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  1. #1

    S&P 500 Risk Reward

    I am 5 years from retirement. Have been investing in growth stocks and stock funds for Over a decade but find that I have not done better than S&P 500 overall. So, I am feeling why not put everything in S&P500 (large cap). It looks too simplistic and do not know the pitfalls. Has somebody thought about it ? Shall appreciate your opinion on the risk reward for next 10 years during which I do not need anything to withdraw. Or any other suggestions for an average of 8 to 10 percent return which has eluded me so far

  2. #2
    You fail to mention much info. With that, you should probably go with an allocation fund with experience. VWINX, VWELX come to mind depending on your risk tolerance.

  3. #3
    OP: "...So, I am feeling why not put everything in S&P500 (large cap)..."
    Putting "everything" into any one thing is generally a bad thought. Maybe think again?
    If you can't get past that thought, perhaps at least tone down the volatility with the likes of SPLV and/or a bond sleeve.

  4. #4
    OTOH? If this is What I call , Extra $ & you are certain you will never need? ( Maybe For some Windfall /Inheritance $ as well)
    And you have Experience From Investing over the Previous yrs?
    Why NOT?
    -Espeically what else would oyu do with it? Waste $50k on some car ? taht will Depreciate over the next 5 yrs?
    -Give it away to some Charities , taht will eat up over 75% of it paying themselves over paid Salaries? ( I will be leaving some to some charities, but only AFTER I'm Gone with the wind and certainly won't need it )
    -Historically has the S&P 500 Index done better than anyother of YOUR Investments?
    -Take the Worst of times ( Like 87', 00-02' and of course 08') and not just what their Yrly Losses were, but Their Bottoms as well
    - Ave them out to get a Idea of what to expect in the future and that happening every 5 yrs !
    -and what Woould/Will you do when that happens? Or Do nothing at all and just let it ride, having the Faith it will Recover and make the Most vs you other options ..
    -If Building Wealth to leave to Heirs/Legacy? I have such an account and its invested per Their Ages, not mine..
    -I also invest my Equity stocks and the S&P on Margin as well using some newer levereage ETF's, To get More Bang for my buck and For part of my R&D investing..( all wih Extra $ )
    some links about Leveraging

  5. #5
    What I remember from the past is that during the bull market the S&P 500 does so well it becomes "the best game in town" and when the bear becomes "the worst game in town"
    stillers offers good advice. Maybe USMV? fishingrod is right on too with the balanced fund choices from Vanguard. VWELX for more stock exposure and VWINX for more bond exposure. Whichever you prefer.


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