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Tactic for moving between a 60/40 stock/ bond balance to 40/60

Started by opmmember, October 11, 2018, 08:12:45 AM

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Re: Suggested Stock Allocation By Bond Yield For Logical Investors

EXCELLENT article as usual.  My question is the tactic you would employee to convert when the targeted interest rates are reached please?

As always, thank you!


 Start with selling your investments that are longer than 12 months old due to lower tax consequences.

I would never sell the entire position at once. I would transfer in three or four different tranches instead.



Is this article is geared toward investors that are close to retirement and/or advice for taxable investment accounts? Most of my investments are in tax deferred retirement accounts, and being relatively young, I would miss out on relatively higher long term gains from equities if I went as low as a 60% stock allocation. For someone within 5-10 years of retirement, I think this makes lots of sense. For someone 10+ years out or heavily invested in tax deferred vehicles, I'm still biased toward a higher stock percentage regardless of interest rates.