Im not selling the chicken that lays the eggs.
Hey Azul Love your videos. What advice would you give to early accumulators when markets are at all time highs? I am on track to add 150k to my S&P500 tracker this year and for the next few years. Any thoughts on adding money like that to the markets when the markets are this high?
I disagree, fear is not a choice, it is very real and based on a lifetime of learning and experiences. Just because a mediocre actor quotes something he probably heard from a mediocre writer doesn’t mean anyone should take it seriously.
My “lifetime of learning” has taught me that most people, including myself, fear/worry about things that never come true or are much less of a problem than one thinks. BTW - it was just a quote.
I think shifting ALL of us to 401K and away from DBPP and then blaming us for not being pro investors with some limited and poorly understood and in some cases poorly managed is so effing upsetting and so effing GOP but I understand those people didn’t want any type of retirement plan because they wanted us to work until we drop. The market is near a massive high right now, is it really the time to jump in?
It's an exciting time to be retiring. Not exactly a time that leads to a lot of confidence, but I've been shifting from a ~100% equities position to a ~65% equities in preparation. It seems strange to be taking money out of that category of investments, but it helps when the markets are high. (Fwiw I've been heavy into S&P 500 index funds, buy and hold, don't panic if the market goes down, it'll come back up. They've done well for me).
I'm approaching 64, not collecting Social Security, retired 7+ years and I'm 98% in equities. I'm sure 90%+ of financial planners would be screaming reduce your exposure!!! But you have to know the individuals goals and have a complete view of their situation. That's what makes the " I'm xx years old with $___,___ dollars ...can I retire?" So laughable. P.S. I sleep like a baby!
Azul -I'm 43, no house, no furniture, the most basic (think pre-electricity) kitchenwares, and have ~$51k roth... I'm working for a woke company and they won't let me advance ($52k income) due to my age and race. I don't have any degrees and my high school diploma isn't recognized being my parents sent me to a family run small school (not accredited) and it shut down the year I graduated. Not sure how I'll survive to even 45 as I don't have any friends and my siblings are all married with children or dead/dying from cancer. I don't own a computer even so I can't even do my own taxes, which costs me almost 3 months of groceries to have H&R do my taxes.
Work 2 jobs and save like hell. Bill Gates and Steve Jobs didn't have a college degree and they were billionaires so stop using excuses and work harder or move.
ETFs and Mutual that follow the S&P and Nasdaq. Investing on easy. I learned my lesson real quick buying individual stocks and trying my luck at options 20 years ago. The former I tried for less than a year and the later about a month. I said no way and jumped into what i stated above. super happy with the outcome these past decades.
Absolutely, Correct! I bought some individual stocks when I was a young man and they all performed, but it was way more angst looking at the market all the time and trying to decide when/if to sell. Much better putting it into the S&P. I also had a relative who lost $20 K in options 35 years ago. If he had put it in the S&P and averaged 8%, it would be worth $277K now. 🤦♂️
First truth: Stay out of your box, be it a house, apartment, whatever. People who sit home eating and shitting lead lives as meaningful as that of my neighbor's dogs.
![Seungmin "그렇게, 천천히, 우리(As we are)" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/kAzmhLHePqU/mqdefault.jpg)
Most people don’t realise it, but the secret to retiring comfortably is finding a way to make returns while your money works for you. My dad, as I remember, started saving for retirement quite late, but I know he was making more than 10k returns from his investment monthly and it was completely passive.
This is really amazing though. I'm curious as to how he did it. Was it real estate? Or he was a market enthusiast?
Haha. Investing enthusiast? Not really. Our family got introduced to a financial advisor about four years before my dad retired. That was what changed things. I've been using the same now and I think my retirement income would be on the right track.
I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
Just talked to my dad today, he's 72. Mom and dad retired debt free, and are able to pay for their lifestyle entirely on SS. Occasional/rare large purchases are pulled out of their modest cash only CD type investments. Mom just had a triple bypass, Medicare and SS paid it all. He just bought me lunch today. They have a pretty nice life.
