I'm curious, are there any other people like me on this forum that don't subscribe to the "buy and hold/rebalance asset allocation" but instead try to preserve their retirement savings?
I feel that it is based mostly on your age and the number of "challanges" you have faced investment wise, over the years.
I'm retired (DW will soon be). When I retired (in early 2007, at age 59) we had already hit "our number" for more than a few years - in our mid-50's.
Not starting to save/invest for retirement until our mid-30's (when our respective pension plans were eliminated and replaced by 401(k) plans) and starting additional IRA's, we knew we had to be a bit agressive - even with an initial planned retirement date of SS FRA age (for us, 66).
So we invested mostly in equity mutual funds and had an AA (before we knew what an AA was) based upon actual investments of 90/10 (90% equity, 10% cash/bonds).
When our first downturn occured (1987) we went into a panic and were ready to pull all our retirement funds out of equities, and put them into cash/cash equalivents. At the time I was going to night school and had an instructor (younger than I am, today) discussing the market pullback, and what it meant to us. I remember his words well, that regardless of the duration, there would always be market flux.
The result? We did not change a thing, through 1987 (which snapped back quickly) and even into the early 2000's when most people were fearful (and pulling out of equity - tech mostly) at the same time we paid off our note/mortgage and took that payment and increased our 401(k) contributions. Heck, we were used to making that payment. We could either spend it on immediate desires or invest it for the future. Well, you know how that worked out (buy, when others are in a panic).
Today (in retirment)? Our joint AA is set at 50/50 (50% equity, 50% cash/bonds). Due to the current "challange", our holdings are at 45/55 (45% equity). We are not making any changes (rebalance) at this time simply due to our age. We are not accumulating for the future (trying to hit our number) nor are we concerned about the current market as it affects our income (we indivudially have more than a few years in cash).
I can't say when the market will return other than I have faith that it will. Sure, there are a lot of folks that say "this time, it's different" (heard that before, even when times are good?)
We don't need to pull out of the market nor re-allocate (which I do endorse for certain folks - as those currently younger and in their accumulation stage). When the market returns (whatever year, or decade), so will our AA.
Again, it's all depending on your age, and your time in life...