What is your game plan as market is reaching its previous all time high?

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flyingaway
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What is your game plan as market is reaching its previous all time high?

Post by flyingaway »

For me, I'm going to do a rebalance, probably a little bit larger than normally planned, slightly before the market reaches the previous all time high.

Background: 56, FI achieved, wants to maintain asset allocation between 70/30 and 60/40.

What is your game plan?
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tooluser
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Re: What is your game plan as market is reaching its previous all time high?

Post by tooluser »

Keep doing what I'm doing. A significant pullback, while disheartening in the short term, will not ruin my plans. If a pullback stays around a while, I am flexible enough to keep going. If the upward movement keeps going (Excelsior!) I may reach my goal sooner.

Excelsior, by Henry Wadsworth Longfellow: (it's short!)
https://www.poetryfoundation.org/poems/ ... 223cb4e6fa
Hmm. :(
runner3081
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Re: What is your game plan as market is reaching its previous all time high?

Post by runner3081 »

Continue doing what we have been doing for the past 10+ years. Monthly investing to meet our AA.
Monsterflockster
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Re: What is your game plan as market is reaching its previous all time high?

Post by Monsterflockster »

flyingaway wrote: Wed Jul 22, 2020 6:27 pm For me, I'm going to do a rebalance, probably a little bit larger than normally planned, slightly before the market reaches the previous all time high.

Background: 56, FI achieved, wants to maintain asset allocation between 70/30 and 60/40.

What is your game plan?
No changes. I got 20-25 years before I retire. There will be a few other bumps, bruises and catastrophes along the way I’m sure.
Explorer
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Re: What is your game plan as market is reaching its previous all time high?

Post by Explorer »

Stay with the force! Or should I say "Stay the course!"
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arcticpineapplecorp.
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Re: What is your game plan as market is reaching its previous all time high?

Post by arcticpineapplecorp. »

there's nothing wrong with rebalancing if that's what your IPS tells you to do. do you have an IPS? If not: https://www.bogleheads.org/wiki/Investm ... _statement

everyone should be following their IPS, not "doing something" just because the market's close to its previous high.

The question smacks of market timing, which makes me think, "how do I know the market won't reach a new high?" I don't.

The answer to all market timing questions (rebalancing not withstanding):

Q: When do I buy?
A: When you have the money.

Q: When do I sell?
A: When you need the money.

pretty simple. You don't need to ask, "What are you doing when X happens?"
It's "Stay" the course, not Stray the Course. Buy and Hold works. You should really try it sometime. Get a plan: www.bogleheads.org/wiki/Investment_policy_statement
livesoft
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Re: What is your game plan as market is reaching its previous all time high?

Post by livesoft »

The ol' same same ol'.
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Afty
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Re: What is your game plan as market is reaching its previous all time high?

Post by Afty »

I plan to do nothing.
milktoast
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Re: What is your game plan as market is reaching its previous all time high?

Post by milktoast »

TL;DR - I'm mostly buying bonds with new contributions and when we reach new highs, it will likely trigger a rebalance trade.

My plan calls for not buying bonds when SP500 is in correction, shifting target AA towards stocks every time I reach a point where my plan calls for shifting more contributions towards bonds.

So during the downturn, I rebalanced from bonds into stocks in order to maintain 70/30. Then during the recovery from the SP500 from low to 3050, I shifted target balance to 76/24.

If SP500 reaches new highs, I'll shift from 76/24 back towards 70/30 at a rate of 1% per month. If it turns down before then, I'll maintain 76/24 on the way down and shift more towards stocks during the next recovery.

Right now, we are hanging out between correction and prior highs, so roughly 2/3 of my contributions are being spent on bonds trying to bring me from current 77/23 back to 76/24.

PS. Yes, this is anchoring. And yes, it's not recommended. But it's my plan and I've stuck with it so far.
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Re: What is your game plan as market is reaching its previous all time high?

Post by radiowave »

What is your game plan as market is reaching its previous all time high?
Follow my IPS as I always do. Stock high has no bearing, I've got a good plan in place will rebalance when I reach my band limits.
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TheDDC
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Re: What is your game plan as market is reaching its previous all time high?

Post by TheDDC »

flyingaway wrote: Wed Jul 22, 2020 6:27 pm For me, I'm going to do a rebalance, probably a little bit larger than normally planned, slightly before the market reaches the previous all time high.