That's great for them unfortunately it's less likely to be great for us. Social security payouts might be cut, be fully taxes, full retirement age moved back, or withheld entirely if we have any type of income by the time we retire.
We'll need to depend more on our own investmentsor be prepared to work for the rest of our lives. It's not going to get any easier for us.
@@TheFirstRealChewy If Social Security is cut there will be a lot of members of Congress out of a job. It's political kryptonite.
it's so obvious that things are not improving. I'm looking at high-yield dividend stocks. Selling 200k worth of stocks is stupid without reinvesting it. I might turn to cash soon if I don't invest it. Any particulars? (Buying bonds or CDs is not for me)
I also think everyone needs a Margin of Safety in their portfolios and just remember, It's time in the market versus timing the market.
The market's instability makes DIY risky. You don't need to find the next NVDA to succeed in investing. Opt for top-notch ETFs, dividend aristocrats, and a trusted advisor. I've turned $480k into 33,000 in quarterly dividends using one, a major milestone.
I've been considering but haven't been proactive. Can you recommend your advisor? Could really use some assistance.
I'm cautious about giving specific recommendations as everyone's situation varies. Consider independent financial advisors like "JENNIFER LEIGH HICKMAN" I've worked with her for 9 years and highly recommend her. Check if she meets your criteria.
I curiouslyy looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip
You ride it out by living modestly .
There are a whole slew of people that supposed to retire in 2009-2010 .
All of them wisely ride it out by staying in SP500 and postponing retirement for 8 months to 1 year .
All continue to live modestly.
Within 2 years or so they are all doing ok
💯
Recently retired. 2 weeks ago, I filled my cash bucket with 2 years worth of living expenses to minimize the possible impact of sequence of returns risk. The S&P index has continued to climb, but it’s impossible to perfectly time the market. However, the current P/E ratio is 28, so the market is clearly overvalued right now. So no regrets. (Edit: Corrected typo that erroneously indicated current P/E ratio at 20. Average over last 20 years is 24.5).
Thank you for the info.
It’s extremely unwise to do any “time the market” moves. Experts for decades have been saying that if you even miss just ‘one rebound’ you would have lost any advantage from trying to time the market. Much, much better to just keep it in the market and weather the downs as there will always be ups.
@@glasshalffull2930 As I said, it is impossible to time the market, and I agree that would be unwise to attempt. However, in early retirement, it's important to have enough cash to weather a market downturn. Otherwise, you're having to sell at market lows to cover living expenses, and run into a sequence of returns risk (look it up if you're not familiar).
Until recently, most of my investments were tied up in stock and bond funds with very little in cash. We've seen how both types of investments can tank simultaneously (2021), so having enough cash is equally important in retirement to avoid having to sell low.
My recent sale from a stock fund was a small fraction of my total investments, and just enough to give me a 2 year cushion in case of a market downturn. I was also able to sell close to historic market highs, so the risk of "losing out on a rebound" does not exist here. I can be greedy and stay fully invested in stocks for higher returns, but in retirement, stability is more important.
So I now have a mix of stocks, bonds and cash (the 3 bucket strategy) to allow me to sleep at night. I believe that was Azul's point in this video.
Kash is King. So, you are saying you have 2 years cash to survive a market downturn? ... As opposed to having bonds for a market downturn.
@@todds9839 I have both. Cash in money market funds for short term needs (less than 6 months), and a treasury bond ladder that extends further out (i.e., ranging from 6 months to 5 years), so having staggered expirations. I only use those funds if the market is significantly down. Otherwise, I'm gradually selling off my stock index holdings to fund my retirement. I also have about 35% of my total holdings in bond index funds, but as we've seen from the 12% downturn in 2021, they're not as safe as experts had led us to believe.
One of the best advices ever heard and it's free...
Azul tells us truths that chill active investment managers charging hefty fees.
(I had been in the investment management industry for 30 years.. )
Don’t complicate things. Retire.
