Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 02-27-2014, 02:12 PM   #21
Thinks s/he gets paid by the post
RetireAge50's Avatar
 
Join Date: Aug 2013
Posts: 1,119
I usually go with about 90% stocks and 10% bonds. Do not bother with reallocation just let it go up and down.

But I am still working and do not need the money for a few years. Plan on keeping 3-5 years income in cash (or pension, or salary).
__________________

__________________
RetireAge50 is online now   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 02-27-2014, 02:30 PM   #22
Recycles dryer sheets
Tortoise's Avatar
 
Join Date: Jan 2014
Location: San Jose
Posts: 80
Quote:
Originally Posted by Spanky View Post
In anticipation of low return from bonds, have you bumped up your equity allocation? We are currently at 40/60 (equity/fixed-income) but thinking about increasing the allocation of equity to 50%. It's true that motivation for a change is heavily influenced by recency of stellar equity return relative to bond.
Agreed that 50/50 is still pretty conservative, but chasing returns is not wise. Do you have an Investment Policy Statement? If so, stick with that. If not, you might think about creating one. Please read Investment policy statement - Bogleheads
__________________

__________________
"Always do right. This will gratify some people, and astonish the rest." --Mark Twain
Tortoise is offline   Reply With Quote
Old 02-27-2014, 02:48 PM   #23
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 3,862
Here's what happens when you chase returns.

Mind the Gap 2014

A permanent AA change is not necessarily chasing returns, but the timing is a bit suspicious. If you don't like bonds, cash like CD's and online savings accounts will work while bonds recover.
__________________
Animorph is offline   Reply With Quote
Old 02-27-2014, 04:28 PM   #24
Thinks s/he gets paid by the post
 
Join Date: Mar 2009
Posts: 1,433
As the ER window approaches I'm sticking to my 45/35/15 allocation. It would be terrible if I had to delay ER a year or two because of a major downturn.
__________________
Retired in 2016. Living off dividends / interest and a mini pension. Freedom.
foxfirev5 is offline   Reply With Quote
Old 02-27-2014, 05:05 PM   #25
Full time employment: Posting here.
 
Join Date: Jan 2013
Posts: 660
Quote:
Originally Posted by foxfirev5 View Post
As the ER window approaches I'm sticking to my 45/35/15 allocation. It would be terrible if I had to delay ER a year or two because of a major downturn.
Not to mention that, since your allocations only add up to 95%, you have an extra 5% floating around in there somewhere as cushion against any major downturn.
__________________
karluk is offline   Reply With Quote
Old 02-27-2014, 06:47 PM   #26
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,410
Quote:
Originally Posted by obgyn65 View Post
No.
Just funning with you ob, but you need to have an equity allocation to begin with in order to increase it.

In answer to the OP, No. My AA has been the same for the last 5 years or so.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is online now   Reply With Quote
Old 02-27-2014, 07:14 PM   #27
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Posts: 1,904
This is my 12th year of retirement and at sixty three I like a conservative 50/50 split. I do use a wide 10% reallocation band so that most of the time nothing happens and I can go back to my usual slumber. Since the start of retirement there have been only two re allocations, in February of 2007 and May of 2013 (both from equities to bonds). I almost reallocated in the other direction (from bonds to equities) in early 2009 but just as I was getting ready to do it the equities market took off and took care of the reallocation.

I'm currently at about 53.7% equities so the market still has a way to run (in either direction) before I have to wake up. My NW has doubled since I retired almost a dozen years ago so this system works for me. What I particularly like about it is that it allows me to pretty much ignore all of the news and expert guru's "noise making"

I should also mention that about 40% of my NW is in Wellsi/Welltn/Target Retirement so that part automatically rebalances.
__________________
ejman is online now   Reply With Quote
Old 02-27-2014, 07:16 PM   #28
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Quote:
Originally Posted by Tortoise View Post
Agreed that 50/50 is still pretty conservative, but chasing returns is not wise. Do you have an Investment Policy Statement? If so, stick with that. If not, you might think about creating one. Please read Investment policy statement - Bogleheads
My AA used to be 60/40. Since ER is at least a few years away, I am fine with 50/50.

