Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 04-19-2016, 12:11 PM   #81
Thinks s/he gets paid by the post
 
Join Date: Jun 2004
Location: E. Wash
Posts: 1,057
Quote:
Originally Posted by tmm99 View Post
I did the same thing yesterday and a few days ago. Total, mid and small. I had been wanting to do this for a while, but didn't want to.We are not selling at the peak, but the numbers are good enough for me, and I bought them years ago, so it's all good. I now have some more money to convert to CAD before CAD starts gaining steam...
I am in the same camp of reducing equity exposure, especially in my mid-cap position. The speed bump I am trying to get over is what to do with the proceeds. My default has been VCSH.
I would be interested in hearing of what options others are using.
Nwsteve
__________________

__________________
nwsteve 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 04-19-2016, 12:26 PM   #82
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Gone4Good's Avatar
 
Join Date: Sep 2005
Posts: 5,381
Quote:
Originally Posted by nwsteve View Post
I am in the same camp of reducing equity exposure, especially in my mid-cap position. The speed bump I am trying to get over is what to do with the proceeds. My default has been VCSH.
I would be interested in hearing of what options others are using.
Nwsteve
Reinvestment is a challenge.

I've mostly also been trying to avoid exchanging equity risk for duration risk and credit risk. So that further complicates things.

Mostly I've been stashing this cash in 5-yr CDs figuring I'll break them if and when I need to. Ally and Synchrony are both yielding around 2%.
__________________

__________________
Retired early, traveling perpetually.
Gone4Good is offline   Reply With Quote
Old 04-20-2016, 09:57 AM   #83
Thinks s/he gets paid by the post
 
Join Date: May 2014
Location: Utrecht
Posts: 2,204
More or less my approach too.

Have been triggered by this forum to look at writing cash covered puts though. Would write them at -20% of current levels (+/- 1700).

Gives a bit of income and triggers a buy automatically when a dip occurs.
__________________
Totoro is offline   Reply With Quote
Anyone taking money off the table?
Old 04-20-2016, 03:35 PM   #84
Thinks s/he gets paid by the post
Fedup's Avatar
 
Join Date: Mar 2014
Location: Southern Cal
Posts: 2,930
Anyone taking money off the table?

No but I moved my husband's money from C to S and I for TSP fund. C is now at the top and S And I are still not recovered from their peaks. Hopefully it's a right move. But I think C has topped out. Grinding higher.


Sent from my iPad using Early Retirement Forum
__________________
When I post IIRC, that means going by memory. Google is your friend for facts. Stop being a lazy bum, I can't do all the googling for you. I'm lazy too. LOL
Fedup is offline   Reply With Quote
Old 04-20-2016, 03:42 PM   #85
Thinks s/he gets paid by the post
 
Join Date: Mar 2009
Posts: 1,433
Just peeled a little bit more off of equities. Delays SS further out beyond 65 by giving a few more months of living expenses. I realize that having over 5 years in SV funds I'm giving up potential returns, but it sure feels good.
__________________
Retired in 2016. Living off dividends / interest and a mini pension. Freedom.
foxfirev5 is offline   Reply With Quote
Old 04-20-2016, 04:05 PM   #86
Thinks s/he gets paid by the post
Rustic23's Avatar
 
Join Date: Dec 2005
Location: Lake Livingston, Tx
Posts: 3,624
I cashed out May 2015. Market is still below the point I did. I expect the market to go beyond that point, but put me in the bear column. My reasoning was. I have enough to last me and DW for the rest of our life. Preservation of capital is more important than increasing it. If the market does take a significant drop in the next year or so, I might put it back.
__________________
If it is after 5:00 when I post I reserve the right to disavow anything I posted.
Rustic23 is offline   Reply With Quote
Old 04-20-2016, 04:06 PM   #87
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: 42,070
Quote:
Originally Posted by Rustic23 View Post
I cashed out May 2015. Market is still below the point I did. I expect the market to go beyond that point, but put me in the bear column. My reasoning was. I have enough to last me and DW for the rest of our life. Preservation of capital is more important than increasing it. If the market does take a significant drop in the next year or so, I might put it back.
If you've already won, no need to keep playing the game...
__________________
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 04-20-2016, 04:27 PM   #88
Thinks s/he gets paid by the post
 
