Search found 23 matches

by LongTerm1
Sun Oct 02, 2022 5:32 pm
Forum: Personal Investments
Topic: Vanguard 3 month Treasury bill
Replies: 11
Views: 2871

Re: Vanguard 3 month Treasury bill

Can you please explain how we would buy 3 month T-bills through vanguard. This is new to me.

I’m trying to figure out something to do with cash. VMRXX seems like a good option for a money market. Any suggestions?
by LongTerm1
Sun Aug 06, 2017 12:24 pm
Forum: Personal Investments
Topic: High Income Earner Humbly Seeks Advice
Replies: 83
Views: 28993

Re: High Income Earner Humbly Seeks Advice

Thank you all for your replies. PoF did an excellent job designing and articulating my story. I hope to have a continued relationship. Finance-MD I know many have said I have already won the game which is true in regards to the amount money I can save/expenses but still there are so many variables in my life with three little kids, career... life. I'm fine with taking a little more risk/reward and bumping the allocation from 60% to 65%. I so wish Vanguard has some type of pie chart or something that told us the percentage you had in each fund. Would make buying and reallocating super easy. I have been told that most use an excel spreadsheet. I haven't gotten that far. Bonds. Some comments on Boglehead said I should consider a total bond fun...
by LongTerm1
Sat Aug 05, 2017 7:38 pm
Forum: Personal Investments
Topic: High Income Earner Humbly Seeks Advice
Replies: 83
Views: 28993

Re: High Income Earner Humbly Seeks Advice

Thank you all for your time and efforts. Based on this thread, Physician on FIRE highlighted my story and created an IPS based largely on your comments. The information that was offered, except a few, is truly valuable and I hope it proves useful for others. Invaluable for me. To further the conversation, I would recommend that each of you read the following two part summary article (Part I is an introduction and summary. link .) Part II has the IPS, discusses the DAF, 529s, and other recommendations from this thread. link ). I would also encourage you to read the comments. Based on all the recommendations, I've started the process of implementing the following: ** PLEASE ** If you feel obliged to comment and tell me what you would do diffe...
by LongTerm1
Fri Jul 07, 2017 2:57 pm
Forum: Personal Investments
Topic: Paid off the Mortgage!
Replies: 80
Views: 10830

Re: Paid off the Mortgage!

Well done! I completely agree with you. Paying off a mortgage is a huge milestone and provides a peace of mind unlike anything else.

Continue to make "monthly payments" to your investment accounts. Don't change anything.... apparently your strategy is working for you.

Congrats.
by LongTerm1
Fri Jun 09, 2017 2:50 pm
Forum: Personal Investments
Topic: High Income Earner Humbly Seeks Advice
Replies: 83
Views: 28993

Re: High Income Earner Humbly Seeks Advice

Livesoft & Finance-MD- So I had an opportunity to speak with an accountant today on DAF. I was not paying him but his reputation is something I strive to achieve. Straight shooter. As livesoft said before, my current accountant should of suggested this a long time ago. He didn't. He does my taxes but doesn't bring me suggestions. Basically he pushes papers. The accountant today said that typically a DAF is to donate money in your highest income years, let it grow over time so that you can give to charitable organizations over time. Basically for people with swings in income so your highest years offset your lower income years, allowing you to still give. His belief was that most don't make large contributions (not sure why it would matt...
by LongTerm1
Thu Jun 08, 2017 9:50 pm
Forum: Personal Investments
Topic: High Income Earner Humbly Seeks Advice
Replies: 83
Views: 28993

Re: High Income Earner Humbly Seeks Advice

Both great articles.

I feel like I have lots of work to do. It's amazing how quickly your mindset changes from "how much can I make" to "how do I keep the money I've earned."

