I would suggest this may be an indication that your current stock asset allocation is too high.midareff wrote:I'm 5 years into retirement and have no incoming new money. I would need to see a change in excess of 5% of my target AA portfolio wise before going for that second cup of coffee, and then I would still think about it some more. Low hanging fruit is not always what it seems and while it will always nice to have more there is a point of differentiation between having enough and taking additional risk to see what comes next.
Just a general comment (for anyone), but I think sometimes people underappreciate how risky typical portfolios are (say the venerable 60/40), because rebalancing rules will call for you to buy more stocks when stocks are dropping. In other words, if you're not willing to buy repeatidly during the drop, you might have too high an allocation to begin with. The sweet spot allocation, is being willing to buy more when prices drop, and to sell and profit-take when prices rise.
I would also consider either an all-in-one in this scenario, or a managed portfolio (say, like Betterment). Someone needs to be willing to rebalance when your policy rules call for it.
Now if you have an annual rebalacing policy rule, then fine, ignore the day-to-day movements. Your IPS rules allow you to. But I think threshold rules are better (per Kitces article).