"How do you handle the steep downturns in the market"

[HFWR]

I've worshipped a few inanimate objects because of JD...

 

[Lsbcal]

? just curious, why did you sell your TIPS. Are you rebalancing AA and putting the TIPS funds into equities?

Sold the TIPS because rates are at such low levels now. I couldn't resist taking the profits. Its just a matter of reducing duration when rates come down a lot to lock in gains. If they move up in the next year or two I'll be a buyer again. In the meantime I'll stay short term in MM or at most 1yr to 2yr duration. Short duration should give me some measure of inflation protection.

 

[unclemick]

Hmmm - I seem to remember attempting to utilize something called 'Lynchburg Lemonade' to socialize with sweeties in Huntsville,AL circa 1974/75.

Didn't help my stock picking though - I believe there were some inappropriate gambles on low cost warrants. Will take the 5th on the other stuff.

heh heh heh - looks purity but Jack's not my buddy!

 

[Nords]

The market's down 8% in January alone.

More precisely, the stock market is down 8% in January. Not everyone is getting hit that badly in their portfolios because not everyone is 100% stocks.

How do the fixed income/retired folks not fret?

Excessive surfing, even when the water is a "frigid" 75 degrees. Gotta have priorities.

The long-term perspective is that our annual portfolio highs keep getting higher and our portfolio lows are also getting higher. Being right two-thirds of the time also means being "wrong" a third of the time.

People who can't stand equity volatility should buy inflation-adjusted annuities.

 

[friar1610]

Pretty much like a lot of other folks have posted:
- 5% off the table in cash/MM funds;
- "On the table" split evenly between (mostly) index equity funds and fixed income. Fixed income includes an I-Bond/CD ladder which should get me through 8 years of supplementing pension/SS if needed. Remaining fixed in Vanguard Total Bond Market Index.

I'm down about 4.5% since 12/31/07. But I've rarely had to tap the port since retiring 4 1/2 years ago, so I'm not really sweating it.

 

[RetireeRobert]

I silently curse and swear to myself (and sometimes at myself).

 

[Retire Soon]

50% Wilshire 5000 Index
45% Intermediate Term Bonds
5% Cash

 

[lazygood4nothinbum]

The market's down 8% in January alone. How do the fixed income/retired folks not fret?

an extra two years of adventurous travel in thailand or buenos aires depending on how my spanish classes go.

 

[audreyh1]

The market's down 8% in January alone. How do the fixed income/retired folks not fret?

2 years of living expenses in MM funds.

58% stocks and 42% in bonds/cash in portfolio. That supports several more years needs without having to sell any equity funds if for some wild reason the "bear" is protracted.

So what if my total portfolio is back to levels last seen in mid-late 2006. It's still way higher than it was in 1999!

By the way, I don't consider myself "fixed income". That's really for those poor folks stuck with a pension with no COLA adjustment. But those guys don't have to worry about tanking stock markets either!

Audrey

 

[BUM]

I handle the downdrafts the same way as the updrafts... a firm hand on the rudder and a manhattan in the other

 

[TromboneAl]

I've worshipped a few inanimate objects because of JD...

 

[HFWR]

[-]It was dark; I was drunk...[/-]

You can't prove a thing...

"Well you should see Polythene Pam..." The Beatles