Personal Investments • FOMO vs IPS vs AA adjustment vs ??? (help/advice)

Age: 70's
Income: No pension, no annuities, etc. Only...portfolio proceeds and rental incomes (disregard rental income).

Your IPS says:
A
AA fixed at 60/40 (for the past 5 years).
do nothing except for 10 percent rebalancing bands.
B
when in doubt, "do nothing".
So....

<Conditions>
But....as a result of "do nothing" over time....AA has crept from 60/40 to 65/35 to the current 72/28...

<Actions/Options> (suggestions???)
1
Turn off "reinvest dividends/interest", proceeds >> "sweep account"...do nothing until what????
2
<Do nothing>....then AA goes where and to what end??? (what spouse wants to do...nothing...).
Is this a FOMO (market timing)??
(in the past, "do nothing" has resulted in very large swings but AA seems to "normalize" over time....so???)
3
Sell "equities" VTSAX (vanguard total stock) from this very basic 2 fund portfolio and increase VBTLX (total bond) to adjust AA to 60/40. (may result in huge capital gains tax).
4
Do this but sell only enough to not result in huge capital gains tax. Split it so that "next year" do it again. So, 2 or more steps, even out to 3 years if needed since amounts would be very large.
5
Reset AA to 70/30 and "do nothing".....(spouse wants to do this).
example: in March/May 2020 (huge drop), we were at 60/40 and fine with "doing nothing". Not sure about 70/30 as far as "risk tolerance" and "sleep factor".
We have the "ability to take risk", but..."don't need to with 45++X.

<please input>
Thoughts and suggestions, (substantive,, quantitative, actionable)??

examples: especially from those that have needed to "move/transact" 7-8 figures to do this.??
j

Statistics: Posted by Sandtrap — Tue Dec 03, 2024 7:44 am — Replies 11 — Views 259

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