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Anyone selling stocks to buy CDs, treasuries?
Old 09-21-2023, 02:39 PM   #1
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Anyone selling stocks to buy CDs, treasuries?

Were thinking of selling some our stock index funds to buy safe long-term bonds.
Well be 66 next year.
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Old 09-21-2023, 02:44 PM   #2
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Did that last year starting in the summer time. Zero stocks now.
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Old 09-21-2023, 03:02 PM   #3
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Originally Posted by Rianne View Post
Were thinking of selling some our stock index funds to buy safe long-term bonds.
Well be 66 next year.
Sold a lot of equities in early 22, bought short term bonds (T-bills). But not enough given what happened in 2022.

Still sitting at about 40% equities, collecting my 5%+ and working that short term ladder. I'm at about 7% under my net worth peak from December 21.

Not enough real return premium for me to go long term, especially on non-inflation adjusted bonds. 10-year TIPS real return is now at 2.115% (as I type this), which is "better" but still not enough to go big time.
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Old 09-21-2023, 03:08 PM   #4
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I'm happy with my 66% allocation in stocks however for my fixed income I would think it's still too early to jump into long-term bonds. I'm going to sit on my money market and wait for some more of my CDs to mature. Maybe next June or around then.
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Old 09-21-2023, 03:15 PM   #5
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Sold a chunk of VTI & VTSAX on ~ 7/25. Just riding with the settlement account with 5.28% for now. Seemed like the thing to do @ the moment...
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Old 09-21-2023, 03:17 PM   #6
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I have been at 30% or less equities since retiring 3 years ago.
I sold a significant amount of equities yesterday. I bought some shorter duration 6.5% - 7.2% yielders today.
My equity position sits at about 25% right now.
If I factor in withdrawals, we are sitting at less than 1% below our all time net worth high.

Just make sure the numbers - the yield from CDs - work for you.
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Old 09-21-2023, 03:24 PM   #7
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I try to maintain 50% equities allocation and do not sell anything. In fact, I will buy some stock if equities position drop below 45%.
But I will make sure CD/cash part is sufficient to take me to FRA.
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Old 09-21-2023, 03:26 PM   #8
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I’m not a market timer so no, I wouldn’t sell stocks to buy CDs or bonds. Interest rates are great today but that won’t last long term. I just stick with our 60/40 asset allocation.
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Old 09-21-2023, 04:59 PM   #9
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I’m not a market timer so no, I wouldn’t sell stocks to buy CDs or bonds. Interest rates are great today but that won’t last long term. I just stick with our 60/40 asset allocation.
+1. Evidently the OP is confident he/she can time the market.
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Old 09-21-2023, 05:03 PM   #10
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Im not a market timer so no, I wouldnt sell stocks to buy CDs or bonds. Interest rates are great today but that wont last long term. I just stick with our 60/40 asset allocation.
Im thinking that way but not so sure. If we can get 4+ coupons that provide income, Im thinking all tIRA remains CDs and treasuries. Then leave the taxed index funds alone. We have approximately 40% in taxable index funds and so far the returns have been good. 3 yr 7.1% 1 yr 11.2%, but where does it go from here? Powell seems to think interest rates will remain high for at least 2 years. Will the market panic? Or settle down and accept it?

There are a few ways to look at this. If we maintain 5% ROI, stay in the 12% tax bracket, 3% inflation with our SS we have 100% success with some left over after 30 years. That gives us $140k safe spending constant every year. We do not spend that much, but Im thinking nursing home or independent living for one of us at some point. Even if one of us dies, the SS reduces, were ok. Or we get the 25% haircut, still ok. This stuff gets complicated and Im using every calculator I can get my hands on🙏😊
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Old 09-21-2023, 05:10 PM   #11
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Our core equity allocation remains unchanged at 40% and we have no plans to change that. We did recently sell one stock which was purchased during the low of early 20 and increased quite a lot (6x). It was too volatile and reached 15% of the total portfolio, too high for us. and was never intended as a long term hold. The proceeds will go into fixed income and money market. It will also fund some BTD remodeling were planning.
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Old 09-21-2023, 05:17 PM   #12
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We stay ~50% equities. The fixed income portion is short to intermediate duration.

Not touching long bonds.

We don’t pay attention to income generated either. Total return baby!
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Old 09-21-2023, 05:29 PM   #13
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+1. Evidently the OP is confident he/she can time the market.
Or they just want to change their AA and want to time it opportunistically.
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Old 09-21-2023, 05:34 PM   #14
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Were happy floating between 70-75% equities. Our fixed income is increasing as treasuries and CDs mature and we purchase more at higher interest rates. Were going out as far as three years in new purchases, but have no intention of increasing our allocation.
We did recently sell some stocks to pay for a new roof and siding, plus a new bay window for our Jersey Shore home, and solar for our primary residence in PA.
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Old 09-21-2023, 05:47 PM   #15
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Or they just want to change their AA and want to time it opportunistically.
If we were to change our AA, this is the time to do it. Still on the fence. Its a different story if we were 40 yrs. old, theres plenty of time to recover. We were 50 in 2008 and remained strong in the market. Thoughts of preservation dancing in my head.
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Old 09-21-2023, 06:12 PM   #16
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We stay ~50% equities. The fixed income portion is short to intermediate duration.

Not touching long bonds.

We dont pay attention to income generated either. Total return baby!
Are long bonds >10 years for you?
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Old 09-21-2023, 06:13 PM   #17
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Were thinking of selling some our stock index funds to buy safe long-term bonds.
Well be 66 next year.
Almost all of our equities will end up in our estate. That's long term money, so no reason to sell. Market timing is impossible, so again there's no reason to sell. Watching the market's short term behavior is nothing more than entertainment; it tells us nothing substantive. So no reason to sell there either.

Make your decisions. Check back in five years to see whether your guesses were right. Some will be. Some won't. But inductive reasoning tells us that equities will probably be up and not by a tiny amount.
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Old 09-21-2023, 07:15 PM   #18
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For the most part, no, but I did sale some Toll Brothers a couple of weeks ago and purchased a 5 1/2% cd instead. I think these interest rates are really going to cause problems soon. How many people want an 8% mortgage or over 8% for car loans.
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Old 09-21-2023, 07:54 PM   #19
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I am poised to do so if yields tick up more like 6%+
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Old 09-21-2023, 08:08 PM   #20
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I'm sticking to my 60/40 AA +/- 5%. However if I could be guaranteed that switching to 100% CDs and/or Treasuries could generate enough real return to sustain us for life...well...[emoji4]
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