Dave, I have been retired for almost 2 years. I am about 10 years older than your current self....LOL. I too have invested conservatively, but so far I am generating enough income from cash, bonds, BDCs, and CC funds. In fact excess cash is getting reinvested in some alternatives like closed end funds with CLOs. I personally like the idea of a steady income stream of dividends coming in vs having to face selling any securities to get income. It may not make for a greater longer term return vs. growth equities by comparison, but it sure does benefit me psychologically when I see the dividend distributions fill up my cash account every month.
Great video and good points to remember. The people I used to set up my 529 plan told me 20 years ago to invest in some non- US mutual funds because the US market was over valued relative to the rest of the world. It’s good advice I wish I hadn’t listened to.
Finances aren't the only thing you should be concerned about at retirement. Make sure you have something to occupy your time. 24 hours in a day is a long time!
@@wealthadventuresI am retired from my life long job, but continue to work at a low stress job part time. Small pension and part time income, I continue to live a modest life style with enough time off to enjoy life. The moral of my story, if you're going to retire, make sure you have something to do in retirement!
Extremely close to retirement also using a bucket strategy I love the income part of the portfolio. I plan on using my IRA bucket for that in case there is a little bit of NAV erosion. I want to spend down that bucket a little bit anyway to prevent radical RMDin the future as always thank you for your time and efforts. Really enjoy your videos.
I "retired" at the end of February this year, 2 months before turning 60. My buckets are 2 years expenses in cash, the rest in options. The options are currently generating 3 to 7 % per month, which are being reinvested in option etfs. Having a plan for not only getting to retirement but for getting thru retirement will put you way ahead of most people.
Currently in my early 40s. Semi-retirement probably 5-10 years away. Currently running a blend of dividend growth and pure growth. DGRW, QGRW and SPGP in my taxable account. Want to keep the forced income low due to being in a high tax bracket and getting fleeced for the NII on top of that as well. 401Ks and IRAs are all either pure growth funds or the S&P. Plan to build a high income bucket of QQQI, BALI, SVOL, etc as I get closer to retirement with the goal of establishing an overall portfolio yield of 4-5%. I’ll overwrite the portfolio with options trades to the tune of another 1-2% of yield. No bonds now or ever. But I will have 2-3 years of core expenses in cash set aside. Goal will be to live off the 6-7% of yield the portfolio will produce and then cut that in half when SS kicks in.
I was fortunate to make a nice profit on selling my primary residence home of 20 years last year. At 48 after having experienced a bit of a career crisis/failed business I have been investing into REIT's, BDC's, ETF's-including some covered call ETF's & a few individual dividend aristocrat/king stocks. To be safe I have put aside 40% of my portfolio in a money market with plans to gradually move those funds to some bonds & bond ETF's. Income is a little bit more important to me than growth as I value having freedom to decide what I want to do for work. Your videos have been helpful in adding insight and some things for me to consider during my own due diligence regarding allocations.
Dave, my current self at 74 years old is using SVOL, JEPI, JEPQ and most recently BITO to serve as a source of monthly income sufficent to cover my RMDs. I currently hold VOO, VIG, SCHD, XLV, VXUS, CIBR, and the Windsor fund with Vanguard (can't recall the ticker). I hold between 10-15 stocks including AAPl, MSFT, NVDIA, LILLY, CMG, COST, MRK etc. I devote 5% of my portfolio for speculative plays that I have strong conviction in based upon social arbitrage intel like LUNR and AUR. I keep the rest in the Schwab money market account ready to be deployed based upon strong conviction or used as a safety net if the whole market goes into the tank. My future self plans on starting to give it all away over the next 10-20 years so that as one of my mentors used to say: "I want my last check that I issue to bounce"
As usual--- another clear and concise presentation. I am a federal worker where I have a TSP which is made-up of SPY, Small Cap, International, and Short term Government bonds. I retain 30% in the G-Government bond fund. Move 60% to a brokerage account made up of 35%-VOO, 10%-VXUS, 35%-SCHD, 10%-VGT, 10%-XLK. The remaining 10% is allocated to A ROTH --- Income fund - 50%-JEPI -- 50%-JEPQ. I might take 2% of 10% of the ROTH to invest in options. The 30% government is interest bearing ---although small--- We sleep much better.
