12-09-2019, 09:29 PM
(12-09-2019, 05:44 PM)NilesMike Wrote: Risk adjusted return is probably an important consideration, you are right.It has EVERYTHING to do with your age. I invested with my hair was on fire until I was 45. I looked like Rocky after the first ten years.
Now I am here preaching against it. I never stopped beating myself up for the bonehead risks I took. After a few decades I realized the value of learning those lessons when I only had $20K to lose. I shudder to think what losing $300K unnecessarily would feel like. I'll never discourage a young person from getting deep in equities. Just know when it's time to starting compartmentalizing some of your port.More on topic, DGI is a solid long-term strategy but adding some S&P500 and a few quality high growth stocks seems prudent. Here is my biggest fear for DGI investors, and that includes a lot of folks on this forum. I think there is a false sense of security that being all in on dividend growers is going to spare you pain in the next recession. Look at the PEs on some of the favorite consumer staples. It's delusional to think you aren't likely to lose half of your capital anyway, after you underperformed the market the ten years prior. Time will tell. I need to be less conservative though. A few more growth stocks would make sense in my port as long as I am prepared to ride out a 10 year wait for that part of my port to get back to even.