How's your Asset Allocation holding up?

[mickeyd]

Now that the stock market has had the predictable correction, how has your asset allocation survived this?

I recently went from a 70/30 mix to a 60/40 mix, so I look like a genius, which is pretty unusual for me! Have your FI funds done what you expected them to do ( you know, level out your ups/downs) or has your AA disappointed you once again?

 

[TromboneAl]

In January I rebalanced to 58/42 (started at 60/40 two years ago, and each year I reduce equity by 1%).

By 2/26/27 the allocation was back to 61/39, and today it is at 58/42.

 

[LOL!]

Too soon to tell. A "correction" is not a 3% dip. We need a 10% drop or more.

 

[newyorklady]

you really think it will go down that much?

 

[bbbamI]

After years of going back and forth with AA, we finally realized what we needed to do to made ourselves comfortable and to be able to achieve our goal.

50/50. We have lost a little, but we're going hang in there with the "set it and forget it" plan. Probalby won't do anything until there's a 5% difference.

 

[unclemick]

I would like to say I don't know and I don't care like the super diehard asset allocators.

Unfortunately I don't know(until I check my Vanguard account) and the pucker factor factor has not been fully conquered.

But as of Jan 2006 - went to full autopilot TR 2015 - and at least try to don't know, don't care.

Chickenheartedness says I take a quick look at the Norwegian widow factor first(current yield) from time to time.

Theoretically I should be mentally prepared for a -18.5% dip should a 1974 worst case reoccur per the online Vanguard backtest calculator.

I like the part where the trusty Vanguard computers rebalance their little hearts without any emotion or discipline pep talk.

That way I can indulge in full fledged fear and greed in my individual stocks - loss will not derail my ER, and a winner/s may move me from Chevrolet up to a Buick or at least bragging rights.

heh heh heh

 

[Spanky]

YTD = 1.12%.

I guess it is okay. I will be happy to get 8% by year end.

 

[yakers]

Like unclemick, most of my retirement funds are in a Target Retirement fund. I do have a few other assets but don't bother rebalancing.

 

[LOL!]

you really think it will go down that much?

No, it will go down by more at some point in the future.

Check out this math. Suppose you were 80% equities and 20% bonds. If equities dropped by 10%, then you would have 92% of the assets you had before. 72/92 would be equities and 20/92 would be bonds, so you would be 78.3% equities and 21.7% bonds. That change would not put me in a hurry to rebalance.

So your asset allocation will hold up just fine no matter what happens. Whether your portfolio holds up, who knows?

 

[audreyh1]

Too soon to tell. A "correction" is not a 3% dip. We need a 10% drop or more.

Yeah, it also looks like I need a 10% equity drop to justify rebalancing my portfolio.

How is my AA doing? On 2/27/07 I was down 2.9% on equities and up 0.43% on bonds. Cash, of course, was neutral. Overall my portfolio was only down 1.82%. This is just a blink. Still up over 1% YTD.

We used to see this kind of volatility all the time in the late 90s and early 2000s. People have been lulled with the recent years of low volatility. 3% really is no big deal - even if it all happens in one day.

Audrey

 

[W2R]

In January I rebalanced to 58/42 (started at 60/40 two years ago, and each year I reduce equity by 1%).

By 2/26/27 the allocation was back to 61/39, and today it is at 58/42.

I rebalanced in January too, to 60/40. I'm back to 60/40 now.

 

[Mysto]

Theoretically I should be mentally prepared for a -18.5% dip should a 1974 worst case reoccur per the online Vanguard backtest calculator.

Hey Uncle- Where do I find this Vanguard backtest calculator?

Thanks

 

[unclemick]

Hey Uncle- Where do I find this Vanguard backtest calculator?

Thanks

Hmmm - good question cause I have a Vanguard account(password and all that) it's under portfolio performance(roughly 66/31/3 cash) - Which checking this morning is only a nit 0.1% off a standard 60/40 backtest I found on the general VG website researching asset allocation.

Handgrenades are good. How bout that!

Like the good plan versus 'perfect plan' cliche - I can be reasonably messy and still be in the ballpark.
You gave me a good reminder this morning.

Thanks.

heh heh heh

 

[Poundkey]

YTD: +.79% here. My AA still isn't where I want it though.

 

[dex]

Too soon to tell. A "correction" is not a 3% dip. We need a 10% drop or more.

I agree - when I make changes to my portfolio I usually do it in several steps or over several months depending upon the amount --- similar to dollar cost averaging.

 

[FinanceDude]

I rebalance every December.............and currently at 70/30. However, the 70 has about 20% global, so keeping a watchful eye............

 

[NinjaPigeon]

I survived the first few days of this, but today I went negative. I'm about -1% YTD now.

 

[larry]

Went negative today as well, .1%. Just one day in a 14,000 day plan.

 

[d]

i'm still positive y.t.d. -- but just barely. am happy that i didn't try to "catch the falling knife", but will likely rebalance some cash into equities as soon as i sense that things have settled a bit.

 

[chinaco]

I was @ 100% equity in Feb. Planning to ER in 1/2012. I had just started to reallocate the portfolio. Before the correction I had move 15% to intermediate bond (funds). As luck would have it, we moved another 15% the day before the drop (after trading hours)... So that 15% was moved after the hit.

We are now at an alloc of 70/30. I will move that to 60/40 over the next 5 years prior to retirement. Plus build a cash pool (Money martket/short-term bonds) for our minimum LBYM lifestyle for 2 years.

Bottom line. Lucked out on the timing and preserved part of the 2007 gain.

 

[Lyle]

Just checked for the week and down 2.6%.

 

[hellbender]

I don't own any equities so naturally, I have few concerns about stock market gyrations. I am still in fixed income and real estate.

 

[cute fuzzy bunny]

Still up about 3% ytd.

 

[Shredder]

Checked today and I'm up 0.00%, actually out $10 , but it shows up as 0% since it's so small. So I'm back to Jan 1, not so bad I guess. I plan on hurrying up and do nothing. Just like my homemade wine, and me, I'll just let it age......Shredder

 

[audreyh1]

Still up 0.5% YTD, but I'm halfway to where I need to rebalance my portfolio. Just need another nasty week or two, then I'll be rebalancing.

I'd love to see the S&P come down to the 1300-1325 range (gosh, we were there only last October!). I'm not sure we'll get it though.

Audrey