Join Date: Jan 2014
Posts: 1,317
Quote:
Originally Posted by Rustic23 View Post
I cashed out May 2015. Market is still below the point I did. I expect the market to go beyond that point, but put me in the bear column. My reasoning was. I have enough to last me and DW for the rest of our life. Preservation of capital is more important than increasing it. If the market does take a significant drop in the next year or so, I might put it back.
I wouldn't know where to keep my money if I cashed out all of my stock holdings. What did you put your money into?
__________________
splitwdw is offline   Reply With Quote
Old 04-20-2016, 05:07 PM   #89
gone traveling
 
Join Date: Sep 2013
Posts: 1,248
Quote:
Originally Posted by splitwdw View Post
I wouldn't know where to keep my money if I cashed out all of my stock holdings. What did you put your money into?
I am very curious too since cash/CDs are guaranteed way to erode principal.
__________________
eta2020 is offline   Reply With Quote
Old 04-20-2016, 05:36 PM   #90
Thinks s/he gets paid by the post
 
Join Date: Mar 2009
Posts: 1,433
Quote:
Originally Posted by eta2020 View Post
I am very curious too since cash/CDs are guaranteed way to erode principal.
Nothing will erode principal like a major downturn followed by a couple of decades to recover. Many examples, but I don't really care. Unless you have countless millions, why bother. Manage the risk and live your life.
__________________
Retired in 2016. Living off dividends / interest and a mini pension. Freedom.
foxfirev5 is offline   Reply With Quote
Old 04-20-2016, 05:43 PM   #91
gone traveling
 
Join Date: Sep 2013
Posts: 1,248
Quote:
Originally Posted by foxfirev5 View Post
Nothing will erode principal like a major downturn followed by a couple of decades to recover. Many examples, but I don't really care. Unless you have countless millions, why bother. Manage the risk and live your life.
Sure.... just historically one will will erode principal in pretty much guaranteed way by being in cash. Not so with something like S&P 500.

In fact looking at s&p 500 from high above over my entire life... charts looks mighty fine and I see no erosion of principal.

It is OK to go to CDs if you are 70. If you FIRE at 50 I do not think there any kind of safety in such allocation. In fact it is recipe for disaster.
__________________
eta2020 is offline   Reply With Quote
Old 04-20-2016, 06:04 PM   #92
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,615
Quote:
Originally Posted by Rustic23 View Post
I cashed out May 2015. Market is still below the point I did. I expect the market to go beyond that point, but put me in the bear column. My reasoning was. I have enough to last me and DW for the rest of our life. Preservation of capital is more important than increasing it. If the market does take a significant drop in the next year or so, I might put it back.
OK, I guess that the significant drop that happened was not significant enough? Some things were down 30% from May 2015 levels.
__________________
LOL! is offline   Reply With Quote
Old 04-20-2016, 06:12 PM   #93
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,389
Quote:
Originally Posted by Totoro View Post
... Have been triggered by this forum to look at writing cash covered puts though. Would write them at -20% of current levels (+/- 1700).

Gives a bit of income and triggers a buy automatically when a dip occurs.
There are a few of posters at the LOL's market timing thread doing that, myself included.

The problem with writing puts on the S&P at 20% below the current price (a relatively safe bet) is that it gives you only a return of around 2% annualized, and that is with expiration 9 months out or longer. You could just buy CDs, then break them to buy stocks if and when a crash occurs.

I have been doing this, but with ETFs in more volatile sectors, particularly the ones that have been beaten down bad. The annualized returns have been at least 10x to 20x higher, and for committing the money for only 1 to 2 months. And I am doing this on ETFs that I would have bought outright, except that I already hold them and worry about having too much of them.

The risk is indeed higher than betting on the S&P, so this is no free lunch. However, because the return is higher, I only commit smaller amounts at one time, and also ladder them so as not to get all my ammo expended at the wrong market turn.

As they say, "you pays your money and you takes your chances".
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is online now   Reply With Quote
Old 04-20-2016, 07:23 PM   #94
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Mulligan's Avatar
 
Join Date: May 2009
Posts: 7,369
Quote:
Originally Posted by eta2020 View Post
Sure.... just historically one will will erode principal in pretty much guaranteed way by being in cash. Not so with something like S&P 500.

