Author Topic: Pandemic Dry Powder Planning  (Read 935 times)

Retireatee1

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Pandemic Dry Powder Planning
« on: March 15, 2020, 11:02:57 AM »
I'm in my late 40's and have a plausible FIRE date a few years out.  In the years prior to the market slide, I had paid off the mortgage and moved into a conservative 60% equity / 40% bonds position with my remaining portfolio.  Now the ratio is skewed a bit to 55/45.  My plan, starting last week, is to move 1% a week from bonds into equities for a total of 5 weeks.  At that point I will reevaluate.  I may want to continue to move into a more aggressive ratio at that point.

The effects of moves made during volatile markets will be amplified in the years to come, for better or worse.

For those with (or without) dry powder to burn, I welcome your strategic thoughts.

dividendman

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Re: Pandemic Dry Powder Planning
« Reply #1 on: March 15, 2020, 11:20:31 AM »
I also have "dry power" with my ~20% BND allocation, but I think it's a fools errand to time the market. My next rebalance date is in August so we'll see what it's like then and rebalance if needed.

My advice is to pick when to rebalance in advance and just do it so emotions don't sway you to incorrect decisions.

Retireatee1

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Re: Pandemic Dry Powder Planning
« Reply #2 on: March 15, 2020, 11:41:02 AM »
Well this strategy has elements of both market timing and dollar-cost averaging (which is the opposite of market timing).

I will also continue maxing out my 401K contributions as well.  That is straight-up dollar-cost averaging.