ERD50
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Perhaps we can discuss this and also respect each other's view.
I thought I was, and I apologize (again) if my attempt at constructive help was seen otherwise.
-ERD50
Perhaps we can discuss this and also respect each other's view.
ERD50 said:If that poster does not want to listen anymore, that is also their decision. I was only trying to be helpful, and will continue to do so if he ever wants to listen in the future. I don't hold grudges in regards to such things. But if I've worn out my welcome with him, so be it. I do hope his retirement is everything he hopes it to be, but I sure hope he is taking the right precautions.
-ERD50
ERD50 said:I thought I was, and I apologize (again) if my attempt at constructive help was seen otherwise.
-ERD50
I'm fine with ObGyn's strategy if his withdrawal rate is very low and he doesn't care about leaving an inheritance. He may just not need market gains. That might change if we see hyper inflation, but he can always adjust later. He also may have worked longer than we would have before retiring.
+1
I think that is why there is no one size fits all AA as what is comfortable for one person may not feel right for another.
The trick IMO regarding AA is whether it is object or subjective, or I suppose a combination of both.
You are not alone. It's one thing to intelligently understand why having some equities exposure is preferable, even in retirement. It's quite another matter to stay committed to the plan and not lose sleep over it. Even though my wife and I shifted to an ultra-conservative asset allocation back in the spring of 2008, not a day goes by that I don't think about shifting some of it back into stocks. Having been on layoff notice 8.5 of the previous 12 months and a pending layoff in 1.5 months unless I find another position in the company, hard to imagine making the change now.... however I am one of the most conservative investors in this forum with 0% stocks...
I agree with Fuego's last post, except I find it helpful to hold a little bit of fixed income for rebalancing.
In 2008, we were at 90/10 and as things went down, I kept buying. We went to about 95/5 before I didn't feel like buying anymore. We were down close to 40% at the worse, but since then we've nicely recovered.
Right now we're about 80/20, which is probably where we'll stay for awhile, but if the markets crash again, then I can easily see us going back to 90/10.
It's always nice to have a little bit of cash on the side to buy when the markets are down.
People cite experiences like this almost as if they were a law of nature-when markets go down, they will come back.
Glance at Japan, which was #2 economy in the world, and widely thought about to bury the US. The Nikkei 225 peaked in December 1989 north of 39,000, and 22.5 years later it closed Friday at 8401.72. And dividends have not amounted to much either.
A market may come back, and many often will- but is isn't even remotely foreordained.
Ha