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Moved money from stocks to guaranteed today.....good idea?
02-24-2020, 03:03 PM
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#1
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Dryer sheet aficionado
Join Date: Apr 2013
Posts: 32
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Moved money from stocks to guaranteed today.....good idea?
Been wanting to rebalance for awhile, did it today. Was that a poor decision.
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02-24-2020, 03:09 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Location: North Scottsdale
Posts: 1,545
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Quote:
Originally Posted by Dhickman57
Been wanting to rebalance for awhile, did it today. Was that a poor decision.
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Time will tell. I know this much though...last Friday would have been a better day to move money to "guaranteed".
__________________
FIRE'D in July 2009 at 51...Never look back!
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02-24-2020, 03:17 PM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2012
Posts: 6,135
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Quote:
Originally Posted by Dhickman57
Been wanting to rebalance for awhile, did it today. Was that a poor decision.
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It's only a flesh wound...
__________________
FIREd date: June 26, 2018 - "This Happy Feeling, Going Round and Round!" (GQ)
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02-24-2020, 03:33 PM
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#4
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Dryer sheet aficionado
Join Date: Jul 2013
Location: Castle Rock
Posts: 31
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Enjoyed the run up over the last few years and have moved a quarter of my taxable over to ATT. Just over 5% dividend. I've been enjoying their divis now for the last ten years in a SEP. Given the interest rates here lately I'm wondering if that's a mistake or not?
Not trying to hijack your thread 57, just another lost soul looking for guidance.
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02-24-2020, 03:38 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Apr 2016
Location: Ex-Cali
Posts: 1,236
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Quote:
Originally Posted by Dhickman57
Been wanting to rebalance for awhile, did it today. Was that a poor decision.
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Ask again in a year or two. I can better judge your decision then.
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______________________
The plan was September 1, 2022 and I am 95% there. Still working a few hours a week at the real job.
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02-24-2020, 05:44 PM
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#6
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Full time employment: Posting here.
Join Date: May 2013
Posts: 609
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No way to know til time ticks away. Don’t spend time second guessing. Just try to figure out what prompted the decision (was it the massive selling in the market or your own calculation of fair value) and then use that info to decide if your asset allocation matches your overall risk tolerance.
__________________
Saved 8 figures by my mid-40's as a professional bubble-spotter. Beware...the Fed creates bubble after bubble after bubble.
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02-24-2020, 08:07 PM
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#7
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Recycles dryer sheets
Join Date: Nov 2017
Posts: 85
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Quote:
Originally Posted by ghsebldr
Enjoyed the run up over the last few years and have moved a quarter of my taxable over to ATT. Just over 5% dividend. I've been enjoying their divis now for the last ten years in a SEP. Given the interest rates here lately I'm wondering if that's a mistake or not?
Not trying to hijack your thread 57, just another lost soul looking for guidance.
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It depends on what % of your total portfolio AT&T is now. I typically do not exceed 3% of my portfolio for any single stock - no matter how good I feel about it.
Many good stocks fell on the way side... Kraft Heinz, GE, Macys, etc etc.. today cruiseline stocks lost about 10% in one day.
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02-24-2020, 09:01 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Aug 2013
Posts: 1,660
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No. Yes.
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02-24-2020, 09:11 PM
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#9
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Thinks s/he gets paid by the post
Join Date: May 2014
Posts: 1,390
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Who knows if it was a good idea or not? I can say I moved some of my tIRA money into a balanced fund a few months back. So I am about 50% stocks, so I can hopefully endure whatever the market does.
__________________
Understanding both the power of compound interest and the difficulty of getting it is the heart and soul of understanding a lot of things. Charlie Munger
The first rule of compounding: Never interupt it unnecessarily. Charlie Munger
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02-24-2020, 09:14 PM
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#10
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Dryer sheet aficionado
Join Date: Apr 2013
Posts: 32
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Thanks for the input, as I agree with all, only time will tell. As early as tomorrow, if stocks continue down: good move.
If stocks return to previous levels: bad move. Either way I needed to rebalance back to my more conservative level of stock / guaranteed mix to get back to a comfortable level for me. My timing was probably bad. Thanks again.
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02-25-2020, 04:16 AM
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#11
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gone traveling
Join Date: Jan 2019
Location: NW Ohio
Posts: 1,156
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Last September I went safe (for a month) on a downturn. If I would have stayed put in equities, my YTD return would have been 34.7%, I only achieved 29.8%.
Market timing doesn't work for most.
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02-25-2020, 07:13 AM
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#12
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Thinks s/he gets paid by the post
Join Date: Jul 2013
Posts: 1,879
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Choose an AA. Rebalance according to predetermined metrics.
Keep emotions/politics/news out of the process.
