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I keep saying that , and trying to get across that what you do and how you allocate have to make sense for the income level you hope to draw. Blindly pulling out of equities or trying to pick when to be in or out is a foolish game.
You need to find the allocation range that has a high success rate for the draw you want and call it a day. Thinking you will know when to get in or out can put you in the failed retirement grave yard.
The biggest gains happen in a downturn long before anything looks different . Miss those because you think it is a sucker rally and your outcome can be very different after you finally manage to get yourself in
I keep saying that , and trying to get across that what you do and how you allocate have to make sense for the income level you hope to draw. Blindly pulling out of equities or trying to pick when to be in or out is a foolish game.
You need to find the allocation range that has a high success rate for the draw you want and call it a day. Thinking you will know when to get in or out can put you in the failed retirement grave yard.
The biggest gains happen in a downturn long before anything looks different . Miss those because you think it is a sucker rally and your outcome can be very different after you finally manage to get yourself in
No one has advocated taking long-term money out of the market. But if you have a short time horizon, and will need this money, your money should be invested more conservatively, as you do with yours by putting it in FG&I's income model.
You keep saying the same thing over and over but despite the fact i store my funds in two compartments they are a normal 50/50 balanced fund i spend from yearly .
I just store them separated a certain way but that is all it is as a whole . It is a balanced portfolio that is 50/50
I could just as easily call it one portfolio made up of all the funds
You keep saying the same thing over and over but despite the fact i store my funds in two compartments they are a normal 50/50 balanced fund i spend from yearly .
I just store them separated a certain way but that is all it is as a whole . It is a balanced portfolio that is 50/50
I could just as easily call it one portfolio madecup ofcall the funds
But you have said you take withdrawals from funds invested in the income model, which is NOT in equities.
Trump just named Chinese products with imposed tariffs. I'm afraid this is not going to end well. Where are all the Republican legislators that believe in free trade?
The income model is 25% equities , the growth and income model runs 60-70% equities. I could just do the growth and income model and sell the exact same bond funds to raise cash .
At the end of the day it is bonds that will be sold if stocks plunge . Other wise if everything is up it is bits of stocks and bonds get reallocated.
It is a 50/50 mix . I just split it up in two pockets but the allocation does not change because i split it in 2.
It is like you arguing that if i put my stocks in one bucket and the bonds in another that i am not selling off from a balanced portfolio because i am selling bonds to provide short term income
In the interest of preserving retirement assets, I'm curious to hear your ideas about the stock market. Have we reached the end of a 9 year bull run? What indicators do you look for to make adjustments? Do you stay invested all the time or do you try to time the markets?
On any given day, Yahoo Finance will run conflicting articles about market direction. One article will be upbeat and another will herald the impending financial apocalypse. It's hard to know who to believe.
Today is the first day of the new quarter and it looks like it's going to be a down day. Hope the rest of the week/quarter/year is better.
Cheers!
Looks like the end of the bull, but that doesn't mean there won't end up being a profit this year.
I have quite a bit not invested...I was slow to invest (long story), then the market got so high the last couple of years, so I gradually bought a few things but didn't go all in. When it got so high, I didn't want to invest and risk a correction afterwards. So I have a lot of dry powder, as they say...waiting for the big kahuna correction.
I've set up a part of my pf as a dividend/income one, so that even in bad times, I continue to get a certain amt of money. It's not a lot, but enough to get by, with my SS, and not have to sell anything when the market is down.
I'm not buying all in yet. But I am starting to buy a bit of this or that...big blue chips with dividends, pretty safe, dividend aristocrats.
But I'm waiting for a bottom or for things to settle down, so we know what's what. I read that a big earnings season is coming up; earnings should be good, so that might settle the market down.
The income model is 25% equities , the growth and income model runs 60-70% equities. I could just do the growth and income model and sell the exact same bond funds to raise cash .
At the end of the day it is bonds that will be sold if stocks plunge . Other wise if everything is up it is bits of stocks and bonds get reallocated.
It is a 50/50 mix . I just split it up in two pockets but the allocation does not change because i split it in 2.
It is like you arguing that if i put my stocks in one bucket and the bonds in another that i am not selling off from a balanced portfolio because i am selling bonds to provide short term income
What is your plan if both stocks and bonds plunge?
Trump just named Chinese products with imposed tariffs. I'm afraid this is not going to end well. Where are all the Republican legislators that believe in free trade?
No problem to stress about. Aren't we "winning?" POTUS knows more than the Generals and Scientists. I bet he knows more than Global Economists. At least the Chinese know to target certain states like Iowa and Kentucky. So much "winning!"
Last edited by Rastafellow; 04-04-2018 at 01:55 PM..
Reason: add text
What is your plan if both stocks and bonds plunge?
my bonds ain't plunging , they range from extra ultra short to intermediate . the ultra short moved down a penny since rates starting going back up years ago .
the bond side is not a concern at all . that has a big enough position to allow the intermediates to break even as the lower rate bonds get replaced by higher paying ones and interest flow picks up offsetting nav drops .
odds are if stocks plunge far enough to be a concern then there will be a flight to bonds as typically happens and bond rates reverse .
it is silly to play what if's.,
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Hope the rest of the week/quarter/year is better.
POTUS knows more than the Generals and Scientists. I bet he knows more than Global Economists. At least the Chinese know to target certain states like Iowa and Kentucky. So much "winning!"
