You are being too kind.
You told me more than most advisers have on the phone.I am not a individual FA, so I don't know the minutia of the tax rules, but everyone talked about it on the another thread so I will leave that alone.
I dealt with large pension manager, but we can play this out for fun. They need like 6.75-7.25% for meet liabilities.
You: I have two years to retirement. I want 5-6% returns with risk, but minimal risk
Me: Don't we all.?
You: What do you mean?
Me: What is your definition of "minimal"? I assume you are not a fan of equities if they drop 10% in a day. You can buy a two year Treasury to yield 0.3%, Apple bond AA+ rated to yield 0.80%. Two year CD will get you about 1.3%. Some Revenue Muni bonds will bring you 1.5%. I can get you 2-2.25% on Mortgage backed (FNMA, GNMA, etc), but you take on duration and convexity risk plus the recently announced forebearance requests went up 2000%, so the market is a little "in flux" right now. So 5-6% is wishful thinking. Basically impossible without equities. You can build a hedged equity portfolio own the S&P at $273, but an at the money hedge (270 strike) for June 2021 is $28 (10%). You get all the upside and very little downside over the next year, but it cost you 10%.
You: WTF! You suck!
Go Marathon go!! up 20% since purchase
I get conflicting feelings on these stories. I hear other stories he is sitting on a pile of cash waiting to buy in like after selling a ton of airline stocks.. I know he says a lot about buying good stocks with DIVs and let them grow but the guy has to buy and sell otherwise he would never beat the S&P correct?? Is he a do as I say and not do as I do guy?As with Politics, if you're looking for news tailored to your desired vision, you'll read that news and it will be prophetic! "Like OMG!"
Others are not so KoolAid addicted.
Same with the stock market.
With that said, I came across this article fitting thread title. Take as you would like.
Should You Buy Stocks Now or Wait? Here's Buffett's Advice. | The Motley Fool
With the S&P 500 down sharply from recent highs during this coronavirus market crash, is now the time to invest?www.fool.com
FWIW, I don't think Buffet's model can be matched by individual investors, even if they read all of his insights.
Preferreds with a warrant (call option) kicker. He gets the warrant for practically free and that is where most of the gains come from.
Way over my head...... So you say he can buy stuff that we can't? Is this why I can't buy Sunoco in my 401K?
Basically. When the wolves are at the door, companies call Buffett. He not only gets to say Yes or No, but he gets to set the terms. The article below shows a good example of how he makes his money. Sitting on a huge chunk of cash for years would kill any other investor.
Yup - the big financiers don't make their wealth by timing the market (which countless data shows doesn't work), but by doing deals the average person can't. I am not suggesting insider trading, "a rigged game" or wrong doing, just that when you have billions to offer a target you get different terms than when you are trying to find a home for $50,000 out of your 401k.
