January 4, 2019 at 2:37 PM #43096
My name is Ed and reside in the Memphis area with my wife. I’ll be 60 in a few months, and I became a plus member in September.
My initial investment was while I was working at FedEx in 1978 as a college student when they went public. My car was stolen, and I received a payment from the insurance company. My dad convinced me to buy FedEx stock. I purchased 144 shares. A few months later I sold the 44 shares and bought another car. 8 years later I sold the 100 for for a nice down-payment on our first house.
I don’t expect to be so lucky again. And yes, I have wondered what those 100 shares would be worth today. ? ?
We are talking a lot about retirement in 3 – 5 years. We live comfortably and simply, having never made over $80,000 in a year, but with investments over $900,000. I appreciate the overall investment insights from the site – both David’s and the comments on the Forums. I first heard of David from listing to a podcast “Listen Money Matters”. The monthly summary of the market and the economy is much appreciated.
In the late 1990s, my family moved to central asia where I worked for a few non-profits until 2012. Internet access was limited and so was my time at that point. I moved most of my funds to Edward Jones where a trusted friend did an okay job managing my funds. In 2018 I moved my funds from Edward Jones to a Fidelity account. Most of my assests with EdJones moved directly into my new Fidelity account, which I was thankful for, so I didn’t have to make lots of initial decisions on all the funds. I have sold a few things but mostly left that asset allocation in-tact.
My asset allocation is not far from David’s middle allocation, although I haven’t adjust many of the individual assets to match his recommendations other than purchasing some ICSH with some assets that I freed up after moving the funds from Ed Jones.
I wouldn’t consider myself a complete novice, but like others who have commented here, I understand the bond market less than I would prefer. With money markets paying more and with CD rates rising, the bond funds and ETFs seem more challenging to navigate profitably for the long term.
I look forward to learning more.January 4, 2019 at 3:28 PM #43116
Thanks for sharing Ed. If CD rates are competitive, they are always a good option. The model portfolio are meant to serve as examples for publicly traded securities, particularly how to combine multiple bond ETFs to create a portfolio. CD’s have no interest rate risk so they are an attractive alternative. For participants in the Federal Thrift Savings Plan, the G fund is also a more compelling option than bond ETFs because the G fund also has no interest rate risk in that its price doesn’t fall as interest rates rise.
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