Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: SeeksQuality who wrote (7843)	8/10/2024 11:21:52 AM
From: chowder	1 Recommendation Recommended By Richard_IFI Read Replies (2) \| Respond to of 22121

Re: I don't have a clear sense of the relationship between yield and total return for portfolios like Chowder is describing. He is great about sharing yield numbers, but the total return numbers are harder to figure out. I have a portfolio that yields 10.29%. This portfolio "is not" designed to beat the market. It is designed to provide income and maintain a respectable amount of capital growth. It is not a passively managed portfolio. It is actively managed, where I'm always looking for some semblance of momentum, even with high yield assets. Annualized numbers listed below. YTD this portfolio is showing +13.03% while the S&P 500 is showing +16.70%. (Numbers end of July according to Fidelity) The one year looks terrible when compared to the S&P 500. A +14.89% gain with the S&P at +22.15%. I'm okay with that given the huge amount of income being generated. 3 Year, I'm looking at +6.07% to the S&P 500 at +9.60%. Anyway, since August 31, 2010 when this account was opened, the CAGR has been +10.59% and to be honest, that's more than I expected. I was hoping that given the high yields, I could keep it close to 8%. Some years are bad, others are good, but the income stream has always been reliable and increasing due to investor managed results. The portfolio is actively managed.

To: SeeksQuality who wrote (7843)	8/10/2024 11:26:41 AM
From: SoCalGal	Read Replies (1) \| Respond to of 22121

I think I understand what you're saying. So perhaps I should continue to keep that $35k in my 401k invested in short term CDs, even though interest rates are trending lower and possibly invest more future dividend income in short term CDs if I start drawing down a lot on the other accounts. That way the 401k is there for unexpected expenses. This is just so difficult because both future income and expenses are very hard to predict at the moment. Good luck with the health insurance. It's rather complicated when your income hits $100k or so. The subsidies seem to be based on national averages and so you are penalized for living in a high cost of living area. And then, there is an additional penalty that increases with income for having a plan that costs more than the second lowest silver plan. In California, the second lowest silver plan is a low cost HMO and the health insurers have drastically raised the prices of PPOs, so that none of them cost less than the silver HMO. At my age and health history, I'm not comfortable with HMO options, so we pay a lot.