Protecting Profits and Raising Cash

At 10 years into retirement, I cannot afford a 50-70% decline in our overall savings.  First, we are entirely dependent on our savings to cover living expenses.  Second, we don't have the luxury of waiting 3-5 years to recover our losses.

We have been enjoying this bull market and the recent advance.   However,  I also feel the downside risk is greater than the upside potential, and the risk continues to grow.    So I've been taking the opportunity to sell some profitable positions and raise some cash.  

For now, I am maintaining our core investment positions, acknowledging that the amount may lose over 50% in the next bear market.   However, since our core position represent about 33% of our investable assets, I believe we can safely handle a major decline in the stock market.   Thus, I can sleep well at night, despite the possibility of a significant bear market.

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This is not financial, investing, or retirement advice. Please consult a professional advisor.

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