Search found 65 matches

by Salmon
Tue Dec 31, 2019 8:49 pm
Forum: Personal Investments
Topic: Portfolio Review - sitting on lots of cash
Replies: 32
Views: 5057

Re: Portfolio Review - sitting on lots of cash

abuss368 wrote: Tue Dec 31, 2019 4:52 pm Is there any way some of the accounts could be consolidated and combined to simplify things?
I don't think so.

HER 401a and 403b are at TIAA and have essentially the same options of investments.

abuss368 wrote: Tue Dec 31, 2019 4:53 pm Remember there is nothing wrong with having cash. There is an old saying of "cash is king" and for good reason.
Agree, but I need to come up with a plan to deploy at least some of it.
by Salmon
Tue Dec 31, 2019 4:39 pm
Forum: Personal Investments
Topic: Portfolio Review - sitting on lots of cash
Replies: 32
Views: 5057

Re: Portfolio Review - sitting on lots of cash

Thanks for the great advice. I will digest the information and come back with some sample rearrangements to my portfolio for input.

Biggest thing I am struggling with is whether to put down 20% OR more for the house. There are differing viewpoints and each side makes a good argument.
by Salmon
Tue Dec 31, 2019 2:55 pm
Forum: Personal Investments
Topic: Portfolio Review - sitting on lots of cash
Replies: 32
Views: 5057

Re: Portfolio Review - sitting on lots of cash

I would recommend high quality, AA OR BETTER, tax free municipals. You should focus on in state municipals since you have a 7% state tax rate thus avoiding state and federal taxes. Look for 4% coupons or higher with calls in the 3-10 yr range. With your tax rate you might look for 5% coupons, 3-10 yr calls, high quality. These will probably be called on their call date but you will receive an attractive yield, better than Treasuries in most cases, and avoid taxes. I would avoid rust bucket states as well as California and Illinois. Best bets TX, FL, NC, GA,TN, AL, SC, WA, MO. Stick with GO’S or essential services bonds. This is pretty good advice. To be clear, I have not invested in individual bonds for many years. At one time, I held US T...
by Salmon
Sat Dec 28, 2019 9:08 pm
Forum: Personal Investments
Topic: Portfolio Review - sitting on lots of cash
Replies: 32
Views: 5057

Re: Portfolio Review - sitting on lots of cash

Questions: 1. How do I change my allocation best to get currently where I want to be? How to deploy cash in retirement accounts? 2. What should we do about the large sum of cash we are holding? We are looking for a home, but not in a rush and nothing has come up yet. 3. Am I nuts to keep hoarding cash until I find a house? Should I just invest half? 6) How much down payment for the house? Keep it to 20%? 7) Marginal tax rate is ridiculous. If I open taxable at Fido, what to get that I can hold forever? VTI? 8) Is it crazy to try to load 0.3 small and value given my income? Am I being too aggressive? 9) What to do about taxable individual stocks? Hold it? Sell and pay taxes on gains? In no particular order: 1. I'd hold onto any of the indiv...
by Salmon
Sat Dec 28, 2019 9:06 pm
Forum: Personal Investments
Topic: Portfolio Review - sitting on lots of cash
Replies: 32
Views: 5057

Re: Portfolio Review - sitting on lots of cash

Tax Rate: Marginal 37% Federal, 7% State In your tax bracket I don't see why you bother to have cash for emergencies or even to buy a home. After all, if you lose your job, then you are not going to be buying a big home and if you still have your job and investments go down, then you can easily use your salary to top them up. So take your cash and invest it, say in a tax-efficient, passively-managed, low-expense ratio index fund such as a Total US Stock Market index fund and maybe a tax-exempt muni-bond fund. Can you expound on this a bit further? Taxable $79K (was managed by a family member, but no longer) Cash $28K Invest this cash (see above). Individual stocks : C, KO, MCD, WMT Give these stocks away to your Donor-Advised Fund and take...
by Salmon
Sat Dec 28, 2019 9:00 pm
Forum: Personal Investments
Topic: Portfolio Review - sitting on lots of cash
Replies: 32
Views: 5057

