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

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

Post by confusedinvestor » 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.
Last edited by confusedinvestor on Mon Mar 16, 2020 11:11 pm, edited 2 times in total.

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

Post by theorist » Mon Mar 16, 2020 12:02 am

AA is 70/30, age is 49.

I plan to hold this allocation until about 55, then re evaluate.

Chose this because given our perceived job security (very secure), investment level, and spending needs, we are close to or
past the number we need to retire on with reasonable comfort. With about 10 years of expenses in fixed income, we can afford to
take the slightly aggressive stance we are taking, and if things turn out well, it will allow us to make satisfying contributions to our favorite
causes before and during retirement.

Since we don’t need the money for 15+ years (we like our jobs and they allow plenty of time and freedom to develop our interests and
travel), we don’t view the current market as a serious danger. If the economy tanks for a decade, our situation will not be as good as it would’ve been if we’d taken our chips off the table. I’m willing to bet in favor of American and world ingenuity leading to growth in the next 10-15 years.

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

Post by MortgageOnBlack » Mon Mar 16, 2020 12:05 am

My AA is 85/15. I'm 36. My AA has been the same regardless of market conditions. On this note, any recommendations for someone who is 36 years old with only around 100K in retirement? My plan is to gradually go down in risk once I turn 40, but I really need to get my total amount in retirement up. For what it's worth, I haven't flinched from the recent crashes (I did speed up my roth contributions though)

Vanguard Fan 1367
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Re: What is your AA, given your age ? and this crisis ?

Post by Vanguard Fan 1367 » Mon Mar 16, 2020 12:08 am

I am 67 and have an AA of 55/45. The wife wants to be a little aggressive with the thought that we are investing for our heirs.

Many people I respect say that a bad time to sell is when the markets drop. I am old enough to have seen a number of bear markets. I am hoping that this too shall pass.

My mother said that if they recovered from the bear market from around 1971-1973 they would never get into the market again. Later in the early 80s dad recommended that I consider investing in the stock market, he felt like something big was going to happen. I wish I had taken his advice in 1982. I didn't invest in the stock market till 1994 and didn't really get in with asset allocation and John Bogle thinking till 2014. Had I done the Bogle thing in 1982 my balance sheet as of today would look a lot better!
Upton Sinclair: "It is difficult to get a man to understand something when his salary depends on his not understanding it."

dru808
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Re: What is your AA, given your age ? and this crisis ?

Post by dru808 » Mon Mar 16, 2020 12:20 am

1. aa 70/30, age 37. Going with the somewhat conservative aa now till death. Not sure I believe in an automatic glide path.

2. I may reevaluate at retirement if I feel I want to reduce risk, can’t see going lower than 60/40 Wellington/3 fund-ish

3. This is my first bear and haven’t been bothered yet, the large bond allocation helps, I plan on contributing and blocking out the noise.
Last edited by dru808 on Mon Mar 16, 2020 12:36 am, edited 4 times in total.
60% US equity | 25% International equity | 15% US Treasury bonds

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

Post by TierArtz » Mon Mar 16, 2020 12:29 am

I’m late 50s and had been using contributions to keep my AA at 60/40. But, the 40% equaled about 25 years in expenses not covered by a pension, which I felt was too conservative. My new plan is 20x in fixed income. Two weeks ago that equated to a goal of 62/38. Today, my portfolio is probably about 55/45. When I get home from traveling (by car), I’ll evaluate the carnage and plug recent TLH and auto-investments in S&P 500 into Excel and M* to get a clearer picture. Assuming a slow recovery, it will likely take about two years for my total equity holdings to recover. But, I’ve told myself retirement (again) will occur after buying my way through the next bear market. That’s the present plan anyway.

Ferdinand2014
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Re: What is your AA, given your age ? and this crisis ?

Post by Ferdinand2014 » 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.
Last edited by Ferdinand2014 on Mon Mar 16, 2020 12:35 am, edited 2 times in total.
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kidshrink
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Re: What is your AA, given your age ? and this crisis ?

Post by kidshrink » Mon Mar 16, 2020 12:31 am

Age 37. 35/65, risk adverse, stable income.
Probably will keep this AA but open to adjusting.
Very difficult. I may have a lower risk tolerance than 35/65.

dru808
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Re: What is your AA, given your age ? and this crisis ?

