Since your expense are mostly covered by ss and pension, you really don't need much from your portfolio. Let's say you only withdraw 1-2% per year, you could have just about any allocation. You are 75 and is probably already set for life, do you want to make more money for your heirs or just want to play it safe so you have a quiet retirement? If the stock market shoots up, are you going to wish you have more stock or if the stock market crash badly, are you going to regret not being too conservative?
Personally, my rebalance plan is usually to rebalance after a particular percentage is exceeded and not by time. This is because sometimes your portfolio is off 1% or so and is not worth the effort of rebalancing. I don't like to market time becaue for most people this is just timing by sentiment. When people rebalance, they are selling a higher returning asset and buying a lower returning asset or sell high/buy low. Most people who time tend to do the reverse. They see the market go up and buy more and do the reverse when it falls.
Personally, my rebalance plan is usually to rebalance after a particular percentage is exceeded and not by time. This is because sometimes your portfolio is off 1% or so and is not worth the effort of rebalancing. I don't like to market time becaue for most people this is just timing by sentiment. When people rebalance, they are selling a higher returning asset and buying a lower returning asset or sell high/buy low. Most people who time tend to do the reverse. They see the market go up and buy more and do the reverse when it falls.
Statistics: Posted by gavinsiu — Wed Jun 19, 2024 11:00 pm — Replies 17 — Views 978