@@wealthadventures Actually, Our time frame is 1 year out! We got hooked with SCHD, JEPQ, JEPI through your channel. The biggest issues is trying to figure out the amount we should transition to the Roth before the Tax rate reverts back on Jan 2026. We are thinking at least 50%-- we moved over 15% already and might be able to do 15% for this year's taxes and 20 to 25% in 2025 . We will draw down like a 0-5% over the years depending on any down side of the market. Taking the tax hit in the short-term will allow us the flexibility to better manage our retirement when the RMD hits at 74 or 75. We have no plans to reduce our traditional IRA to zero.
Whatever you do, don't retire unexpectedly (shoved out) in the middle of 2021 and get hit with 2022 slump before you can get your house in order like me. Ugh - still trying to decide to either continue to try to recoup or just give in and go conservative...good video.
I aspire to Scrooge McDuck level wealth in retirement. "Uncle Scrooge McDuck is a quadrillionaire at the least." I figure even if I miss the mark by half, I'm still golden. I like the bucket strategy as well. Retirement accounts in growth/balanced for the next 12 years until RMDs kick in. Taxable accounts in balanced (bonds), self directed dividend stocks/options, and the soup bowl of income ETFs/CEFs to live off between 62 and 72. As always, thank you for your videos. Very helpful as I decided what would go into the soup bowl.
Dave could you run the sequence of return risk with the SAME fund. But use two investors that retire at different dates. IMO this is an apples to apples comparison. I appreciate what you did using QQQ which had a higher CAGR over the duration of drawing down the portfolio
That was just a good example since the CAGR was higher but the results when pulling monthly income produced such different results. If you did the same with QQQ starting 10 years ago, you would be sitting pretty. Portfolio visualizer is free and a great way to test: www.portfoliovisualizer.com/
We are 5-6 yrs out from retiring in our early 50s living off cash and short term investments until we are 59.5. Since that is a bit off we are planning to keep our 59.5 funds until then growth focused. As we approach 55-56 we will start transitioning to be less risky. We haven’t figured that out yet and so much can change between now and then… remember when bonds was a good investment in a 60/40? 😂. Who knows in 6-10 years what will be the best route. We do like the idea of dividend ETFs for their passive income in retirement.
Based off your name it sounds like you have been thinking about it! I assume that if I can afford fixed income, I will have a decent amount in retirement. Stress free income sounds nice assuming the economy holds together.
@@wealthadventures we are 4 years into our journey. We are debt free and saving and investing hard now to be done in 6 years. We wasted a lot of time over spending like many and finally have out act together and are financially healthy now. Took a while to figure out how to do it, but it’s possible we are living proof. Wishing you luck in the market and your health!
Been retired for a few months now. I started setting up multiple accounts at different brokerages a few years back, each one with a different strategy similar to what you are suggesting. For bonds, I have a mix of individual bonds, ETFs and I also put preferred shares into that same pot to help juice the yield of that fixed income portfolio.
My wife retired last year at 61 and I continue to work. We have a mix of individual stocks, ETF's and CD's. We have too much allocated to dividend income for tax purposes, but it is hard to give up. I am hoping to build in my bond position and a large cap fund to balance us out while I work a few more years.
That is an area I could improve upon - Tax efficiency. I have a lot of dividend stocks. Probably not the best for me but I do like building up those positions.
I appreciate you responding to my question about what older Dave would do. We have a few tickers in common. I'm presently pulling 11% out of the market, and growing principal at 5.8%.
@marcalvarado1915 not money market cash. Principal share price appreciation. I don't express"Total Return" I always show dividends and account value / appreciation separately.
@wealthadventures not too much. I have a little more than 20 positions total. By allocation, SPYI 6%, QQQI 5%, JEPQ 4.5%, FEPI 2.7%. Well diversified in other stuff. My life depends on me not screwing this up. Sometimes I think about selling JEPQ and moving that money into something else, not sure what yet.
What about gold and managed futures? If you are looking to diversify a stock and bond portfolio they would probably give you the most bang for your buck.
