I am at 22.1% YTD with my money split evenly between VTSAX and VGHAX.If you don't mind me asking, what's been your 2014 YTD % return and risk profile? I've got my savings split between a managed Windhaven account at Schwab, and a managed account at Personal Capital-- both with a "medium" risk profile. The Personal Capital account has done alright with a 6% return this year, but my Windhaven account has been a dog (3% YTD, and 5% last year), so I'm looking for something else.
Dayum.. I hate you. That was certainly a nice gamble on health care that paid off.. Do you think it's reached its peak? 30% YTD in one sector seems ripe for a correction.I am at 22.1% YTD with my money split evenly between VTSAX and VGHAX.
It was something like 40% in 2013. So I dunno. I bought it at like 56 and it is at almost 100 now, and it pays dividends too.Dayum.. I hate you. That was certainly a nice gamble on health care that paid off.. Do you think it's reached its peak? 30% YTD in one sector seems ripe for a correction.
Your retirement investment needs to at least grow by 3%/a in order to mean anything. Even then, it won't mean shit years from now.My age 42 retirement goal allows us to withdraw $40k a year after taxes, which leaves plenty of room for cars.
Did I, or did I not convey the point with my abbreviation?$40k/yr is certainly not even close to poverty level if you truly live in one of the lowest cost of living areas in the US. Why are you abbreviating cost of living?
Oh god the glorious kids excuse. I've seen try raising "X" kids used on pay levels from 10 an hour all the way to 180k salaried....Did I, or did I not convey the point with my abbreviation?
As far as poverty money and $40k is concerned? Try raising two kids, paying rent and everything else. 40k here might keep your head just above water. Might.
I use Vanguard and have an aggressive portfolio that is actively managed and I have only made about 7.8% this year so far. (29% in 2013)If you don't mind me asking, what's been your 2014 YTD % return and risk profile? I've got my savings split between a managed Windhaven account at Schwab, and a managed account at Personal Capital-- both with a "medium" risk profile. The Personal Capital account has done alright with a 6% return this year, but my Windhaven account has been a dog (3% YTD, and 5% last year), so I'm looking for something else.
VGHAX has a pretty insane YTD considering overall markets this year.I am at 22.1% YTD with my money split evenly between VTSAX and VGHAX.
I feel like you didn't read anything I said outside of "retire at 42." I literally explained everything you mentioned. First, $40k covers my current expenses PLUS gives a buffer of about 5-10k (depending on how my expenses change in retirement). Second, I said that took inflation into account with everything (used a 3% rate). It's an inflation adjusted draw of $40k a year indefinitely. Third, I said that my "retirement" was just that I didn'thaveto keep working. It's "fuck you" money so that I can do whatever I want. I can take a year off and be fine, and then dick around with a part time job if I want to buy something retarded. Or not. It doesn't matter. It's just about having enough money where I don't have to work anymore. That's "retirement" to me. Maybe calling it "financial independence" is better for you?Your retirement investment needs to at least grow by 3%/a in order to mean anything. Even then, it won't mean shit years from now.
Just to give you a small idea...I'm 42. I live in one of the lowest COL areas in the US. $40k is poverty money here NOW. What thee fuck you think $40k is going to get you years from now? Retiring at 42 might sound neat...but the reality is you are still 3 years away from peaking out on your salary. That's $375k for basically pressing palms and looking at young secretaries all day. The majority of my work isn't work at all, and I get paid well for it.
Houses? I have 5. All of them pay for themselves, and the rentals pay most of my main mortgage.
Retiring at 42 is such a dumb idea. You should be relaxing, not retiring.
It can be hard to correlate personal rates of return vs overall fund numbers when you are actively investing throughout the period. For example a fund may be up over the previous 12 mos. but someone buying a piece every friday during that 12 months may be at a wash. If you are still in the early part of investing and balances haven't grown very large means the money going in currently weighs more on your returns than the money that is already there. The only part of your 401k that will match the fund returns is the balance you had at the time those comparisons started. I'm probably wording this poorly. This effect of timing though will diminish over the years just keep investing and you'll see that when the balances are significantly larger than your current contributions your personal rate of return will more closely follow the funds overall performance.Dunno if this is the thread for it, but here goes:
Like most, I'm maxing out my 401k. I'm in a Fidelity plan with an expected retirement date of 2045. From what I understand, it's aggressive in stocks and low in bonds early on, then switches as it gets closer to maturity. Actual plan name is FID FREEDOM K 2045 (FFKGX). Under Average Annual Total Returns, it's projecting 1 year at 9.35%, 3 year at 14.42%, and 5 year at 10.98%. Those might be a little high, but the benchmark is the S&P 500 and it's killing it right now.
So if I go back to Summary and look at YTD changes, my personal rate of return is 2.53% and my change in market value is negative. My vested balance (employer match is immediate) is actually less than my contributions for this year. WTF?