All 100% in S&P 500 Index Fund - Retirement Portfolio

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iraconfused
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by iraconfused »

Stay 100% until 5 yrs from retirement. Move either 10% of money into a TDF or bond index fund or 10-20 yrs of expenses into TDF or bond index fund.
Doctor Rhythm
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by Doctor Rhythm »

iraconfused wrote: Thu Oct 14, 2021 1:31 pm Stay 100% until 5 yrs from retirement. Move either 10% of money into a TDF or bond index fund or 10-20 yrs of expenses into TDF or bond index fund.
While this might work out well, I think it would help OP to explain that this strategy is far from conventional wisdom and much more aggressive than most would advise. I can see it being more appropriate for wealthy individuals or others who achieve financial independence early and will retire with far more than they’ll ever need. Perhaps you had this population in mind since you compare 10% of savings to 10-20 years of expenses — i.e., those who have saved enough to fund 100-200 years of retirement.* Someone who can live completely off their pension would be an example.


*Since this is Bogleheads, I expect that person to ask the forum whether it’s safe for them to both retire and buy a Corolla.
abc132
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by abc132 »

The blue line in the linked thread is a reasonable starting place.

viewtopic.php?t=255850

I tend to base the need for bonds and diversification on portfolio size rather than age. When you reach roughly 1/2 your retirement goal you should get serious about diversification into bonds and other assets, regardless of what investments you like. This is the point where protecting your assets outweighs trying to get maximum performance. At age 36 I assume 100% stocks is just fine, assuming you have an emergency fund, job skills, and the mentality to keep contributing when the market is down. I would mentally be prepared to watch all your life investments to date drop and lose money for several more years.
core4portfolio
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by core4portfolio »

Great however in 2020- you got tax loss harvesting option.
Do you used that ?

I was in VTI and moved to VOO in 2020.
Allocation : 80/20 (90% TSM, 10% on ARKK,XBI,XLK/individual stocks and 20% TBM) | | Need to learn fishing sooner
cegibbs
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by cegibbs »

Keep it up! I think what you are doing is as close to perfect as anyone could do.
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ruralavalon
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by ruralavalon »

Marseille07 wrote: Thu Oct 14, 2021 11:52 am
tibbitts wrote: Thu Oct 14, 2021 10:46 am It's important for the OP to realize that there would have been virtually zero support for 100% equities, and even less for 100% S&P500, from Bogleheads just a few years ago. But times have changed and everyone is struggling with what appear to be inevitably negative returns from almost all fixed income alternatives. And international has underperformed recently, so enthusiasm for it has waned. Bogleheads believe in "stay the course"... except when they don't.
I wasn't here back then, but I struggle to understand why people do not support 100% equities in retirement accounts for someone in their 30s.

Why do you want any bonds in there? If 401K goes down, you contribute more on the cheap next year.
During long stock market run-ups (like dotcom boom of the 1990's, and now 2009-2021), there is a lot enthusiasm for 100% stocks.

During and right after a severe stock market crash (dot.com crash of 2000, crash of 2008), there is a lot of panic over stocks, and so more enthusiasm for fixed income.

The enthusiasm for 100% stocks is sometimes from members who did not experience those past events with significant assets invested, or who have simply forgotten the pain.

Other members with 100% stocks may have a substantial pension coming, and so have a very high ability to take risk in investing. Most people don't have pensions, that makes a big difference in risk tolerance.

Other members with 100% stocks sometimes have a large multi-year "emergency fund", and so are not truly "100% stocks".
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
Marseille07
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by Marseille07 »

ruralavalon wrote: Thu Oct 14, 2021 6:20 pm During long stock market run-ups (like dotcom boom of the 1990's, and now 2009-2021), there is a lot enthusiasm for 100% stocks.

During and right after a severe stock market crash (dot.com crash of 2000, crash of 2008), there is a lot of panic over stocks, and so more enthusiasm for fixed income.

The enthusiasm for 100% stocks is sometimes from members who did not experience those past events with significant assets invested, or who have simply forgotten the pain.

Other members with 100% stocks may have a substantial pension coming, and so have a very high ability to take risk in investing. Most people don't have pensions, that makes a big difference in risk tolerance.

