2nd guessing myself

[gayl]

I just went 16% fixed income, 85% SCHB, only 1% individual stocks. I cannot believe I'm this conservative. Plus all future deposits will be into CDs. So I'll be 20% fixed soon. Is that a good allocation for someone retired 6+ years but pension covers 100% needs / this would be for wants & legacy? Guess the market is ready to rebound

 

[njhowie]

Why are you second guessing yourself? You want more risk? You do not "need" more risk, do you?

I really don't see the issue given that you've indicated:
1. Pension covers 100% of expenses
2. The portfolio is for wants/legacy

 

[EastWest Gal]

85% invested in the broad market (SCHB) does not seem conservative, or am I missing something? It seems aggressive, which makes sense for someone with a pension that covers 100% of your expenses.

 

[OldShooter]

85% invested in the broad market (SCHB) does not seem conservative, or am I missing something? It seems aggressive, which makes sense for someone with a pension that covers 100% of your expenses.

This.

 

[gayl]

Historically I've been 86% index, 14% individual stocks. So yes this seems conservative. But I'm traveling alot and don't want to log into my account when abroad

Thanks everyone. I'm right to scale back. Plan is to be 80% stocks / 20% fixed eventually

 

[Happyras]

Now if you sold covered calls in the money on your SCHB, I would consider that a brilliant and conservative approach. But heading into this recession, I would not do otherwise.......maybe buying SPY which has more option trading would be my choice. Oh, I forgot, that is what we do.....You get the option premium and the dividends for a very nice return with little risk.

 

[pb4uski]

I just went 16% fixed income, 85% SCHB, only 1% individual stocks. I cannot believe I'm this conservative. Plus all future deposits will be into CDs. So I'll be 20% fixed soon. Is that a good allocation for someone retired 6+ years but pension covers 100% needs / this would be for wants & legacy? Guess the market is ready to rebound

Nit: 16% + 85% + 1% = 102% so something doesn't make sense.

If your pension covers 100% needs/wants then you could safely go anywhere between 100/0 and 0/100. Sounds like you are investing for the next generation and heirs.

I'm not sure that I agree with your investment hypothesis that the stock market is ready to rebound though, but it's your money.

One possible way to play is to buy LEAPS on an indexed ETF like SPY. YMMV.

 

[kgtest]

...
I'm not sure that I agree with your investment hypothesis that the stock market is ready to rebound though, but it's your money.

One possible way to play is to buy LEAPS on an indexed ETF like SPY. YMMV.

I feel like they were being facetious when they said the stock market was ready to rebound...since they sold individual stocks into broad market.

I for one wouldn't mind a rebound lol. Looking at this down portfolio reminds me of 2007/2008 years. Thankfully I was just entering the markets then so I was buying low at that time. Now I am doing the same, but it sucks looking at all that hard work wiped away temporarily.

 

[pb4uski]

I feel like they were being facetious when they said the stock market was ready to rebound...since they sold individual stocks into broad market. ...

Re-reading the OP, you may be right.

 

[Major Tom]

85% invested in the broad market (SCHB) does not seem conservative, or am I missing something? It seems aggressive, which makes sense for someone with a pension that covers 100% of your expenses.

There is also a rationale for having very little in equities if you have "already won the game". I suppose it depends on the risk tolerance of the individual. As for me, if my expenditure was covered by a pension, I'd be heavily in stocks also, in the form of index funds.

 

[lawman]

There is also a rationale for having very little in equities if you have "already won the game". I suppose it depends on the risk tolerance of the individual. As for me, if my expenditure was covered by a pension, I'd be heavily in stocks.

Funny how different people are..Since my expenditures are covered by a pension I see no reason to invest in equities..

 

[NW-Bound]

There is also a rationale for having very little in equities if you have "already won the game". I suppose it depends on the risk tolerance of the individual. As for me, if my expenditure was covered by a pension, I'd be heavily in stocks also, in the form of index funds.

+1

Our SS will cover most of our needs. And the stock market is too interesting for me to quit.

 

[NW-Bound]

Now if you sold covered calls in the money on your SCHB, I would consider that a brilliant and conservative approach. But heading into this recession, I would not do otherwise.......maybe buying SPY which has more option trading would be my choice. Oh, I forgot, that is what we do.....You get the option premium and the dividends for a very nice return with little risk.

I don't like this.

Too many option sellers depresses the selling price. That's not cool.

 

[OldShooter]

There is also a rationale for having very little in equities if you have "already won the game". I suppose it depends on the risk tolerance of the individual. As for me, if my expenditure was covered by a pension, I'd be heavily in stocks also, in the form of index funds.

Funny how different people are..Since my expenditures are covered by a pension I see no reason to invest in equities..

The OP has the same philosophy that we do. Heavy equities for "wants" and a legacy. We do not consider this risky for us at all.

... this would be for wants & legacy ...

Regarding any "rebound" I am with Buffet:

"I never have the faintest idea what the stock market is going to do in the next six months, or the next year, or the next two."​

 

[gayl]

Nit: 16% + 85% + 1% = 102% so something doesn't make sense.

Correction (as of this morning): CDs 15.66%, SCHB 83.5%, BAC 0.76%, CUK .09% (gets me OBC. Bought at 6.50×100=650. Have recouped 650 OBC with another 550 on future cruises). Have been selling off individual stocks & rolling that into CDs. As you can see only 859k + slightly over 20k in bank savings account. Was over 1m but 2022 wasn't good.