1 Year, 5 months, 24 days to go…
My primary retirement account was allocated fairly aggressively when I was younger, and my first reallocation occurred – through no intelligence on my part – just prior to the DOT.COM crash in March 2000. It bothered me that the market had exploded so fast and so far, so in spite of most advice that it would continue I bailed out of the aggressive funds and reallocated to almost all bond funds, the result being that I lost almost nothing when the bubble burst. Pure. Dumb. Luck.
Once the free-fall subsided, I waited another chunk of time and slowly reallocated into a less-aggressive stance. That allocation remained until recently, much to the chagrin of the broker/adviser who manages my secondary retirement account and counsels me about my primary account.
So now we are sitting at a 65/35 split between stocks and cash-bonds, and we cut way back on our significant tilt towards US large cap growth stocks – more conservative than prior to the reallocation and far more conservative than the pre-bubble-burst allocation. As the actual retirement date approaches I suspect we’ll go even more conservative.