Other members with 100% stocks sometimes have a large multi-year "emergency fund", and so are not truly "100% stocks".
So the thread title is a bit confusing, but we're talking about retirement accounts of someone in their 30s and still in accumulation. This is very different than someone retiring with a 100/0 portfolio with or without pensions.
sandan
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by sandan »

Marseille07 wrote: Thu Oct 14, 2021 6:55 pm
ruralavalon wrote: Thu Oct 14, 2021 6:20 pm During long stock market run-ups (like dotcom boom of the 1990's, and now 2009-2021), there is a lot enthusiasm for 100% stocks.

During and right after a severe stock market crash (dot.com crash of 2000, crash of 2008), there is a lot of panic over stocks, and so more enthusiasm for fixed income.

The enthusiasm for 100% stocks is sometimes from members who did not experience those past events with significant assets invested, or who have simply forgotten the pain.

Other members with 100% stocks may have a substantial pension coming, and so have a very high ability to take risk in investing. Most people don't have pensions, that makes a big difference in risk tolerance.

Other members with 100% stocks sometimes have a large multi-year "emergency fund", and so are not truly "100% stocks".
So the thread title is a bit confusing, but we're talking about retirement accounts of someone in their 30s and still in accumulation. This is very different than someone retiring with a 100/0 portfolio with or without pensions.
I think someone in their 30's with no leverage (mortgage or any other loans) can potentially handle it. If leveraged in any way, a basic recession where prices fall might cause some serious damage from necessary liquidations and/or even more loans.
Last edited by sandan on Thu Oct 14, 2021 7:17 pm, edited 1 time in total.
Jovby
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by Jovby »

Doctor Rhythm wrote: Thu Oct 14, 2021 3:02 pm
Perhaps you had this population in mind since you compare 10% of savings to 10-20 years of expenses — i.e., those who have saved enough to fund 100-200 years of retirement.* Someone who can live completely off their pension would be an example.


*Since this is Bogleheads, I expect that person to ask the forum whether it’s safe for them to both retire and buy a Corolla.
Hahaha! That’s so TRUE!
SouthGAJacket
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by SouthGAJacket »

I’m close to 80% of all investments being in the S&P 500. I plan to stay that way until I die. Why? I trust the U.S Economy more than any other. I also have a pension coming to me that will pay my month to month bills. I also want my savings to continue to grow for heirs so the idea of going conservative doesn’t add up in my mind. If it’s good enough in my 20’s, 30’s, and 40’s, I see no reason to change the plan just because I enter new decades in life. If it goes down then I wait till it comes back, etc, just like I’ve been doing the past 30 years.
Marseille07
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by Marseille07 »

sandan wrote: Thu Oct 14, 2021 7:15 pm I think someone in their 30's with no leverage (mortgage or any other loans) can potentially handle it. If leveraged in any way, a basic recession where prices fall might cause some serious damage from necessary liquidations and/or even more loans.
I don't follow. 401K contributions are like 19K/year pre-tax dollars. Why would you run into trouble maxing it out year in and year out?

I sometimes see "tax-advantaged-rich taxable-poor" posters here, but imo that's an issue of liquidity management, not of AA.
bugleheadd
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by bugleheadd »

same , 401k is 100% VIIIX. love all the ST/LT capital gains distributions that it spits out which gets reinvested and increases my shares
CurlyDave
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by CurlyDave »

hoodibaba wrote: Wed Oct 13, 2021 11:10 pm Did you leave everything invested through the 2020 crash/dip?
Yes, in fact as per the suggestion from Mr. Buffet "Be more greedy when others are fearful". I added more money.

Do you plan to retire at a traditional age or early?
As of now, no plan to retire early.
If you had more money to add, you were not really 100% in S&P 500.
Answering a question is easy -- asking the right question is the hard part.
Marseille07
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by Marseille07 »

CurlyDave wrote: Thu Oct 14, 2021 11:18 pm
hoodibaba wrote: Wed Oct 13, 2021 11:10 pm Did you leave everything invested through the 2020 crash/dip?
Yes, in fact as per the suggestion from Mr. Buffet "Be more greedy when others are fearful". I added more money.

Do you plan to retire at a traditional age or early?
As of now, no plan to retire early.
If you had more money to add, you were not really 100% in S&P 500.
No one said they were. The OP simply said their retirement accounts are 100% S&P.
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hoodibaba
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by hoodibaba »

Thank you all for your suggestions. I certainly need some time to go through all different literature posted here. But appreciate all of you taking time to answer this.

