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Dale Roberts  

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  • Retirees, The S&P 500 And Cash Are All You Need [View article]
    Yes investing can and should be simple. Even investing in retirement. An indexer can get a few reads on Seeking Alpha, I guess. ha.

    Though any learning from this applies to stock pickers as well. It's about growth and cash, not passive vs active.

    But hey I hold 3 stocks too. :)

    Dale
    Sep 24, 2014. 09:48 PM | Likes Like |Link to Comment
  • Retirees, The S&P 500 And Cash Are All You Need [View article]
    Thanks certainly most will add some bonds and higher yielding bonds and higher yielding stocks, but a good core growth component can be a great help as well.

    Dale
    Sep 24, 2014. 09:43 PM | Likes Like |Link to Comment
  • Retirees, The S&P 500 And Cash Are All You Need [View article]
    Thanks yes, I'm not finished with this, ha. Not many could hold 85%ish in stocks in retirement. It does demonstrate the benefit of growth though. I am certainly all about that balance of stocks and bonds and cash. But there is a surprising lesson or two here, I hope.

    For me, research has changed my mind about how much to hold in stocks in retirement.

    Dale
    Sep 24, 2014. 09:41 PM | Likes Like |Link to Comment
  • Retirees, The S&P 500 And Cash Are All You Need [View article]
    Thanks for that. Keeping one's spending in check and investments at a modest draw down may be key.

    Dale
    Sep 24, 2014. 09:38 PM | Likes Like |Link to Comment
  • Retirees, The S&P 500 And Cash Are All You Need [View article]
    And rebalancing in successive down years moves money from stocks (that are about to have another bad year) to cash that has a guaranteed positive gain.

    Dale
    Sep 24, 2014. 09:33 PM | Likes Like |Link to Comment
  • Retirees, The S&P 500 And Cash Are All You Need [View article]
    Yes, that's a great point, but it does avoid the double whammy of harvesting shares during that year when stocks are getting killed, the cash is earning (remember it used to, ha). So the rebalancing is not always that severe.

    And the cash is earning every year and sometimes the gains moved to stocks, feeding that growth. As was mentioned it would be interesting to see what happens if we allow a year or two of stock losses before rebalancing the cash. But then there's more left in stocks to go down? (in the successive down years).

    To be fair the real numbers would be better than above with a retiree that could react quarter by quarter.

    Dale
    Sep 24, 2014. 09:32 PM | Likes Like |Link to Comment
  • Retirees, The S&P 500 And Cash Are All You Need [View article]
    You are correct. It mitigates the selling. I did think about that, as the idea is to protect against 3 down years. Also, more would be in stocks to experience the fall?

    And then, when do you move the money back to cash? One would always be selling stocks to fund cash.

    Been thinking about those strategies and tweaks though. Thought I would start with the above. Any ideas are welcome. :)

    Dale
    Sep 24, 2014. 09:16 PM | Likes Like |Link to Comment
  • Retirees, The S&P 500 And Cash Are All You Need [View article]
    Thanks Rog, no this would not be easy, or doable by many. But there is learning in the growth that is required to combat inflation and spending requirements. As I wrote, a nice balanced portfolio will do the trick with cash.

    One can SWAN and keep that growth component required.

    Retirement investing can be very simple as well. It should be.

    I will be back with more on retirement stagflation, the market corrections, battled with stocks and bonds and cash.

    Dale
    Sep 24, 2014. 09:11 PM | Likes Like |Link to Comment
  • Retirees, The S&P 500 And Cash Are All You Need [View article]
    Hi Geoff I certainly write on asset allocation and risk, and that is mentioned in the article. That's a major theme of mine. Not finished with this yet, ha. In fact I warned against trying this strategy today, or the risks of.

    I also write and wrote on international diversification in this article. I think you missed a few points. :)

    Dale
    Sep 24, 2014. 09:06 PM | Likes Like |Link to Comment
  • Retirees, The S&P 500 And Cash Are All You Need [View article]
    Ha, that is very kind of you. Thanks.

    Dale
    Sep 24, 2014. 09:03 PM | 1 Like Like |Link to Comment
  • Retirees, The S&P 500 And Cash Are All You Need [View article]
    Thanks Dick, yes I talk to many retired clients who live on very modest amounts and are very happy and content. The above scenario is a real stress test for the portfolio, and that was the idea.

    Dale
    Sep 24, 2014. 09:02 PM | Likes Like |Link to Comment
  • Retirees, The S&P 500 And Cash Are All You Need [View article]
    Ya, but that's how bad inflation was and can be. It's shocking that's for sure.

    Dale
    Sep 24, 2014. 09:00 PM | Likes Like |Link to Comment
  • Retirees, The S&P 500 And Cash Are All You Need [View article]
    Yes great point, spending certainly does decrease for many according to studies. But I wanted to stay true to the 'study'. SP 500 gave the growth required, it always has, if one protect the down years.

    Dale
    Sep 24, 2014. 08:58 PM | 2 Likes Like |Link to Comment
  • Retirees, The S&P 500 And Cash Are All You Need [View article]
    No, inflation ran into 8-13% for a period, it's the draw down in those periods that will affect and weaken the portfolio. Again, you'd need high yielders with 10-18% dividend growth rates? Not sure you'll find that in the low yielders.

    Article to follow on this. No yield would not do the trick.

    Dale
    Sep 24, 2014. 08:56 PM | Likes Like |Link to Comment
  • Retirees, The S&P 500 And Cash Are All You Need [View article]
    See the Sure Dividend site, he has the full list and historical graphic. Many of the stalwarts have come and go in the land of dividends, that's why we need to buy a bunch of them. Or buy an index.

    Dale
    Sep 24, 2014. 08:53 PM | 1 Like Like |Link to Comment
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