chinaco
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Feb 14, 2007
- Messages
- 5,072
In 2006 we were 97/3 stock/cash... the only fixed was an emergency fund. In late 2006 we diversified into more fixed to prep for ER in 5 years. I rebalanced to 70/30. With an overall target of 60/40 that I would ease into over the next couple of years. I was doing it as a precaution to stay on track for ER thinking that the market would eventually drop. At the time, I was struggling with Greed as I watched the stock market and commodities go higher and higher. Of course my 70% stock allocation was doing well... but it was difficult to watch the other 30% get paltry returns. I stuck with the plan.
Now that move is looking pretty smart. Some of the bond funds have lost a little due to interest rates... but for the most part they have held up well. Now I sit at about 52/48.
Now I am looking at rebalancing to my 60/40 target which would mean moving some money into stocks. I am going to do it because my judgment and expereince tells me that it is the thing to do (buy low/sell high)... However, I am suffering from Fear of further stock market deterioration.
I tell myself that my rebalance only puts 8% of the current portfolio into the stock market... But that money is part of my ER fixed intended for income when I ER in (planned 3 years). It is difficult to do...
I am sure many are in a similar situation and having the same struggle? Share your stories and thoughts.
Now that move is looking pretty smart. Some of the bond funds have lost a little due to interest rates... but for the most part they have held up well. Now I sit at about 52/48.
Now I am looking at rebalancing to my 60/40 target which would mean moving some money into stocks. I am going to do it because my judgment and expereince tells me that it is the thing to do (buy low/sell high)... However, I am suffering from Fear of further stock market deterioration.
I tell myself that my rebalance only puts 8% of the current portfolio into the stock market... But that money is part of my ER fixed intended for income when I ER in (planned 3 years). It is difficult to do...
I am sure many are in a similar situation and having the same struggle? Share your stories and thoughts.