Am I keeping it too simple?
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Am I keeping it too simple?
I don’t use margin, puts, calls, options, shorts, stop limits, or leveraged securities. Heck, I don’t even know what half those things are.
I just buy MFs/ETFs when I have the cash, maintain my AA through re-balancing, gradually adjust my AA to become more conservative as retirement nears, and plan to decumulate using VPW.
Am I missing something by not using all those other “tools”?
I just buy MFs/ETFs when I have the cash, maintain my AA through re-balancing, gradually adjust my AA to become more conservative as retirement nears, and plan to decumulate using VPW.
Am I missing something by not using all those other “tools”?
Last edited by Kookaburra on Wed Dec 01, 2021 11:35 pm, edited 1 time in total.
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Re: Am I keeping it too simple?
I'm pretty much the same way; mine's actually simpler because I don't even rebalance. If you plan to use VPW, be sure you understand the pros and cons.
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Re: Am I keeping it too simple?
Not missing anything. Most investors using these tools will underperform the market in the long term.Kookaburra wrote: ↑Tue Nov 30, 2021 10:30 pm I don’t use margin, puts, calls, shorts, stop limits, or leveraged securities. Heck, I don’t even know what half those things are.
I just buy MFs/ETFs when I have the cash, maintain my AA through re-balancing, gradually adjust my AA to become more conservative as retirement nears, and plan to decumulate using VPW.
Am I missing something by not using all those other “tools”?
Re: Am I keeping it too simple?
That's essentially what I've done for almost 35 years. Although I have owned quite a few individual stocks.
And I maybe made a "trade" 4-5 times a year, not counting regular contributions to my 401k.
I retired at 53, (with no pension), so I can't complain.
Simple will work.
And I maybe made a "trade" 4-5 times a year, not counting regular contributions to my 401k.
I retired at 53, (with no pension), so I can't complain.
Simple will work.
Time is what we want most, but what we use worst. William Penn
Re: Am I keeping it too simple?
Actually, it sounds too complicated. I just use a target date account that does all this for meKookaburra wrote: ↑Tue Nov 30, 2021 10:30 pm maintain my AA through re-balancing, gradually adjust my AA to become more conservative as retirement nears
Re: Am I keeping it too simple?
Sounds good to me.
Retired three years ago and mine is: No International, 60 stock/40 bond, Stocks are VTSAX/VTI, Bonds are split between VBTLX and TSP “G” fund. Emergency fund split between money market and I-Bonds.
Now having to navigate Tax Gain Harvesting, large portion in brokerage account.
Retired three years ago and mine is: No International, 60 stock/40 bond, Stocks are VTSAX/VTI, Bonds are split between VBTLX and TSP “G” fund. Emergency fund split between money market and I-Bonds.
Now having to navigate Tax Gain Harvesting, large portion in brokerage account.
Re: Am I keeping it too simple?
I too keep it simple. Why not? It simply works.
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Re: Am I keeping it too simple?
If you wanted to make it more complex, you could do all that stuff, waste a ton of time doing it and end up with lower gains and higher taxes. "Don't do something, just stand there".
Bogle: Smart Beta is stupid
Re: Am I keeping it too simple?
I think you are doing what most people do here; it matches what I am doing.Kookaburra wrote: ↑Tue Nov 30, 2021 10:30 pm I don’t use margin, puts, calls, shorts, stop limits, or leveraged securities. Heck, I don’t even know what half those things are.
I just buy MFs/ETFs when I have the cash, maintain my AA through re-balancing, gradually adjust my AA to become more conservative as retirement nears, and plan to decumulate using VPW.
Am I missing something by not using all those other “tools”?
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Re: Am I keeping it too simple?
I use none of these tools. They're unnecessary for the average investor.Kookaburra wrote: ↑Tue Nov 30, 2021 10:30 pm I don’t use margin, puts, calls, shorts, stop limits, or leveraged securities.
Re: Am I keeping it too simple?
We have done the same since 1986. And actually, we didn't start to rebalance until I was 50 years old; prior to then we were 100/0/0, with everything in broad market funds, just squirreling away month after month. We have never held an individual stock or bond. We have never bought or sold during a market event. The only time we sell now is to rebalance, which is triggered infrequently given our 5% bands. The events since Friday didn't come close to triggering rebalancing.Kookaburra wrote: ↑Tue Nov 30, 2021 10:30 pm I don’t use margin, puts, calls, shorts, stop limits, or leveraged securities. Heck, I don’t even know what half those things are.