Lots of folks out there talking about covered calls capping your upside. I guess those are the rookies as they probably do not know about the "silver bullet" to option selling.....the art of "rolling options"! Anyways great video;) #sellcallssellputscollectlotsofpremium
Rolling options can help but if you are rolling because you lost money on your first roll... That is a loss. The second option may provide overall credit but only with more time and risk added. I have a JPM call that is totally wiped out. 130 strike with stock at 200! Ooops. Lol.
25% each JEPI, JEPQ, VOO, QQQM. No selling of shares over 3 year retirement. Not sure if I can escape sequence of events risks. Added shares in 2022 though. Will take SS at 62 so should add even more shares then.
Hi Mike. Sure do: Leaps ruclips.net/video/_8KUbVhl_r0/видео.html ITM Options ruclips.net/video/IDEEpnS1jgw/видео.html ITM Example with a REIT ruclips.net/video/s0Vei3-lwx4/видео.html Good luck! Any questions, just shout!
Very thorough explanation - thank you! I'm 10-12 years out and trying to decide when to shift more towards 60/40. My retirement plan is to shift roughly $1 million into a dividend/income portfolio to supplement pension income, leaving the rest in a 60/40 mix to grow. The process of moving to a more conservative mix is hard to determine and seems to be a more high stakes decision the longer this bull market lasts.
That is about my path as well. At least for today! My bond allocation is still small and I'm still buying stocks/etfs each week. I don't imagine I will scale it up for awhile.
If your current growth holdings are fine for you now, then consider diverting new investment money to increasing dividend growth oriented ETFs for a few years. Perhaps the aggregated dividend payouts would be enough such that you won't need much bonds in the future.
Thank Dave you are truly helpful, knowledgeable and full of humility. I am at your age at this point. Been just in short term bonds till now. Please provide us with your current portfolio allocation. and most importantly do you use stop loss as a major draw down is probably likely before the end of 2025. How do you protect against those major draw downs?
I need to come up with a better plan I think, right now in my 401k I have about 120k invested into the S&P and in my taxable brokerage my top 3 holdings are UNP at 32%( bought through work with a match of 5%) SCHD at 28% and O at 18% I also have SPYI at 8%. After watching this video I don’t feel prepared at all for retirement I am 55 and will have a pension when I retire. I just need to develop more of a plan for my future.
DAVE, I ASSUME ALL OF YOUR BUCKETS/STRATEGIES WRAP AROUND BUY AND HOLD. I HAVE BEEN TRYING TO TREND TRADE STOCKS OUTPERFORMING STOCKS WITH LITTLE LUCK AS I AM FINDING IT VERY DIFFICULT NOT TO MANAGE THE ENTRIES BUT TO MANAGE THE TIMING OF EXITS. FINALLY DO YOU ATTEMPT TO FOCUS ON ANY SECTOR BASED ETFS SUCH AS CONSUMER STAPLES OR DESCRETIONARY? VERY MUCH ENJOY YOUR VIDEOS. THANKS
Hi. I am buy and hold. However, I do sell options against positions. I do like the sector ETFs since it allows me to add when a sector is out of favor. I have a lot of XLV, XLK, and XLE at the moment.
@@wealthadventures INTERESTING THAT WOULD EMPLY YOU ARE SELLING PREMIUM AT RELATIVELY HIGHER RATES GIVEN VOLILITY. MAKES SENSE, BUT ARENT YOU CONCERNED ABOUT TYPICALLY BUYING BELOW MOVING AVGS AND HAVING NO REAL FLOOR / SUPPORT TO THE DOWN SIDE?
@@jeffreytartamella7403 I'm still a buyer at this point with time till I retire. Pull backs are fine. Crashes are not fun but I keep cash on the sidelines and bond positions so I can add if we do have a crash. Buy and hold!😄
buffered ETS's work great for me............they are capped at 15% on the upside and have a 15% buffer on the down side.............why do bonds getting 4-6% when I can do this. It has done well for me the last 4 years in retirement
Just looking for short term? SGOV is a popular option. However, I prefer to just buy them from Fidelity directly. Fee free and yielding about 5.3% at the moment for 3 month t bills.
