Search found 832 matches

by Lieutenant.Columbo
Tue Apr 25, 2017 4:45 pm
Forum: Investing - Theory, News & General
Topic: How do you do the Larry Portfolio?
Replies: 51
Views: 7603

Re: How do you do the Larry Portfolio?

The LP is just a unit of equities that can be in any ratio with safe bonds. It's not inherently 30/70. But when measuring your risk tolerance, you should take the equity position you'd hold untilted and reduce it by 1/3 (or alternately multiply the LP by 1.5) to get your equivalent risk tolerance a...
by Lieutenant.Columbo
Tue Apr 25, 2017 9:50 am
Forum: Investing - Theory, News & General
Topic: How do you do the Larry Portfolio?
Replies: 51
Views: 7603

Re: How do you do the Larry Portfolio?

Resuscitating this Topic to ask a question. In matjen's notes on the Larry Portfolio, we read ...I would suggest something like 50% US and 37.5% developed and 12.5% EM, roughly what global market cap is, but with slight US tilt (lower expenses and more tax efficient explain the slight tilt). I would...
by Lieutenant.Columbo
Mon Apr 24, 2017 7:44 pm
Forum: Investing - Theory, News & General
Topic: Larry Portfolio Equities: What % Each Market?
Replies: 50
Views: 3428

Re: Larry Portfolio Equities: What % Each Market?

[...]a factor investor would point out if they are exposed to all of Beta, small, and value, then if the returns to both small and value are zero or negative, they still have exposure to Beta. If the return to Beta is also zero or negative--well, then no one should have invested in stocks at all, b...
by Lieutenant.Columbo
Sun Apr 23, 2017 10:59 pm
Forum: Investing - Theory, News & General
Topic: Larry Portfolio Equities: What % Each Market?
Replies: 50
Views: 3428

Re: Larry Portfolio Equities: What % Each Market?

when I go to the World Stock Index, I am puzzled because 3% of Vanguard Total World Stock is 232 holdings , but two of the funds Larry says may be used for the LP show 1077 holdings (DFSVX) and 3727 holdings (DWUSX) . Is Total World is leaving out some of the market? You need to look at the bottom ...
by Lieutenant.Columbo
Sun Apr 23, 2017 9:19 pm
Forum: Investing - Theory, News & General
Topic: Larry Portfolio Equities: What % Each Market?
Replies: 50
Views: 3428

Re: Larry Portfolio Equities: What % Each Market?

What risks specifically are you trying to diversify here? Do you really need precision to accomplish that - do those particular risk have any relation at all to relative overall market cap? I am trying to diversify the same risks that someone who diversifies the whole market cap globally is; does t...
by Lieutenant.Columbo
Sun Apr 23, 2017 7:34 pm
Forum: Investing - Theory, News & General
Topic: Larry Portfolio Equities: What % Each Market?
Replies: 50
Views: 3428

Re: Larry Portfolio Equities: What % Each Market?

Equities[/b]: US : IJS....... Devel+Emerg : DWUSX Bonds : DFXIX (tax-deferred)+DFMPX (taxable) What is the effective expense of using these funds to you, divided by asset base? That is, including not just expense ratio but advisor fees. What are your expectations of the relevant premia going forwar...
by Lieutenant.Columbo
Sun Apr 23, 2017 1:36 pm
Forum: Investing - Theory, News & General
Topic: Larry Portfolio Equities: What % Each Market?
Replies: 50
Views: 3428

Re: Larry Portfolio Equities: What % Each Market?

