U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 08-21-2019, 08:02 AM
 
2,496 posts, read 2,132,278 times
Reputation: 5900

Advertisements

Quote:
Originally Posted by mathjak107 View Post
We all have our thoughts about what we think are safer times than others for equities... but I can say in my 30 plus years there never was a time the all clear was blown ....there was never a good time ...if we were falling then things appear to have no bottom ....

If we are starting to recover then it appears to be suckers rally ...if we are going up then stocks are over valued .

So we all have ways we eventually deal with this as we get closer to retirement ......

I was 100% equities my entire life until pre retirement ....then I went growth and income and a more balanced portfolio.

Today being retired I have my own method of dealing with volatility but I do draw the line in the sand with the equity allocation and hold at a min of 40% no matter what I think .

But I will add defensive assets with part of the bond budget at times ,like gold and long term treasuries...

You can raise their levels up or down as you see fit ....they can fly fighter cover over the equities...

In our case I have sold off quite a bit of the defensive assets as they rose 25-30% this year and put the money in to our fidelity insight income model up 9.19% ytd

I also run the fidelity insight growth and income model , up 13% ytd ,where I maintain a specific 7 figure balance working for me ..

When markets fall and I get to far below what I want to hold I shift some money from the income to growth and income model ....

When the growth and income model gets to far a head I shift some to the income portfolio.

By rebalancing based on dollars I donít predict but react to events after they actually play out and that has me buying more aggressive stuff in a dip and selling some off before the dip going the other way..

I would say we are at about 2/3 income model and 1/3 growth and income model ....when I include an s&p index fund that is not part of the models overall we are at about 40% equities .

So this has been pretty much the plan that works for us in retirement...
Doesn't all that shifting require some kind of at least trying to time the market as you never how far the fall will be?
Reply With Quote Quick reply to this message

 
Old 08-21-2019, 11:55 AM
DKM
 
Location: Thousand Oaks, CA
3,100 posts, read 1,111,033 times
Reputation: 2997
Bonds are already priced really high. Stocks can keep going up if earnings do but bonds? I think anything more than 20% in bonds is really risky.
Reply With Quote Quick reply to this message
 
Old 08-21-2019, 02:09 PM
 
Location: Rust'n in Tustin
2,472 posts, read 2,547,215 times
Reputation: 4832
A good portion of my portfolio is in precious metals. Mostly lead, specifically 9mm and .45.
Reply With Quote Quick reply to this message
 
Old 08-21-2019, 03:58 PM
 
73,580 posts, read 73,400,278 times
Reputation: 51172
Quote:
Originally Posted by jasperhobbs View Post
Doesn't all that shifting require some kind of at least trying to time the market as you never how far the fall will be?
No ,it is strictly dollar based ...if I want hypothetically a million in the growth and income model and it is at 1.20 that is not timing ...it is just rebalancing according to plan despite whether I think it it’s going up or down.

If markets fall and hypothetically the growth and income model falls lower to 800k I would move money in .....

I try to see about a 15% difference to trigger a rebalance
Reply With Quote Quick reply to this message
 
Old 08-21-2019, 03:59 PM
 
73,580 posts, read 73,400,278 times
Reputation: 51172
Quote:
Originally Posted by DKM View Post
Bonds are already priced really high. Stocks can keep going up if earnings do but bonds? I think anything more than 20% in bonds is really risky.
Bond types range from ultra short to long term ..you can never classify them all the same ....risky would not apply to shorter durations
Reply With Quote Quick reply to this message
 
Old 08-21-2019, 05:23 PM
 
2,496 posts, read 2,132,278 times
Reputation: 5900
Quote:
Originally Posted by mathjak107 View Post
No ,it is strictly dollar based ...if I want hypothetically a million in the growth and income model and it is at 1.20 that is not timing ...it is just rebalancing according to plan despite whether I think it itís going up or down.

If markets fall and hypothetically the growth and income model falls lower to 800k I would move money in .....

I try to see about a 15% difference to trigger a rebalance
So if there a big drop in the market, don't you have to wait for it to come back a bit before moving it? Otherwise, you would be selling in down market and losing quite a bit.

Sorry for the questions but I am trying to get a handle on this to rebalance thing which makes sense. The when to do it part is a bit fuzzy for me.
Reply With Quote Quick reply to this message
 
Old 08-21-2019, 05:48 PM
 
73,580 posts, read 73,400,278 times
Reputation: 51172
Quote:
Originally Posted by jasperhobbs View Post
So if there a big drop in the market, don't you have to wait for it to come back a bit before moving it? Otherwise, you would be selling in down market and losing quite a bit.

Sorry for the questions but I am trying to get a handle on this to rebalance thing which makes sense. The when to do it part is a bit fuzzy for me.
No any selling is when itís up and goes over my dollar figure ..or when it falls 15% I add
Reply With Quote Quick reply to this message
 
Old 08-21-2019, 10:52 PM
 
Location: Washington State
19,380 posts, read 10,047,097 times
Reputation: 16519
Quote:
Originally Posted by bmore4now View Post
Hello guys! I've been pretty aggressively risky with my 401K, because I started rather late (age 43). 98% in stocks with a 13% average rate of return since starting (2009) saving 15% of my income with a 2% match.


At what point should I scale down my risk. I keep hearing a recession is coming and I ideally would like to retire by age 60/62. What percentage of bonds/mutual fund is appropriate if I don't want to take a huge risk anymore or should I even change the allocation.


Thanks for your help.
You're doing great, why stop? I retired and in that 60-62 age, I have a 70% equities portfolio. I could go higher and probably better long term
Reply With Quote Quick reply to this message
 
Old 08-22-2019, 08:59 AM
 
7 posts, read 2,114 times
Reputation: 15
Quote:
Originally Posted by Tall Traveler View Post
You're doing great, why stop? I retired and in that 60-62 age, I have a 70% equities portfolio. I could go higher and probably better long term

Thanks! That's certainly good to hear.




Thank you all for responding. This all helps in determining what research and tolerance level I need to consider.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top