I hit my 5% threshold for re-balancing my portfolio. Yesterday I made some changes to my IRA's and 401k's to bring things back in check. For a couple of years now my target has been 60/40 equity/Bond-cash. I'm 53 now and on a timeline to pull the plug before the end of the year. DW has a date for FIRE set at early next year.
I have been doing all my re-balancing in my tax advantaged accounts to avoid cap gains and paying state income tax on the sales.....live in NJ at the moment. I know it the right thing to do but since 2/3 of my savings are in after tax accounts, most of my equity index funds reside there. I am the opposite on the pre-tax accounts....heavy on the bonds.
As with most folks near FIRE in their 50's, I worry about sequence risk. I know I have enough cushion and that I can make it work even with a significant bear market....but non the less, I still worry.
I have been doing all my re-balancing in my tax advantaged accounts to avoid cap gains and paying state income tax on the sales.....live in NJ at the moment. I know it the right thing to do but since 2/3 of my savings are in after tax accounts, most of my equity index funds reside there. I am the opposite on the pre-tax accounts....heavy on the bonds.
As with most folks near FIRE in their 50's, I worry about sequence risk. I know I have enough cushion and that I can make it work even with a significant bear market....but non the less, I still worry.