NiceUnparticularMan wrote:I think tilting developed to SV is already a way of addressing overlap/contagion, but I do think EM is likely a bit better still. So personally, I would (and do) overweight EM for this reason.
so, what US-to-Devel-to-EM ratio would you use with a LP?
pezblanco wrote:Isn't the EM already chosen for you if you use DWUSX?
yes, using DWUSX one accepts a 4:1 Devel:Emergent ratio; but I'll consider rearranging my US/Devel/EM ratio if convinced I should
pezblanco wrote:if you have access to DFA funds why use IJS?
all my USA-SmallValue is Taxable and I thought IJS was a better choice than DFSVX
pezblanco wrote:The basic rule is 50% USA SV ... then divide developed to EM with some sort of philosophy
I was only trying to find out the reason why US being 50% of the world market cap implies US Small Value should be 50% as well
pezblanco wrote:I think many LP practitioners like myself then go with juicing the EM a little more than market weight given that the "true market weight" is very difficult to determine anyway.
so, if you do US Small Value 50%, how do you allocate Developed and EM?
Ketawa wrote:a number of methods described in this thread: Those that hold international equities at market-cap weight: what is your method?
I saw those, I just did not know if any of them is applicable to the LP
stlutz wrote:Just to restate the question, what you're wanting to do is not to own 3% each of US, developed, and emerging (in which case you'd do what Larry suggests). Instead, you're looking to own 3% of the total world market cap. If there happened to be no emerging markets smallcap companies, you don't want to own any of them. Have I got that right?
what I am trying to do is to NOT assume that just because Small Value is X% of the World Market that it is also X% of EACH of the individual markets (grouped as USA, Devel and EM for convenience)
stlutz wrote:What I'd do is download the holdings of a total world ETF like VT and see where the holdings of the bottom 10% by holding value are located.
I think this is a great suggestion
Theoretical wrote:...Moral of the story: I think 50/37/13 is a reasonable outlay for a Larry portfolio...
thank you for your input, I find it very helpful
Taylor Larimore wrote:I think it is a mistake to exclude the largest and most successful stocks from a portfolio
fortunately for us dissenters there are many roads to Dublin... :wink:
by Lieutenant.Columbo
Sun Apr 23, 2017 7:43 am
Forum: Investing - Theory, News & General
Topic: Larry Portfolio Equities: What % Each Market?
Replies: 50
Views: 3428

Re: Larry Portfolio Equities: What % Each Market?

thank you, nisiprius
nisiprius wrote:...Reducing the Risk of Black Swans: Using the Science of Investing to Capture Returns With Less Volatility, [...] what does it say?
I've read it and I cannot find where it addresses the OP question.
nisiprius wrote:As to the explanation behind these numbers, I think you must ask Larry...
I did and that's when
larryswedroe wrote: geography is independent of tilting
hence, this Topic, seeking for the input of the BHs'.
by Lieutenant.Columbo
Sun Apr 23, 2017 5:27 am
Forum: Investing - Theory, News & General
Topic: Larry Portfolio Equities: What % Each Market?
Replies: 50
Views: 3428

Re: Larry Portfolio Equities: What % Each Market?

aj76er wrote:...please post the funds that you plan to use
Equities: US: IJS.......Devel+Emerg: DWUSX
Bonds: DFXIX (tax-deferred)+DFMPX (taxable)
by Lieutenant.Columbo
Sat Apr 22, 2017 11:01 pm
Forum: Investing - Theory, News & General
Topic: Larry Portfolio Equities: What % Each Market?
Replies: 50
Views: 3428

Larry Portfolio Equities: What % Each Market?

Brief INTROD to the Larry Portfolio (LP) for those not familiar with it. The LP is: 1. Equities: USA Small Value + Developed Markets Small Value + Emergent Markets Value 2. Fixed Income: highly rated bonds and or CDs The LP-investor taylors the Equities:Fixed Income ratio to their ability/need/willi...
by Lieutenant.Columbo
Fri Apr 21, 2017 1:43 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe says "Goodby."
Replies: 319
Views: 31510

Re: Larry Swedroe says "Goodby."

... I've learned a lot by being forced to defend positions and have always been happy to debate the facts. Thanks again for all those posts of support. They made the effort worthwhile... Larry, I'm sad to see you leave the forum. In my opinion, your contribution to BH has been priceless. I never fe...
by Lieutenant.Columbo
Fri Apr 21, 2017 12:42 pm
Forum: Investing - Theory, News & General
Topic: What are the global market cap weights today?
Replies: 15
Views: 1602

Re: What are the global market cap weights today?

Ari wrote:I'd say the market cap-weighted portfolio is heavily tilted towards the US already. 50% in a single country. That's not very good diversification.
Ari,
How do you go about diversifying your market exposure across the Globe? Thanks.
by Lieutenant.Columbo
Thu Apr 20, 2017 8:16 pm
Forum: Investing - Help with Personal Investments
Topic: US/world 50/50, or rebalance according to market cap?
Replies: 24
Views: 3003

Re: US/world 50/50, or rebalance according to market cap?

siamond, are you suggesting here that if one decided today to invest according to the market cap (say your 50% USA-50% Ex-USA example), one is better off by sticking to the original market cap ratio rather than update the portfolio's ratio as/when the market cap changes significantly? Thank you. We...
by Lieutenant.Columbo
Thu Apr 20, 2017 8:13 pm
Forum: Investing - Theory, News & General
Topic: What are the global market cap weights today?
Replies: 15
Views: 1602

Re: What are the global market cap weights today?