My plan is to have an emergency fund. An emergency fund is useful now when I am working, I don't see why it won't be useful when retired. If the market falls 50% then I can reduce the withdrawal by 50%. The rest would have to be taken from the emergency fund. When the market bounces back I replenish the emergency fund. Very similar to working today.
if we have speculative euphoria like the 2000 topping cycle then we are exactly at Jan 1998 (looking at the current Shiller PE). Back then the market topped in Fall of 2000 so the market climbed for another 2.5 years after this point which puts us out to early 2027 sometime and the S&P 500 at over 7000. My point is that crashes can take a long time to materialize and drive the market to dizzying heights before crashing.
100%
👍 If you’re early in your career, during the downturns just put your head down and keep contributing. This all will pass.
Use a three bucket strategy. Bucket 1, cash in money markets for three years. Bucket 2, two years in bonds, preferred stocks etfs, and a balanced fund. The remainder in equities. That's my strategy.
Sounds like a good plan. Keep it Simple
I think bucket 2 is useless because most downturns don't last more than 2 years
I had a family friend (who had a seat on the Silver Exchange and his son had one, too!) tell me that when the stock market is down, that just means stocks are on sale.
Sure, as long as you have money to buy and an income that doesn't suffer the same fate as the market
@@ICantSpellDawg It's a person's perspective that keeps them poor.
The secret is keeping money on the side for the correction sales. That’s where you make all the real money
3:30 Nice chart. We need to know: is the investor 6.81% straight up or after management (MER) expenses? and, is the market 9.65% without dividends or does it include dividends? Notes on the chart itself do not mention either.
I wonder, at what point do you lock into your gains? What percentage gain?
Great to have you back, Azul. This may be your best video yet!
Instead of bonds, I ladder CDs at 5-5.5% so I always have cash available within a few weeks to leverage a buying opportunity. Should the market correct, which it inevitably does.
Thanks for all the wisdom…learned so much from you ❤
I weathered all of what you said. 2008, 2020 and 2022. Never sold anything. Have taken some losses when a company went bad but never a forced seller. I won't next time either. I have 2 years of bonds and High Yield MM funds on stand by.
Don’t forget spring of 2000😂
@@TheMurrblake I weathered 2000 and the rest and never sold and now I’m a millionaire several times over 😂😂😂
But, you had time on your side..... What if you just retire would you change your asset allocation??? No time to make up heavy loses.
@@bruced.370 Everyone’s situation is different. If you estimate your expenses for after retirement and think you are barely going to make it, then you certainly want to be conservative a handful of years out. On the other hand if you have a pension/SS and a spouse still working or a part time side gig, and an emergency fund to last a few years, then maybe you can be more aggressive and stay mostly in stocks because you can weather a downturn.
@@bruced.370 the goal is to have enough cash equivalent assets when you retire to weather a downturn so you Don’t change allocation.
Be fearful when others are greedy, and greedy when others are fearful. Look at the NASDAQ historical chart, not exactly a time for bargains.
Yeah, if you bought the QQQ when Bob Brinker lost his mind and threw everything at them, you would be pretty bummed for over a decade.
@@Mike89138I miss Bob brinker
We are in a good spot, and we are furtunate. We don't have a crystal ball on when the next crash and/or prolong down market is going to occur, so we set aside a five year bucket of cash - and it also doubles up as our emergency fund and for opportunities (eg made a killing when the Pandemic started).
March 2020 was the best time ever!! I do the same.
@@deanrotering879 I made the mistake of not also doing a lot more Roth Conversions at that time period (I had over two months+ to make the move, but I was concentrating on buying stuff)
Canat belive how hooked in I am with Azul's videos.
Thanks Electromag. Your comment made my day! 😎Azul
I love how nervous everyone is that a big correction is coming. Makes me think we still have a ways to go beforehand.
Oftentimes that is true. In fact, well over half the time the market is at or near all time highs. That is why my main point is that ATHs are a great time to make sure your long term allocation is correct. Easier to tweak at ATHs than after the market falls a bit (or more). Thanks for watching and for taking the time to comment. Azul
Best video yet! Filled with great wisdom and data.
Ok, so I live reasonably modestly and am 100% stocks at 60. I work because I want to, not because I have to and invest more than 30% of my income. Given I can take a pretty big hit and still do fine, why wouldn't I stick with 100% stock in retirement? I didn't blink in the last two recessions even though I took a huge hit - like .5M. Its all come back since. Feels like pure stocks in the long game still works? The alternative seems to just stem losses, but earns nearly nothing.
