Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next
Author: SloanT Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5076  
Subject: Re: Estimating future needs Date: 8/8/2003 5:15 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
FMO:For those living entirely off their assets, a portfolio composed of primarily the S&P 500 and U.S. bonds is suicidal in my opinion. It is not diversified (being 100% in large cap U.S. stocks and bonds, whose price movements are highly correlated) and the volatility will have you wetting your pants and making moves which are not in your best interests. This approach also requires you to sell your seed corn due to current high valuations and low yields. Any approach dependent on the liquidation of principle is dangerous IMO.

I think you are painting stocks with the same broad strokes that are so irritating when they are applied to real estate (which is more often the case on TMF). Any investment, improperly managed, can turn into a nightmare.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next


Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Macro Economics

Implications of the Ballad of Ted Plotz
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.