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progree

(11,694 posts)
13. Liquid assets: 84% equities, 16% bonds and cash.
Thu Aug 1, 2019, 02:58 PM
Aug 2019

In my liquid assets my equities are 83.6%, while my cash (1.3%) and bonds (15.1%) total 16.4%

The main reason for the bonds position is for if the S&P 500 drops 30% from peak-to-trough, I will sell all my bonds and buy equities.

Virtually all my equities (and all my bonds) are in mutual index funds and ETFs (I only have one indivdual stock that I inherited and haven't sold yet - I don't want to pay the capital gains and it is a utility stock (Sempra).

At my 67 age, my bonds (and cash) are supposed to be my age (67%) or another formula is "your bonds = your age minus 10", which comes to 57% bonds.

However, not included in the above are my non-liquid assets which are all non-equity --

* A charitable gift annuity from Population Connection that pays nearly $21,000/year (there are no inflation adjusments)

* Social Security which I'm collecting, maybe $20,000/year (before reduction by the Medicare Part B premium). This increases with inflation.

* A paid-off townhouse (though I value it at only $70,000 because it needs extensive work)

* Unfortunately, no pension (I took it as a lump sum and invested it)

Anyway, my reasoning for stocks is splattered all over the recent "How Different Generations Think About Investing" https://www.democraticunderground.com/11211641
so I won't repeat all that here.

Recommendations

0 members have recommended this reply (displayed in chronological order):

Wish I could answer, elleng Jul 2019 #1
Hmm... mnhtnbb Jul 2019 #2
Your managers should be able to give you a snapshot just about any time A HERETIC I AM Jul 2019 #8
I'm sure they can. elleng Jul 2019 #9
Thanks for your post. cilla4progress Jul 2019 #3
One of the reasons I decided to take some profits mnhtnbb Jul 2019 #5
Seems appropriate for your situation FBaggins Jul 2019 #4
One of the reasons I decided to mnhtnbb Jul 2019 #6
Sounds like you're in just the right place FBaggins Jul 2019 #7
I'm 64 and... bif Jul 2019 #10
I can't tell you my exact percentages, PoindexterOglethorpe Aug 2019 #11
I now see that the Dow is currently down PoindexterOglethorpe Aug 2019 #12
OMG! I didn't know that! It's down even more now: 277. It's the beginning of the GREAT CRASH progree Aug 2019 #14
YES! YES! YES! PoindexterOglethorpe Aug 2019 #15
You are quoting the repeated lamentations of the daily "Stock Market Watch" thread. A HERETIC I AM Aug 2019 #18
Oh darn, I forgot the Plunge Protection Team. They didn't seem to be on duty today progree Aug 2019 #19
"not lookin' too good right now I'm sure the PPT will come along to bail 'em out . . . . " progree Aug 2019 #21
LOL! A HERETIC I AM Aug 2019 #22
Is it time to declare The Death Of Equities? progree Aug 2019 #23
Any day now! A HERETIC I AM Aug 2019 #24
Odd posting at SMW today on a day when Dow up 371 (1.43%) and S&P 500 up 1.88% progree Aug 2019 #25
Liquid assets: 84% equities, 16% bonds and cash. progree Aug 2019 #13
The problem with the notion that PoindexterOglethorpe Aug 2019 #16
I agree. That's why I don't follow the conventional wisdom. I wish the damned interest rates progree Aug 2019 #17
I am very happy I made the changes to rebalance my portfolio mnhtnbb Aug 2019 #20
What portfolio? virgogal Aug 2019 #26
Since I have no idea what I am doing... AJT Aug 2019 #27
Ours are only stock and bonds funds in our IRA accounts question everything Aug 2019 #28
Latest Discussions»Culture Forums»Personal Finance and Investing»How is your portfolio bal...»Reply #13