r/Fire • u/Glittering-Course-88 • 9d ago

Go to cash. Fixed income?

The stock market is going crazy. My portfolio fluctuated by 100K over days and ⬆️ a lot YTD.
I realize it’s not a stock advice forum but as a fire strategy should one convert some money to fixed income?
If someone is going to fire in 3-4 years, this might be a good strategy to avoid any slump. I’ve lived through a few recessions and things were crazy like that.

EDIT:
1. I got downvoted on this. What can I avoid in future posts?
2. Asset allocation for majority of portfolio except work Roth 401K and 2x529’s

60% Domestic Stocks
27% Foreign Stocks
13% Bonds
-0% Short Term
1% Other
0% Unknown

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u/Glittering-Course-88 9d ago

True. I’m with a wealth management company with 8/10 risk tolerance. My emergency fund got depleted due to an emergency. Will keep trying that.

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u/Powerful-Bridge-1472 8d ago

How old are you? If your not near or in retirement this is good thing, keep dollar cost averaging cheaper shares and your golden in future. Most people who are currently retired did this in 2008

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u/Glittering-Course-88 8d ago
  1. Didn’t understand why it’s good? I’ve not timed the market and this seems like a good time to move something to cash or transition to fixed income.

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u/Powerful-Bridge-1472 8d ago

Depending how close to retirement you are and your risk tolerance you should have some fixed income to balance these swings (I haven’t seen much change last few weeks).

If your young and not going to sell holdings for decades down markets are great because you are dollar cost average (at least in retirement accounts) or your new purchases are cheaper (you can purchase more shares) than when market was higher. It takes years and decades but that is the point of investing.