Do you have a strategy for 2025?

[frayne]

I rebalanced mid December and as others have mentioned, doing nothing is probably the best option. Once the dust settles and it will, I may actually do some buying.

 

[VanWinkle]

Just checked this morning, down .71% for the year with a 50/50 stock/bond mix. I did re-balance in January into a foreign stock fund and that has helped a little along with BND being up this year. I have been 50/50 for almost 9 years and it works great for me. It makes it much easier to just stand there when things get crazy.

 

[marko]

I sold a bunch of stock last year knowing the economy would get destroyed this year. I managed to sell another chunk last month before the correction got going. Just hanging in now.

How did you know that? Recent events not withstanding, we're only 70 days into the year. A lot can change IMO. Maybe we can revisit this in December? Those that unemotionally buy this dip could be richly rewarded.

IIRC, we took quite a tumble in March of '18, '20, '22, '23 as well as April of 2024, yet we ended the year nicely. Seems every spring we have a dip...March Madness?

 

[FREE866]

How did you know that? Recent events not withstanding, we're only 70 days into the year. A lot can change IMO. Maybe we can revisit this in December?

Those that buy this dip could be richly rewarded.

This !

and didn't realize the economy is "destroyed" lol

 

[SnowballCamper]

Waiting for the AA to get way out of whack (only like 2% off right now) then might increase the stock allocation when I rebalance. I think it's going to be volatile for quite a while before the dust settles with the on, off,on,off,on tariff policy.

 

[marko]

This !

and didn't realize the economy is "destroyed" lol

+1. Always best to remain unemotional when it comes to money, I've learned.

 

[Earl E Retyre]

I also sold a small bit in December and some more at the beginning of this year. I then invested that in 4.5%, 7 year treasuries. I had never bought treasuries, nor a 7 year investment prior. I have a sizable chunk of CDs coming available in April. I was planning on investing that chunk at 4.5%+ in CDs or treasuries but, for now, that ship has sailed. If the S&P drops 20% below it’s high, I will start dollar cost averaging in to buying more S&P. If it drops 30% below its high I will put it all in. Otherwise, I am hoping I can at least get 4% CDs and will start laddering CDs. We’ll see what the next month brings. Either way I am happy. It really doesn’t affect the long term that much.

 

[Dawg52]

My strategy is to enjoy everyday and let my AA ride. Now if the talking heads start hinting a depression is coming you may see some of these….

 

[RunningBum]

You're scaring me with that "unless things look unlikely to recover".

The effect on the stock market and investing in general may return to the norm, but things are very different this time, and the results may be different. I'm not going to elaborate further, to avoid Porky from showing up here, but it should be clear.

 

[Car-Guy]

I'm keeping cruise control on my fixed income strategy. The income generated from that and Social Security is more than I need annually. Investment management stress is down 95% since I started with a 100% fixed income strategy a few years ago.

 

[sheehs1]

I'm keeping cruise control on my fixed income strategy. The income generated from that and Social Security is more than I need annually. Investment management stress is down 95% since I started with a 100% fixed income strategy a few years ago.

I did the same Car-Guy for several years now. Along with Social Security and investment income enough to live on, I don't have to live on it (yet!) as I have another source of passive K1 income as well. So I let the investment income continue to add up along with dollars not spent from K1 income to combat inflation to a degree. To your point, I found investment stress is almost nil and I am happier this way, not watching every twist and turn of the market and after having been thru all the downturns since the tech crash around 2001/2002. I still watch some but don't stress over it.
I started to be concerned that I would not have time on my side to weather major downturns, whenever they happen. Each to his own!

 

[aja8888]

I'm keeping cruise control on my fixed income strategy. The income generated from that and Social Security is more than I need annually. Investment management stress is down 95% since I started with a 100% fixed income strategy a few years ago.

Me too! I have a few preferreds and some pipeline MLPs along with an ETF so the toe is still in the water a bit, but for the most part, I am heavy fixed income.

 

[imjustawarrior]

As disturbing as it may or may not be to see the market drop, I expect that it has little impact on the financial well being of most the people on this forum. If one is close to the edge, then this could be scary. If one planned well, we are still well within what has happened historically and that is modeled by tools such as firecalc. If firecalc said you were fine to retire, then you are still fine in retirement.

 

[ls99]

Lawn cahair and popcorn, watching the current hysteria. It will go up. Guaranteed. When? Any day now

 

[tenant13]

Can I borrow your crystal ball? You should start your own investment letter......

Why would you need a crystal ball when you have someone with the power to crash the economy telling you that it is indeed the plan?

One more time: I don’t judge this attempt to ostensibly reshore US manufacturing; I think the sentiment is admirable. But I feel that treating current situation as yet another unexpected black swan event temporarily shaking up markets, while its anything but, would be somewhat short sighted.

I currently sit on enough cash to last me 5 years + (I wish it was 8 - I will be 70 then and my SS will kick in). I also have properties in EU and Mexico - and permanent residencies/passports. I think I want to sell more equities and buy another property either in Asia or South America. I can consequently downsize my US presence and leave for greener, cheaper pastures. I probably should have mentioned bitcoin but we’re not allowed to talk it about here.