I'm restarting this Topic where it was left off 3 months ago As mentioned, the weightings of the Vanguard Total World stock index funds are reasonably accurate and easy to find, and so are the weightings for the only other such fund I know, the iShares MSCI ACWI ETF, symbol ACWI. As you see they're ...
by Lieutenant.Columbo
Thu Apr 20, 2017 8:00 pm
Forum: Investing - Help with Personal Investments
Topic: US/world 50/50, or rebalance according to market cap?
Replies: 24
Views: 3003

Re: US/world 50/50, or rebalance according to market cap?

Edit: I'm restarting this Topic from where it was left off one year ago now ...My equities are 50/50 (US/world). Not market-cap, mind you, 50/50, period. And it will stay that way for a long time. I was taking this approach for simplicity, then reading some rebalancing literature from Dr Bernstein m...
by Lieutenant.Columbo
Thu Apr 20, 2017 12:37 pm
Forum: Investing - Theory, News & General
Topic: 2017 BOGLEHEADS CONFERENCE ANNOUNCEMENT
Replies: 128
Views: 10433

Re: 2017 BOGLEHEADS CONFERENCE ANNOUNCEMENT

In case this hasn't been suggested:

can/will/why not streaming the conference online fir those who cannot attend in person?
by Lieutenant.Columbo
Wed Apr 19, 2017 9:10 pm
Forum: Investing - Theory, News & General
Topic: Those that hold international equities at market-cap weight: what is your method?
Replies: 24
Views: 2208

Re: Those that hold international equities at market-cap weight: what is your method?

...I am curious to know how those who have chosen to hold international equity at market-cap weight currently accomplish this... ...If there is a need to rebalance, how often do you do this? What source do you use for the latest market weights? donaldson, 50% of my equities are Ex-USA (and 50% US, ...
by Lieutenant.Columbo
Sun Apr 16, 2017 1:48 pm
Forum: Investing - Theory, News & General
Topic: Emergency Fund: 125% Wellesley or 100% Limited-Term MUNIs?
Replies: 22
Views: 1449

Re: Emergency Fund: 125% Wellesley or 100% Limited-Term MUNIs?

...you really don't need to think in terms of an EF at all. What matters is liquidity, which means not having to sell something at a loss. If you're going to base your decisions on historical results for actual funds, then I think you'd conclude that your 50/50 portfolio provides sufficient liquidi...
by Lieutenant.Columbo
Sun Apr 16, 2017 1:19 pm
Forum: Investing - Theory, News & General
Topic: Emergency Fund: 125% Wellesley or 100% Limited-Term MUNIs?
Replies: 22
Views: 1449

Re: Emergency Fund: 125% Wellesley or 100% Limited-Term MUNIs?

Extra taxable income from Wellesley may have a snowball effect on the rest of your finances. An EF may be small compared to your whole financial picture, but be sure you don't end up in a higher bracket or other undesirable place Christine_NM, I didn't know there was any bracket above 39.6% :wink: ...
by Lieutenant.Columbo
Sun Apr 16, 2017 12:14 pm
Forum: Investing - Theory, News & General
Topic: Emergency Fund: 125% Wellesley or 100% Limited-Term MUNIs?
Replies: 22
Views: 1449

Re: Emergency Fund: 125% Wellesley or 100% Limited-Term MUNIs?

retiredjg wrote:...Wellesley is not a good choice for a taxable account for a person in a high bracket...
Wouldn't my after-tax return be larger with Wellesley compared to Limited-Term and to our current Ally Savings at 1%? Thanks
by Lieutenant.Columbo
Sun Apr 16, 2017 11:57 am
Forum: Investing - Theory, News & General
Topic: Emergency Fund: 125% Wellesley or 100% Limited-Term MUNIs?
Replies: 22
Views: 1449

Re: Emergency Fund: 125% Wellesley or 100% Limited-Term MUNIs?

...holding in Wellesley 125% of the number I choose for EF would put me at an EF of 100% if the fund happens to be in a 20% drawdown (19% has been worst drawdown in 47 yrs) at the time I need to cash the EF. Right, that is how you make sure you have enough money, but it does not avoid the second pr...
by Lieutenant.Columbo
Sun Apr 16, 2017 11:45 am
Forum: Investing - Theory, News & General
Topic: Emergency Fund: 125% Wellesley or 100% Limited-Term MUNIs?
Replies: 22
Views: 1449

Re: Emergency Fund: 125% Wellesley or 100% Limited-Term MUNIs?

