What is your AA, given your age ? and this crisis ?

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Portfolio7
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Re: What is your AA, given your age ? and this crisis ?

Post by Portfolio7 »

Age 53. AA was 78/22. Now I suppose it's more like 74/26. I've almost always been an aggressive investor, and maintain a modestly variable AA. I have rules about getting more and less aggressive, and limits on how often that changes. I was near maximum aggressiveness when the Corvid-19 crisis hit. Fortunes of war. Besides retirement funds, I have some real estate and a business.

I have 4 years until my youngest graduates college; until then I'm a working stiff. I expect to be about 65-70/30-35 by age 57, and 60/40 by age 60. Retirement is possible by 57 with good fortune, otherwise likely by around age 61.

I've stayed the course by not doing anything different. I continue to DCA. Haven't bought or sold anything besides that. My activity window opens shortly, and will rebalance at that point assuming I've passed the rebalance band. I will limit the rebalance back to my prior AA, with the restriction that my fixed income investments don't drop below a certain level.
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Thesaints
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Re: What is your AA, given your age ? and this crisis ?

Post by Thesaints »

cos wrote: Mon Mar 16, 2020 10:10 pm 1. I'm 22 years old, and my AA is 165/135 stocks/bonds. I'm young with nothing to lose, and my portfolio performs similarly to the market on the downside while outperforming on the upside.
"Similarly" being the catch...
luckyducky99
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Re: What is your AA, given your age ? and this crisis ?

Post by luckyducky99 »

I'm early 40s, still working, 60/40.

Last year I decided I wanted to stop worrying about investments, realized I was basically FI, found this forum, and moved from 100/0 to 60/40 with the realization that if I wanted to, or needed to, or had no choice in the matter, I could stop working and be OK.
notsobright
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Re: What is your AA, given your age ? and this crisis ?

Post by notsobright »

25-35 was age in bonds - 10

at 36 i won the game and have been 50/50 since

I'm 40 now
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jjunk
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Re: What is your AA, given your age ? and this crisis ?

Post by jjunk »

I'm 47. 60/40 and plan to be for the remainder of life. I am effectively FI, especially true if I move to a cheaper COL area. I plan to work another 5yrs or so and then figure out what I want to do.
Rock Lobster
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Re: What is your AA, given your age ? and this crisis ?

Post by Rock Lobster »

35 years old with 85 stocks / 15 bonds and close to $30,000 invested.

I have over $250,000 in cash from a recent windfall and I don’t think it could have come at a better time.

I am not a market timer but am going to wait a bit for the bloodbath to dial down, and then I will buy somewhere between 50,000 to 75,000 of mostly FSKAX and some bonds to keep the ratio around 85:15 or maybe even 90:10.

I want the rest of my cash for home expenses and emergencies, as well as IRA contributions.
Thesaints
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Re: What is your AA, given your age ? and this crisis ?

Post by Thesaints »

Rock Lobster wrote: Mon Mar 16, 2020 11:35 pm I am not a market timer but am going to wait a bit for the bloodbath to dial down,
Let us know when that is, please !
gpburdell
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Re: What is your AA, given your age ? and this crisis ?

Post by gpburdell »

Age 44 - 75% stocks, 25% bonds/cash

My plan is to adjust allocation when I hit 2 comma club. I was almost there lol. Not sure what I'll switch it to as I don't have a formal IPS. Probably 70/30 or 65/35. When I retire, I'm planning to go 50/50.

I stay the course by chanting "be greedy when others are fearful" when I go to bed and when I wake up. I've been re-balancing when there is a new low of 10% or greater. Even though there was an 11% drop today; it was only 3% lower than last Thursday so I didn't do anything.
Visitor76
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Re: What is your AA, given your age ? and this crisis ?

Post by Visitor76 »

Age: 43

AA: 69% stocks 17% bonds 14% cash. Was 80% stocks 13% bonds and 7% cash.

Have adjusted to a more moderate allocation during the current crisis.

Wife and I have 65K in Emergency Fund.

Recently opened a VTSAX back in January. Since then it has been struggling. So I have halted contributions until the economy rebounds.

Question for those who are 15+ years out from retirement, has the current crisis affected your target dates for retirement?
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spdoublebass
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Re: What is your AA, given your age ? and this crisis ?

