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Re: Am I heading in the right direction?

My compliments on your approach to seeking knowledge. It seems you are going in a good direction. One observation is that your emergency fund seems to be quite large relative to your income and monthly expenses. I think the typical recommendation for emergency fund is 6-12 months of expenses. You mi...
by EJE
Sat May 03, 2014 9:09 am
 
Forum: Investing - Help with Personal Investments
Topic: Updated Portfolio questions
Replies: 12
Views: 1290

Re: Cash as part of bond asset allocation?

I posted a similar topic last month here: http://www.bogleheads.org/forum/viewtopic.php?f=10&t=119309 My opinion is cash and bonds should be considered together (particularly in today's environment of low bond returns) when looking at the stocks / bonds (&cash) AA split. I think its debatabl...
by EJE
Thu Aug 08, 2013 9:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Cash as part of bond asset allocation?
Replies: 13
Views: 1182

Re: Asset Allocation Review Requested

Just wanted to thank the Bogleheads again for contributing to this thread and this forum and the wiki. I have learned a lot in the last couple of months since I found this place. I developed an IPS which includes a self imposed restriction on alterations of my AA (no changes greater than 5% points p...
by EJE
Thu Aug 01, 2013 11:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation Review Requested
Replies: 12
Views: 1090

Re: Financial Plan

Matthew, Congrats on graduating and landing a nice job. I'd suggest prioritizing your investing as follows: 1. Fund your 401(k) to the level of match. 2. Build an emergency fund of $6000 to $12,000. 3. Fully fund Roth IRA 4. Aggressively pay down the student loan as fast as possible before any addit...
by EJE
Wed Jul 31, 2013 10:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Financial Plan
Replies: 9
Views: 924

Re: 401(k) match on deductible contributions only

Something doesn't sound right. A 401k limits you to $17,500 in deductible contributions. If you put $17,500 into your 401k in each of your scenarios, why is the total match amount different? Some companies will only give the full match if you spread out your contributions evenly throughout the year...
by EJE
Mon Jul 29, 2013 9:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401(k) match on deductible contributions only
Replies: 2
Views: 435

401(k) match on deductible contributions only

I posted about my situation previously here: http://www.bogleheads.org/forum/viewtopic.php?f=1&t=119077 Since that time, I've learned a lot from this forum and have encountered what might be a unique question about my 401(k). So here goes... I was considering increasing my 401(k) contribution su...
by EJE
Sun Jul 28, 2013 10:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401(k) match on deductible contributions only
Replies: 2
Views: 435

Re: What Are You Using for Your Emergency Funds?

I am blessed with a TSP so I keep much of the emergency fund in the magical G-Fund (2.125% at the moment) with a fair chunk of equities in my taxable account. If I need to tap the emergency fund I sell the amount of taxable equities I need and then in the TSP move an equal amount of G-Fund to a cor...
by EJE
Thu Jul 25, 2013 10:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: What Are You Using for Your Emergency Funds?
Replies: 63
Views: 4603

Re: Age 24: Starting my 401k

I like to count cash toward the bond (& cash) portion of the target asset allocation. This makes a big difference for folks like you that are just starting to make contributions to a portfolio. Ref thread on this topic: http://www.bogleheads.org/forum/viewtopic.php?f=10&t=119309 Assuming you...
by EJE
Mon Jul 22, 2013 11:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Age 24: Starting my 401k
Replies: 16
Views: 1871

Re: Young person needs portfolio advice

You may be overlooking the bigger picture here. You mentioned you have nothing saved for retirement, so what is your plan to fund retirement? Do you have a company plan? I think allocating all of this 200k to a home is probably not optimal for you because if you invested a good portion of this for ...
by EJE
Sat Jul 20, 2013 1:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Young person needs portfolio advice
Replies: 10
Views: 989

Re: Late 30s: 2 Years In

Agree with the other replies that you should work toward building up your cash reserves / emergency fund. You mentioned daycare -- that's pretty expensive. Your expenses will go up when the child arrives and so it will help your stress level to have more cash reserve. Do you have much home equity ? ...
by EJE
Wed Jul 17, 2013 11:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Late 30s: 2 Years In
Replies: 42
Views: 4398

preferred accounting for cash in AA?