I just buy MFs/ETFs when I have the cash, maintain my AA through re-balancing, gradually adjust my AA to become more conservative as retirement nears, and plan to decumulate using VPW.
Am I missing something by not using all those other “tools”?
No pension. No RSU's. No windfalls. No start-up options. No IPO scores.
This boring approach applied over many decades -- coupled with a LBYM & DIY (and more recently LCOL) lifestyle -- has gotten us to 50x. I'm 57 and DW is 61. We are currently at 65/32/3 (likely now 64/33/3 but I haven't checked).
The BH approach has worked well for us.
- Taylor Larimore
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Re: Am I keeping it too simple?
Kookaburra:Kookaburra wrote: ↑Tue Nov 30, 2021 10:30 pm I don’t use margin, puts, calls, shorts, stop limits, or leveraged securities. Heck, I don’t even know what half those things are.
I just buy MFs/ETFs when I have the cash, maintain my AA through re-balancing, gradually adjust my AA to become more conservative as retirement nears, and plan to decumulate using VPW.
Congratulations for resisting the urge to "beat the market."
Best wishes.
Taylor
Jack Bogle's Words of Wisdom: “The marketing colossus known as the mutual fund industry provides the weaponry which enables investors’ to indulge their suicidal instincts.”
"Simplicity is the master key to financial success." -- Jack Bogle
Re: Am I keeping it too simple?
You are missing the frustration and regret associated with making a wrong-footed move.
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
Re: Am I keeping it too simple?
No.Kookaburra wrote: ↑Tue Nov 30, 2021 10:30 pm Am I missing something by not using all those other “tools”?
- ruralavalon
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Re: Am I keeping it too simple?
In my opinion you are missing nothing by not using "margin, puts, calls, shorts, stop limits, or leveraged securities."Kookaburra wrote: ↑Tue Nov 30, 2021 10:30 pm I don’t use margin, puts, calls, shorts, stop limits, or leveraged securities. Heck, I don’t even know what half those things are.
I just buy MFs/ETFs when I have the cash, maintain my AA through re-balancing, gradually adjust my AA to become more conservative as retirement nears, and plan to decumulate using VPW.
Am I missing something by not using all those other “tools”?
Keep it simple.
"Everything should be as simple as it is, but not simpler." - Albert Einstein |
Wiki article link: Bogleheads® investment philosophy
- Sandtrap
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Re: Am I keeping it too simple?
IMHO you are missing nothing and gaining a great night's sleep.Kookaburra wrote: ↑Tue Nov 30, 2021 10:30 pm I don’t use margin, puts, calls, shorts, stop limits, or leveraged securities. Heck, I don’t even know what half those things are.
I just buy MFs/ETFs when I have the cash, maintain my AA through re-balancing, gradually adjust my AA to become more conservative as retirement nears, and plan to decumulate using VPW.
Am I missing something by not using all those other “tools”?
OTOH: if you memorize those technical financial words, as well as: opportunity costs, locking in gains, tax lost harvest, et al, you can use them in social conversations and sound financially wise and wealthy. (kidding).
Simple is good.
j
Re: Am I keeping it too simple?
I've let others use those tools! No, I don't believe you're missing a thing!Kookaburra wrote: ↑Tue Nov 30, 2021 10:30 pm I don’t use margin, puts, calls, shorts, stop limits, or leveraged securities. Heck, I don’t even know what half those things are.
I just buy MFs/ETFs when I have the cash, maintain my AA through re-balancing, gradually adjust my AA to become more conservative as retirement nears, and plan to decumulate using VPW.
Am I missing something by not using all those other “tools”?
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Re: Am I keeping it too simple?
You already know the answer to this question. If you're seeking a pat on the back, here you go. Good job!
Re: Am I keeping it too simple?
You are missing out on the “half” of those things you wisely admit you don’t understand, and if you do truly understand the rest well enough to Invest successfully, you still need to know if they are right for you. It seems that your current investment plan is working out for you, so maybe you are dealing with a case of FOMO, fear of missing out.Kookaburra wrote: ↑Tue Nov 30, 2021 10:30 pm I don’t use margin, puts, calls, shorts, stop limits, or leveraged securities. Heck, I don’t even know what half those things are.
I just buy MFs/ETFs when I have the cash, maintain my AA through re-balancing, gradually adjust my AA to become more conservative as retirement nears, and plan to decumulate using VPW.
Am I missing something by not using all those other “tools”?
"Yes, investing is simple. But it is not easy, for it requires discipline, patience, steadfastness, and that most uncommon of all gifts, common sense." ~Jack Bogle
Re: Am I keeping it too simple?
