Stock Market

[shaz]

Good ideas so far but I figured cattlemen were pretty money savvy anyway.
+1 Vanguard funds
Business as usual on the 401K..

What to buy?
Cows, land and maybe some tax free municipal bonds. I'm 50yrs old though

 

[Son of Butch]

I own 8 vanguard mutual funds. In hindsight I would have been better off putting it all in the Health Care fund 5-6 years ago and just let it ride. I try to be a conservative investor and chose 8 funds for diversity to try to limit my risk.
But even so my current asset mix is 80% stocks and 20% bonds which many would say is not a conservative mix.
Wellesley Funds are made up of 2/3 bonds 1/3 stocks. Wellington Funds are 1/3 bonds 2/3 stocks other 4 are 100%
stocks. I know many have done better during this bull market, but I'm happy with my 5 year average.
Current funds owned from highest % of my portfolio to lowest.

Total Stock Index Fund 6.1% ytd up 21.17% in last 12 months with 15.55% 5 year average
Wellesly Income Fund 1.08% ytd 10.2% 1 yr return 7.31% 5 yr
Wellington Fund 3.49% ytd 14.72% 1 yr 10.86% 5 yr average

Global Minimum Volatility 3.79 ytd 15.93 1 yr
Health Care Fund 6.45 ytd 19.61 1 yr and 17.68% 5 year average
High Dividend Yield 4.66 ytd 16.37 1yr 14.99 5 yr

Global Wellington Fund up 5.55% since purchasing 11/1/17
Global Wellesley Fund up 2.3% since purchasing 11/1/17

2 Funds that I'm considering buying to move some of my TSIF holdings into come spring are:
R.E.I.T. -2.88% ytd 4.94% 1 yr 9.24% 5 yr 7.65% 10 yr average
Precious Metals & Mining 1.03% ytd 13.75% 1 yr -7.02% 5 yr and -6.6% 10 yr average

Money Market Fund is the safest, but only pays 0.25% per year and that doesn't even keep up with inflation.

 

[bird dog]

Diversifying to broadly will only result in average performance most of the time. An all in one fund might do the same but if your like me, it ain't near as fun. My Roth IRA and 401B retirement accounts are invested similar to yours. All Vanguard funds
35% in common stocks and funds
20% short term bond fund
20% Healthcare fund
20% Energy fund
5 % precious metal fund.

I would like to switch more into bonds to rebalance the accounts but with interest rates expected to continue rising, they can be money losers instead of a safe harbor.

 

[boondocks]

I've spent the majority of my career in activities relating to investing in the publicly traded markets and private investments.

Use this opportunity to strategically rebalance between large and small caps ... value and growth ... domestic and international ... as well as rebalance between equities and fixed income (treasuries, corporates (high yield and investment grade), municipals, and developed sovereign debt) ... and publicly traded securities and private commodities (real estate, oil, timber, etc) and private companies.

If all you have is enough to do some equities, find a diversified low cost ETF that makes sense to you.

Do us a solid, WC, and send a batsignal on the day we all need to jump put immediately? :lol:

 

[Stocker Steve]

Up and down.
A portfolio of negatively correlated assets.
Yes.

 

[WalnutCrest]

The danger of getting out is not being able to get back in. If you are over 60, then you might want to reallocate to reduce volatility.

No one can time the market. It just does not work that way.

Wrong.

Care to have me introduce you to people who've made a living day trading a long list of markets going back over forty years?

Now, if your point is that most people can't do it, then sure.

But, to say no one can is not accurate.

 

[WalnutCrest]

I've spent the majority of my career in activities relating to investing in the publicly traded markets and private investments.

Use this opportunity to strategically rebalance between large and small caps ... value and growth ... domestic and international ... as well as rebalance between equities and fixed income (treasuries, corporates (high yield and investment grade), municipals, and developed sovereign debt) ... and publicly traded securities and private commodities (real estate, oil, timber, etc) and private companies.

If all you have is enough to do some equities, find a diversified low cost ETF that makes sense to you.

Do us a solid, WC, and send a batsignal on the day we all need to jump put immediately? :lol:

No promises, but I may weigh in from time to time, re: this idea.

:tiphat:

PS -- If you're not comfortable with how you sleep at night, do something before you can't sleep at all at night.

 

[pricefarm]

We have a 401k at work. It's not to bad I put in 6% and the company puts in 9%. I could put in more put 9% is the maximum the company will give. I like to invest in things that I have some control over and understand. I know I really don't have much control over the cattle market but that's more of a hobby. I like real estate. People will always need somewhere to live and it seems like around here more and more people would rather rent than buy a place of there own.

