Do you have a strategy for 2025?

[sengsational]

I think a strategy is something one sets for, well, forever, or at least long run. I suppose one could have market timing tactics for any given year, but that’s not me. I intentionally built a very diverse portfolio and put most of it under Vanguard Advisors AUM, precisely so that I could/would then do nothing in times like these.

Yes, Forever strategies don't need to change. My strategy for 2025 is the same: rebalance to the same asset allocation targets that I've had for years. I do my own instead of using an advisor, but probably a similar result. Certainly no emotion or media driven actions. But like you, my AA is well diversified, so always something to complain about, but also robust and can benefit from rebalancing.

 

[GravitySucks]

Going to stick to my plan*.

Two bonds maturing this month were going to be used to beef up year 6 on my bond ladder now half will stay in a MM account in case I need it for the second half of the year. Oh well - 13 years and I’ve only had to sell bonds to fund life for 3 quarters so far. Can’t complain.

*Except I’m going to spend more than planned. Been living too frugal.

 

[MarieIG]

Do you keep emergency funds and dry powder separate? It seems like the time when you most need both is the same. How do you decide when to hold on to cash to cover emergencies, and when to invest it?

I keep emergency funds separate. They are for emergencies and never invested (i.e. they sit in a money market or bank account for quick access).

 

[Montecfo]

That's fine, but how do you tax loss harvest in your taxable account then?
I'm setting up to do so, about $3-4k at the present lows. But markets were up sharply Friday so I'm waiting to see how next week goes now.

My TLH strategy has me selling recently purchased lots from three or four ETFs and then immediately reinvesting proceeds into a completely new ETF.
If markets continue to decline, I can sell all of the completely new ETF even before 30 days have elapsed and buy ANOTHER completely different ETF.
This all takes a bit of planning and paying attention...

I usually do not TLH this early in the year. These stocks often rally and I expect we will have favorable tax legislation later in the year. If I had a very similar alternative security I might change my mind. But most of my holdings are individual stocks and bonds.

But easier to find comparables with ETFs per your strategy.

As much as I like tax losses, the area less desirable than smaller tax losses and way behind gains in desirability.

 

[Montecfo]

I do not hold cash designated for emergencies. If I had something truly catastrophic I could tap funds awaiting investment, sell something, credit card, margin loan or untapped HELOC.

 

[tfudtuckerpucker]

This is my strategy for 2025.

 

[doneat54]

We signed a contract to build a new house last November (Post election) and were already very conservatively set up with all funds for the new build fully market protected. Recognizing the impending shitstorm, we moved to around a 30/70 AA in the remaining portfolio and will ride it out with that. We are both retired and in our mid 60s.

 

[KiwiFI]

Sounds very reasonable. Thanks for sharing. I mentioned PMs because of negative correlation, but definitely not for everyone. Much more cumbersome to trade physical metals than stocks/bonds/TIPS, etc.

PMs are having their moment in the spotlight. Down under it isn't cumbersome at all. You can take possession of physical or just buy on account for storage at a reputable bullion dealer much like you would an equity. Failing that, gold-backed ETFs are bought just like anything else in reality.

Putting aside trade and geo-political tensions, the spot price of gold is roaring higher in part due to the record inflows into the ETFs. The US alone has seen almost 7 billion in inflows for February. The highest month since July 2020.

As an investor, the best news in all of this is that most people and the main stream media don't care.

While this is the case you want to be backing up the truck!

 

[Koolau]

PMs are having their moment in the spotlight. Down under it isn't cumbersome at all. You can take possession of physical or just buy on account for storage at a reputable bullion dealer much like you would an equity. Failing that, gold-backed ETFs are bought just like anything else in reality.

Putting aside trade and geo-political tensions, the spot price of gold is roaring higher in part due to the record inflows into the ETFs. The US alone has seen almost 7 billion in inflows for February. The highest month since July 2020.

As an investor, the best news in all of this is that most people and the main stream media don't care.

While this is the case you want to be backing up the truck!

Already backed up the truck (well, hand truck.)

 

[KiwiFI]

Already backed up the truck (well, hand truck.)

Nice !