All Stocks Until BLANK Years Before Retirement

[heybro]

So, anyone who is against all stocks, are you OK with all stocks until a certain period?  Or, you advocate some stocks always?

[RichMoose]

Really? Another stock vs. bond AA thread. Surely there's no more to say on this above what's already been said on:

http://forum.mrmoneymustache.com/investor-alley/the-case-against-100-stocks/
http://forum.mrmoneymustache.com/investor-alley/what-is-your-asset-allocation/
http://forum.mrmoneymustache.com/investor-alley/should-stockbond-and-not-intsmall-change-as-you-get-older/
http://forum.mrmoneymustache.com/investor-alley/suggestions-for-asset-allocation/
http://forum.mrmoneymustache.com/investor-alley/should-i-invest-now-and-worry-about-bonds-later/

And especially: http://forum.mrmoneymustache.com/investor-alley/asset-allocation-100-stocks-for-how-long/

[RapmasterD]

This is a great forum with some really super people. And so don't be offended when I offer up that I will trust NOBODY's guidance on here regarding what percentage of my portfolio to allocate to stocks.

Savings tips? Sure.

Frugality tips? Absolutely.

Great books to read? Tell me about 'em. Speaking of which, I'd suggest reading a few books on how to optimally allocate one's portfolio. Try Jonathan Clements, for one.

[Baron235]

This is a great forum with some really super people. And so don't be offended when I offer up that I will trust NOBODY's guidance on here regarding what percentage of my portfolio to allocate to stocks.

Savings tips? Sure.

Frugality tips? Absolutely.

Great books to read? Tell me about 'em. Speaking of which, I'd suggest reading a few books on how to optimally allocate one's portfolio. Try Jonathan Clements, for one.

Well since every piece of advice has basically been covered, you are going to end up following someone's advice from here sooner or later. 

[Cyrano]

If we're talking about early retirement, asset allocation rules of thumb meant for traditional retirement ages may not apply.

Zero: if the market tanks the day before I would have quit, my backup plan is remaining on the job, will be a reasonable answer for many would be early retirees, but a risky plan at age 65.

[FI40]

I think if you can stick to it, then the plan of making your first dollar 100% equities, then gradually increasing the bond allocation to say 50% by the time you hit your FI number is a good way to go.

[Bateaux]

I'm almost all stock mutual funds.   A few have some very limited bond holding.  I'm 46 and I hope to FIRE at 49 or 50.  I may stay till 50 just to have the 401k boosted another 5k for the make up.  My greatest hedge with a heavy stock portfolio is my job, all but recession proof.  I buy and hold, I'm not smart enough to time the market.   I can live really cheap in a downturn and once your balance is high enough downturns won't matter as much.

[fmzip]

For as long as you can provided you can accept losing 50% at any given time without feeling the need to jump off a ledge or vomit on a daily basis :)

[Daisy]

I'm almost all stock mutual funds.   A few have some very limited bond holding.  I'm 46 and I hope to FIRE at 49 or 50.  I may stay till 50 just to have the 401k boosted another 5k for the make up.  My greatest hedge with a heavy stock portfolio is my job, all but recession proof.  I buy and hold, I'm not smart enough to time the market.   I can live really cheap in a downturn and once your balance is high enough downturns won't matter as much.

I agree. I'm a similar age and have a similar FIRE target. While employed, my salary is like a bond payment. I also have a paid off house. The mortgage free "return" is also a bond payment. And I view Social Security as a bond as well.

So the rest of my stash is for capital growth. There's enough safety in those other things.

[tj]

I'm almost all stock mutual funds.   A few have some very limited bond holding.  I'm 46 and I hope to FIRE at 49 or 50.  I may stay till 50 just to have the 401k boosted another 5k for the make up.  My greatest hedge with a heavy stock portfolio is my job, all but recession proof.  I buy and hold, I'm not smart enough to time the market.   I can live really cheap in a downturn and once your balance is high enough downturns won't matter as much.

I agree. I'm a similar age and have a similar FIRE target. While employed, my salary is like a bond payment. I also have a paid off house. The mortgage free "return" is also a bond payment. And I view Social Security as a bond as well.

So the rest of my stash is for capital growth. There's enough safety in those other things.

So the risk is that if you get laid off during a down market, you'd have to liquidate stocks at a loss to balance out into bonds. Yes?

[Daisy]

I'm almost all stock mutual funds.   A few have some very limited bond holding.  I'm 46 and I hope to FIRE at 49 or 50.  I may stay till 50 just to have the 401k boosted another 5k for the make up.  My greatest hedge with a heavy stock portfolio is my job, all but recession proof.  I buy and hold, I'm not smart enough to time the market.   I can live really cheap in a downturn and once your balance is high enough downturns won't matter as much.

I agree. I'm a similar age and have a similar FIRE target. While employed, my salary is like a bond payment. I also have a paid off house. The mortgage free "return" is also a bond payment. And I view Social Security as a bond as well.

So the rest of my stash is for capital growth. There's enough safety in those other things.

So the risk is that if you get laid off during a down market, you'd have to liquidate stocks at a loss to balance out into bonds. Yes?

Well in my particular case I will get a nice severance package equalling about a year's worth of expenses if I get laid off. Count that as another bond!

I do also keep an emergency cash stash. So it's not 100% invested in stocks. I feel comfortable keeping some money in cash (maybe 6 months of expenses?) even while employed.

So the down market would have to last a while before it affects me.