Hi Spin. One caution I would share is that oftentimes - but not always - how someone feels about market corrections feels much more painful once they no longer have an income coming in. One other thought to consider. Once you have "won", why not quit playing? You know yourself best so only you can make calls like this. Azul
Just one thing to consider. If you had to stop working tomorrow, would you be able to meet your financial needs and have money for a major emergency without having to take significant withdrawals from your 401K? I’m 64 and have an OK pension, SS and emergency cash for a few years and so I could stop my withdrawals from my 100% S&P500 portfolio if I needed to. The question is, could you do the same?
@@AzulWellsAs a recent retiree, I do think having a cash bucket is nice for peace of mind, but if you’ve won the game, why not keep playing? If you have enough so 50% losses wouldn’t affect your lifestyle or attitude, then why not stay almost 100% in the markets?
You aren't in retirement, though. You haven't actually realized a loss, because you haven't needed to access your portfolio for income. If you needed to access your portfolio and you were 100% equities in a down market, you would actually realize the loss. If you were never going to need to access your portfolio, because you are going to work until you die because you love the work or you have some other income covering your expenses, then sure 100% equities would be fine since you would presumably never realize the loss. The question then would be if you aren't ever going to need to access your portfolio, then why are you continuing to invest into it? You save and invest to eventually decumulate and spend.
@@dforrest4503 it's a technique, but chances are a 50% drop is going to impact your lifestyle and attitude. If you are used to spending $200k/yr a 50% reduction means you are going to have to double your withdrawal rate to maintain it, or you are going to have to reduce your lifestyle by 50%. That's pretty significant.
huh, @10:08 get from your head to your heart? Seems your whole argument and backup data you presented suggests the opposite: you need to move from your heart (emotional) to your head (logical).
Many of my stocks I have owned since the 90. it has been a good ride. Retirment looks good.
The market almost always sucks over the summer months and early fall. Most major corrections seem to happen in September-October.
I’d like to see the same charts indexed for inflation. Investment gains and losses are more relevant with some inflationary context.
Yah Dalbar. Like the average investor can be 100% in stocks for 30 years. The comparison chart is fantasy because typical asset allocation lowers returns. The average person just wants a modest return and not to go through the equity rollercoaster. ZIRP was a total debacle for those not inclined to roll the dice with equities.
I'm usually a fan of your channel but i disagree with the first part of this video where you show that the average investor makes under 7 percent but the S&P makes almost 10 percent. There are several reasons for this (in my humble opinion). I am over 60 years old and have been investing in a 401(k) for over 30 years. I have never sold my investments in a down market but I have changed funds when there were lower cost, more diversified options offered. One thing missing from your presentation is that there are fees to invest in 401(k)s and, although people now have a wonderful variety of low cost ETF funds with lower expense ratios to invest in, it has taken the 401(k) administrators a very long time to include any such offerings. Most 401(k) plans are being managed by the big name companies and they have kept mostly higher cost mutual funds as choices (with much higher expense ratios) as options. As a private investor, I have exceeded my 401(k) percentage returns because I free reign to be able to choose those lower cost funds in my brokerage account.
Azul and others talk about asset allocation split between stocks and bonds, but would it be better today to split between stocks and CASH? The bond ETFs I look at have negative returns over the past 5 years. Meanwhile banks and brokerage firms are paying more than 4%.
my question is being prepared vs when do you move money? If you have a plan... what bond funds you're going to move stuff to, doesn't it just make sense to act on it when the signs are clear there is a crash happening? Most 401k move whatever you want in 2 weeks. So it doesn't seem to make sense to do stuff now as things continue to skyrocket.
but.... being prepared to act on your plan seems to make the most sense. Doesn't it? (I mean of course not to over think it and move stuff back and forth, but use logic and rational thinking)
What kept me out of market too long was the idea often heard on cnbc over the years - that the market has “pulled forward” future returns and so then future long term returns on stocks is likely to be about 3 to 5 percent. That has never been true. Also with markets at all time highs it means every crash or pullback in history has been a buying opportunity
Azul does a great job at communicating investing behavior.
