What's your very high-level strategy?

[motley]

I don't mean specific stocks or funds...for example for me I'm about:

40% large cap funds
40% small/mid cap
10% specialty
10% bonds

I've been aggressive and so had little in bonds actually and trying to make up ground as I'm 50something. But I've never been a bond fan and even now second-guessing that.

 

[2017ish]

Until a year or two before retirement, we had no emergency fund and no bonds. We gradually moved to 40% "bonds" (short term, investment grade) within a year after retirement, with a small value and balanced international tilt on our equities.

__________
Edited to add: we had two uncorrelated incomes, each of which easily covered our expenses. As always, YMMV.

 

[audreyh1]

Most people here call that asset allocation.

 

[motley]

Most people here call that asset allocation.

So you don't know your own strategy? Yikes.

 

[motley]

Until a year or two before retirement, we had no emergency fund and no bonds. We gradually moved to 40% "bonds" (short term, investment grade) within a year after retirement, with a small value and balanced international tilt on our equities.

I had thought about such a strategy...going low on bonds for most of my life has worked out quite well...but as the years creep up I'm realizing a need for a shift. When and how is the debate.

 

[aja8888]

So you don't know your own strategy? Yikes.

You are new here...right?

My very high level strategy is to stay healthy, alive and be retired. Everything else is small stuff.

 

[motley]

I think it was quite obvious in the OP what I meant. If people don't want to answer that's certainly their prerogative.

 

[aja8888]

I think it was quite obvious in the OP what I meant. If people don't want to answer that's certainly their prerogative.

Here's a thread for you to check out. If you haven't already done so, please introduce yourself to the members:

https://www.early-retirement.org/forums/f26/

 

[audreyh1]

So you don't know your own strategy? Yikes.

Huh? - how did you get there?

 

[Gumby]

So you don't know your own strategy? Yikes.

Motley, my new friend. Your first post in this thread is indeed what most people here know as asset allocation, not high level strategy. I'm fairly certain that Audrey, having been retired for longer than most of us have been on this forum (maybe for longer than this board has existed), knows her asset allocation (aka "High Level Strategy"). Perhaps you could cool your jets.

 

[ls99]

Hmmm, lemme see, the stock pages pinned to a dart board, blindfolded, throw four darts, then see where they land.

 

[Bryan Barnfellow]

Motley: some advice:

It's usually useful for new members to introduce themselves, read the stickys, and do some searching of the forum before asking questions that might have reams of information already in the message board. Also, prickly pears don't tend to do well here.

With respect to your question. I think we need more information. Asset allocation strategies don't exist in a vacuum. What is your risk tolerance, for example, and when do you expect to retire? What are your investment goals? Like that.

-BB

 

[Dtail]

So you don't know your own strategy? Yikes.

Picking on the wrong member. Audreyh1 is one of the most knowledgeable members on the board and has been retired since 1999. I think she understands asset allocation.

 

[foxfirev5]

Picking on the wrong member. Audreyh1 is one of the most knowledgeable members on the board and has been retired since 1999. I think she understands asset allocation.

My thoughts exactly.

 

[monte1022]

You are new here...right?

My very high level strategy is to stay healthy, alive and be retired. Everything else is small stuff.

My strategy is to get to your strategy

 

[Souschef]

You are new here...right?

My very high level strategy is to stay healthy, alive and be retired. Everything else is small stuff.

+100

 

[rodi]

My strategy - Don't Panic.
(Came in handy in March and last week.)

That is really the strategy for investing - don't sell out of fear, just rebalance periodically no matter what the market does.

Now rebalancing brings us to asset allocation - that's what I rebalance to. I try to keep about 60% total stock (most large cap US, but some in int'l and some in small cap.) and 40% fixed - which in my case is bonds, and some cash (cds).

Welcome to the forum.

 

[MRG]

I'm confused; are we talking about asset allocation or strategies about life or something else?

 

[target2019]

Our High-Level Strategy is to stay on the high road.

Our Asset Allocation is 50/50. Probably drifting to 45/45/10(cash).

 

[target2019]

I don't mean specific stocks or funds...for example for me I'm about:

40% large cap funds
40% small/mid cap
10% specialty
10% bonds

I've been aggressive and so had little in bonds actually and trying to make up ground as I'm 50something. But I've never been a bond fan and even now second-guessing that.

Around here that is called asset allocation (AA). There are many ways to get from 90% stock to your target allocation for retirement.

Some people are saying you can drift down by 1% each year or some other percentage to get to your target.

What's your target asset allocation?

 

[target2019]

So you don't know your own strategy? Yikes.

motley,
You may want to note that some have a lot of depth to their game (not me). Take a gander at members' post totals under their name. Lots to learn.

 

[Major Tom]

Most people here call that asset allocation.

As audreyh1 said, what you described was an asset allocation so, even though you are talking about a "high level strategy" it is reasonable for us to assume that you are actually asking a question about what most call an asset allocation (often abbreviated to AA here). If that's what you are wondering, I don't break it down in terms of market capitalization, as you do. My investment portfolio consists of -

~57% Vanguard Total Stock Market Index Fund
~6% Vanguard Total International Stock Index Fund
~35% Vanguard Total Bond Market Index Fund
~2% Cash

I used to have more in the international fund, but am slowly working on reducing that. No particular reason, other than I like to keep things simple.

If that's not what you mean by high-level strategy, then I have the dividends in my taxable accounts set to automatically transfer to my savings account. At the end of each year, I sell a small amount of funds to replenish the cash reserve. That's about it. I stopped work almost 12 years ago, and have been withdrawing from the portfolio for very nearly 10 years. Things have been working so far, fingers crossed. Hope that helps.

 

[HI Bill]

63% US Large Cap ETFs
25% US Mid Cap Single Stock (ESOP Stock, can't sell until I hit 62)
4% International ETF
6% Bond Fund (US, ETF)
2% Money Market, Cash.

Next month, due to a property sale, the bond fund holding will be closer to 15%.

 

[Out-to-Lunch]

I realize the "AA" vs. "high-level strategy" terms has been, ummm, clarified for the OP, and s/he wisely has not contested same.

However, I thought this little tidbit was funny: This thread made me pull up my IPS (Investment Policy Statement, à la Bogleheads). I listed some very fundamental policies under "Strategy," but I have my time-dependent AA target listed under "Tactics."

 

[Scrapr]

my over riding strategy? Stay solvent for longer than the market is irrational.