UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 81641  
Subject: Re: Inherited IRA - Asset Reallocation Date: 3/10/1999 9:48 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Mmcleod asks:

<<As a result of an inheritance, my portfolio is now heavily weighted towards US Treasuries. (80% bonds, I am in my early 40's) What thoughts do people have on the processes of asset redeployment?

I am concerned that with the markets near all time highs it might not be a good idea to shift all the assets at once into say S&P500 index funds. Perhaps a dollar cost averaging approach would be better – but over how long a time period? I was thinking about a 12-month process to move the investments.>>

If you're concerned about the inability of this bear market to sustain itself and fear buying in at a high simply to see it plunge overnight, then certainly using a dollar-cost averaging technique is appropriate. I'm guessing you're looking at about a 20-year term, though, which historically has been ample time to overcome a significant market drop. Still, life holds no guarantees. Thus, I for one have no criticisms for anyone using a gradual method for getting a lump sum into the market.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.