What's your Asset Allocation plan for 2022 ? 2023 ?

[cyber888]

With a volatile 2022 (inflation, higher interest rates, the Ukraine war, BA variants, etc), what's your 2022 asset allocation - more conservative or stay the course ? Will you be more bold or conservative going to 2023 ?

 

[njhowie]

It's been 1/99 for a few years. With the dip in stocks, I've gotten bold and though the 1/99 is the same, I've used some maturing bond proceeds to pick up a few bargain-priced preferred stocks and exchange traded debt.

Over the coming years, I expect that my 1/99 will remain the same. However, I'll be getting higher yields as I roll my maturing bonds into new ones, and potentially more preferreds and exchange traded debt. If there is a major market decline, I could possibly go to 5/95.

Overall - stay the course.

 

[easysurfer]

100-age = % equities
age = % fixed income

I don't pay attention to the outside noise .

 

[njhowie]

100-age = % fixed income
age = % equities

I don't pay attention to the outside noise .

Is that what you really have, or is it reversed? Increasing equities with age? More power to you!

 

[easysurfer]

Is that what you really have, or is it reversed? Increasing equities with age? More power to you!

You're fast. Was just about to make a corrected edit .

 

[aja8888]

At almost 79 years old with a very ill wife, I'm about 25% equities (50% energy, 50% broad market ETF) and the rest in cash or cash equivalents. I'm waiting for the death of bonds which is coming with the fed funds rates going up. Once I feel the blood is running in the streets, I will load up on high quality short maturity corporate bonds, munis, treasuries, and whatever suites my fancy.

 

[aja8888]

With a volatile 2022 (inflation, higher interest rates, the Ukraine war, BA variants, etc), what's your 2022 asset allocation - more conservative or stay the course ? Will you be more bold or conservative going to 2023 ?

So what are your choices on this?

 

[CyclingInvestor]

63, retired 15 years.

100% equities for decades and the forseeable future. I am just not comfortable with any other allocation. I agree it is best to ignore all the outside noise.

However, I do own a more conservative mix of stocks than in the past.

 

[foxfirev5]

Roughly 50/50 with maturing CD's and Treasuries slowly filling out the longer term rungs of my LMP ladder. It will take about 5 years to stretch out my current ladder into longer term maturities. At this point I'm taking it one year at a time. If rates go up I'll take it. If they go down I'll live with it.

The equity side is pretty much left alone except for minor rebalancing. 40/60 split between growth and value. FWIW international is currently 27%.

My plan is designed to meet my needs. I don't see any need to modify it due to the latest catastrophe. I manage to do this by believing the market is by and large efficient and nobody knows nothin'.

 

[pb4uski]

I'm not even sure how to describe my AA. The only equities that I have are 3% in SWAN which invests in SPY call options and UST and 5% in slightly OTM SPY LEAP calls that expire in Dec 2023 and Dec 2024 that should give me the price appreciation of SPY but with limited downside risk. On an if-converted basis my AA would be ~33/67.

 

[N02L84ER]

I plan to keep my AA at 55%/45% stocks/bonds unless there is a > 30% drop in the total stock market.

 

[SnowballCamper]

This.

I don't pay attention to the outside noise .

 

[Phroig]

I'm just under 45% equities; I'd like to bring that up to 50-55%. The rest is mostly in TIAA Traditional, with a bit in other stable value, I bonds, and cash.

 

[OldShooter]

We'll be 75 this fall. We were 60/40 until three or four years ago when we decided that the 40 was more money than we would ever need, so then we switched to 70/30. We maintained that until last summer when we committed to build a new lake house, so I estimated the net cost of the new house less the proceeds from selling the current house and moved that amount out of equities. Good market timing as it turned out. I haven't bothered to figure an AA because it doesn't matter. When the dust settles on the construction, the house sale, and paying taxes on tIRA withdrawals I expect we'll end up back around 70/30.

We pay no strategic attention to predictions. If the spike in inflation and the Ukraine war don't convince people that the future is random and uncertain, I don't know what will. I was just reading Schwab's magazine, Onward, which came last week but obviously went to press before Putin attacked. All the off-the-mark blather about the future made me smile. Ignoramus et ignorabimus

 

[SecondCor521]

With a volatile 2022 (inflation, higher interest rates, the Ukraine war, BA variants, etc), what's your 2022 asset allocation - more conservative or stay the course ? Will you be more bold or conservative going to 2023 ?

All of the items listed have zero impact on my target or actual AA.

My target AA is currently approximately 97.5/2.5. My actual AA is approximately 98/2, which is within my reallocation bands. So the strong likelihood is that I will do nothing.

I think "tactical rebalancing", which is how I would describe the question's premise, is a money-losing proposition. So I don't do it.

 

[USGrant1962]

Is that what you really have, or is it reversed? Increasing equities with age? More power to you!

I'm doing age in equities. Will ramp up to 65% or 70%, I haven't decided the end point yet. I increased fixed income in the 10 years as I approached my retirement date (to 55/45 ). Im now ramping the other way - a bond tent. I'm at 60/40ish today.

I really don't get the old age in bonds advice. It always seems to hold too much fixed income. For 30 year-olds bonds are a huge drag at 30%. Most 80-year olds certainly don't need 20 years (4% x 20 years = 80%) of fixed income lying around just hoping to keep up with inflation. I'm talking about a livable FIRE portfolio here and not a risky lean FIRE or a minimalist pensioner with a small portfolio to cover unexpected expenses.

Even Vanguard target retirement funds don't start ramping up fixed income above ~10% until you are about 40 years old, and then it just moves to 20%, not 40%.

 

[DrRoy]

I set my AA so my investments and I are ready for the uncertainty of the news and markets, not the other way around.

 

[NW-Bound]

Currently at 75% equity as I just checked on Quicken.

My stock AA varies from 60% to 80%, depending on how I feel about the market condition. And of course, the market can move swiftly to change that AA by itself too.

I don't think I will reduce stock AA as I age. I like stocks.

 

[perez99]

Keeping my 70/30... That 30% include almost 8% in cash which is about twice what I want it to be.
Just retired at 58.. all my fixed income is in the 401k on stable value. Used to do intermediate bonds, but got upset at the end of last year with the scenario of rates increase and subsequently NAV loss (never get emotional on much larger stock volatility, so go figure that one )

 

[wdberry62]

I'll stick to 75/25 which is where I've been for years. I don't see that changing in the future.

 

[FREE866]

I'm 55 so, barring a tragedy, I most likely have a 30+ year time frame so will continue with what is effectively 95/5.

 

[Dash man]

We’re about 60% stocks. About 20% cash/treasuries/stable value fund and the rest real estate. No plans to change and we’re just about back to where we were in equities at the beginning of the year.

 

[Koolau]

30% to 35% equities. The remainder in cash like equivalents (SPDAs, MYGAs, GIF, Short Term Bond fund, I-bonds, cash value in very old insurance policies, checking act.) and PMs in a lock box. At 75 that feels comfortable and I have "enough" though YMMV.

 

[CRLLS]

It has been a while since I checked, so I just did. 82% equities according to Fido. We don't need much from our nest egg. We are planning for 30 more years for us (age 100) and another 25 for our heirs. We are in it for the long haul.

 

[Spanky]

50/50 (equity/fixed income) - thinking about moving some of fixed income to gold ETF, e.g., IAU, GLD.