Re: Portfolio Review - sitting on lots of cash

Another suggestion would be to load all of your information into the Fidelity Retirement Planner, it is very good, so good that I considered cancelling my Morningstar subscription. You can manually enter your non-Fidelity accounts and you can do pretty detailed analysis of your portfolio. In addition, if you have a Fidelity office in your area, you can schedule an hour's appointment with one of their advisors. Pretty much low pressure, they may gently suggest annuities and their wealth management services. Oddly enough, the advisor did mention their new Zero funds. A lot of the time was reviewing the retirement calculator. I did receive a follow up call a few months later and that was about it. The Fidelity people are friendly and knowledg...
by Salmon
Fri Dec 27, 2019 1:02 pm
Forum: Personal Finance (Not Investing)
Topic: Reductions to QBI - Clarity for S-corp and Sole Prop Income
Replies: 13
Views: 1184

Re: Reductions to QBI - Clarity for S-corp and Sole Prop Income

I am no expert in these matters, but, as we have discussed, neither are a majority of CPAs. If I were you, I would pay for a one time consult with a tax attorney. Once you have it figured out, it should be easier in the future. Or you can just do what spiritrider says as well
by Salmon
Fri Dec 27, 2019 10:39 am
Forum: Personal Investments
Topic: Portfolio Review - sitting on lots of cash
Replies: 32
Views: 5057

Re: Portfolio Review - sitting on lots of cash

peterwantstosave wrote: Fri Dec 27, 2019 9:40 am Hi, there,

Congrats on being in such good financial shape. Ned gives great advice.

I would recommend that you really think about how much of the 1.5mil you need for a house. Even in Cali, I would imagine prices vary a ton.

Then, I would think about a basic three fund portfolio (Stocks, Bonds, International). Mine is listed in the signature line, feel free to use if you wish.

I wouldn't use individual stocks, because I don't know enough about them to mitigate risk, but that choice is yours.

Keep costs and spending low and you'll be a multimillionaire very soon.

Be well, Peter
Thanks for the kind words.

Any suggestion or framework on how to think about how much of the 1.5mil I need for a house?
by Salmon
Fri Dec 27, 2019 9:25 am
Forum: Personal Investments
Topic: Portfolio Review - sitting on lots of cash
Replies: 32
Views: 5057

Re: Portfolio Review - sitting on lots of cash

Thanks for your input nedsaid! Some points : 1. I am not 100% convinced I should tilt. Tilting looks good on paper, but no sure how it would pan out in real life. From my reading, small cap + value should (big should) deliver 2.0% in extra returns. If one put in 10% in this strategy, one gets 0.2%, but putting 25% gets you a 0.5% premia. The 0.2% is, IMO, not worth it, but 0.5% is nice. On the flip side, there is the tracking error to tangle with. Given our relatively high income, I wonder if it is even worth it to try to capture this premia, which may or may not even exist in the future. Thoughts? 2. Given the high marginal tax, do you recommend putting all international and/or tilts in tax deferred? 3. Is there any financial sense in putt...
by Salmon
Thu Dec 26, 2019 7:18 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question
Replies: 7
Views: 748

Re: Optimizing salary vs QBI with a solo 401k

Anyone with any input? I've been trying very hard to find a competent CPA. I was working with one for several years and I found out via this board that many things she was doing were not correct. When I started looking into things and asking questions she dropped me as a client giving the reason she didn't have time. I met with several new ones this year, and settled on a new person I'm trying out. So far I still feel I'm on my own. We'll see. I was also also told by one of the CPAs regarding 401ks that other than basic questions, the more complex matters -- such as rules on Mega Back Door 401K -- are really a specialty areas best handled by a retirement planner. That certainly seems fair. But it does leave folks like us out on our own fig...
by Salmon
Wed Dec 25, 2019 5:33 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question
Replies: 7
Views: 748

Re: Optimizing salary vs QBI with a solo 401k

Anyone with any input?
by Salmon
Tue Dec 24, 2019 8:30 pm
Forum: Personal Investments
Topic: Portfolio Review - sitting on lots of cash
Replies: 32
Views: 5057

