Author Topic: Requesting advice  (Read 836 times)

JohnKgan

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Requesting advice
« on: December 09, 2018, 09:30:53 AM »
Dear experts,

Due to the recent dip, I have lost thousands on the principle as well, but I understand that markets fluctuate and I have invested for long term. I am 52 years old and I have emergency money. But recently a friend commented that this is just the beginning and stock market would continue to only get worst. I am not very well-versed in stock market and politics. So, thought I'll just request the opinion of the experts. Below are the funds I have invested in. Please advise if I should be doing anything or if I am being overly optimistic. Thank you so much.

1) VTSAX ((Vanguard Total Stock Market Index Fund Admiral Shares)) -100% for my son's account

2) Brokerage account in :
VMLUX (Vanguard Limited-Term Tax-Exempt Fund Admiral Shares) -20%,
VTIAX (Vanguard Total International Stock Index Fund Admiral Shares) - 20%,
VTSAX (Vanguard Total Stock Market Index Fund Admiral Shares) - 20%
VWIUX (Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares) - 20%,
VWLUX (Vanguard Long-Term Tax-Exempt Fund Admiral Shares) - 20%

3) Rollover IRA in
VBTLX (Vanguard Total Bond Market Index Fund Admiral Shares) - 90%
VTABX ( Vanguard Total International Bond Index Fund Admiral Shares) -10%

4) FXIFX (FIDELITY FREEDOM INDEX 2030 INVESTOR ): 100% with Fidelity Rollover IRA.

Best Regards.
« Last Edit: December 09, 2018, 09:32:31 AM by JohnKgan »

jacoavluha

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Re: Requesting advice
« Reply #1 on: December 09, 2018, 09:54:00 AM »
Need to know relative amounts. From your data there’s no way to know your overall asset allocation as to stocks:bonds. You are invested in fine funds but the most important factor with regards to overall risk is your asset allocation.

JAYSLOL

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Re: Requesting advice
« Reply #2 on: December 09, 2018, 10:04:39 AM »
Need to know relative amounts. From your data there’s no way to know your overall asset allocation as to stocks:bonds. You are invested in fine funds but the most important factor with regards to overall risk is your asset allocation.

Agreed, need to know that to give better advice.  Also helpful to know how many more years you expect to work, your total invested assets value, income, savings rate or amount saved/year etc.  Big difference in advice if you want to retire in 2 years vs you expect to work for another 15. 

MDM

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Re: Requesting advice
« Reply #3 on: December 09, 2018, 12:54:34 PM »
Dear experts,

Due to the recent dip, I have lost thousands on the principle as well, but I understand that markets fluctuate and I have invested for long term. I am 52 years old ....
Dear experts,

I am 21 years old student
Sorry to hear about your accelerated aging problem.

Andy R

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Re: Requesting advice
« Reply #4 on: December 09, 2018, 07:40:58 PM »
Listening to your "friend" is going to cost you a lot of money. So the first thing is to avoid this person. If you can't, then go out of the room when they are talking about finance. If you are the only one there when he is talking, just ask him to never mention it again - ever.

The market goes up and down. This if fact.
Nobody knows where it will be tomorrow or next month or next year even your "friend". This is fact.

If you are worried about it, then adjust your asset allocation to what you will be more comfortable with.
If you are not so worried about it but your friend made you worry, go back and read the first paragraph.

rant coming:
These fucking morons come out with their scare mongering making people worry about things they should not be worried about causing them to make emotional decisions that can cost them hundreds of thousands of dollars. They might not intend to do it but who the fuck cares, it doesn't help those people get their money back that they didn't intend it. Tell him to FUCK RIGHT OFF next time he starts talking his bullshit. I'm not kidding, tell me what is worse for you - you losing tens or hundreds of thousands of dollars, or you being rude and telling him to fuck off. These people are dangerous.
/end of rant

AM43

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Re: Requesting advice
« Reply #5 on: December 10, 2018, 10:50:14 AM »
OP, would it make you feel better if I told you that I lost 100K no less during this so called recent dip?
I invest very aggressively with 100% stock allocation and also have been through 2008 market crash when I lost over 30% of my portfolio.Yet i am not losing my sleep over it and in fact I have been buying more and as much as I can.
Like others have said, do not listen to what all those "experts" got to say, including your friend.
Stay the course and you will come out ahead. Hope this helps.
 

robartsd

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Re: Requesting advice
« Reply #6 on: December 10, 2018, 01:01:16 PM »
Dear experts,

Due to the recent dip, I have lost thousands on the principle as well, but I understand that markets fluctuate and I have invested for long term. I am 52 years old ....
Dear experts,

I am 21 years old student
Sorry to hear about your accelerated aging problem.
Parent and child sharing an account on the forums? Is the 21 year old student the son for whom the account that is all VTSAX is invested for?

Account 2 (Taxable - Vanguard?) is 40% Stocks, 60% tax free bonds.
Account 3 (IRA - Vanguard?) is 100% bonds.
Account 4 (IRA - Fidelity) is close to 70% stocks, 30% bonds.

The overall picture is unclear because we don't know the relative amounts of the accounts, but I can't think of a logical reason why the same investor should hold this set of accounts with these allocations within them. If the overall mix of stocks and bonds matches the investor's timeline and risk tolerance, then more bonds should be held in the IRAs to reduce the need for investing in tax free bonds in the taxable account.

Conventional advice for a 52 year old would be to invest like account 4 (target 2030) with the allocation to bonds increasing to about 40% over the next 10 years or so. For a risk adverse saver who expects to retire within a few years, 70% stocks would be too much.