Why Retirees Need a Balanced Portfolio

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Күн бұрын

Пікірлер: 38

@Jeanrussio Жыл бұрын

There is no cookie cutter answer to your question. Nobody likes debt, especially in retirement but paying off a mortgage @ 4% APR vs long term investment potential is generally not the best option. All depends on your personal situation of course.

@MimaLopez-jt4vq Жыл бұрын

I'm from India but I reside Australia and I have been Investing and earning massively with the help of Mrs Kayla, all thanks to her.

@Trevoremp Жыл бұрын

I turned over $2m in the past 4 years despite the rough turns, guess how much capital was invested? 270k or less. I am fortunate to work with Kayla I was part of the Gamestop Saga under her guidance

@Trevoremp Жыл бұрын

Das stimmt, wir sind nur noch wenige Schritte davon entfernt, Wohlstand anzuhäufen. Ich kenne viele Menschen, die sowohl durch den Dotcom-Crash als auch durch den Crash von 2008 ein Vermögen gemacht haben, und ich habe nach ähnlichen Möglichkeiten in diesem aktuellen Markt gesucht. Könnte dies ein Coach sein, der Sie anleitet und Ihnen hilft?

@PJBHolden 7 ай бұрын

Kayla blows

@gnoekus 2 ай бұрын

Thank you so much Madam Benz! Learning and benefiting so much. Hugs.

@jec1ny Жыл бұрын

I'm not retired but probably not far off. When I get there, I expect to keep around three years anticipated living expenses in cash (mostly) with a smallish reserve in gold. The rest will be in a two-fund portfolio with VWIAX as my core position (65-75%) and VT making up the balance. The dividends will be set to auto reinvest. As of right now I plan to limit my expenditures (less emergencies) to roughly what I am getting in dividend payments plus maybe 1% if needed. This will be drawn from the cash. Rebalancing will occur as necessary with an eye on not letting my cash reserves drop below two years of expected living expenses.

@MountainManFred Жыл бұрын

Good presentation... I'd like to see again..from you.. how a pension and SSN play into this.. Again, great presentation!

@jdavis6650 Жыл бұрын

The chart shown at 3:00 is absolutely incorrect. Per the chart Treasury bills yield 20.6 %. In what alternate universe are you investing in? Over the past 20 years the largest bond ETF in the world (ticker BND) has delivered an annual return (after inflation) of 0.45 %. Add higher taxes associated with bond earnings compared to equities and you are probably losing money. When a financial research company makes mathematical errors I lose confidence and respect in their abilities. I expect more of Morningstar.

@george6977 Жыл бұрын

At 2:47 what are the annual expected returns by asset class? The figures shown seem nonsensical. Also, 19.06, 15.81, 20.60 and 24.71 appear twice. What's the probability these figures are accurate?

@dbclower Жыл бұрын

It appears that, for Bonds and Cash numbers, someone transposed Expected Return and Standard Deviation columns. They need a better proof reader...

@george6977 Жыл бұрын

@dbclower Thanks, for pointing that out. The returns for large and small value are surprisingly high. It would have been nice to know the source, and are these expected annual returns over the next 10 years? Nominal or real? Presumably nominal.

@albert1558 Жыл бұрын

Thank you Great information

@jasonjstdr Жыл бұрын

100% in S&P 500 index fund with 3 years income in cash, so if market crashes, you can wait for 3 years before selling stocks.

@janesmith506 5 ай бұрын

Thanks for your helpful insights.

@bobdrawbaugh4207 Жыл бұрын

But, in retirement Harold didn’t take his on advice. In a recent interview he stated he’s in 70% cash and 30% stocks. He must have not had confidence in his on research. It’s a little different when it’s your money.

@fredatlas4396 5 ай бұрын

He must have had a lot of money in his retirement pot, so I guess he didn't need to take much risk

@jimgrant1776 7 ай бұрын

Ms. Benz uses the table of numbers that first appears at the 1:44 time mark in the video to substantiate her recommendation that a balanced portfolio is best. I scan down the each column in the table and conclude, yes, she may be right, but the differences in a column are insignificant. - - - Length of retirement is a far, far, more important factor.

@ArthurDentZaphodBeeb Жыл бұрын

'Data as of 2019'. So you 'forgot' 2022 which was the worst year in bond history? That has to (dramatically?) affect results. We just witnessed a 40 year bull market for bonds, so this old data is highly skewed to favor bonds. For that reason, I avoided bonds like the plague, fully expecting bonds to be crushed when interest rates rose from absurdly-low levels. If long rates rise (think 6% might pique my interest) I'd be interested as I do expect inflation (and rates) to moderate somewhat, so might get some appreciation as well as yield. That said, the market doesn't think inflation is sticky and long bonds aren't offering enough yield to be interesting, so I'll likely remain all-equities plus about 1-2 yrs cash (in short term treasuries) that can be deployed in bear markets (like 2022).

@BubbaBlackmon Жыл бұрын

Vanguard long term investment grade has current yield of 5.25% and average credit of A.

@ArthurDentZaphodBeeb Жыл бұрын

@@BubbaBlackmon Thanks. Since fund inception in 2000 it's down 5.68% vs S&P that's up ~300%. That's why I've avoided fixed income. I'd only consider treasuries for fixed income - current ~4% isn't attractive to me. I'd rather take the volatility and get far-higher returns.

@ivanvarykino8202 9 ай бұрын

I'm starting to consider this same approach. I need simplicity in retirement. Several years cash and near 100% equities seems that the inflationary hit on cash out of market could be compensated by the higher equity gains over time. Constant management and 2nd guessing is just not a fun vision for retirement. Bonds look so bad, why not just near 100% equities and extra cash.

@redchevy3307 3 ай бұрын

Still Waiting to see a chart of the returns of the Bucket strategy compared to holding Vanguard's Wellington or any balanced mutual fund over time.

@firmsoil7861 Жыл бұрын

Nice presentation, thanks. Social Security looks absent.

@BangNguyen-ux4ie Ай бұрын

If one's pensions and social security are enough to cover all living expenses, how much would he/she need in Bucket 1, if at all?

@johnbarnhart7174 6 ай бұрын

Christine always provides great info. However, the chart of 1 year std deviation at the 3 minute mark of the video seems irrelevant. How about 5 or 10 or 20 yr data on returns, std deviations, etc. as that is more relevant to retirees ? Note the 3-10 yr holding period for Bucket 2 (bonds) described at the 4 minute mark.

@rickdunn3883 3 ай бұрын

Interesting.

@goldenbrown9447 7 ай бұрын

Great video!!

@celestialfix Жыл бұрын

Could Christine sometime explain to us how we can convert our other income from SS, annuities, pensions into “synthetic bond” values that could count as part of the fixed income allocation? Do we need Wade Pfau to tell us how to do that?

@amerqazi 7 ай бұрын

Does the 3 bucket portfolio apply to the retirement portion or non-retirement portion of the entire portfolio?

@Jeanrussio Жыл бұрын

.I retired last month. Having a bucket system really helps me remain calm during the recent volatile market, the only problem is I still have over $1 million of mortgage debt. I can easily get rid of it if I sold some liquid assets. Do you think it's better to prioritize paying down the mortgage or keep my money working in the financial markets?