Post by spdoublebass »

confusedinvestor wrote: Sun Mar 15, 2020 11:45 pm Folks,

1. What is your AA (Stock:Bond), given your age? and why?

2. How do you glide your risk (stock percentage) as you age and/or approach your 'need' portfolio value ?

3. Given the current market and health crisis, how do you 'stay the course' on your AA ?

Love to get your numbers and inputs.

ps: I'm 45, AA 75:25 w Stocks 120 - Age with gliding 2% every year, until we reach AA 60:40 at age 52 and plan to keep in 60:40 until I retire at 57 and re-evaluate. Staying the course during this crisis with Rebal with 5% band every 6 months, if needed.
I love these threads and read them with great interest. The only issue I have with them is that income plays a major role and is never discussed.

I would like to know would you have your AA if you made $50K annually? $500K annually? I always wonder if someone has their AA because of their financial situation.

There seems to be some people who say stay between 25/75 and 75/25 no matter what.

Others say that if you have a a glide path, if you take the midpoint, you'd get about the same return. So if you are starting out 80/20 and gliding to 40/60 (evenly over X amount of years), then this would be the same as starting and ending at 60/40.

Another concept it basing it off your end portfolio. Say I want to retire with 2 million and have an AA of 50/50. My current portfolio is $500K. So my portfolio is 25% of where I want to be. 50% of that is 12.5%. So my AA for my $500K portfolio should be 87.5/12.5
The issue I have with this one is that it leaves room for error. Say I set a target retirement portfolio size that isn't attainable...What then?

1. As for me personally, I'm 90/10 at age 36 (wife 43). I will stay here until I turn 40. Then I plan on adding more bonds.

2.I'm undecided on how to glide, I do have an idea of what I want my final AA to be, but I do not know exactly what size portfolio I will have. I would like to be around 60/40 when I'm 60 and my wife 67. That seems comfortable. Also, if we are both healthy, we have jobs where we will always have income and work.

3.This hasn't changed anything. Any money we put in for retirement (20% of every dollar we make) I completely forget about. This is my first crisis and I'm surprised I'm not more worried. I think it's because I have an emergency fund and plan. I do wish I could invest more while it's down, but I think part of "staying the course" is not changing anything. I will invest the same way in good times and in bad.
I'm trying to think, but nothing happens
theorist
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Re: What is your AA, given your age ? and this crisis ?

Post by theorist »

Visitor76 wrote: Tue Mar 17, 2020 9:23 am
Question for those who are 15+ years out from retirement, has the current crisis affected your target dates for retirement?
No. How about yours?
DetroitRick
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Re: What is your AA, given your age ? and this crisis ?

Post by DetroitRick »

1. Target AA given is roughly 70/30 (equity and a small level of alternatives being 70%, fixed income 30%), we are 59 and 64. We have the willingness and capacity to weather the swings this allocation will cause, even in retirement (wife still works part-time, I do not). Have done it before, can do it again. This relates to our comfort in reducing spending as needed, very modest debt levels (but they are not zero), plus other income sources unlikely to dry up. Ideally, for us, I like to keep about 6 years of withdrawal needs in fixed income. I've been re-balancing to keep very close to this target throughout the last few years - so that is nearly where we were at market peak, way back in February.

2. Targets have been this way for a while, only up from 15%-20% bonds in my late 30's. Made that migration in my 50's.

3. Given current conditions, I'm not in a hurry to re-balance back yet, even though fixed income has swung from 30% to around 37% now. But I am putting small IRA contributions (wife's earned income) into equities this month, and doing a small amount of selective buying with the part of my portfolio that is stocks (from cash reserves and tax loss harvesting). I may deploy maturing individual US Treasuries into equities in coming months, but haven't yet decided - other than a few this month. From a purely financial perspective, I don't view the current crisis any differently than all the other ones I've experienced (none of them were pretty, timing of the future bottom was never clear to me). But our basic financial stability isn't staked on my being correct on that guess, within reason.
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calmaniac
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Re: What is your AA, given your age ? and this crisis ?

Post by calmaniac »

cos wrote: Mon Mar 16, 2020 10:10 pm 1. I'm 22 years old, and my AA is 165/135 stocks/bonds. I'm young with nothing to lose, and my portfolio performs similarly to the market on the downside while outperforming on the upside.

