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Anyone a CFP as a side hustle?
Decided to payoff my mortgage.
Sooo AMC.. who’s in?
😂
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Mentor
S&P is up 16%. That’s higher than average, but very much within usual variance.
Your extra 14% is a combination of savings and over/under-performance vs S&P.
As your portfolio size increases your NW is increasingly driven by the market.
It can be a bit scary yes. Not looking forward to the -20% years that will happen at some point.
Most investors underperform the market because they get scared and try to time the market.
Coach
Don't count on the current historic run rates continuing. There will be a reckoning at some point - maybe 6 months, maybe 2 years, no one knows. I wouldn't be changing my retirement date or other plans just because it is really good right now. I'm older than many on this thread and lived through the dotcom run-up where I saw my stock market investments surge upward. I'm on track to retire next year (while still in my 50s), and the fact that I am way above my FIRE numbers now doesn't change that. I have been doing some rebalancing to protect some of my paper gains, but I don't believe in trying to time the market.
Think about the job market immediately post-covid to now's lousy market, and you should have a pretty good idea of what to expect from the market longer term. It won't stay this way for long. Enjoy it while it lasts.
Thanks! That’s amazing - congrats and good luck as you jump into retirement!!
We’re having an historic run which is exciting but also scary . Just stick to your plan and make sure you’re careful with any money you may need in the short term as it can be impacted if there is a downturn. Otherwise, just keep on investing consistent with your allocation
Pretty much the same. I am able to save around $100k total from my salary / bonus, 401k is up 18%, personal investment account is up 50%. Ends up coming out to around 32% total gain in net worth.
Doesn’t scare me, I just know there will be tougher years to weather coming.
If you are planning to retire in the next few years, before you retire, you must have about three years of living expenses in safe cash equivalents like HYSA or Treasuries. This is because during the GFC years of 2007-2008, those at retirement age who did not have cash equivalents were forced to sell into a down, falling market and sacrifice their hard earned investments for a fraction of their pre crash value. The S&P 500 lost about 50% of its value.
You probably are a good candidate for a TIPS ladder. Plenty of discussion on Bogleheads about it. It is the closest thing to a risk-free return possible.
This year my investment gains are close to ten times my salary. So yeah, feels crazy and I’m now contemplating protecting those gains by moving into fixed assets. However, it’s painful to see the much lower growth rates compared to the growth part of my portfolio. I sold half my Palantir earlier only to see it double again and recently sold half again. 200 PE ratio is a bit flying too close to the sun.
Hindsight investing isn’t a thing so you did right by locking in ridiculous gains.
Coach
D your in a good spot with those investments. Real estate hasn't really moved in the last 3 years. So your making out like a bandit right now vs everyone else who is trying to build wealth with buying rentals.
We'll see what happens to housing as rates come back down though
Subject Expert
Take the risks, and your feelings, into account as you decide your allocation.