Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 10-25-2013, 07:43 AM   #41
Recycles dryer sheets
jetpack's Avatar
 
Join Date: Aug 2013
Posts: 317
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.
__________________

__________________
jetpack is offline   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 10-25-2013, 07:48 AM   #42
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,093
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
__________________

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 10-25-2013, 07:55 AM   #43
Recycles dryer sheets
jetpack's Avatar
 
Join Date: Aug 2013
Posts: 317
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.
__________________
jetpack is offline   Reply With Quote
Old 10-25-2013, 07:58 AM   #44
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,093
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 *
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 10-25-2013, 11:07 AM   #45
Thinks s/he gets paid by the post
 
Join Date: Jan 2008
Posts: 1,495
Quote:
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
__________________
Options is offline   Reply With Quote
Old 10-25-2013, 02:38 PM   #46
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,836
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.
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 65% Equity Funds / 20% Bonds / 7% Stable Value /3% Cash / 5% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun is offline   Reply With Quote
Old 10-25-2013, 05:35 PM   #47
gone traveling
 
Join Date: Sep 2013
Posts: 1,248
Quote:
Originally Posted by Options View Post
"The four most dangerous words in investing are: 'this time it's different.'" - Sir John Templeton
+1
__________________
eta2020 is offline   Reply With Quote
Old 10-25-2013, 07:00 PM   #48
Thinks s/he gets paid by the post
 
Join Date: Mar 2009
Posts: 1,433
Quote:
Originally Posted by nun View Post
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.
__________________
Retired in 2016. Living off dividends / interest and a mini pension. Freedom.
foxfirev5 is offline   Reply With Quote
Old 10-25-2013, 08:28 PM   #49
Dryer sheet wannabe
 
Join Date: Sep 2013
Location: Houston
Posts: 12
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.
__________________
Jsore13194 is offline   Reply With Quote
Old 10-26-2013, 08:24 AM   #50
Full time employment: Posting here.
 
Join Date: Feb 2008
Posts: 920
Quote:
Originally Posted by Jsore13194 View Post
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.
__________________
tuixiu is offline   Reply With Quote
Old 10-26-2013, 08:57 AM   #51
Thinks s/he gets paid by the post
 
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,136
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.
__________________
Danmar is offline   Reply With Quote
Old 10-26-2013, 02:15 PM   #52
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,408
Quote:
Originally Posted by donheff View Post
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 -
__________________
unclemick is offline   Reply With Quote
Old 10-26-2013, 03:23 PM   #53
Full time employment: Posting here.
 
Join Date: Oct 2012
Location: Reno
Posts: 556
Quote:
Originally Posted by jetpack View Post
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.
__________________
RobLJ is offline   Reply With Quote
Old 10-26-2013, 03:46 PM   #54
Thinks s/he gets paid by the post
imoldernu's Avatar
 
Join Date: Jul 2012
Location: Peru
Posts: 4,616
Wanted to join the discussion, but don't have any investments.
Attached Images
File Type: jpg whatmeworry.jpg (12.2 KB, 100 views)
__________________
Today is the oldest you've ever been, and the youngest you'll ever be again. - Eleanor Roosevelt
imoldernu is offline   Reply With Quote
Old 10-26-2013, 04:46 PM   #55
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
 
Join Date: Dec 2008
Posts: 5,879
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.

Amethyst
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success – to be able to spend your life in your own way.’ Christopher Morley.
Amethyst is offline   Reply With Quote
Old 10-26-2013, 04:55 PM   #56
Recycles dryer sheets
NW Landlady's Avatar
 
Join Date: Jun 2010
Location: Seatlle
Posts: 185
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....
__________________
When a contradiction is impossible to resolve except by a lie, then we know that it is really a door.
S. Weil
NW Landlady is offline   Reply With Quote
Old 10-26-2013, 06:49 PM   #57
Full time employment: Posting here.
 
Join Date: Jun 2013
Posts: 620
Quote:
Originally Posted by runchman View Post
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.
+1
__________________
Which Roger is online now   Reply With Quote
Old 10-27-2013, 07:24 AM   #58
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,971
Quote:
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)...
__________________

__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack 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


 

 
All times are GMT -6. The time now is 06:39 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.