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Location: Was Midvalley Oregon; Now Eastside Seattle area
13,075 posts, read 7,519,082 times
Reputation: 9798
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Finally some one has asked whether OP's money is in deferred or in taxable vehicles.
Our Discretionary funds are 75% tax qualified; I trade in tax qualified and non qualified accounts. Most of my trading is in the qualified account. I hate taking losses in the qualified accounts because of this type of tax asymmetry.
If you must get more conservative, it should be at the margins. IE if your stock/bond allocation was 60/40 at the beginning of the year and now it's out of whack, you rebalance it back to where it was, maybe notch it a little more conservative to 55/45.
Being very black/white all-or-nothing about it is almost always a horrible idea.
All the previous market downturns, I was too lazy and neglectful to pull my retirement out of stocks, and then I kicked myself afterwards. But we did it today. Moved everything (which had all been in a very broad stock index fund) into money market. This is the longest bull market we've ever seen, and I don't see any justification for it.
Now I have to figure out where to invest the money in anticipation of a downturn, that will allow me to jump back into stocks 'when there's blood in the streets'. Yes, I'm trying to time the market.
Man, I leave for two weeks and the whole Internet goes berserk.
If you must get more conservative, it should be at the margins. IE if your stock/bond allocation was 60/40 at the beginning of the year and now it's out of whack, you rebalance it back to where it was, maybe notch it a little more conservative to 55/45.
Being very black/white all-or-nothing about it is almost always a horrible idea.
Why are people like to post black/white or nothing, what about 50 shades of grey or in between.
Black/White "all or nothing" thinking is rampant and it seems people have trouble thinking beyond the 2 extremes. We see examples of this often on the forums. It's an important lesson to learn in investing, and if someone needs to learn it the hard way in order to believe it, then have at it.
A 457b can certainly be “in” the market. It simply means that it is an employer sponsored retirement plan. So you have no market investments in that account, and you get 16k a year in interest? That’s a nice chunk of change to be sitting in cash...but if you are getting everything you need via interest, you are very fortunate.
Yeah, some people will call me a snob, but it makes me cringe when people say "I invested in an IRA" or something like that. It really shows that the don't understand basic investing concepts.
Location: Was Midvalley Oregon; Now Eastside Seattle area
13,075 posts, read 7,519,082 times
Reputation: 9798
^Perhaps too general of a statement?
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