...the question to ask is would you consider it acceptable or unacceptable if you had to sell Wellesley when the fund was way down as opposed to giving up the extra return but not being forced to take a loss on your investment. dbr, My thinking was that holding in Wellesley 125% of the number I cho...
by Lieutenant.Columbo
Sun Apr 16, 2017 10:35 am
Forum: Investing - Theory, News & General
Topic: Emergency Fund: 125% Wellesley or 100% Limited-Term MUNIs?
Replies: 22
Views: 1449

Emergency Fund: 125% Wellesley or 100% Limited-Term MUNIs?

Our Emergency Fund (EF) is 1 year of basic + frugally-discretionary expenses. We currently hold our entire EF in Ally Savings, at 1% interest rate. I am considering moving the bulk of the EF elsewhere, and I am considering Wellesley Income and Vanguard's Limited Term Tax-Exempt. Our Federal Income T...
by Lieutenant.Columbo
Fri Apr 14, 2017 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: The Stages of Retirement Saving
Replies: 55
Views: 10279

Re: The Stages of Retirement Saving

...I do plan to ensure all my licenses and certifications are good for another year or two when I leave my job Interesting. After I retire early, I'll keep my license active into old age, so that if I ever need to return to work, I could do so immediately, avoiding the re-activation process of an i...
by Lieutenant.Columbo
Wed Apr 12, 2017 1:16 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing to control risk doesn't make sense to me
Replies: 160
Views: 9900

Re: Rebalancing to control risk doesn't make sense to me

...the reason to rebalance is because you recognize a distinct risk in a particular asset, and you want to cap how much of that risk you're willing to be exposed to. JoMoney, I do understand how rebalancing during "normal market" periods helps stay at the risk level one chose when setting...
by Lieutenant.Columbo
Tue Apr 11, 2017 7:01 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing to control risk doesn't make sense to me
Replies: 160
Views: 9900

Re: Rebalancing to control risk doesn't make sense to me

I agree with the OP. I wrote a rebalancing simulation code. I didn't look at volatility, only cumulative returns. The bottom line was, how effective rebalancing is at improving returns depends on how negatively correlated the two asset classes are and how close their long term returns are individua...
by Lieutenant.Columbo
Tue Apr 11, 2017 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: The Stages of Retirement Saving
Replies: 55
Views: 10279

Re: The Stages of Retirement Saving

...I have decided to work less, though. This fall, I'll be dropping to 0.6 FTE, so I'll be working 40% less. This schedule will give me a lot more freedom and free time, and should be a good transition to a more complete wind-down of my career. PhysicianOnFIRE, I wonder how hard a hard time you'll ...
by Lieutenant.Columbo
Tue Apr 11, 2017 1:21 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing to control risk doesn't make sense to me
Replies: 160
Views: 9900

Re: Rebalancing to control risk doesn't make sense to me

Edited to cross out an unintended mistake. ...I don't see a rebalancing bonus for rebalancing between stocks and bonds since the future expected returns of stocks are so much higher than bonds. In this case, rebalancing really is risk control. You sell higher volatility, higher return stocks to buy ...
by Lieutenant.Columbo
Mon Apr 10, 2017 8:54 pm
Forum: Personal Finance (Not Investing)
Topic: The Stages of Retirement Saving
Replies: 55
Views: 10279

Re: The Stages of Retirement Saving

gasdoc wrote:I would like to hit that 0.6 FTE at age 60, and 0.0 FTE at age 62
gasdoc,
why not skipping 0.6 FTE and reach 0.0 FTE at age 61?
by Lieutenant.Columbo
Sun Apr 09, 2017 10:56 am
Forum: Investing - Theory, News & General
Topic: How to approach a tilted portfolio as retirement approaches
Replies: 20
Views: 1361

Re: How to approach a tilted portfolio as retirement approaches

...Again, are you saying this is an all or nothing situation? Suppose (just one possible hypothetical) that you understand 100% of U.S. in SV makes sense given the academic finance literature, but you are concerned you and your spouse combined might have trouble with tracking error... oh, NiceUnpar...
by Lieutenant.Columbo
Sun Apr 09, 2017 8:00 am
Forum: Investing - Theory, News & General
Topic: How to approach a tilted portfolio as retirement approaches
Replies: 20
Views: 1361

