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Post by Majick on Jun 22, 2022 20:58:25 GMT
Hi Guys, Before there were frequently threads and posts at M* discussion groups...like Two Safest Conservative & Complementing MutualFunds combo for any long-term holding, a retiree's Buy & Hold, a safer Funds.Just simplified way.
For Example Vanguard's Wellington VWENX & Wellesley VWINX or with a safe Bond fund added. A Low Cost ,Low ER%
What can be now a Safer Combo M.Funds or ETFs?
If not only 2 funds, Perhaps up to 5 Funds & ETFs Combo?
Don't want to complicate posting here with too many Variables,Ratios & SD with a PV/Portfolio Visualizer Yet... I've been monitoring many threads here...but can not see any possibilities...or getting Lost here!
Is it too early or broad question to ask ? Both are retirees, with monthly defined pension & Social Sec Income with Medicare/Drug Costs are covered safely from it Plus in RMD mode.Not needing large $Income & do not want to lose sleep or portfolio's value$...and thank god Life/health both are good! What else to Keep It simpler !?
Thanks in Advance. Majick
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Post by Chahta on Jun 24, 2022 0:14:20 GMT
50/50 VWIAX/VWENX. Got this from a friend. 😊
I think asking to not lose value is too much. That will not happen if you are a B&H investor. Pretty much need a backup cash position for markets like this. If income is not most important than they will have a mirror portfolio in their taxable account to put the RMDs in and draw as needed.
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Post by Mustang on Jun 24, 2022 23:20:51 GMT
I have Wellington and Wellesley (50-50) in my taxable accounts. That is where I re-invest RMDs that I don't need. Wellington outperforms Wellesley during bull markets. Wellesley outperforms Wellington during bear markets. Buy low, sell high. Currently I'm buying Wellington to keep the 50-50 balance. When the recovery comes and Wellington is outperforming Wellesley then I will be buying Wellesley.
The opposite is true when selling. I'll sell the one with the highest balance.
I agree with Chahta. There isn't any way to be in stock and not occasionally lose value. But, you don't lose money until you sell. During the withdrawal phase it is important to keep enough funds in cash or cash equivalents to cover withdrawals when the funds are under water. There is only one time in history where Wellington and Wellesley both lost value in the same year two years in a row, 1973 & 1974. Two years of withdrawals in cash should be sufficient.
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Post by alvinthechipmunk on Jun 25, 2022 12:14:55 GMT
I hear bad things about Vanguard's customer service and the website is clunky. (TRP, where I'm at, has its own issues, too.) Anyhow: Try this on for size: DODGX. Dodge & Cox. Domestic stocks. No bonds, but it pays quarterly divs. BRUFX. Bruce. Balanced fund, with both stocks and bonds. Pays annually in December. XLRE. Real Estate. DGRO. Dividend growers. (iShares.) And if you'd care to devote any portion of your money to single stocks, I think you could hardly do any better than my favorite two Canadian big banks: BMO. Bank of Montreal CM Canadian Imperial Bank of Commerce. I lived in Canada for a couple of stints in my life. These are among the "Big Five." They hold almost NINETY percent of deposits, among them. (The 6th is National Bank of Canada, but it's available only on the Toronto Exchange.) These banks are growing their US presence, too. Also, you might want to investigate Bank of Nova Scotia. BNS. These banks are attractively priced, right about now. Mustang , Chahta , Majick ,
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Post by anitya on Jun 25, 2022 18:24:51 GMT
Were the Canadian banks directly exposed to housing and other excesses leading up to to GFC? Trying to learn if they had better discipline than ours.
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Post by Deleted on Jun 25, 2022 19:11:35 GMT
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Post by alvinthechipmunk on Jun 25, 2022 21:08:37 GMT
Majick , Chahta , Mustang , alvinthechipmunk , anitya ,@django , My recollection is that the Canadian banks did not engage in the stupid junk and were not into doing the excessive foolishness that got the USA into such trouble, back during the Crash of '08-'09...... However, housing prices are astronomical in Canada, and some of the Big Five banks are more exposed to mortgages than the others. Even in little podunk towns, tiny houses with postage-stamp-sized lawns are ridiculously priced. And the tax code gives no deduction for mortgage loan interest. Banks are heavily regulated. And entry into that industry is quite limited. Newcomers ..... Well, there ARE NO newcomers. The Big Five are monolithic. They pay great dividends through thick and thin. And they are all "too big to fail." www.chartmill.com/stock/quote/BMO/analyst-ratingswww.chartmill.com/stock/quote/CM/analyst-ratingswww.chartmill.com/stock/quote/BNS/analyst-ratingswww.chartmill.com/stock/quote/TD/analyst-ratingswww.chartmill.com/stock/quote/RY/analyst-ratings
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Post by anitya on Jun 25, 2022 23:00:06 GMT
Low interest rates across the world to counter the pandemic helped with housing boom all over the world. But I do not anticipate these to lead to any banking crisis in the next four - five years.
The juicy dividends are pretty enticing!
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Post by Deleted on Jun 26, 2022 2:37:03 GMT
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