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I was writing from the perspective of someone already in a certain stock index / asset allocation plan. I think if someone has a plan in progress (has committed to stocks) they should not disrupt it. I'm 30% stocks, so I remain 30% stocks.
So have you sold off some of your gold and fixed income to maintain that 30%? I would hope not. I am sure we have discussed this before, but any rebalancing (if you are committed to percentage allocations) should, I understand, be done at some infrequent interval rather than as a knee-jerk to a change in the markets.

My too high allocation to equity has recently been self-correcting ;) It would be interesting to see what those balanced funds are doing. Are they still maintaining their target ratios during this period?
 

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So have you sold off some of your gold and fixed income to maintain that 30%? I would hope not. I am sure we have discussed this before, but any rebalancing (if you are committed to percentage allocations) should, I understand, be done at some infrequent interval rather than as a knee-jerk to a change in the markets.
Yes totally agree that rebalancing should be infrequent. I only rebalance once a year and that's in my written policy.

I did not sell any gold or bonds to maintain 30%. I have not sold anything, period. My current allocations are:

52% bonds and GICs
26% stocks
22% gold

It should also be noted that, if things continue like this, it's not a big problem for withdrawals. If I need to withdraw money, it comes out of whatever is strong. Currently that's bonds & gold.
 

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There is another question and that is if you sell out now when do you get back in? Thanks to Peter K for his charts, that demonstrate that when the market has dropped 30% to 40% is a better time to be buying than selling, more often than not.
Unless you have a plan and some kind of signal when to get in and out it is better to buy good stocks when they are on the bargain counter and hold onto them.
 

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There is another question and that is if you sell out now when do you get back in?
For those that get out, they can choose to stay out of the game. Just like selling your golf clubs or your boat and moving on to a new game, or none at all ;)

I am still very much in the game. But, have used this time to sell off some risky stocks. Also cut back on some that I had too much of. In this way increased my cash. The recent bull market had resulted in way too much equity value anyway.
 

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We sold all our stocks when we retired in 2006. We both have DB pensions and savings in GICs. We had no need to keep money in the markets anymore.

Now I am wondering about the health of pension funds. Prior to the virus both our pensions were fully funded. They have done well for years.

Today I read that OFSI is temporarily halting all commuted value transfers out of pensions. It makes me wonder what is going on with pension plans.

We may not be as secure as I thought. Worse case scenario is we would lose some of our pension. We would be able to manage that.
 

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We sold all our stocks when we retired in 2006. We both have DB pensions and savings in GICs. We had no need to keep money in the markets anymore.

Now I am wondering about the health of pension funds. Prior to the virus both our pensions were fully funded. They have done well for years.

Today I read that OFSI is temporarily halting all commuted value transfers out of pensions. It makes me wonder what is going on with pension plans.

We may not be as secure as I thought. Worse case scenario is we would lose some of our pension. We would be able to manage that.

I too retired in 2006, and also have a fully indexed DB pension which has been quite secure, but took the opportunity to invest in stocks much more than before retirement as I now had the time to devote to it. It's been an enjoyable hobby ever since and a profitable one. This recent pullback is insignificant compared to the gains since 2006. When anyone tells me they're getting completely out of stocks when they retire I don't really feel it's the best way to go. Stocks are for the long haul and every portfolio should have at least a small allocation.

ltr
 

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Today I read that OFSI is temporarily halting all commuted value transfers out of pensions. It makes me wonder what is going on with pension plans.
Can you provide a link? That's pretty interesting.
A reasonable precaution because selling out at these lower levels won't allow them to gain the money back on the rebound. Would your rather take $50k out of your portfolio now or take the $50k out down the road when it's back up to $75k or higher?
 

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I really hope everyone reviewed their asset allocations, are clear on their plans, and have the level of risk exposure that's right for them.

If you haven't... it's not too late. For example if you were a 100/0 or 80/20 person who discovered that's too stressful for you, it's not too late to shift to a more suitable allocation. I think the key thing is to figure out what % stock/fixed income allocation is right for you, then commit to it.

It's possible we'll get another selloff at any moment. The TSX has already erased two weeks of gains.
 
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