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Old 02-19-2017, 09:06 AM   #41
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Originally Posted by UnrealizedPotential View Post
My asset allocation is 30/70. I like the idea of an income stream coming in that when the stock market corrects , my income stream allows me to buy into cheaper stock prices. It's hard to sit there with a lot of cash and do nothing. On the other hand, it really stinks to not have cash when opportunities are everywhere during a bear market. Having a little cash is good.


A few posters above suggest portfolios of 100% equities as long as one has adequate "emergency cash" on hand to live on when equities tank. To me, that's not a position of 100% equities but an equities/cash AA. I guess my quibble is that an AA stated as equities/bonds/cash percentages, with substantial cash for either living expenses or timing opportunities implies a different strategy than remaining 100% invested at all times, as I prefer to do. Then there's the head scratcher of fitting home equity, businesses and rental units into a true AA formula. I know that someday when I'm elderly, if I really need to, I'll be thinking about liquidating home equity in some manner, so home equity does have a place somewhere at the AA table to me.
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Old 02-19-2017, 09:14 AM   #42
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Some may have a stash large enough relative to their expenses that their small emergency cash gets refilled often from the stock dividends. They can have a stock AA approaching 100%, and still feel confident that they will not have to sell low.
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Old 02-19-2017, 03:32 PM   #43
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I do garbage collection once a year and am forced to make some new acquisitions. But other than that nothing.

In business I would always sleep on the tough problems until a solution became obvious.
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Old 02-22-2017, 08:22 AM   #44
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Some great thoughts and takes on how the rich work their money. I always enjoy going back and reading posts in different threads and spending the time to actually listen to what people are telling us.
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Old 03-06-2017, 10:58 AM   #45
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As the bull market continues I hear and read it would be a good time to save the gains made. I will stand pat and weather the storm when it happens I don't have to sell any to live. I feel I will lose at some time but will gain it back in time. I have done all right through about 40 years in the market doing nothing.
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Old 03-06-2017, 04:44 PM   #46
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Agree philosophically with street. Do little or nothing.

I maintained an 80/20 allocation during my earning years. Only re-balanced as needed, and shifted investments when lower fee options surfaced in my plan. Also, only held two stock and two bond index funds. They served me well (low fees, easy to re-balance; never chasing returns - the ultimate losing game).

Since I am retiring this year, I opted to move to 60/40 (equities/assets). Once I (and DW) start drawing SS, I may move back to a higher equity position.

Good luck!
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