Re: Comments on Vanguard Portfolio Plan
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1) too much small cap
2) too much mid-cap [i assume this is US_only]
3) Where's your bonds/cash/dry-powder?
The market will take a 10% tumble at some point in the near future, you should always have some dry powder in reserve.
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In that case it's more than fine to be 100% equities. Since the beginning of it, the SPX has averaged 10.8%, while bonds are around 5.1%, when you are this young, and can ride out the market, it would certainly be in your best interest to be 100% equities.
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It is beyond question horrible advice to jump-start with 100% of your investable assets all hitting the market on Day 1, for curtains. Anyone who says otherwise is an idiot.
No rational [or professional] investor does this. Essentially, you are saying that, using SPX as an example, it is OPTIMAL to put 100% of your funds in on Day 1. It will never go down more than a tiny bit, the optimal solution is all of it, now.
After all, the SPX has underperformed bonds for 8 years now.
Since we know the market will have a tumble of that size, it is more optimal to invest some/most now and the rest later.
Or DCA over 3, 6, etc months, whichever you prefer.
You seem to lack a basic understanding on these issues you are giving advice on.
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As I believe someone mentioned, I don't have 100% of my money in the market. Only about 50-70% depending on a few things.
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