UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: rayvt Big gold star, 5000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76420  
Subject: Re: ? re: retirement portfolio Date: 8/6/1997 3:02 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0

<< (re: post-retirement allocation of investments)

1) What do you think of the overall plan?

2) Is it wise rather than foolish to have $400 of the $600 in mutual funds?

3) Is it wise or foolish to even consider the Montag and Caldwell fund?

4) Should the $400 currently planned for the money market be better placed,

like a bond fund? If so, which one or ones?

Thanks

madcitylen

>>



Peter Lynch wrote an article (I got it from the WEB, but don't have the URL handy--maybe off of the Vanguard or Magellan site) discussing just this.

They did a lot of number crunching, and decided that if you invest in something like S&P500, and withdraw no more than 8% a year, you'll never run out of money. If you withdraw 10%, there is a very small chance that you'll eventually run out. He also said that being fully invested (diversified index) is better than being split between stocks & bonds.



As far a funds: From what I see, the O'Shaughnessey Cornerstone funds would be a better place than S&P500. (See "What Works on Wall Street".) I don't know anything about Montag and Caldwell. O'sh is back-tested, and has very mechanical screens, much like the Foolish UV and UG portfolios. With exactly 100 stocks selected, and all rebalanced once per year, you are getting pretty good diversity. Average return, standard deviation, and Sharpe ratio are all quite good.



MoneyMarketFund vs. Bond Fund: If the purpose if this is to keep some money in cash (or near-cash), then a Money Market qualifies, but a bond fund does not.



If you want, you can invest some of your money with the "First National Bank of Ray"



Regards,

Ray
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
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.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Advertisement