Thanks Cuz! 🙏 Azul
I like your content but your bias is clear. Very few people beat the S&P 500 including professional investors. I will not pay someone to pick stocks or funds for my portfolio. The advisor could lose 10% as easy as I could.
it really is a blindspot using studies such as Dalbar --- trying to compare an investor's 30-year portolio w/ inevatable
Have you looked forward to see what tax bracket RMDs will push you into? I certainly wouldn’t get into an annual agreement where an advisor gets 1.5%, but a flat fee for a onetime session with a tax guy who specializes in retirement issues would be a good idea.
@@kevinkanter2537 he doesn't, since he's referenced this for-profit, for FA industry benefit, problematic Dalbar report a couple times now. Even though FA industry likes to point to Dalbar to justify hiring a FA, it actually supports the argument to just invest in broad based index fund.
@@glasshalffull2930 yep - i am single w/ a small pension and it would have pushed me into the 24% tax bracket and as a further problem i would have gone from 1.4x in my 70's to 2.0x base Medicare premiums in my early 80's.
I certainly didn't think you would have committed to the entire yearly AUM even for a quarter's eval for 1% AUM/yr .or .25% for the quarter - which i have never had success negotiating ... but 🙂? however a fee-only onetime session -- agree that it will be good. I'm going to do that because my situation gets weird in 2026.
@@glasshalffull2930 If clients are taking a typical 4% a year and the advisor is taking 1.5% he is getting nearly half of as much as the clients.
Great video Azul! I am retiring in July and have a good allocation, but you just reminded me to set an appointment with my advisor to make sure it is the correct allocation right now while the markets are up. Keep em coming!
Congrats on the upcoming retirement. July is less than 50 days away! Azul
Great information.
Can you explain how asset allocation would protect us if say the market were to drop 20% in a short period. If you have a 60/40 allocation and $1m.
Your stocks (600k) would drop $120k.
What happens to the $400k in bonds. I understand it should likely stay stable. Does it? Or is having Bonds to help manage fear?
The thesis I work with is that Bonds are never a good investment as long as you can manage fear. Holding Bonds that will likely underperform the S&P500 by 4-5+% is nearly always going to be worse over any 5 year period.
I’m not expecting an answer but do hope you will discuss one day.
Cheers
Hi Richard. I will discuss this in a future video. Thanks for the question. For now, let me share this. Your logic on stocks is correct. And, I agree, in general, high quality short duration bonds will oftentimes underperform stocks over a 5 year period (unless rates drop meaningfully). Once caution with bonds. Not all bonds are stable. Some a quite risky. Some are more risky than stocks. That is why I always say "high quality, short duration bonds". From your analysis, I know that you already know this but I wanted to share it in case it is helpful to you or to others in the community. Thanks for watching and for taking the time to comment. Azul
i have commented on this before so I will be brief. In retirement, the most important thing is to know your burn rate. As without it you can not determine your asset mix. Let me use a gross analogy. Let us say your burn rate is 5K a month, but between SS, dividends, pensions and side hustles you bring in 10K a month. Since none of this income stream is directly impacted by the fall of the market, you dont need to worry about short-term fluctuations. As you know in the long term stocks will do better than fixed income investments like bonds.
But in the case is reverse, you only have a revenue stream of 5K, but need 10K, you DO care. As you need to make sure you are not selling stocks at their low to cover your bills and cash needs.
So dont listen to conventional wisdom on what your asset mix should be. Instead, figure out your ratio of income to expense. and if it is less than .9 then make sure you have plenty of cash and fixed income. Otherwise a heavy equity asset mx is the best for the long term. Hope that makes sense.
