american anesthesiology/mednax

[pgg]

I suppose a large part of the difference in perspective comes from the fact that I'm 35 years from retirement age, and thus much more comfortable with risk. I'd probably be far more risk averse 20 years from now. I still stand by the buyout being a solid move, whether you put it 50/50, 100/0, 75/25, or whatever combination of stocks to bonds and other less volatile assets you choose.

Can't really argue with that perspective.

I'm 40 and plan on being at least semi-retired in about 15 years. If I'm taking call when I'm 55 I'm going to be very disappointed in myself. The last 6 years or so have been great ones for my portfolio. Between that and the Navy retirement ... my need to take risk just isn't there. Earlier this year I scaled back to 55% equity. If someone dropped $2.5 million in my lap I'd retire about 10 years earlier and cut the equity back even more.

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[Mad Jack]

I strongly recommend you do some reading on this subject. 100% equity exposure is very risk/very volatile vs the generated returns. A diversified portfolio of 70/30 would actually serve you better going forward and allow you cash to rebalance during severe market corrections in order to maintain your allocation.
Investing all your money into equities 6-7 years into a bull market is probably not the best idea.

At age 35 I fully understand the feeling to be 100% in equities and if your portfolio is small it probably won't matter much as new money flows into your brokerages allowing cost averaging over many years. That said, some allocation to cash in anticipation of a pullback (like we had this year) or an even bigger market correction in the next few months gives you ammunition to buy equities much cheaper than they are priced at today.

I'm actually not fully invested in equities- 15% of my portfolio is in high yield bonds (PIMCO total return), 10% is in domestic real estate, and 5% is in international real estate. I'd just be a bit more bold if I had 2 million dropped in my lap, because why not.

 

[criticalelement]

WTF? 100% Equity exposure for someone over 55? Regardless of whether one views the cash from a buyout as nest-egg vs windfall the equity portion of a portfolio should remain on target. In fact, the more money you have in the bank the less you need to risk a market downturn with your money. Bernstein calls this "you have won the game" and he recommends REDUCING market exposure.

Once your best earning years are behind instead in front of you it is foolish to ever be 100% invested in equities as your risk/reward curve is out of whack.
By maintaining Bonds/CDs/Cash you have money available to re-invest in equities when the market gets ugly. By maintaining a safety-net in cash/bonds/ CDs the senior investor/Anesthesiologist is ready to deal with up and down markets.

When you are young (under the age of 40) a high equity exposure like 90/10 or 80/20 may be reasonable ( I still recommend a lower equity exposure like 70/30) depending on your ability to handle market down turns. Some of us had 7 figure portfolios cut in half circa the market crash in 2008. Do you know how hard it is to watch your hard earned money evaporate over a few months? Most investors can't stomach the pain and even I didn't invest any more hard earned cash near the bottom (I stopped buying about 600 points before the bottom) because the losses seemed to never end.

One really needs at least two major market corrections to fully grasp his/her comfort level with equity exposure. I've been through several over the past two decades and am quite comfortable NEVER being 100% invested in equities.

Equities are fully valued right now and even though I did invest $200,00 more during the correction this past summer I remain skeptical of earnings growth going forward. There is no way I would go 100% "in" at these valuations.

I'm a firm believer in a diversified portfolio of domestic and foreign equities (stocks, mutual funds, ETFs) combined with Bonds, CDs, Cash, Real estate, Gold, etc. The diversified investor is the winning investor over the long run.

(one of the BEST BOOKS for under $10 is posted below- READ IT)

Newsflash:
In any major market correction, Everyone LOSES money unless you are in cash. Even the best stocks take a nose dive. Apple one of the best companies dropped to below 90 dollars per share in 2008. Nothing is safe when the market is in free fall. Forget diversification. I want my money 100 percent in stuff that is performing and none of my money in non performers.

 

[sevoflurane]

Newsflash:
In any major market correction, Everyone LOSES money unless you are in cash. Even the best stocks take a nose dive. Apple one of the best companies dropped to below 90 dollars per share in 2008. Nothing is safe when the market is in free fall. Forget diversification. I want my money 100 percent in stuff that is performing and none of my money in non performers.

Douuuuchey post Critical! For crying out loud... try to be a nice guy for once dude. Your posts are caustic for no reason. There are a lot of smart guys on here- Doze, Pgg, Blade, Noyac, etc... and they post good stuff. We are here to learn from ea. other not to be a "blowhard".

Newsflash:
You are saying we need to time the market or not be in it all together? My answer to you my friend is a resounding----> NO!
"100 percent in "stuff" that is performing?" Puhhhhhlease elaborate on that blanket statement.

Oh... and BTW, what has happened since 2008? I've been riding that train for a long time Einstein. Did you miss out on that?

Good day to you.

 

[sevoflurane]

 

[criticalelement]

Madjack posted the s and p historic data. You park your money there for thirty years, you are going to make a fortune. i advocate this. Blade was saying equities are bad because of the possibility of market corrections. Hey if you are that worried put your money in a CD.

 

[deleted126335]

Madjack posted the s and p historic data. You park your money there for thirty years, you are going to make a fortune. i advocate this. Blade was saying equities are bad because of the possibility of market corrections. Hey if you are that worried put your money in a CD.

Take a longer view without recency bias.

http://www.advisorperspectives.com/dshort/updates/Secular-Bull-and-Bear-Markets.php