Post by dru808 » Mon Mar 16, 2020 12:39 am

kidshrink wrote:
Mon Mar 16, 2020 12:31 am
Age 37. 35/65, risk adverse, stable income.
Probably will keep this AA but open to adjusting.
Very difficult. I may have a lower risk tolerance than 35/65.
Are you in a 3 fund or Wellesley or a combo?
60% US equity | 25% International equity | 15% US Treasury bonds

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

Post by Sheepdog » Mon Mar 16, 2020 12:39 am

Age 86, retired, living off investments and SS
Stock allocation has been 100 minus age since age 66, but stopped at 23% stock. It increased later to 27% where it is now. Stocks are within Wellesley and Balanced Index.
27/65/8
Just because it isn't your fault doesn't mean it isn't your responsibility....Josh Reid Jones

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

Post by ChrisO » Mon Mar 16, 2020 12:43 am

31, 100% stocks. Still feel fine. This is the first year I can max out all my investments accounts so I get to buy on a drop. Plan to be 100% until probably age 40-45 then slowly go into bonds. I plan to never be more conservative than 50/50.

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

Post by kidshrink » Mon Mar 16, 2020 12:49 am

dru808 wrote:
Mon Mar 16, 2020 12:39 am
kidshrink wrote:
Mon Mar 16, 2020 12:31 am
Age 37. 35/65, risk adverse, stable income.
Probably will keep this AA but open to adjusting.
Very difficult. I may have a lower risk tolerance than 35/65.
Are you in a 3 fund or Wellesley or a combo?
No I'm not.

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

Post by Bungo » Mon Mar 16, 2020 12:53 am

60/40 stocks/bonds, age 51. Was on track to retire about two years from now; unclear now whether that's going to be possible. Not planning to make any AA changes, will rebalance as appropriate.

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

Post by spae » Mon Mar 16, 2020 12:55 am

1. Mid 30s, 60/60/-20 stocks/bonds/cash. Bonds are heavily tilted towards long duration, but not as much as the some of the people on this board who have constructed their own risk parity portfolios out of 100% long duration bonds.

2. Move to 50/50/0 with reduced bond duration. If I retire and like the location, I'll probably buy a house. Depending on where I live, that might be 10% to 25% of my net worth if I don't take a haircut for the next few years. That would mostly come out of the bond portion of my AA.

3. Do nothing or re-balance, as appropriate. With bond yields where they are, CDs are looking like a good replacement for some of my bonds.

m@ver1ck
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Re: What is your AA, given your age ? and this crisis ?

Post by m@ver1ck » Mon Mar 16, 2020 12:57 am

43.
Retirement Stocks/Bonds: 77/23 (Age - 20): 790K
Taxable:
Stocks: 265K
35K in cash.
The cash position is the Emergency Reserves.
In case of real emergency, will move funds from stocks to cash in taxable, and reverse the same amount in Non-Taxable.
Glide Path: Rebalance on Bday. Not happening this year.

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

Post by StormShadow » Mon Mar 16, 2020 1:00 am

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

1. Without quantifying your need/ability/willing to take risk and/or goals, 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’m mid 40’s. AA 80:20. Used to be 100% stocks in the past but learned the benefits of including bonds (e.g. rebalancing purposes, decreased volatility, peace of mind) about 10 years ago. I plan to continue lowering my stock percentage every decade or so.

I stay the course because I’ve seen crashes before and I’ve seen the market subsequently recover.

This crash is unusual because of how quickly it is happening and how I am convinced it will recover almost as quickly. People are more confused than scared. I think we are going to get a hold of this thing and the market will settle.

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

Post by confusedinvestor » Mon Mar 16, 2020 1:02 am

Interesting. this is what i'm doing as well.

I'm Age - 20 in Bonds with 2% glide every year.

1. What is your floor of your glide ?

2. Why are you not Rebal this year ? Just curious.
m@ver1ck wrote:
Mon Mar 16, 2020 12:57 am
43.
Retirement Stocks/Bonds: 77/23 (Age - 20): 790K
Taxable:
Stocks: 265K
35K in cash.
The cash position is the Emergency Reserves.
In case of real emergency, will move funds from stocks to cash in taxable, and reverse the same amount in Non-Taxable.
Glide Path: Rebalance on Bday. Not happening this year.

