TLDR: 47 years old, hoping to retire around 60 - do I keep DCA'ing into the same funds I have been (aggressive 90/10 allocation), or do I start buying up the lower risk stuff?
Little background, 47 (almost 48), $210k HHI, divorced 5 yrs but soon to be remarried. Before this complete dumpster fire, I had about $550k in the market between 401k, Roth, Brokerage and kids' 529 accounts. Been too scared to look at how bad it is in a while, which tells me my risk tolerance is changing as I age. I've been through the recession in 2008, Covid, the drop in '22 and have always stayed the course with DCA. Investments have been a mix of large cap growth fund, S&P index and mixed allocation. Probably 90/10 stocks/bonds. Total return (before this) since inception has been 12%.
I have no plans to lock in losses and do anything rash or move my holdings to bonds or whatever. But going forward with dollar cost averaging, and seeing as my risk tolerance is shifting, ***SHOULD*** I start buying less risky investments? I.E. should I start allocating future contributions to treasury bonds, etc.? It's tempting to keep my same fairly high risk allocation going because I'd be buying all the blue chips, including big tech etc at a huge discount and IF AND WHEN the market rebounds to pre-crash levels, I'd make a pile of $. Thats what I did during Covid and 2022 and it worked. But here we are, and of course now, on paper, those gains have vanished.
Or option C is I would weather this nightmare, change nothing and when I recoup my losses and we're on the up, I THEN reallocate to a 60/40 portfolio or something. Figure I'd be about 53 by then : ( Thanks for reading.