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RTNL
Re: Risk

Thanks Jrinne

Jan 18, 2022 8:13:03 AM       
RTNL
Re: Risk

I don't use high turnover portfolios in my taxable account. As far as trading costs go if the security is liquid enough relative to your position size it should be minimal.


Thanks. Can you quantify this please?

Jan 18, 2022 9:12:42 AM       
sgmd01
Re: Risk

I use ETFs in my taxable account with minimal turnover and tax loss harvesting.

Jan 18, 2022 10:05:25 AM       
sgmd01
Re: Risk

Not a fantasy world where you can cherry-pick any sim/port and imagine what would have happened if you were fully invested.



Hi Jim,

This is why I compare my entire account with a realistic benchmark (what most non active investors do) which are the ETFs: aor, aom, and aoa which returned 10.7, 6.8 and 14.7 % respectively in 2021 (and if they had an advisor their fees would be reduced by that amount). A 60/40 US stocks/bonds would have returned 15.8 % but that is a less realistic portfolio for most investors as they have an international component.

Scott

Jan 18, 2022 10:22:49 AM       
Edit 1 times, last edit by sgmd01 at Jan 18, 2022 10:23:10 AM
Jrinne
Re: Risk

Not a fantasy world where you can cherry-pick any sim/port and imagine what would have happened if you were fully invested.



Hi Jim,

This is why I compare my entire account with a realistic benchmark (what most non active investors do) which are the ETFs: aor, aom, and aoa which returned 10.7, 6.8 and 14.7 % respectively in 2021 (and if they had an advisor their fees would be reduced by that amount). A 60/40 US stocks/bonds would have returned 15.8 % but that is a less realistic portfolio for most investors as they have an international component.

Scott

Hi Scott,

So, I would say of the ETFs you mentioned AOA might be an appropriate benchmark for me as I do hold bonds or rather leveraged bond futures. And it is probably fair to use the adjective "aggressive" as in the phrase "aggressive bond fund" to describe my portfolio. I say this because of the leverage if nothing else.

I did beat AOA (iShares Core Aggressive Allocation ETF) last year as well as Fidelity's benchmark: "Index Blend 85% Stocks "

Obviously, I do not understand much about your portfolio but is sounds like we might be on the same page or at least in the same ballpark.

Thank you.

Best,

Jim

Great theory, "and yet it moves."
-Quote attributed to Galileo Galilei (1564-1642) gets my personal award for the best real-world use of an indirect proof or reductio ad absurdum.
`

Jan 18, 2022 11:43:23 AM       
Edit 4 times, last edit by Jrinne at Jan 18, 2022 12:06:29 PM
RTNL
Re: Risk

I use ETFs in my taxable account with minimal turnover and tax loss harvesting.


I was not clear in my question. How do you quantify "liquid enough" is what I meant. Thanks for replying.

Jan 18, 2022 6:09:51 PM       
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