I’m semi-retired (I have an usual situation). Anyway, could you please tell me your favorite bond fund/ETF? I currently have AGGH and HIGH (thinking of selling) but I’d like one or more. Also, please tell me/us more about IDVO.
I'm on the fence with HIGH as well. Straight bond ETFs that I have been buying are SPHY, SCYB, and HYD (All are high yield junk). LQD for investment grade. IDVO review: ruclips.net/video/lj81VeLFGeQ/видео.html
If crash occurs, What will you sell to live on for 3yrs (until market recovers) ? Sell all equally or sell down bonds . Let’s assume you don’t have enough income without selling something and expected downturn is 3yrs
Read the book "The All-Weather Retirement Portfolio' by Randy L. Thurman, CFP, CPA/PFS. Then decide on your investments and allocation and monitor them. Oh, and you must have a "Margin of Safety" in your portfolio(s) for times when the market swoons so that you can ride out the hysteria.
Currently... I have one account that is similar to the ETF DIVO. I sell calls against some positions to hopefully add some income. I also have an account that is more option focused to generate income. I will likely continue that in retirement. Does that answer your question?
Im 32 and take home 11k a month but i live at my moms. Literally, all my money goes to my broekrage outside of small bills and fun. At this rate i can retire at 40 but idk what to do about a house ...
Dave, I have been retired for almost 2 years. I am about 10 years older than your current self....LOL. I too have invested conservatively, but so far I am generating enough income from cash, bonds, BDCs, and CC funds. In fact excess cash is getting reinvested in some alternatives like closed end funds with CLOs. I personally like the idea of a steady income stream of dividends coming in vs having to face selling any securities to get income. It may not make for a greater longer term return vs. growth equities by comparison, but it sure does benefit me psychologically when I see the dividend distributions fill up my cash account every month.
Nice! Thanks for sharing. Good to hear it is working out. I have not studied CLOs but will take a look.
Do you like ECC ?
Great video and good points to remember. The people I used to set up my 529 plan told me 20 years ago to invest in some non- US mutual funds because the US market was over valued relative to the rest of the world. It’s good advice I wish I hadn’t listened to.
Interesting. World still flocks to the US market. I don't see that changing anytime soon but I do want some international exposure.
Dave is back! Thanks for the video…
Thanks for watching!
Finances aren't the only thing you should be concerned about at retirement. Make sure you have something to occupy your time. 24 hours in a day is a long time!
Certainly! I'm actually in the anti "FIRE" camp. Even when I stop working I will continue to work. Are you retired?
@@wealthadventuresI am retired from my life long job, but continue to work at a low stress job part time. Small pension and part time income, I continue to live a modest life style with enough time off to enjoy life.
The moral of my story, if you're going to retire, make sure you have something to do in retirement!
@@raytailor9251 Nice!
Extremely close to retirement also using a bucket strategy I love the income part of the portfolio. I plan on using my IRA bucket for that in case there is a little bit of NAV erosion. I want to spend down that bucket a little bit anyway to prevent radical RMDin the future as always thank you for your time and efforts. Really enjoy your videos.
Thanks! I do enjoy those monthly distributions. A little extra motivation.
I "retired" at the end of February this year, 2 months before turning 60. My buckets are 2 years expenses in cash, the rest in options. The options are currently generating 3 to 7 % per month, which are being reinvested in option etfs. Having a plan for not only getting to retirement but for getting thru retirement will put you way ahead of most people.
Congrats! Enjoy your pizza!
Currently in my early 40s. Semi-retirement probably 5-10 years away.
Currently running a blend of dividend growth and pure growth. DGRW, QGRW and SPGP in my taxable account. Want to keep the forced income low due to being in a high tax bracket and getting fleeced for the NII on top of that as well. 401Ks and IRAs are all either pure growth funds or the S&P.
Plan to build a high income bucket of QQQI, BALI, SVOL, etc as I get closer to retirement with the goal of establishing an overall portfolio yield of 4-5%. I’ll overwrite the portfolio with options trades to the tune of another 1-2% of yield.
No bonds now or ever. But I will have 2-3 years of core expenses in cash set aside. Goal will be to live off the 6-7% of yield the portfolio will produce and then cut that in half when SS kicks in.