Background: 56, FI achieved, wants to maintain asset allocation between 70/30 and 60/40.

What is your game plan?
I have no need to rebalance as my long term retirement assets are all 100/0. I plan to continue to accumulate for life!

-TheDDC
Rules to wealth building: 75-80% VTSAX piled high and deep, 20-25% VTIAX, 0% given away to banks, minimize amount given to medical-industrial complex
SimplicityNow
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Re: What is your game plan as market is reaching its previous all time high?

Post by SimplicityNow »

I'm just going to stand there and do nothing. Unless I reach the rebalancing bands in my IPS.
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ruralavalon
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Re: What is your game plan as market is reaching its previous all time high?

Post by ruralavalon »

flyingaway wrote: Wed Jul 22, 2020 6:27 pm For me, I'm going to do a rebalance, probably a little bit larger than normally planned, slightly before the market reaches the previous all time high.

Background: 56, FI achieved, wants to maintain asset allocation between 70/30 and 60/40.

What is your game plan?
We may rebalance soon, selling some stock index fund to buy more of our bond index fund, because we just reached our rebalancing band.
Last edited by ruralavalon on Wed Jul 22, 2020 8:01 pm, edited 1 time in total.
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Re: What is your game plan as market is reaching its previous all time high?

Post by sailaway »

Ask again in December, that is when we do our next snapshot.
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Re: What is your game plan as market is reaching its previous all time high?

Post by Trader Joe »

flyingaway wrote: Wed Jul 22, 2020 6:27 pm For me, I'm going to do a rebalance, probably a little bit larger than normally planned, slightly before the market reaches the previous all time high.

Background: 56, FI achieved, wants to maintain asset allocation between 70/30 and 60/40.

What is your game plan?
No change here at all. Buying VFIAX/VTSAX every single week like clockwork.
mortfree
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Re: What is your game plan as market is reaching its previous all time high?

Post by mortfree »

I just noticed I have 10 shares of BRKB that have a small loss (-100) so I might sell them for tax purposes and to use towards a home project.
youngpleb
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Re: What is your game plan as market is reaching its previous all time high?

Post by youngpleb »

Continue to divert new capital towards the further accumulation of equities :mrgreen:
cdc
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Re: What is your game plan as market is reaching its previous all time high?

Post by cdc »

I cut my equity allocation from 60 to 50 last week due to this year’s volatility. I’m 59.
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TheTimeLord
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Re: What is your game plan as market is reaching its previous all time high?

Post by TheTimeLord »

Interesting question that I hadn't thought about. Now that I do, I have a wild idea rolling around in my head but I doubt I will do it. So I guess as of now no plan, too busy thinking about what repositioning I need to do the rest of this week.
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AerialWombat
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Re: What is your game plan as market is reaching its previous all time high?

Post by AerialWombat »

I’m going to shop this loan estimate around until I get a better offer on my refi. That’s what I’m doing with my portfolio (aka, nothing).
For entertainment purposes only.
UpperNwGuy
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Re: What is your game plan as market is reaching its previous all time high?

Post by UpperNwGuy »

I don't understand the question. I will continue to invest a fixed amount on the first of each month as I have been doing all along. Why would I have a "game plan" just because the market has reached a high? The market has reached quite a number of highs since I've been investing, and there was no need to change course.
Last edited by UpperNwGuy on Wed Jul 22, 2020 8:22 pm, edited 1 time in total.
jarjarM
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Re: What is your game plan as market is reaching its previous all time high?

Post by jarjarM »

SQQQ to hedge the downside :twisted: :P
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BrandonBogle
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Re: What is your game plan as market is reaching its previous all time high?

Post by BrandonBogle »

AerialWombat wrote: Wed Jul 22, 2020 8:18 pm I’m going to shop this loan estimate around until I get a better offer on my refi. That’s what I’m doing with my portfolio (aka, nothing).
:sharebeer
rockstar
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Re: What is your game plan as market is reaching its previous all time high?

Post by rockstar »

I can't predict tops. I'm not changing what I'm doing.
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Toons
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Re: What is your game plan as market is reaching its previous all time high?

Post by Toons »

Tending to the portfolio as I would a cactus.
As usual


:mrgreen:
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Re: What is your game plan as market is reaching its previous all time high?

