Shall I just leave my investment alone?

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Topic Author
WhiteMaxima
Posts: 2260
Joined: Thu May 19, 2016 5:04 pm

Shall I just leave my investment alone?

Post by WhiteMaxima »

Currently I am 50, married

AA 50% US 40% Intl 10% Bond and Cash. 30K company pension when I am 65

Max pre-tax, max aft-tax (will do mega Roth conversion at year end)

Saving rate 30%

Auto rebalance AA every month

My plan is to ignore all noise and leave my investment alone until I need it.
Jack FFR1846
Posts: 13058
Joined: Tue Dec 31, 2013 7:05 am
Location: 26 miles, 385 yards west of Copley Square

Re: Shall I just leave my investment alone?

Post by Jack FFR1846 »

At 90/10, you're wicked aggressive! If that's what you want, then stick with it and ignore all the noise. It will have more ups and downs than a more conservative AA but if you've got lots of years ahead of you, it'll likely outperform a more conservative approach.
Bogle: Smart Beta is stupid
bloom2708
Posts: 8361
Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: Shall I just leave my investment alone?

Post by bloom2708 »

90/10 is aggressive.

If you have $500k are you ok losing $200 to $250k? Doesn't seem too bad.

If you have $3,00,000 are you ok losing $1,000,000 or $1,300,000? Much harder to swallow even though the percentage losses are similar.

At 50, your window to recover is shortening. You may want to but be unable to work for 15 more years.

Take as much risk as you have to. If you can accomplish your goals at 60/40 or 70/30, no need to be at 90/10.
"We are here to provoke thoughtfulness, not agree with you." Unknown Boglehead
aristotelian
Posts: 8585
Joined: Wed Jan 11, 2017 8:05 pm

Re: Shall I just leave my investment alone?

Post by aristotelian »

How much income are you looking to generate over and above your pension and SS? I agree, 90% stock appears aggressive, but if your pension is in effect your bond allocation then that can be justified.
Topic Author
WhiteMaxima
Posts: 2260
Joined: Thu May 19, 2016 5:04 pm

Re: Shall I just leave my investment alone?

Post by WhiteMaxima »

My plan is retire at 60 and move to low cost place and start to rollover pre-tax to Roth IRA (down market I roll more) until 70 1/2. I might keep my 90/10 AA forever, establish my own foundation and leave the remaining into and leave some to my kids.
coupleofcents
Posts: 265
Joined: Wed May 24, 2017 7:55 am

Re: Shall I just leave my investment alone?

Post by coupleofcents »

You sound like a true Boglehead to me! Set it and forget for 15 years.
Avo
Posts: 1099
Joined: Wed Jun 11, 2008 2:21 am
Location: California

Re: Shall I just leave my investment alone?

Post by Avo »

If you have enough to establish your own foundation, then you have high ability and also (according to what you write) high willingness to take risk, coupled with a low need to take risk. So, basically, you can have any AA you want, and it will be fine.
benign_user
Posts: 29
Joined: Fri Jul 14, 2017 10:50 am

Re: Shall I just leave my investment alone?

Post by benign_user »

I'm a 70/30 (stock/bond) investor. How much percentage loss should I be willing to tolerate to have this allocation?
CoAndy
Posts: 653
Joined: Thu Jun 06, 2013 4:45 pm

Re: Shall I just leave my investment alone?

Post by CoAndy »

With the way the market has gone the last several years, I would not be all that comfortable with that allocation. At the very least, I would change my future contributions to 70/30.
Topic Author
WhiteMaxima
Posts: 2260
Joined: Thu May 19, 2016 5:04 pm

Re: Shall I just leave my investment alone?

Post by WhiteMaxima »

What if you have decade of investment horizon, do you still worry about market crush tomorrow?
WildBill
Posts: 681
Joined: Wed Jun 29, 2016 10:47 pm
Location: San Antonio, Texas

Re: Shall I just leave my investment alone?

Post by WildBill »

Howdy

I would dial the AA down a bit personally, but if you are happy with it go to the beach and worry about something else.

Lay in some good whiskey to help smooth the inevitable crunch. In moderate doses only, of course.

Good luck

W B
"Through chances various, through all vicissitudes, we make our way." Virgil, The Aeneid
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