Sounds great! But I'm going to get you to buy at least 1 bond... Somehow.
@@wealthadventures just because of this comment I’m sure inflation will one day get so bad the 10-year will be yielding 12% again!
I was fortunate to make a nice profit on selling my primary residence home of 20 years last year. At 48 after having experienced a bit of a career crisis/failed business I have been investing into REIT's, BDC's, ETF's-including some covered call ETF's & a few individual dividend aristocrat/king stocks. To be safe I have put aside 40% of my portfolio in a money market with plans to gradually move those funds to some bonds & bond ETF's. Income is a little bit more important to me than growth as I value having freedom to decide what I want to do for work. Your videos have been helpful in adding insight and some things for me to consider during my own due diligence regarding allocations.
I still have a large cash position as well. Slowly investing over time.
Dave, my current self at 74 years old is using SVOL, JEPI, JEPQ and most recently BITO to serve as a source of monthly income sufficent to cover my RMDs. I currently hold VOO, VIG, SCHD, XLV, VXUS, CIBR, and the Windsor fund with Vanguard (can't recall the ticker). I hold between 10-15 stocks including AAPl, MSFT, NVDIA, LILLY, CMG, COST, MRK etc. I devote 5% of my portfolio for speculative plays that I have strong conviction in based upon social arbitrage intel like LUNR and AUR. I keep the rest in the Schwab money market account ready to be deployed based upon strong conviction or used as a safety net if the whole market goes into the tank. My future self plans on starting to give it all away over the next 10-20 years so that as one of my mentors used to say: "I want my last check that I issue to bounce"
Ha! Love it. Good luck with that last check.🍻 BITO is an interesting fund.
As usual--- another clear and concise presentation. I am a federal worker where I have a TSP which is made-up of SPY, Small Cap, International, and Short term Government bonds. I retain 30% in the G-Government bond fund. Move 60% to a brokerage account made up of 35%-VOO, 10%-VXUS, 35%-SCHD, 10%-VGT, 10%-XLK. The remaining 10% is allocated to A ROTH --- Income fund - 50%-JEPI -- 50%-JEPQ. I might take 2% of 10% of the ROTH to invest in options. The 30% government is interest bearing ---although small--- We sleep much better.
I like it! Sounds well thought out. Do you still have some years until retirement?
@@wealthadventures Actually, Our time frame is 1 year out! We got hooked with SCHD, JEPQ, JEPI through your channel. The biggest issues is trying to figure out the amount we should transition to the Roth before the Tax rate reverts back on Jan 2026. We are thinking at least 50%-- we moved over 15% already and might be able to do 15% for this year's taxes and 20 to 25% in 2025 . We will draw down like a 0-5% over the years depending on any down side of the market. Taking the tax hit in the short-term will allow us the flexibility to better manage our retirement when the RMD hits at 74 or 75. We have no plans to reduce our traditional IRA to zero.
@@MrAerialsound Almost there...
Whatever you do, don't retire unexpectedly (shoved out) in the middle of 2021 and get hit with 2022 slump before you can get your house in order like me. Ugh - still trying to decide to either continue to try to recoup or just give in and go conservative...good video.
I doubt I will ever fully retire.
I aspire to Scrooge McDuck level wealth in retirement. "Uncle Scrooge McDuck is a quadrillionaire at the least." I figure even if I miss the mark by half, I'm still golden. I like the bucket strategy as well. Retirement accounts in growth/balanced for the next 12 years until RMDs kick in. Taxable accounts in balanced (bonds), self directed dividend stocks/options, and the soup bowl of income ETFs/CEFs to live off between 62 and 72. As always, thank you for your videos. Very helpful as I decided what would go into the soup bowl.
Nice Bruce! Soup bowl strategy can't be beaten. Lol.
Great video, thank you Dave : )💯
Thanks!
