I just re-allocated my retirement portfolio to be less aggressive in the coming year. The last three years have been pretty incredible (30% growth last year alone) so I'm pulling back a bit and locking in some of my gains.
Nobody really knows though. Maybe we have another 30% year.
I hope I don't end up regretting it but I already have enough to retire on so want to protect what I have as much as I can.
Never enough!
I remember people being openly skeptical that it could ever get to 5000.
I expect to see 40 or 50K before I die
You will not regret taking some of your gains and locking in the profit. However as you near retirement, a good rue is to balance your stocks with fixed income investments 50% of each,
In my case my fixed income is really a money market fund, since bonds and money markets yield about the same.
How close to retirement you are makes that ration important. If you are very young, the 80% stocks makes sense. Etc.
My problem is I just don't know what's a good change up right now. Interest rates are still staggeringly low. If they go anywhere it will go up which will devalue bonds, so where are you going to go to keep up with inflation?
I'd love to hear what you think is a good place to be "less aggressive" and still be able to handle a correction.
Good thinking.
Remember:
Bulls make money
Bears make money
Pigs get slaughtered.
We believe in what Trump is doing and actually just increased our retirement equity exposure from the mid 30% range to the mid 40% range a month ago.
I started off timid but got agressive the last 5 months...ended up with 24%!