Message Font: Serif | Sans-Serif
 
No. of Recommendations: 9
MY WAY COULD BE YOUR WAY!

My Way - Could it by your way?

I do firmly believe, seriously suggest, and positively propose that an appropriately selected, and routinely balanced or rebalanced (allocated or rallocated, if you prefer), mixture of DIA, SPY, QQQ, and cash at short-term interest would make an ideal relatively liquid portfolio or sub-portfolio in a larger total portfolio.

This comparatively effective and simple program may be more fully appreciated if one were to take the time to look up and view at YAHOO or elsewhere the latest 15 year record of the historical performance of the precusors of DIA, SPY, and QQQ (DOW 30, S&P 500, and NASDAQ 100).

My personally preferred portfolio of relatively liquid indexed assets (DIA, SPY, QQQ, and cash at short-term interest) was designed and intended to meet my real or imagined personal limitations, goals, needs, and requirements within my own personal level of confidence and comfort.

My recognized personal situation is that:

1. I may not have the time, inclination, or ability to constantly pick out the very best stocks;

2. In terms of timing, I may not have the ability to time a clock, and certainly not the ability to consistently time the best time to buy a particular stock or the best time to sell same;

3. I recognize that I alone am responsible for the results of my own actions and that, if there is any way something can go wrong, that way will be found and, more often than not, at the worst possible moment. More than ever before, I do need to follow the principle of KISS (Keep It Simple, Stupid!) because I am getting older, less willing and able to keep up with minute details and routine occurrences; less mentally and physically flexible; less strong, less patient; more irritable with myself and others; and more and more unwilling to put up with even my own excuses and rationalizations about what could have been done or should have been done, let alone tolerate the excuses and malarky of others;

4. From time to time I may have family or medical emergencies which may often require almost instantly available cash;

5. From time to time I may have buying opportunities which would absolutely require instantly available cash;

6. From time to time I may have an unanticipated expense or the unexpected acceleration of an anticipated expense;

7. From time to time I also I will have to pay for the completion of one or more current and/or ongoing improvements or projects which, in my experience, more often than not, involve overruns rather than less expenditures than had been originally anticipated;

8. Because of my age (over 65), disabilities (American veteran), subsequent complications, two heart attacks, and general laziness, it is impractical to consider realistically very much earning power to effectively result from much physical work or labor and I must rely upon and cannot needlessly risk what capital I now have;

9. I am somewhat greedy and feel that I should maintain (within my own level of comfort and caution) at least a certain position in the market in order to routinely experience and clip off some long-term gains from time to time when the market goes up, in order to combat inflation for my old age in case I should happen to live long enough to get really old; yet

10. I am also somewhat cautious and feel that I should maintain (within my own level of comfort and greed) at least some cash at short-term interest both to cover possible required expendituress as well as to be able to routinely buy "bargains" in the event of a market turndown so that my total portfolio might more rapidly recover and grow to be able to support me in case I should have to rely totally upon it if I should ever get to be really old.

I believe that my personal portfolio of relatively liquid indexed assets (DIA, SPY, QQQ, and cash at short-term interest), as routinely balanced or reballanced and held in a margin account, will take care of my situation, provide the degree of liquidity I desire, and may also satisify the needs and requirements of others as well.

Please note that the portions need not be equal and may and should be adjusted to meet individual situations, hopes, needs, expectations, and levels of experience, confidence, and comfort, for example:

A very conservative (perhaps "older" or completely retired and without realistic prospect of a great deal of time remaining) investor may well elect to hold and maintain approximately 10% in DIA, 10% in SPY, 10% in QQQ, and 70% in cash at relatively short-term interest; whereas

A somewhat conservative investor may well elect to hold and maintain 15-20% in DIA, 15-20% in SPY, 15-20% in QQQ, and 40-55% in cash at short-term interest; whereas

A middle-of-the-road investor may well elect to hold and maintain approximately 25% in DIA, 25% in SPY, 25% in QQQ, and 25% in cash at short-term interest; whereas

An agressive investor (as I might prefer to regard myself) may well elect to hold and maintain 15-20% in DIA, 15-20% in SPY, 40-55% in QQQ, and 15-20% in cash at short-term interest; and

A very agressive (perhaps "younger" or active and with time on his or her side) investor may well elect to hold and maintain approximately 10% in DIA, 10% in SPY, 70% in QQQ, and 10% in cash at short-term interest.

One size need not fit all and the specific percentages may well change as an individual's situation and circumstances change over time.

Although I have never previously run across a specific program actually similar to my proposed program, it is the result of my personal experience and several years of rather active study based in large part, but not limited to, the education, enrichment, information, research, and references obtained, directly and indirectly, from the Motley Fool, various boards maintained by the Motley Fool, and by articles, posts, recommendations, references, and advice of many incredibly generous Fools (positive inflection).

Sincerely,

DHatch

Print the post  

Announcements

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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.