Afternoon All,
I (56m) rebalanced my company sponsored (Merrill Lynch managed) portfolio in late January. Overall portfolio at the time was a bit heavy with conservative investments (bonds, stable value, etc.) - probably around a 60% conservative / 40% aggressive balance.
After rebalancing, I shifted a bit to a more aggressive (55% stocks / equities, 35% stable value and 10% bonds) portfolio. I have “ridden the current wave” and, to this point, have been hit to the tune of a (6%) loss since rebalancing.
Although results over the 6 years will ultimately be the determining factor, my plan was to retire at 62. Currently, I have been thinking that I would continue investing as my allocation currently sits with the mindset that, while I do understand that we have probably not “hit bottom”, I would be buying at a reduced amount if nothing else. However, I am also thinking perhaps my overall portfolio should include more bonds. A few questions I have - would appreciate your thoughts / guidance on:
1: is my 35% stable value plus 10% bond allocation (together) “conservative enough” given my age? Should I have more allocated to bonds and less to stable value?
2. If I proceeded with a rebalance at this time, concerned I would be selling my stocks / equities at a loss. Would it be better to try and weather the storm before rebalancing or pull the trigger now?
3. Would it make sense to consider a full portfolio rebalance to target date fund (say 2030 or 2035)? I have not ever included TDF’s in my portfolio and the common thinking is that this is an “all or nothing” approach from most folks…assuming if this would be a good approach that the 2035 would be more aggressive at this time while the 2030 would probably be an even blend aggressive to conservative and continue in the conservative direction. While “protecting the house” is certainly a concern at my age, I don’t want to get involved in a fund that doesn’t let me recoup the bit I have taken by being too conservative.
Long read and truly appreciate your thoughts.
Thank you!