Not exact matches
They suggested that I fix the sector
allocation, but it is just
taking a very long
time to do so
at my pace.
Take the
time to review your TSP and other account asset
allocations now to see where you are
at and where you need to be.
Eh, I'd say we should consider our risk profile here as well, and by
taking that into account, we feel perfectly fine with our asset
allocation at this
time.
Actually, I'd been doing the same thing for quite some
time and only after years of study, experience and losing money did I realize that I should really
take a closer look
at diversified asset
allocation.
Those going with a zero stock
allocation took an emotional risk that they would become frustrated with «missing out» on those great short - term returns and would abandon the strategy just
at the worst possible
time for doing so.
At times like this you have to remind yourself that the entire purpose of asset
allocation is to ensure that you're never
taken by surprise by the market's next move.
While it's not clear (to me
at least) that market sentiment has completely swung the other way now, it may be
time to
take a look
at your current asset
allocation.
As I've explained here before, I tend to be much better
at building up multiple holdings over
time (averaging in) these days, so it can
take much longer now for any single holding to be finally complete (in terms of reaching a target
allocation).
FI represents a small
allocation (< 20 %) but what I've done is hopefully gained a better yield for the risk I'm
taking vs. investing in Governments
at this
time which yield (in real terms) virtually nothing.
Many stock investors reject claims that they should lower their stock
allocations at times of high prices on grounds that it would be a mistake to show a reluctance to
take on risk.
However, it is better to reduce your stock
allocation directly
at such
times (
taking your lumps early, if necessary) as opposed to rebalancing (and having to
take bigger lumps later).
But if you really can't do without the psychological crutch of dollar - cost averaging, then I suggest
at least minimize its shortcomings by reducing the amount of
time it
takes to get to your target asset
allocation.
So now's the
time to
take a stab
at what
allocation you think is better, then go with that until your account (s) settle with your new custodian.
At the same time, they must take overall responsibility for how the fund is constructed, looking at the bigger picture and considering issues such as asset allocatio
At the same
time, they must
take overall responsibility for how the fund is constructed, looking
at the bigger picture and considering issues such as asset allocatio
at the bigger picture and considering issues such as asset
allocation.