Lsbcal
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Just read through the posts to date and did not see mention of need to rebalance in down markets. So there is a double wammy, need to buy more stocks from either cash or bonds as well as fund living expenses. Personally I'm 60/36/4 S/B/C. The bonds are 24/8/4 in 10yr TIPS/intermediate term bond fund / Ibonds. I personally don't like to have too much in short term bonds or cash.
Since TIPS tend to rise when stocks decline I'm planning on rebalancing from the 3.5yr duration bond fund and/or TIPS. The cash should last 1yr and then it will be time to rearrange the deck chairs to generate more cash for living expenses. By this I mean I'll sell some taxable money equities and buy them back in non-taxable accounts by selling either TIPS or intermediate duration bonds.
Only time where this may get sticky is if real rates rise (TIPS decline) and stocks also decline. Hasn't happened over a few years to my knowledge but it could happen I suppose.
Les
Since TIPS tend to rise when stocks decline I'm planning on rebalancing from the 3.5yr duration bond fund and/or TIPS. The cash should last 1yr and then it will be time to rearrange the deck chairs to generate more cash for living expenses. By this I mean I'll sell some taxable money equities and buy them back in non-taxable accounts by selling either TIPS or intermediate duration bonds.
Only time where this may get sticky is if real rates rise (TIPS decline) and stocks also decline. Hasn't happened over a few years to my knowledge but it could happen I suppose.
Les
