How many of you are almost exclusively in "safe" investments...where you can't lose value (other than inflation adjusted value)?

[Dtail]

As I approach 70yo (next year) I am getting less enamored with the plan of "riding out" market dumps.
Just gotta get through this one .....

65 myself and don't feel this way yet, but can see it as I get older.

 

[lem1955]

AA = 64.5/29.8/5.7. I will start SS in June. DW's SS will increase 25% on spousal. We have shares in a private Real Estate Investment. Between SS and the REI we have no need to touch investments. I will keep allocation the same and reinvest interest, dividends, etc.

 

[Sanstar]

A/A was 85/15, US equities and cash via CD’s. The cash covered 3 years of RMD’s. When the market recovers, I think I’ll aim for 3 years cash + 15% MM so when the next market sell off hits I’ll be ready to rebalance into more equities without touching money set aside for RMD’s.

 

[surprising]

With bonds selling off along with equities, for those of us with bond funds as our bond allocation that are selling off, it seems any asset allocation isn't going to do much in this environment. My 401k was at 70/30 before all this, now it's at 68/32 - not a huge change, and most likely heading back to 70/30 as bonds sell off. I am thinking of moving my bond allocation in 401k to cash/money market for now. Is it a good idea? I won't touch 401k for at least 8 years.

 

[Gallaher]

My brain tells me a zero equity position is high risk.
I’m 65/35 with the 35 split between bonds and cash.
Kind of crazy what the bond market has done I last couple years.
Makes me feel like the equities have been the stabilizing investment.

 

[Koolau]

Caveat: Referring to myself as smart money is a bold-faced lie.

And so - I do not spend my emergency funds on investments subject to much volatility (inflation risk excepted, i.e. short term treasuries / CDs).

I keep a cash cushion to cover mandatory expenses to avoid selling when I don't wish to do so.

My cash cushion is not dry powder.

I am not "backing up the truck" but rather buying in increments. Almost a dollar cost averaging approach.

I am currently concentrating more on funds than individual stocks, and with regard to individual stocks, looking for companies with more abilities to due to the propensity of my individual holdings to disappear when I have gambled on small, new, risky companies.

I would say you sound very smart, indeed!

 

[Koolau]

By the way, I haven't bought or sold anything financial. Starting to feel smart. (Nah, just lucky - which is much better than smart IMHO.)

 

[imjustawarrior]

By the way, I haven't bought or sold anything financial. Starting to feel smart. (Nah, just lucky - which is much better than smart IMHO.)

Same here, but I attribute it to my laziness. Good to be retired.

 

[yakers]

90+% in CD's and MM's... The rest is in cold hard cash.

Sounds good right now in a time of great volatility, is there a buy plan?

 

[Lorenzo]

Sounds good right now in a time of great volatility, is there a buy plan?

I think Car-Guy has won the game.

 

[TickTock]

As I approach 70yo (next year) I am getting less enamored with the plan of "riding out" market dumps.
Just gotta get through this one .....

If you have significant funds in tax-deferred accounts, you may want to consider a heavy allocation to 30-year TIPS. Depending on how much leaving a legacy is a priority.

I don't remember where I read this (paraphrasing): Don't assume the investor next to you is playing the same game you are.

Do what's right for your situation.

 

[Car-Guy]

Sounds good right now in a time of great volatility, is there a buy plan?

Just more CD's as they mature.

I think Car-Guy has won the game.

The older I get, the more confident I am that I have... And that's what's matters to me.

 

[Badger]

We are about 42% stock, 43% cash (CDs and MM and straight cash), 15% bonds. I have not bought or sold any stocks for the past 15 years. It would result in higher taxes so they are for inheritance. They also provide dividends that go into either more CDs or MM accounts.
We are in the backside of 75 so the cash will be able to provide for at least 25-30 more years even if SS and pensions disappeared. The house is paid, health is taken care of with Medicare and Tricare, and most things we would want are inexpensive.
If capital gains were not an issue I would sell more stock but I will let those that inherit them get the benefit of a higher basis instead of the government.

 

[Teacher Terry]

Thanks to the social security fairness act my SS went up 900/month so I’m no longer on a tight budget. Since I’m still consulting I am saving that money. At age 70 I don’t feel comfortable having it in anything but safe investments.

 

[OldShooter]

As I approach 70yo (next year) I am getting less enamored with the plan of "riding out" market dumps.
Just gotta get through this one .....

What is the alternative to riding out market dumps? Market timing?

 

[Lorenzo]

What is the alternative to riding out market dumps? Market timing?

Less volatile investments?

 

[pb4uski]

What is the alternative to riding out market dumps? Market timing?

Not being in the market to begin with. Many pension plans have no or little common stock investments. I recently received my pension plan's annual statement and no stocks at all.

 

[Time2]

At 70 yrs old, I don't have any bonds, a small amount in REITs, we have some HYMM and land. About 70/30, stocks/other.
I hope I'm in a situation where I'm investing for my kids, We just started SS, so our withdrawal rate will be under 1%. I'm not bothered by the market turmoil, I think the rearrangement needs to take place, and if it is successful, it will be good for my kids and good for the country.

 

[Fermion]

Not being in the market to begin with. Many pension plans have no or little common stock investments. I recently received my plans statement and no stocks at all.

How does a COLA'd pension plan keep up with inflation with no stock investments? I can understand public pensions as they can just stick their hand in my wallet if they can't meet payouts, but private plans?

 

[pb4uski]

Very few pension plans are COLAed, but they probably do it by higher funding/lower WR. A non public pension could increase sponsor contributions in a pinch. It is just another variation of "won the game" where it has turned out that many of us are so well funded and have such low WR that we don't need stocks.

 

[audreyh1]

Thanks to the social security fairness act my SS went up 900/month so I’m no longer on a tight budget. Since I’m still consulting I am saving that money. At age 70 I don’t feel comfortable having it in anything but safe investments.

Wow, that is quite a windfall! So do you get a year of that as backpay as well?

 

[Koolau]

Less volatile investments?

A fat mattress?

 

[Koolau]

Thanks to the social security fairness act my SS went up 900/month so I’m no longer on a tight budget. Since I’m still consulting I am saving that money. At age 70 I don’t feel comfortable having it in anything but safe investments.

Wow. A $900 raise. That would be nice. Congratulations.

 

[Teacher Terry]

Wow, that is quite a windfall! So do you get a year of that as backpay as well?

My back pay was based on my own account and not my spouse’s so it was significant. Then 2 weeks ago they called and said if I came in and signed a statement that I wanted my 6 months backpay on my ex’s I could get that too. I have an appointment to do that on Monday.

 

[Teacher Terry]

Very few pension plans are COLAed, but they probably do it by higher funding/lower WR. A non public pension could increase sponsor contributions in a pinch. It is just another variation of "won the game" where it has turned out that many of us are so well funded and have such low WR that we don't need stocks.

Luckily our state pension plan has cola’s and this year I get 4%. In 2027 I will max out at 5%.