Thank you for saying this much better than I could! When I was approaching retirement, I determined that I fell into your category #1. I would have a pension that replaced about 44% of my income, SS, small periodic side gig bringing in about $10K, the spouse was still working and most importantly an emergency fund that would allow me to NOT draw down from my stock portfolio in a few down years. Because of the forgoing, I decided to stay 100% in the S&P50. Now I’ve been retired 9 years and my S&P 500 fund has almost tripled even with pulling about $54K a year for the past four years. My co-workers thought I was crazy not to get heavily into bonds when contemplating retirement, but I knew I’d be OK. (Doesn’t mean the 2022 correction didn’t bother me, but I knew it would come back)
Could the market be rising due to inflation? (its not a bubble, just a normal part of inflation). What difference does it make if the SP500 doubles and Starbucks coffee is $50.
I only look at my investments 2 to 3 times per year, normally around tax season and end of the year. its on auto pilot for me. I use to do a lot of trading, but last 15 years, just not interested and returns are way better and no tax implications. Let it ride.
A Great Series of Video Azul preparing for Retirement,
It hits a note for me, especially l have approx 12months to go b4 retirement at 60.
I remember the 45% drop in 2008 for my market investments, it was gut wrenching for me.
Since then pretty been 100% in market.
But now, with only a year to go, lm becoming risk adverse.
Im 30% cash now, rest Markets.
World Markets are Crazy and most Countries in Huge Debts, like in 2007 l feel some big Surprise is Coming this Year or Next.
Im no Expert, but lm preparing for a few hard years when a Correction Happens,
I dont want To Suffer the Greif od 2007/2008 again.
Keep Up your Great Videos Azul😁🦘👍
Azul, you are aware of the diminuation of overexposure?
So what are you going to do when the dollar goes to zero, they forgive all debts and seize all of your entitlements?
Azul, thx for your videos + greetings from Germany 🇩🇪 ! I like your calmness, because without it and without patience and foresight you have little success on the stock market 👍
Fear n greed kill many dreams!!!
I plan to retire in January. 85% stocks, 14% bonds. I’d like to change my asset allocation in my Vanguard traditional IRA, transition about 20% more from my stocks that are currently quite high into bonds to reduce my risk. I don’t actually know how to do it. If if keep it in my Ira but transition to bonds, it isn’t a withdrawal, but I guess it is a sale. Does that mean I have to pay taxes? I just don’t know how. I want to make my asset allocation less risky NOW while the market is up. Can I just call Vanguard?
COOL - get it done. No taxes; the sale in a tax-deferred ira is not a taxable event. i was lucky and just rode out the 2021-2 rollercoaster with a 90% equity/10% cash position - i still have whiplash but i'mup a few peercent. i just called Fidelity who gave some eval but i have been DIY (or DIM, more like it 🙂) so it was easy research. Got caught because i figured i wanted to retire (enough!!) - in 2019 when RMD start-time pushed out so had some roth conversion opportunities - who hoo. so down now to 50% equities, which is a tad higher than most advisers and the literature would suggest, i.e 30-40% but I have my locations now under control ...
Good luck getting the alloction target as well as the location of your different investment types under control. So often the more you know and the simpler you can make it, the better your advice will be since you know more. Otherwise, a financial check-up, as Azul recommends, is $ well-spent ($1-2k vs $$$ 1% of the AUM/assets under review ... ALSO make sure the reviewer is using tax-consideration software vs simple financial planning software. (Fidelity's standard calculator was NEVER enough for me to get the right plan since it had no tax implications eval.)
this is not financial advice but just be careful not to rely on only yourself to get it right. you only have 1 time to get it right .
No taxes are due if you keep it in IRA. You only have to pay taxes on the money you withdraw from your IRA.
Yes...just call
Vanguard and ask.
if you call vanguard for assisted trading you will pay a fee. you can buy and sell within an IRA account without being subject to taxes now. You are only subject to taxes on traditional IRA when you actually take a distribution/withdrawal. Keep in mind, you would normally keep your bond allocation in traditional IRA since you want your assets that have higher appreciation potential in your Roth IRA since earnings in a Roth IRA are tax free. If you aren't 59.5yo, yet and you need to tap into your IRAs, then you would want a mix of bonds and equities in your Roth IRA or taxable so you have access to the bonds until you reach 59.5yo and don't get early withdrawal penalty.
Aka buy the dip on the S&P!!