 

[Bright Raven]

The danger of getting out is not being able to get back in. If you are over 60, then you might want to reallocate to reduce volatility.

No one can time the market. It just does not work that way.

Wrong.

Care to have me introduce you to people who've made a living day trading a long list of markets going back over forty years?

Now, if your point is that most people can't do it, then sure.

But, to say no one can is not accurate.

Touche!

 

[Stocker Steve]

There was a movement started some years ago called "Slow Money". Check it out. Basic theme is to place 50% of your investments "locally."

It is pretty amazing how the financial market trends have diverged from the main street businesses, and people have piled up money they have no possible use for. Sad.

 

[Grundy53]

Following along. When it comes to investing I really like what Dave Ramsey has to say.

 

[JWBrahman]

No one can time the market. It just does not work that way.

Well, Vladimir Putin jumped into the stock market right after Edward Snowden gave him all that data. Fast Forward: Vladimir Putin is the world's richest man with the majority of his wealth in the US stock market.

Perfect timing?

Or did Putin tell the elites he was going to blow the whole septic tank up unless they let him in on the hustle?

 

[Hunter]

We have a 401k at work. It's not to bad I put in 6% and the company puts in 9%. I could put in more put 9% is the maximum the company will give. I like to invest in things that I have some control over and understand. I know I really don't have much control over the cattle market but that's more of a hobby. I like real estate. People will always need somewhere to live and it seems like around here more and more people would rather rent than buy a place of there own.

I would say that is very good. Mine will match 0.5% for every 1% but only up to 8%.
In other words I put in 8% and they put in 4%. At least that is better than what it was and free money is always good.

 

[WalnutCrest]

The danger of getting out is not being able to get back in. If you are over 60, then you might want to reallocate to reduce volatility.

No one can time the market. It just does not work that way.

Wrong.

Care to have me introduce you to people who've made a living day trading a long list of markets going back over forty years?

Now, if your point is that most people can't do it, then sure.

But, to say no one can is not accurate.

Touche!

And following up even more ...

If you get out you can always get back in.

Depending on how long you wait to hey back in (1 second, 1 minute, 1 hour, 1 day, 1 week, 1 month, 1 year, 1 decade), the prices and overall economy may change a bit (or a lot) ... but do not lie to yourself that you can't do something that's as easy as opening an account and clicking the mouse a few times.

 

[1982vett]

We have a 401k at work. It's not to bad I put in 6% and the company puts in 9%. I could put in more put 9% is the maximum the company will give. I like to invest in things that I have some control over and understand. I know I really don't have much control over the cattle market but that's more of a hobby. I like real estate. People will always need somewhere to live and it seems like around here more and more people would rather rent than buy a place of there own.

I would say that is very good. Mine will match 0.5% for every 1% but only up to 8%.
In other words I put in 8% and they put in 4%. At least that is better than what it was and free money is always good.

Funny...seems I had to work for my company match. :nod:

 

[Hunter]

They don't have to match a dime going into your 401K.

 

[boondocks]

They don't have to match a dime going into your 401K.

"They" don't have to but "they" only do it for employees. Seems to be tied to one's work, then...Often a formal part of compensation package.

 

[Cross-7]

So how long do we ride this gravy train before we abandon ship ?

 

[boondocks]

So how long do we ride this gravy train before we abandon ship ?

Game of chicken at this point.
Buk buk buk
(we are mixing the metaphors :lol: )

 

[Stocker Steve]

So how long do we ride this gravy train before we abandon ship ?

Most traders - - Including the computers - - are momentum traders. So they usually rotate from hot sector to hot sector till there is a big down turn. Then they watch a lot of net worth evaporate.

If you are not greedy, and you actually have a use for some of the money, then you need to take some winning off the table periodically. Ya, I know, this is a gambling analogy, and you want to let it all ride since you are a fail proof market timer. I am not. :dunce:

So you should have sold some during this run up - - I do this "rebalancing" at least annually - - then paid Uncle Sam some capital gains tax, given some to your church/charity, and then bought a bull or a truck or some productive pasture with alot of deer in it. Hire your kids or grandkids to build fence, and make sure you also get something nice for your significant other, like a new rifle or a trip to the Rockies or both. She/he will think you are a genius ;-)

The mortality rate is 100% in the end. So take care of you and yours during this journey.