2. For me, risk includes leverage. I likely won't change much for the next few decades. I might glide toward 90/60 after hitting $2,000,000. I also might deleverage entirely and switch to 90/10 if I stop working (or bonds become callable or the yield curve inverts).
cos, how are you calculating you're AA? [In red above] I'm used to seeing these add up to 100. I assume your numbers somehow represent leverage? Thx.
62 yo, 1-3y til retire. AA 70/30: 30% S&P, 16% value, 14% intl, 10% EM, 30% short/int govt bonds. My mil pension + DW's now ≈60% of expenses. Taking SS @age 70--> pension+SS ≈100% of expenses.
PhilosophyAndrew
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Re: What is your AA, given your age ? and this crisis ?

Post by PhilosophyAndrew »

80/20 three fund at age 54. Staying the course, following my ISP, and benefiting from the peace of mind this gives me.

Andy.
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GerryL
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Re: What is your AA, given your age ? and this crisis ?

Post by GerryL »

Age 71 and my aa has been 60/40 since before I retired at 66. Not too worried about volatility since I don't rely on my invested $$ for needs and can keep much of the money invested.

I am willing to let aa go to 50/50, but when it gets heavy on the stock side, I can nudge it back into place with RMD withdrawals.

The current crises do not affect how I manage my portfolio. I went through 2008-2009 by staying the course, which has probably helped give me the confidence to leave well enough alone.
Visitor76
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Re: What is your AA, given your age ? and this crisis ?

Post by Visitor76 »

theorist wrote: Tue Mar 17, 2020 12:09 pm
Visitor76 wrote: Tue Mar 17, 2020 9:23 am
Question for those who are 15+ years out from retirement, has the current crisis affected your target dates for retirement?
No. How about yours?
Well, It's hard to calculate using retirement calculators given the current market and not knowing how long this downturn will last.
matti
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Re: What is your AA, given your age ? and this crisis ?

Post by matti »

Hi everyone.

I'm 40yo and I'm at 83/17. Haven't changed anything.
rbaldini
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Re: What is your AA, given your age ? and this crisis ?

Post by rbaldini »

33 years old. Dual income, no kids. Own a house with mortgage, otherwise no debt. Target is 90% stock, 10% bond. No plan to change it, yet.
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MortgageOnBlack
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Re: What is your AA, given your age ? and this crisis ?

Post by MortgageOnBlack »

85/15, just turned 36... My Retirement (Rollover IRA and ROTH - Taxable soon!) is only 85k now after this beating so I'm thinking about transitioning to 90/10 and dialing back to 85/10 after the next year or so...

10 years ago, I was expecting to follow Age-10 in Bonds and I think that is too conservative now. I may stay 85/15 for quite some time. To be honest, I don't really have a plan and when I dial down now. Maybe Age-25 in Bonds?
Last edited by MortgageOnBlack on Tue Mar 17, 2020 12:37 pm, edited 1 time in total.
ge1
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Re: What is your AA, given your age ? and this crisis ?

Post by ge1 »

Age 48. was 40/60 stocks / bonds before the crisis due to low need to take risk and the view that US equities were overvalued.

Moved in the last week to 60/40, may increase that to 70/30 if stocks drop further.
frugalmama
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Re: What is your AA, given your age ? and this crisis ?

Post by frugalmama »

I'm 39...100% stocks. I have no intention of doing anything different for probably another 15 years. We will have pensions (so like bond income) and really don't needs this money.

Stock market money is monopoly money to me until I retire...unrealized gains and losses mean absolutely nothing to me.

We made it through the Great Recession with a job loss, are frugal, and have diversification of jobs and 1 very steady secure job. I do actually enjoy looking at my portfolio every day even when I lose money as it is relatively large and I'm still amazed that we are able to live the life we live and have saved that much. I enjoy the act of saving, but money in and of itself isn't that important to me.
Scooter57
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Re: What is your AA, given your age ? and this crisis ?

Post by Scooter57 »

15/85 with most of the fixed income in a 5 yr CD ladder paying on average 3%. Some muni bond funds.

Live very modestly as I don't enjoy most of the stuff people spend money on, so my needs are few and I have little need to take risks. Very grateful for what I have, which came late in life through a combination of huge, unexpected entrepreneurial business success and an unexpected inheritance.

