I did something similar last month. But for me, 10 years of expenses dicated a 60/40 split. I am looking to retire in 2026 but work has been a real pain lately so I wanted everything in place just in case I need to exit earier than planned. Nothing like saying after a bad day - that's it! I'm going to quit! and then the market starts to tank when you are 100% stocks. And - I'm not even at 25x expenses. Pretty close after the nice rally, and hoping to hit 25x by 2026.I've been 100% stocks as well but changed to 5% tbills 2 years ago as I will retire soon. This is all before I found bogleheads. Does it really matter? Being 100% stocks for so long, I think you would be way ahead of the game like me. Didn't lose money with tbills but I still loss the higher returns I could have made with stocks.I have been 100% stocks my entire investing life with never even the slightest inclination to sell low during bear markets. I viewed any downturn in the market as a chance to buy at a better price. Dec 2018, Covid, All of 2022 into 2023 - no problem, zero desire to sell.
Thinking I should get more conservative near retirement, I changed my allocation to 85/15 stock/bond. The only thing my bond funds have done since the conversion is decrease in value. I thought the correlation between stocks and bonds was low, but my bond funds seem to be correlating nearly perfectly with small cap value. And unlike stocks, I have no desire to "buy low" on bonds as there is not nearly the upside.
I am totally regretting changing my asset allocation. I should have changed to a Money Market with a guaranteed 4.5% right now or stuck with my 100% stock allocation.
I was able to stomach the ups and downs of stocks but apparently not of bonds. Should I cut my losses and switch to a money market or back to 100% stocks? I currently see no benefit to bonds in my portfolio.
I do think in retirement, need to have something other than stocks, learning from Bogleheads, I think I'll most likely change to 2% tbill, 2% bond fund in my 401K, probably buy iBonds this month instead of putting more money into stocks. This gives me over 10x expenses in other than stock so I should be fine in retirement. Don't think it matters much whether you stick with bonds or do a money market. You are mostly going to depend on how the stock market does.
I have a very mixed fixed income, with a lot in mygas and a cd that won't lose prinicpal. Overall I can fund living for 10 years without touching stocks in case of a crash, and once I get to soc security age, an 80/20 should provide 10 years in fixed income.
I'm loosely planning to allocate the max for a QLAC in my 70's, take in my 80s, and then can drift back to 100% stocks if the qlac and soc sec pay 100% of expenses.
You know, if the world survives and all. And me too!
Statistics: Posted by birdbard — Sat Dec 14, 2024 11:27 am