Thank you.
by LongTerm1
Wed Jun 07, 2017 5:19 pm
Forum: Personal Investments
Topic: High Income Earner Humbly Seeks Advice
Replies: 83
Views: 28993

Re: High Income Earner Humbly Seeks Advice

​Thank you all for your great advice and contributing to the conversation. It's interesting to see all the knowledge and different perspectives. Moneywise3- I'm glad to answer your question. Doctor. I understand my situation is different in some aspects but honestly it's all basically the same. Money is money and I truly feel blessed my family has not changed their mindset with increased income. Probably because we don't let it. Having toys in excess is a distant second to being financially secure. Of course what works for my family might not work for others. I hope I'm not painting a picture we do without. We just don't like clutter and like to limit the "noise" in our lives. Disability insurance.... it's crazy expensive. Once fi...
by LongTerm1
Tue Jun 06, 2017 1:32 pm
Forum: Personal Investments
Topic: High Income Earner Humbly Seeks Advice
Replies: 83
Views: 28993

Re: High Income Earner Humbly Seeks Advice

I really do need help with deciding on percentage & allocation for a plan in my situation. I think I will sleep better with a plan in writing. Help. Thoughts? If you can't decide, I would go 50/50 and call it a day. Your income vs your expenses means that whatever the market gives you will be nothing compared to what you are saving every year. You are your returns. The market isn't going to do a whole lot for you either way when you're saving 90% of your income every year. For what it's worth, people with extreme income to expenses ratio's tend to go very aggressive. The reasoning is since expenses are so low they can live off of the low bond % just fine, and let the stocks ride and never touch them. Warren Buffet I believe set up an a...
by LongTerm1
Mon Jun 05, 2017 8:55 pm
Forum: Personal Investments
Topic: High Income Earner Humbly Seeks Advice
Replies: 83
Views: 28993

Re: High Income Earner Humbly Seeks Advice

The defined benefit cash balance plan that allows you to put away $150k is a pension plan right? You are guaranteeing pension to your employees too correct? I think there's a strict rule on how much you are allowed to use from the pool. Do you understand exactly how it works? Can you just get away from it like you've alluded to? I am not an expert, but many in my career, at least towards the end, look to put away that much. However we were always told those defined benefit plans are not worth the trouble. You obviously don't need any of that money, but curious whether you know the complexities involved, and if you do, can you explain a bit for me. I hope you know it's not just another 401k with profit share...those are all defined contribu...
by LongTerm1
Mon Jun 05, 2017 5:44 pm
Forum: Personal Investments
Topic: High Income Earner Humbly Seeks Advice
Replies: 83
Views: 28993

Re: High Income Earner Humbly Seeks Advice

Maybe I'm missing something here. What's the point of working your a** off and training for 10+ years to earn $1.5mm annually and only spend $70k. Enjoy the fruits of your labor. Smell the roses. Take some awesome vacations with the family before school and youth commitments constrain the schedule. Have some fun. You've earned it. :sharebeer Reducing workload is in the future. I keep telling myself this is a marathon and not a sprint. I drive myself crazy with working more efficient. I honestly don't know what else I could do to optimize my production any more than I currently do besides hiring additional staff. Roth IRA- I don't think my wife or I qualify unless you are saying backdoor Roth. rrppve- honestly my wife and I are not doing wi...
by LongTerm1
Sun Jun 04, 2017 10:09 pm
Forum: Personal Investments
Topic: High Income Earner Humbly Seeks Advice
Replies: 83
Views: 28993

Re: High Income Earner Humbly Seeks Advice

Cutterinnj- what about advertising? Like livesoft said- flyers? Say you run an HVAC company and send out information to customers, TV ads, business cards, etc. that would easily costs you $5k. Accountant said if asked it needs to be a reasonable fee for work.
by LongTerm1
Sun Jun 04, 2017 10:05 pm
Forum: Personal Investments
Topic: High Income Earner Humbly Seeks Advice
Replies: 83
Views: 28993

Re: High Income Earner Humbly Seeks Advice

You like the Roth option for the kids which is GREAT and you should do it anyways, but in addition to the Roths, you should do 529 plans. And you might also look up Coverdell IRA to use for private school K-12. Your kids aren't getting any financial aid, so that is not something that should enter you mind at this stage of planning. And that tip about using a Donor Advised Fund (DAF) is a great one. You need one of those for charitable giving. Your accountant (parent?) should have already told you about that and you probably already have one. Mine is with Fidelity, but Vanguard, Schwab and others also have them available. I am going to setup a 529 plan asap with vanguard and I'll put the $140k in it. I also wanted to clarify earlier- my par...
by LongTerm1
Sun Jun 04, 2017 7:46 pm
Forum: Personal Investments
Topic: High Income Earner Humbly Seeks Advice
Replies: 83
Views: 28993

