The kids are both in college, and their 529s are in age-based allocations. Michigan's 529 lets you pick between three different mixes based on risk tolerance. Those funds re-balance periodically and have low expense ratios. I am aggressive, my wife is conservative, so we put them both in the Moderate category to split the difference. I am still 15-20+ years from retirement. That plus my risk tolerance has my (tax-deferred) retirement account entirely in an equity index fund with very low expenses. My wife has an allocation that is not 100% equities, and she re-balances probably less often than she should, which means that it probably has more in equities than she'd prefer at the moment. This is a good nudge that I should remind her to take a look at that if she'd like to.
We also have more of a cash reserve than we probably should, but we also don't have much beyond travel that we spend real money on. The house is not quite "period" in decor, it's just dated, but you get the idea. We drive cars into the ground. Etc. etc. etc. And, our time is currently more limited than our travel budget, so it's not the end of the world that we aren't getting every last cent of return.
I tried timing the market once, when I bought a bunch of stuff on the big dip in late September of '08 and thought I was a genius. That wasn't a terrible idea, but it wasn't the brilliant move I though it was, and I've decided to not make that mistake again. Now I don't even open my quarterly statements.
