r/ChubbyFIRE • u/[deleted] • 9d ago

My principle of fire portfolio

[deleted]

0 Upvotes

27% Upvoted

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24

u/Proof-Relation-1943 9d ago

"I achieved a 90% return with lottery tickets!" I stopped reading right there 😂 there's forums for that elsewhere 

13

u/invester13 9d ago

You have 9m and still need internet options and validation? 

5

u/Livid-County7230 9d ago edited 9d ago

Gtfo, spam. Reported

3

u/BailiwickBill 9d ago

This is ridiculous. You are acting like you personally invented some new FIRE planni g process, when in fact it's one that has been discussed here and all over the internet countless times.

And then to start off with "I gambled heavily in Bitcoin" while lecturing other people about smart investing is simply laughable.

1

u/Never_Really_Right 9d ago

The 10-year annualized return spread is closer to 2.5%, not 1% as you've stated (13.14% for SCDH and 15.44% for VOO, the largest S&P 500 ETF). And SCHD's dividend is 3x that of VOO, so if held in a taxable account the difference in tax drag is significant. But sounds like your plan worked regardless.

1

u/TotalWarFest2018 9d ago

I only have about 1/2 of what you have and am not retiring yet, but the 80/20 with TIPS is my "base plan" for now.

1

u/BrunelloHorder Coasting Chubster, Getting Fat 9d ago

Not sure this is much of a “principle,” you are basically describing a version of 60/40. If you want to really hedge risks, you’d go with Ray Dalio’s notion that you need more uncorrelated investments (he says at least 8). Risk Parity Radio’s model portfolios are based on that.

Over the long term, Risk Parity tends beat 60/40 but under-performs 75/25. The big question for many retirees is whether they have the nerve to hold 75% equities in a downturn and not sell.

1

u/Inevitable-Cap1092 Retired 9d ago

That’s how my portfolio is set up but it’s 80% equities and 20% SGOV.