Our portfolios are in Schwab’s “Intelligent Income” robo-investing tool. The robot advisor reviews things regularly and does periodic buying and selling throughout the year to keep things balanced according to our risk tolerance. The program permits you to pay to keep a human advisor available in case you need hand-holding. We’ve been doing this, but I think we might stop, as the robo-investing tool seems to be doing very well without any human intervention.
But my husband has a big chunk of stock from his last employer, and that’s held outside of our IRAs. It keeps growing in value, and I’m nervous that a large-ish percentage of our net value is in the form of one security. I keep hinting he should sell a bit and diversity, but he proves me wrong by sitting on it and it keeps going up. Fingers crossed.
Most of it is in CDs, but yeah, ready cash if I need it. There is enough (plus retirement income) that I will not spend it before I’m dead. Between Medicare and retired military medical insurance, there should not be any medical expenses to break the bank. Yes, I know how fortunate I am compared to many.
It’s not a competition. I have 17 years worth of State retirement and another 15 years in the private sector with IRAs and 401k’s and the retirement guy’s spreadsheet has us living to 95 and not touching the principal.
If bad things happen, it’ll happen to an awful lot of us. and if it doesn’t, my biggest concern my estimates won’t how-strip inflation. But again, if that happens, it’s just not my little family feeling the pinch.
Just curious- what’s its 5 year annual return? Because you might find you would have been better off with it somewhere else.
And you’re right to be nervous. It’s sketchy to have so much wealth in one thing. The VeryBigCo I used to work for gave out a fair bit of stock. And I’ve watched it go from $80-ish to $48 over the past year. It can happen fast.
I have brought up more than once to Mr. brown the wisdom of selling some of his stock and placing the proceeds in something conservative and stable. I try to explain the philosophy of diversification and that it’s the conventional wisdom when investing, especially if you’re retired and are trying to dial back risk. But it’s his stock, and he’s rather addicted to the excitement of the risk. And the stock has gone up very well indeed since he retired, thus making me look like a woman-splaining worry-wart.
I just calculated: one-quarter of our financial net worth is in the form of this one stock. Without revealing too much I ask that everyone here keep buying a very popular brand of smartphone, please.
ETA: Oh, to answer your question about its five-year return: 259%.
All i ever invest in is mutual funds, maybe as i get closer to retirement age i would rebalance towards bonds but everything I’ve ever read says mutual funds will outperform anything else given time.