I've just started reading the forum recently, but have noticed that several of the posters neglect to consider their cash when they describe their asset allocation. I believe this is skewing these folks (particularly the younger investors with smaller portfolios) to inadvertently pursue more conserv...
by EJE
Sun Jul 07, 2013 12:12 am
 
Forum: Investing - Theory, News & General
Topic: preferred accounting for cash in AA?
Replies: 15
Views: 928

Re: 401k/rollover IRA, and my car

I'd suggest you invest more aggressively for the next few years. Your portfolio balance is currently less than your cash balance, so I'd suggest you keep 100% of your portfolio in stocks until it grows to be at least 3x your cash savings. I like to think of cash and bonds together when thinking abou...
by EJE
Sat Jul 06, 2013 2:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401k/rollover IRA, and my car
Replies: 19
Views: 1877

Re: Portfolio review please - 28 y/o couple

Here are a few suggestions: 1. I agree with Default User BR that things really should not be that tight with your dual income (no kids ?). You just need to create a budget and live beneath your means. 2. Is the land worth more than you owe on it ? If so, suggest you sell it and use the money to pay ...
by EJE
Fri Jul 05, 2013 12:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio review please - 28 y/o couple
Replies: 7
Views: 841

Re: Asset Allocation Review Requested

Congratulations, you are doing well and should be giving the rest of us advice. A few observations. Reduce your company stock if you can. This might be your 401k match and the company may not allow you to sell. 18% of your retirement in one company is too much. Your asset allocation looks good. Sta...
by EJE
Thu Jul 04, 2013 8:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation Review Requested
Replies: 12
Views: 1090

Re: Asset Allocation Review Requested

Welcome to the forum :) . Here is a fairly standard view of the general investing priority (best priority plan depends on individual tax situation, quality of 401k offerings, etc .), that could help you accommodate the idea of career change/job change/early retirement while avoiding the dilemma abo...
by EJE
Thu Jul 04, 2013 8:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation Review Requested
Replies: 12
Views: 1090

Re: Asset Allocation Review Requested

You don't have anywhere near too much in retirement accounts. .... Look into gifting appreciated stocks to your kids and having them recognize the capital gains every year, staying under the kiddie tax threshold. But consider the financial aid implications -- having the oldest two in college at the...
by EJE
Tue Jul 02, 2013 9:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation Review Requested
Replies: 12
Views: 1090

Re: Asset Allocation Review Requested

As to asset allocation, in my opinion you should consider a higher allocation to bonds perhaps in the area of 30 - 35%. Wiki article link: Asset Allocation ; and 2011 regression, % stocks vs age . On asset allocation, I would also be concerned about having 18% of the portfolio in company stock, tha...
by EJE
Tue Jul 02, 2013 9:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation Review Requested
Replies: 12
Views: 1090

Re: Asset Allocation Review Requested

There is a way to take money out of retirement accounts early without penalty. This is known as IRS Rule 72(t) . If you take "substantially equal periodic payments" such as monthly or annually, based on your life expectancy then you avoid the 10% penalty. I think the IRS has tables for yo...
by EJE
Tue Jul 02, 2013 6:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation Review Requested
Replies: 12
Views: 1090

Re: Portfolio Allocation Assistance

Hello mmicha, I'm probably a lot more aggressive than many posters, but I like to consider my savings as counting toward my cash & bonds allocation. By doing this, I would come up with following for you: Total Investable Funds: ~ $180k 70% stock allocation: ~$126k 30% cash & Bonds: ~ $54k Us...
by EJE
Tue Jul 02, 2013 1:50 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Allocation Assistance
Replies: 15
Views: 731

Asset Allocation Review Requested

Hi all. Just joined the forum. I actually found this forum a few weeks ago after stumbling across the Boglehead Guide to Investing book at the local library. I'm enjoying the reading. I've been a big fan of Mr. Bogle and have read his books. But there is a lot of new content here and I am learning a...
by EJE
Tue Jul 02, 2013 12:49 am
 
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation Review Requested
Replies: 12
Views: 1090

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