Portfolio Review - sitting on lots of cash

Emergency funds: Close to $1.5m (300K of this in Ally CDs) Debt: $0 Tax Filing Status: MFJ Tax Rate: Marginal 37% Federal, 7% State Age: late 30s Desired Asset allocation: target a factor load of ~0.3 in size and value Desired International allocation: 50% stocks and 1/3 of that EM Taxable $79K (was managed by a family member, but no longer) Cash $28K Individual stocks : C KO MCD WMT Current retirement assets His TIAA 401 - 5% TIAA Real Estate Account QREAR 0.85% His 401k Company One – pooled plan - 12% Individual stocks – 80/20 allocation - all US individual stocks Some company match Cannot change allocation His 401k Company Two @ Fido - about 25% Cash - 7% DLS - 7% FSKAX (Total Market Index) 5% FSPX (Intl Index) 5% FSSNX (small cap index)...
by Salmon
Sun Dec 22, 2019 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question
Replies: 7
Views: 748

Re: Optimizing salary vs QBI with a solo 401k

LateSpecialist wrote: Sun Dec 22, 2019 9:52 am I’m in a somewhat similar situation this year though with a single member LLC.

This is a scenario where a true tax professional may be worth the expense. It’s the ability to test scenarios using their dedicated software that you could benefit from, more than their know-how.

I’m looking forward to more informed answers as I navigate this myself.
Are you using a tax professional? I have one, but he just does not have a full grasp of this issue
by Salmon
Sun Dec 22, 2019 9:30 am
Forum: Personal Finance (Not Investing)
Topic: Tax question
Replies: 7
Views: 748

Tax question

All done
by Salmon
Sat Jun 09, 2018 8:19 am
Forum: Personal Finance (Not Investing)
Topic: Another home thread: 2mil / 40K in taxes
Replies: 59
Views: 7036

Another home thread: 2mil / 40K in taxes

Revisiting this again with updated stats. We are both 36, one toddler, one on the way and possibly more in the near future. We live in a very HCOL area. Houses we are considering are about $1.8-2mil with $30-40K in taxes. His income: ranges from minimum $500k - $800K (mostly closer to the lower number) Her income: currently about $300K, but this will be a lot lower in the next few years. She is planning to slow down and will likely be around a $100k/annum Current rent: $3000/month Debt: $0 Cash Savings: $1mil Retirement accounts: $750K combined No after tax investing accounts Expenses: about $120k annum (this includes everything EXCEPT the rent) Toddler 529 plan: $15K We expect our expenses to go up with our family growing as well home owne...
by Salmon
Fri Dec 29, 2017 11:52 am
Forum: Personal Investments
Topic: Hedgefund / private fund investments
Replies: 11
Views: 1023

Re: Hedgefund / private fund investments

retiredjg wrote: Fri Dec 29, 2017 11:44 am The hedge fund wants your small company to invest in it? I don't understand. Why would a company invest in a hedge fund? Whose money is invested - business or employee? Who stands to lose?
Company can invest profits - so the owners of the company stand to loose
by Salmon
Fri Dec 29, 2017 11:52 am
Forum: Personal Investments
Topic: Hedgefund / private fund investments
Replies: 11
Views: 1023

Re: Hedgefund / private fund investments

livesoft wrote: Fri Dec 29, 2017 11:42 am Also how do you know if the private investment firm didn't start 12 or more "funds" and now is approaching potential investors with the best performing of the 12 funds? This is particular a problem for something that is only 6 months old in a stock market where EVERYBODY was making LOTS of money.

You can bet they would not be trolling for new clients if they had a 6-month-old fund with mediocre results.

And maybe last year, all their funds tanked and they all had to find new jobs to start over.
This is the first time private firm has launched a fund - matter of fact the firm was only established FOR this fund. Just looking for ways to dissuade others from investing
by Salmon
Fri Dec 29, 2017 11:38 am
Forum: Personal Investments
Topic: Hedgefund / private fund investments
Replies: 11
Views: 1023

Hedgefund / private fund investments

Our small company has been approached by a private investment fund. It is a new fund, about six months old, and the returns so far have been great. It invests in sectors and fees are the usual for such investments. I am one of the few against this type of investment for reasons which are obvious to many here. What kind of due diligence needs to be performed before investing? What answers would you want to know if were considering such an investment?
by Salmon
Fri Nov 24, 2017 10:07 am
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Re: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way

Thoughts on using personal capital to get the allocation where I want? I read PC allows this type of use free
by Salmon
Wed Nov 15, 2017 5:17 pm
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Re: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way

Doing some more reading and perhaps 80/20 is indeed the way to go as it provides an acceptable balance of risk vs return

This is what I’m thinking :

20% bonds, 15% domestic SCV, 25% domestic market, 15% EM, 25% Intl

Thoughts?

