Pointedstick wrote:
mathjak107 wrote:
there is always time to nudge things if another recession looks possible .. the max of 60/40 is still pretty conservative compared to an all out growth model ,
Did you successfully predict the recessions in 2001 and 2008 and react correctly beforehand?
actually i didn't react at all to the 2000 one . the models never held much in dot coms or tech .as usual there never is a reaction TO CORRECTIONS OR DOWN TURNS , IT IS BUSINESS AS USUAL.
doing nothing or making subtle changes is all i would want to do .
2008 was a different story . just as part of my retirement plan i wanted to go from the growth portfolio to the income and capital preservation mode .
so as luck had it we made a lot of money in some apartment liquidations in 2007 and i decided we were going to retire early..
we bought a 2nd home in the pocono's in pa and the plan was to retire there in a few years. so while we were still up doing nicely my wife and i discussed making the change so we had more of what we wanted for retirement land in place .
well as luck had it i already made the change when 2008 turned nasty.
the irony is 5 years later we decided we did not want to retire there . it just lacked many of the things that were becoming more important to us as we aged.
no public transportation if we couldn't drive
harsh long winters when we couldn't ski
many of the reasons we entertained retiring there like hunting and fishing locally we ended up not doing much .
limited specialists and medical facility's
all low paying jobs if i wanted to work so we killed the idea , sold the house 3 years ago this week and instead decided to keep working a bit longer since we didn't move .
in 2009 i decided the income model was to conservative by itself and so i put 1/2 n the growth and income model too where it stayed up until two weeks ago when i decided to use my own model.
the mtwo portfolio's had a good overall balance together but eventually it ended up with a lot of overlap since the models started using the same bond funds but in different percentages.
it was just toooooo much in bonds for my taste at this point when you took the two together so i created my own model.
so while i didn't predict 2008 i did luck out and miss much of it but i can tell you i never planned it that way . it was just the way the timing worked out of everything . .