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RAFAMANUEL THAT IS HIS USER NAME
What impresses me most about Rafa Manuel is how well she explains basic concept of winning before actually letting you use her trade signals. This goes a long way to ensure winning trades.
This recommendation literally came at the right time, I dipped by $48k in stocks 4week alone. Thanks for the referral
Thanks for sharing this here. A lot of beginners Like me are smashed out there every day. It's a good thing we have nice people here who want others to become successful as they are
Yes that's right, I think the best way is to invest with a professional, at least it saves you the trauma of losing too
have a cash bucket to ride out the down market
Just asking for a sounding board - how many years of expenses is your trading day bucket?
Just retire. Figure it out as you go along. Discuss.
Take what you have and hit the Vegas roulette wheel. I recommend putting it all on black 🤔
@@glasshalffull2930no, red! All on red!
Talk among yourselves
Fear is real. This Cypher Raige quote is hokum. Stating that fear is not real deligitimizes peoples' real emotions, which is harmful. Per Psychology Today: "If people didn’t feel fear, they wouldn’t be able to protect themselves from legitimate threats. Fear is a vital response to physical and emotional danger that has been pivotal throughout human evolution, but especially in ancient times when men and women regularly faced life-or-death situations."
Great video Azul but let's give credit to the script writers for that Will Smith movie. He may have said the "fear is a choice" quote in the movie 'After Earth' but the screenwriter wrote the quote!
Good point Jenny. Thanks for the reminder to credit M. Night Shyamalan, and Gary Whitta who co-wrote the screenplay for ‘After Earth. 🙏 Azul
When I retire, I’m keeping with my old companies 401 k. And not worry about it
Convert it to an IRA, that way you won't be restricted by their crappy choices in funds.
2.5 years ago I invested 300G with Fidelity. Today my managed account is down 5g. So frustrating.
You are paying their advisors?
How can I get started to get paid advice from you
Recently, a famous money talk personality stated you needed $5 million to retire early, and not to retire unless you have $5 million. What are your thoughts on this statement? She was addressing early retirement people, stating that health issues could claim your nest egg.
Asset allocation is easier now. When rates were really low, it was difficult to not overweight stocks...until the pandemic hit. Similarly, in 2023 when rates started to rise rapidly, bond (fund) holders felt some pain. Feels like, right now is a sweet spot.
you are viewing asset allocation wrong then. Lower risk assets are designed to preserve wealth not accumulate. You accept the opportunity costs to weather the bifurcation of riskier assets.
@@hanwagu9967 It depends whether Mike is retired or not. If he is, then reallocating an equity heavy portfolio towards fixed income and cash makes sense. I agree with him that the current market conditions are ripe to be rebalancing one's portfolio, especially if in retirement.
Have enough in other investments to ride it out. Need to convert money to Roth in good times so your RMD’s later in life are not devastating.
Another great video 😊 I'm a 36 years old woman and I'm sure not in the target audience for the video but I love the content here 🙈 Thank you sir!
#1 You can make more money, you can’t make more time.
#2 invest in these non-correlated asset groups. S&P 500 ETF, Total Bond market ETF, Real estate/ housing, gold.
I have a large stock portfolio that provides me with a lot of dividends. Im not too concern if the stocks fall as long as my dividend aristocrat stocks continue to pay. The only time Im concern is if I need to sell. Otherwise, Im not selling the chicken that lays the eggs.
Azul great video! ❤ Everyone needs to see this video and learn from it!😀😀😀😀😀😀❤️❤️❤️❤️❤️❤️🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸
Ugh. I thought my portfolio finally reached where i thought it would be 2 years ago 😮
BTW- Over a 5 year period the market is positive 78% of the time. (At least that’s what I found on the internet)
I hate Will Smith. I like you Azul.
S&P 500 is NOT the stock market. It is a targeted bet on US growth stocks
Hey Azul
Love your videos. What advice would you give to early accumulators when markets are at all time highs? I am on track to add 150k to my S&P500 tracker this year and for the next few years. Any thoughts on adding money like that to the markets when the markets are this high?
