scrabbler1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Nov 20, 2009
- Messages
- 6,698
I retired in late 2008 as the markets were crashing. But that actually helped me a lot, giving me an extra boost to begin my retirement I had not anticipated when I was putting together my ER plan. What happened was I was able to buy about 25%-30% more shares in a bond fund at bargain-basement prices. Those extra shares have given me extra dollars each month in the fund's monthly dividends.
I have two AAs in my portfolio, each monitored separately with different goals. In my taxable portfolio, the one which provides me with the money to pay my bills, I want to keep it more income-oriented while keeping a decent amount in stocks to act as an inflation guard. It's about 65/35 in favor of bonds and I adjust it only to tweak the dividend inflow. Since 2014, I have been taking as cash (instead of reinvesting) the stock fund's quarterly dividend to supplement the bond fund's income and help cover my expenses while maintaining a cushion to enable me to maintain my daily lifestyle. I had always envisioned doing this as part of my ER plan.
In my rollover IRA, one I won't have unfettered access to until I turn ~60 (5 years from now), I have been gradually adjusting the AA toward more bonds. Back in 2008, when I first created it from my 401k, it was 53/47 in favor of stocks (55/45 target). Now, with a 54/46 AA in favor of bonds, it is 53/47. I have made many rebalancing moves in the last 9 years thanks to the stock market increase although a few moves went in the other direction. Both the stock side and bond side have more than doubled.
I have two AAs in my portfolio, each monitored separately with different goals. In my taxable portfolio, the one which provides me with the money to pay my bills, I want to keep it more income-oriented while keeping a decent amount in stocks to act as an inflation guard. It's about 65/35 in favor of bonds and I adjust it only to tweak the dividend inflow. Since 2014, I have been taking as cash (instead of reinvesting) the stock fund's quarterly dividend to supplement the bond fund's income and help cover my expenses while maintaining a cushion to enable me to maintain my daily lifestyle. I had always envisioned doing this as part of my ER plan.
In my rollover IRA, one I won't have unfettered access to until I turn ~60 (5 years from now), I have been gradually adjusting the AA toward more bonds. Back in 2008, when I first created it from my 401k, it was 53/47 in favor of stocks (55/45 target). Now, with a 54/46 AA in favor of bonds, it is 53/47. I have made many rebalancing moves in the last 9 years thanks to the stock market increase although a few moves went in the other direction. Both the stock side and bond side have more than doubled.