bradaz2488
Recycles dryer sheets
- Joined
- Aug 12, 2013
- Messages
- 275
Hello… I have a couple of questions to bounce of you FIRE experts.
First question: I’m sitting on 32% cash, 8% bond and 60% equities in my total portfolio. The main reason for the flood of cash is I ER’ed this year and I had to cash out of company stock and took the lump sum payout from the pension plan. I do not subscribe to market timing, but I do feel that the markets may be getting ahead of themselves and we may see a 10-15% pullback in the near future. I know that I cannot continue to be 32% cash and archive my 6% average return rate and keep up with inflation. I can think of only 3 options for moving my cash positions into equities & bonds: 1) Cost dollar averaging, 2) Buy on dips or 3) Move all at once. I have been doing cost dollar averaging for the past 25 years and do not consider myself a trader or an expert on markets. Any suggestions or strategies that have worked for you?
Second question: 20% of my total portfolio that is still in the companies manage fund (their contributions) which tends to be on the conservative side (up 8% YTD). I plan to roll it over into my IRA account so I will have more control of how it gets invested, but again this will become cash and then I’ll have to decide how & when to put it back to work in equities & bonds (refer to first question J). There is no time requirements for me to move these funds, but I’m thinking I should do it at some point. I just do not know what is the best strategy for doing this given where the market is at right now.
What would you do??
First question: I’m sitting on 32% cash, 8% bond and 60% equities in my total portfolio. The main reason for the flood of cash is I ER’ed this year and I had to cash out of company stock and took the lump sum payout from the pension plan. I do not subscribe to market timing, but I do feel that the markets may be getting ahead of themselves and we may see a 10-15% pullback in the near future. I know that I cannot continue to be 32% cash and archive my 6% average return rate and keep up with inflation. I can think of only 3 options for moving my cash positions into equities & bonds: 1) Cost dollar averaging, 2) Buy on dips or 3) Move all at once. I have been doing cost dollar averaging for the past 25 years and do not consider myself a trader or an expert on markets. Any suggestions or strategies that have worked for you?
Second question: 20% of my total portfolio that is still in the companies manage fund (their contributions) which tends to be on the conservative side (up 8% YTD). I plan to roll it over into my IRA account so I will have more control of how it gets invested, but again this will become cash and then I’ll have to decide how & when to put it back to work in equities & bonds (refer to first question J). There is no time requirements for me to move these funds, but I’m thinking I should do it at some point. I just do not know what is the best strategy for doing this given where the market is at right now.
What would you do??