Dave could you run the sequence of return risk with the SAME fund. But use two investors that retire at different dates. IMO this is an apples to apples comparison. I appreciate what you did using QQQ which had a higher CAGR over the duration of drawing down the portfolio
That was just a good example since the CAGR was higher but the results when pulling monthly income produced such different results. If you did the same with QQQ starting 10 years ago, you would be sitting pretty. Portfolio visualizer is free and a great way to test:
www.portfoliovisualizer.com/
I'm 53 and plan to retire in 5 years. I'm mainly in dividend growth, t-bill ETFs and a little covered calls.
Sounds good Hans. It will be here before you know it.
We are 5-6 yrs out from retiring in our early 50s living off cash and short term investments until we are 59.5. Since that is a bit off we are planning to keep our 59.5 funds until then growth focused. As we approach 55-56 we will start transitioning to be less risky. We haven’t figured that out yet and so much can change between now and then… remember when bonds was a good investment in a 60/40? 😂. Who knows in 6-10 years what will be the best route. We do like the idea of dividend ETFs for their passive income in retirement.
Based off your name it sounds like you have been thinking about it! I assume that if I can afford fixed income, I will have a decent amount in retirement. Stress free income sounds nice assuming the economy holds together.
@@wealthadventures we are 4 years into our journey. We are debt free and saving and investing hard now to be done in 6 years. We wasted a lot of time over spending like many and finally have out act together and are financially healthy now. Took a while to figure out how to do it, but it’s possible we are living proof. Wishing you luck in the market and your health!
@@OurRetireEarlyJourney Awesome! Congrats and cheers.🍻
Been retired for a few months now. I started setting up multiple accounts at different brokerages a few years back, each one with a different strategy similar to what you are suggesting. For bonds, I have a mix of individual bonds, ETFs and I also put preferred shares into that same pot to help juice the yield of that fixed income portfolio.
Nice Peter and congrats on retirement. Good so far?
@@wealthadventures Thanks. So far so good. It certainly helps that the market keeps going up though. Ask me again when there is a 50% crash - lol.
@@peterholmes2089 Will do!
My wife retired last year at 61 and I continue to work. We have a mix of individual stocks, ETF's and CD's. We have too much allocated to dividend income for tax purposes, but it is hard to give up. I am hoping to build in my bond position and a large cap fund to balance us out while I work a few more years.
That is an area I could improve upon - Tax efficiency. I have a lot of dividend stocks. Probably not the best for me but I do like building up those positions.
I’m not a Ramsey fan either…great video. Subscribed, What software did you use for that sequence of withdrawal chart?
That is from:
www.portfoliovisualizer.com/
Free to signup. They have recently updated it so it looks a little different.
@@wealthadventures thank you!
I found this video to be quite educational
Good and useful info as we will all hopefully be easing into retirement someday.
BTW your retirement job should be a comedian.
Thanks! Not sure I could handle the pressure on stage. Better as a heckler!
I appreciate you responding to my question about what older Dave would do. We have a few tickers in common. I'm presently pulling 11% out of the market, and growing principal at 5.8%.
Where are you getting 5.8% out of the market? I thought 5.1% from the Schwab money market was pretty good but 5.8% would be better!
@marcalvarado1915 not money market cash. Principal share price appreciation. I don't express"Total Return" I always show dividends and account value / appreciation separately.
Nice! Sounds like you have several of the heavy CC distribution ETFs?
@wealthadventures not too much. I have a little more than 20 positions total. By allocation, SPYI 6%, QQQI 5%, JEPQ 4.5%, FEPI 2.7%. Well diversified in other stuff. My life depends on me not screwing this up. Sometimes I think about selling JEPQ and moving that money into something else, not sure what yet.
What about gold and managed futures? If you are looking to diversify a stock and bond portfolio they would probably give you the most bang for your buck.
Perhaps! I'm pretty diversified. Sold my gold.
Lots of folks out there talking about covered calls capping your upside. I guess those are the rookies as they probably do not know about the "silver bullet" to option selling.....the art of "rolling options"! Anyways great video;) #sellcallssellputscollectlotsofpremium
Sometimes you just can't roll up and out fast enough
Rolling options can help but if you are rolling because you lost money on your first roll... That is a loss. The second option may provide overall credit but only with more time and risk added. I have a JPM call that is totally wiped out. 130 strike with stock at 200! Ooops. Lol.
Nice video..has anyone ever said that you’re voice is almost identical to Dennis millers?
