Jump to content

Changing Retirement Allocation


ericd1
 Share

Recommended Posts

Set a systematic plan and stick too it.

 

That could be moving a portion each month regardless of what markets do or starting off with a lump sum (10-15%) and reinvesting all cash flows and deposits on the fixed income side until you accomplish the goal.

 

Point is, pick an approach and stick with it as opposed to trying to tactically time it.

Link to comment
Share on other sites

Point is, pick an approach and stick with it as opposed to trying to tactically time it.

 

But this is a value forum - shouldn't he be valuation timing it? Shifting away from any equities relative to their expected return?

 

Are your equities indexed or in individual stocks, Eric?

 

If the former, I'd make the switch today (believing the market overvalued and so the expected return not enough greater than bonds to justify the risk).

 

If the latter, you might shift away first those with the least expected return.

Link to comment
Share on other sites

I’ve been playing around with some numbers/simulations on this lately and the type of “barbell” strategy discussed here is growing on me. Not 75/25 obviously but it may be worth considering.

 

Looks interesting, however, a little complex for me.  Thanks

Link to comment
Share on other sites

Set a systematic plan and stick too it.

 

That could be moving a portion each month regardless of what markets do or starting off with a lump sum (10-15%) and reinvesting all cash flows and deposits on the fixed income side until you accomplish the goal.

 

Point is, pick an approach and stick with it as opposed to trying to tactically time it.

 

Agree - Has to be fixed plan to accomplish.

Link to comment
Share on other sites

Point is, pick an approach and stick with it as opposed to trying to tactically time it.

But this is a value forum - shouldn't he be valuation timing it? Shifting away from any equities relative to their expected return?

Are your equities indexed or in individual stocks, Eric?

If the former, I'd make the switch today (believing the market overvalued and so the expected return not enough greater than bonds to justify the risk).

If the latter, you might shift away first those with the least expected return.

 

There's a mix of indexed and individual positions.  80% IRA which I can rollover, 20% taxable (will pay CG tax)

 

There's lots of ideas and strategies on accumulating retirement funds and suggestions for retirement allocations,, but I'm not finding much on how to reset portfolio for retirement and withdrawl strategies.   

 

 

%

Link to comment
Share on other sites

What's the reason to overcomplicate things?

If you decided you need 75%/25%, just move 25% to bonds.

If you want to do it gradually, just make a plan and do it gradually.

 

I think you've nailed it.  After 50 years of equities I find myself anchored.  Thanks!

Link to comment
Share on other sites

Point is, pick an approach and stick with it as opposed to trying to tactically time it.

 

But this is a value forum - shouldn't he be valuation timing it? Shifting away from any equities relative to their expected return?

 

Are your equities indexed or in individual stocks, Eric?

 

If the former, I'd make the switch today (believing the market overvalued and so the expected return not enough greater than bonds to justify the risk).

 

If the latter, you might shift away first those with the least expected return.

 

Yes, but we're discussing asset allocation and not tactical bets on the market. Regardless of market values, if you can't tolerate being 100% equities, you can't tolerate it and market values, or lack there of, shouldn't be what determines that decision.

 

The author has an end state in mind. He just needs to pick a time frame, pick a Target to start with, and systematically move overtime regardless of what markets are doing. He can make tactical allocations within the asset classes, but I wouldn't let it dramatically impact the allocation itself for something as important as the money you're interesting to live off of.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...