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02-25-2020, 12:02 PM
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#13
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Thinks s/he gets paid by the post
Join Date: Aug 2013
Location: North
Posts: 4,031
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Quote:
Originally Posted by mrfeh
Choose an AA. Rebalance according to predetermined metrics.
Keep emotions/politics/news out of the process.
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+1. Automagic! PRESTO!
__________________
Time > $$$ ~ 100% equities ~ FIRE @2031
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02-25-2020, 12:26 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Jul 2003
Location: Pasadena CA
Posts: 3,341
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Yesterday, today and very possibly tomorrow-very good idea. Down the road a bit, who knows?
__________________
T.S. Eliot:
Old men ought to be explorers
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02-25-2020, 04:14 PM
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#15
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Full time employment: Posting here.
Join Date: May 2007
Posts: 881
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Why didn’t you get out at the high last week instead of locking in stock losses now? When is the low?
__________________
"It is better to have a permanent income than to be fascinating". Oscar Wilde
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02-25-2020, 04:20 PM
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#16
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2008
Posts: 13,130
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Quote:
Originally Posted by mrfeh
Choose an AA. Rebalance according to predetermined metrics.
Keep emotions/politics/news out of the process.
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Yup! That's my approach .
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
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02-25-2020, 08:34 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Aug 2015
Posts: 1,890
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If you don't have an Investment Policy Statement (IPS), then write one down. That's what keeps me from doing stupid things on a whim. Like pulling out after stocks drop 6%. Without it, I would still be buying naked puts and GE stock.
Here's mine. Hasn't changed much since I first wrote it. I read it when my bonus and RSU's vest and I am debating which supercar I NEED.
Objective: $XXM in retirement savings with a paid off house.
Asset Allocation (AA): 60% stocks / 40% bonds with 25% of stocks international
Rebalance when AA gets outside of 5% or annually
Invest in very low cost index funds
Live within retirement budget and save the rest.
Do backdoor Roth for myself and wife annually. Leave in cash in traditional IRA while waiting to roll over to Roth. Wait one week to do roll over to Roth to allow funds to clear. Once in Roth, lump sum investment into total stock market index fund.
Invest maximum allowed in 401k at a rate that maximizes company match. Use 401k to manage 60/40 AA. Invest only in low cost index funds where possible in 401k.
Invest maximum allowed in 401k after tax and do a mega backdoor Roth annually. Lump sum investment into total stock market index fund.
Invest 6% into company SSP II plan to get the 6% match.
Invest a minimum of $75k annually in taxable account.
Minimize current taxes by investing only in total stock and international stock index funds in taxable account. Tax free muni bond fund up to $50k is also allowed in the taxable account. Minimize taxes by concentrating bonds in 401k.
Maximize growth in Roth accounts by investing in total stock market index funds.
Restricted Stock Units (RSU): When RSU's vest, sell immediately and invest the money in a lump sum in accordance with my Asset Allocation (AA) in my taxable retirement account.
Bonus: Invest entire bonus each year in a lump sum in accordance with my Asset Allocation (AA) in my taxable retirement account.
Military Pension: Invest 100% of pension in taxable account.
Life Ins: Maintain multiple term life policies laddered until age 78. As savings becomes sufficient to maintain DW current lifestyle with low risk, policies will be allowed to end without renewal.
Inheritance: let my wife decide what to do after waiting three months.
__________________
Consistently sets low goals and fails to achieve them.
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02-25-2020, 09:48 PM
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#18
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Recycles dryer sheets
Join Date: Jul 2018
Posts: 328
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I am not sure that rebalancing mean to sell everything and put it into cash. Then buy back... To me that more like timing the market.
With that being said: Are you happy and feel SAFE That is what would matter to me.
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02-26-2020, 05:32 AM
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#19
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2017
Location: City
Posts: 10,337
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Maybe. Maybe not.
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02-26-2020, 05:57 AM
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#20
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Location: Upstate
Posts: 2,948
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Background: From a day or two before the end of the year until now I've sold about $125k worth of equities between my accounts and one for my child. In terms of the end of year sales, for DC, it was partly tax gain harvesting (in a UTMA), for me simply touching the brakes just a tiny bit in terms of equity allocation. The rest of the sales were into the rally of the last couple weeks (prior to the big selling), with the exception of selling 25K worth this past Friday.
Yesterday just before the close was my first dipping of toes into the market, I bought 100 ABBV @ 89.02. We will see, the play here is that drugs should do relatively better and ABBV has an HIV anti-viral that has been used for COVID-19 treatments.
Events like these will result in winners and losers. Perhaps many more losers than eventual winners, but there will be some. An interesting discussion might be who those (perhaps few) winners might be.
Don't get me wrong, I, like many others here have had a lot of recent pain...in my case a quick calculation tells me close to $200K worth since the market peak on 2/29/20.
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