I'm somewhat of a market timer. I try to sell when things are high, and buy when things are low.
In my mind I am rebalancing, and I think that is what I'm doing, but could be wrong!
I have rough AA percentages I try to stay between. But I also have dollar amounts I try to say in between. It could probably be automated but I have not figured out how to do that yet.
I'm in that awkward phase. Waiting to collect SS. Which I hope will still be there.
Some years I do nothing. This year I sold stocks three times. It was a good year for stocks. Yes, I lost potential revenue by doing that, but I also reduced potential losses. And, I have more money in the "bank." My current "rule" is if stocks go up by more than 3% I sell some. If they go down by more than 20% I buy some. Otherwise I just go along for the ride.
Bill Bengen's original research was ground breaking. It is old, but still useful.
Uncontrolled inflation could be deadly to any plan. Inflation is beyond my control.
The 4% guideline works for a 30 year retirement if your average real return is about 1.6%. Not an unreasonable number. If you assume 0% real return, your money will only last 25 years.
We can not control either nominal or real (inflation adjusted) returns. The only thing we can really control is spending. Spend less than your earn. Keep a balance in case you need it. I'm still trying to figure out what that balance should be.
In my mind I am rebalancing, and I think that is what I'm doing, but could be wrong!
I have rough AA percentages I try to stay between. But I also have dollar amounts I try to say in between. It could probably be automated but I have not figured out how to do that yet.
I'm in that awkward phase. Waiting to collect SS. Which I hope will still be there.
Some years I do nothing. This year I sold stocks three times. It was a good year for stocks. Yes, I lost potential revenue by doing that, but I also reduced potential losses. And, I have more money in the "bank." My current "rule" is if stocks go up by more than 3% I sell some. If they go down by more than 20% I buy some. Otherwise I just go along for the ride.
Bill Bengen's original research was ground breaking. It is old, but still useful.
Uncontrolled inflation could be deadly to any plan. Inflation is beyond my control.
The 4% guideline works for a 30 year retirement if your average real return is about 1.6%. Not an unreasonable number. If you assume 0% real return, your money will only last 25 years.
We can not control either nominal or real (inflation adjusted) returns. The only thing we can really control is spending. Spend less than your earn. Keep a balance in case you need it. I'm still trying to figure out what that balance should be.
Statistics: Posted by dknightd — Wed Dec 11, 2024 8:04 am — Replies 124 — Views 8515
