Orchidflower
Thinks s/he gets paid by the post
- Joined
- Mar 10, 2007
- Messages
- 3,323
I use formula: 100 - my age = % in stocks.
Every year when I rebalance, this automatically gradually takes a small percentage of stocks off the table. Plus, the formula forces me to keep my emotions out of the equation.
100% in stocks? Too volitile for my blood. I like sleeping at night.
(I'm surprised at the number of retired here with high all-stock percentages...cool!)
Please correct me if I'm wrong, but it seems that the figure is now 120 instead of 100 that is used. The logic is that people are now living longer, and since both parents lived into their 90's guess I better use the new figure of 120. Just FYI if you are interested at all.
A number of you have mentioned the "fear" factor. Boy! I get that one since my mother wouldn't let me do anything to our joint account in 2008 when everything crashed. If she hadn't held me back, I would have gone to cash and re-bought everything at low prices and made a gob of money by now. Oh well...live and learn I guess.
I was REALLY upset at losing all that money and seethed in semi-silence since I knew it was money-making time then. I think (or, more honestly, I HOPE) I can retain my cool in a crash because I keep saying over and over Buffet's mantra: Buy when other people are fearful, buy when other people are fearful, buy when other people are fearful. It helps. However, I do remember one fellow on this Board that did just that and was jumping for joy at all the money he made in 2009....lucky/smart dog!
By the way, my apologies about not including The Street's calculator for asset allocation. I just found it the other day, and this morning tried to find it again to post but no luck. I have no clue how I got it either and didn't bookmarket it...crud!
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