The Calm Post - Stay the course thread.

[gunny]

I'd feel a lot better about 2025 so far and things potentially getting worse before they get better if I was still dollar-cost averaging...

[protagonist]

Money I need for retirement is in TIPS.
I'm not very rich, and I'm losing a lot in the stock market, but I can still sleep well at night, even if things don't get better and keep getting worse (which they certainly could).

[Blues]

Money I need for retirement is in TIPS.
I'm losing a lot in the stock market, but I can still sleep well at night, even if things don't get better.

We have some in ST TIPS funds, and more in ST Treasury and TSP G funds. Having our equity exposure below 40% keeps us from fretting too much about the market's gyrations. We try to follow the advice of Bernstein and Swedroe for the most part.

[EnjoyIt]

Money I need for retirement is in TIPS.
I'm not very rich, and I'm losing a lot in the stock market, but I can still sleep well at night, even if things don't get better and keep getting worse (which they certainly could).

Corrections and recessions happen. There is nothing special going on here. You are wise to have an asset allocation that takes this into account.

[Elric]

We have some in ST TIPS funds, and more in ST Treasury and TSP G funds. Having our equity exposure below 40% keeps us from fretting too much about the market's gyrations. We try to follow the advice of Bernstein and Swedroe for the most part.

Interesting. We pulled almost all our funds out of TSP, including the G fund (left just enough so that we could go back in the future). It will probably be perfectly OK, but with unprecedented actions being taken by the current administration, and the borrowing that routinely occurs from the G fund during debt ceiling times, even in normal times, we felt it better and safer to take it out. We kept our overall asset allocation (stocks / bonds / alts / emergency fund) the same.

[Blues]

We have some in ST TIPS funds, and more in ST Treasury and TSP G funds. Having our equity exposure below 40% keeps us from fretting too much about the market's gyrations. We try to follow the advice of Bernstein and Swedroe for the most part.

Interesting. We pulled almost all our funds out of TSP, including the G fund (left just enough so that we could go back in the future). It will probably be perfectly OK, but with unprecedented actions being taken by the current administration, and the borrowing that routinely occurs from the G fund during debt ceiling times, even in normal times, we felt it better and safer to take it out. We kept our overall asset allocation (stocks / bonds / alts / emergency fund) the same.

I can understand the action re: G Fund. But for us, the upside is that it isn't taxable by my state, whereas if I transfer it, it will lose that protection. So, I'm staying put. (We've been retired since I turned 51...21 years ago.)

I just started taking RMDs from the G fund in January.

[Kinkajou82]

My IPS doesn't have a "fun money" category for speculation/high risk, but I've honestly thought once or twice in recent days about throwing some at crypto for a longterm buy-and-hold strategy... except I've come to the conclusion that:

1. I don't understand the trading costs and taxation and quirks of crypto enough yet to feel safe even dipping my toes in right now
2. There's no convenient low cost index fund for crypto, so I'd have to make some picks which I honestly am now that interested in doing. I guess I could try self-indexing but then again that's getting complicated fast, especially regarding point number 1.

So ultimately, until I learn more about it and gain some understanding I can trust, I'm following the "don't just do something, stand there!" tenet.

[Pete12]

I am thrilled! It’s that time of the year when I do my mega back door Roth through my solo 401(k) plan. I have a nice chunk of cash going into total stock market this week. Feels great to pick up a bargain!

[EnjoyIt]

My IPS doesn't have a "fun money" category for speculation/high risk, but I've honestly thought once or twice in recent days about throwing some at crypto for a longterm buy-and-hold strategy... except I've come to the conclusion that:

1. I don't understand the trading costs and taxation and quirks of crypto enough yet to feel safe even dipping my toes in right now
2. There's no convenient low cost index fund for crypto, so I'd have to make some picks which I honestly am now that interested in doing. I guess I could try self-indexing but then again that's getting complicated fast, especially regarding point number 1.

So ultimately, until I learn more about it and gain some understanding I can trust, I'm following the "don't just do something, stand there!" tenet.

discussion about crypto is not permitted on this forum. I personally don't believe in their longevity, but there are other forums and resources out there for people who do.

[Lawrence of Suburbia]

I wouldn't say I'm a poster boy for "stay(ing) the course" ... I'm retired and a nervous Nelly for sure, about everything in life, not just financial stuff. Since my first "Am I doing OK" thread when I was newly-retired a few years ago 'til now, I've done a couple of major fund reshuffles (and none of them into the Boglehead 3-fund configuration). Only about 1/4 of my investments are indexed (Vanguard Target 2025 in my 401K, which is sort of indexed). Most recently I traded Vanguard Wellesley for Global Wellington, to get my stock allocation up and a bit more international exposure. But that was only ~28% of my total. It's my conviction that the tear U.S. stocks have been on might falter, due to [political content removed]. International will have its' day (RAH RAH RAH)!

What I haven't ever done is sell everything and gone to cash. I learned my lesson in early 2009, still working, when I did go to cash with about $100K of my money -- right at the bottom. Fortunately it was only about 1/3 of my total, and a short while later I got back in. Lesson learned, hopefully.