Here is one more reason, for my 100% portfolio.
But again, I will certainly redo my analysis based on all of your suggestions.

Page no 105, Book - The Intelligent Investor (Benjamin Graham)

Image

I meet all criteria above.
I have emergency fund set aside.
Instead of 2000 bear market, I am taking the Covid bear market as as similar reference for me.
I didnt sell during the bear market + I plan to invest steadily long term.
Marseille07
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by Marseille07 »

hoodibaba wrote: Fri Oct 15, 2021 12:11 am I meet all criteria above.
I have emergency fund set aside.
Instead of 2000 bear market, I am taking the Covid bear market as as similar reference for me.
I didnt sell during the bear market + I plan to invest steadily long term.
OK, so that sounds like anywhere between 95/5 to 98/2 or so in terms of your overall AA because you have EF set aside, which makes it non-100/0.

If you're comfortable with it, nothing wrong with that. I'm maxing out at 95/5 because I want 5% in fixed income.
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hoodibaba
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by hoodibaba »

Yes that is right. My original subject meant all the money "in my retirement account" (not the total amount I have) is fully invested only in one fund which is S&P 500 index fund.
Marseille07
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by Marseille07 »

hoodibaba wrote: Fri Oct 15, 2021 12:32 am Yes that is right. My original subject meant all the money "in my retirement account" (not the total amount I have) is fully invested only in one fund which is S&P 500 index fund.
That seems fine. I'm 100% equities in my retirement account(s) as well. Since we don't plan to withdraw anytime soon, there's little point having bonds in there.

Of course, what's also important is to consider your overall AA, not just the retirement accounts. It is recommended to include EF as part of your fixed income allocation when planning your AA.
000
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by 000 »

Missing out on thousands of stocks and dozens of geographies as well as small caps not included in the S&P 500 for no other reason than 'Jack & Warren said it's good enough' does not seem a good plan to me.

Large cap US index has gone through painful periods of underperforming even Treasury bills. Are you ready for that?

Are you also ready for the possibility that this time might really be different?
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hoodibaba
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by hoodibaba »

000 wrote: Fri Oct 15, 2021 12:55 am Missing out on thousands of stocks and dozens of geographies as well as small caps not included in the S&P 500 for no other reason than 'Jack & Warren said it's good enough' does not seem a good plan to me.

Large cap US index has gone through painful periods of underperforming even Treasury bills. Are you ready for that?

Are you also ready for the possibility that this time might really be different?
What do you suggest then.
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LiveSimple
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by LiveSimple »

hoodibaba wrote: Fri Oct 15, 2021 1:05 am
000 wrote: Fri Oct 15, 2021 12:55 am Missing out on thousands of stocks and dozens of geographies as well as small caps not included in the S&P 500 for no other reason than 'Jack & Warren said it's good enough' does not seem a good plan to me.

Large cap US index has gone through painful periods of underperforming even Treasury bills. Are you ready for that?

Are you also ready for the possibility that this time might really be different?
What do you suggest then.
Typically the suggestion will be Total Stock Market index, instead of the SP 500 index.
Still with Total Stock Market index, the discussion on at what rain to the fixed income, remains to be disucssed.
Invest when you have the money, sell when you need the money, for real life expenses...
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ruralavalon
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by ruralavalon »

hoodibaba wrote: Fri Oct 15, 2021 12:11 amInstead of 2000 bear market, I am taking the Covid bear market as as similar reference for me.
Not even remotely similar, in my opinion.

Its good to see that you added more money last Spring.

In my opinion the Covid-19 dip was not a real test of risk tolerance, the recovery took just 6 months.

By contrast the recovery from the 2008 crash took five years.

By contrast the recovery from the dot.com crash took 12 years.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
Da5id
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by Da5id »

000 wrote: Fri Oct 15, 2021 12:55 am Missing out on thousands of stocks and dozens of geographies as well as small caps not included in the S&P 500 for no other reason than 'Jack & Warren said it's good enough' does not seem a good plan to me.

Large cap US index has gone through painful periods of underperforming even Treasury bills. Are you ready for that?

Are you also ready for the possibility that this time might really be different?
While I personally agree with the choice of TSM over S&P 500, the difference really isn't much to speak of practically. The two investments correlate incredibly strongly. See, e.g., this graph since 1992 (inception date of Vanguards TSM fund): https://www.portfoliovisualizer.com/bac ... ion2_2=100
lostdog
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by lostdog »

000 wrote: Fri Oct 15, 2021 12:55 am Missing out on thousands of stocks and dozens of geographies as well as small caps not included in the S&P 500 for no other reason than 'Jack & Warren said it's good enough' does not seem a good plan to me.