Post by Vanguard Fan 1367 »

flyingaway wrote: Wed Jul 22, 2020 6:27 pm For me, I'm going to do a rebalance, probably a little bit larger than normally planned, slightly before the market reaches the previous all time high.

Background: 56, FI achieved, wants to maintain asset allocation between 70/30 and 60/40.

What is your game plan?
With bond rates in the toilet I am at roughly 70/30. I would like to be 60/40 or 50/50 but bonds really stink right now.
John Bogle: "It's amazing how difficult it is for a man to understand something if he's paid a small fortune not to understand it."
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Re: What is your game plan as market is reaching its previous all time high?

Post by retire2022 »

flyingaway wrote: Wed Jul 22, 2020 6:27 pm For me, I'm going to do a rebalance, probably a little bit larger than normally planned, slightly before the market reaches the previous all time high.

Background: 56, FI achieved, wants to maintain asset allocation between 70/30 and 60/40.

What is your game plan?
Flyingaway, I just turned 60, my 89 year old mother just passed away in late march, not of Covid, as a result life too short.

I am planning to retire sometime by the end of the year.

I am planning to sell my entire 1.2 million 457 plan portfolio, as soon as I reach my number on which was at all time high Feb 21, 2020.

I am as of today 64K short.


Edit changed my mind, sold VSEQX (ROTH IRA) to VGT and Wellington 457 to SP500, up 2 million club.

I will be able to transfer my assets to Vanguard as soon as I am able to. Legally the plan only allows for transfers once retired, or no longer employed by my job.

I have my Roth IRA, Inherited Traditional IRA and other funds all at Vanguard approx 500K.

I've won the game, and will reinvest once all my funds are at Vanguard. I look forward to be Flagship status, not that it means much.

It don't matter to me that the market will go higher, being on the job for 34 years, pension and social security at FRA I will be ok.
Last edited by retire2022 on Tue Sep 01, 2020 8:57 pm, edited 1 time in total.
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flyingaway
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Re: What is your game plan as market is reaching its previous all time high?

Post by flyingaway »

retire2022 wrote: Wed Jul 22, 2020 9:16 pm
flyingaway wrote: Wed Jul 22, 2020 6:27 pm For me, I'm going to do a rebalance, probably a little bit larger than normally planned, slightly before the market reaches the previous all time high.

Background: 56, FI achieved, wants to maintain asset allocation between 70/30 and 60/40.

What is your game plan?
Flyingaway, I just turned 60, my 89 year old mother just passed away in late march, not of Covid, as a result life too short.

I am planning to retire sometime by the end of the year.

I am planning to sell my entire 1.2 million 457 plan portfolio, as soon as I reach my number on which was at all time high Feb 21, 2020.

I am as of today 64K short.

I will be able to transfer my assets to Vanguard as soon as I am able to. Legally the plan only allows for transfers once retired, or no longer employed by my job.

I have my Roth IRA, Inherited Traditional IRA and other funds all at Vanguard approx 500K.

I've won the game, and will reinvest once all my funds are at Vanguard. I look forward to be Flagship status, not that it means much.

It don't matter to me that the market will go higher, being on the job for 34 years, pension and social security at FRA I will be ok.
Good luck!
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Re: What is your game plan as market is reaching its previous all time high?

Post by Broken Man 1999 »

So far as my portfolio, I don't believe I would do anything except rebalance.

But if Mr Market climbs to an all-time high that is substantially higher than the last all-time high, I might engage in a mini-orgy of spending, doing a few home projects.

Broken Man 1999
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HomerJ
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Re: What is your game plan as market is reaching its previous all time high?

Post by HomerJ »

I'm 45/55... changed from 50/50 back in January (purely because I'm now 2-4 years from retirement, had no idea what was going to happen).

I check our money on the 1st of every month.

I don't rebalance on the down side (wish I had in March! I'd be retired today probably - but I'm about reducing risk, not maximizing gains)

I do rebalance on the upside... Last time I checked at the beginning of July, I was 43/57, so no reason to do anything.

I'm guessing at the end of July, I might be back to 45/55... maybe 46/54...

In any case, I won't do anything until I'm 50/50 again, at which point I'll rebalance to 45/55.

It's really that simple.
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Re: What is your game plan as market is reaching its previous all time high?

Post by Wanderingwheelz »

cdc wrote: Wed Jul 22, 2020 8:04 pm I cut my equity allocation from 60 to 50 last week due to this year’s volatility. I’m 59.
I’m going to go from 60 to 55 soon, assuming the market advances further. I’m 49.

