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Some big sums of money that I have invested that I’m using to save for a big purchase about a month ago and I’m so glad I did. Kind of wishing I did the same for my retirement accounts though.
I reallocated 8 weeks ago on first word of the virus. I just submitted the order to reallocate to equities. The gains in bonds have been made. They tell you not to sell because you’re too late and already rode the wave down so it doesn’t make sense to sell because you’re not likely to time the bottom. However, if you proactively manage it and maybe miss some upside (I missed some of the run up), it can still help in the long run.
Because bonds will likely level out and I was up 30% YTD on my long government bond funds. I can be breakeven in my 401ks if we fall further from here, and I’ll be cost averaging down with every paycheck. I think a 30% discount from ATHs is a good place to reallocate. I’m now about 75% equities 25% bonds vs 85% bonds and 15% equities. Leaves me room to cost average equities more if I need to later on.
Shouldn’t you balance by buying more, not selling what you have and realizing losses? Or am I missing something?
Within a retirement account "realizing" losses doesn't do anything other than making your unrealized look better.