I disagree, fear is not a choice, it is very real and based on a lifetime of learning and experiences. Just because a mediocre actor quotes something he probably heard from a mediocre writer doesn’t mean anyone should take it seriously.
My “lifetime of learning” has taught me that most people, including myself, fear/worry about things that never come true or are much less of a problem than one thinks. BTW - it was just a quote.
Fear of spiders is not the same for everyone but the danger of holding a black widow is the same. Perception is not reality.
I think shifting ALL of us to 401K and away from DBPP and then blaming us for not being pro investors with some limited and poorly understood and in some cases poorly managed is so effing upsetting and so effing GOP but I understand those people didn’t want any type of retirement plan because they wanted us to work until we drop.
The market is near a massive high right now, is it really the time to jump in?
Better to spend everything as the government will help you out - Dem Party.
@@glasshalffull2930 don’t be ridiculous.
Is will smith retired?
😂
It's an exciting time to be retiring. Not exactly a time that leads to a lot of confidence, but I've been shifting from a ~100% equities position to a ~65% equities in preparation. It seems strange to be taking money out of that category of investments, but it helps when the markets are high. (Fwiw I've been heavy into S&P 500 index funds, buy and hold, don't panic if the market goes down, it'll come back up. They've done well for me).
All these RUclips influencers with their prophecies of doom. Buy and hold, buy and hold. Up down sideways. Buy and hold.
I wish fear was a choice. It's not.
I'm approaching 64, not collecting Social Security, retired 7+ years and I'm 98% in equities. I'm sure 90%+ of financial planners would be screaming reduce your exposure!!! But you have to know the individuals goals and have a complete view of their situation. That's what makes the " I'm xx years old with $___,___ dollars ...can I retire?" So laughable. P.S. I sleep like a baby!
Azul -I'm 43, no house, no furniture, the most basic (think pre-electricity) kitchenwares, and have ~$51k roth... I'm working for a woke company and they won't let me advance ($52k income) due to my age and race. I don't have any degrees and my high school diploma isn't recognized being my parents sent me to a family run small school (not accredited) and it shut down the year I graduated. Not sure how I'll survive to even 45 as I don't have any friends and my siblings are all married with children or dead/dying from cancer. I don't own a computer even so I can't even do my own taxes, which costs me almost 3 months of groceries to have H&R do my taxes.
Work 2 jobs and save like hell. Bill Gates and Steve Jobs didn't have a college degree and they were billionaires so stop using excuses and work harder or move.
Wow I've never heard a more pitiful story filled with so many excuses and crafted perfectly to blame everyone else. Accountability and agency = 0
I'm out in t-bills until the inevitable crash, trading curbs, etc. Then will average back into an index after the carnage.
ETFs and Mutual that follow the S&P and Nasdaq. Investing on easy. I learned my lesson real quick buying individual stocks and trying my luck at options 20 years ago. The former I tried for less than a year and the later about a month. I said no way and jumped into what i stated above. super happy with the outcome these past decades.
Absolutely, Correct! I bought some individual stocks when I was a young man and they all performed, but it was way more angst looking at the market all the time and trying to decide when/if to sell. Much better putting it into the S&P. I also had a relative who lost $20 K in options 35 years ago. If he had put it in the S&P and averaged 8%, it would be worth $277K now. 🤦♂️
In 2022, the sheep sold stocks and bonds because of high inflation. I never sold 😂
Oh no. He’s gone “clickbait-y.” I clicked just to write this. Haha. The thumbnail looks like the other RUclipsr’s. Whomp whomp
Been there, done that several times. It always makes me nervous. My therapist prescribes me a small amount of Xanax when necessary.😊
Very basic, you didn't say anything special, i was waiting for real advices, tricks but all you daid was bonds? And asser allocation?
When a person starts having PHD's, master or Bachelors, you see real human nature. They start to think they know EVERYTHING 😂😂😂
Sounds like you’d prefer “All I Really Need to Know I Learned in Kindergarten” by Robert Fulghum
First truth: Stay out of your box, be it a house, apartment, whatever. People who sit home eating and shitting lead lives as meaningful as that of my neighbor's dogs.
Dow 40000