Ha - yeah, I am definitely resembling the quote in my signature.guppyguy wrote: ↑Mon Dec 06, 2021 10:44 amIf you don't mind sharing, how far away from retirement are you in terms of not only years left working but % of additional retirement funds required?burritoLover wrote: ↑Mon Dec 06, 2021 10:35 am My thought processes for my recent round of proposed changes:
1. My SCV allocation has no EM - I would like to have exposure there as it now makes up 25% of equities which puts me underweight on EM across the portfolio.
2. 5-10% allocation to gold - this is a tough one but I wanted an allocation to something uncorrelated to stocks/bonds.
3. Starting to buy i-bonds each year - my 5% bond allocation is entirely in the TDFs in the 401k.
4. I feel like I want to increase my SCV allocation. We are maxing out 401ks and I have a very high risk tolerance. We will not be eating cat food if all we had to show for it was the 401k at retirement, short of extremely high inflation over 20-25 years.
The reason I ask is that you will not be the same person later and that all of these ideas, while having some debatable merit, probably will not make that much of a difference. Is the extra alpha worth not only the increased ER but the increase time (and temptation) you will take in checking your portfolio all the time for rebalancing events?
I think you're handling the soap a bunch, because I do to, so it's easy to spot. Not a judgement, as I don't know you.
The 401k is the "safe" allocation - TDFs at our retirement age, which is about 20-25 years from now.
Roth IRA and taxable is my more risky bets (mostly SCV). Granted these are still globally diversified "passive" index funds - more risky, sure, but it isn't individual stocks. I am ok with these underperforming the market - I will not bail even if this occurs over 20+ years. My problem is I keep wanting to tweak based on new things I learn. For example, I wasn't aware that a 25% SCV allocation has, historically, about the same volatility as a 100% market portfolio. Now, I know, that going forward, that may not hold, but I was thinking the volatility was much higher previously when I allocated 15%.