71 yrs old. Still earning a small amount from my own business which I am winding down after a very strong decade. My partner's business which did well through the financial crisis is still doing well. No pension. Decent social security (deferred until age 70). Slowly gifting assets to my heirs as my home state that I love taxes estates heavily.
Barsoom
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Re: What is your AA, given your age ? and this crisis ?

Post by Barsoom »

Age 60. Retired less than one year.

My AA at the end of January was still being built out to a 65/35 allocation. At the time, it was 47/33/20 stocks/bonds/cash. My FA was focused on initially funding the bond portion of my portfolio. The cash was going to go into stock purchases beyond the MegaCorp stock that I already had in my 401(k) that was rolled over to my IRA. MegaCorp was going to be sold over time at various price targets.

Then the turmoil began.

With no buying/selling and only dividends distributed into cash, it is now 37/37/26.

Overall, I'm down 19.5% since the end of January and 23.5% since retirement.

-B
dharma student
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Re: What is your AA, given your age ? and this crisis ?

Post by dharma student »

Sixty this year, 50-50 stocks bonds

Will rebalance towards more bonds as I age and plan to go 30-70 in retirement.
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TomatoTomahto
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Re: What is your AA, given your age ? and this crisis ?

Post by TomatoTomahto »

Ferdinand2014 wrote: Mon Mar 16, 2020 12:30 am 1.) 3 years expenses in 1 month treasury bills and everything else in a low cost S&P 500 index fund. I do not keep a percent allocation or rebalance. Why? I like simplicity. It helps prevent behavioral mistakes as there are no decisions or activities involved. I have no interest in risking my safe treasury bills by rebalancing them into a stock market crash to satisfy an arbitrary asset allocation. I do not care about volatility. I do not care if the 3 years of expenses represents 5% or 50%. I do care that it represents 3 years.

2.) I do not plan to glide anything. I am happy with my current plan for the rest of my days. I am 15 years from retirement.

3.) I stay the course because there are no decisions to be made. I have my 3 years expenses in treasury bills on auto-roll with Fidelity. Every Friday Fidelity automatically invests 1/52 of my maximum allowable contribution to my SEP and 403b and I match that amount in taxable. It goes into FXAIX (Fidelity 500 index fund). I have zero decisions to make. It is entirely on autopilot. $2,952 every Friday.
We are the same as Ferdinand, although not knowing our annual expenses in retirement, I figured that $3M in fixed income would suffice.

It is a relief to be released from the tyranny of percentage based AA. I know that’s hyperbole, so apologies.

ETA: wife and I are in 60s.
Last edited by TomatoTomahto on Tue Mar 17, 2020 2:13 pm, edited 1 time in total.
Okay, I get it; I won't be political or controversial. The Earth is flat.
JD2775
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Re: What is your AA, given your age ? and this crisis ?

Post by JD2775 »

45 years old. 70/30

I moved from 80/20 to 70/30 in late January (when things were good). Glad I did.

Will stick with this allocation for a long time I am guessing. Maybe 8-10 years
Cheyenne
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Re: What is your AA, given your age ? and this crisis ?

Post by Cheyenne »

Age: 68

Five weeks ago I had a funny feeling and moved from 50/50 to 30/70.
atdharris
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Re: What is your AA, given your age ? and this crisis ?

Post by atdharris »

I'm 31 and aim for a 90/10 split. I don't really plan to glide towards bonds beyond that until I am 40. During the market sell-off, I upped my 401k contribution by 5%. I am not nearly as doom and gloom on this, and I have faith that we, as a country, will make it through as best we can.
BoggledHead2
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Re: What is your AA, given your age ? and this crisis ?

Post by BoggledHead2 »

100/0, 8 months expenses in emergency fund cash

20+ year investing horizon ... throwing next paycheck back into market
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Deadwood
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Re: What is your AA, given your age ? and this crisis ?

Post by Deadwood »

I am 56 years old. I am currently 64/36 percent in Stocks/Bonds. I increase my bond allocation by 1% each year with the goal of being 60/40 at age 60.

-DW
"I intend to live forever. So far, so good." -Steven Wright
UpperNwGuy
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Re: What is your AA, given your age ? and this crisis ?

Post by UpperNwGuy »

My AA is 60/40, and it is not changing because of “this crisis.” I am retired in my late 60s.
Lynette
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Re: What is your AA, given your age ? and this crisis ?

