Comments on: Changing Our Retirement Asset Allocation

By: Jim Peluso

Jim Peluso — Mon, 23 Aug 2010 14:23:24 +0000

I realize that protecting assets especially in retirement is important. There are always clouds on the horizon. Restructuring your portfolio because you have too much exposure to commercial real estate makes sense or because you want to simplify your portfolio. Doing it because of “fear” of the future probably means that the portfolio was too risky for you. We are all terrible at predicting the future and are too motivated by either fear or greed. I have found it best to be somewhat conservative and then stay the course.

Having 4+ years worth of expenses in CD’s seems to provide enough to keep me calm. To be truthful in late 2008 I pulled all my 401k out and put it in a Treasury money mkt fund and then dollar cost averaged back into stock/bond funds. So I am not immune from fear.

By: Another Reader

Another Reader — Wed, 21 Jul 2010 19:35:26 +0000

Maybe you have already done this, but would you share the allocations in your IRA’s and in your taxable accounts? It would be helpful to understand which assets you keep in tax deferred accounts, which in tax-free (Roth) accounts, and which are in the taxable accounts plus your reasoning behind the allocation.

In addition, the safer government-backed investments seem difficult to purchase in IRA accounts. I buy I-bonds and TIP’s in a taxable account through Treasury Direct and have no difficulty laddering CD’s in taxable accounts. Finding competitive yields on CD’s in IRA accounts is more difficult, and I can’t figure out how to buy individual I-bonds and TIP’s.

By: Jan

Jan — Tue, 20 Jul 2010 21:17:10 +0000

Although I agree with getting out of mutual funds (something I did just before the great recession started). I finally figured out when they were falling, I had no recourse!!!!
I am not as pessimistic about a double dip. I think we are in for a roller coaster ride of a market. I am not interested in REITS because I believe that real estate has not seen a bottom yet- commercial or residential. As property taxes go up (as mine did again TODAY) people will be less likely to choose to buy.
Currently, we are quarter in the market- all with stock picks all over the sectors. We bought at the bottom (7000-gosh I love my FORD). Another quarter is in conservative bonds or cash. I am thinking I- Bonds are the way to go for future. I don’t anticipate needing the stock money for many years and will continue to rid myself of losers and try again. I am totally into DRIPS.
Our last half is in our house. That was not a good investment- since we bought at the top and I doubt it will ever be there again. We love it here and if the world goes to chaos tomorrow- we have plenty of land and animals to keep our family for many years. Call is our LDS background:>)
If we should sell, I anticipate we will gain enough to help the portfolio to our deaths.
My husband brings in a modest pension- so while he is with me on the earth- life is good.