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Re: Roth Re-Allocation
Old 03-09-2006, 08:26 AM   #21
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Re: Roth Re-Allocation

Quote:
Originally Posted by ESRBob
Cantaloupe-sized anatomical appendages
OH NO Mr. BILL NOOOOOOOOOOO!
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Re: Roth Re-Allocation
Old 03-09-2006, 10:31 AM   #22
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Re: Roth Re-Allocation

I'll bet if I added up the wifes income and our dividends, it might be higher than 4%.

An income stream has a very profound effect on SWR, even if it doesnt show up for a while but you're pretty sure it will. Remembering my firecalc work on when to take social security, if I presume a $1200 a month benefit starting in 20 years, I can start taking an extra grand or more every year starting right now.

No cantaloupes required, although it appears I'm carrying mine in my shirt.

Unless we're old and feeble, I can always get a job or do some sort of work. Could be something like what I did before. Could be something different. Again, without that debt weight and with the ability to almost completely control my expenses month to month, it doesnt have to be a very spectacular job to get us by.

If the wife decided to quit tomorrow, i'd probably keep the same weightings, but shift out of target retirement and back into more high dividend payers, adjust our spending a little bit, and find a reasonable cost high deductible health plan to ride until nationalized or statewide health care is implemented. We'd make it. I'd work a little here and there if needed. Its really no big deal.

As far as rocks and markets...only two things would have creamed most of us. The Depression and Stagflation. We just saw a huge bull market and a big pullback bear. Are we really due for TWO once-in-a-lifetime major financial events within one lifetime, when there have only been three significant ones in over a hundred years?

Yep, we could have a dumper. That'd suck. But with a horizon of 20+ years and maybe 40-50 years of total retirement, I cant afford to sit scared in the corner and suck on my bonds and cd's. I know that strategy fails. I know the strategy i'm on will probably win. Hmmm...probably lose or probably win...tough choice!
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Re: Roth Re-Allocation
Old 03-09-2006, 10:53 AM   #23
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Re: Roth Re-Allocation

These puppies look like they've been hit a few times with sledgehammers...
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Re: Roth Re-Allocation
Old 03-09-2006, 11:02 AM   #24
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Re: Roth Re-Allocation

A little bowling at some rough alleys.
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Re: Roth Re-Allocation
Old 03-29-2006, 09:49 PM   #25
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Re: Roth Re-Allocation

Thought I would tell you what I ended up buying in my re-allocation.

With the 2006 Roth contribution ($5000) and cashing in the tech fund that went down and then stayed there, and money market. I had in round number $27K to reinvest in something better.

I ended up buying:
Energy Select Sector Spider (XLE) - $8K
IShare Russell 2000 index (IWM) - $11K
IShare S&P MidCap 400 Index (IJH) - $8K

Hadn't planned on the Energy fund but decided to stick a little in, I hope it has some life left. This gives a boost in small and mid that I wanted even if it is a small amount.

My wife's 2006 Roth was added to her Health Sector fund. It has done well and should hopefully continue with all us boomers demanding to live forever.

Now I need to start thinking about the big pot of money that has to be indexed the end of the year when I cash out of the company plan.

Jeb
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