Re: High Income Earner Humbly Seeks Advice

You make more money doing your job than worrying about AA at this point So 1/3 each in a 3 fund portfolio in all accounts with bonds being tax exempt in taxable 70 from each parent *2 parents *3 kids in 529s Fund Roth for each kid for their retirement Then figure out what you want to do with your life in 4-5 years Bring in partners? Do mission work? Teach, write etc etc Get a good lawyer for asset protection Work like you are for 4-5 years and you have set up your family for reasonable expense lives At that point, optimize everything for next stage of life and then worry about AA Good luck I agree with you and plan on working like this for 7 years and then figure out everything from there. Right now I just need to accumulate. I just asked ...
by LongTerm1
Sun Jun 04, 2017 7:27 pm
Forum: Personal Investments
Topic: High Income Earner Humbly Seeks Advice
Replies: 83
Views: 28993

Re: High Income Earner Humbly Seeks Advice

I just received in the mail a very nice flyer of a new dental practice in town. The photos used were of the dentist, their spouse, and their adorable children all with fantastic smiles! I bet those kids got paid modeling fees for this bit of marketing. I have heard of dentist doing it for their practices. Don't forget photos on websites and photos on the walls throughout the office or practice. To be clear from what I've been told, you pay a 10% penalty on the money you take out of a Roth before like 59.5 years of age but education is excluded. Now my children will be tax on that money each year they withdraw but it will be in their tax bracket not mine. It also affects their ability for financial aid and any grants. I will need to look in...
by LongTerm1
Sun Jun 04, 2017 5:34 pm
Forum: Personal Investments
Topic: High Income Earner Humbly Seeks Advice
Replies: 83
Views: 28993

Re: High Income Earner Humbly Seeks Advice

livesoft wrote:
LongTerm1 wrote:Thoughts?
My thoughts haven't changed from my previous post. Just get started. It really doesn't matter what allocation you select as long as it is tax-efficient and low-cost. I gave an example of that.
Livesoft- I really do value your advise and have followed your posts for some time now.

Do you think it would be too aggressive:

60% Total Stock Market, 15% Total international, 25% intermediate bonds

I guess it would make more sense to place the tax exempt bonds in a taxable account?

Allocate over 12 months?

Even consider a backdoor Roth?
by LongTerm1
Sun Jun 04, 2017 5:27 pm
Forum: Personal Investments
Topic: High Income Earner Humbly Seeks Advice
Replies: 83
Views: 28993

Re: High Income Earner Humbly Seeks Advice

patrick013 wrote:Investment Priorities - a backdoor Roth even a small one is better than taxable. Any Roth-401k available ?

Tax-efficient Fund Placement - proper fund placement will increase your return.

Portfolio Allocation Models - I'd probably go with 25% bonds (Munis) in your 3-fund portfolio.
Thanks for your response. I asked the pension plan people about Roth 401k and their answer was that I couldn't do it with doing the defined benefit cash balance program. They said the IRS makes you decide on one plan or the other.

Vanguard also said to go with 25% bonds. I just posted their allocation and it was way to many funds- like around 10 funds.
by LongTerm1
Sun Jun 04, 2017 5:19 pm
Forum: Personal Investments
Topic: High Income Earner Humbly Seeks Advice
Replies: 83
Views: 28993

Re: High Income Earner Humbly Seeks Advice

If you are actually living on 70k a year with 2-3MM saved... you can retire today. I'm seriously not kidding. Your done. At your income 1-3 more years and your kids, grandkids and even great grand kids wont' ever have to work either so long as you make smart decisions. What was the training you finished a few years ago? MLB spring training ??? :sharebeer :sharebeer (thats a joke/rhetorical - you dont need to answer) I don't know what the future holds so I don't know if $70k will work in the future. Right now these are the numbers that work perfectly for my wife and I promise we don't deal without. It's just small town living with good people. I finished residency and literally work all the time. Not sure if I can work this hard for the nex...
by LongTerm1
Sun Jun 04, 2017 5:08 pm
Forum: Personal Investments
Topic: High Income Earner Humbly Seeks Advice
Replies: 83
Views: 28993

