Buy and hold. Adjust or re balance occaisonally Be diversified, individual stocks, mutual funds, bonds and cash. I’m sure glad to have been fully invested the past couple years. Will there be a correction in the future, absolutely. Maybe next week, maybe three years from now. None of us are smart enough to predict that. And I’ve been using a investment firm for 25 years, without a doubt they have helped my financial situation, a lot.
4 years into retirement , bought Vanguard index funds through 457 & 401 , got used to living on less, so retirement income is the same, not drawing any money yet , 70% index 30% bonds, letting it ride. Bought and held from when I was a 25 YO, till now and the future see no reason to change now.
Aggressive approach,
At 70/30 most traditional thinking says your ratios should be inverted for your age,
Damn the torpedoes, full speed ahead.
We think alike, but that strategy raises questions at times, like last December.
Yep. My Dad (love him I do) was 70/30 or more with a lot of cash overseas when the market flipped on him. He lost 50% of his money in two weeks after he was already retired. He never got it back. It about killed him.
The market will go some more. Maybe 5% to 10%. That'll be Dow at 28,500+. About then sometime the primaries will start, uncertainty will settle in, and the marekt will suffer. That or billionaire Dems will do what they can to shake the market up with CNN horror stories about the economy or whatever in an effort to garner votes by scaring people. In any case, the market will suffer.
I'm 60 years old next month. I think at Dow 27,500 I'm going from my current 60/40 to 30/70. Heck, I might even just go with a 2.5% Money Market fund with the whole mess since 2.5% is aout what a 30/70 "balance" fund will get you even in a decent market. I don't think being risk averse this near retirement is a bad plan for a guy with no debt. All I need to do is continue save at my current rate while not loosing any in the market, then retire at 65 and suck up my SS bennies.