22twain
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Re: What is your AA, given your age ? and this crisis ?

Post by 22twain » Mon Mar 16, 2020 1:06 am

confusedinvestor wrote:
Sun Mar 15, 2020 11:45 pm
1. Without quantifying your need/ability/willing to take risk and/or goals, what is your AA (Stock:Bond), given your age? and why?
Surely "why" has everything to do with "your need/ability/willingness to take risk and/or goals"? :confused :confused :confused :confused :confused :confused :confused
My investing princiPLEs do not include absolutely preserving princiPAL.

Ocean77
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Re: What is your AA, given your age ? and this crisis ?

Post by Ocean77 » Mon Mar 16, 2020 1:07 am

AA is 70/30, age 52. The plan is to get to 50/50 by the time I retire, then stay with that.

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

Post by oneleaf » Mon Mar 16, 2020 1:14 am

41, 50/50... been this way since we started seriously investing at age 27, which some may have found as extremely conservative back then and only mildly conservative now.
Planning to keep it 50/50 for life.

Staying the course and rebalancing and TLH along the way.

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

Post by Moochy » Mon Mar 16, 2020 1:33 am

Age 70. 3 weeks ago was 10% IAU 40% VCIT 50% Cash. Friday 10% IAU 90% Cash. Riding this out.
This will be as bad as 2007-2008. Will buy when the bear is done.

CarpeDiem22
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Re: What is your AA, given your age ? and this crisis ?

Post by CarpeDiem22 » Mon Mar 16, 2020 1:50 am

1. Age 33. As of Feb 2020 end, I was 45/55 stocks/bonds and cash. I was 20% below my target stock % due to my perceived overvaluation of markets.
2. My plan is age in bonds rounded to nearest 5%, and shift by 5% once every 5 years.
3. I am currently shifting cash/bonds to equity at these lower valuations, and planning to go to 65% equity over next few months if valuation remain similar to current ones.

alexfoo39
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Re: What is your AA, given your age ? and this crisis ?

Post by alexfoo39 » Mon Mar 16, 2020 2:27 am

IPS says 50/50

age 31 this year

reason: I'm too young to see a downturn. I dial down my AA to see if i can handle my own investing behavior.

From top 52/48 now left 45/55

I'm thinking of calling it quit.

dboeger1
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Re: What is your AA, given your age ? and this crisis ?

Post by dboeger1 » Mon Mar 16, 2020 2:49 am

Age 28, coming up on 29. 100% global cap weighted index fund (VTWAX), with no foreseeable glide path and minimal cash savings at this point.

Against my better Boglehead senses, I tried to time the market when this recent bear market started by investing a large portion of my emergency fund. That falling knife hurt! That alone would've been fine, but then I was hit by a much larger than expected tax bill and others due at about the same time, and there went my emergency fund. We were able to recover it pretty quickly with my wife's annual bonus that was due, but the worst part was becoming the market timer cliche I never wanted to become.

As scary as this all is, I'm a big believer in TINA (there is no alternative) at the moment. Stocks are just so much more attractive than other asset classes in a low interest environment in which governments seem to only know how to bail out industry. Bailouts and QE were controversial in the 2007-9 crisis; now, Jim Cramer demands them before the official end of the bull and nobody bats an eye because society is collectively leveraged to the hilt and dependent on corporate stability. It seems everything's too big to fail today.

So basically, unless we eventually see a return to "normal", I have no intention of changing my 100% global cap weighted stock portfolio. I don't even think I'll end up with a retirement glide path, maybe just save up some cash reserves before retirement. My intention is to accumulate a large enough portfolio to live off of dividends, or at the very least have a very conservative withdrawal rate. I'm fortunate enough to have both a decently high income and a low desire to spend it, so I can set such a goal. It may have to change when we decide to have kids, but I'll wait until that time to reevaluate.

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

Post by pascalwager » Mon Mar 16, 2020 3:48 am

My age is 77.

I don't have a single, conventional portfolio, but rather both a riskless portfolio and a risk portfolio. They're similar to Bill Sharpe's RISMAT e-book portfolios for retirees.

My riskless portfolio is a Vanguard TIPS fund at 24% of the overall investments. Sharpe specifies this particular TIPS fund as suitable as the riskless asset, but it does have price risk while avoiding credit and inflation risk.