Large cap US index has gone through painful periods of underperforming even Treasury bills. Are you ready for that?

Are you also ready for the possibility that this time might really be different?
+1

Will you be able to stay the course when ex-US starts to outperform for a long period of time? The "Jack and Warren said so" crowd won't save you.

By the time you decide to get into ex-US, it will be too late.
Stocks-80% || Bonds-20% || Taxable-VTI/VXUS || IRA-VT/BNDW
opus360
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by opus360 »

hoodibaba wrote: Wed Oct 13, 2021 10:58 pm My age is 36. My retirement portfolio is 100% in S&P500 index fund.
From every paycheck, my contributions keep adding to this (so essentially I am doing Dollar Cost Averaging).
Am I going the right way (If this has been already discussed, please help to post a link here)

My reasons to do this (based on what I read/heard from investor kings Bogle, Buffet):
-Only a handful of mutual funds can beat the S&P 500 index in the longer term
The biggest risk with 100% stocks is selling when market down. However, you wrote that you didn't do that, and keep on adding more. I am assuming this is your 401k or Roth with new money from salary, not borrowing to add more stocks or over 100% of your portfolio. I said this, as you're only 36, about 30 years from normal retirement. If you're 64 or about to retire and need those retirement funds, this will be a different story.
iraconfused
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by iraconfused »

hoodibaba wrote: Fri Oct 15, 2021 1:05 am
000 wrote: Fri Oct 15, 2021 12:55 am Missing out on thousands of stocks and dozens of geographies as well as small caps not included in the S&P 500 for no other reason than 'Jack & Warren said it's good enough' does not seem a good plan to me.

Large cap US index has gone through painful periods of underperforming even Treasury bills. Are you ready for that?

Are you also ready for the possibility that this time might really be different?
What do you suggest then.
Open Roth IRA and max out splitting between small and mid 50/50. Large in 401k and mid small in Roth IRA
Carguy85
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by Carguy85 »

Same age, same conclusion, same thing(mostly) if we for all intensive purposes consider total market and SP500 the “same thing”....mines a mix of both. Own home/cars/etc...no debt. Vast majority of investments in taxable (401k only available in my situation within last few years) Between cash and munies I like to have roughly a year in bare bones expenses..(will temporarily be less if I have a bigger expense). The other consideration of “fixed income” are our jobs...currently I take home about 3x and she about 1x yearly expenses. Btw how much debt do you have? People that are leveraged to the max will obviously have much less tolerance to avoid doing silly things when things go south. Your question has everything to do with your financial situation wether or not it makes sense. Some it totally makes sense, whereas others it totally doesn’t regardless of your risk tolerance.
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arcticpineapplecorp.
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by arcticpineapplecorp. »

hoodibaba wrote: Wed Oct 13, 2021 11:22 pm
anon_investor wrote: Wed Oct 13, 2021 11:17 pm
Marseille07 wrote: Wed Oct 13, 2021 11:15 pm Seems good to me. I'm doing something similar myself.
+1, though I use US total stock market index funds.
Thanks anon_investor & Marseille07 .

The only concern I have is, what if the stock market crash during the time we retire & what if it takes a very long time to recover or never recover at all (like what Happened to Japan)
But Japan's been dealing with deflation for decades, so even though your stocks had fallen in value, your cash will be increasing in value:

https://www.wsj.com/articles/bank-of-ja ... 1616128225

if the market never recovers, it's not recovering for anyone else either.

you'd have worse problems then "Dude, what happened to my money?"

