Ya honestly thats the best way I can put it. I'm pretty new to investing and have been 100% S&P500 index fund. Age 51, goal is to be Lean lean lean lean FI in 5-6 years, and probably work at least part time for as long(or short) as we want beyond that.
The reason I'm bringing this up is
@Dicey has this REAAALLLLY long 2x4 and can apparently reach me from anywhere and bonk me over the head to help get me thinking straight. I was thinking of paying down my mortgage aggressively but have decided to rather funnel all cash into my AA. Since my AA allocation is 100% equities, I decided to make sure I'm on the right path. Everything I see from the sources I trust the most(here, Bogleheads, Moneyguy, etc) suggest a stock/bond mix.
Bond funds: They suck this year. They suck for 2 years. And 3. And 5. And 10. If I had held bond funds for the past ten years, it would make me wish I hadn't when I could have been all FXAIX. I'm really struggling with this....even though I know that historically, over longer terms, its been good to hold a mixture of stocks and bonds. We also hold dear to the fact that past performance does not guarantee future returns!! Maybe the world has changed and bonds will suck from now on???
Anyway, I see that with rate increases perhaps approaching a slowing, bond funds may turn the corner. Since I probably *should* have a bond allocation, maybe I'm lucky that this could be a great time to buy bond funds. Owning individual bonds seems like a WAY bigger PITA than I'd want to mess with as I invest weekly, and will continue to do so over quite a few years.
So today, I rebalance one of my 401k's from 100% FXAIX to 80/20 with the 20 going into FXNAX which is available in both of our current 401k's. If I determent with confidence that this is the smart and reasonable thing to do, I'll rebalance all retirement accounts in this way.
Thoughts are welcome.