Re: How to approach a tilted portfolio as retirement approaches

Value investors must be strong and resilient, as well as independent-minded and sometimes contrary. You don't become a value investor for the group hugs. Indeed, one can go long stretches of time with no positive reinforcement whatsoever. So suppose you (or you and your spouse, who may not be into ...
by Lieutenant.Columbo
Sun Apr 09, 2017 6:26 am
Forum: Personal Finance (Not Investing)
Topic: The Stages of Retirement Saving
Replies: 55
Views: 10279

Re: The Stages of Retirement Saving

...Phase 1: I will have saved enough in retirement accounts that if this savings continues to grow at a reasonable rate (say 7%) then I can expect to hit my target retirement number (adjusted for inflation) at the age of 65. This will require that I continue to work but with a lot more flexibility ...
by Lieutenant.Columbo
Sat Apr 08, 2017 9:15 pm
Forum: Investing - Theory, News & General
Topic: How to approach a tilted portfolio as retirement approaches
Replies: 20
Views: 1361

Re: How to approach a tilted portfolio as retirement approaches

...psychology, emotions, relationships, and so on are actually powerful forces, and from another perspective we pretend they don't matter at our peril. So if, say, for really a small price in terms of financial efficiency you could buy yourself a lot happier relationship with your spouse, or just m...
by Lieutenant.Columbo
Sat Apr 08, 2017 11:07 am
Forum: Personal Finance (Not Investing)
Topic: The Stages of Retirement Saving
Replies: 55
Views: 10279

Re: The Stages of Retirement Saving

... I continue to work for what I call financial freedom , and you've referred to as phase 3. I've defined it as having 25x (core expenses + 2x(discretionary expenses))... PhysicianOnFIRE, May I ask you about your FF plan? 1. how do you specifically track "core" versus "optional"...
by Lieutenant.Columbo
Sat Apr 08, 2017 5:39 am
Forum: Investing - Theory, News & General
Topic: Social Security for Millennials
Replies: 144
Views: 13326

Re: Social Security for Millennials

zaboomafoozarg wrote:My plan is [...] to get to the second bend point of the SSA calculation
exactly! :wink:
by Lieutenant.Columbo
Sat Apr 08, 2017 5:12 am
Forum: Investing - Theory, News & General
Topic: How to approach a tilted portfolio as retirement approaches
Replies: 20
Views: 1361

Re: How to approach a tilted portfolio as retirement approaches

... With a tilt towards SCV, Emerging Markets, etc... it is common knowledge that one needs to be dedicated for the longterm (decades) in order to realize the premium. With that thought, should one adjust their allocation as they approach retirement? [...] I suppose one possible plan could be to sw...
by Lieutenant.Columbo
Sat Apr 08, 2017 4:41 am
Forum: Investing - Theory, News & General
Topic: I don't want to retire until another bear market
Replies: 40
Views: 5821

Re: I don't want to retire until another bear market

Thank you 2015 and CurlyDave for sharing these very interesting insights.
by Lieutenant.Columbo
Fri Apr 07, 2017 7:13 pm
Forum: Investing - Theory, News & General
Topic: one last stupid question [What are "cash equivalents"?]
Replies: 44
Views: 4125

Re: one last stupid question

BanditKing wrote:...anything in a brokerage or mutual fund is liquid within a few days...
BanditKing,
would you be concerned about incurring capital gains tax liability if you had to cash out your VWIUX bucket? thanks
by Lieutenant.Columbo
Fri Apr 07, 2017 11:10 am
Forum: Personal Finance (Not Investing)
Topic: How does one determine their "number" and what exactly does it mean?
Replies: 92
Views: 6838

Re: How does one determine their "number" and what exactly does it mean?

TheTimeLord, thank you very much for elaborating ...My Number = ((((Base Expenses * ( 1 + Fudge Factor)) + Travel/Hobby Budget) *(1/(1-Projected Tax Burden))- Income Streams)*(100/Projected Real Rate of Return)... a few questions about your formula: 1. (how) does it account for inflation? 2. what le...
by Lieutenant.Columbo
Fri Apr 07, 2017 9:58 am
Forum: Personal Finance (Not Investing)
Topic: How does one determine their "number" and what exactly does it mean?
Replies: 92
Views: 6838

Re: How does one determine their "number" and what exactly does it mean?

