So I moved heavily into cash before the craziness...

[rayinpenn]

So I moved heavily into cash before the craziness.. in the mean time I’ve retired. I don’t believe in timing the market -I am in there for the dividends. Now I am still convinced it isn’t over...

everything I know says get back in ... My general strategy is keep a couple years in cash equivalents -enough to ride through a couple years of recovery the rest in equities. But the insanity got the best of me so I converted to Bonds.

 

[Jerry1]

I did something similar, though totally unplanned. When I moved my money to an FA, he liquidated my holdings in preparation to move the the portfolio he was/is recommending. The end result is that just before this crazy ride, I went from about 50% stock (S&P index) to less than 25%. I too just retired and am thankful to be mostly sitting out right now. Problem is, now I have to time getting back in. My initial thought is that I DCA back in after the start of the new year. I’ll have that meeting with the FA soon.

 

[rayinpenn]

I did something similar, though totally unplanned. When I moved my money to an FA, he liquidated my holdings in preparation to move the the portfolio he was/is recommending. The end result is that just before this crazy ride, I went from about 50% stock (S&P index) to less than 25%. I too just retired and am thankful to be mostly sitting out right now. Problem is, now I have to time getting back in. My initial thought is that I DCA back in after the start of the new year. I’ll have that meeting with the FA soon.

FAs scare me. If you read this bog I’d argue you probably dont need one. Have you every seen a calculation of what that 1% or .5% cst you over 30 years?

 

[Octogirl]

I moved 30% of funds into cash after the 2016 election (so early 2017) - wish I had moved even more. We also bought a rental about the same time. I'm retiring in 2019.

 

[street]

About 14% of my portfolio is cash (CD'S). My plan was to live off of that money and would never have to sell any of my investments in my life time.

From reading many different threads on this same subject, not many would approve of my plan. With SS coming and cash to live on, my plan is and still is, that I should never have to sell any investments if I don't want to.

In a nut shell my plan was to be able to ride out a long down turn in the markets. I hope it works.

 

[USGrant1962]

About 14% of my portfolio is cash (CD'S). My plan was to live off of that money and would never have to sell any of my investments in my life time.

From reading many different threads on this same subject, not many would approve of my plan. With SS coming and cash to live on, my plan is and still is, that I should never have to sell any investments if I don't want to.

In a nut shell my plan was to be able to ride out a long down turn in the markets. I hope it works.

Your plan is fine and good for you. It is very conservative and meets your needs.

What I think people object to is the suggestion by some that this level of conservatism in NECESSARY for early retirement.

 

[street]

^ I understand what you said most might abject too. The thing is we aren't that conservative and spend on what ever we need and more. In my plan it doesn't mean we won't spend any of the portfolio but the amount and what our expenses are, we should never have to sell, unless we want to.

That was always a fear for me going into retirement that I never wanted the markets to control my life. I always wanted to be in the drivers seat through bad times.

 

[Bryan Barnfellow]

So I moved heavily into cash before the craziness.. in the mean time I’ve retired. I don’t believe in timing the market -I am in there for the dividends. Now I am still convinced it isn’t over...

everything I know says get back in ... My general strategy is keep a couple years in cash equivalents -enough to ride through a couple years of recovery the rest in equities. But the insanity got the best of me so I converted to Bonds.

"Insanity" for some is "expected market volatility" for others! Best of luck to all of us.

-BB

 

[USGrant1962]

After being almost 100% equities for most of my investing career, I adopted a bond tent approach as I approached ER last year. So my fixed income portion of my AA peaked at 45% last year when I retired and I locked in an Age-in-Stocks AA. My stocks are a Rick Ferri Core-4 distribution of 60% U.S. / 30% International / 10% domestic REIT.

I also fortunately sold a bunch of long-held, highly-appreciated stock this year to fund the next couple of years expenses. That money is sitting in cash.

So bottom line is I'm down about 4% from the first of the year, and maybe 8.5% from the peak. Not fun but I'm not upset, especially after CY17 returns.

 

[NYEXPAT]

About 80% cash and the 20% stocks are fully hedged. Up about 12% YTD.

 

[rayinpenn]

I should have said ‘insanity’ wasn’t a comment about political parties... more extremism and the the inability to get anything done.

 

[footenote]

I've been nervous about over-valuation of equities throughout this year. Had a couple of liquidity events within qualified funds and moved proceeds to CDs and VMMXX. I wasn't happy as the market kept booming of course, but kept them there.

Haven't calculated precisely after yesterday's close, but I'm down somewhere around 8% from the peak (all holdings combined). Unpleasant, but, as USGrant1962 said, not devastating.

While I don't believe anyone can time the market, I'm pleased I listened to my gut and sheltered those gains from DA BEAR.

 

[big-papa]

So I moved heavily into cash before the craziness.. in the mean time I’ve retired. I don’t believe in timing the market -I am in there for the dividends. Now I am still convinced it isn’t over...

everything I know says get back in ... My general strategy is keep a couple years in cash equivalents -enough to ride through a couple years of recovery the rest in equities. But the insanity got the best of me so I converted to Bonds.

