DGI For The DIY

[fenders53]

(04-13-2021, 11:15 AM)ken-do-nim Wrote:

(04-13-2021, 10:25 AM)EricL Wrote:

(04-13-2021, 10:14 AM)ken-do-nim Wrote: Granted I have never built a retirement portfolio, but my understanding is that 5% can still be allocated to growth.  I think there is a huge difference between ARKW and gambling in Vegas, but there has to be an acceptable ETF that grows nicely.  VGT perhaps?  (Vanguard Information Technology)

XLK and XLV are the two funds I included to add a growth component to the portfolio. They've both produced better than double-digit annual returns over the last decade.

XLK top holdings: AAPL, MSFT, V, NVDA, MA, PYPL, INTC, ADBE, CRM, AVGO

I own six of the ten personally, and am comfortable with this list for my parents.

XLV top holdings: JNJ, UNH, ABT, ABBV, PFE, MRK, TMO, LLY, MDT, DHR

I own five of the ten, and again am quite comfortable with the list.

With a dad that is more worried about capital preservation than capital gains, I'm not interested in any more speculation than this.

I'm embarrassed that I completely missed seeing those two when I looked through the portfolio.  It's funny how when you don't recognize something, sometimes you mentally discount it.  Yes, those are great.  Well done.

I am just making conversation here.  

It would take hours to look at a portfolio like this and give sound advice.  He threw it out here for discussion over the course of days.  I give plenty of portfolio advice to others.  I try to be mindful what's appropriate for person who is putting their skin in the game.  We are all different risk bands.  On a scale Level #1 is a US treasury.  A safe and balanced ETF is a #3.  JNJ as in individual stock is a #4/5 still subject to a serious capital pullback in a bad market.  AVGO/AAPL is #6/7.  Triple leveraged and buying options is Level #10.  ARKW is right up there based on their holdings.

You seem comfortable with level 9/10 risk, at least when the bull is running.  I enjoyed some early retirement years because I stayed invested at level 7 with real money and most of the time my level 9/10 blew up on me eventually.  I may come off as very conservative but I am still invested at 5/6 risk level with just a bit of #8 thrown in.  My mother is at level 1.  She would stress losing any of her capital.  Eric should honestly assess where his parents are.  The overall port mix should not significantly exceed their risk tolerance.  This is supposed to be easy at retirement age but bonds checked out of the game and it will likely be years before they make good sense.  Averaging in makes sense because the ability to buy into some higher yields on a correction will take the sting out of some temporary capital loss.  But sector ETFs are prone to dip 30% with very little reasoning, and stay there for a year or more.  XLK is plenty of risk.  The upper limit for this port.  I think it will work out fine but we never know.