Search found 29 matches

by BVRFC
Mon Oct 02, 2023 3:27 pm
Forum: Personal Investments
Topic: Can I still go fire?
Replies: 9
Views: 2184

Re: Can I still go fire?

I (M55) and my spouse (F48) would like to retire early so we can spend time together. We have decided that we want to spend our retirement years in a middle income country where currently $3000 per month can support a family. Our child will be in college at that time (mostly paid for by in-laws and a 529) , but $3000 gives you an idea of what we can expect to need for basic living expenses. We'll probably need 1.5 to 2.0 times as much for travel expenses, etc, but in general we have modest requirements. So $1.7m in all. According to the SSA Actuarial Life Table, you can expect to live for 24.27 years, and your wife can expect to live for 34.04 years. https://www.ssa.gov/oact/STATS/table4c6.html In retirement, are you planning on spending $...
by BVRFC
Mon Feb 20, 2023 6:18 am
Forum: Personal Investments
Topic: Simplifying My Investments
Replies: 10
Views: 1689

Re: Simplifying My Investments

The C fund is an S&P 500 index. The S fund is a completion index. If you hold the two funds in a roughly 85/15 ratio, it approximates the total stock market. Some people find that worthwhile. Others don’t.

I would sell the BB and LUV and buy VTSAX. I would sell the VGSTX and buy enough VTIAX to make your total position $33k or whatever you decide to make your final international allocation. I would put the rest into VTSAX.

I would rebalance my TSP to 85/15 C/S or 100% C. Whichever you prefer.

I would sell the VIMAX and buy VTSAX.

I would not mentally segregate the children’s education fund. All funds are fungible. Focus on increasing net worth, and you’ll have more options when your children go to college. Consider opening a 529.
by BVRFC
Sat Jun 23, 2018 9:07 pm
Forum: Personal Finance (Not Investing)
Topic: Career Burn Out: Should I quit high paying job and take a sabbatical?
Replies: 55
Views: 9067

Re: Career Burn Out: Should I quit high paying job and take a sabbatical?

Quit your job and buy a plane ticket to Thailand. Live in a straw hut on the beach for $8 a day. I recommend Koh Chang. Come back and get a job again when you feel like it.

I'm not joking.
by BVRFC
Thu Jun 14, 2018 9:38 am
Forum: Personal Investments
Topic: Recently Paid Off School Loan - Millennial Couple Seeking Advice & Guidance
Replies: 17
Views: 1431

Re: Recently Paid Off School Loan - Millennial Couple Seeking Advice & Guidance

Curious to hear your reasons behind 100% equities and 0% international? Portfolio success rates for 30 and 60 year retirement periods increase as one approaches 100% equities. Total return increases as one approaches 100% equities. https://www.gocurrycracker.com/path-100-equities/ I have a strong desire to leave a bequest, so my investment timeline is longer than my lifetime, which also pushes me towards a 100% equities allocation. I like my job (commercial airline pilot), so I probably won't retire soon, but once I hit my FI number, I can focus on the type of flying that I like instead of the type of flying that is most profitable. I can also drop trips, and fly only one or two 3 to 5 day trips a month. I'm not planning early retirement, ...
by BVRFC
Wed Jun 13, 2018 5:25 pm
Forum: Personal Investments
Topic: Recently Paid Off School Loan - Millennial Couple Seeking Advice & Guidance
Replies: 17
Views: 1431

Re: Recently Paid Off School Loan - Millennial Couple Seeking Advice & Guidance

At 36 years old, I'm also 100% equities and 0% international equities, so I like your style. Like you, I do not have access to a total stock market index fund in my 401k, so I use an S&P 500 index fund. Personally, I use Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) in my taxable account. Thank you Pajamas. I've read a lot of posts debating the merits between TSM and S&P500. I've thought about it as well but for 401k, we don't have TSM as an option so S&P500 is the best alternative. For taxable, my rationale is that i could TLH/TGH between TSM and S&P500 (i could be wrong on this since that's just an story i read somewhere in my memory). What are the reasons for your preference for TSM besides a broader selec...
by BVRFC
Mon Jun 11, 2018 6:27 pm
Forum: Personal Investments
Topic: Fixed Income investments too conservative?
Replies: 59
Views: 5639

