Took a deep breath and checked the end of the quarter. And the 50-50 paid off

[question everything]

That is, half bond funds, half stocks.

While the S&P 500 dropped 24%, our portfolio lost 10%.

We used to split them 60 stock, 50 bonds but after the 2016 elections we changed to 50-50.

Yes, in the past few years our returns were half the market but, really, did not bother me. Chose to leave them with no changes.

Interestingly, two years ago an advisor from Vanguard suggested to further split between domestic and international, something like 30% of the bonds to be international. I don't remember the split for stocks. But I really did not feel like changes. For the year, now, the total bonds fund went up by 3%, but the International bond fund - 0.6%.

Will continue to stay put. Had to withdraw RMDs for the first three months but will now convert parts of the pre determined amounts to Roth.

And, I was thinking about those senators who sold before the crash, something like close to a million dollars value. But they generated taxable capital gains! Well, at least this would be my thinking..

[at140]

1. I was 60% bonds and 40% cash before the virus crash

and like you I am down about 10%. While the bond funds are paying good dividends and re-investing dividends at lower prices. Spending the cash now into stock funds for 3+ year hold.

[progree]

2. unless they were in an IRA or 401(k) or other tax-deferred or tax-free (Roth) account

Last edited Wed Apr 1, 2020, 11:22 AM - Edit history (1)

But they generated taxable capital gains

Aside: S&P 500

2140   11/8/16 Election day close
2585   3/31/20 close (yesterday's close)
+21.8% since election day (5.73% average annual)

Though I expect the market to drop and drop and drop. It simply hasn't priced in what Cov19 is doing and will do to the economy.

As for the quarter:
3231   12/31/2019 close
2585   3/31/2020 close (yesterday)
-20.0%

[Canoe52]

3. We pulled out of the market when orangealini became president, went 50/50

50% savings account and 50% mattress.

[Fiendish Thingy]

4. Being conservatively balanced and diversified has served us well

We weathered the dips in 87, 2001, 2008, and ended up ahead in a short time. Our portfolio is performing better than the S&P, similar to your results.