Other than retirement, I currently have over 50% of my assets in Cash........

[TeTe]

It's actually the absolute worst time to buy a house in my market. The low interest rate has created a large surplus of buyers. Home prices are ridiculously inflated and we are probably looking at a bubble. Most people buying will be upside down for a few years. Interest rates will be higher as well hurting their ability to refi. It's not looking good.

If I didn't live in California I would have never bought last month. But, it's always a seller market here and it's even worse now. I probably overpaid but I'm not that concerned about it long term.

 

[wlu.29]

Agree with HeffDoesWant in that it is pretty agressive, especially given the gains we've had the past few years. But then again looks like you have quite a bit of money there and can still ride out some ups and downs. I hate to miss out on gains but in your position I'd go at least 50/50 stocks vs bonds right now. But I'm very risk averse - I guess it really depends on how long you plan to live yet

Bond index ETF?

Utilities? Even if people work from home, they still gotta pay utilities

 

[sleepyguard85]

If you’re keeping the cash in your house make sure you stuff it in a frozen chicken. That way if there’s a fire it shouldn’t burn up.

 

[TheNinja]

If you’re keeping the cash in your house make sure you stuff it in a frozen chicken. That way if there’s a fire it shouldn’t burn up.

I actually keep it inside a chicken, inside a duck, inside a turkey.........a frozen turducken.

 

[jeffk]

I've been thinking about this a lot. I'm retiring in April, my 401k is in mutual funds, and I'm still at around a 80% stocks/20% bonds split. I feel like I should move most of it into something safe, but my return for the past 10 years is 21%.

I have no debt, and ~$1.8M. Hmmm..... that should be enough to live on. We don't have an expensive lifestyle.

Rule of thumb is that if your portfolio is about 50% equities and 50% fixed income you should be able to spend about 4% of your assets and have cost of living adjustments since you should earn about 4% + around the inflation rate each year.

So you should be able to live spending around ($72,000 - taxes) your first year and then a little more the following years without running out of money.

*not factoring in social security if you live in the US. If your family has good lifespan and you are not a smoker, best to wait to start taking it since you will be getting a higher monthly amount if you wait. It could be 8% rate of return each year if you wait.

 

[kenetics]

I have a million dogecoin

Dodgecoin is worthless lol. It's a meme coin.

 

[kahiljabroni]

I have been too cash heavy this year. As many people say we have had a K shape recovery where some are doing much better and some are doing worse. I thought at some point 11 or so million people out of work is going to cause the markets to take a hit in the US. But the Fed has created so much liquidity it hasn't been a problem yet in the US. IMO we need a new covid relief bill to provide some fiscal stimulus. The Fed cannot do it all on its own. So hopefully by the end of January we get something.

I see a number of analysts predicting the S&P 500 being from 3700 to 4000 next year. I have to think that is pretty rosy where vaccines are smoothly distributed without much of a hiccup and we are not dealing with Covid at the end of the 2nd quarter. Who knows if that will really be the case.

Those who are doing well in this economy have increased their savings rate and when things open up they will have a good amount to spend. But will that compensate for the people who have spent their savings where many will have to learn new skills since their jobs will no longer be there after being out of work for 6 months or more. They won't have much money to spend.

And the third world....will they recover from Covid and their economies being growing where they will be buying out shit? Will they be getting vaccines too? My guess is it won't be as easy to distribute and their economies will suffer longer.

Who knows.

Sp almost 3700 already.

I think we hit 3900-4000 soon and then start a new long bear market

 

[MIKOM]

Ohhh..... that chart.......

https://coinmarketcap.com/currencies/bitcoin/

 

[Cool Hand Luke]

Dodgecoin is worthless lol. It's a meme coin.

wait you mean I won't become a millionaire with my investment?

 

[boingyman]

Unless you get lucky, time in market is usually always better then trying to time the market. There are some people that do seasonal investment strategies that can be beneficial big time if you guess right, but a lot is again based on historical movement and anticipation. I would first optimize any tax deferred accounts (401k, IRA, HSA, etc) before putting more or opening a taxable brokerage account. Of course set aside emergency funds in a high yield savings or no penalty CD. If you're concerned about a crash diversify most in broad funds (fund/ETF that mimics S&P500, total stock market, etc) and use dollar cost averaging over a fixed period. You can even use dips to buy more. You can also set a side a percentage on various individual stocks if you want some higher risk investments.