The remaining 76% is the risk portfolio with global stock index funds and a total bond market index fund. The stock/bond ratio is 70/30 for the risky portfolio. The stock funds are allocated 50/50, US/non-US.

I'd estimate that the overall investments are about 80% as risky as the risk portfolio itself. But this seems adequate as long as my pension doesn't get hammered by the developing bear market/recession/depression.
Retired, pension, no SS | Risk portfolio: World stock index funds | Riskless portfolio: Treasury bond funds, cash

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

Post by Ari » Mon Mar 16, 2020 3:57 am

Age 36, 104.3% stocks. Glidepath is slowly increasing stock exposure during this crisis. Longer term, I plan on staying 100% stocks until I have enough. I haven't quantified how much that is, but I'm not there yet, which is all I need to know.
All in, all the time.

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

Post by firebirdparts » Mon Mar 16, 2020 6:22 pm

I am about 50/50 and age 54. I could retire any time and I was planning basically for the event now in progress.
A fool and your money are soon partners

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

Post by pokebowl » Mon Mar 16, 2020 6:46 pm

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

1. Without quantifying your need/ability/willing to take risk and/or goals, what is your AA (Stock:Bond), given your age? and why?
100% Equity invested along the global market cap. I only carry enough cash to cover the previous month's credit card bills. This matches my investment horizon fine, I actually expect to hit FIRE in my late 30s to early 40s. This latest episode of market volatility hasn't changed any AA plans.
confusedinvestor wrote:
Sun Mar 15, 2020 11:45 pm
2. How do you glide your risk (stock percentage) as you age and/or approach your 'need' portfolio value ?
It will most likely slowly slide down from 100 to 75/20/5 as I roll into FIRE.
confusedinvestor wrote:
Sun Mar 15, 2020 11:45 pm
3. Given the current market and health crisis, how do you 'stay the course' on your AA ?
I chose an AA I had the ability and willingness to take. The only adjustments I've taken was moving my 401k contribution percentages from 20% to 90% back in late February during the first week this started.
Nullius in verba.

m@ver1ck
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Re: What is your AA, given your age ? and this crisis ?

Post by m@ver1ck » Mon Mar 16, 2020 6:49 pm

confusedinvestor wrote:
Mon Mar 16, 2020 1:02 am
Interesting. this is what i'm doing as well.

I'm Age - 20 in Bonds with 2% glide every year.

1. What is your floor of your glide ?

2. Why are you not Rebal this year ? Just curious.
m@ver1ck wrote:
Mon Mar 16, 2020 12:57 am
43.
Retirement Stocks/Bonds: 77/23 (Age - 20): 790K
Taxable:
Stocks: 265K
35K in cash.
The cash position is the Emergency Reserves.
In case of real emergency, will move funds from stocks to cash in taxable, and reverse the same amount in Non-Taxable.
Glide Path: Rebalance on Bday. Not happening this year.
What does 2% glide mean?
Not rebalancing this year to the target - Since stocks are going to go crashing, I'm going to go to 80% stocks.

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

Post by cableguy » Mon Mar 16, 2020 6:49 pm

52 years old. 35% stocks. 65% fixed. So tempting to buy stocks but I just can’t stomach the downturns. I will say in 2 years this will be a distant memory and stocks will be at new highs. I lived through 9/11. I thoughts the world was ending. We seem to get through these things. And one thing I know....interest rates are easy to lower, but very difficult to raise. Stocks will be the best game in town again. Just be patient....

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

Post by The Casualty » Mon Mar 16, 2020 7:05 pm

Age: 63 and 69.

AA: 50 Equity / 35 Bonds / 15 Cash

This was our AA on 2/19/20. Staying the course, not making any changes. Reinvest all Divs/CG's. Not buying, not selling. We are down right at 15%, that's over $500K. Retired with pension, SS, and home paid off with zero debt. That's where we wanted to be knowing we could face another 2008 -2009 crisis at any time. I think we will take out 08/09 levels maybe more. I hope not but mentally prepared for it.

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

Post by lostdog » Mon Mar 16, 2020 7:07 pm

Age 44.

