Originally Posted by wingfooted
Just a question. I've got more or less the same 'problem' [of 5 mill investment portfolio].
How do you emotionally handle the rollercoaster in net worth while maintaining an investment portfolio. The daily swings can be ferocious.
We are in that ballpark. The last few years have been easy. Remembering back to 1987, 2000, and 2008-09, it wasn't fun to see the percentage swings even with the then smaller portfolio. But, you just ignore them and follow the investment plan.
If you can't ignore the air pockets that will necessarily be hit, your portfolio allocation is too heavy on equities. And if you think there is a chance you can't ignore them just because you now have a bigger portfolio, or have retired, you need to adjust the portfolio allocations now. We've been moving toward a bigger fixed income alocation in anticipation of soon retiring. Given we were 100% equity for forever, we still look too heavy to most--but we have enough "cash" and short term bonds to survive a relatively long bear market with no equities being sold.