Getting out and going into cash is the definition of market timing. So, is getting back in. You might want to read Jim Otar's "Unveiling the Retirement Myth" for at least one systematic, non-emotional method of Dynamic Asset Allocation for when to get in/out. These methods are never foolproof and may cause "whipsaws" which is a series of closely spaced buy/sell triggers. They don't consistently result in higher returns, but they do tend to limit volatility, especially max drawdowns..

 

[HadEnuff]

So I moved heavily into cash before the craziness.. in the mean time I’ve retired. I don’t believe in timing the market -I am in there for the dividends. Now I am still convinced it isn’t over...

everything I know says get back in ... My general strategy is keep a couple years in cash equivalents -enough to ride through a couple years of recovery the rest in equities. But the insanity got the best of me so I converted to Bonds.

Are you completely out of equities at the moment?

 

[rayinpenn]

Getting out and going into cash is the definition of market timing. So, is getting back in. You might want to read Jim Otar's "Unveiling the Retirement Myth" for at least one systematic, non-emotional method of Dynamic Asset Allocation for when to get in/out. These methods are never foolproof and may cause "whipsaws" which is a series of closely spaced buy/sell triggers. They don't consistently result in higher returns, but they do tend to limit volatility, especially max drawdowns..

Funny thing.. We’ve been in equities for decades, only having sold a handful individual equities when the economics for those companies changed. Moved more into index /highly diversified ETFs and Funds. Held, held and held some more thru the corrections and that monster credit crisis. I’ve only cashed out 401K money one other time over 20 years ago, before a huge correction. This past September with a year end retirement in mind, hate and extremism up on a national level, and an overbought market (IMHO) I thought lets play it safe I sold. Ill wait a few days then buy back in. (My 401K is substantial, I’ll say no more)

Ill reinvest in a few day and stick with the strategy: Have enough in cash equivalent to ride out a few year correction.

 

[Bir48die]

FAs scare me. If you read this bog I’d argue you probably dont need one. Have you every seen a calculation of what that 1% or .5% cst you over 30 years?

Your opinion. Have a mix of both. One of mine made some great moves in anticipation of this. So you can bark about .5% or 1% but if he saved me a 15% drop that I would have missed then maybe he was worth it.

Yes I'm financially astute. Plus it's blog not bog.

 

[jollystomper]

About 14% of my portfolio is cash (CD'S). My plan was to live off of that money and would never have to sell any of my investments in my life time.

From reading many different threads on this same subject, not many would approve of my plan. With SS coming and cash to live on, my plan is and still is, that I should never have to sell any investments if I don't want to.

In a nut shell my plan was to be able to ride out a long down turn in the markets. I hope it works.

My plan is the same, probably a lot more conservative than your. Just before I retired at the end of June I had rebalanced to 40% equities, the rest in bonds (mostly in Stable Value fund) and cash. My plan is to have enough in cash to cover my SWR needs until we decide to take SS, as late as my FRA.

In truth (I know this does not apply to everyone), I am realizing that, with enough cash and other income sources, I do not need to have the market fully recover quickly to its previous highs, in terms of our everyday retirement living. It becomes more of an "ego" thing, as the peak gave me a "milestone" level for my equities that gave me a feeling of pride... which of course came before the fall.

 

[rayinpenn]

I do not need to have the market fully recover quickly to its previous highs, in terms of our everyday retirement living. It becomes more of an "ego" thing, as the peak gave me a "milestone" level for my equities that gave me a feeling of pride... which of course came before the fall.

+1
No one likes to see it drop when your not in the accumulation phase.

 

[gcgang]

about 80% cash and the 20% stocks are fully hedged. Up about 12% ytd.

genius!!!

 

[Bluegrass]

We’re all grateful you pointed out it’s blog and not bog. Cuz none of us knew. Including him.

 

[Helena]

.

I'm always in cash.

 

[marko]

I hope I'm not missing something in these discussions. I keep seeing a sense of impending doom lately.

The only thing I've done is to buy just a bit (under 1% of portfolio) after a new (for me) fund dispersed dividends and dropped in price.

Other than that, I'm holding, holding and, while this makes a disappointing year, I don't see it as anything catastrophic.

As 2011, 2015 and this year were awful, I just see this all as part of the cycle.

Dividends came in as the best of all time for us and that's what we live on.

The ever rising Dow tide can't be held back forever; the impediments have to give eventually.

 

[HadEnuff]

With equities higher than my comfort zone, and interests rates lower than my comfort zone, I'm right now at about 27% equities, 13% intermediate bond funds, 42% in a 5 year CD Ladder, and 18% cash. It's not where I intend to settle down, but I'd like to see things a bit closer to the mean, i.e. interest rates, and PE ratios, before I get do a more conventional AA. Not sure where I'll eventually settle....somewhere in the area of 40-50-10 maybe..Stock-Bonds-Cash...jury is still out on that.

 

[foxfirev5]

No change to my AA. Although my 40% equity stake is creeping toward 35%. Right now I'm reinvesting some dividends and certainly not selling. My 40% allocation to a CD ladder pays the bills and probably could for another 30 years if I chose to self annuitize it.

 

[rayinpenn]

We’re all grateful you pointed out it’s blog and not bog. Cuz none of us knew. Including him.

Really.. I chose not to comment about the typo because bir42 was angry about my comment about using a FA. I am the first to admit I am a poor typist.. My comment on the FA had no ill intent. Ive helped people who have hurt by FAs making poor choices. It can be heartbreaking.