Hello Experts,
While I had been following a bogleheads VOO:BND type portfolio for the last few years I am in the process of changing this to a VOO:(TBILL+Moneymkt) portfolio. This is primarily due to my incorrect assumption that BND wont fall more than 10% anytime while as we know it had 20% downturn recently. In addition instead of a fixed AA like 80:20, I would like to have 5 years of living expense saved in safe TBILL+Moneymkt and the rest in VOO, may even increase to 5-10 years cash equivalent in retirement. So that say we have a 50% market crash, possibly 5 years later it may recover at least 50% if not fully so wont need to sell much from equities when down unless we have a Japan type crash. It is possible this will make the VOO part of the AA more or less than 80% over time. What are the downsides of such an Asset Allocation with a fixed cash equivalent portion.![:o]( "Surprised")
While I had been following a bogleheads VOO:BND type portfolio for the last few years I am in the process of changing this to a VOO:(TBILL+Moneymkt) portfolio. This is primarily due to my incorrect assumption that BND wont fall more than 10% anytime while as we know it had 20% downturn recently. In addition instead of a fixed AA like 80:20, I would like to have 5 years of living expense saved in safe TBILL+Moneymkt and the rest in VOO, may even increase to 5-10 years cash equivalent in retirement. So that say we have a 50% market crash, possibly 5 years later it may recover at least 50% if not fully so wont need to sell much from equities when down unless we have a Japan type crash. It is possible this will make the VOO part of the AA more or less than 80% over time. What are the downsides of such an Asset Allocation with a fixed cash equivalent portion.
Statistics: Posted by ebeb — Sat Dec 16, 2023 9:25 pm — Replies 14 — Views 1116