Re: High Income Earner Humbly Seeks Advice

Did I read this right? You make ~$1.5M per year, have ~$3M in assets but have only $70k in expenses? Have you considered just calling it quits and enjoying your life? As for AA I would just do whatever let's you sleep at night. Money seems to be the least of your concerns. You're going to have more than you'll know what to do with if you keep working regardless of what your AA is. Yes you are correct. I live in a small town where I don't feel like we have to keep up with our neighbors. My parents/accountant are the only ones that know my salary.... and now bogleheads. Every year I write my wife a check for $70k (now cars are paid off, house paid off, health insurance is paid through business along with HSA account, cell phones paid through...
by LongTerm1
Sun Jun 04, 2017 2:37 pm
Forum: Personal Investments
Topic: High Income Earner Humbly Seeks Advice
Replies: 83
Views: 28993

Re: High Income Earner Humbly Seeks Advice

I was told a Roth IRA could be used for any education expenses (even private school), buying their first home or medical emergency. I was then told by them holding the IRA in their name it will affect any scholarships but with my two kids.... not counting on any. :shock: It can, but why would you want to? At the time they are in college it could still have 50+ years to continue growing tax free. At your income you should have more than enough to cash flow them through school. I agree. I just don't know where I'll be at in life. My wife is a firm believer in paying for kids schooling. I want to help as long as they are doing well and have some skin in the game. My hope would be to help them and if everything goes as planned I should be able...
by LongTerm1
Sun Jun 04, 2017 2:01 pm
Forum: Personal Investments
Topic: High Income Earner Humbly Seeks Advice
Replies: 83
Views: 28993

Re: High Income Earner Humbly Seeks Advice

How old are you (and your wife) now. How old are the kids? What kind of capital gains(losses) would you be looking at by selling off the individual stocks in your taxable account? Are you holding the Energy ETF hoping "energy will come back"? You are doing very well and just need a little guidance and nudging. My wife and I are both 38 years old. Two kids- 4 years old and 14 months old. Baby on the way. Also- my wife is on the payroll. If I sold the stock- I have a few super stars that have done well and lots of oil stocks that were bought for me and in the red. I just logged into vanguard and if I sold everything I'd be up $9k (that takes into account my few superstar stocks, terrible oil stocks and even one terrible REIT). Iron...
by LongTerm1
Sun Jun 04, 2017 1:48 pm
Forum: Personal Investments
Topic: High Income Earner Humbly Seeks Advice
Replies: 83
Views: 28993

Re: High Income Earner Humbly Seeks Advice

Livesoft is correct. Each child is a model and per my accountant can make up to like $5k per year- tax free. I can't remember exact number. He always has me make up a reasonable number for them.

I was told a Roth IRA could be used for any education expenses (even private school), buying their first home or medical emergency. I was then told by them holding the IRA in their name it will affect any scholarships but with my two kids.... not counting on any. :shock:
by LongTerm1
Sun Jun 04, 2017 1:17 pm
Forum: Personal Investments
Topic: High Income Earner Humbly Seeks Advice
Replies: 83
Views: 28993

Re: High Income Earner Humbly Seeks Advice

​JD- thank you for your response. Yes- I am a park it and leave it person. I really like the idea of the 3 fund approach. Again, I feel blessed to have figured out there is better, simplistic route to investing (hence my $205k of individual stocks I own from someone that was managing my money). You are correct I have little to no free time. The ETF I own with $19K is for energy when oil tanked. I do max out all tax sheltered accounts but need to figure out an overall plan for tax sheltered accounts and taxable accounts. My plan would be to figure of a plan- put existing money into work and then start putting money in over time to that same plan. Goals. I think I'll walk away from my current job around 50-55 years of age and should be able t...
by LongTerm1
Sat Jun 03, 2017 9:23 pm
Forum: Personal Investments
Topic: High Income Earner Humbly Seeks Advice
Replies: 83
Views: 28993

High Income Earner Humbly Seeks Advice

​Hello all First time poster and long time boglehead reader. I have been lurking for several years now and ready to design an investment plan and stick too it. I'm the type that will implement plan asap. Here are my numbers and I would love to hear your thoughts on a good long term plan. I'm fairly a quiet and private person so even sharing these numbers is harder than I had expected. Again- I am open too complete criticism and humbly know my situation might be different than some. Married, 38 years old, filing jointly. My wife is stay at home mom. Two children under the age of 4 years old with another surprise on the way. We do believe in supporting our church and charity work. Background: Assets- we have no debt on our primary residency, ...