March 2022 - How Are You Allocating Your 401k & Personal Account?
Given inflation is 10%+, are you guys just sticking the DCA monthly contribution course with respect to your 401k and personal accounts?
Cash is trash and market indices are in a pullback, especially tech sector. Interest rate environment remains uncertain. Commodities have already had a decent run up so hesitant to buy the top. Ideally - would buy a SFH rental property but that segment is also seeing insane appreciation.
Let me know when you figure it out. Given the insane things that have been happening in the global economy over the past couple of weeks, it's hard to believe that the market won't fall a lot more. Then again, I thought that in the spring of 2020 as well.
not trying to talk shit so please take this as constructive, I'd like to gently push back
couple things here - in mid 1942 when it looked like the axis powers were going to win WW2, markets bottomed. allies didn't really gain momentum until late 43/into 1944 but the market had already gone up tremendously. if you wait for the skies to clear, you've missed it.
being early is OK - warren buffett backed up the truck in fall 2008. markets fell another 20-30% from there but they've tripled from where he added. he likely bought more as they continued to fall. do not look a gift horse in the mouth
you're not done accumulating money so even if I'm dead wrong, you can continue to buy in at lower levels with future paychecks
and as I've said before (I don't believe in prognosticating without telling you what's in my portfolio) - I'm 100% long and all in, equities only. I could be wrong short term but I don't care, many stocks are in a bear market already and I'm doing everything I can to snap up bargains. if they get cheaper, I'll keep buying. see you on the other side kiddies
I'm 100% long too. I don't disagree about the long term. Tax-advantaged accounts are one thing, but if you're looking at the medium term (say, buying property down the road) the picture is less clear.
Boring answer but just sticking to a model and dollar cost averaging in at cheaper levels.
Just put on some URA.
what model is that?
I loosely follow the Growth Model from The Independent Adviser for Vanguard Investors since three of my accounts live at Vanguard. I think its like $180/yr and I just like having something to reference to.
That model looks like this:
Capital Opportunity (VHCOX) - 33%
Div Growth (VDIGX) - 28%
Intl Growth (VWIGX) - 15%
MidCaps (VO) - 15%
Healthcare (VHT) - 8%
ST Funds - 2%
https://adviseronline.investorplace.com/
Loading 401k contributions up front to fully max out by end of this month. Wanting to get in as soon as possible as once Ukraine is resolved (and this wont linger for 12 more months) the market is in good shape to rally. COVID is unofficially officially over
Good tech companies remain a nice buy. If you can stomach in - Meta. If you cant - Amazon. But boring here still and buying equities. Remember, long term you will want to be in the market to fight inflation. You might lose money this year or in short term, but long term it's a great inflation hedge if you cant get into real estate, which is also inflated.
Good call on 401k front loading. I increased my contributions the other week to buy more of the dip. Perhaps I’ll increase again, as I also think this Ukraine thing will blow ever and markets will rally into the summer even with rate hikes. If not, at least the companies I’m investing in are somewhat able to pass off inflationary costs.
What's amazing to me is Covid is basically 100% over. Restrictions, regulations, it's position in our mental space - everything. IMO this , and increase consumption that will come with it, hasn't been priced in yet. We saw knee jerk reactions for Omicron and Delta - but nothing yet for this finally getting behind us?
Markets were too frothy for sure and looked for a reason to drop the last few months. But long term this Ukraine invasion will prove to be a nothingburger in terms of investing. Market might still be turbulent but see a great bull case rally starting this summer
100% BTI and MO
bought to hold forever
dividend stocks should be a good play in next 5 years IMO as investors chase yield
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staying the course generally with DCA. Bought some more SPG yesterday .. with 5% dividend yield i'll take that in this mkt
I DCA into index funds in my retirement savings. Outside of retirement account, I have a lot invested in stablecoins currently.
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