In fact looking at s&p 500 from high above over my entire life... charts looks mighty fine and I see no erosion of principal.

It is OK to go to CDs if you are 70. If you FIRE at 50 I do not think there any kind of safety in such allocation. In fact it is recipe for disaster.


I am no Nostradamus, but I can pretend to be.... From what I have heard, the market historically speaking is very expensive...Top 5% of all time.. 1966 to 1982 is a long time to endure losses if one does not need to risk it. I think it all boils down to how much risk one actually has to take. Personally, having a pension and at 51, having all my money in CDs would not be a recipe for disaster, it would just be an added bonus. I could just stash cash in a safe and be perfectly fine. But like I said, this is just my personal situation.
__________________
Mulligan is offline   Reply With Quote
Old 04-20-2016, 07:23 PM   #95
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,389
I forgot to say that I have not been selling puts recently. Instead, for the last week or so, I have been selling covered calls, now that the market turns gun-ho. No, not on everything indiscriminately, but only the holdings I think may pull back. If they get exercised and someone buys my stocks, I will have sold high and raise my cash level. If they expire worthless, well I keep the premium, which is still better than doing nothing.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is online now   Reply With Quote
Old 04-21-2016, 09:45 AM   #96
Thinks s/he gets paid by the post
Rustic23's Avatar
 
Join Date: Dec 2005
Location: Lake Livingston, Tx
Posts: 3,624
Cash is in cd's for now. As I said it will go back, maybe, some day, or maybe not. I have said before, I am/was an index investor, and there even broad indexes. None of those went down 30% or I would have gone back in, maybe, maybe not.
__________________
If it is after 5:00 when I post I reserve the right to disavow anything I posted.
Rustic23 is offline   Reply With Quote
Old 04-21-2016, 09:57 AM   #97
Thinks s/he gets paid by the post
 
Join Date: Mar 2011
Posts: 3,695
Quote:
Originally Posted by foxfirev5 View Post
Nothing will erode principal like a major downturn followed by a couple of decades to recover. Many examples, but I don't really care. Unless you have countless millions, why bother. Manage the risk and live your life.
You mean like in 2008? I lost 26% in 2008!
__________________
Living well is the best revenge!
Retired @ 52 in 2005
marko is online now   Reply With Quote
Anyone taking money off the table?
Old 04-21-2016, 01:59 PM   #98
Thinks s/he gets paid by the post
Fedup's Avatar
 
Join Date: Mar 2014
Location: Southern Cal
Posts: 2,930
Anyone taking money off the table?

Maybe a lot more people take money off the table then they dare to admit, judging from the stock market today.


Sent from my iPad using Early Retirement Forum
__________________
When I post IIRC, that means going by memory. Google is your friend for facts. Stop being a lazy bum, I can't do all the googling for you. I'm lazy too. LOL
Fedup is offline   Reply With Quote
Old 04-21-2016, 02:58 PM   #99
Thinks s/he gets paid by the post
DFW_M5's Avatar
 
Join Date: Sep 2003
Posts: 4,980
The market and the economy have minds of their own, which makes timing too challenging for me, but I agree, if you've won the game, stop playing.
__________________
Doing things today that others won't, to do things tomorrow that others can't. Of course I'm referring to workouts, not robbing banks.
DFW_M5 is offline   Reply With Quote
Old 04-21-2016, 04:43 PM   #100
Thinks s/he gets paid by the post
 
Join Date: Jan 2014
Posts: 1,317
[QUOTE=Rustic23;1721569]Cash is in cd's for now. QUOTE]

Thanks, just wondered.
__________________

__________________
splitwdw is offline   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


Similar Threads
Thread Thread Starter Forum Replies Last Post
Take some volatility risk off table? galeno FIRE and Money 29 02-08-2014 09:44 PM
Chips off the table... Repairmanjack FIRE and Money 60 10-31-2009 04:11 AM
Chips off the table Repairmanjack Hi, I am... 12 10-28-2009 03:45 PM
Taking some money off the table redduck Hi, I am... 14 06-23-2005 11:25 AM

 

 
All times are GMT -6. The time now is 01:12 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.