Money and Investing (formerly Pfizer Stock prices)
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I will when I get a chance. I have to color it a bit so I don't iD myself to the world. I have non-mongers I used to work with and we know about our investments we made them at same time and discussed in detail.
The way I figures my gain is I went to mybrokerage account where all my investments are and looked at total value on Jan 1 2021 and final value on Dec 31, 2021 and figure % gain. So it includes cap gain, interest, dividends and cash. Does not include T Savings and working cash in savings and checking. Not chump change but I don't considerate part of my investments — only my brokerage accounts.
Thinking about it I retract influence of T Savings as I didn't account for RMD money that came out and went to FED & S taxes in mid Dec and that was > T Savings.. No new money went in.
The way I figures my gain is I went to mybrokerage account where all my investments are and looked at total value on Jan 1 2021 and final value on Dec 31, 2021 and figure % gain. So it includes cap gain, interest, dividends and cash. Does not include T Savings and working cash in savings and checking. Not chump change but I don't considerate part of my investments — only my brokerage accounts.
Thinking about it I retract influence of T Savings as I didn't account for RMD money that came out and went to FED & S taxes in mid Dec and that was > T Savings.. No new money went in.
A 60/40 mix of Russell 3000 and Barclays bond agg did 14.09% in 2021. So a portfolio taking this same risk should return the same in order to be compensated for its risk. While your portfolio looks diverse it's not as diverse as the R3000 on the stock side and I'm sure on the bond side as well. As such you should do better than 14%. Your 16% return seems like a fair risk adjusted return which is a conclusion I make based on this limited info.
If I am correct, the I bonds you are referring to are recalculated every month based on a combination of fed interest rates and fed estimated inflation. So while they may look very appealing today with basically no points that can change each month and will likely change very soon if the Fed does what they say they will do with interest rates. But for $10k it's a good option for most. And i agree always buy directly from the Fed site.
Well kind of difficult to explain in a post. I trade options regularly usually buying to open to augment a position I am long on or to hedge a position before earnings.
I also write calls and outs to generate additional cash flow. Utilities are always an early indicator of interest rate direction and so I am very comfortable writing calls against my positions with the goal of collecting about 1% in premium for a less than 30 days of decay and a strike price roughly 3% greater than my current price. My expectation is to keep the additional 1% premium for myself and not come near the strike price during that 30 days. Sure if I am confident my holdings are under pressure, I could sell them, incur the taxes on the sale, and miss dividends while waiting to buy back in at a lower price, but here I avoid the taxes, keep the dividends, and cushion the downturn.
if naked, it’s the same goal but I don’t own the underlying position so if I was in the money on the date of expiration I’d have to buy shares to surrender. If out of the money I’d just keep the premium.
if it’s a position that I am approaching a price where I can average down my purchase price I will start writing puts for a lower strike price than what is currently trading, collect the premium, and be pleased even if I am in the money on expiration because it’s a stock I don’t mind owning more of. If I am out of the money, great so I kept the premium.
on some more aggressive investments I will sometimes buy both the call and the put for the same strike before big news comes out and the exponential gains from a dramatic move in either direction will profit enough to cover the cost of both positions and still leave me a healthy profit.
options are a wonderful way to fine tune a portfolio but not all equities have a robust options market and it can be a bit of work to keep an eye on all of your positions.
during dramatic downturns like what we experienced 2 years ago I will go heavy on LEAPS which are long term options to maximize exposure to quality companies that I expect will bounce back within the next 18 months. I minimize my exposure to losses and maximize my exposure to gains.
there is more to it but that is a basic framework of what I like to do.
I also write calls and outs to generate additional cash flow. Utilities are always an early indicator of interest rate direction and so I am very comfortable writing calls against my positions with the goal of collecting about 1% in premium for a less than 30 days of decay and a strike price roughly 3% greater than my current price. My expectation is to keep the additional 1% premium for myself and not come near the strike price during that 30 days. Sure if I am confident my holdings are under pressure, I could sell them, incur the taxes on the sale, and miss dividends while waiting to buy back in at a lower price, but here I avoid the taxes, keep the dividends, and cushion the downturn.
if naked, it’s the same goal but I don’t own the underlying position so if I was in the money on the date of expiration I’d have to buy shares to surrender. If out of the money I’d just keep the premium.
if it’s a position that I am approaching a price where I can average down my purchase price I will start writing puts for a lower strike price than what is currently trading, collect the premium, and be pleased even if I am in the money on expiration because it’s a stock I don’t mind owning more of. If I am out of the money, great so I kept the premium.
on some more aggressive investments I will sometimes buy both the call and the put for the same strike before big news comes out and the exponential gains from a dramatic move in either direction will profit enough to cover the cost of both positions and still leave me a healthy profit.
options are a wonderful way to fine tune a portfolio but not all equities have a robust options market and it can be a bit of work to keep an eye on all of your positions.
during dramatic downturns like what we experienced 2 years ago I will go heavy on LEAPS which are long term options to maximize exposure to quality companies that I expect will bounce back within the next 18 months. I minimize my exposure to losses and maximize my exposure to gains.
there is more to it but that is a basic framework of what I like to do.
