Portfolio Migration

For the few who follow this blog, I started to implement the last step of my portfolio adjustment as planned at the end of 2021 

I plan to migrate 50% cash to 50% bond in the coming years. The pace of the migration will follow the pace of Fed's rate hikes. My target is to reach 50% TMF when Fed slows down or pauses rate hikes. 

Here is the timeline of my portfolio migration:

1. Dec 2021: 100% TQQQ/UPRO => sell TQQQ => 50% UPRO + 50% Cash - (This is triggered by my decision to retire, a major lifestyle change)

2. Jan 2022: Apply for HELOC as emergency fund - (Prepare for enduring 4~5 yrs downturn w/o any major lifestyle or portfolio change)

3. Feb 2022:  Say Goodbye to W2 - (Retire when my W2 makes no difference as planned in 2012) 

4. Mar -June 2022: 50% cash => build a bond ladder using 1~1.5 yr treasury - (I didn't go long duration to avoid the problem similar to what brought down SVB).

5. Mar 2023 ~: As my bond ladder reaches maturity, I started to convert them to TMF (and maybe buy some FAS opportunistically) 

Once the migration is done, I plan to hold the position for a while. I won't rebalance unless TMF spikes or UPRO outgrows TMF by a large margin.