I am still in the accumulation mode looking at about 4 yrs from FIRE. My AA has been about 83/17 (53% Large Cap/20% Small Cap/10% International/15% Short/Intermediate Bond/2% Cash). I am not sure what I will do when I FIRE, but can see the arguments for both going more conservative and also staying relatively aggressive. I learned allot about myself in the last market debacle as for the most part, I rode it out and was rewarded as the market came back. While one part of my logic says stay the course and follow my plan, another part of me says...
- The US seems to be the safer place to be and while international stocks are down (one argument is a buying opportunity), should I push some of my international portion back into US (of course you could argue US stocks are more fully priced)?
- Interest rate will most likely only increase 2 - 4 more times in 2016 so why the hell wouldn't I sell my bonds and stay in cash?
You can argue this is all a little market timing approach, but I feel like I have to have these little discussions/arguments with myself before I settle on a final strategy.
I would be curious to hear what both the pre-FIREs and post FIREs are planning to do different in 2016, if anything, and how you reconcile the 2 logical sides of your brain as you analyze the markets going forward?
- The US seems to be the safer place to be and while international stocks are down (one argument is a buying opportunity), should I push some of my international portion back into US (of course you could argue US stocks are more fully priced)?
- Interest rate will most likely only increase 2 - 4 more times in 2016 so why the hell wouldn't I sell my bonds and stay in cash?
You can argue this is all a little market timing approach, but I feel like I have to have these little discussions/arguments with myself before I settle on a final strategy.
I would be curious to hear what both the pre-FIREs and post FIREs are planning to do different in 2016, if anything, and how you reconcile the 2 logical sides of your brain as you analyze the markets going forward?