Re: Fixed Income investments too conservative?

galeno wrote: Fri Jun 08, 2018 7:44 pmI disagree with VTSAX (ETF = VTI) for stocks. Home country equity bias is a tilt. Better would be (ETF) VT. VT is an all world all cap equity ETF. It's the whole world haystack. I don't believe there is a MF equivalent of VT.
I think VTWSX, Vanguard Total World Stock Index Fund Investor Shares, would fit the bill for your strategy for a mutual fund instead of an exchange traded fund.

https://investor.vanguard.com/mutual-fu ... file/VTWSX

I agree with JL Collins regarding international funds.

http://jlcollinsnh.com/2012/09/26/stock ... l-funds-2/
by BVRFC
Mon Jun 11, 2018 6:19 pm
Forum: Personal Investments
Topic: Fixed Income investments too conservative?
Replies: 59
Views: 5639

Re: Fixed Income investments too conservative?

bikechuck wrote: Fri Jun 08, 2018 7:12 pmWhat in heaven's name are VTSAX and VBTLX?
VTSAX is the Vanguard Total Stock Market Index Fund Admiral Shares. VBTLX is the Vanguard Total Bond Market Index Fund Admiral Shares.

https://investor.vanguard.com/mutual-fu ... file/VTSAX

https://investor.vanguard.com/mutual-fu ... file/vbtlx
by BVRFC
Wed Jun 06, 2018 10:17 pm
Forum: Personal Investments
Topic: Fixed Income investments too conservative?
Replies: 59
Views: 5639

Re: Fixed Income investments too conservative?

RCL wrote: Wed Jun 06, 2018 10:10 pmIf you already have enough $$ for retirement & still have $$ for heirs, why take on more risk trying to get a higher ROI?
If one intends to leave a bequest, the investment horizon can be thought of in terms of the heirs' lifetimes. This would suggest a more aggressive asset allocation strategy.
by BVRFC
Wed Jun 06, 2018 10:12 pm
Forum: Personal Investments
Topic: Help me pick my vanguard investment
Replies: 39
Views: 3289

Re: Help me pick my vanguard investment

If it were me, I would put it all in VFIAX. I value simplicity.
by BVRFC
Wed Jun 06, 2018 9:59 pm
Forum: Personal Investments
Topic: Fixed Income investments too conservative?
Replies: 59
Views: 5639

Re: Fixed Income investments too conservative?

It's overly complicated. VTSAX and VBTLX are all you need.

http://jlcollinsnh.com/2012/06/06/why-i ... -advisors/
by BVRFC
Wed Jun 06, 2018 7:26 pm
Forum: Investing - Theory, News & General
Topic: Just added bonds to portfolio
Replies: 44
Views: 4302

Re: Just added bonds to portfolio

A frugal geographer wrote: Wed Jun 06, 2018 6:59 pm Thanks for the replies guys! My main objective in doing this was because I like the idea of having a set plan with a set rebalancing shedule and target. Now that it's already been implemented, I'll be sticking to this plan for the foreseeable future.

Our FIRE will be flexible, and we'll still be young and would have no problem getting a part time job to cover expenses in the event of a heavy market downturn. That's why 15 percent bonds is tolerable.
If you haven't already, read JL Collins' Stock Series. It is definitely worth your time.

http://jlcollinsnh.com/stock-series/
by BVRFC
Wed Jun 06, 2018 4:38 pm
Forum: Personal Investments
Topic: Please Help, Huge Decision
Replies: 26
Views: 4908

Re: Please Help, Huge Decision

After a certain point a 50% loss is probably much more unacceptable than a 100% gain is beneficial If you need $2 million to retire, and you are getting close to that chances are getting to $4 million does not buy that much more utility. However a 50% loss could be very costly. There is a popular point of view around here that if things go in the toilet just hang on 5 to 10 years and everything will be fine. That has been true since the early 80s, but hasnt always been true, especially internationally. By most historical measures today's markets are highly valued. Overweighting equities just seems irresponsible unless you don't need the money and are truly indifferent. Also if you plan to pass money on to others there are advantages to hav...
by BVRFC
Wed Jun 06, 2018 3:31 pm
Forum: Personal Investments
Topic: Just utilize the mega backdoor? Is it that simple?
Replies: 20
Views: 2725

Re: Just utilize the mega backdoor? Is it that simple?