Post by Lynette »

Age 76. I am or was 60/40 before the present crisis. I will re-evaluate some time. Simplicity is the key.
I worked till I was 73 so that my pensions would grow but I also was able to indulge my passion of traveling by going overseas four or five time a year. Now I am retired, I am happy to be taking courses at a community college in Spanish and photography. I also took a course to become a Master Gardener and this has opened up a whole new world for me.

As I am not traveling at the moment I can comfortably live off of my pensions and social security. This gives me a great sense of freedom as my assets are only for emergency care - if needed. If I did not have pensions, I think I would have bought immediate annuities or another type of investment to provide me with an income floor that did not rely on the stock market. I think Mel recommended I or EE Bonds. Whatever, I am at peace.

Best wishes to all.
LiterallyIronic
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Re: What is your AA, given your age ? and this crisis ?

Post by LiterallyIronic »

confusedinvestor wrote: Sun Mar 15, 2020 11:45 pm Folks,

1. What is your AA (Stock:Bond), given your age? and why?

2. How do you glide your risk (stock percentage) as you age and/or approach your 'need' portfolio value ?

3. Given the current market and health crisis, how do you 'stay the course' on your AA ?

Love to get your numbers and inputs.

ps: I'm 45, AA 75:25 w Stocks 120 - Age with gliding 2% every year, until we reach AA 60:40 at age 52 and plan to keep in 60:40 until I retire at 57 and re-evaluate. Staying the course during this crisis with Rebal with 5% band every 6 months, if needed.
1. 401k is 100/0 and Roth IRA is 90/10. I am 36. I got a late start, so I need to be aggressive.

2. I have no idea. I'm figuring I'd want to be around 60/40 in retirement, but I have no clue how I'm going to glide there over the next 14 years.

3. I'm too lazy to do anything, so I always do nothing. Status quo.
pasadena
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Re: What is your AA, given your age ? and this crisis ?

Post by pasadena »

I'm 45 closing in on 46.

80/20 in my retirement accounts (401(k) and Roth IRA). Same in my HSA.

60/40 in my non-retirement accounts (taxable and another Roth IRA). However I did TLH my entire international position last Thursday and have decided to keep it in cash until my ESPP money comes at the end of the month. I was finding my emergency fund too small for comfort and decided increasing it was worth the risk of losing money if VTIAX goes back up before April 1st. I'm still at 60/40 stock/bonds though, just 60% US instead of 48% US / 12% Int'l for the next couple of weeks.

Lesson learned. My AA seems to fit with my actual, real-life risk tolerance, but my EF does not. I will update my IPS in a few weeks to reflect that.
MDfan
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Re: What is your AA, given your age ? and this crisis ?

Post by MDfan »

58 years old. 60/40. Plan to retire in 2021 with FERS pension so I won't need to touch my investments for a few years at least.
friar1610
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Re: What is your AA, given your age ? and this crisis ?

Post by friar1610 »

Goal is something right around 50/50. Why? 60-40 seems like further than I want to go with equities. Also, my IPS says not to let fixed income go below $X and 50/50 is the sweet spot. $X in fixed will provide my wife with $Y/yr for 20 years, further elaborated on below. I was at 48/48/4 BC (before corona) but was down to about 41% at yesterday's close in spite of a few relatively small equity purchases over the last few weeks. I will try to get back to 50/50-ish in due course as things develop but may not make it all the way before bumping up against the FI floor. And maintaining that floor trumps a perfect AA.

Ages 74/73. Excellent inflation-adjusted military pension that we pretty much live on (with an occasional dip into SS). We both took SS at 62; spouse's was very low. Modest RMDs since spouse had short working career and military didn't have access to TSP back in the day and I had relatively short post-military "career". RMDs either go to QCDs or are invested in taxable.

Goals for port:
- primary: provide income for my wife if I go first. As long as I'm around, we're in good shape. If I predecease her, her SBP from the Navy pension is only 35% of what I get. And she will loss her SS, income tax and Medicare will increase.
- secondary: provide inheritances for our two kids and 3 grandkids.
- tertiary: give us a source of "mad money" for splurges.

I could probably be more aggressive and accomplish those goals but times like this remind me that I don't want to go through big stock market drops with 70% in equities. Any potential gain just isn't worth it at this stage.
Friar1610
Retrograde
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Re: What is your AA, given your age ? and this crisis ?