100/0

6 months cash

When we hit our goal, I'll go 70/30 for life.
Global Market Cap Equity || Taxable: VTSAX+VTIAX || IRA: VTWAX

singledigit12b
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Re: What is your AA, given your age ? and this crisis ?

Post by singledigit12b » Mon Mar 16, 2020 7:18 pm

Age:59 Retired May 31,2019
35 stock 65 bonds/cash. Was putting my house on the market this week and using 100k of my cash allocation to upgrade. I’m wondering if this is a good idea now. Minus the 100k for the house that still leaves 20 years expenses in bonds/cash so pretty sure I’ll be reasonably safe either way.

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

Post by pyesquared » Mon Mar 16, 2020 7:20 pm

cableguy wrote:
Mon Mar 16, 2020 6:49 pm
52 years old. 35% stocks. 65% fixed. So tempting to buy stocks but I just can’t stomach the downturns. I will say in 2 years this will be a distant memory and stocks will be at new highs. I lived through 9/11. I thoughts the world was ending. We seem to get through these things. And one thing I know....interest rates are easy to lower, but very difficult to raise. Stocks will be the best game in town again. Just be patient....
Yes I agree cableguy. I am 59, retired. I tired of the overvaluation/US elections/tons of debt stories and reallocated to 95% fixed CDs/brokered CDs/bonds late last year. Pays the bills, not much risk or gain but I will be back in stocks of course.

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

Post by windaar » Mon Mar 16, 2020 7:24 pm

I’m around 60 and have followed “age in bonds/fixed” for years. My AA is 60% fixed, 25% US equity, 5% Intl equity, 10% real estate. Will not be changing anything due to current events.
Nobody knows nothing.

mailman781
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Re: What is your AA, given your age ? and this crisis ?

Post by mailman781 » Mon Mar 16, 2020 7:28 pm

Age 82. Allocation 30/70. Plan to keep this AA to the end. There is one other bit of information that each poster should include, are you living off of your portfolio or do you have nice pensions? That makes a great deal of difference in how people handle their AA and how they are handling this current crisis. We both have pensions that cover our living expenses so that we do not have to take extra risk to increase income.

Best wishes to all and stay well.

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

Post by DJWaldron » Mon Mar 16, 2020 7:34 pm

50/50 (well now 45/65 after this past week).
Age 60
Stock funds = 110 - age.
I'll stay the course, and keep bi-weekly contributions going into 401K and IRAs.

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

Post by dvvader » Mon Mar 16, 2020 7:56 pm

1. I'm 30 and at 70/30. I started managing my own investments in 2017 and that allocation seemed like a decent starting point while I gauged my risk tolerance. I've been comfortable at 70/30 and still am so I guess I'm doing something right.

2. I don't have a planned glide path. I'll continue to evaluate my need, ability, and desire to take risk and make adjustments as necessary.

3. I'll rebalance if my allocation drifts outside the 5% rebalancing bands specified in my IPS. I haven't had to yet, though I haven't looked yet this evening. I've also made one tax loss harvesting transaction (3/9) and have a new pile of losses to harvest, though I'm in no rush to do it as I don't want to "waste" TLH partners. Plus I don't think we've seen the bottom yet.

vipertom1970
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Re: What is your AA, given your age ? and this crisis ?

Post by vipertom1970 » Mon Mar 16, 2020 9:36 pm

age: 50
AA: 100% equities since 1995-unitl I die
Debt: ZERO
2000 and 2008 taught me not to panic or run for the hills in the down market.

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

Post by LuckBeALady » Mon Mar 16, 2020 9:40 pm

Ages 55/56
60% total stock market index
40% bond fund index

Why? I think it’s a good balance for us because when stocks are doing well we think we are too conservative, and when they are doing poorly we think we are too aggressive.

Glide: every few years we have reduced the stock percentage a bit. No rigid plan. No plan to change again.

This crisis: staying the course so far and will most likely not crack. Sometimes staying the course happens because we don’t know what else to do. There is nowhere to hide. We made it through 2008-09 without stressing. Of course we were over a decade younger and had way less money invested at that time.

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

Post by MathWizard » Mon Mar 16, 2020 9:47 pm

Age 62,. 50/50 AA.

Was very aggressive, and took my foot off the gas as I approached Fin Ind. , and felt the market was very much overpriced.

