Marc
Recycles dryer sheets
As market has been increasing this year, I have been selling stock funds in $20K increments to build up cash position. So far, I have in cash all monies required for 2019 and enough to get me through June 2020; so, current turmoil does not bother me.
Now, I am looking at my bond funds. FCBFX (Corporate bond) has returned over 12% this year. This is a small part (maybe 10-15%) of my bond portfolio, FTBFX making up the preponderance. Would it be smart to start taking profits on this fund? Maybe $20K now and another $20K if it continues to rise?
I have never been a market timer; I have always stayed 100% invested. Now that I am retired and need to start liquidating funds for living expenses, I realize there are a multitude of schemes that I can use for choosing which funds to sell and when. I have been pleased with my selling so far and am glad that I have a good part of next year's funds in cash; however, I wonder if it is now time to start selling bond funds too.
Current AA 57% stocks, 38% bonds, 5% cash (according to Fidelity analysis)
Target AA has been 60% stocks, 40% bonds
Future desired AA 55% stocks, 40% bonds, 5% cash (realizing that with a 5% SWR that does not give me a large enough cash portion of portfolio).
thanks,
Marc
Now, I am looking at my bond funds. FCBFX (Corporate bond) has returned over 12% this year. This is a small part (maybe 10-15%) of my bond portfolio, FTBFX making up the preponderance. Would it be smart to start taking profits on this fund? Maybe $20K now and another $20K if it continues to rise?
I have never been a market timer; I have always stayed 100% invested. Now that I am retired and need to start liquidating funds for living expenses, I realize there are a multitude of schemes that I can use for choosing which funds to sell and when. I have been pleased with my selling so far and am glad that I have a good part of next year's funds in cash; however, I wonder if it is now time to start selling bond funds too.
Current AA 57% stocks, 38% bonds, 5% cash (according to Fidelity analysis)
Target AA has been 60% stocks, 40% bonds
Future desired AA 55% stocks, 40% bonds, 5% cash (realizing that with a 5% SWR that does not give me a large enough cash portion of portfolio).
thanks,
Marc