Post by Retrograde »

I am 34.

My AA is 100/0.

Eventually when I start getting closer to retirement I will move some funds such that I always have 3 to 5 years expenses in bonds/fixed. But the rest of my investments will remain in equities.

The current bear market isnt making me rethink my AA at all. Just makes me wish I took home a larger paycheck so I had more to invest right now. I plan to continue investing the whole way down and the whole ride back up again. :sharebeer
LHRAdam
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Re: What is your AA, given your age ? and this crisis ?

Post by LHRAdam »

I’m 48.

50/50

No plans to change my AA and relaxed about the current market. I’m staying the course.

Adam
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cos
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Re: What is your AA, given your age ? and this crisis ?

Post by cos »

calmaniac wrote: Tue Mar 17, 2020 12:22 pm
cos wrote: Mon Mar 16, 2020 10:10 pm 1. I'm 22 years old, and my AA is 165/135 stocks/bonds. I'm young with nothing to lose, and my portfolio performs similarly to the market on the downside while outperforming on the upside.

2. For me, risk includes leverage. I likely won't change much for the next few decades. I might glide toward 90/60 after hitting $2,000,000. I also might deleverage entirely and switch to 90/10 if I stop working (or bonds become callable or the yield curve inverts).
cos, how are you calculating you're AA? [In red above] I'm used to seeing these add up to 100. I assume your numbers somehow represent leverage? Thx.
You're exactly right! I'm in a triply leveraged 55/45 portfolio. 165/135 can also be thought of as (3*55)/(3*45) and, as you might expect, add up to 300% total.
Blue456
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Re: What is your AA, given your age ? and this crisis ?

Post by Blue456 »

confusedinvestor wrote: Sun Mar 15, 2020 11:45 pm Folks,

1. What is your AA (Stock:Bond), given your age? and why?

2. How do you glide your risk (stock percentage) as you age and/or approach your 'need' portfolio value ?

3. Given the current market and health crisis, how do you 'stay the course' on your AA ?

Love to get your numbers and inputs.

ps: I'm 45, AA 75:25 w Stocks 120 - Age with gliding 2% every year, until we reach AA 60:40 at age 52 and plan to keep in 60:40 until I retire at 57 and re-evaluate. Staying the course during this crisis with Rebal with 5% band every 6 months, if needed.
1. 60-40. Age 40 = BND, reminder is stocks
2. I will glide down every 5 years by 10. I am planning to retire in 10-15 years. Or at least achieve FI and work part time.
3. I didn't. I increased my stocks exposure to 100%. I just started investing 1 year ago so this really does not make much difference but I might as well get a shot at cheaper stocks. I am not planning to go back to BND and will completely replace it with Cash/TIPS/I-Bonds.
Broken Man 1999
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Re: What is your AA, given your age ? and this crisis ?

Post by Broken Man 1999 »

AA is 50/50.

DW and I are both 66.

Nothing changed during this crisis other than I have done some rebalancing by selling some Total Bond Market and buying some Total Stock Market.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go. " -Mark Twain
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Mel Lindauer
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Re: What is your AA, given your age ? and this crisis ?

Post by Mel Lindauer »

Lynette wrote: Tue Mar 17, 2020 2:12 pm Age 76. I am or was 60/40 before the present crisis. I will re-evaluate some time. Simplicity is the key.
I worked till I was 73 so that my pensions would grow but I also was able to indulge my passion of traveling by going overseas four or five time a year. Now I am retired, I am happy to be taking courses at a community college in Spanish and photography. I also took a course to become a Master Gardener and this has opened up a whole new world for me.

As I am not traveling at the moment I can comfortably live off of my pensions and social security. This gives me a great sense of freedom as my assets are only for emergency care - if needed. If I did not have pensions, I think I would have bought immediate annuities or another type of investment to provide me with an income floor that did not rely on the stock market. I think Mel recommended I or EE Bonds. Whatever, I am at peace.

Best wishes to all.
Here's my Forbes article that she's referring to, explaining how to build your own annuity with EE Bonds:

https://www.forbes.com/sites/theboglehe ... 1772137ba3
Best Regards - Mel | | Semper Fi
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AerialWombat
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Location: Cash Canyon / Cashville

Re: What is your AA, given your age ? and this crisis ?

