Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Glad I have cash and stable value
Old 02-03-2014, 12:38 PM   #1
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,836
Glad I have cash and stable value

Only one month from ER and I'm remarkably sanguine about this correction thanks to having 7 years of spending in stable value and cash.
__________________

__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 65% Equity Funds / 20% Bonds / 7% Stable Value /3% Cash / 5% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun 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 Early-Retirement.org 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 02-03-2014, 01:06 PM   #2
Thinks s/he gets paid by the post
robnplunder's Avatar
 
Join Date: Nov 2013
Location: Bay Area
Posts: 2,124
A correction was long overdue in my opinion. Corrections are not a bad thing .
__________________

__________________
Pura Vida
robnplunder is offline   Reply With Quote
Old 02-03-2014, 01:17 PM   #3
Thinks s/he gets paid by the post
jollystomper's Avatar
 
Join Date: Apr 2012
Posts: 1,364
Quote:
Originally Posted by nun View Post
Only one month from ER and I'm remarkably sanguine about this correction thanks to having 7 years of spending in stable value and cash.
+1

Along with an AA that one can sleep with at night, it makes it easier to ride these things out.
__________________
Current target FIRE date: Under negotiation, can happen anytime.
jollystomper is offline   Reply With Quote
Old 02-03-2014, 01:22 PM   #4
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,949
Quote:
Originally Posted by nun View Post
Only one month from ER and I'm remarkably sanguine about this correction thanks to having 7 years of spending in stable value and cash.
I have more years than that in cash and TSP G Fund, although rubbing it in while people are losing money is a little distasteful somehow. I would imagine that you feel the same.

I know this conservative AA is one that I can stick with no matter what, since it was well tested in 2008-2009. I probably didn't make as much from 2010-2013 as I could have.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is offline   Reply With Quote
Old 02-03-2014, 01:33 PM   #5
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,492
I sleep pretty well regardless . This still looks to me like run of the mill volatility, nothing to write home about. If anything, holding cash right now is unsettling, because it's not obvious when and how to invest it.
__________________
MichaelB is offline   Reply With Quote
Old 02-03-2014, 01:48 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,983
Quote:
Originally Posted by MichaelB View Post
I sleep pretty well regardless . This still looks to me like run of the mill volatility, nothing to write home about. If anything, holding cash right now is unsettling, because it's not obvious when and how to invest it.
+1. How soon some forget how well we did last year. If you were mostly cash going back a year or more, you're way worse off than most any balanced AA. YMMV
Attached Images
File Type: jpg image.jpg (52.1 KB, 21 views)
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 02-03-2014, 01:54 PM   #7
Thinks s/he gets paid by the post
robnplunder's Avatar
 
Join Date: Nov 2013
Location: Bay Area
Posts: 2,124
... and there are 11 more months to go before the year ends. At the end of the year, most are predicting that the equity will be up. My opinion is, it will be up albeit in single digit range.
__________________
Pura Vida
robnplunder is offline   Reply With Quote
Old 02-03-2014, 02:21 PM   #8
Recycles dryer sheets
Louis2's Avatar
 
Join Date: Jan 2014
Posts: 54
I didn't interpret the OP as recommending a high cash AA or even saying they moved into cash.... I think they were just reinforcing that regardless of your AA strategy, as you approach retirement it is comforting to have enough in cash/sv to withstand the volatility.

And i say... Amen.

(of course you could argue the original title was designed to get everyone riled up!)
__________________
I reserve the right to change my mind as I get smarter.
Louis2 is offline   Reply With Quote
Old 02-03-2014, 02:22 PM   #9
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,836
Quote:
Originally Posted by W2R View Post
I have more years than that in cash and TSP G Fund, although rubbing it in while people are losing money is a little distasteful somehow. I would imagine that you feel the same.

I know this conservative AA is one that I can stick with no matter what, since it was well tested in 2008-2009. I probably didn't make as much from 2010-2013 as I could have.
Well my 60/40 AA means that I'm losing money overall.....I've just got 7 years of myopia.
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 65% Equity Funds / 20% Bonds / 7% Stable Value /3% Cash / 5% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun is offline   Reply With Quote
Old 02-03-2014, 02:27 PM   #10
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,149
Quote:
Originally Posted by Louis2 View Post
(of course you could argue the original title was designed to get everyone riled up!)
...which is always what happens when the market has a drop. The "I told you so" crowd come out of the woodwork like cockroaches with the lights off.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 02-03-2014, 02:30 PM   #11
Recycles dryer sheets
Newventurer's Avatar
 
Join Date: Sep 2012
Location: in the sticks
Posts: 238
Quote:
Originally Posted by Midpack View Post
+1. How soon some forget how well we did last year. If you were mostly cash going back a year or more, you're way worse off than most any balanced AA. YMMV
I am one of these. Sadly, I 'knew' the market was going to crash and shorted the S&P all year (2013) with a portion of my investments and held a lot of cash because i was fearful of the 'big one' right before i retired. I was wrong. Sure I am finally getting back a bit of what I left on the table but at significant opportunity (educational) expense. Soon I will re-enter the market at more reasonable levels, into a ETF strategy developed with knowledge from this board. Painful lesson, but not too late to recover.