For discussion purposes lets say I have 120k in a savings account. This could last me two years in an emergency if I play my cards right. This seems like a lot of cash. If you were willing to hold only $20,000 in cash, you would have 4 months of expenses on hand for an emergency, and that $100,000 would turn into $1,000,000 in 30 years at 8%. If you are able to invest ~$43,250 per year with expenses of $60,000 per year, you could be on the path to retire much sooner than traditional retirement age. Have you considered just investing the money in a taxable account? For many, however, a brokerage account is just as good. If during your retirement years you expect to earn less than ~$90k/year, staying below the 25% tax bracket, then all Long ...
by BVRFC
Wed Jun 06, 2018 1:24 pm
Forum: Personal Investments
Topic: Vanguard LifeStrategy Moderate: Keep, move, or go 3 fund?
Replies: 20
Views: 3484

Re: Vanguard LifeStrategy Moderate: Keep, move, or go 3 fund?

Hello all, Looking for some advice. I currently have my taxable (non-retirement) account in Vanguard LifeStrategy Moderate Growth (VSMGX). I currently am maxing out my retirement contributions, so I feel good there. However, I feel like with my non-retirement money, I am being too conservative. My wife and I (33 & 28, two kids) currently have an emergency fund in an online savings (1.6% APY) that could cover 5-6 months of living expenses as well as an HSA that would meet our family deductible for the year. I have no intention of touching the money in our taxable account for the foreseeable future. I'm looking at three options: 1) Keep VSMGX 2) Move it to Vanguard LifeStrategy Growth Fund (VASGX) 3) Separate it to Total Stock, Internati...
by BVRFC
Wed Jun 06, 2018 12:57 pm
Forum: Personal Consumer Issues
Topic: Advice for assisting 18 year old son after high school
Replies: 70
Views: 7274

Re: Advice for assisting 18 year old son after high school

Not to beat the dead horse, but this isn't the Vietnam era anymore. If the OP's son tests positive on a drug test, he will get kicked out. The OP mentioned drug use. If he's honest on his enlistment forms, he might not even be allowed to enlist to begin with, depending on the nature of the use. The military needs people who want to be there and are willing to meet standards. I never served during the Vietnam era. I was on active duty from 2004 - 2015. It allowed me to grow up in a highly structured environment with multiple people protecting me from the bad decisions I otherwise would have made. If the kid won't get clean, there isn't much you can do for him. Subsidizing his poor decision making will only lead to more poor decision making ...
by BVRFC
Wed Jun 06, 2018 12:51 pm
Forum: Personal Investments
Topic: Please Help, Huge Decision
Replies: 26
Views: 4908

Re: Please Help, Huge Decision

By this logic you should always overweight equities, because you have defined most all types spending as largely discretionary and not really necessary. If the market tanks, then wait another 5-10 years. In most scenarios investing supports spending goals. In your scenario spending supports investing goals. While it is true there is give and take, it seems like the tail is wagging the dog here. I think many people should invest more heavily in equities than commonly advocated here. I wouldn't call that overweighting, but if you want to, that's fine by me. Equities are highly likely to outperform fixed income over a 15 year time span. Consumption preferences are also highly likely to change over 15 years. I just can't see accepting the decr...
by BVRFC
Tue Jun 05, 2018 4:27 pm
Forum: Personal Investments
Topic: Please Help, Huge Decision
Replies: 26
Views: 4908