Not a market timing decision, since we planned to tone things down at a certain asset level. And here we are. One hell of a lot quicker than we ever thought.
3 Fund Portfolio. 70%/30% AA. No mortgage. Simple.
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Re: What is your game plan as market is reaching its previous all time high?

Post by grabiner »

Check whether I need to rebalance. I have enough new money to invest that I have to check my allocation anyway to see where it goes, and since I had to rebalance into stock at the March bottom, I'll probably have to rebalance back if we are past the February peak. (I haven't been buying much more stock; I have bought some, but donated about the same amount to charity.)
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Re: What is your game plan as market is reaching its previous all time high?

Post by novemberrain »

I am at 100% VTSAX; but with the nagging feeling that I am making a big mistake by not reducing the stock percentage. I am 40.
gubernaculum
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Re: What is your game plan as market is reaching its previous all time high?

Post by gubernaculum »

keep investing 14K a month, FSCSX and VTSAX
TheDDC
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Re: What is your game plan as market is reaching its previous all time high?

Post by TheDDC »

novemberrain wrote: Wed Jul 22, 2020 10:24 pm I am at 100% VTSAX; but with the nagging feeling that I am making a big mistake by not reducing the stock percentage. I am 40.
Continue to fight that feeling.

-TheDDC
Rules to wealth building: 75-80% VTSAX piled high and deep, 20-25% VTIAX, 0% given away to banks, minimize amount given to medical-industrial complex
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Re: What is your game plan as market is reaching its previous all time high?

Post by flaccidsteele »

flyingaway wrote: Wed Jul 22, 2020 6:27 pm For me, I'm going to do a rebalance, probably a little bit larger than normally planned, slightly before the market reaches the previous all time high.

Background: 56, FI achieved, wants to maintain asset allocation between 70/30 and 60/40.

What is your game plan?
The same as my plan was in 1999 and 2005. Nothing.

I only “rebalance” into market crashes
The US market always recovers. It’s never different this time. Retired in my 40s. Investing is a simple game of rinse and repeat
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Re: What is your game plan as market is reaching its previous all time high?

Post by novemberrain »

TheDDC wrote: Thu Jul 23, 2020 12:25 am
novemberrain wrote: Wed Jul 22, 2020 10:24 pm I am at 100% VTSAX; but with the nagging feeling that I am making a big mistake by not reducing the stock percentage. I am 40.
Continue to fight that feeling.

-TheDDC
Thanks :sharebeer
I need all the encouragement I can get. Hope I make it through the bumpy ride of coronavirus economy without reducing equity exposure.
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Re: What is your game plan as market is reaching its previous all time high?

Post by mrspock »

I'm getting close 80/20 right now, with new money I'm working my way back to 75/25. From there it's back to rebalancing bands of 5%.

On the way down I'm very strict on rebalancing bands, on the way up, I give myself a bit of leeway to "let things ride" by a few % points beyond my bands, as I like to use new money to get things back into shape vs. trigger capital gains taxes (most of my portfolio is in taxable accounts), or burn my TLH "winnings".

Some additional context: Early 40s, I've achieved FI as well, my game is won, it's now just about running up the score a bit until I've "had enough".
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Archean
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Re: What is your game plan as market is reaching its previous all time high?

Post by Archean »

We rebalanced into stocks per our AA on the way down this spring, and now have rebalanced a bit the other way to get back to our AA. Then felt the gain justified buying that travel trailer we had been eyeing, since international travel off the table these days. Then doing nothing.
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Re: What is your game plan as market is reaching its previous all time high?

Post by whereskyle »

flyingaway wrote: Wed Jul 22, 2020 6:27 pm For me, I'm going to do a rebalance, probably a little bit larger than normally planned, slightly before the market reaches the previous all time high.

Background: 56, FI achieved, wants to maintain asset allocation between 70/30 and 60/40.

What is your game plan?
I buy two etfs pretty much everyday: VT and VTI. Lately I'm buying mostly VT.
"I am better off than he is – for he knows nothing and thinks that he knows. I neither know nor think that I know." - Socrates. "Nobody knows nothing." - Jack Bogle
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Re: What is your game plan as market is reaching its previous all time high?

Post by Chicken Little »

flyingaway wrote: Wed Jul 22, 2020 6:27 pmWhat is your game plan?
Similar.

