Personal Finance and Investing

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.