While I cannot comment on whether it was a ‘good move’, I would say it is a move that doesn’t make any logical sense, at least not that you have explained here. Your ‘three bucket’ approach that appears to have only ‘two’ categories similarly does not make sense. Additionally mixing account types in the buckets is not coherent either. I suggest you sit and read and take time to figure out what you really want to (should) do for your AA.
While psychologically difficult, buying back into stocks at your target % is identical to having stayed in the market minus the equity return premium over t-bills during the period you were out of stocks completely.
While psychologically difficult, buying back into stocks at your target % is identical to having stayed in the market minus the equity return premium over t-bills during the period you were out of stocks completely.
Always learning. Looking for your opinion. Before retirement I made a couple of financial moves. I converted all my stocks to Short-Term Treasury Bills. Then I started buying stocks again. Now that I have been retired for a few years, I realized maybe that was not a good move. I am now 95% Short-Term Treasury Bills and 5% Stocks in Traditional and Roth IRA accounts. In the three bucket strategy I look at my 401(K) as the third bucket; no need to touch it. Is this a good mindset? My other investments are all stocks; two in Roth IRAs, and others mostly in taxable accounts. Is it necessary to rebalance the 401(K)? I don't think I should do it, but that little voice in my head is telling me something needs to be done. During the rebalance, I am aware that there wouldn't be much of a tax issues but, I would be buying stocks at their 52 week high. That goes against 'buy low...sell high. Agree or disagree? Your views are welcome.
Statistics: Posted by edge — Sun Jul 14, 2024 6:12 am