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sschullo

25 years of returns and Current Asset Allocation that served this retiree well!

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Hi,

I thought I would put my current portfolio to show newbies who want to get out of those costly annuities. This graph shows when my late spouse and I did after getting out of five horrible annuities in 1994 and learning about investing with mutual funds and stocks and bonds. Back in the 1990s, I did not know about diversification nor did I include enough of a bond allocation.

The vertical line shows the evolution of my portfolio going from a 95% technology no-load mutual fund portfolio on the left side of the graph to the portfolio I have today with those modest returns and losses on the right. This AA on the right and my pie graph shows the same AA for 15 or 16 years, 30 to 35% stocks and 65 to 70% bonds.  The stock bond split is of course a rule of thumb. My choice is what works for me as I am risk adverse, no descendants, I have won the game, and do not need to play any longer, and needed this money for retirement so I am in the preservation stage. If you have a lucrative pension benefit where you don't need to tap into your investments in retirement, HECK put 100% into stocks and let your descendants worry about it. 

If you are in your 20s and 30s you would have the opposite AA with 20% to 30% in bonds and the rest in stock index funds. 

 

Returns of Portfolio 1995 2019 25 Years.png

Q3 2020 Asset Allocation.jpg

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Great, thanks for this!

Since 2004 when I revamped my portfolio from the tech bubble disaster, I calculated a 5.9% return. Is that correct? 

 

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There are a gazillion calculators at every internet street corner! Why didn't I look at what is in my backyard? Bogleheads and Investopedia. 

Thanks again.

 

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