Re: Please Help, Huge Decision

So what happens if the market tanks 50%? Then his available funds have dropped by half for use 10-20 years down the road. Are you recommending he tap retirement accounts? I think this money is fungible argument has some problems but I’m going to put that in a separate thread in investing theory section and see what sorts out. If the market tanks 50%, then OP would have 9 - 14 years to recover before maybe wanting to use the money for a new home, college savings for the kids, new vehicle etc. OP could delay consumption, increase savings, or simply wait and see if the next 9 - 14 years offered better returns. $10,000 invested for 15 years at 10.2% would leave the OP with $42,926.35. $10,000 invested for 15 years at 5.4% would leave the OP wi...
by BVRFC
Thu May 31, 2018 4:40 pm
Forum: Personal Investments
Topic: Investment allocation taxable vs 401K
Replies: 3
Views: 645

Re: Investment allocation taxable vs 401K

I would up the 401k percentage. If you can, try to up it to 19%, and you'll max out your contributions at $18,500 per year. After that, contribute $5,500 to a non-deductible IRA and roll it over to a Roth IRA (backdoor Roth). After that, invest in taxable accounts.

As your goal is to build wealth for your kids, consider viewing your investment horizon as their lifetime instead of your lifetime. This would suggest a 100% equity allocation. I like simplicity, so I would just put everything in VTSAX and focus the rest of my energy on enjoying life.
by BVRFC
Thu May 31, 2018 4:26 pm
Forum: Investing - Theory, News & General
Topic: General Electric
Replies: 77
Views: 12832

Re: General Electric

sawyer_sully wrote: Tue May 29, 2018 7:16 pm I have held GE personally for the past few months, through the ups and downs. More and more people are telling me to sell and I am not quite convinced yet.

On one hand GE is a historically significant company that may just be going through a rough time with regards to profits and publicity. On the other hand they may really go out of business in the next few years.

What does everyone think about GE's rather uncertain future? Buying, holding, or selling?
Are you Warren Buffett? If not, don't try to pick individual stocks.
by BVRFC
Thu May 31, 2018 4:23 pm
Forum: Personal Consumer Issues
Topic: Advice for assisting 18 year old son after high school
Replies: 70
Views: 7274

Re: Advice for assisting 18 year old son after high school

Fletch wrote: Thu May 31, 2018 1:51 pmU S Marines
As a former teenage delinquent, former Marine, and currently successful adult, I recommend this strategy.

Why would your son work and start acting responsibly when he can not work and lounge around all day on your dime? Sell his car. Make him ride the bus to work. Tell him that the free rent at home ends in 12 months. Print off a piece of paper with directions to the local USMC recruiter's officer and tape it to his door.
by BVRFC
Thu May 31, 2018 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: Have $3m at 33, "approach to career" advice needed
Replies: 157
Views: 41206

Re: Have $3m at 33, "approach to career" advice needed

$3.2M * 0.04 = $128,000

$128,000 - $120,000 = $8,000

$128,000 - $100,000 = $28,000

You already won the game. Don't sound so glum. Move to a lake in a low cost of living area and pump gas at a marina part time to keep you from going stir crazy. Enjoy the time with your wife and child. Go back to work if/when you find something you think would be fun to do.
by BVRFC
Thu May 31, 2018 4:06 pm
Forum: Investing - Theory, News & General
Topic: Treasury yields drop, CD yields hold steady
Replies: 16
Views: 2990

Re: Treasury yields drop, CD yields hold steady

This seems complicated. I fail to see how that much effort would provide any benefit over just buying VBTLX.
by BVRFC
Thu May 31, 2018 4:01 pm
Forum: Personal Consumer Issues
Topic: Top Shelf Liquor Overrated?
Replies: 191
Views: 26060

Re: Top Shelf Liquor Overrated?

Liquor is overrated.
by BVRFC
Thu May 31, 2018 4:01 pm
Forum: Personal Investments
Topic: Please Help, Huge Decision
Replies: 26
Views: 4908

Re: Please Help, Huge Decision

BeautifulDisaster wrote: Thu May 31, 2018 12:41 pm Depending on how aggressive / conservative you could divide the money into various accounts like below:

50% VTSAX (or whatever fund you choose)
25% 10 year CD
15% 5 year CD
10% 1 year CD

