Rebalancing

[DazedandConfused]

How often do you guys rebalance your portfolio. I am still contributing to a 457b plan and wonder about the wisdom of dollar cost averaging into a bond fund. I am 63 and I would qualify for Social Security and a state pension in 3 years. I am putting 22k into the 457. I will actually continue working as long as I am productive, and would love to work into my 90s, but I have set a secondary goal of 71 when I can no longer contribute to the 457 and must begin MSD. I know I can contribute to a Roth past age 70

[DDEATH]

Dazed,

I usually rebalance around the first of the year.

Work into your 90's????? Actually, it is a personal choice......... like that Mail Handler in California, retiring at 95 years old. Not for me but, go for it.

[DazedandConfused]

DDeath, of course realistically I doubt that I could live that long, let alone work into my 90s. I worry about boring myself to death in retirement. There are very few things that hold my attention for any length of time.

[DDEATH]

DDeath, of course realistically I doubt that I could live that long, let alone work into my 90s. I worry about boring myself to death in retirement. There are very few things that hold my attention for any length of time.

At the end of this year I will have 10 years of retirement in. Not bored yet, and the clock just keeps spinning faster and faster........

[ucanit]

Dazed, from an academic and financial view, you should re-evaluate your investments once a quarter because that's how often you can get financial performance results and company projections on most for your investments. Because I recommend valuation models of stock values (which means I still prefer buying and holding good performing, high-quality company investments over the long-term, as opposed to trying to chase the most recent high performers), I suggest that everyone consider rebalancing once each year and that is easily done at the time you file income taxes (because you've got all that data in front of you anyhow). But...that's just me!

[DazedandConfused]

DDeath, UCanit, thank you for your responses
The more I think about it the more I believe Nov 2013 will be my target date for retirement. That is when everything sort of comes together and I both qualify and max out my pitiful Social Security, and I become vested in my state retirement. I am now putting 22k into my 457 plan, but I wonder if it is wise to dollar cost average in my bond fund. I have a pitiful low 11.95% in bonds that grows a bit each month because of my contribution to the 457 plan. I would love to have a higher percentage in bonds, but I worry that inflation would cause the bonds to drop. Perhaps if I can survive the next 3 years, I can go to a more reasonalble allocation in retirement. I am the opposite of most investors my age, I am afraid of being too conservative. Although I look at my investments monthly, I think I will rebalance on the yearly basis.

[WestTx]

... The more I think about it the more I believe Nov 2013 will be my target date for retirement. That is when everything sort of comes together and I both qualify and max out my pitiful Social Security, and I become vested in my state retirement.

Dazed,

To what extent does your CSRS annuity offset your Social Security benefits?

WestTx

[ucanit]

Based on my 20 years of "substantial earnings under Social Security" my SSI benefit is calculated to be $684 per month.

The WEP (Windfall Elimination Provision) reduces my SSI benefit to $300 per month. Nearly a 60% reduction in benefits.

[DazedandConfused]

UCanIt, thanks for that reply. I am not even eligible for another 3 years and then I don't know if I will get enough to pay Medicare B. It may well just be beer money. I am thinking under $100 a month. The only reason it is even a topic with me is because I vest with the state at the same time. If that were a leg on my retirement stool I would be in deep shit.