On 5/10/2021 3:07 PM, dpb wrote:
On 5/10/2021 1:32 PM, Leon wrote:
On 5/10/2021 10:35 AM, Scott Lurndal wrote:
DerbyDad03 writes:
On Sunday, May 9, 2021 at 4:43:18 PM UTC-4, dpb wrote:

In the current interest climate, there's essentially no "stable
bucket"
that even makes the current (relatively) low inflation rate so you're
losing ground in purchasing power besides.


That is not true. There are indeed bond funds that are still making
more than inflation. If you look hard enough or have a financial
advisor that knows where to look, there is still money that can be
made in bonds. Managed products, not index funds.

Even Municipal Bonds.Â*Â* My collection thereof returned slightly over 4%
last year.Â* Tax free.

All of my bond funds are currently averaging 3.5%, not great but
better than any bank.

My dividend-paying stocks portfolio is 5.65% average dividend plus the
composite annualized capital gain since purchase is 7.76% or 13.4% total.

Well I have the mutual funds too. Just had a meeting with my money
manager last week. Since about 2008 my portfolio has tripled. That was
when I dropped my previous money manager.

I was mostly mutual funds until the crash last year. I got out before
it hit bottom and back in about 3 weeks later, lower than when I got
out. But with a more conservative approach, 50% bond funds and 50%
mutual funds.

Even with that mix I have seen about a 30% increase in value since April
last year.





I shouldn't leave impression I have zero conventional bonds/bond
funds/other fixed income assets, but am still 80:20 equities:fixed at
the moment.Â* This drives the brokerage-programmed "advice to the
lovelorn" algorithm bonkers in nagging me to rebalance to their
age-suggested guidelines for the annual mandated fiduciary
responsibility reports.

I could/would change overnight if think/thought it wise/time to
rearrange, but have been in this position for about 15 years now.Â* Rode
out the end 2019 correction but figured were in trouble in late
2007/early 2008 and parked about 65% in CDs/MM funds through the worst
of 2008.Â* Moved back into market over about 18 months beginning roughly
mid 2009.Â* I'll gladly trade some of the total growth from trying to
time absolute bottoms in trade to avoid the entire meltdown.

It's the inverse ratio rule; a retraction of 1/3rd requires a subsequent
gain of 50% to recover.Â* (1-1/3) -- 2/3 * 3/2 = 1)

--