Investing for beginners

[California]

This article says a portfolio of domestic and international stocks will outperform a 'balanced' (stocks, bonds) or target-based strategy, over a long horizon. Interesting, but I think this deserves more research before relying on it.

At any rate, this approach has worked well for me. Using broad-market mutual funds, not picking individual stocks. That is best left to the pros.

Throw away those target-date funds, and don't hold bonds at all, says this daring new research

So much for the 60/40 portfolio. A new research paper says investors are far better off solely in stocks, then trying to maintain a balanced portfolio.

www.marketwatch.com

 

[ultrarunner]

This article says a portfolio of domestic and international stocks will outperform a 'balanced' (stocks, bonds) or target-based strategy, over a long horizon. Interesting, but I think this deserves more research before relying on it.

At any rate, this approach has worked well for me. Using broad-market mutual funds, not picking individual stocks. That is best left to the pros.

Throw away those target-date funds, and don't hold bonds at all, says this daring new research

So much for the 60/40 portfolio. A new research paper says investors are far better off solely in stocks, then trying to maintain a balanced portfolio.

www.marketwatch.com

Target Date is the Corp Plan.

The older you are the more bonds in your fund.

There are a few other choices like International, Small and Large Cap and Real Estate Fund.

 

[kenmac]

This article says a portfolio of domestic and international stocks will outperform a 'balanced' (stocks, bonds) or target-based strategy, over a long horizon. Interesting, but I think this deserves more research before relying on it.

At any rate, this approach has worked well for me. Using broad-market mutual funds, not picking individual stocks. That is best left to the pros.

I have a mix of mutual funds, single stocks, and many private equity investments that have worked well for me.
If I were a beginner, I would probably just stick with good growth mutual funds

 

[dmccarty]

We still have some small amount in European and Pacific funds but no longer add money to them. These funds used to go up in value when US funds went down in value, and vice versa, so it was a good balance. However, for a decade or more, the European and Pacific funds we have money in have not really gone up in value. They just kinda sit there. I stopped investing new money and have kept the funds though I think about moving the money to a US based fund...

I think what is happening is the Europe and Asia just are not growing like US companies for a variety of reasons. Given their loss of population, which is going to continue and speed up, I suspect this is going to be their new normal.

 

[CloverKnollFarms]

Active investors rarely outperform an index fund. You can... But most people just chase returns and suffer from FOMO

 

[MoKelly]

Active investors rarely outperform an index fund. You can... But most people just chase returns and suffer from FOMO

Yes!

 

[California]

How long will a million $ in retirement savings last?

Source, discussion.

 

[ultrarunner]

How long will a million $ in retirement savings last?

Source, discussion.

Not long with high inflation..

 

[CloverKnollFarms]

Depends. Are you debt free? What's your lifestyle like? I mean, I can live on $30k/yr easily. 4% of $1m is $40k. That would account for inflation. I'd likely never touch the principle. Hell if you were collecting SS, you'd be buying Cuban cigars on the regular

 

[ultrarunner]

Don't overlook taxes if applicable?

In 1960 a new tract home here cost 15k

Sixty years later those 60 year old tract homes were selling for 900k

Of course the person buying that 900k home would now pay 15k property tax annually... exactly what the place sold for new!

Countries continue to experience wild inflation around the world... worse case the money isn't worth the paper it's printed on... Germany, Venezuela come to mind.