should I sell my VBTLX

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should I sell my VBTLX

Post by Tenesmus83 » Sat Mar 14, 2020 10:07 am

Currently in 80/20 asset allocation with 30 yr time horizon to retirement. Doesn't make sense to hold bond fund when asset value
just goes down during a recession. I wanted to just sell everything in VBTLX and hold cash and/or DCA into VTSAX as market declines
Long term, it seems like a better strategy given my investment time frame. What do you guys think

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Re: should I sell my VBTLX

Post by Explorer » Sat Mar 14, 2020 10:09 am

You sell the thing that is bringing stability to your portfolio? It does not compute...

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Re: should I sell my VBTLX

Post by dukeblue219 » Sat Mar 14, 2020 10:16 am

I highly doubt cash will outperform bonds for the next 30 years. I think many Boglers are learning this month that bonds won't offset your losses in a broad collapse. They'll balance the portfolio and add stability but they aren't going to soar 9% on days equities are down 9%. Bonds losing 1% on such a historic day is still valuable.

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Re: should I sell my VBTLX

Post by 1789 » Sat Mar 14, 2020 11:02 am

I would just decide on your AA and then stick to it per your rebalancing rules. If you are asking me, i would skip bonds and hold cash and VTSAX until around 40 years old and start adding bonds after that.
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)

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