As an aspiring Boglehead I'm a little ashamed to admit I went 100% into cash and short term bond funds today. I retired 37 months ago and am three years into a five year pension payout. I've always maintained a pretty conservative 40/60 portfolio, but with my current nestegg a modest correction could still cost me six figures.
Right after I retired I took a $50k hit in the August 2011 correction, but I only had my 401k on the table then. My last irrational play was going to cash in Jan 2008 when I thought I sniffed trouble. I lucked out for once and got back in at the end of 2009. I kind of have the same feeling now.
Anyway we're already up YTD more than our annual living expenses, so I'm taking the poorly-reasoned luxury of sitting on the sidelines and observing for a few months. In the best case I get back in after a correction. In the worst case I've wasted some time during which my money could have been working for me.
Right after I retired I took a $50k hit in the August 2011 correction, but I only had my 401k on the table then. My last irrational play was going to cash in Jan 2008 when I thought I sniffed trouble. I lucked out for once and got back in at the end of 2009. I kind of have the same feeling now.
Anyway we're already up YTD more than our annual living expenses, so I'm taking the poorly-reasoned luxury of sitting on the sidelines and observing for a few months. In the best case I get back in after a correction. In the worst case I've wasted some time during which my money could have been working for me.