Most Investors Focus on the Wrong Part of Their Portfolio — Vanguard’s Data Proves It

Comments · 892

• BI

  @billmurphy9921 · 6 months ago

  It's important to understand the math behind the volatility. If your $100k investment falls 40%, you now have to realize a 66% growth just to get back to $100k.

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• HA

  @harlanpepper489 · 6 months ago

  Just don’t sell when there is a market downturn.  It’s not a “loss”.  You still own the shares.   It’s a temporary decrease in price.  Just wait.  If you are retired it’s different.

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• OT

  @OttoAchen · 3 months ago

  This video is one more example of how Erin introduces and reminds viewers on the MEANINGFULNESS that surrounds creating, building and maintaining a financial portfolio. It’s more than about the amount of money.

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• FR

  @frankish5314 · 6 months ago

  Reminds me of Fidelity's claim that the best performing portfolios belong to investors who are dead!..:)

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• ST

  @stephenholcomb9278 · 6 months ago

  I LOVE this chart from Vanguard and it is featured prominently in my overall retirement plan.  70/30 all the way!

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• DE

  @Deirik13 · 6 months ago

  I am 64 with 65% stocks, 35% fixed (SGOV, some intermediate corp bonds and MM).  We plan on taking our SS at 67($5k/month), then factor that into my fixed and transition to 80/20 for the balance of my years.  Between SS and 20% fixed I will be able to ride out 5-7 year market downturn.  Also plan to Roth convert through the 22% tax bracket until 75 to moderate RMD’s.  And yes, the ultimate key is sticking to the plan.  Great video!

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• OU

  @outtasight5457 · 6 months ago

  "Greater risk of abandoning the plan at the wrong time." This is key. If the volatility can't be handled emotionally, bad things happen when someone panics and locks in the losses forever.

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• IS

  @Isaiah41.13 · 6 months ago

  This is why you need to be investing aggressively in your younger years (30s, 40s, 50s) and then start to taper off or begin have non-leveraged instruments and slower investments that are more stable (like you mentioned, bonds or dividend ETFs) so you can KEEP your money as you age and use it to fund your bills. <br><br>As Solomon would say, &quot;A season for everything&quot;.. there is a time to go all-in HEAVY and AGGRESSIVE, then downshift and coast mode.

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• RE

  @rebeltheharem7028 · 6 months ago

  I&apos;ll stick to my 95% stock portfolio, and 5% cash, simply because if you follow the research, you should never have bonds because they never beat inflation. And the cash is for opportunistic events and my e-fund.

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• JE

  @JethroXP · 6 months ago (edited)

  I&apos;m still in my 50&apos;s, retired six months ago. &nbsp;I&apos;m currently 83/17 equities/fixed. &nbsp;That mix will likely change over time, but right now I am focused on maintaining solid gains because I expect my portfolio will need to last longer than it would had I retired later, in my 60s. &nbsp;I also remember how, in 2022, my portfolio did drop $500k, and while that was scary, I also knew we didn&apos;t need it yet, and because I was still doing dollar-cost-averaging investing, I comforted myself that I was buying on sale. &nbsp;Now the 17% fixed portion of my portfolio is what insulates me from market downturns. &nbsp;They will still be scary, but if I can maintain 3-5 years of fixed assets to live on I should be able to navigate future downturns without having to sell in a down market.

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• JA

  @jasontripp7163 · 6 months ago

  Since I have a large pension, I believe my stock portfolio should be 100% stock. My pension covers all of my bills and expenses.

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• MA

  @marksoutham2481 · 6 months ago

  Your lipstick is fine, and speaking for myself only, I wouldn’t have noticed anyways - sorry!<br><br>I rode my 401k at about an 80% stock, 20% bond mix for 35+ years, and you’re right…the dramatic value swings were tough to see. But I’m glad that i stayed hands off for the duration and just let it ride. I kept quiet when coworkers freaked out at big drops, bailed out of stocks and then complained when it took forever to “catch up”.<br><br>I retired about five months ago…and chose to move my 401k to rollover IRA about a month after. At that time, I shifted to a 60% stock, 40% bond mix just to try to ease off the risk and “big swings”… and so far so good. The latest market dump in March isn’t good to see but my drop has been modest so far - so despite paying myself each month, I’m still up overall…. <br><br>I have no idea how all this will sort out regarding retirement, but thanks Erin for all the great content. Maybe old dogs can learn new tricks!

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