Some other questions:

1. Should we superfund 529?

2. What to do with extra cash?

Worst case scenario is we cannot find a house cheaper than 2 mil - 20% of that is 400k -we have almost double that BUT this also includes emergency fund. I’m thinking to keep at least 500k in cash. What to do with rest? Invest? Superfund 529? Just keep it and pay more than 20% downpayment?
by Salmon
Tue Oct 31, 2017 7:06 pm
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Re: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way

Salmon, 100% stock only works in the long run. It does not work if you are going to reach your number in 10 years. That is not a long time aka long run. You need to start with the basic. A) How much you have now? B) How much do you save every year? C) When do you want to reach your number? D) What is the return rate that you need to get there? At this moment, based on what you posted so far, you do not need the return and the risk of 100% stock to get there. So, why are you doing this? KlangFool I have never thought about it this way, so thank you for showing me a different perspective. Does everyone have a number? I mean don't people work b/c they enjoy what they do? And I am not sure if 5mil is my number....? How does everyone know their...
by Salmon
Tue Oct 31, 2017 7:03 pm
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Re: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way

Salmon, 100% stock only works in the long run. It does not work if you are going to reach your number in 10 years. That is not a long time aka long run. You need to start with the basic. A) How much you have now? B) How much do you save every year? C) When do you want to reach your number? D) What is the return rate that you need to get there? At this moment, based on what you posted so far, you do not need the return and the risk of 100% stock to get there. So, why are you doing this? KlangFool I have never thought about it this way, so thank you for showing me a different perspective. Does everyone have a number? I mean don't people work b/c they enjoy what they do? And I am not sure if 5mil is my number....? How does everyone know their...
by Salmon
Sun Oct 29, 2017 9:55 am
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Re: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way

Salmon, you have been getting some excellent help from posters, but it appears that you may be missing some fundamentals in portfolio development and management. I don't know or sure, but I'm assuming you do not have a written plan or an investment policy statement. Those two things will help you get a handle on your portfolio as it relates to your goals. Use the links in the Getting Started section-- https://www.bogleheads.org/wiki/Main_Page What made you decide to use 100% stock? Since my labor capital is high and my savings not as high, I figured it may be wise to take more risk now to get where I want to be sooner What is your overall allocation to small caps? How did you choose the allocation? Right now, it is all over the place. I wo...
by Salmon
Sun Oct 29, 2017 9:52 am
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Re: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way

New annual Contributions Her 401a - 18K + some employer match Her 403b - 18K Her additional retirement account - 18K Her NEW Fido account - about 50K annual, but no monies yet Her VG Roth - $5500 His Company one - 18K + some employer match His Company two - about 40K/year His VG Roth - $5500 Total = $173k/yr + employer matches. I have begun to worry whether you will be able to tax shelter $173k/yr + employer matches as you plan to do. Perhaps I am worrying about nothing, or just don't understand your many plans/accounts. For example if a person has more than one employer and each employer offers a 401k, then I do not think that he or she is allowed to make employee of contributions of $18k per year to each 401k at each employer. The IRS ha...
by Salmon
Thu Oct 26, 2017 9:26 pm
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Re: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way

Salmon, 100% stock only works in the long run. It does not work if you are going to reach your number in 10 years. That is not a long time aka long run. You need to start with the basic. A) How much you have now? B) How much do you save every year? C) When do you want to reach your number? D) What is the return rate that you need to get there? At this moment, based on what you posted so far, you do not need the return and the risk of 100% stock to get there. So, why are you doing this? KlangFool I have never thought about it this way, so thank you for showing me a different perspective. Does everyone have a number? I mean don't people work b/c they enjoy what they do? And I am not sure if 5mil is my number....? How does everyone know their...
by Salmon
Thu Oct 26, 2017 9:23 pm
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Re: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way

