I have always said that everyone needs to do what makes THEM feel comfortable and that is style and choices of investments.... I'm never a guy that will say you should only do things my way....
I just wanted readers to understand WHY I was saying what I was saying.... not in a defensive way --- just as an explanation.
I had breakfast the other day with a retired accountant buddy - he was a managing partner at KPMG -- his wife is a retired CFO... both should understand investments and money and compounding... They're pretty well healed. Then he tells me his "money managers" have him in about 30% bonds which he tells me has just taken a huge hit... but that now he doesn't want to sell at a loss.... My question to him was why the hell does he think these people are worth what he's paying them? I sold my bonds months ago AHEAD of the impending interest rate rise and made a very handsome gain on them...
So much for "professional" money managers. And my buddy should just be embarrassed as hell to even mention that he's not smart enough to manage his own money -- or care enough is really what it boils down to. When I asked him if his money was UP 29 to 30% this year... he could only look down and say "well their strategy has me in pretty safe stuff" --- then I reminded him of his bonds and asked how safe those were??
UGH!!
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Originally Posted by XLexusTech
Discussion is never argument.
Here is why i go the route I do... the 100 other stocks in the fun offer me some risk mitigation , the fund allows me to "Set it and forget it" and never look at it..
The individual stock Drips allow me to trickle in directly thereby managing the total cost whilst providing me the ability to Punch out of the individual stock at any time and buy it back at any time.
Its that flexibility and risk limiting factor that for me supports the logic of owning an SP INDEX FUND and some of the same stocks in that INDEX individually
Think of this, I am applying both the "Lazy portfolio" Approach and the active trading approach at the same time... taking the benefits of each.
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