For those which FIREd- how often did you change your asset allocation?

[jIMOh]

For those of you FIREd or real close to it, can you answer the following questions:

1) how long were you investing for FIRE?
2) what was starting asset allocation?
3) between start date and now, how many asset allocations did you have?
4) what drove the allocation changes? Education, market or risk tolerance in particular are what I'm looking for.

 

[two4theroad]

For those of you FIREd or real close to it, can you answer the following questions:

1) how long were you investing for FIRE?
29 years, Age 19 to 48
2) what was starting asset allocation?
Emergency fund in cash, all else in equities
3) between start date and now, how many asset allocations did you have? About 4.
4) what drove the allocation changes? Education, market or risk tolerance in particular are what I'm looking for.
Education for the first 20 years (slowly adding a very small amount of fixed income) then risk tolerance for the last change. ( Large chunk of bonds and TIPS when rolling 410K to IRA)

2fer

 

[CyclingInvestor]

1) how long were you investing for FIRE?
compulsive saver from childhood, investing from age 21 to 48 when I retired

2) what was starting asset allocation?
100% stocks since 1980s

3) between start date and now, how many asset allocations did you have?
always 100% stocks (or close to it), and expect to stay that way, so 0 changes

4) what drove the allocation changes? Education, market or risk tolerance in particular are what I'm looking for.
Acceptance of market fluctuations while targeting a strategy of a growing dividend stream from
high-quality companies until they surpassed my net income has allowed me to ignore market
fluctuations, hence no need for allocation changes. I consider an education of how the market
works (on a fundamental level) to be the most important factor.

 

[megacorp-firee]

1) how long were you investing for FIRE?
for more than 30 years
2) what was starting asset allocation?
100% equities
3) between start date and now, how many asset allocations did you have?
3 - 100 % equities, 401K blended plans with my 100% equities, current aa
4) what drove the allocation changes? Education, market or risk tolerance in particular are what I'm looking for.
plans available and then risk tolerance

 

[jIMOh]

4) what drove the allocation changes? Education, market or risk tolerance in particular are what I'm looking for.
Acceptance of market fluctuations while targeting a strategy of a growing dividend stream from
high-quality companies until they surpassed my net income has allowed me to ignore market
fluctuations, hence no need for allocation changes. I consider an education of how the market
works (on a fundamental level) to be the most important factor.

curious- is this dividend portfolio taxable or tax deferred?

and some follow ups

1) what holdings have you held since you started (any?)
2) what are 10 newest additions?
3) what positions have you eliminated (at any point)?

 

[CyclingInvestor]

curious- is this dividend portfolio taxable or tax deferred?

1) what holdings have you held since you started (any?)
2) what are 10 newest additions?
3) what positions have you eliminated (at any point)?

90% in IRAs, 10% regular

I have held KIM, GGP, VNO since 2000 / 2001 in my taxable account.
My latest additions that I still own are more of KIM, GGP, VNO plus WRE and DRE
I sold all C, SYY, ITW, HD. I also sold some GE, JNJ, PG, EMR.
I buy and sell from a group of about 30 stocks that I follow that meet my requirements
of long histories of rising earnings and dividends, good management, good capital allocation,
stable industries (C, BAC, WM are currently red-lined because of capital market instabilities).
In my IRAs I will sell a stock whenever it becomes more richly valued than others and buy
stocks that are less richly valued (IMO). This leads to few long term positions in my IRAs
as each industry goes into and out of favor.

 

[walkinwood]

CyclingInvestor,
I'm curious to know if your total return consistently beats the S&P 500 index. I'm skeptical about the efficient market theory. Also, your portfolio risk profile may be very different from the S&P 500.

 

[CyclingInvestor]

CyclingInvestor,
I'm curious to know if your total return consistently beats the S&P 500 index. I'm skeptical about the efficient market theory. Also, your portfolio risk profile may be very different from the S&P 500.

I grade myself on how my "future dividend value" grows each year, not by my market value. But
I do track it, so my total return on all IRAs + regular stock account, including the usually minscule
cash balance :

94 -2%
95 21%
96 31%
97 22%
98 -7%
99 -2%
00 36%
01 16%
02 7%
03 47%
04 35%
05 24%
06 22%
07 0%

I am sure my risk profile is higher than the SP500, since I have more concentrated positions,
but they measure a risk I care nothing about. I care if business conditions (dividend and earnings
growth) deteriorate, not if the market price jumps or drops for a year or 2, since I live on the
dividends.