I expect to increase my allocation to equities when prices become more to my taste, or I will drift slowly up to 60/40.

It is easy to stay the course when you are well below your expected long term stock exposure. Three years ago I was 100% stock and rode that through 2008/2009.
Last edited by MathWizard on Mon Mar 16, 2020 9:48 pm, edited 1 time in total.

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

Post by MotoTrojan » Mon Mar 16, 2020 9:48 pm

100/0 with half of it in global small-value. 28 years old. I’m glad to be buying lower priced shares.

OpenMinded1
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Re: What is your AA, given your age ? and this crisis ?

Post by OpenMinded1 » Mon Mar 16, 2020 10:00 pm

My wife and I currently have a retirement portfolio with an asset allocation (AA) of about 58/42. She's 57 and I'm 61. Primarily, I use the average AA of three highly-rated 2025 and three highly-rated 2030 target date funds as a starting point for AA. I use 2025 and 2030 funds based on the estimate that we will be starting the drawdown phase in five to ten years. However, during my annual rebalance, I sometime increase or decrease the percentage of stocks 5% above or below this average based on any of a number of factors. I know that 5% won't make much difference, but it helps me psychologically somehow, especially if I'm 5% under the indicated allocation of stocks and the market does a downturn.

So for the time being I'm basing my AA and glide path on what target date funds do. However, I don't think I'll ever go below 45% to 50% stocks.

To stay the course during bad times, I don't look at the value of my portfolio, and I try to avoid stock market news as much as possible.

One of the other posters said we should indicate whether we have a pension. So yes I am receiving a significant pension, and my wife will receive less substantial pension payments. Also two years of expenses in an emergency fund, and no debt.

.
Last edited by OpenMinded1 on Tue Mar 17, 2020 5:57 am, edited 3 times in total.

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

Post by NotTooDeepLearning » Mon Mar 16, 2020 10:03 pm

My 401k has been 70/30 for a couple years and I'm in my late 20s. I will probably switch to 100% equities in the next month or so.

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Brianmcg321
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Re: What is your AA, given your age ? and this crisis ?

Post by Brianmcg321 » Mon Mar 16, 2020 10:05 pm

I was 60/40 at the beginning of the year.

I am now 80/20.

I may go to 100% equities by the end of the week. Just seeing what happens. I will then keep it at 100% for the next three years.
Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.

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

Post by Thesaints » Mon Mar 16, 2020 10:07 pm

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

1. Without quantifying your need/ability/willing to take risk and/or goals, what is your AA (Stock:Bond), given your age? and why?
Too bad one's AA is properly calculated precisely on the basis of goals and ability/willingness to take risk...

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

Post by rascott » Mon Mar 16, 2020 10:08 pm

39 and 100/0 with a decent tilt to US small caps (value and blend) .... and very underweight intl.

Portfolio looks like the set of a horror film set right now, but on we go. Plan was to buy more equities this year than ever before, and will be sticking to it.

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

Post by cos » 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).

3. I've stayed the course pretty well so far! I contribute weekly, the Monday after my paycheck, and rebalance at 15% absolute bands or quarterly, whichever comes first in a given quarter. I've actually been contributing a bit more than usual in an attempt to profit off the current downturn, sacrificing a cup of coffee or a beer here and there when I'm out with friends (this has been made even easier by the "social distancing" trend).

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

Post by mneumann » Mon Mar 16, 2020 10:31 pm

100-0 at age 37 outside of emergency fund and reducing expenses as possible during this time to push more into investments.

As a family we probably have some bonds as my wife likes to manage her own 401k funds and is in target 2050 funds, same age.

Dont expect to touch anything for the next 20+ years. Cant say I'm not watching and disappointed in balance but have no desire to change allocation, only to buy more.

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

Post by Bluce » Mon Mar 16, 2020 10:32 pm

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

1. Without quantifying your need/ability/willing to take risk and/or goals, 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'll be 70 in August and my AA has been 30/70 for several years now. Just to put things in focus, my PF will be my only retirement income aside from SS. The dynamics for investing are all different when one doesn't have a cushy pension to cover expenses.

I started scaling back on stocks when I was 56-57 and it has been a gradual slide since. I see no reason to change it even when I do retire -- which isn't on the horizon (self-employed).
"There are no new ideas, only forgotten ones." -- Amity Shlaes

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