This is the way.
Re: Am I keeping it too simple?
I hope not. I don't use any of those things either. Like you, I'm not even sure what they all are.Kookaburra wrote: ↑Tue Nov 30, 2021 10:30 pm I don’t use margin, puts, calls, shorts, stop limits, or leveraged securities. Heck, I don’t even know what half those things are.
I just buy MFs/ETFs when I have the cash, maintain my AA through re-balancing, gradually adjust my AA to become more conservative as retirement nears, and plan to decumulate using VPW.
Am I missing something by not using all those other “tools”?
Link to Asking Portfolio Questions
Re: Am I keeping it too simple?
I’m in the same boat. And completely satisfied and confident in the approach.retiredjg wrote: ↑Wed Dec 01, 2021 1:05 pmI hope not. I don't use any of those things either. Like you, I'm not even sure what they all are.Kookaburra wrote: ↑Tue Nov 30, 2021 10:30 pm I don’t use margin, puts, calls, shorts, stop limits, or leveraged securities. Heck, I don’t even know what half those things are.
I just buy MFs/ETFs when I have the cash, maintain my AA through re-balancing, gradually adjust my AA to become more conservative as retirement nears, and plan to decumulate using VPW.
Am I missing something by not using all those other “tools”?
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Re: Am I keeping it too simple?
Me four.Normchad wrote: ↑Wed Dec 01, 2021 1:13 pmI’m in the same boat. And completely satisfied and confident in the approach.retiredjg wrote: ↑Wed Dec 01, 2021 1:05 pmI hope not. I don't use any of those things either. Like you, I'm not even sure what they all are.Kookaburra wrote: ↑Tue Nov 30, 2021 10:30 pm I don’t use margin, puts, calls, shorts, stop limits, or leveraged securities. Heck, I don’t even know what half those things are.
I just buy MFs/ETFs when I have the cash, maintain my AA through re-balancing, gradually adjust my AA to become more conservative as retirement nears, and plan to decumulate using VPW.
Am I missing something by not using all those other “tools”?
Re: Am I keeping it too simple?
Am I the only one who doesn't know what VPW is (and wants to know) ?
Re: Am I keeping it too simple?
- BrooklynInvest
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Re: Am I keeping it too simple?
I think you're being exactly as complex as the situation warrants.
Re: Am I keeping it too simple?
ThanksX528 wrote: ↑Wed Dec 01, 2021 3:53 pmVPW = Variable Percentage Withdrawl?:
https://www.bogleheads.org/wiki/Variabl ... withdrawal
Re: Am I keeping it too simple?
Can you elaborate on the cons with VPW?Marseille07 wrote: ↑Tue Nov 30, 2021 10:34 pm I'm pretty much the same way; mine's actually simpler because I don't even rebalance. If you plan to use VPW, be sure you understand the pros and cons.
Re: Am I keeping it too simple?
FWIW: I don't use any of these tools. I do what you do and have been retired now for 4 years (I turn 62 this month). I'd rather spend my time thinking about and doing other things aka living life. I SWAN about as well as I think I could, especially given the times we live in. All the best to you. Do the right thing. Relax. And enjoy life.Kookaburra wrote: ↑Tue Nov 30, 2021 10:30 pm I don’t use margin, puts, calls, shorts, stop limits, or leveraged securities. Heck, I don’t even know what half those things are.
I just buy MFs/ETFs when I have the cash, maintain my AA through re-balancing, gradually adjust my AA to become more conservative as retirement nears, and plan to decumulate using VPW.
Am I missing something by not using all those other “tools”?
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Re: Am I keeping it too simple?
There are two primary issues (for me, might not apply to everyone);kilkoyne wrote: ↑Wed Dec 01, 2021 8:53 pmCan you elaborate on the cons with VPW?Marseille07 wrote: ↑Tue Nov 30, 2021 10:34 pm I'm pretty much the same way; mine's actually simpler because I don't even rebalance. If you plan to use VPW, be sure you understand the pros and cons.
1. It's really difficult to grow your portfolio in retirement because the WR starts off high and goes higher.
2. VPW runs out of money after N years. I know they tell you to buy SPIA at age 80, but that's a huge unknown because we have no idea how much it'd cost then.
- Alto Astral
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Re: Am I keeping it too simple?
Ignorance is bliss.
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Re: Am I keeping it too simple?