I agree with KlangFool , based in what you have posted so far, that your goal seems to be in reach without taking an unnecessary risk with a 100% stock allocation. How do I rebalance what I have to what I want? Assuming 80/20 or 100/0? What type of account is her "future" retirement account, which will receive $50k next year? Do you have any information on what funds will be available in it, such as any small-cap value funds? So the future account will be solo 401K account for a new business venture. Into this account, she would contibute profit sharing from the business, which I am should be about the max or $50K. The account is open now, but no contributions yet so will just lump sum once exact amount calculated around tax time...
by Salmon
Wed Oct 25, 2017 8:10 pm
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Re: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way

OP, I am a big picture type of person. So, would you please summarize your financial situation. 1) Gross income -> above 400K -> okay. That is enough to go on. correct 2) Emergency fund plus down payment -> 700K correct 3) Plan to buy a 2 million dollar house. not necessarily - the house MAY cost up to 2 mil, but plan is to buy something cheaper likely between 1mil - 1.5mil 4) Annual savings? -> Too hard for me to follow and try to add up all the numbers. Could you please add them up? I have not calculated this. Roughly, the 700K was saved since last Sept. Roughly, estimated savings per month currently is 50K not including contributions to retirement plans 5) Annual expense? -> How about an estimate? About 100K per annum would be my guess ...
by Salmon
Wed Oct 25, 2017 8:08 pm
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Re: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way

OP, Let's go back to the big picture. 1) What is your number? Do you have one? Haven't given number a thought really. Just had a newborn so FI has not been on the front burner as sleep deprived :mrgreen: . We are also in our mid 30s. If I had to guess, I would say number is $5mil+ with no debt? 2) What is your financial goal? To achieve the said number w/o drastically cutting down lifestyle and making sure family is taken care of i.e. kids education, etc etc (have life insurance in place btw) For example, if your goal is to be Financially Independent as soon as possible, you could get there with your savings (600K per year) and conservative investment in 5 years or less. At your saving rate, you do not need to take the risk of 100% stock. ...
by Salmon
Wed Oct 25, 2017 11:22 am
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Re: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way

OP, Let's go back to the big picture. 1) What is your number? Do you have one? Haven't given number a thought really. Just had a newborn so FI has not been on the front burner as sleep deprived :mrgreen: . We are also in our mid 30s. If I had to guess, I would say number is $5mil+ with no debt? 2) What is your financial goal? To achieve the said number w/o drastically cutting down lifestyle and making sure family is taken care of i.e. kids education, etc etc (have life insurance in place btw) For example, if your goal is to be Financially Independent as soon as possible, you could get there with your savings (600K per year) and conservative investment in 5 years or less. At your saving rate, you do not need to take the risk of 100% stock. ...
by Salmon
Wed Oct 25, 2017 11:16 am
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Re: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way

OP, I am a big picture type of person. So, would you please summarize your financial situation. 1) Gross income -> above 400K -> okay. That is enough to go on. correct 2) Emergency fund plus down payment -> 700K correct 3) Plan to buy a 2 million dollar house. not necessarily - the house MAY cost up to 2 mil, but plan is to buy something cheaper likely between 1mil - 1.5mil 4) Annual savings? -> Too hard for me to follow and try to add up all the numbers. Could you please add them up? I have not calculated this. Roughly, the 700K was saved since last Sept. Roughly, estimated savings per month currently is 50K not including contributions to retirement plans 5) Annual expense? -> How about an estimate? About 100K per annum would be my guess ...
by Salmon
Wed Oct 25, 2017 10:22 am
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Re: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way

OP, I am a big picture type of person. So, would you please summarize your financial situation. 1) Gross income -> above 400K -> okay. That is enough to go on. correct 2) Emergency fund plus down payment -> 700K correct 3) Plan to buy a 2 million dollar house. not necessarily - the house MAY cost up to 2 mil, but plan is to buy something cheaper likely between 1mil - 1.5mil 4) Annual savings? -> Too hard for me to follow and try to add up all the numbers. Could you please add them up? I have not calculated this. Roughly, the 700K was saved since last Sept. Roughly, estimated savings per month currently is 50K not including contributions to retirement plans 5) Annual expense? -> How about an estimate? About 100K per annum would be my guess ...
by Salmon
Tue Oct 24, 2017 10:06 am
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Re: Please help! Portfolio mess - should I get a financial advisor?

