Paid off the mortgage on my house. I did have other stocks besides us total market to try to diversify — reit index (VNQ), small cap value (VBR), small cap international (VSS) and total international (VXUS). In a crash all correlations tend to go to 1 so I don’t expect this diversity will help in a crash but hopefully will give some return if the s&p 500 has a period of low returns.
No personal experience as a real estate investor, but to make the big returns you need to use leverage. Since you are in your early 50s from what I remember of your other threads likely not worth it. I think it’s possible to make a lot of money in real estate (more than index funds with leverage) but at the cost of increased complexity and risk.
If I were you I’d look at derisking by buying a tips ladder, perhaps just until 70 when social security starts (defer to 70 for an income stream not at risk with market crashes) or maybe longer. Either that or have more t bills (but at the likely cost of returns) — you could increase bonds from 10% to 30% and t bills gives no interest rate risk.
No personal experience as a real estate investor, but to make the big returns you need to use leverage. Since you are in your early 50s from what I remember of your other threads likely not worth it. I think it’s possible to make a lot of money in real estate (more than index funds with leverage) but at the cost of increased complexity and risk.
If I were you I’d look at derisking by buying a tips ladder, perhaps just until 70 when social security starts (defer to 70 for an income stream not at risk with market crashes) or maybe longer. Either that or have more t bills (but at the likely cost of returns) — you could increase bonds from 10% to 30% and t bills gives no interest rate risk.
Statistics: Posted by er999 — Mon May 06, 2024 12:07 pm