If you need the money sooner you can fall back on the brokerage account or the 1 year CD.
VTSAX has a minimum investment of $10,000. By breaking up the $10,000, OP will be accepting higher expense ratios. Vanguard Total Stock Market Investor Shares (VTSMX) has expense ratios of 0.14%. VTSAX has expense ratios of 0.04%.
by BVRFC
Thu May 31, 2018 3:57 pm
Forum: Personal Investments
Topic: Please Help, Huge Decision
Replies: 26
Views: 4908

Re: Please Help, Huge Decision

I'm 30, I invest with Vanguard. I have a 403b through work that is a Target Date 2055 Fund. I have a Roth IRA capped at $5500 that is 100% VFINX. I have $10,000 sitting in my Money Market (Management?) Account and I need it to be allocated to something! I want the money to be accessible in approximately 10-15 years (new home, college savings for the kids, new vehicle etc). I don't want to worry about this $10,000 going towards "retirement" when I'm 60-65 etc, I want it to be an investment that grows and will be used in my 40s-50s. With that being said, I'm torn on if I should dump it all in a Target Date Fund or maybe split it with something like VTSAX? If I go with a Target Date Fund, I want it to be mainly in stocks not bonds, ...
by BVRFC
Wed Aug 09, 2017 1:31 am
Forum: Personal Finance (Not Investing)
Topic: Life at crossroads. What would you do ?
Replies: 198
Views: 25734

Re: Life at crossroads. What would you do ?

Guys, spouse is really attached to the Bay Area because of her line of work. She's apprehensive that she wont be getting an equivalent job (with a pension, great bennies etc.) in other parts of the country. On your suggestions for LCOL - I'm personally completely in favor of it, but am handicapped by my ignorance of life outside the Bay Area. If you have any specific suggestions for employer/location please drop me a quick line. I'll greatly appreciate it. My understanding is that LCOL is a short term mirage - employment opportunities are limited and once you're unemployed it takes a really long time to get your job back. Most of the mid-west is dying rust belt is it not ? Ditto for the southern bible belt cities. Seattle is a bright excep...
by BVRFC
Mon Jul 31, 2017 10:13 pm
Forum: Personal Investments
Topic: Starting a Roth IRA today
Replies: 7
Views: 1304

Re: Starting a Roth IRA today

Regulator23 wrote:I do have a 401K through my work. The fund is a Vanguard Target Retirement 2055 Inv (does that make sense?) Since I already have a target retirement fund, would you all suggest anything else that makes sense other than an index fund?
If you haven't already invested the money with Fidelity, the easiest thing to do would be to start a Roth IRA with Vanguard and invest the money in the Target Retirement 2055 fund at Vanguard. If you want to use Fidelity, the Fidelity Freedom Index 2055 (FDEWX) would do just fine.
by BVRFC
Sun Jul 30, 2017 1:44 pm
Forum: Personal Investments
Topic: Help me with my portfolio / strategy please :)
Replies: 11
Views: 1669

Re: Help me with my portfolio / strategy please :)

If you want to simplify your portfolio and decrease your equity exposure, you could do something like this:

Taxable Account:

Vanguard Total Stock Market Index Admiral Shares (VTSAX) - 60% of taxable account.
Vanguard Total International Stock Market Index Admiral Shares (VTIAX) - 40% of taxable account.

401K:

Fidelity Total Bond Market Index - 100% of 401K

This would give you roughly a 60/40 equity to bond split and be pretty simple.
by BVRFC
Tue Jul 18, 2017 9:43 pm
Forum: Personal Investments
Topic: Bonds in a Taxable Account.
Replies: 9
Views: 1667

Re: Bonds in a Taxable Account.

My first post. Hopefully someday I will be able to contribute some worthwhile advise like many of you do. Thanks! I am retired, have an 80K pension, $750K in a tax advantaged account. I also have approx. $100K in various taxable accounts to add to an existing Vanguard account. I live in California, house is paid for, and pay my full share of taxes. My question is: Do I go heavily into tax exempt bonds? Vanguard Intermediate tax exempt, long term, or California munis,long term or intermediate? I could do any of these as Admiral shares. I don't really need the money, but would like to fund a bad habit (cars!) if it were available. My current holdings are: $17K VTSAX $10K VTIAX $13K VBTLX Thanks! This is my first post, so if someone sees some...