With that said, international allocation global market cap is 50%. The labor capital (in my case huge) would argue for tilting more to international. I can ignore the noise and add more international and consider using that to lower equity allocation some (which for me would net invested assets 1mil). So with global market cap at 50% international (1/4 of that being EM) my plan is 60% and 1/3 of that EM. Is that sound logic? My concern with your 60% International and 40% USA equity position is simpler - it is a bet AGAINST the US economy. If you look at historical world returns, the USA has been the powerhouse leader. Do you have specific information that the USA's position of leadership as an economic powerhouse will lag other economies g...
by Salmon
Mon Oct 23, 2017 12:14 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Non-US Valuations Look Attractive
Replies: 82
Views: 13173

Re: Larry Swedroe: Non-US Valuations Look Attractive

Does one account for his/her labor capital when deciding non-US equities?

For example, global intl cap is 50%. Since i am in the US and my labor capital being on the younger spectrum is huge and tied ONLY to the US market, does it make sense for me to overweight intl market cap and go to say 60% intl with 1/3 of that EM?
by Salmon
Mon Oct 23, 2017 10:36 am
Forum: Personal Investments
Topic: Is it ok to have 100% stocks, 15 years+
Replies: 97
Views: 14582

Re: Is it ok to have 100% stocks, 15 years+

No right answer. I plan to be 100% equities until I hit a milestone and then will scale back
by Salmon
Mon Oct 23, 2017 9:17 am
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Re: Please help! Portfolio mess - should I get a financial advisor?

in_reality wrote: Sun Oct 22, 2017 8:27 pm
Salmon wrote: Sun Oct 22, 2017 1:49 pm
BolderBoy wrote: Sun Oct 22, 2017 11:56 am
Salmon wrote: Fri Oct 20, 2017 11:24 pm Desired International allocation: 60% of stocks (1/3 of this EM)
This is in essence a bet AGAINST the US market. Are you USA-based?

In general it is a big mistake to bet against the USA if you are investing as a person subject to USA taxation.
Thanks for replying. Can you please clarify further how this is a potential tax mistake?
Actually it's a potential concern.

If international equities are in taxed sheltered, you can't claim the foreign tax credit on your income tax return.

So sometimes people prefer international in taxable. Then again, the yield is higher so it somewhat offsets.
Noted.

Since in my case, I do not have taxable, it would be recommended to hold Intl in the available accounts correct?
by Salmon
Sun Oct 22, 2017 1:49 pm
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Re: Please help! Portfolio mess - should I get a financial advisor?

Desired International allocation: 60% of stocks (1/3 of this EM) This is in essence a bet AGAINST the US market. Are you USA-based? In general it is a big mistake to bet against the USA if you are investing as a person subject to USA taxation. Thanks for replying. Can you please clarify further how this is a potential tax mistake? From what I understand, there is no "right" answer to how much intl. Key questions for me: 1 how much tracking error risk relative to US am I willing to accept? 2 How much my labor capital (tied to US) is relative to financial assets? So when one is young, labor capital is high percentage typically and that would argue to diversify more to international With that said, international allocation global ma...
by Salmon
Sun Oct 22, 2017 11:50 am
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Re: Please help! Portfolio mess - should I get a financial advisor?

Just in case it wasn't clear, I meant start by looking at: US 27.17% his 401k (must be us), his roth (small value), her roth (small value), her additional pre tax retirement account (US total market) INTL 17.69% her 403b, her 401a (TIAA Access International Equity Index * .85) [this index is 85% dev] EM 3.12% her 403b, her 401a (TIAA Access International Equity Index * .15) [this is 15% emerging] and then filling in with the wide range of Fido choices. And do post back what you are thinking! To clarify, you are suggesting : 1. Leave now and all future contributions: his 401k (must be us), his roth (small value), her roth (small value), her additional pre tax retirement account (US total market) as they are now 2. Switch now and all future ...
by Salmon
Sun Oct 22, 2017 10:43 am
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Re: Please help! Portfolio mess - should I get a financial advisor?

