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@peter_aka_00avenger00 Somebody doesn't understand investing

@peter_aka_00avenger00 So you basically ate a negative ROI over 2000-2010 and you got lucky by DCA-ing before the largest bull run in history. Doesn't sound like something you should be basing advice for other people on.

@peter_aka_00avenger00 Then you were holding bonds or international. The C fund traded flat over that time period.

@peter_aka_00avenger00 Yes and no. The C Fund only covers US large caps. You get no international or small cap exposure. It also leaves you very exposed to sequence risk which would have killed you between 2000 and 2010. The only people who should be 100% equities are the ones who can...

@mrogers It's better than having everything in the g fund but yeah you're missing out on a ton of gains because half your portfolio is in the g fund.

@naomi Not necessarily, bonds create predictable cash flow and help to mitigate downturns which help you in markets where equities underperform. Even with low yields, they offer a diversification benefit and a rebalancing bonus in addition to negative correlation to equities creating a more...

@peter_aka_00avenger00 That's not how that works. You don't deduct 100% of the interest. You deduct the interest against your gains, reducing your taxable income. You're still paying the interest and gains taxes.

@peter_aka_00avenger00 https://www.schwab.com/margin/margin-rates-and-requirements This is going to be your standard discount brokerage margin rate. That means you are paying 12% annually on every borrowed dollar. It will take appreciation (price+dividend reinvestment) of 12%+ to offset that...

@peter_aka_00avenger00 Right, let's pull out margin and pay 12% interest to go long on dividend stocks... What could go wrong lol Also you have no idea what you're talking about. Bond index funds have been a thing for a very long time and the classic 60/40 portfolio was frequently used with...

@naomi Interesting, no bond allocation?

@peter_aka_00avenger00 Not at all, this is all accounted for. Your proposal requires a retiree to massively adjust their lifestyle in response to market while risking their legacy and future income. I am not against the intelligent use of leverage in retirement but your proposal is not that...

@siesaw23 You should be in the lifecycle fund unless you have a compelling reason for deviating from that. The following are not good reasons... "insert fund fund performed really well this insert time period." Past performance does not guarantee future performance, especially when it comes to...

@peter_aka_00avenger00 https://investingforaliving.us/2010/11/18/the-worst-times-to-retire-in-history/#:~:text=The%20worst%20times%20to%20retiree%20for%20the%20majority,which%20destroyed%20the%20purchasing%20power%20of%20their%20portfolios. Any of these periods would have left a brand new...

@peter_aka_00avenger00 The f fund is not necessarily a scam, you are buying a total bond market fund. Yes the G fund is better as a short-term fixed interest instrument without any credit risk but that same credit risk can swing to the upside as well. You do realize, the priorities of a...

@peter_aka_00avenger00 Until you get hit with a huge crash near retirement and lose 30% of your gains.

@peter_aka_00avenger00 Somebody doesn't understand life cycle investing lol

@cbc8171 Can you please just make a sticky explaining this? I'm getting tired of trying to explain why 100% C fund is not the right answer. Further, we have a lot of young soldiers here getting bad advice from well-intentioned users so spelling it out for everyone would be a good idea.

@gentlesheepman It never included China. And yes, the recent out performance of the US market is so statistically (and fundamentally) unlikely it's practically impossible. With a regression to the mean, the S&P will return far less while international will pick up.

@gentlesheepman The I fund tracks developed markets which will have similar historical returns to the S&P 500. If you run a regression to the 1920s, this holds true despite the crazy outperformance over the last decade of the S&P. You are referring to emerging markets exposure, which include...

@cbc8171 It's only a minority opinion on /r/militaryfinance. If you pop over to bogleheads they discuss this all the time.