@pizzaman The topic of the thread is asset classes. I’m curious if you stick to the big one’s (stocks /bings/cash) or add any others, and why?
Sorry, I was not referring to the title of this thread even though that's what I said 🙄, but the gyrations of the posters trying to get PRC to track what they were trying to do. You see that in other threads too. Again nothing wrong with any of that, just not my thing.
For my asset classes, this is where I am presently (total of two regular IRAs, two Roth IRAs, two HSAs, taxable account):
60% in FZROX (Fidelity Zero Total US Market, zero costs & fees)
15% in zero coupon US Treasuries in a 2-12 year ladder
13% in FNILX (Fidelity Zero US Large Cap - Their version of the S&P 500 (zero costs & fees)
The rest in short term CDs, money market, a few small stakes in mutual funds from my early investment days, and the only individual stock I have left, Microsoft which I bought a long time ago at about $40/share. To bad I only bought $1,500 worth. About 60% of our stock holdings are in Roth's. That has been a great benefit! Right now my stock allocation is down to about 74%, probably my lowest level ever. As the stock market continues to hit record highs, I am adding to my US Treasury ladder.
In order for my retirement funds to last longer then me, I need stocks. Using the past 100 years of history, the best performing asset class over any 20 year time span is the US stock market, bar none. That's just simply the numbers. Stocks are the best hedge against inflation.
I went big into US Treasuries in October 2023 because their yields spiked up to levels not seen since 2008. They are a great hedge against entering a Bear Market early in retirement. I can talk more if you would like, big surprise there 😋
Apologies if I wasn’t clear, I meant are you more like Ted and I who stick mostly to the default asset classes in pralana, or more like Gaby who models 12 asset classes? Given your penchant for simplicity I’m guessing the former. (My withdrawal methodology is a bit complex but i try to keep my modeling simple.)
Got it. That's one of the downsides of communicating via keyboard, sometimes it's hard to decern a person's intent or meaning. That's why I try to use emojis, but my wife said they can be misunderstood too. O' well. I try to assume the best intent from others!
Anyway, I still use Gold so I don't have the option of tracking 12 classes, not that I would. So, I literally have only 3 asset classes, US stocks, US Treasuries, cash equivalent's.
@pizzaman Aside: at first i thought by "I still use Gold" you were referring to the actual metal, not the Pralana product, and wondered how you mapped gold to one of stocks, bonds, or cash. The capitalization should have been a clue 🙂
