Investing During a Down Market

Managing your TSP and alternate investment options after retirement or separation from service.

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MakeMe$$$$
Posts: 772
Joined: Tue Aug 23, 2011 10:12 pm

Investing During a Down Market

Post by MakeMe$$$$ »

I recently decided to start my own investing starting with Vanguard Mutual funds. I feel comfortable with MFs vs ETFs/stocks/bonds because I am still investing on a monthly basis out of my retirement and they make that simple. I think going this route allows me to also study more while managing diversity. My wife and I have combined defined benefits exceeding $140K a year. I am just about to turn 60 and she is 56. We feel comfortable and have a positive cash flow just on our retirement but want to further build up our savings to cover long term care (she has LTC but I don't) and purchase of a home after we quit being full time RV travelers.

I just invested about $5000 into each of 4 MFs that give currently give me about a 57% bond and 43% stock mix. All 4 funds are indexed. They include the S&P 500, a life style conservative growth fund, a short term bond, and an income fund.

The stock mix is 89% large cap, 9% mid cap & 2% small cap. Roughly 12% of all that is international stocks the rest US.

Our goal is to add $1000/mo for at least 5-6 more years. I think that puts our time line out far enough to be smartly aggressive for at least 3 more years. I do want to bring my stock to bond ratio closer to 50/50.

So...to my point/question...

If the market does begin a long term slide I see 2 primary options since I can accept moderate risks.

1. Move most of my current money out of stocks but invest new money into stocks based on the lower prices. (This seems to be a big panicky at this stage.)

2. Leave most/all of my current money in stocks and invest new money into stocks. (I suppose I am hedging a bit on just how deep this downturn can be and not wanting to panic. This would also get me closer to my 50/50 goal.)

Is there another approach I haven't considered without getting into moving into ETFs or specific stock/bond recommendations?
Don
Rolled over to Fidelity 2/24/18.
Fantasy still playing with Daily Strategy 12767.

sslmd2
Posts: 2
Joined: Thu Apr 12, 2012 8:50 am

Re: Investing During a Down Market

Post by sslmd2 »

Beef up the charity portion of your goal, if any, and consider a annuity to your favorite school, etc.

It has the additional psychological benefit of seeing your money helping the needy in the event of severe economic downtown, even if your net worth does not increase 5 times at time of passing away, e.g.

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MakeMe$$$$
Posts: 772
Joined: Tue Aug 23, 2011 10:12 pm

Re: Investing During a Down Market

Post by MakeMe$$$$ »

sslmd2 wrote:Beef up the charity portion of your goal, if any, and consider a annuity to your favorite school, etc.

It has the additional psychological benefit of seeing your money helping the needy in the event of severe economic downtown, even if your net worth does not increase 5 times at time of passing away, e.g.


That is something I have in my estate planning but would like to improve my overall investments to improve the charity side after kicking the bucket. :lol:
Don
Rolled over to Fidelity 2/24/18.
Fantasy still playing with Daily Strategy 12767.

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