I diversify outside my border because I don't like country risk and I'm willing to take currency risk which over long periods of time has been neutral in the past (sometimes help, sometimes hurt).
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Carguy85
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by Carguy85 »

OP I’ve also come to the conclusion that investing outside the US makes as much sense to me as investing in gold/silver in case of total market collapse...to some this is totally rational. There are all kinds of kinds. It seems that Bogle was very diplomatic in mentioning investing in non-US markets as to not hurt anyone’s feelings.
000
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by 000 »

hoodibaba wrote: Fri Oct 15, 2021 1:05 am What do you suggest then.
Consider Total World stock index.
000
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by 000 »

Da5id wrote: Fri Oct 15, 2021 7:27 am While I personally agree with the choice of TSM over S&P 500, the difference really isn't much to speak of practically. The two investments correlate incredibly strongly. See, e.g., this graph since 1992 (inception date of Vanguards TSM fund): https://www.portfoliovisualizer.com/bac ... ion2_2=100
May as well just buy the DJIA then. link link2
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Plano
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by Plano »

SmileyFace wrote: Thu Oct 14, 2021 7:53 am
hoodibaba wrote: Wed Oct 13, 2021 11:10 pm Did you leave everything invested through the 2020 crash/dip?
Yes, in fact as per the suggestion from Mr. Buffet "Be more greedy when others are fearful". I added more money.
If you had money sitting on the sidelines and added significantly more during the downturn you weren't really 100% S&P500 since you had some sitting in cash.
Not necessarily. I know a lot of (working, not retired) folks who did this, because lower expenses during the pandemic led to more discretionary income that one could direct towards investment.

My family's transportation and dry cleaning budgets, which went away during the lockdown, did quite well in VOO. Small amount each month from April '20 to July '21, separate taxable account... interesting to watch it grow. :sharebeer
Da5id
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by Da5id »

000 wrote: Fri Oct 15, 2021 4:36 pm
Da5id wrote: Fri Oct 15, 2021 7:27 am While I personally agree with the choice of TSM over S&P 500, the difference really isn't much to speak of practically. The two investments correlate incredibly strongly. See, e.g., this graph since 1992 (inception date of Vanguards TSM fund): https://www.portfoliovisualizer.com/bac ... ion2_2=100
May as well just buy the DJIA then. link link2
Meh. DJIA is a price weighted somewhat actively managed portfolio with 30 stocks. It is less like S&P 500 and TSM than those are to each other, and the US market correlation is weaker too. I think substituting S&P vs VTI isn't a big deal at all, you really think it is a huge one? I've owned TSM since before it existed as a fund (I had S&P 500 + extended market), and I really don't think the difference is all that critical to whether one has a successful investment outcome.
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SmileyFace
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by SmileyFace »

Plano wrote: Fri Oct 15, 2021 4:47 pm
SmileyFace wrote: Thu Oct 14, 2021 7:53 am
hoodibaba wrote: Wed Oct 13, 2021 11:10 pm Did you leave everything invested through the 2020 crash/dip?
Yes, in fact as per the suggestion from Mr. Buffet "Be more greedy when others are fearful". I added more money.
If you had money sitting on the sidelines and added significantly more during the downturn you weren't really 100% S&P500 since you had some sitting in cash.
Not necessarily. I know a lot of (working, not retired) folks who did this, because lower expenses during the pandemic led to more discretionary income that one could direct towards investment.

My family's transportation and dry cleaning budgets, which went away during the lockdown, did quite well in VOO. Small amount each month from April '20 to July '21, separate taxable account... interesting to watch it grow. :sharebeer
Investing excess funds is different than having money sitting on the sidelines.
Marseille07
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by Marseille07 »

SmileyFace wrote: Fri Oct 15, 2021 5:03 pm
Plano wrote: Fri Oct 15, 2021 4:47 pm
SmileyFace wrote: Thu Oct 14, 2021 7:53 am
hoodibaba wrote: Wed Oct 13, 2021 11:10 pm Did you leave everything invested through the 2020 crash/dip?
Yes, in fact as per the suggestion from Mr. Buffet "Be more greedy when others are fearful". I added more money.
If you had money sitting on the sidelines and added significantly more during the downturn you weren't really 100% S&P500 since you had some sitting in cash.
Not necessarily. I know a lot of (working, not retired) folks who did this, because lower expenses during the pandemic led to more discretionary income that one could direct towards investment.

My family's transportation and dry cleaning budgets, which went away during the lockdown, did quite well in VOO. Small amount each month from April '20 to July '21, separate taxable account... interesting to watch it grow. :sharebeer
Investing excess funds is different than having money sitting on the sidelines.
The OP simply said they're 100% S&P500 in their retirement porftolio.