BTW, thanks for the link for investment policy.
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Old 02-27-2014, 07:21 PM   #29
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Quote:
Originally Posted by Animorph View Post
Here's what happens when you chase returns.

Mind the Gap 2014

A permanent AA change is not necessarily chasing returns, but the timing is a bit suspicious. If you don't like bonds, cash like CD's and online savings accounts will work while bonds recover.
We are not chasing return but feel our AA is too conservative.
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Old 02-27-2014, 08:46 PM   #30
Thinks s/he gets paid by the post
Major Tom's Avatar
 
Join Date: Nov 2009
Location: SF East Bay
Posts: 3,128
Quote:
Originally Posted by pb4uski View Post
Just funning with you ob, but you need to have an equity allocation to begin with in order to increase it.
He does though. I think his equity allocation is something like .1%, give or take, due to that purchase of Wellesley (or was it Wellington?) a while back!
I have to admit that I laughed out loud when I saw Ob's one word reply. Ob - you are nothing if not predictable

Oh yes, as for the OP, I have not changed my AA, though every good day in the market makes me nervous. I almost feel as if I don't deserve to be doing this well. No doubt the next correction will take care of that
__________________
ER, for all intents and purposes. Part-time income <5% of annual expenditure.
Major Tom is offline   Reply With Quote
Old 02-27-2014, 09:02 PM   #31
Full time employment: Posting here.
 
Join Date: Mar 2010
Location: Chicago
Posts: 867
Quote:
Originally Posted by RetireAge50 View Post
I usually go with about 90% stocks and 10% bonds. Do not bother with reallocation just let it go up and down.

But I am still working and do not need the money for a few years. Plan on keeping 3-5 years income in cash (or pension, or salary).
If your avatar reflects your age I would be 100% stocks
__________________
ripper1 is offline   Reply With Quote
Old 02-27-2014, 09:09 PM   #32
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,410
Quote:
Originally Posted by Major Tom View Post
He does doesn't he? I think his equity allocation is something like .1%, give or take, due to that purchase of Wellesley (or was it Wellington?) a while back!
I have to admit that I laughed out loud when I saw Ob's one word reply. Ob - you are nothing if not predictable

Oh yes, as for the OP, I have not changed my AA, though every good day in the market makes me nervous. I almost feel as if I don't deserve to be doing this well. No doubt the next correction will take care of that
Yes, IIRC he bought some Wellesley in the first half of last year.

I rounded the 0.1% down to zero.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is online now   Reply With Quote
Old 02-27-2014, 09:13 PM   #33
Thinks s/he gets paid by the post
Major Tom's Avatar
 
Join Date: Nov 2009
Location: SF East Bay
Posts: 3,128
Quote:
Originally Posted by pb4uski View Post
I rounded the 0.1% down to zero.
Good decision. I mean - rounding it up to 1% would be an irrationally exuberant move

Just having some good-natured fun. Please don't hold it against me Ob!
__________________
ER, for all intents and purposes. Part-time income <5% of annual expenditure.
Major Tom is offline   Reply With Quote
Old 02-27-2014, 10:39 PM   #34
Thinks s/he gets paid by the post
nash031's Avatar
 
Join Date: Jun 2013
Location: Coronado
Posts: 1,486
Quote:
Originally Posted by Spanky View Post
In anticipation of low return from bonds, have you bumped up your equity allocation? We are currently at 40/60 (equity/fixed-income) but thinking about increasing the allocation of equity to 50%. It's true that motivation for a change is heavily influenced by recency of stellar equity return relative to bond.
Changing your asset allocation due to expected returns is also called "market timing".
__________________
nash031 is offline   Reply With Quote
Old 02-27-2014, 10:42 PM   #35
Thinks s/he gets paid by the post
nash031's Avatar
 
Join Date: Jun 2013
Location: Coronado
Posts: 1,486
Quote:
Originally Posted by Spanky View Post
We are not chasing return but feel our AA is too conservative.
If this is true, it's a perfectly good reason to change your AA. Your OP said you were doing it because of low expected bond returns and the recent success of equity. That's pretty much the worst reason to change your AA.

