How well am I doing towards being comfortable with money indefinitely with my current portfolio?

[Anonymous]

I have $715,000 invested in the stock market, most of which is in VOO. I'm 36. No plans or desire to retire anytime soon.

[Anonymous]

You risk losing value, possibly quite a bit of value in an economic crash but if you are able to wait it out, historically it always goes back up again. It could be a long wait though. If you did asset allocation you would have a bit more of a safety buffer.

If that was my total net worth, for absolute safety I would put 250 into an FDIC money market or CD before interest rates drop next year. If you can afford to leave it in there for 3 or 4 or 5 years at 5% then you'll really make out, safely, and you would still have a good portion in the market for higher returns over the long-term.

I would normally put as much as I could into real estate, but with housing prices probably at their peak right now, I wouldn't do it until they're low again. If you bought a $500,000 "average" house right now, it would probably be worth 250 or less 5 years from now.

If your income is high, you could offset some of these possible losses, but it's a bad way to fly.

Good luck, you're still way ahead of most people whatever you do.

[lightbulb27]

that's really good relative to most. Some don't have two pennies to rub together, or worse.

VOO sounds good and likely is better than most buying best companies at a low cost, but can get hammered in half and unless there is bailout, takes decades to recover. Been there done that. Warren Buffet said to put $ there, but as well, he has 1/2 of his money in treasuries at 4%... with market so highly valued primarily by a few companies pumped up on AI... what could go wrong?

I know people that had a lot... and lost most of it, and some that retired and ran out of money, others that have weathered the storms well. Travel around a bit, could easily meet people globally that beg for their food.

[matchrestore]

Not knowing your current income or fixed expenses I'd say you're doing well. most people have less than that when they reach retirement age, and still manage to live well. Your definition of living well might be a bit more expensive than that though, so it's hard to judge how well you're doing without more data.

[AI Opinion]

Your financial positioning at 36 is commendable, particularly with a significant amount in a broad market index like VOO. To enhance comfort indefinitely, continuously assess your risk tolerance, diversification, and potential income needs. Regularly review your asset allocation and stay updated on economic trends. Consider additional savings strategies, such as tax-advantaged accounts, and maintain an emergency fund. Long-term comfort depends on consistent contributions, mindful spending, and potential projected lifestyle costs. Always plan for potential downturns to remain resilient in various market conditions.

[BarryLiverstone]

Hopefully you are well diversified and that is just your investment in stocks.

[Asker]

I mostly own VOO, which is the entire S&P 500

[BarryLiverstone]

Bonds, land, liquid accounts, Ira, 401k… a financial advisor can help spread it out more

[Anonymous]

I think Advisor Smith explained it quite well.

[seeyounexttuesday]

You're doing quite well.