The short answer is no.Kookaburra wrote: ↑Tue Nov 30, 2021 10:30 pm I don’t use margin, puts, calls, shorts, stop limits, or leveraged securities. Heck, I don’t even know what half those things are.
I just buy MFs/ETFs when I have the cash, maintain my AA through re-balancing, gradually adjust my AA to become more conservative as retirement nears, and plan to decumulate using VPW.
Am I missing something by not using all those other “tools”?
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Re: Am I keeping it too simple?
Thanks everyone! It’s relieving to know that I’m not missing something important. Plus, I really have no interest in learning about all those things.
Re: Am I keeping it too simple?
I've used a stop-limit order to purchase shares in an index fund ETF in taxable. It was fun. I bought while I was still asleep
ETFs bounce around quite a bit during the trading day, so why not save a few dollars if you need to do some rebalancing?
I like learning new things.
I don't make many changes in my portfolio, though. So I've only done a stop-limit order a handful of times over several years.
ETFs bounce around quite a bit during the trading day, so why not save a few dollars if you need to do some rebalancing?
I like learning new things.
I don't make many changes in my portfolio, though. So I've only done a stop-limit order a handful of times over several years.
Re: Am I keeping it too simple?
My first 15 years of investing, I was all about reading up on the wonderful new techniques, and it didn't really help much. So I switched to a 3-fund portfolio, and the past 15 years have been boring but performance has been very good. I'm a technical person, so when I see threads about leverage and the like, it draws my eye and I start reading. But my biggest investing challenge by far is stepping back and NOT doing any of this interesting stuff, because I should know better. But, every time, I want to believe, so I start reading the thread, even though I'm going to step away...Kookaburra wrote: ↑Tue Nov 30, 2021 10:30 pm I don’t use margin, puts, calls, options, shorts, stop limits, or leveraged securities. Heck, I don’t even know what half those things are.
I just buy MFs/ETFs when I have the cash, maintain my AA through re-balancing, gradually adjust my AA to become more conservative as retirement nears, and plan to decumulate using VPW.
Am I missing something by not using all those other “tools”?
Re: Am I keeping it too simple?
Aside from the VPW plan, you are doing what many people do.Kookaburra wrote: ↑Tue Nov 30, 2021 10:30 pm I just buy MFs/ETFs when I have the cash, maintain my AA through re-balancing, gradually adjust my AA to become more conservative as retirement nears, and plan to decumulate using VPW.
This isn't just my wallet. It's an organizer, a memory and an old friend.
Re: Am I keeping it too simple?
delete
Last edited by TT on Tue Feb 06, 2024 3:45 pm, edited 1 time in total.
Live Life Simple and Less Soft
Re: Am I keeping it too simple?
Yes you are missing the fun of crypto investing
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Re: Am I keeping it too simple?
I hope not. I don't use them, either.Kookaburra wrote: ↑Tue Nov 30, 2021 10:30 pm Am I missing something by not using all those other “tools”?
I've been retired for more than a decade and I am now using two target risk funds to get my AA where I want it. I'll rebalance my portfolio (two funds) in about five years or so, if the portfolio AA gets too far out of alignment (+/- 5% of target.)
FI is the best revenge. LBYM. Invest the rest. Stay the course. Die anyway. - PS: The cavalry isn't coming, kids. You are on your own.
- arcticpineapplecorp.
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Re: Am I keeping it too simple?
Simplicity is the ultimate sophistication.
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions |
- arcticpineapplecorp.
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Re: Am I keeping it too simple?
also known as speculation (not investing)
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions |
Re: Am I keeping it too simple?
Investing is like driving which is simple, but you need to know your destination.
Re: Am I keeping it too simple?
+1 Well said.
IMHO the financial world add all that extra stuff to help justify the various fees and to confuse the average person so they will pay for advise, etc. After the big levers of your savings rate, time in the market to capture power of compounding, a target AA to control your risk, and some basic tax diversification knowledge, what is left has little positive impact for the average investor - just my opinion.
- arcticpineapplecorp.
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Re: Am I keeping it too simple?
'The only thing useful banks have invented in 20 years is the ATM' --Paul VolckerEagle33 wrote: ↑Fri Dec 03, 2021 7:28 pm+1 Well said.
IMHO the financial world add all that extra stuff to help justify the various fees and to confuse the average person so they will pay for advise, etc. After the big levers of your savings rate, time in the market to capture power of compounding, a target AA to control your risk, and some basic tax diversification knowledge, what is left has little positive impact for the average investor - just my opinion.
https://nypost.com/2009/12/13/the-only- ... s-the-atm/
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions |