atmsmshr
Full time employment: Posting here.
This forum educated me on Sequence of Returns Risk. I am no expert, but the discussions and linked articles / books saved me from major mistakes of my FA (aka myself). While working, spent a LOT of Saturday mornings reading threads here and at Bogleheads - and going back to 2007-2009 threads to read the pain of the last crash.
Up to 2 years ago, I was 100% equities while working into my late 50's. Clearly not sustainable (actually in hindsight it was stupid), and just plain lucky to ride the bull. Random Walk down Wallstreet.
My strategy became early retiree conservative and a rising equity glidepath ala Michael Kitces. Some tweaks like MM funds while Fed was raising interest rates, and switching to intermediate bonds when they stopped. Going to FUAMX intermediate Treasuries in February just because I did not know what to do with that part of the portfolio and benefited from dumb luck on that bond fund this past six weeks. The forum taught me about rolling to an IRA and benefits of NUA - a huge benefit for me in LTCG earlier this year when raising cash cushion. Looks like executing LTCG any further is a few years off.
Now at the crossroads of indecision with the crash in progress. Just stand there and do nothing until the bitter end? Probably not since I am optimistic about long term American economic health. Holding FUAMX now looks safe because there are no corporate bonds in that fund - the downgrades and bankruptcies will start soon and challenge other bond funds. At a minimum, rebalance back to the planned 40/60 position this summer is a no brainer. However, I may go to the planned 60/40 position of the glide path much sooner - like this year. Additionally, I may cash out the pension instead of annuitizing. If that is the case, then I will throw that money into the 60/40 equation as well - and consider a private annuity later. I just feel like annuities are going to suck wind for quite awhile, and then inflation will bite hard 10 years down the road. May have to decide the pension cash out soon - although the pension was overfunded in January, that may not be the case now and redemptions could be limited.
For the moment - I am a deer in the headlights, hoping to not get run over.
Up to 2 years ago, I was 100% equities while working into my late 50's. Clearly not sustainable (actually in hindsight it was stupid), and just plain lucky to ride the bull. Random Walk down Wallstreet.
My strategy became early retiree conservative and a rising equity glidepath ala Michael Kitces. Some tweaks like MM funds while Fed was raising interest rates, and switching to intermediate bonds when they stopped. Going to FUAMX intermediate Treasuries in February just because I did not know what to do with that part of the portfolio and benefited from dumb luck on that bond fund this past six weeks. The forum taught me about rolling to an IRA and benefits of NUA - a huge benefit for me in LTCG earlier this year when raising cash cushion. Looks like executing LTCG any further is a few years off.
Now at the crossroads of indecision with the crash in progress. Just stand there and do nothing until the bitter end? Probably not since I am optimistic about long term American economic health. Holding FUAMX now looks safe because there are no corporate bonds in that fund - the downgrades and bankruptcies will start soon and challenge other bond funds. At a minimum, rebalance back to the planned 40/60 position this summer is a no brainer. However, I may go to the planned 60/40 position of the glide path much sooner - like this year. Additionally, I may cash out the pension instead of annuitizing. If that is the case, then I will throw that money into the 60/40 equation as well - and consider a private annuity later. I just feel like annuities are going to suck wind for quite awhile, and then inflation will bite hard 10 years down the road. May have to decide the pension cash out soon - although the pension was overfunded in January, that may not be the case now and redemptions could be limited.
For the moment - I am a deer in the headlights, hoping to not get run over.
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