Investing does not need to be complicated. In fact, the simpler the better in my opinion. I'm retired and did so at age 42 with about $1.1M for two people. We had an advisor from Morgan Stanley in our corner. Maxed 401k for many years and then saved additional in index funds in taxable account. Our rate of return has been around 10% percent per year in the taxable account over the last 10 years.
The standard deviation is not a measure of how much the portfolio can drop. It is a measure of variation in return essentially. If the average is 8 and the standard deviation is 14, there is statistically a high probability that the return in a year will be within 28 (two standard deviations) of 8, or in that case between -20 and 36.
Not 60 but I feel the same way. I plan on being all in stocks during retirement. My nest egg at retirement will be much higher that way so even with potentially larger losses on a down market, my nest egg will be higher and I feel like I’m still better off.
Man, that is so cool. There are so many ways to look at this topic and you captured the most important one to me and that is allocating or distributing risk based on buckets. Snuck in some cool NestEgg scenarios too. Thanks Eric. Ps like the tag line at the end!
I was 100% stock throughout my entire career and recently retired and now I am 50/50 stock and bonds/T Bills/CDs. Retirement clearly impacted the decision but the ability to average 5.5% risk free and taking the lump sum on the pension also had a major impact. Would I have made more in 2024 if I stayed 100% stock, yes. Am I still doing fine and have cut my risk on the downside in half. Also yes.
![АЛАУДИНОВ у Скабеевой: эти их ВСУ нас НЕ ДОГОНЯТ 😁 [Пародия]](http://i.ytimg.com/vi/an0anqU4WGQ/mqdefault.jpg)
Thanks for watching! We got this topic from a comment on my last video. If you have a topic you want covered, drop it below! :)
Investing does not need to be complicated. In fact, the simpler the better in my opinion. I'm retired and did so at age 42 with about $1.1M for two people. We had an advisor from Morgan Stanley in our corner. Maxed 401k for many years and then saved additional in index funds in taxable account. Our rate of return has been around 10% percent per year in the taxable account over the last 10 years.
The standard deviation is not a measure of how much the portfolio can drop. It is a measure of variation in return essentially. If the average is 8 and the standard deviation is 14, there is statistically a high probability that the return in a year will be within 28 (two standard deviations) of 8, or in that case between -20 and 36.
risk tolerance .. all stocks all the time (I'm 60)
Me too
Not 60 but I feel the same way. I plan on being all in stocks during retirement. My nest egg at retirement will be much higher that way so even with potentially larger losses on a down market, my nest egg will be higher and I feel like I’m still better off.
This is definitely the sentiment from a lot of people! If you're ok with the risk and volatility then have at it! Thanks for watching :)
Thank you Eric really good break down of the bigger picture
100% equities till 60 in my plan. 42 currently
Man, that is so cool. There are so many ways to look at this topic and you captured the most important one to me and that is allocating or distributing risk based on buckets. Snuck in some cool NestEgg scenarios too. Thanks Eric. Ps like the tag line at the end!
I appreciate you presenting the topic idea! Obviously with NestEgg we can get even geekier with this and we probably will! Glad you liked ending 😅
I was 100% stock throughout my entire career and recently retired and now I am 50/50 stock and bonds/T Bills/CDs. Retirement clearly impacted the decision but the ability to average 5.5% risk free and taking the lump sum on the pension also had a major impact. Would I have made more in 2024 if I stayed 100% stock, yes. Am I still doing fine and have cut my risk on the downside in half. Also yes.
I put everything into stocks 🙂↕️
But I want to diversify
Stocks are stressful