Has your AA Changed recently?

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
Topic Author
BusterScruggs
Posts: 27
Joined: Wed Aug 21, 2019 10:00 am

Has your AA Changed recently?

Post by BusterScruggs »

Has anyone changed their IPS AA lately with all the market turmoil? For me, I have gone from low 50's equities, to low 60's equities and now wonder daily what my AA should be. Its making me a little crazy.

P.S. If it HAS changed, do you mind stating your age? As im in my 50's now it concerns me a lot more.
Last edited by BusterScruggs on Wed Apr 22, 2020 2:21 pm, edited 1 time in total.
UpperNwGuy
Posts: 4301
Joined: Sun Oct 08, 2017 7:16 pm

Re: Has your AA Changed recently?

Post by UpperNwGuy »

Not me. Still 60/40.
Call_Me_Op
Posts: 8003
Joined: Mon Sep 07, 2009 2:57 pm
Location: Milky Way

Re: Has your AA Changed recently?

Post by Call_Me_Op »

No changes.
Best regards, -Op | | "In the middle of difficulty lies opportunity." Einstein
theorist
Posts: 720
Joined: Sat Sep 28, 2019 11:39 am

Re: Has your AA Changed recently?

Post by theorist »

Sticking at 70/30.
Broken Man 1999
Posts: 5300
Joined: Wed Apr 08, 2015 11:31 am
Location: West coast of Florida, inland on high ground!

Re: Has your AA Changed recently?

Post by Broken Man 1999 »

Our AA is still right around 50% equities and 50% bonds. Not exact, but not out of our rebalancing band.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go. " -Mark Twain
MarkBarb
Posts: 509
Joined: Mon Aug 03, 2009 11:59 am

Re: Has your AA Changed recently?

Post by MarkBarb »

Retired. 54. 45% US bonds, 5% cash, %35 US stocks, %15 Intl stocks. No change. No changes planned.
User avatar
grabiner
Advisory Board
Posts: 28230
Joined: Tue Feb 20, 2007 11:58 pm
Location: Columbia, MD

Re: Has your AA Changed recently?

Post by grabiner »

I haven't changed my IPS AA, but even if I had, I wouldn't have changed my actual AA, because of the last section of my IPS:

"This statement will be reviewed whenever there is a substantial change in my financial situation, and annually when I rebalance. If there is no substantial change in my financial situation, I will wait at least three months between changing the asset allocation in my statement and changing the asset allocation of my investments, and review the change in the statement at that time."

This discussion served as a reminder that I needed to edit the IPS because I have paid off my mortgage. That did not lead to a change in AA strategy because the strategy was already set; my AA was 88% net stock and 12% net bonds counting the mortgage as a negative bond, and now the mortgage balance is zero and the bond allocation is 12% of the total investments. I sold bonds to pay off the mortgage (indirectly, selling taxable stock and moving an equal amount from bonds to stock in my employer plan).
Wiki David Grabiner
Independent George
Posts: 996
Joined: Wed Feb 17, 2016 12:13 pm
Location: Chicago, IL, USA

Re: Has your AA Changed recently?

Post by Independent George »

I rebalanced my Roth IRA in early March, and haven't touched it since. We haven't yet gotten to the point where I need to rebalance it back the other way.
markcoop
Posts: 1181
Joined: Fri Mar 02, 2007 8:36 am

Re: Has your AA Changed recently?

Post by markcoop »

I am 54 years old. I did firm something up because of the last few years. I had this habit of over-rebalancing in extreme markets (really the last few years) and really got away from my AA because of it. I was able to use this opportunity to get back to where my AA was but I decided to go to a more dynamic AA model.

46% stock - when I feel valuations are very high
50% stock - the majority of time
54% stock - when I feel valuations are very low

My rebalancing bands are on the tight side at an absolute 4%. For example, I currently am at 54% stock and will rebalance if I go below 50% or above 58%. So, part of it is firm (the exact allocations) but part of it is how I feel about the markets. I know it is many people's goal to take any feelings out of it, but I think valuations are really tough to quantify. Besides, with this formula I can't be that far off.
Mark
User avatar
Cubicle
Posts: 941
Joined: Sun Sep 22, 2019 1:43 am

Re: Has your AA Changed recently?

Post by Cubicle »

Yes.*

*Went from 100% equities to sneaking in a pay advance to buy more equities. So technically I owe myself a loan. :greedy
"Oh look another bajillion point declin-Ooooh!!! A coupon for pizza!!!!" <--- This is what everyone's IPS should be. ✓✓✓
User avatar
topper1296
Posts: 736
Joined: Fri Apr 03, 2009 10:50 pm
Location: Nashville TN

Re: Has your AA Changed recently?

Post by topper1296 »

Nothing major, but I decreased my allocation to int'l by 5% and to REITS by 5%.
Normchad
Posts: 1455
Joined: Thu Mar 03, 2011 7:20 am

Re: Has your AA Changed recently?

Post by Normchad »

I have not changed my target AA. I think my actual AA has probably changed, but I haven't looked at closely enough to know by how much.

I generally do my rebalancing in January.
User avatar
badbreath
Posts: 987
Joined: Mon Jul 18, 2016 7:50 pm

Re: Has your AA Changed recently?

Post by badbreath »

I have not changed my AA and it has not varied past 5% for me to think about rebalancing. I 'm just going to do nothing like Jack B said to do.
“While money can’t buy happiness, it certainly lets you choose your own form of misery.” Groucho Marx
Post Reply