They might have a million dollars elsewhere, that doesn't invalidate their claim.
cegibbs
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by cegibbs »

Consider that some of the people advocating the need for international are trying to justify it to themselves because they hold it. Just stick with the S&P500 or possibly the U.S. Total Market, but I prefer the former.
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SmileyFace
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by SmileyFace »

Marseille07 wrote: Fri Oct 15, 2021 5:17 pm
SmileyFace wrote: Fri Oct 15, 2021 5:03 pm
Plano wrote: Fri Oct 15, 2021 4:47 pm
SmileyFace wrote: Thu Oct 14, 2021 7:53 am
hoodibaba wrote: Wed Oct 13, 2021 11:10 pm Did you leave everything invested through the 2020 crash/dip?
Yes, in fact as per the suggestion from Mr. Buffet "Be more greedy when others are fearful". I added more money.
If you had money sitting on the sidelines and added significantly more during the downturn you weren't really 100% S&P500 since you had some sitting in cash.
Not necessarily. I know a lot of (working, not retired) folks who did this, because lower expenses during the pandemic led to more discretionary income that one could direct towards investment.

My family's transportation and dry cleaning budgets, which went away during the lockdown, did quite well in VOO. Small amount each month from April '20 to July '21, separate taxable account... interesting to watch it grow. :sharebeer
Investing excess funds is different than having money sitting on the sidelines.
The OP simply said they're 100% S&P500 in their retirement porftolio.

They might have a million dollars elsewhere, that doesn't invalidate their claim.
Sure. Or maybe it was inherited. I said "If". I don't presume to know whether or not the OP was playing the dry-powder scenario - if they were they weren't 100% S&P and had money sitting on the sidelines for the last couple of years that money missed the run up. (I am not trying to give the OP a hard time. Years ago I learned the mistakes of holding excess cash to inject into the market during a downturn - merely trying to pass that info forward)
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by Carguy85 »

cegibbs wrote: Fri Oct 15, 2021 5:48 pm Consider that some of the people advocating the need for international are trying to justify it to themselves because they hold it. Just stick with the S&P500 or possibly the U.S. Total Market, but I prefer the former.
International and a few other investments...one of which is no longer allowed to be mentioned on here...likely stemming from the fallout from such a strong need for affirmation in such an investment. Likewise the international threads make me smile. So yes... vtsax or sp500 and relax
Triple digit golfer
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Joined: Mon May 18, 2009 5:57 pm

Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by Triple digit golfer »

This thread is pointless without the whole picture. It is irrelevant what percentage of retirement accounts are in any given funds. It's the whole portfolio that matters.

I have 50% bonds in my retirement accounts but my overall AA is only 20% bonds. It would be pointless to ask for any advice and only include the former.

It's like asking a nutrition forum if 2,500 calories per day on Tuesdays and Thursdays is appropriate.
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Beensabu
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Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by Beensabu »

hoodibaba wrote: Fri Oct 15, 2021 12:11 am Page no 105, Book - The Intelligent Investor (Benjamin Graham)

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I meet all criteria above.
I have emergency fund set aside.
Instead of 2000 bear market, I am taking the Covid bear market as as similar reference for me.
I didnt sell during the bear market + I plan to invest steadily long term.
Two points:

(1) That commentary (as is the nature of "commentary") is inserted into Graham's work. It is someone else's opinion, and not part of the original work. Who wrote the commentary? Is their opinion more credible than Graham's, and if so, then why?

(2) Have you "implemented a formal plan to control your investing behavior"? Or is it unnecessary in your case? Even if you think it is unnecessary, for reasons you may or may not be able to share, you may find yourself surprised. Behavior is not just based on emotion. It is also born of potentially faulty analysis.
"The only thing that makes life possible is permanent, intolerable uncertainty; not knowing what comes next." ~Ursula LeGuin
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hoodibaba
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Joined: Mon Oct 04, 2021 1:39 pm

Re: All 100% in S&P 500 Index Fund - Retirement Portfolio

Post by hoodibaba »

Triple digit golfer wrote: Fri Oct 15, 2021 7:14 pm This thread is pointless without the whole picture. It is irrelevant what percentage of retirement accounts are in any given funds. It's the whole portfolio that matters.

I have 50% bonds in my retirement accounts but my overall AA is only 20% bonds. It would be pointless to ask for any advice and only include the former.

It's like asking a nutrition forum if 2,500 calories per day on Tuesdays and Thursdays is appropriate.
@Triple digit golfer
Image

Here is my asset allocation. I have more for AMD stock because I work there (ESPP/RSU etc) What do you suggest then ?
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