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Old 04-08-2020, 05:45 PM   #41
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I haven't sold anything, but I'm not sure my AA was right for me. Bonds are apparently not conservative enough for me, and I'm considering holding more CDs instead of bonds. I'll wait at least another month to see what happens with my bond funds before going that route.
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Old 04-08-2020, 06:04 PM   #42
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I think I'll transition to a 60-30-10 AA, equities, bonds, cash.
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Old 04-08-2020, 06:37 PM   #43
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I think I'll transition to a 60-30-10 AA, equities, bonds, cash.
From what?
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Target AA: 50% equity funds / 30% bonds / 20% cash
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Old 04-08-2020, 06:43 PM   #44
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I dunno. Gotta wait until the statement comes in. Used to be 80-18-2.
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Old 04-08-2020, 06:46 PM   #45
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I learned that I need to buy a personal powered respirator when such things are available again.
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Old 04-08-2020, 09:08 PM   #46
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We changed our AA to be very conservative after 2008. Looking back I don't know why we didn't retire in 2007, call it good enough and move everything to conservative investments. We could have both retired several years earlier than we did. I learned back then, to paraphrase Warren Buffet, there was no point in risking the money I had and did need to make extra money I didn't have and didn't need.
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Old 04-08-2020, 09:17 PM   #47
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People talk about Black Swans. The virus was not a black swan to the public health community; they have been preparing and warning for years. The dip in stock values was not a black swan to anyone who is familiar with the market. The only black swan here was the arrival of the virus and its timing. "Drastic" for its victims, to be sure.
So the economy getting put on lockdown is not a swan? LOL, I thought I was wrong about this being a swan or not. You're in a whole 'nother league.

Let me know if you change your mind when/if we're getting near depression level, this has the potential to make 2009 feel like a mild recession.

I haven't changed anything financially but it sure has taught me the value of the friendships I have while volunteering at my local food pantry. There's a whole lot less of us volunteers there now.
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Old 04-08-2020, 09:34 PM   #48
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Taught me that an equity allocation of (100 - age) isn't too bad of a rule of thumb .
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Old 04-08-2020, 09:52 PM   #49
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It hasn't taught me much. My confirmation bias is quite strong. It has reinforced my belief in index investing. I know now more than ever before that my asset allocation is a tool to give me something to do when we encounter a "drastic financial situation". --rebalance-- As a result I bought stocks low, and sold bonds high. If it gets more drastic, I'll do it again. As long as the financial system is working, the market will go up in the long run. If the financial system stops working, not much else will be working either, and I'll wish I had bought reams of silver dollars--maybe at the next stock market peak?
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Old 04-08-2020, 09:54 PM   #50
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Sold almost all equities in late 2019. Missed out on 10% run-up in early 2020, but also missed out on the big drop over the past few weeks. Was tempted to get back in in a big way when things dropped, but I think we will see lower in the next several weeks. Another option is dollar-cost-averaging back in starting now, but I am chicken...
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Old 04-09-2020, 04:58 AM   #51
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I believe it teaches everyone how truly comfortable they are with their AA,well beyond what various tests/assessments tell you how much risk you can tolerate. It is the "practice" that validates if your "theory" is correct.
+1 I found that I was doing so much better than in 2008. My AA was 58 instead of 82 and beta was 1.0 instead of ~1.2. I had been on a course where with every (approx) 4% rise in NW I was reducing my AA by a point. Going forward, I am thinking of making these moves a little larger, as I do not really need the equity exposure.
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Old 04-09-2020, 05:39 AM   #52
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(1) Financially, nothing. Seen movies of this genre several times before.
(2) Keep your ammo shelf full at all times; ya can't find it when the mob panics.
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What has this drastic financial situation tought you?
Old 04-09-2020, 05:52 AM   #53
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What has this drastic financial situation tought you?

Im grateful for the late Jack Bogle and Vanguard Corp.
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Old 04-09-2020, 05:54 AM   #54
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Originally Posted by RobbieB View Post
I think I'll transition to a 60-30-10 AA, equities, bonds, cash.
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Originally Posted by RobbieB View Post
I dunno. Gotta wait until the statement comes in. Used to be 80-18-2.
Once the statement comes in, you may find that you might not have much transitioning to do at all - it will likely already be close to 60-30-10 because of how stocks and bonds have performed since the last statement. What is more important would be remaining at 60-30-10 going forward - as stocks appreciate and the AA becomes more heavily slanted towards equities again to continue to rebalance towards 60-30-10 so you don't find yourself at 80-X-Y again.
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Old 04-09-2020, 06:13 AM   #55
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It's been interesting for me as I came out of semi-retirement back to work. I like FIREd had a divorce, which cut my net worth in half, but I was still able to be 'retired' with a consulting company doing quarter-time work to stay intellectually challenged.