Was 40/60 heading into decline, went to 60/40 in Feb/March, rolled back under 50% in June/July. Will stand pat until dust settles. Regular contributions very two weeks primarily into equity.

1. Last stimulus ended stock selloff, but I'm not sure how much upside there is to next round. If the market isn't a dummy, it should be "priced in".

2. Waiting to get better picture of economic fallout, particularly for small business (suspect that "chainification" of business will accelerate).

3. Waiting to see how many annual covid deaths there will be AFTER we're all vaccinated. Hopefully zero.

Don't address last comment (or delete). It's fine in context, because it is THE most important economic variable, and has to be part of a reasonable plan if you're doing anything other than set/forget. However, they don't like covid spreading on here and infecting other threads. There's nothing to add, besides.
Last edited by Chicken Little on Thu Jul 23, 2020 7:37 am, edited 1 time in total.
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Re: What is your game plan as market is reaching its previous all time high?

Post by Jack FFR1846 »

I rebalance when my AA gets 5% out of whack and I'm pretty close (4.68%). A point to consider....I could care less what the Dow, NASDAQ, S&P do. I care what my own investments do. Another fun point. The market hits "new highs" on average, once every 18 days, so if you miss this one, wait about 3 weeks for the next one.
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Re: What is your game plan as market is reaching its previous all time high?

Post by Chrono Triggered »

I'm in my early 30's and 100% stocks, so I plan to keep on keeping on. I've entertained spicing it up with a small slice in some long term bonds as a hedge in case stocks plummet so I can scoop up discounted shares, but I'm still not convinced that I need bonds at this point in my life.
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Re: What is your game plan as market is reaching its previous all time high?

Post by diabelli »

I would consider rebalancing except that I'd have to pay taxes on my gains.
I hate taxes.
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Re: What is your game plan as market is reaching its previous all time high?

Post by nedsaid »

flyingaway wrote: Wed Jul 22, 2020 6:27 pm For me, I'm going to do a rebalance, probably a little bit larger than normally planned, slightly before the market reaches the previous all time high.

Background: 56, FI achieved, wants to maintain asset allocation between 70/30 and 60/40.

What is your game plan?
I will probably rebalance. I am very close to my target 60% stocks/40% bonds and cash allocation so nothing to do right now.
A fool and his money are good for business.
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avenger
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Re: What is your game plan as market is reaching its previous all time high?

Post by avenger »

2/3rds of the time the stock market is at an all-time high.

What are you doing on all of those days?
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Re: What is your game plan as market is reaching its previous all time high?

Post by dodecahedron »

Donate some appreciated shares to charity to rebalance per my IPS and prepare for possible rollercoaster ahead.
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Re: What is your game plan as market is reaching its previous all time high?

Post by fourwheelcycle »

I am doing nothing - just watching and riding it out. I'm not rebalancing because I was in balance before the market dropped and I figure I will come back into balance as the market returns to its February, 2020 level. However, I think the market is currently at a very unrealistic level; I think it should still be at 19,000 or below. I expect a big drop later this year if/when Covid keeps spreading and there are renewed shutdowns.

If the market stays high this year even in the face of a contracting economy, simply because the Fed has printed so much money, there will probably be a day of reckoning ahead in a year or two as unsupportable debt leads to widespread business failures and possibly even bank failures.
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Re: What is your game plan as market is reaching its previous all time high?

Post by r.walker »

65 yrs old, still working. My plan, as always, is to stick with my all-stock portfolio. As retirement approaches, I'm at 95% stock, 5% cash reserves (about 4 yrs expenses). I rebalance stock holdings 80/20 US/International once a year.
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Re: What is your game plan as market is reaching its previous all time high?

Post by TheTimeLord »

flyingaway wrote: Wed Jul 22, 2020 6:27 pm For me, I'm going to do a rebalance, probably a little bit larger than normally planned, slightly before the market reaches the previous all time high.

Background: 56, FI achieved, wants to maintain asset allocation between 70/30 and 60/40.

What is your game plan?
After looking at my equity balances and thinking about it overnight I am considering implementing my melt up protocol which establishes a dollar ceiling for equities and GTC sell orders to harvest gains in excess of that amount. Currently, I have roughly $1.15 invested in equities for every dollar I had invested when the S&P 500 hit it's peak back in February so trimming back some is a reasonable consideration.
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