Search found 8 matches

by yummy_tacos
Fri Feb 01, 2013 11:53 am
Forum: Personal Investments
Topic: Rebalancing Strategies
Replies: 9
Views: 1694

Rebalancing Strategies

Hi everyone! We're not sure how to go about rebalancing this portfolio. Any advice? (Slightly more specific questions below). Emergency Funds: We have 5-6 months at current spending levels (which are a tad high). Debt: Mortgage - 4.75% interest - 390% of current retirement money (We're looking into refinancing this closer to 3%...) Student Loan - 2% interest - 14% of current retirement money (Credit Cards - Paid in full monthly) Tax: Married filing Jointly In 2011, our effective Federal Income Tax Rate was 9.8% We have no state income tax Age: We're both in our late 20’s Desired Asset allocation: 80% Stocks, 20% Bonds 35% of Stocks in International New Annual Contributions 9% of current total to His 401(k) 13% of current total to the Roth I...
by yummy_tacos
Tue May 29, 2012 3:56 pm
Forum: Personal Investments
Topic: New to Investing, Currently have a mess for an allocation
Replies: 18
Views: 1925

Re: New to Investing, Currently have a mess for an allocatio

Call_Me_Op wrote:In my opinion, every investor needs an "Investment Policy Statement", or IPS. This is a document that defines your investment philosophy, asset allocation, re-balancing bands, etc. I think that this is a first step for any serious investor.
Thanks for mentioning this. I've started to look into it. I think this could certainly serve at least as a useful reminder of why we're making the decisions we are (for example, I'm not sure how that Roth ended up in the CD or where the Money Market fund came from--these are just past decisions that persist on no merit other than that they were made previously).
by yummy_tacos
Tue May 29, 2012 3:52 pm
Forum: Personal Investments
Topic: New to Investing, Currently have a mess for an allocation
Replies: 18
Views: 1925

Re: New to Investing, Currently have a mess for an allocatio

I think you should have 6 months worth of living expenses saved in your emergency account. You have 2 young children. You state that you do not have this amount. [...] I would hate to see you not have available assets that may be needed in your stage of life because you no longer have about 2/3 of assets available by paying off this loan (going by the 22% and 36% figures). That is why I am hesitant to see you pay off this loan willy-nilly. Be sure you are prepared for things that can happen in life, then if you are comfortable start to tackle that loan. Thank you for the words of caution. I'll consider them, but I think we're pretty confident with our current Emergency fund. You state that your 6.8% loan is worth 22% of your portfolio and ...
by yummy_tacos
Thu May 24, 2012 8:25 pm
Forum: Personal Investments
Topic: New to Investing, Currently have a mess for an allocation
Replies: 18
Views: 1925

Re: New to Investing, Currently have a mess for an allocatio

Thanks again for following up, everyone. I just came across some new information today, which I've added to the above post:

Apparently we have access to a Schwab PCRA through His 401(k). That won't change the asset allocation, of course, but it might make the choice of Funds better, right? I'm also not sure how to calculate whether the associated fees are going to be worth it or not.

Thanks Again!
by yummy_tacos
Thu May 24, 2012 12:17 pm
Forum: Personal Investments
Topic: New to Investing, Currently have a mess for an allocation
Replies: 18
Views: 1925

Re: New to Investing, Currently have a mess for an allocatio

tractorguy - thank you for the thoughtful responses. I think that I'm okay with my portfolio plumetting. I started my 401(k) a few years ago, and after about a year it started tanking. I remember thinking "oh man, this is great. I'm going to be buying at such a low price now" as opposed to my coworkers, who were more of the attitude of "Oh God, all my money is pissing away." Of course, I didn't have a ton in there, so that's one prediction. She tends to defer to me in money matters, but this is definitely something I'll have to clear with my wife before we make any big changes. As an engineer myself, I appreciate the factor explanation. Sounds like you had a pretty good professor. I didn't learn to not sweat small detai...
by yummy_tacos
Wed May 23, 2012 8:44 pm
Forum: Personal Investments
Topic: New to Investing, Currently have a mess for an allocation
Replies: 18
Views: 1925

Re: New to Investing, Currently have a mess for an allocatio

3. I'm not sure of the student loan thing. Paying it down would take a lot of cash out of play. Is the loan stretched over a long time? If so, maybe just paying it off over time makes sense as it will be in cheaper dollars in the future (when inflation rears its ugly head once again.) That leaves you with more investing $$ now to grow into the future. I've been working under the impression that I'd need to beat a 6.8% return for it to make sense not paying down the loan first (either my debt or investment is going to grow exponentially, so that sort of equals out), but I haven't really considered the affects of inflation. I'll think about that. Most of the money though, would come from my wife's job, which is sort of "extra" mone...
by yummy_tacos
Wed May 23, 2012 7:05 pm
Forum: Forum Issues and Administration
Topic: Can't figure out how to work Wiki
Replies: 1
Views: 573

Can't figure out how to work Wiki

Apologies if "Wiki Issues" don't fall under the categories of "Forum Issues."


I tried to edit the Wiki, but was told I didn't have rights (needed to have an account).
I eventually found an account creation page on the Wiki, but it told me I don't have rights to create one.

Anyway, the page at http://www.bogleheads.org/wiki/Washington_529_Plan is incorrect (as far as I can tell).
I wanted to edit it to show that Washington does in fact have a pre-paid 529 plan, available here: http://get.wa.gov
by yummy_tacos
Wed May 23, 2012 6:37 pm
Forum: Personal Investments
Topic: New to Investing, Currently have a mess for an allocation
Replies: 18
Views: 1925

New to Investing, Currently have a mess for an allocation

Hi Everyone. I'd like some advice on the following. Here's what things currently look like: Debt: Mortgage - 4.75% Interest - ~250% the size of current portfolio School Loan - 2% Interest - 13% the size of current portfolio School Loan - 6.8% Interest - 22% the size of current portfolio (Credit Card - Paid in Full monthly) Tax: Married filing Jointly In 2011, our effective Federal Income Tax Rate was 9.8% We have no state income tax Age: We're both in our late 20’s Desired Asset allocation: Probably 80/20? 35-40% of Stocks in Intl Stock? Current Portfolio (high 5 figures) 36% - Cash @ Credit Union and ING Direct (Excluding Emergency Fund) 2% - His Roth IRA (in a CD?) @ a tiny credit union (We want to move this somewhere more convenient) -- ...