Author Topic: Good/bad idea to move some bonds to index funds right now?  (Read 1504 times)

Spondulix

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Good/bad idea to move some bonds to index funds right now?
« on: December 22, 2018, 01:21:59 AM »
I'm tempted to move some of my bonds into index funds in my retirement accounts. I'm 38 and playing catchup so pretty aggressive with my portfolio. The only reason I can think it's a bad idea is if this isn't market bottom. Even if it's the start of a bear market I'm looking long term (I don't reallocate very often). Any thoughts?

shuffler

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Re: Good/bad idea to move some bonds to index funds right now?
« Reply #1 on: December 22, 2018, 01:45:03 AM »
The only reason I can think it's a bad idea is if this isn't market bottom.
Any thoughts?
I think you can't time the market, no matter how much you want to play catchup.

smallstache

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Re: Good/bad idea to move some bonds to index funds right now?
« Reply #2 on: December 22, 2018, 04:16:04 AM »
Playing catch-up to what?

Follow your investment policy statement rather than chasing some ideal net worth number.

Brother Esau

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Re: Good/bad idea to move some bonds to index funds right now?
« Reply #3 on: December 22, 2018, 06:11:41 AM »
I'll be switching some $ from bond funds into stock funds pretty soon. Not to time the market though, just to rebalance to my target AA.

terran

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Re: Good/bad idea to move some bonds to index funds right now?
« Reply #4 on: December 22, 2018, 06:14:05 AM »
How does your current asset allocation compare to your desired asset allocation? If you're suggesting changing you desired asset allocation because of short term changes in the market then that sounds like market timing.

Spondulix

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Re: Good/bad idea to move some bonds to index funds right now?
« Reply #5 on: December 23, 2018, 12:09:43 AM »
Playing catch-up to what?

Follow your investment policy statement rather than chasing some ideal net worth number.
I wasn't able to seriously contribute to my retirement til I was 34 (I'll be 39 soon). That's what I mean by catchup.

Spondulix

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Re: Good/bad idea to move some bonds to index funds right now?
« Reply #6 on: December 23, 2018, 12:11:57 AM »
How does your current asset allocation compare to your desired asset allocation? If you're suggesting changing you desired asset allocation because of short term changes in the market then that sounds like market timing.
Yeah this is exactly why I'm asking... with the market drop it makes my bond allocation higher than desired so I could adjust based on that. At the same time, the reason this situation exists is because of short term changes...

soccerluvof4

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Re: Good/bad idea to move some bonds to index funds right now?
« Reply #7 on: December 23, 2018, 10:59:12 AM »
I did the very thing your thinking about doing on Friday.