What are you invested in?

[Torie]

Outside of real estate (where most of my assets lie - maybe 75% of the total), about 60% in high quality short duration bonds, 40% in equities. Of the equities, 60% US, 40% ex-US, with about 5 to 6 times the normal market exposure to small cap companies (45% in small caps as compared to 8% for normal market exposure), and close to a  third more than the normal market weighting in favor of value companies over growth companies, two thirds value to one third growth, rather than half and half (hi Eugene Fama, how are you doing?   ). The theme here is to get risky with the equity side (as well as harvest that mysterious higher return for value), and get really safe with the bond side (including having a fair chunk in US treasuries, which are the one thing that does not get illiquid when Lehman type omega shocks hit the market).

Everything except for US treasuries, is in mutual funds, most with Vanguard (the place where expense ratios for me range from 5 basis points (1/20 of 1%), to about 25 basis points). I rarely trade or sell anything, othen than in extreme conditions (buy when equities are really low (big expected equity premium), sell when really high (low to none to negative expected equity premia (it was negative around 2000 with the IT bubble)), to change my equity exposure up or down some (not by more than 10% though). Some mutual funds I have held for near 20 years. Most everything not in the IRA, is also in highly tax efficient funds (index or tax managed funds), the exception being a small cap and a value foreign stock mutual fund, which are outside the IRA in order to harvest the foreign tax credits, which are lost in a tax deferred account.  I don't like paying capital gains taxes.

Vanguard tells me that my return for the last year overall has been 15.13%, having just looked it up. Sometimes I don't look that up for over a year or more.

I think that about sums it up.

Oh, a young person, with lots of expected human capital (has a secure high paying job that can be expected to continue), should be 100% in equities when, like now, market conditions, and the expected equity premia, are reasonably normal. A case can be made for such a person to go over 100%, buying on margin (negative bond exposure as it were), but I digress. For most people however, they should be at least 20% in bonds, until such time, if ever, as they are saving for their heirs, rather than themselves. That is my opinion anyway.

[Torie]

About half of Americans own stock, for the record. So let's drop the 1% nonsense on that issue.

Nonsense.  Less than 1% own any significant amount.  Your claim is absurd on its face - like saying 'poverty isn't a problem, because I know for a fact that poor people have dollar bills in their pockets'.

It is a fair point that the median net worth of Americans is rather shockingly low. Lots are invested in stocks (mostly through their pension plans), but the amounts are small. Part of that is of course wage stagnation at the lower end, but part of it is the consumerist culture. Everybody wants, the goodies, and they want them now, and buy them on credit, using credit cards with horrifically high interest rates. It's sad indeed.

[Torie]

This thread has been hijacked I see - yet another one bites the dust. Sad. 

[Torie]

Mutual funds have such high management fees that they make no sense to invest in unless they're part of a 401(k) plan that your employer is matching. If you're just investing on your own, the expense ratios for ETFs are far more reasonable.

Index funds.  I like Vanguard.  I'm in total market and the long term bond fund.  They have low expense ratios.

Long term bond fund, Lief?  Not worried about interest rates going up? I avoid anything but short durations like the plague myself.

[Torie]

About half of Americans own stock, for the record. So let's drop the 1% nonsense on that issue.

Nonsense.  Less than 1% own any significant amount.  Your claim is absurd on its face - like saying 'poverty isn't a problem, because I know for a fact that poor people have dollar bills in their pockets'.

Not only this, but most of the peasants who own one month's wages in a 401(k) (on which they are supposed to retire?) are older, and became employed back when jobs at least pretended to offer "retirement plans." What's the average age of Atlas Forum investors?

Torie is 62, Jachind is 41, and I'm 20. Are we missing anyone?

That rich kid, what's his name, Dukie.

Don't forget the smug Swede and bereft Beet.

Just because I have demonstrated that you were wrong about things doesn't make me anymore smug than reality.

In the several years that I have been a member of this forum, you have done no such thing. Your feeble strategy of shrill name calling has demonstrated nothing other than your supremely deficient character. The Forum would be a far better place without your presence, and you are the only active member for whom this is true.

To whom were you referring  again? I mean I thought ... Torie, stop it please, please stop! [insert crying symbol here]. 

The "only" active member? I'm hurt! 

Sorry, folks, the impulse was irresistible. I am but a flawed, sinning, defective, hubristic human being. Pray for me.