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https://www.thinkadvisor.com/2018/11/27/john-bogle-rias-are-...

What’s in your personal investment portfolio?

I’m 50% bonds — 50% Vanguard bond funds — and 50% stocks. Half the time I wonder why I have so much in stocks; the other half, I wonder why I have so little.


What’s your advice to investors in this very volatile market? I bet it’s to stay the course!

Stay the course. What seems different about this time of extreme volatility is the rapid reversals: first up 1% or 2%, then down 1% or 2%, then up again. When stocks go way up, human emotion makes people excited about buying more; when stocks are way down, they’re frightened into buying less or selling out. Buying at the highs and selling at the lows isn’t an easy way to make money on your retirement plan.
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JB quoting Bogle:

"'I’m 50% bonds — 50% Vanguard bond funds — and 50% stocks. Half the time I wonder why I have so much in stocks; the other half, I wonder why I have so little.'"

I have a higher stock allocation than Jack Bogle, but the psychological component describes me pretty well. I undripped my stocks and bonds in October 2017 and have been building up my cash allocation leading up to my retirement. Every time the markets rocket upward, my port rises by about half as much as the markets and I wish I had more equities. Every time the markets slump, my port falls by about half as much as the markets and I wish I had accumulated more cash.

Bogle's advice - stay the course - sounds so easy on the face of it.
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"I have a higher stock allocation than Jack Bogle, but the psychological component describes me pretty well. I undripped my stocks and bonds in October 2017 and have been building up my cash allocation leading up to my retirement. Every time the markets rocket upward, my port rises by about half as much as the markets and I wish I had more equities. Every time the markets slump, my port falls by about half as much as the markets and I wish I had accumulated more cash. "

Greed is what does a lot of investors in.....they go whole hog into equities when the market is climbing , climbing....... and fail to unload when the market is falling, falling....then unload at the bottom of a dip........

Greed does a lot of folks into serious trouble....and an unwillingness to take a 'loss'......

My IRA is 50/50 and I'm quite happy with what it has done. Haven't had the 11% gains.....but sleep well at night.....and the bonds/REITS/GNMAs spin off income all the time. Same for the dividend payers......

Going to be an interesting year...... trimmed the stocks a bit last summer to replenish the cash account that funds the RMDs so don't have to sell anything for at least 8 months......the interest/dividends pay 2/3rds the RMD so just keep a small percentage in the 'cash' part of the IRA.

t.
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