Stick to your plan until your risk tolerance changes for some reason.
__________________
nash031 is offline   Reply With Quote
Old 02-27-2014, 10:57 PM   #36
Recycles dryer sheets
 
Join Date: Aug 2011
Location: Atlanta
Posts: 420
Quote:
Originally Posted by Spanky View Post
In anticipation of low return from bonds, have you bumped up your equity allocation? We are currently at 40/60 (equity/fixed-income) but thinking about increasing the allocation of equity to 50%. It's true that motivation for a change is heavily influenced by recency of stellar equity return relative to bond.
No - we have been selling.
Keeping in the 25% range equity
__________________
SJ1_ is offline   Reply With Quote
Old 02-27-2014, 11:49 PM   #37
Full time employment: Posting here.
 
Join Date: Apr 2006
Posts: 944
Went down to a 50/50 last year. I am about 60/40 now(equity growth). I tend to over think my buying and selling. Going to sell about 3% to up my cash holding from equities. Other than that nothing this year unless we see a heavy correction. Have realized I am usually wrong when trying to predict where the market is going - so I'm just gonna ride it up or down
__________________
Freed at 49. You only live once - live it
Donzo is offline   Reply With Quote
Old 02-27-2014, 11:53 PM   #38
Thinks s/he gets paid by the post
photoguy's Avatar
 
Join Date: Jun 2010
Posts: 2,301
On a relative basis my equity allocation has gone down since I've had various cash incoming from bonus, house sale etc.

On an absolute basis I'm still putting more new money into equities.
__________________
photoguy is offline   Reply With Quote
Old 02-28-2014, 12:59 AM   #39
Thinks s/he gets paid by the post
growing_older's Avatar
 
Join Date: Jun 2007
Posts: 2,608
I usually keep pretty broad rebalance bands, so the market has to run pretty far before I re-balance back to my target asset allocation. But the equity run up is so great even I am selling equities to rebalance into bonds. I think fear of rising interest rates has been bandied about for the last few years, so it's hard to see why now, today, anything is different that would make me want to abandon bonds and increase equity allocation. That kind of tactical choice is the kind of market timing that if you hit it right can be profitable, but if you hit it wrong can be costly, and there seems to be plenty of evidence that I (and most everybody else) will be wrong more often than right. I'll settle for my market returns at my target allocation and leave the brilliant timing to those with stronger nerves.
__________________
growing_older is online now   Reply With Quote
Old 02-28-2014, 01:22 AM   #40
Moderator Emeritus
 
Join Date: May 2007
Posts: 11,036
I have not bumped our equity allocation on purpose. But DW keeps getting awarded company stock and it is pushing our equity allocation beyond our target. Rebalancing would trigger a sizable tax bill, so we are letting it be for the time being. In the mean time, all new money goes to cash and i-bonds.
__________________

__________________
FIREd is online now   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
Have you bumped up fun spending? Lsbcal FIRE and Money 110 02-23-2014 06:02 PM
Bumped - Free Ticket - Can I Sell It? JustMeUC Travel Information 3 07-22-2009 08:36 AM
profit taking and equity re-allocation JohnEyles FIRE and Money 20 10-07-2006 10:45 AM
Equity/Fixed Income Allocation Change with Age Hydroman FIRE and Money 32 08-30-2006 11:05 PM
International Equity Allocation Telly FIRE and Money 14 07-14-2005 09:46 AM

 

 
All times are GMT -6. The time now is 02:25 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.