Lol. No. That is a first but I will take it. I'm jealous of his vocabulary.
25% each JEPI, JEPQ, VOO, QQQM. No selling of shares over 3 year retirement. Not sure if I can escape sequence of events risks. Added shares in 2022 though. Will take SS at 62 so should add even more shares then.
Why not enjoy your retirement and then What's left over invest back into JEPQ & JEPI. Continue to build your passive income. That's what I'm doing
@@jordanmike4852 I add to JEPI and JEPQ each month with leftovers. Not comfortable going 100% CC funds.
Interesting idea. Will be cool to backtest.
Dave, what's your thought on holding AGGH now that Fidelity has announced they will charge $100 for buy orders placed for Simplify funds?
I asked the right people... They are working with Fidelity to get it figured out before the deadline to avoid any additional expenses for investors.
Oh man the dad jokes…I actually get them 😂
No stealing.
Dave great video. Do you have a video on leaps and itms?
Hi Mike. Sure do:
Leaps
ruclips.net/video/_8KUbVhl_r0/видео.html
ITM Options
ruclips.net/video/IDEEpnS1jgw/видео.html
ITM Example with a REIT
ruclips.net/video/s0Vei3-lwx4/видео.html
Good luck! Any questions, just shout!
Very thorough explanation - thank you! I'm 10-12 years out and trying to decide when to shift more towards 60/40. My retirement plan is to shift roughly $1 million into a dividend/income portfolio to supplement pension income, leaving the rest in a 60/40 mix to grow. The process of moving to a more conservative mix is hard to determine and seems to be a more high stakes decision the longer this bull market lasts.
That is about my path as well. At least for today! My bond allocation is still small and I'm still buying stocks/etfs each week. I don't imagine I will scale it up for awhile.
If your current growth holdings are fine for you now, then consider diverting new investment money to increasing dividend growth oriented ETFs for a few years. Perhaps the aggregated dividend payouts would be enough such that you won't need much bonds in the future.
What are your thoughts on HPYT which is a covered call etf on US Treasuries paying north of 10% yield, for a portion of your fixed income allocation?
Thank Dave you are truly helpful, knowledgeable and full of humility. I am at your age at this point. Been just in short term bonds till now. Please provide us with your current portfolio allocation. and most importantly do you use stop loss as a major draw down is probably likely before the end of 2025. How do you protect against those major draw downs?
I need to come up with a better plan I think, right now in my 401k I have about 120k invested into the S&P and in my taxable brokerage my top 3 holdings are UNP at 32%( bought through work with a match of 5%) SCHD at 28% and O at 18% I also have SPYI at 8%. After watching this video I don’t feel prepared at all for retirement I am 55 and will have a pension when I retire. I just need to develop more of a plan for my future.
A nice secure pension can be a game changer and it look like you have some good products as well
@@wealthadventures I hope so I have 10 years left until I can retire from my job
DAVE, I ASSUME ALL OF YOUR BUCKETS/STRATEGIES WRAP AROUND BUY AND HOLD. I HAVE BEEN TRYING TO TREND TRADE STOCKS OUTPERFORMING STOCKS WITH LITTLE LUCK AS I AM FINDING IT VERY DIFFICULT NOT TO MANAGE THE ENTRIES BUT TO MANAGE THE TIMING OF EXITS. FINALLY DO YOU ATTEMPT TO FOCUS ON ANY SECTOR BASED ETFS SUCH AS CONSUMER STAPLES OR DESCRETIONARY?
VERY MUCH ENJOY YOUR VIDEOS. THANKS
Hi. I am buy and hold. However, I do sell options against positions. I do like the sector ETFs since it allows me to add when a sector is out of favor. I have a lot of XLV, XLK, and XLE at the moment.
@@wealthadventures INTERESTING THAT WOULD EMPLY YOU ARE SELLING PREMIUM AT RELATIVELY HIGHER RATES GIVEN VOLILITY. MAKES SENSE, BUT ARENT YOU CONCERNED ABOUT TYPICALLY BUYING BELOW MOVING AVGS AND HAVING NO REAL FLOOR / SUPPORT TO THE DOWN SIDE?