This episode has not changed my philosophy and has even further demonstrated to me that I could quit right now and still be solvent. It is interesting to look back at the different decisions I made (and that were thrust upon me) and realize I've done pretty well financially and will be fine for a long time to come.

I work in Health IT over here, so you can imagine I am very busy. The demand for instant virtualization of healthcare services is driving most of my current work.

The part of this decision I made to go back to work that is not being fulfilled right now is the travel aspect, but I hope that will come back into the picture.

I did go and look at my portfolio and it has held up fairly well. I am happy with my AA and my current rate of spending/saving/etc. My lifestyle is fine for me - interestingly from a personal standpoint, outside of the lack of travel, I stayed home a lot, cooked for myself a lot and pursued simple hobbies/interests before. There has not been much of a change for me with this 'lockdown.' Most people who meet me would think I'm an extrovert, but I tell them I am actually an introvert and that when I do get in to a group of people, I'm like a charged capacitor who is immediately grounded.....all of that energy is quickly dissipated.

So, for me, this crazy episode in our world history of which I am a participant has validated many of my assumptions and life long decisions.
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Old 04-09-2020, 06:16 AM   #56
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Oh, and I 'imported' a Costco package of TP to Germany in my furniture shipment - I think it might last over a year for me. I haven't had any issues buying stuff here either on the economy or at the military base.....
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Old 04-09-2020, 06:22 AM   #57
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Im grateful for the late Jack Bogle and Vanguard Corp.

I'll second this and I'd add Bob Brinker for the education I got from him and for his introduction to Jack Bogle and Vanguard Corp. I was a Brinker listener for 30 years.
Brinker got me started investing in no-load mutual funds and all the tax deductible vehicles that I saved money in.


On gratitude, my wife and I are very fortunate and grateful. We have had a slightly above middleclass income. When I took our SS statements and inflation adjusted* them to today's dollar, then averaged the income, our inflation adjusted income over 37 years was approximately $71k. As we retired, our networth is more than our lifetime earnings.
This is a good reminder, I need to be thankful everyday!



* In 1981, our $18k income = $51k today.
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Old 04-09-2020, 06:29 AM   #58
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Although holding a mortgage wasn't stressful over the last 8 years, (3.25%) it became a nagging concern when my portfolio was sliding downhill. So today I sent a check to the mortgage holder to pay it off. Lesson learned. Tomorrow I start dollar cost averaging into a mutual fund again.
I don't get the consternation over this, but hope not having it makes you more comfortable. Hopefully the funds to pay it off were pulled out of market last year.
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Old 04-09-2020, 06:34 AM   #59
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I learned that despite watching a downward $200k+ move at the low point, I still feel comfortable with my AA and plan.

Also, that there are a LOT of "glass half full" people in the world, and that ER.Org is a microcosm of that.
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Old 04-09-2020, 07:01 AM   #60
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I haven't done anything big in the last 6 weeks. I have made a few fairly small rebalancing moves in my IRA even though it is not something I can really access (nor do I need to) for at least another 3 years. I have a pretty small range for the IRA's AA so I make a few "tinkering" moves every year. Haven't made any from bonds -> stocks in a while.


In my taxable account, I very rarely make any rebalancing moves because the purpose of that account is to generate the income I need to cover my expenses. The big move I made there was at the end of 2019 when I went over the ACA cliff for the third year in a row. I liquidated an actively managed stock fund I had been in since 1996 (while I was still working) which generated a lot of dividends and cap gain distributions in favor of an index fund which invests in mainly the same types of stocks but without all the annual income. This will keep my income taxes down and put me safely back into the ACA subsidy business, lowering my expenses.


All of this is pretty mild compared to 2008-09 when I first retired. I had to set up my taxable account to generate the ER income, so I tinkered with it a few times to make sure that was working properly to pay the bills. Like now, I did some occasional rebalancing in the (rollover) IRA.


I can't say I liked seeing the market tank in March, watching a lot of my market gains in the last few years vanish. But the most important part of my portfolio's performance remained intact - the monthly DPS from my main bond fund. The income it generated was basically unchanged from prior months. I can track this during the month by requesting its Daily Mil Rate to make sure it doesn't tank (and do something about it if it does).
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