Balancing: Trim some off some equity, and put it into... what?

[azanon]

Quote:

Me too, except it's 7%+ , tic toc, etc. JG

Not now its not.* *Come back from fantasy land.

The LBA Bond index for the year of 05' is ~ 2.3% so far (that's real return, not annualized).

[MRGALT2U]

Quote:

Originally Posted by azanon Not now its not.* *Come back from fantasy land.* * The LBA Bond index for the year of 05' is ~ 2.3% so far (that's real return, not annualized).

I'm still getting 7%+ on my original investment, although NAVS are
down obviously. Of course that makes the yield even higher.
I don't care as long as the checks keep coming.

JG

[azanon]

Ahh - i just look at various investment choices holistically.* If principle change + interest = 4% annualized, that 4% in my book.* As you know, i still work, so i'm evaluating based on overall investment performance.

For max performance, bonds just isnt going to be it right now.* *Now if the interest rates get back up to the 1970s levels and are falling to boot, sure i'm going to be holding a lot of bonds.

Looking at the prime interest rate and seeing how its changed recently isnt exactly rocket science.

[JPatrick]

??<I'm stuck. *Suggestions>

First off, I'd tuck that cash in a MM (3.18%-getting better!) or under the mattress until the market shakes off its current slump. I continue to believe the next few weeks will give us a nice entry point.
A couple of very good all weather funds that have a record to brag about and will provide income are- - - FBALX & FSICX.

[azanon]

My best performer has been my utility sector fund JPatrick, (ticker BULIX).

I think there's plenty of uproom still too.

[JPatrick]

Quote:

Originally Posted by azanon My best performer has been my utility sector fund JPatrick, (ticker BULIX). I think there's plenty of uproom still too.

Utilities have had (and are still having) a fine run.* Ordinarily rising rates would be a problem, but I think the "energy bill" has some provisions that will keep many of them alive.* I hold CIN and use their great DRIP every month.* They are going to be eaten by DUK in the future which is all the better.

[Telly]

I don't want to be a bulletin board deadbeat, by asking a question and never getting back on it...

UPDATE -

Thanks to all that responded*

I wasn't clear enough in my original post, some may not have realized that I'm ER'd.* Into the 4th year now, no safety net till SS starts, which is years (and years) away.

I had not rebalanced before.* I had been letting my equity side grow to let it get up to my desired 60/40 allocation.

It had exceeded that, and with living expenses coming out of the after-tax fixed side, the equity percentage would have grown even if the equity market plateau'd.* I had been suffering from analysis paralysis of where to put it, so I finally went ahead and rebalanced on the recent market peak, swept it into a MM to wait out the next decision of where to put it.