Target% - US 40% INT 40% EM20% To hit the EM and value targets, my inclination would be to use the 0.16% TIAA Access International Equity Index funds in her 401a and 403b accounts. They tilt a little growth but would leave you will money to allocate in your fidelity accounts where you have free choice. For instance: 27.17% his 401k (must be us), his roth (small value), her roth (small value), her additional pre tax retirement account 17.69% her 403b, her 401a (TIAA Access International Equity Index * .85) [this index is 85% dev] 3.12% her 403b, her 401a (TIAA Access International Equity Index * .15) [this is 15% emerging] --------------- 47.98% allocated 6.36% of allocation is small value Remaining 52.02% is in Fidelity where you can choos...
by Salmon
Sat Oct 21, 2017 10:42 pm
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Re: Please help! Portfolio mess - should I get a financial advisor?

Contributions New annual Contributions Her 401a - 18K + some employer match Her 403b - 18K Her additional retirement account - 18K Her NEW Fido account - about 50K annual, but no monies yet Her VG Roth - $5500 His Company one - 18K + some employer match His Company two - about 40K/year His VG Roth - $5500 $173,000/yr (+some employer match) in yearly contributions. Correct? New Contributions (and what looks best) Her 401a -10.4% (Int total, US S&P500, small US blend look best -but there maybe be others) Her 403b - 10.4% (Int total, US S&P500, small US blend look best -but there maybe be others) Her additional retirement account - 10.4% (int total market looks best) Her NEW Fido account - 28.9% (any at Fido) Her VG Roth - 3.18% (any ...
by Salmon
Sat Oct 21, 2017 10:37 pm
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Re: Please help! Portfolio mess

This is a new account that is open but no contributions yet for her. Will be making contributions around tax time and will have access to all funds at Fido. Ok will get to editing and making it cleaner I see. That was the biggest missing piece since usually we pick the best funds in the 401k and then choose around that. Anyway, i didn't see the ERs for EWX, FBIDX etc in your 401k but with all that you posted, you are probably tired of them. So here goes: Aaah another question, in Her additional pre-tax retirement account, is there $40k or $81k? Her additional pre-tax retirement account 40K Vanguard Institutional Index Fund (Institutional Shares) 0.12% $41,537.14 $40K I also added another account that was missing: His TIAA 401 TIAA Real Est...
by Salmon
Sat Oct 21, 2017 11:48 am
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Re: Please help! Portfolio mess

1. How do I change my allocation best to get currently where I want to be? Some clarification: by where you want to be, do you mean the asset allocation you outlined at the top, or do you mean something holistic--as in how do we get where we want to be in life? I mean getting the asset allocation 2. What should we do about the large sum of cash we are holding? We are looking for a home, but not in a rush and nothing has come up yet. Short answer: nothing. It's being set aside for a large down payment. When you say, "it could be upwards of 2 million," do you mean the down payment or the home itself? Money that has a purpose, an intended use, within five years should be put away somewhere boring and safe to preserve its capital: mo...
by Salmon
Sat Oct 21, 2017 11:37 am
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Re: Please help! Portfolio mess

Desired Asset allocation: 100% stocks (tilt to SCV) Desired International allocation: 60% of stocks (1/3 of this EM) That works out to be: 40% US 40% Intl 20% EM Is it your intention to underweight US equities? global market cap intl is 50%. the labor capital (in my case huge) would argue for tilting more to international. So with global market cap at 50% international (1/4 of that being EM) my rationale is to head 60% and 1/3 of that EM. I can live with that TE. Questions: 1. How do I change my allocation best to get currently where I want to be? You should post the ERs. It's rare a more expensive fund is worth it. I think I posted them all above? Did I not do it right? Only HER accounts at TIAA and one other have specific funds with ERs....
by Salmon
Fri Oct 20, 2017 11:24 pm
Forum: Personal Investments
Topic: Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way
Replies: 51
Views: 5620

