Going All Cash in 401k

[braumeister]

Piece of cake. Anyone with an all-cash portfolio hits a new high every day (at least in nominal dollars).

 

[NW-Bound]

Well, I have not set a new personal high in a while. Withdrawing for living expenses certainly does not help.

This should be added to the list of "why retirement sucks".

 

[Al18]

Even with a 50/50 Asset allocation, I'm up 12% for this year. I don't think I'd be happy with just under 3% if I want all CD's.

I retired at the beginning of 2019, withdrew my expenses and I'm up 12% for this year.

 

[NW-Bound]

Well, I have not set a new personal high in a while. Withdrawing for living expenses certainly does not help.

This should be added to the list of "why retirement sucks".

Though I have not got back to my personal high of last year, I have recovered to 17+% YTD. That number is by eyeballing. I only compute the exact number at month ends.

I was joking earlier about the expectation to set new highs despite withdrawing in retirement, in case somebody missed my joke. The market is not always so kind. We have had a heck of a bull run for 10 years, and that came after a heck of a crash.

 

[2177V]

Even with a 50/50 Asset allocation, I'm up 12% for this year. I don't think I'd be happy with just under 3% if I want all CD's.

Past performances do not predict future returns. I also did very well from January to July but I decided to go 100% treasuries because yields and value of bonds move in opposite direction.

Add the fact that treasuries are safer and that most economists are now predicting a recession within 12 to 24 months, being in a asset preservation portfolio made sense to me as an older retiree.

There is nothing wrong with a 50/50 AA but you should think long term and not short term which is less than 24 months. The longest bear market and recovery time since WWII was 7-1/2 years. As long as you are young enough to experience a bear market and recovery time....and you do not have a short term need to withdraw, you should be OK.

 

[pb4uski]

Well, I have not set a new personal high in a while. Withdrawing for living expenses certainly does not help.

This should be added to the list of "why retirement sucks".

I'm within 1% of my all-time high and that is after withdrawals.... absent withdrawals I would definitely be at a all-time high.

 

[NW-Bound]

Not quite up to my old high watermark, even if I add back in the withdrawal.

International stocks have been lousy, plus my US stock picks got hammered by the Chinese-US trade quarrel.

It is actually amazing that I am not down as much as one would expect, when looking at the price chart of the more volatile holdings I have. The options I wrote helped a bunch. In fact, the premium from the options exceeded my living expenses.

 

[Al18]

Past performances do not predict future returns. I also did very well from January to July but I decided to go 100% treasuries because yields and value of bonds move in opposite direction.

Add the fact that treasuries are safer and that most economists are now predicting a recession within 12 to 24 months, being in a asset preservation portfolio made sense to me as an older retiree.

There is nothing wrong with a 50/50 AA but you should think long term and not short term which is less than 24 months. The longest bear market and recovery time since WWII was 7-1/2 years. As long as you are young enough to experience a bear market and recovery time....and you do not have a short term need to withdraw, you should be OK.

I have 8 years of living expenses in CD's, so I should be OK.

 

[Dtail]

I'm within 1% of my all-time high and that is after withdrawals.... absent withdrawals I would definitely be at a all-time high.

Same here again. Within 0.57%. We have been down this road together a few times this year.
Let's see next week.

 

[NW-Bound]

OK, you guys made me drag out the calculator to compute my number in order to stay competitive.

And after adding in my withdrawal, here's what I need to get to equal my personal high watermark reached back in 2018: 1.8%.