Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Any Retirees DCA'ing Extra Cash into Equities?
Old 03-08-2009, 03:33 PM   #1
Full time employment: Posting here.
friar1610's Avatar
Join Date: Jun 2002
Posts: 731
Any Retirees DCA'ing Extra Cash into Equities?

This is somewhat related to a couple of the recent threads about when to take SS and how low the market might go.

I'm curious what other already retired folks who are getting by OK on a pension are doing with any other cash that might be coming in regularly (SS, PT job, whatever). Are any of you committing it to equities on a DCA basis?

In my case, my COLA'd pension pretty much covers living expenses except for the occasional expensive month. Most of my (early) SS and all of my wife's gets banked. Before things went South, I was 5% cash and 47.5% each equities and fixed income. Now I'm about 8% cash and down to 33% equities.

If/when the market recovers, I'll be back to where I was (dollar-wise) with respect to equities if I don't do any more investing. Since I wasn't hitting the nest egg anyway, it can be argued that I don't need to take any risk to grow it. OTOH, it seems to make sense to DCA into a broad index fund with some of the spare cash that comes in each month from SS. If/when the market recovers, I would then rebalance out of equities to get back to my original AA.

What are others doing in similar circumstances? Any comments/suggestions generally?

friar1610 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-08-2009, 04:03 PM   #2
Thinks s/he gets paid by the post
Join Date: Aug 2002
Posts: 1,322
I'm probably the most conservative here so, no, my extra cash stays right there, in cash. I'll DCA when the time comes, and will be late to the party, but at least it will be a party and not a funeral.
FinallyRetired is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Not sure what to do with the extra cash... Keyboard Ninja Young Dreamers 10 09-28-2008 12:26 AM
Cash versus Equities chart, bad behavior Animorph FIRE and Money 8 08-20-2008 02:50 PM
what to do with extra cash? Keyboard Ninja Young Dreamers 8 06-17-2008 09:46 PM
What to do with extra cash HatePayingTaxes Young Dreamers 20 12-17-2006 11:33 AM


All times are GMT -6. The time now is 08:06 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.