What 'ya doin'?

[ARB57]

I have much to learn about investing and would benefit greatly from your responses to the following...

As the stock market continues to pull back, which of the following best describes your response: "I'm staying the course," "I'm reducing my equity position" or "I'm adding to my equity position?" Also, for those who are retired, what is your asset allocation?

Thanks.

 

[FIREd]

I am adding to my equity position. Granted, my equity allocation is still quite low (around 33%).

 

[ARB57]

Thanks. What is your ultimate target for equities (as a percentage of your total portfolio?)

 

[Nords]

As the stock market continues to pull back, which of the following best describes your response: "I'm staying the course," "I'm reducing my equity position" or "I'm adding to my equity position?" Also, for those who are retired, what is your asset allocation?

We're over 90% stocks because my govt pension covers most of our needs. So as the market sinks we're staying the course and selling puts on Berkshire Hathaway...

 

[pb4uski]

Staying the course and would buy if AA gets out of whack. 60/40 target, still about 60/40 as i rebalanced a while ago.

 

[ARB57]

Thanks so much. I want to make sure that I'm clear...you ARE retired and you're 60% in equities?

 

[FIREd]

Thanks. What is your ultimate target for equities (as a percentage of your total portfolio?)

Target is 50/50, but could go up to 70/30 if the market gets cheap enough.

 

[W2R]

I'm retired, and I am staying the course (and will rebalance in January).

My target AA is 45:55 equities:fixed.

 

[obgyn65]

I am not retired (but will retire next year). I am staying the course, with zero equities.

 

[arebelspy]

We're over 90% stocks because my govt pension covers most of our needs. So as the market sinks we're staying the course and selling puts on Berkshire Hathaway...

Read an article from a site I subscribe a week or two ago to making a compelling case to do the same thing.

http://livingoffdividends.com/2011/11/14/using-short-options-to-go-long-berkshire-hathaway/

 

[CyclingInvestor]

53, retired 5y, staying the course with 100% individual equities (since 1993).

 

[Dawg52]

57, retired 4y, staying the course with 21% individual equities and 100% med's.

 

[donheff]

I added equities in early August and am tempted to do the same now. I will definitely do so next week if we drop below 11,000.

 

[Ed_The_Gypsy]

Adding to equity position. First, with dividends. Considering liquidating bond funds (~4% of the pot) to buy more stocks/funds.

 

[grasshopper]

I took some intermediate bonds off the table, and replaced it with short-term and dividend paying equities. 60 YO retired 6 years now, 65/35.

 

[Tif7]

Over a decade before I'm retired. Currently 100% equities. Not changing anything. Monthly 401k contributions via payroll and company match go into equities.

T

 

[eytonxav]

~ 6 months to retirement. Currently about 20% equity, and 46% in cash; selectively buying some div stocks. Target equity allocation is 30%.

 

[freebird5825]

FIREd, age 53
AA 32/65/3
Staying the course Still accumulating on a modest scale, diversifying my MF bond holdings with respect to average duration.

 

[MichaelB]

We're retired. Our current equity allocation is <30%, have begun adding in small amounts. Target is 55% equities, and we would bring it to 70% at the right price.

 

[REWahoo]

Nuttin'
Retired: 38/54/6*



* +2% testosterone-induced beever cheeze market speculation

 

[pb4uski]

Thanks so much. I want to make sure that I'm clear...you ARE retired and you're 60% in equities?

Retiring next month. Am, have been and will continue to be 60% equities/40% fixed income in my investments. I think 60% equities/40% fixed income is quite typical of folks on this forum.

However, something to keep in mind is that this excludes my defined benefit pension and social security. If those were to be factored in as fixed income equivalents then it my AA would be more like 30% equities/70% fixed income.

 

[ripper1]

57, retired 4y, staying the course with 21% individual equities and 100% med's.

50/50 and 100% meds also.

 

[ARB57]

Thanks to all. Quite a diversity of opinions and approaches (as often seems to be the case.) A couple of posters have volunteered the fact that they also have a pension. On one hand, depending upon the size of one's nest egg, it would seem that the existence of a pension would "allow" one to be a bit more aggressive with their portfolio (higher percentage of equities.) On the other, having a pension might decrease the importance of growing that nest egg, thus reducing the need for greater exposure to equities. What's your take? If you don't mind, going forward, please let me know whether or not you have a pension and how that factors into your overall investment approach.

For the record, I'm 56...retired about a year...NO pension. I've been quite conservative on the investment front over the years, but have been buying a bit over the last 2 or 3 months. I'm currently at about 25% equities...75% fixed, but have an eventual equity target of 35-40%. Perhaps a bit higher should things get really cheap.

Your feedback is very much appreciated. Thanks!

 

[ripper1]

Thanks to all. Quite a diversity of opinions and approaches (as often seems to be the case.) A couple of posters have volunteered the fact that they also have a pension. On one hand, depending upon the size of one's nest egg, it would seem that the existence of a pension would "allow" one to be a bit more aggressive with their portfolio (higher percentage of equities.) On the other, having a pension might decrease the importance of growing that nest egg, thus reducing the need for greater exposure to equities. What's your take? If you don't mind, going forward, please let me know whether or not you have a pension and how that factors into your overall investment approach.

For the record, I'm 56...retired about a year...NO pension. I've been quite conservative on the investment front over the years, but have been buying a bit over the last 2 or 3 months. I'm currently at about 25% equities...75% fixed, but have an eventual equity target of 35-40%. Perhaps a bit higher should things get really cheap.

Your feedback is very much appreciated. Thanks!

I think a retiree in his or her mid 50's should take at least a 50/50 approach pension or not. Nothing is forever anymore with pensions. The only thing that might work anymore is having some exposure to stocks for growth. That being said you need an asset allocation plan that you can live with and stick to it.

 

[pb4uski]

I agree ripper1.

I'm 56 like ARB57. Retiring in December 2011. Small pension from a former employer that I will tap in 4 years that will cover 10-15% of annual living costs; plus SS (at age 70 I think).

I think I would probably be 60/40 whether I had the pension or not; I need equities as an inflation hedge in the event my longevity is good. But having the pension makes my withdrawal rate more comfortable than if I didn't have it.