Apart from about 1-2 years' net expenses I keep in the money market, I'm "fully invested" in a portfolio that wobbles around 50/50 stocks/bonds. Mostly active funds, to be sure; I keep looking over my shoulder for the ghost of Mr. Bogle giving me a disapproving look!

[Tycoon]

The sun is shining, birds are chirping, and there are behavioural actions to exploit. Life is grand!

[ER2023]

We are retiring in two months and staying the course. Our AA was always around 50/50 (our SWAN). We put about ten years of expenses in a CD ladder so we can choose how to do our withdrawals. Empower would not let us choose which fund to withdraw from - if we request a withdrawal, they pull it from both funds (stable and VTSAX) equally. So we then moved it over to a VG IRA and created the CD ladder. It works well for the jitters.

[StartedAt22]

If anybody needed more cynical and derogatory encouragement to stay the course --- well here it is.

You're too stupid to have an edge in stocks. Invest in the three fund portfolio and thank me later.

I myself have made heaps of money by acknowledging I am, in fact, too stupid to be an excellent investor. I am, however, just smart enough to be an above-average investor.

Stay the course!!!

[rockstar]

The correction seems to be over. Long live equites.

Of course, it’ll tank tomorrow, right?

[YoungHopper]

If anybody needed more cynical and derogatory encouragement to stay the course --- well here it is.

You're too stupid to have an edge in stocks. Invest in the three fund portfolio and thank me later.

I myself have made heaps of money by acknowledging I am, in fact, too stupid to be an excellent investor. I am, however, just smart enough to be an above-average investor.

Stay the course!!!

In the years since 2020, I've realized I simply don't have the stomach for active trading or following the markets and news daily.

Staying the course is so much more peaceful.

[Lawrence of Suburbia]

The sun is shining, birds are chirping, and there are behavioural actions to exploit. Life is grand!

"Dear Prudence" ...

I live near Seattle; but at least the birds are chirping.

[UpperNwGuy]

Why would anyone not stay the course?

[TwstdSista]

This was a fun read! (especially in retrospect)

We'll just keep calmly buying on our regular schedule every month. Nothing to see here folks!

[simpletone]

I’m calmly staying the course, no changes here or trying to time the market. If my AA reaches a certain % point out of balance, I will assess tax efficient AA rebalancing options. I’m nowhere near that % at the moment, and all is driven by my IPS.

Much gratitude to this forum and BH for this peace of mind.

[luminous]

I’m calmly staying the course, no changes here or trying to time the market. If my AA reaches a certain % point out of balance, I will assess tax efficient AA rebalancing options. I’m nowhere near that % at the moment, and all is driven by my IPS.

Much gratitude to this forum and BH for this peace of mind.

Here here!

[hoops777]

Stay the course. The course the course the course.
It will be interesting what happens to the course when the new management brings in all the earth moving machines, rips it up and attempts to change it drastically.
The fun has just begun, but no worries if you you are retired and don’t really need stocks.

[Breezy]

We are retiring in two months and staying the course. Our AA was always around 50/50 (our SWAN). We put about ten years of expenses in a CD ladder so we can choose how to do our withdrawals. Empower would not let us choose which fund to withdraw from - if we request a withdrawal, they pull it from both funds (stable and VTSAX) equally. So we then moved it over to a VG IRA and created the CD ladder. It works well for the jitters.

Can you share how you built the CD ladder for a 10-year period? Equal amounts in each of 10 years or ...?

[ER2023]

We are retiring in two months and staying the course. Our AA was always around 50/50 (our SWAN). We put about ten years of expenses in a CD ladder so we can choose how to do our withdrawals. Empower would not let us choose which fund to withdraw from - if we request a withdrawal, they pull it from both funds (stable and VTSAX) equally. So we then moved it over to a VG IRA and created the CD ladder. It works well for the jitters.

Can you share how you built the CD ladder for a 10-year period? Equal amounts in each of 10 years or ...?

I decided to purchase non-callable CDs in my IRA to have the assurance of the guaranteed return for my stable projections. Two things to know - first, you have to check to see the CD availability and determine how to build it out so each year you have enough for your annual expenses. For example, right now I see VG has non-callable CDs years 1 through 5, year 7, and then year 10 (this can change). So you can buy more 5-year CDs to get you to year 7 and then more 7 year CDs to get you to 10 years. So when one of my 5 year CDs matures, but it’s for year 6, I can decide how to invest that for one more year - but whatever it yields is not even calculated into my projections.

So each CD that comes due covers my annual expenses plus a little more for inflation, not including large expenses (e.g., septic, appliances, roof, cars, HVAC). I keep that in separate account.

The second thing to know is that it will pay simple interest, not compound interest. Some of my CDs will pay out the full interest at maturity, others are paid out twice a year, and others are paid every month. So right now for example, I get interest paid out monthly on three CDs and keep it in VMFXX earning ~4+%. Again, this is gravy so if the rate falls, it won’t impact what I must have to cover expenses.

This decision was based on the guaranteed return and assurance I would have my annual expenses covered with 10 years in stable, as well as the flexibility of being able to withdraw from stable or VTSAX (or both) depending on the market. You might decide you don’t need to do this for 10 years of expenses, but this is my SWAN figure.