During accumulation, I would rebalance. In my first years of retirement, probably not. The cash is there for safety, to pay bills.So you wouldn’t rebalance your portfolio back to 60/40 after a drop? What’s the logic here? The way I see it is that you’re not willing to buy stocks when they’re much cheaper.
A 60/40 portfolio would only drop to $700,000 ($300,000/$400,000), AND you could pull the $40,000 from the bond side while waiting for stocks to recover. 5 years in, you'd be at $500,000 ($300,000/$200,000), and when the market came back and went up 100%, you would fully recover on the stock side, and be back at $800,000.
Statistics: Posted by HomerJ — Wed Jul 10, 2024 10:58 am — Replies 72 — Views 4867