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Author Topic: Re-mixing Retirement As You Age?  (Read 1025 times)

heybro

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Re-mixing Retirement As You Age?
« on: October 04, 2014, 01:29:02 AM »
Ok, I don't get it.

I know you are *supposed* to start out heavy in stocks and then gradually, as you retire, you are *supposed* to start moving money away from stocks and in to bonds or "cash."

1) What exactly does that look like?  For instance, if 10 years before retirement, your stocks are worth next to nothing (some big market crash), do you cut those loses and still move that money (or a percentage) to bonds/cash?  Or, do you keep it in stocks until they "rebound."  I guess I understand the over-all picture but I don't understand what that actually looks like.

For instance, if the stocks are worth nothing, you still keep buying them (I get that because you are buying them cheap and then selling once they rebound).  So also if stocks are soaring, you'd still want to start selling them off 10 years before retirement and move them in to cash/bonds, no?

2) So.......what do people like "us" do?  I can bet us financial independent people will not use the same advice fed to the masses.  For instance, if I own my own home well before retirement, and I'm only working "part time" because I don't need a job really, and I plan to always be working maybe 2 days a week even in retirement, and I have a ton of savings, and and and all these other bad A-S-S MMM things, then how does my plan change?  Do I just own stocks forever?  Never move to bonds?


GGNoob

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Re: Re-mixing Retirement As You Age?
« Reply #1 on: October 04, 2014, 07:26:30 AM »
I'll just stay 100% stocks for life and keep it simple! If I wasn't planning on 100% stocks, I would probably be more like 80% stocks and 20% bonds for life. I'd prefer a fixed allocation over constantly adjusting it as I near retirement. But that's just my opinion.