friar1610
Thinks s/he gets paid by the post
- Joined
- Jun 27, 2002
- Messages
- 1,638
This is somewhat related to a couple of the recent threads about when to take SS and how low the market might go.
I'm curious what other already retired folks who are getting by OK on a pension are doing with any other cash that might be coming in regularly (SS, PT job, whatever). Are any of you committing it to equities on a DCA basis?
In my case, my COLA'd pension pretty much covers living expenses except for the occasional expensive month. Most of my (early) SS and all of my wife's gets banked. Before things went South, I was 5% cash and 47.5% each equities and fixed income. Now I'm about 8% cash and down to 33% equities.
If/when the market recovers, I'll be back to where I was (dollar-wise) with respect to equities if I don't do any more investing. Since I wasn't hitting the nest egg anyway, it can be argued that I don't need to take any risk to grow it. OTOH, it seems to make sense to DCA into a broad index fund with some of the spare cash that comes in each month from SS. If/when the market recovers, I would then rebalance out of equities to get back to my original AA.
What are others doing in similar circumstances? Any comments/suggestions generally?
I'm curious what other already retired folks who are getting by OK on a pension are doing with any other cash that might be coming in regularly (SS, PT job, whatever). Are any of you committing it to equities on a DCA basis?
In my case, my COLA'd pension pretty much covers living expenses except for the occasional expensive month. Most of my (early) SS and all of my wife's gets banked. Before things went South, I was 5% cash and 47.5% each equities and fixed income. Now I'm about 8% cash and down to 33% equities.
If/when the market recovers, I'll be back to where I was (dollar-wise) with respect to equities if I don't do any more investing. Since I wasn't hitting the nest egg anyway, it can be argued that I don't need to take any risk to grow it. OTOH, it seems to make sense to DCA into a broad index fund with some of the spare cash that comes in each month from SS. If/when the market recovers, I would then rebalance out of equities to get back to my original AA.
What are others doing in similar circumstances? Any comments/suggestions generally?