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Old 10-25-2013, 06:43 AM   #41
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What's AA stand for? It's not in the Acronyms list.
Automatic Allocation?
Annualized Annuity
Alcoa ticker?

Anyway, I just don't trust many of the long range financial predictors.. I think we're in a era, and a lot of things can go wrong. 2008 crash blew away many of those, and it seems like it's even more dangerous now. I guess I have low tolerance for volatility now, and should adjust my settings based on that.
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Old 10-25-2013, 06:48 AM   #42
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Quote:
Originally Posted by jetpack View Post
What's AA stand for? It's not in the Acronyms list.
It's the very first item on the Acronym's list: AA = Asset Allocation
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Old 10-25-2013, 06:55 AM   #43
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oh, hmm, I was looking here:
* Acronyms and Slang Frequently Used on the Forum *
and here:
Financial Acronyms Terms | Investopedia

I was close I guess haha.
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Old 10-25-2013, 06:58 AM   #44
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Apparently there are two acronym lists, the one you found is less current than this one in the FAQ's: * Acronyms and Slang Frequently Used on the Forum *
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Old 10-25-2013, 10:07 AM   #45
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Originally Posted by jetpack View Post
What's AA stand for? It's not in the Acronyms list.
Anyway, I just don't trust many of the long range financial predictors.. I think we're in a era, and a lot of things can go wrong. 2008 crash blew away many of those, and it seems like it's even more dangerous now. I guess I have low tolerance for volatility now, and should adjust my settings based on that.

"The four most dangerous words in investing are: 'this time it's different.'" - Sir John Templeton
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Old 10-25-2013, 01:38 PM   #46
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The great advantage of indexing and rebalancing to an AA is that it stops you from being paralysed by indecision when the market gets volatile. If the OP stuck to that play book they wouldn't be fretting.
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Old 10-25-2013, 04:35 PM   #47
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"The four most dangerous words in investing are: 'this time it's different.'" - Sir John Templeton
+1
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Old 10-25-2013, 06:00 PM   #48
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The great advantage of indexing and rebalancing to an AA is that it stops you from being paralysed by indecision when the market gets volatile. If the OP stuck to that play book they wouldn't be fretting.
The plan and AA keeps you from over thinking the situation and virtually eliminates the decision making process. This has enabled a guy like me to become FI while a brilliant anyalist (like my boss) is working well into the next decade.
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Old 10-25-2013, 07:28 PM   #49
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Keep in mind, the single biggest driver of your portfolio performance is asset-allocation!!
Proper asset-allocation is the best hedge you can have. Granted, today it's difficult to allocate fixed income, because bonds are at record highs, and interest rates at record lows. (think SHORT TERM). Wait for a pull-back in the equity markets before allocating any new money into stocks and you'l be fine.
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Old 10-26-2013, 07:24 AM   #50
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Keep in mind, the single biggest driver of your portfolio performance is asset-allocation!!
I'd say the returns on your investments is the bigger driver.
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Old 10-26-2013, 07:57 AM   #51
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Retired 7 years. We are always fully invested in div paying equities. Cash only held to cover lumpy expenditures. We treat pensions as FI proxy. Very simple for us- just spending the divs. About 3.75% yield presently. Since retirement total returns about 10% CAGR -good enough for me. We have a very high tolerance for equity risk and would never sell in a down market. hardly trade at all, maybe 1-2 times a year and hardly ever in the taxable accounts. Basically ignore AA as I can't change our pensions which represent about 50% of our income.
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Old 10-26-2013, 01:15 PM   #52
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I am with the stable AA folks. That helped me weather the big downturns with not much more than a yawn. I fiddle around at the edges by timing my liquidation events for annual expenses and occasionally buy up a bit of equities but I always hover near the 60/40 level.
Yawn. Horseshoe and hand grenade wise. 1970 about 60/40 - 2013 about 60/40.

Stay the course (Bogle) in hindsight caused some tense spincter tightening over some bear markets in the past but 20 years in ER has helped.

I do find it mildly irritating that I did the best by doing nothing and letting the computers rebalance my balanced funds.

heh heh heh -
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Old 10-26-2013, 02:23 PM   #53
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With this market outperforming long term 10% average, it certainly seems likely it's going to correct again.

I'd like to stop worrying and just balance my portfolio, but the market is driving me crazy!

What are you all doing with new cash? How much do trust the general advice.
As several have already indicated, figure out how much you'd like to invest and dollar cost average (divide in 4 and invest a 1/4th every 2-3 months).

I'm getting close to 5%+ on my stock allocation % so it's getting close to a question of when I should rebalance and from what funds. Same kind of dilemma, although I do have a process.
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Old 10-26-2013, 02:46 PM   #54
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Old 10-26-2013, 03:46 PM   #55
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We don't really have an asset allocation (gasp!), but this forum has taught me to think of our pensions as bonds, which means pretty much everything else except emergency funds, real estate, and those darned tax-deferred annuities, needs to be in stocks. So my TSP account is in one of the stock-heavier lifestyle funds. As for taxable accounts, I have been steadily dollar-cost-averaging into VG Total Stock, no matter what the market does. When a little bit extra comes along (capital gains distribution, say), that goes into VG Total Stock also.

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Old 10-26-2013, 03:55 PM   #56
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I received a large lump sum payment on the sale of my last big Building in April of this year....just after the market had risen about 25%. Ouch!

The market really freaked me out....so I held back on investing it for a while....probably would have done well just putting it all in, but I did wait until there were drops in the market & generally spread it among my Vanguard accts in installments when DJIA was under 15000.

So far, knock on wood, I have done better than I expected....hope it stays that way....
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Old 10-26-2013, 05:49 PM   #57
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Smartest thing I ever did years ago, for my peace of mind and investment performance, was determining the asset allocation I'm comfortable with, setting my portfolio to that, and then completely ignoring the market. No more decision making, no more worry, no more 'nuthin except rebalancing once in a blue moon.
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Old 10-27-2013, 06:24 AM   #58
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Originally Posted by NW Landlady View Post
I received a large lump sum payment on the sale of my last big Building in April of this year....just after the market had risen about 25%. Ouch!

The market really freaked me out....so I held back on investing it for a while....probably would have done well just putting it all in, but I did wait until there were drops in the market & generally spread it among my Vanguard accts in installments when DJIA was under 15000.

So far, knock on wood, I have done better than I expected....hope it stays that way....
History would suggest that you'll do well in the long run, but you can plan on some painful corrections along the way - it probably won't just "stay that way." That's what investing is all about (vs market timing)...
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