 

[gayl]

I don't know if this is the right thread to ask but ~~~

How does RMD work? Is it the same amount every year? Who tells IRS what it is? I'm trying to position so I don't have to sell anything to withdraw RMD until 2031 / 2032. I already went from 100% total stock market index last year to 82% SCHB, 15% 7 yr CD ladder (2025 - 2031), & 3% tax free bonds in February. I'm wondering if I should shift another 2% to tax free bonds or if that's like closing the barn door after the horse has escaped

FWIW my pension covers living expenses, my SSA covers travel expenses

 

[Looking4Ward]

I just watch it go down, knowing it will go up. Then I watch it go up, knowing it will go down.

And I try to avoid dwelling on the Shoulda Coulda Woulda's.........

 

[marko]

Why would you need a crystal ball when you have someone with the power to crash the economy telling you that it is indeed the plan?

One more time: I don’t judge this attempt to ostensibly reshore US manufacturing; I think the sentiment is admirable. But I feel that treating current situation as yet another unexpected black swan event temporarily shaking up markets, while its anything but, would be somewhat short sighted.

I currently sit on enough cash to last me 5 years + (I wish it was 8 - I will be 70 then and my SS will kick in). I also have properties in EU and Mexico - and permanent residencies/passports. I think I want to sell more equities and buy another property either in Asia or South America. I can consequently downsize my US presence and leave for greener, cheaper pastures. I probably should have mentioned bitcoin but we’re not allowed to talk it about here.

I think the general consensus here is that "this too shall pass". Most of us have seen very similar hot button end-of-the-world situations only to have them fizzle into nothing.

Dow down 3000? Been there, done that, made an extra million from it. Problem/Opportunity.

 

[marko]

I don't know if this is the right thread to ask but ~~~

How does RMD work? Is it the same amount every year? Who tells IRS what it is? I'm trying to position so I don't have to sell anything to withdraw RMD until 2031 / 2032. I already went from 100% total stock market index last year to 82% SCHB, 15% 7 yr CD ladder (2025 - 2031), & 3% tax free bonds in February. I'm wondering if I should shift another 2% to tax free bonds or if that's like closing the barn door after the horse has escaped

FWIW my pension covers living expenses, my SSA covers travel expenses

Right church, wrong pew. Use the search button, top right and enter RMD.

 

[copyright1997reloaded]

Why would you need a crystal ball when you have someone with the power to crash the economy telling you that it is indeed the plan?

One more time: I don’t judge this attempt to ostensibly reshore US manufacturing; I think the sentiment is admirable. But I feel that treating current situation as yet another unexpected black swan event temporarily shaking up markets, while its anything but, would be somewhat short sighted.

I currently sit on enough cash to last me 5 years + (I wish it was 8 - I will be 70 then and my SS will kick in). I also have properties in EU and Mexico - and permanent residencies/passports. I think I want to sell more equities and buy another property either in Asia or South America. I can consequently downsize my US presence and leave for greener, cheaper pastures. I probably should have mentioned bitcoin but we’re not allowed to talk it about here.

Is there anything keeping you from executing on your plan/hunch? All it takes is a few keystrokes and you can sell those worthless equities and have that extra three years of cash.

 

[audreyh1]

Right church, wrong pew. Use the search button, top right and enter RMD.

They started a new thread with that question. Answers are there.

 

[Golden Mean]

disneysteve said:
I sold a bunch of stock last year knowing the economy would get destroyed this year. I managed to sell another chunk last month before the correction got going. Just hanging in now.

Can I borrow your crystal ball? You should start your own investment letter......

Not sure if your response is tongue-in-cheek but...
I think selling stock solely due to price changes (or guessing about future prices changes) is like selling an asset that's generating income because its resale value might go down later.

You can always find someone who guessed about an event and then can claim they "knew it". After the fact.

It's certainly not investing IMHO.

 

[Koolau]

I got down to 50% equities at the end of last year. Just going to ride it out.

Heh, heh, I'm starting to feel smart - what with everyone bailing on equities. I haven't - but I've been hovering in the 35% area for several years. Does that count?

 

[audreyh1]

Heh, heh, I'm starting to feel smart - what with everyone bailing on equities. I haven't - but I've been hovering in the 35% area for several years. Does that count?

Sure! Especially if you buy to bring it back up to 35% after a very large sell off.

 

[bada bing]

No crystal ball here. I did my due diligence first week of January according to my plan and rebalanced allocation and reloaded the trailing year of my 3 year treasury ladder for spending. 3 years out from the spending ladder would put me at 69 years old, a year short of maximum delayed SS and pension filing. So this downturn is quite a bit easier than anything in the past for me. Next January is the final planned withdrawal from savings for routine spending, ever.

One thing I think I've notice is there seems to be a range of engagement with finances here. I've found I naturally pay less attention to the noise now than I did only a few years ago. Would you say that your portfolio performance is more or less centered in your attention now than it was before retirement? The difference for me is pretty dramatic.