My feeling towards my FA-
I told you so!!
A month or two ago, I expressed my growing concerning that the markets were extremely overbought, accompanied with warning signs that a correction was imminent.. I asked her to reduce my equity exposure from appx 63% to 40%.. Was adamant that it is impossible to time the markets and reluctantly started to trim…We reduced by 5% in total.. A conversation was had and I was guilted into stopping the trim.
Hindsight says I should have gone with my gut- I am furious that I did not listen to myself, however I accept that I am not looking at 10 year horizon as well as thinking I had similar feelings last year at this time before the markets ran up..
For the pros out there…And it is a difficult question to ask.. Do I fire my FA and move on… I’ve been with the firm for 10 years and extremely satisfied with 1/1 service, keeping me disciplined, but feel performance has been just satisfactory
I told you so!!
A month or two ago, I expressed my growing concerning that the markets were extremely overbought, accompanied with warning signs that a correction was imminent.. I asked her to reduce my equity exposure from appx 63% to 40%.. Was adamant that it is impossible to time the markets and reluctantly started to trim…We reduced by 5% in total.. A conversation was had and I was guilted into stopping the trim.
Hindsight says I should have gone with my gut- I am furious that I did not listen to myself, however I accept that I am not looking at 10 year horizon as well as thinking I had similar feelings last year at this time before the markets ran up..
For the pros out there…And it is a difficult question to ask.. Do I fire my FA and move on… I’ve been with the firm for 10 years and extremely satisfied with 1/1 service, keeping me disciplined, but feel performance has been just satisfactory
My answer to your question is at the end of this post.
The thing about hindsight is that it the only prediction method that is 100% accurate. It is also useless.
IMHO (and my over 50 years as an investor — not a gambler — I've never bought a lottery ticket, sports bet, etc., other than the office Superbowl pools that involve zero prediction skills and are just for fun).
My tax guy last year asked me how much I have in equities a couple of years ago when he saw how much taxes I was paying in capital gain distributions and said "You should look to harvesting some of your loses this year to offset the gains"
To which I replied "I have no losses to harvest"
Back in the 70's I read this book by Burton Malkiel A Random Walk Down Wall Street. He is the guy who claimed that most investors would beat the "experts" by putting the stock pages of the WSJ on a wall and have a monkey throw 10 darts at it and buy those socks and hold them for the long term.
He presented the data to prove his point.
Jack Bogle agreed with him professionally and formed the 1st one in 1975 which was called as Bogle's Folly by the "experts". When he opened it the S&P was 90. It is now (even after the past couple weeks of losses) 4281. The $5K I put into it then is now worth (back of the envelope calculation) over 500K (with reinvested dividends). From that 1 small investment. I didn't figure in taxes paid on cap gain distributions (happens primarily whenever a company was removed from S&P 500 and replaced by another). The small fees charged aren't worth discussing.
So should you fire your FA?
If you think that your FA didn't advise you of the proper risk vs benefit at this stage in your life — then yes. Otherwise no.
Ps I last year I purchased the latest update book. They may have it in your public library or it's in paperback so not very expensive.
The thing about hindsight is that it the only prediction method that is 100% accurate. It is also useless.
IMHO (and my over 50 years as an investor — not a gambler — I've never bought a lottery ticket, sports bet, etc., other than the office Superbowl pools that involve zero prediction skills and are just for fun).
My tax guy last year asked me how much I have in equities a couple of years ago when he saw how much taxes I was paying in capital gain distributions and said "You should look to harvesting some of your loses this year to offset the gains"
To which I replied "I have no losses to harvest"
Back in the 70's I read this book by Burton Malkiel A Random Walk Down Wall Street. He is the guy who claimed that most investors would beat the "experts" by putting the stock pages of the WSJ on a wall and have a monkey throw 10 darts at it and buy those socks and hold them for the long term.
He presented the data to prove his point.
Jack Bogle agreed with him professionally and formed the 1st one in 1975 which was called as Bogle's Folly by the "experts". When he opened it the S&P was 90. It is now (even after the past couple weeks of losses) 4281. The $5K I put into it then is now worth (back of the envelope calculation) over 500K (with reinvested dividends). From that 1 small investment. I didn't figure in taxes paid on cap gain distributions (happens primarily whenever a company was removed from S&P 500 and replaced by another). The small fees charged aren't worth discussing.
So should you fire your FA?
If you think that your FA didn't advise you of the proper risk vs benefit at this stage in your life — then yes. Otherwise no.
Ps I last year I purchased the latest update book. They may have it in your public library or it's in paperback so not very expensive.