Post by AerialWombat »

Early 40’s, 30/70 forever. No glide path, no reaction to current volatility.

You asked how to stay the course: Just don’t login to your accounts. It really is that simple.
michoco911
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Re: What is your AA, given your age ? and this crisis ?

Post by michoco911 »

confusedinvestor wrote: Sun Mar 15, 2020 11:45 pm Folks,

1. What is your AA (Stock:Bond), given your age? and why?

2. How do you glide your risk (stock percentage) as you age and/or approach your 'need' portfolio value ?

3. Given the current market and health crisis, how do you 'stay the course' on your AA ?
Age 40 , Allocation 60/40
Intend to keep the same till few years before retirement.
Stay the course base on my investment policy (5% deviation). Yesterday morning i was at 54.5%/45.5% so i bought VWRD to get the balance back to 60/40. Will do the same if there is another deviation of 5% keeping emotions off.
30% VWRD 30% VUSD 40% AGGG until further notice
AlwaysaQ
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Re: What is your AA, given your age ? and this crisis ?

Post by AlwaysaQ »

I'm 78, retired, and living on pension, social security, and investment income. I had planned 40% stock, got up to 44%, and then the market started to crumble and I am now down to 35%. I have done some TLH exchanges but not bought otherwise.

I'm not sure what stock allocation I want when this is over. Vanguard Target Retirement Income is 30% stock and Fidelity Freedom Index Income is 20% stock.
snowox
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Re: What is your AA, given your age ? and this crisis ?

Post by snowox »

55, 5 years retired April 2nd

46.40 Stocks
29.30 Bonds
24.30 Cash

My goal is to deploy 1/2 of the cash incrementally on way down and live off the other half through this down turn.
gamboolman
Posts: 132
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Re: What is your AA, given your age ? and this crisis ?

Post by gamboolman »

Nearing 61
Deferred retirement till abit of calm returns
Probably retire this year or next at latest
AA target is ~40 to 45 stocks, and ~50 Bonds, and ~10 Cash
But had drifted to being Cash heavy as we prepared to retire and then we deferred at end of 2019
Then the recent crisis & panic
Portfolio has lost about 11% since the New Year
Now at about
31 Stocks
55 Bonds
14 Cash
Starting to buy more of our stock index fund to ease the AA back towards target
Good to be working and able to do this
Pikel
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Re: What is your AA, given your age ? and this crisis ?

Post by Pikel »

35 y/o

43/57 at the start of the crash. Trying to DCA to 50/50.

Reason for being so conservative was that we could reach our financial goals and did not need to take more risk.

Based on 5% expected equity growth and 2% bond yield; I estimate that the annualized 10-year return difference between 60/40 and 50/50 to be .3% per year. Adjusting bands by 10% that .3% change in growth rate holds true at every band. Didn't seem worth the extra risk to me.
Lynette
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Re: What is your AA, given your age ? and this crisis ?

Post by Lynette »

Mel Lindauer wrote: Tue Mar 17, 2020 11:48 pm
Lynette wrote: Tue Mar 17, 2020 2:12 pm Age 76. I am or was 60/40 before the present crisis.

As I am not traveling at the moment I can comfortably live off of my pensions and social security. This gives me a great sense of freedom as my assets are only for emergency care - if needed. If I did not have pensions, I think I would have bought immediate annuities or another type of investment to provide me with an income floor that did not rely on the stock market. I think Mel recommended I or EE Bonds. Whatever, I am at peace.

Best wishes to all.
Here's my Forbes article that she's referring to, explaining how to build your own annuity with EE Bonds:

https://www.forbes.com/sites/theboglehe ... 1772137ba3
Thank you Mel. This makes a great deal of sense to me. Even though I have pensions, I might have followed this plan if I had known about it. I think it is a great plan. As a retiree, I find it gives me peace to have income independent of the markets.

Thanks for your advice on this forum.

Lynette
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sleepysurf
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Re: What is your AA, given your age ? and this crisis ?

Post by sleepysurf »

Age 65, 50:50 allocation since retired 2 yrs ago (no pension, delaying SS). Currently down to 45.3% stocks, and likely hitting my rebalancing band again at today's market close. Last week I did some partial Roth conversions (bonds to stocks), but will sit tight until the virus appears to have peaked.
Retired 2018 | ~50/45/5 (partially sliced and diced)
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