Initial Portfolio Review- need help with AA, funds, etc. Want the boglehead way

Emergency funds: Close to $700K (also includes down payment for a home. Price of home may be as high as $2m) Debt: $0 Tax Filing Status: MFJ Tax Rate: 39% Federal, 9+% State Age: 30s Desired Asset allocation: 100% stocks (tilt to SCV) Desired International allocation: 60% of stocks (1/3 of this EM) 50% stocks and 1/4 of that EM low six-figures portfolio Current retirement assets Taxable $0 His TIAA 401 TIAA Real Estate Account QREAR $40k 0.85% His 401k Company One – pooled plan $30K Individual stocks – 80/20 allocation - all US individual stocks Some company match Cannot change allocation His 401k Company Two $111K Fido (all funds available) EWXSPDR INDEX SHS FDS S&P EMERGING MKTS SM CAP ETF $38K FBIDXFID U.S. BOND INDEX INVESTOR CLASS ...
by Salmon
Mon Oct 16, 2017 9:58 am
Forum: Personal Finance (Not Investing)
Topic: Wills/Trust/Estate Planning - How best to review legal documents
Replies: 21
Views: 2733

Re: Wills/Trust/Estate Planning - How best to review legal documents

Does the document carry out your wishes that you had outlined beforehand? Does it fulfill your needs now and in the future? If you had planned and listed these things and had them organized, then now you'd only have to verify that each of those items are carried out in the provisions of the trust. If your trust is more generic/boilerplate/legalese, then it is in your best interest to take as much time as needed to verify everything. If it is difficult then perhaps you can enlist a relative that is more versed in such things, someone with your best interest in mind. There are a number of excellent books on wills and trusts recommended on Bogleheads. It would not hurt to review them and go over everything you want again and then verify furth...
by Salmon
Sun Oct 15, 2017 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: Wills/Trust/Estate Planning - How best to review legal documents
Replies: 21
Views: 2733

Wills/Trust/Estate Planning - How best to review legal documents

I am in the process of estate planning. I met with a TA attorney a few times and we are now in the drafting stages of wills/trusts. At this point, I am forwarded documentation. This includes about 100 pages each for myself and spouse of legalese along with a one/two page summary.

How do I best go about reviewing this lengthy, legal document? I tried reading and the wording is obscure, and it would take a me significant amount of time to decipher the true meaning.

I trust the attorney, but my motto has always "trust but verify". Furthermore, there could be potential mistakes in this document.

Any thoughts?
by Salmon
Wed Aug 23, 2017 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Can we/should we afford a $2M house?
Replies: 96
Views: 21235

Re: Can we/should we afford a $2M house?

Bumping this up. I updated my original post. Debt free now and savings are growing.

Just an update - we are planning not to get this house for $2mil for a variety of reasons. No potential date for a home purchase yet. We will keep looking and only jump if we truly both want the place.



What do I do with the monies? Right now it is sitting in Ally Bank in a joint account, but FDIC only insures up to $500K for combined account. Open another account?

Do I just keep saving and saving and let the down payment grow? Do I invest it? Right now, I have no taxable account, only pre-tax which are being maxed. :confused
by Salmon
Sat Jul 15, 2017 6:20 am
Forum: Personal Finance (Not Investing)
Topic: Tips and advice from those who had their homes built
Replies: 13
Views: 1938

Tips and advice from those who had their homes built

We are considering building a new home from a national level builder. You pick land, and then a home design. The home design has many structural options and then you finish off with internals. One pays a premium for the internal but I suppose the benefit is that it goes in once the home is being built.

I do not anything about construction. On top of that, I have read the large builders usually have very one-sided contracts. All of this makes me a bit uneasy.

From those who have gone through the process, any advice?

What should one splurge on when building vs saving it for when the house is already built?
by Salmon
Sun Jul 09, 2017 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: Can we/should we afford a $2M house?
Replies: 96
Views: 21235

Re: Can we/should we afford a $2M house?

Dollar-wise, assuming your income remains as predicted and your jobs are intact, I agree it is certainly affordable. What is your best exit strategy should you need to move from your house (e.g. job transfer, loss of job, loss of income, etc.). You haven't been at your job very long, and even stable jobs are lost with today's environment of mergers/acquisitions, etc. in healthcare. Alternatively, a much more appealing job may become available. Your primary job and/or your consulting gig could lead you into a more appealing position that requires relocation. If such an opportunity arises, would you potentially have to forego the opportunity because of the large financially liability you have taken on? We can't control the markets, but we ca...