@@jeffreytartamella7403 I'm still a buyer at this point with time till I retire. Pull backs are fine. Crashes are not fun but I keep cash on the sidelines and bond positions so I can add if we do have a crash. Buy and hold!😄
Dave, what about real estate? I thought I remember you owning some properties. Don’t forget that rental income.
Yes! Still have my real estate and love it. Not sure if they will be part of my retirement plan... On the fence.
buffered ETS's work great for me............they are capped at 15% on the upside and have a 15% buffer on the down side.............why do bonds getting 4-6% when I can do this. It has done well for me the last 4 years in retirement
Interesting... Do you have a couple favorites?
nice video.........well thought out
Thank you!
In my country, the guide is about 3.5% (above inflation) for doing cash flow planning. Dave Ramsey talking 9-12 is crazy and too risky.
I agree!
what do you think of someone adding a small portion of emerging market bonds to their bond portfolio?
I personally like that idea! More diversification the better for the typical investor IMO.
Great video...I'm retiring soon 3 months baby! Any recommendations for t bill etf...I love schd...roth total vdigx
You could look at SGOV and TLT.
@@marcalvarado1915 thanks
Just looking for short term? SGOV is a popular option. However, I prefer to just buy them from Fidelity directly. Fee free and yielding about 5.3% at the moment for 3 month t bills.
@wealthadventures thanks appreciate it.. videos very informative 👌
Thanks
I’m semi-retired (I have an usual situation). Anyway, could you please tell me your favorite bond fund/ETF? I currently have AGGH and HIGH (thinking of selling) but I’d like one or more. Also, please tell me/us more about IDVO.
I'm on the fence with HIGH as well. Straight bond ETFs that I have been buying are SPHY, SCYB, and HYD (All are high yield junk). LQD for investment grade. IDVO review:
ruclips.net/video/lj81VeLFGeQ/видео.html
If crash occurs, What will you sell to live on for 3yrs (until market recovers) ? Sell all equally or sell down bonds . Let’s assume you don’t have enough income without selling something and expected downturn is 3yrs
I would likely re-balance and pull out what I needed... so move bonds into stocks/etfs in that scenario.
Read the book "The All-Weather Retirement Portfolio' by Randy L. Thurman, CFP, CPA/PFS. Then decide on your investments and allocation and monitor them. Oh, and you must have a "Margin of Safety" in your portfolio(s) for times when the market swoons so that you can ride out the hysteria.
Thanks Randy! I will check the book out for sure. Adding to the Audible list.
is it correct to assume that any equities used in the "options allocation" are incremental to equities included in other allocation buckets? Thanks
Currently... I have one account that is similar to the ETF DIVO. I sell calls against some positions to hopefully add some income. I also have an account that is more option focused to generate income. I will likely continue that in retirement. Does that answer your question?
@@wealthadventures yes ...thanks
Thanks
Was wondering if you have discussed QDPL and what your thoughts are on it with it paying out such a high dividend... doesn't seem sustainable. Thanks
I started singing weird science, the wife looking at me, like I'm crazy.
That may be lost on those under 50 but I still remember seeing it in the movie theater.
@@wealthadventures I'm still under 50 man!
@@NetGhost420 But an old soul. Lol.
Good video
Thanks!
Wow. You have friends with $10M nice.
You need that special someone in your life that will buy the expensive beer and owns a boat.
Can you review QDTE and XDTE?
I will take a look. That's why I have this channel... So you guys can find all these unique funds for me!
That’s a lot of fees no? What percentage would that be?
Fees on what product? Some are relatively high compared to others.
I found this video to be quite informative.
Thank you so much. Olive Oil here Popeye ran off with a thong girl and I am needing a job.
Conservative? PRCFX
Is that your bond mutual fund preference?
Im 32 and take home 11k a month but i live at my moms. Literally, all my money goes to my broekrage outside of small bills and fun. At this rate i can retire at 40 but idk what to do about a house ...
Well at that rate you should be able to buy something soon. Where in the country are you?
Retirement advisor? I don't think so. You probably know more than him / her!
I'm passing this along to all my FA friends.
Oingo Boingo
Ha! So under appreciated.