TheTimeLord wrote:...We are currently at 128.5% of our number...
TheTimeLord,
how did you calculate "your number"? thanks.
by Lieutenant.Columbo
Fri Apr 07, 2017 8:52 am
Forum: Investing - Theory, News & General
Topic: Every DFA fund (ex-S&P 500) has underperformed the S&P 500 for the past decade
Replies: 104
Views: 10547

Re: Every DFA fund (ex-S&P 500) has underperformed the S&P 500 for the past decade

... one cannot judge a plan by the results, only by the logic prior to implementation . If one believes in diversifying across risk factors (and possibly adjusting overall AA accordingly), then that logic applies no matter what the time frame. The key is to stick to whichever approach one decides t...
by Lieutenant.Columbo
Fri Apr 07, 2017 6:29 am
Forum: Personal Finance (Not Investing)
Topic: How does one determine their "number" and what exactly does it mean?
Replies: 92
Views: 6838

Re: How does one determine their "number" and what exactly does it mean?

You take 3.4% of the balance as of the beginning of the withdrawal period (i.e. $34,000 of a $1M portfolio). Each year thereafter, you take out the same nominal amount of money ($34,000) plus the inflation for the prior year (i.e. if 2% CPI, then you withdraw 102% of $34,000 or $34,680). This conti...
by Lieutenant.Columbo
Thu Apr 06, 2017 10:05 pm
Forum: Personal Finance (Not Investing)
Topic: How does one determine their "number" and what exactly does it mean?
Replies: 92
Views: 6838

Re: How does one determine their "number" and what exactly does it mean?

...I just use the spreadsheet PV function. Let's say I'm 40, expect to live until 90, and want $70,000 per year in income. I have to make another assumption, that is what real rate to expect from my investments. 5% real from stocks, 1% real from bonds, 50/50 for an average of 3% for the portfolio. ...
by Lieutenant.Columbo
Thu Apr 06, 2017 9:25 pm
Forum: Investing - Theory, News & General
Topic: I don't want to retire until another bear market
Replies: 40
Views: 5821

Re: I don't want to retire until another bear market

...retirement gave me my life back. I thought that people who have to work have no idea how much of their "life" they're sacrificing while working. It's been astonishing to me to realize the degree to which no matter how much you earn, if you're working, you're still a serf. The controver...
by Lieutenant.Columbo
Mon Apr 03, 2017 10:10 pm
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 163
Views: 7052

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

...The largest holding is a 7-year PenFed CD at 3.49% APY [...] now I also have a small Roth REIT holding, with the bulk of my REIT fund back in traditional IRA as of tomorrow. The recharacterizations in 2014 and this year were sized to preserve my full education tax credit and stay below the effec...
by Lieutenant.Columbo
Mon Apr 03, 2017 8:53 am
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 163
Views: 7052

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

thank you very much
Kevin M wrote:...I personally hold all stocks except REITS, including SCV, in taxable,
interesting, I'm curious, would you mind sharing what asset class you hold in your Roth space? thanks!
by Lieutenant.Columbo
Sun Apr 02, 2017 9:42 pm
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 163
Views: 7052

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

earlier in this Topic ...the myth that it's better to hold high-expected-return, high-risk assets in a Roth than in a tax-deferred account. As grabiner (and the Wiki) points out, it could be marginally better if there's a reasonable probability that you could end up with a different marginal tax rat...
by Lieutenant.Columbo
Sat Apr 01, 2017 9:15 am
Forum: Investing - Theory, News & General
Topic: educate me on spending/cost in retirement
Replies: 27
Views: 2157

Re: educate me on spending/cost in retirement

dbr wrote:The rule does not account for taxes. You have to pay the taxes out of your withdrawals...
thanks, dbr
aren't those two sentences incompatible? I mean: if the X%-withdrawal rule doesn't account for taxes, how will the withdrawals pay for the taxes?
by Lieutenant.Columbo
Sat Apr 01, 2017 6:49 am
Forum: Investing - Theory, News & General
Topic: educate me on spending/cost in retirement
Replies: 27
Views: 2157

Re: educate me on spending/cost in retirement

...4%, increased annually for inflation. That comes out to $80k-$120K before taxes and investment expenses of all kinds... dbr, all along I thought the "X% rule of thumb" accounted for taxes; could one factor in annual income taxes when determining if they have enough to live on X%/year? ...
by Lieutenant.Columbo
Sat Apr 01, 2017 6:41 am
Forum: Investing - Theory, News & General
Topic: anyone factor in future inheritance?
Replies: 78
Views: 4769

Re: anyone factor in future inheritance?

celia wrote:...maybe the OP will die before the relative he/she expects to die first...
Celia,
In this case the OP's wouldn't have incurred any risk (nor benefit) by factoring in the inheritance since his life would have run out before his money did.

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