Thanks to all of you who have imparted your knowledge to the uneducated.
__________________
Newventurer is offline   Reply With Quote
Old 02-03-2014, 02:35 PM   #12
Thinks s/he gets paid by the post
frayne's Avatar
 
Join Date: Oct 2002
Location: 19th Hole
Posts: 2,535
Been investing since 1974, just another day in the market. Soon the talking heads will find some way to link the Bronco's loss yesterday to the sell-off today. Does reversion to the mean, ring a bell anyone ? Yes, those in marginal situations might want to be concerned but in the over all scheme of things, it's no big deal what the market is doing. After last year's run, I'd be surprised if there wasn't a bit of profit taking.
__________________
A totally unblemished life is only for saints.
frayne is offline   Reply With Quote
Old 02-03-2014, 02:56 PM   #13
Recycles dryer sheets
 
Join Date: Jul 2013
Location: Cape Canaveral
Posts: 93
First year FIRE for me.

Im 70/25/5.

This doesn't even make me flinch.....

Cheers everyone!
__________________
shasta is offline   Reply With Quote
Old 02-03-2014, 03:03 PM   #14
Thinks s/he gets paid by the post
 
Join Date: Mar 2009
Posts: 1,437
Quote:
Originally Posted by shasta View Post
First year FIRE for me.

Im 70/25/5.

This doesn't even make me flinch.....

Cheers everyone!
I hope there's a pension to compliment this AA
__________________
Retired in 2016. Living off dividends / interest and a mini pension. Freedom.
foxfirev5 is offline   Reply With Quote
Old 02-03-2014, 03:31 PM   #15
Thinks s/he gets paid by the post
Katsmeow's Avatar
 
Join Date: Jul 2009
Posts: 3,400
Because we will have high spending the next 3 years kids (2 kids in college) and will be withdrawing a relatively higher percentage of our portfolio (and then our spending will basically halve at that point) we set aside part of our 55/45 portfolio shortly after the beginning of the year (before the drop) and put it in cash or near cash so that we would be less vulnerable to a large drop in the next 2 years. I don't have any reason to think this "correction" will be such a large drop, but I definitely do feel better with having done the set aside.
__________________
Katsmeow is offline   Reply With Quote
Old 02-03-2014, 03:38 PM   #16
Recycles dryer sheets
 
Join Date: Jul 2013
Location: Cape Canaveral
Posts: 93
Quote:
Originally Posted by foxfirev5 View Post
I hope there's a pension to compliment this AA

Why is that? (Don't think I'm looking a concern horse in the mouth.)

Firecalc gives me 96%

Vanguard gave me 100% success with my AA.
__________________
shasta is offline   Reply With Quote
Old 02-03-2014, 03:41 PM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,983
Quote:
Originally Posted by shasta View Post
First year FIRE for me.

Im 70/25/5.

This doesn't even make me flinch.....

Cheers everyone
Quote:
Originally Posted by foxfirev5 View Post
I hope there's a pension to compliment this AA
foxfire: Why would your risk tolerance be appropriate/suitable for anyone else, especially a total stranger (presumably)?
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 02-03-2014, 04:39 PM   #18
Thinks s/he gets paid by the post
jollystomper's Avatar
 
Join Date: Apr 2012
Posts: 1,364
Quote:
Originally Posted by frayne View Post
Soon the talking heads will find some way to link the Bronco's loss yesterday to the sell-off today.
They actually did a few days ago - the old Super Bowl "indicator"
Super Bowl Indicator: Why a Broncos win will be better for stocks | Breakout - Yahoo Finance

"...the Super Bowl theory, which unequivocally has shown that when an NFC team wins, the S&P 500 has rallied an average of 10% in the ensuing 11 months and was positive 80% of the time, which is more than double the 4% gains that follow an AFC victory"

"...Specifically, following the Bronco’s last four Super Bowl losses, the market averaged gains of only two percent"
__________________
Current target FIRE date: Under negotiation, can happen anytime.
jollystomper is offline   Reply With Quote
Old 02-03-2014, 05:00 PM   #19
Full time employment: Posting here.
 
Join Date: Sep 2013
Posts: 511
I know we're supposed to avoid market timing, but I couldn't resist and threw a few $K into QQQ at COB today. We'll see if I seem brilliant or idiotic in a few days.
__________________
stepford is online now   Reply With Quote
Old 02-03-2014, 05:01 PM   #20
Thinks s/he gets paid by the post
DFW_M5's Avatar
 
Join Date: Sep 2003
Posts: 4,982
This isn't even a correction yet and most would consider a correction healthy anyway. These can be buying opportunities for those with cash.
__________________

__________________
Doing things today that others won't, to do things tomorrow that others can't. Of course I'm referring to workouts, not robbing banks.
DFW_M5 is offline   Reply With Quote
Reply


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
Stable value fund and 457, excellent fixed income reserve nun FIRE and Money 5 11-16-2013 03:08 PM
Deciding Between Intermediate Bond Fund and Stable Value Fund sengsational FIRE and Money 12 06-13-2013 09:04 PM
GIC - Stable Value fund getoutearly FIRE and Money 5 02-19-2006 09:30 PM
Is There a Good Stable Value Fund? RockMiner FIRE and Money 5 11-24-2004 02:37 PM
Stable Value Funds rwwoods FIRE and Money 6 07-10-2003 09:29 AM

 

 
All times are GMT -6. The time now is 01:30 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.