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Old 02-04-2014, 10:01 AM   #41
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That you feel the need to tell us how sanguine you are makes me think your more smug & an need of affirmation than anything else. But jmo.
A bit smug.....I suppose....but who isn't on this site, here we all are posting about our ER plans. Affirmation? well yes everyone likes that.

I'm really observing that a conservative AA for the money you will use to fund the years up to 59.5 is comforting, it might not be financially optimal, but for those of us with a pessimistic nature it saves on blood pressure medication.

My AA overall is 60/40 but if I just consider money that I can get at without penalty before 59.5 my AA is 30/70. I don't like "buckets" much, but in this case I have one bucket of money that I can access without penalty that must last at least 7 years and one that contains retirement accounts with early withdrawal penalties. The AAs are very different because I am willing to risk more for the longer term money. If I was over 59.5 I would not make that distinction.
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Old 02-04-2014, 10:22 AM   #42
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Originally Posted by nash031 View Post
There's a correction going on?
A stock market correction, or pullback, is when the stock market declines 10% or less in a relatively short period of time. That's one of the definitions. It's up to you to interpret whether a correction is happening.
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Old 02-04-2014, 10:25 AM   #43
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I'm heavily weighted to fixed income but no cash. My bonds are up ~2% this year. Cash & stable value would have been a drag on performance.
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Old 02-04-2014, 10:49 AM   #44
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Originally Posted by Spanky View Post
A stock market correction, or pullback, is when the stock market declines 10% or less in a relatively short period of time. That's one of the definitions. It's up to you to interpret whether a correction is happening.
It has to meet 10% to be considered a correction. Less than that is not even considered a correction.

Between 10 and 20% is a correction, and if 20% is hit, then it's a bear market.
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Old 02-04-2014, 11:20 AM   #45
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I'm heavily weighted to fixed income but no cash. My bonds are up ~2% this year. Cash & stable value would have been a drag on performance.
My cash and stable value over weighting in the accounts I have access to before 59.5 is to avoid a perfect storm of stock market crash and interest rate increases jeopardizing my income stream before I reach 59.5. Bird in the hand and all that.
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Old 02-04-2014, 01:17 PM   #46
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There is no doubt that cash and cash-equivalents provide some ballast in stormy markets, a lesson I learned the hard way in 2008/2009.
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Old 02-04-2014, 02:05 PM   #47
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I withhold my opinions, if I even have any, to deny the usual B-B gun crowd any pleasure off my errors.

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Old 02-04-2014, 03:08 PM   #48
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+1
And volatility was eerily low in 2013. This seems like going back to more "normal" market volatility.

Yeah, I was wondering about that in 2013. Hopefully, we get more volatility this year so that I can make some side income by trading (a short term market timing) .
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