Search found 163 matches

by K8ya
Mon Jun 20, 2022 7:53 am
Forum: Investing - Theory, News & General
Topic: Bonds don't seem to hedge against downturns anymore
Replies: 153
Views: 17542

Bonds don't seem to hedge against downturns anymore

Seems in 08 and now they both fell when the downturn happened. Am I misunderstanding their purpose? I feel like just going 100% stock if they don't actually guard against downturns which are temporary anyways
by K8ya
Fri Apr 29, 2022 4:02 pm
Forum: Investing - Theory, News & General
Topic: Seller financing and implications on taxes
Replies: 4
Views: 548

Re: Seller financing and implications on taxes

Thanks. Generally on these installment sales, if the seller does not have capital gains from other sources, it looks like their capital gains obligations would be near zero, does that sound right? If they're getting $2,000 in capital gains each month, that's under the $40,000 threshold for the 15% bracket.
by K8ya
Fri Apr 29, 2022 9:34 am
Forum: Investing - Theory, News & General
Topic: Seller financing and implications on taxes
Replies: 4
Views: 548

Seller financing and implications on taxes

Hi I have a few questions about seller financing a house in vacaville california:

1. Is the payment due to the seller considered earned income?

2. He is 73 and asked if he has to file income taxes. I think yes at both the state and federeal level, is this correct? He receives social security payments right now.
by K8ya
Sun Oct 17, 2021 8:55 pm
Forum: Personal Finance (Not Investing)
Topic: Roth or Trad 401k if your first 120k is untaxed?
Replies: 11
Views: 1706

Re: Roth or Trad 401k if your first 120k is untaxed?

retiredjg wrote: Sun Oct 17, 2021 11:47 am
K8ya wrote: Sun Oct 17, 2021 11:32 am 1. the last 20k of 140k income would be treated as such, as if there were no FEIE deduction. I think that puts that income in the 22 or 24% tax brackets
You will pay 22% or 24% on these dollars now or 12% later. The "right" answer is to use traditional.
The 12% bracket caps out at about 40.5k right? So if I'm withdrawing say 45k, won't i pay 10% to 10k 12% to 40k, and 22% to 45k?

Sorry I'm not the greatest with taxes. What really confuses me is if I withdraw say 30k in cap gains from a taxable account, how the above changes.
by K8ya
Sun Oct 17, 2021 11:32 am
Forum: Personal Finance (Not Investing)
Topic: Roth or Trad 401k if your first 120k is untaxed?
Replies: 11
Views: 1706

Re: Roth or Trad 401k if your first 120k is untaxed?

20k income is not excluded and taxed in the middle brackets if I go with Roth 401k. I plan to withdraw $48k/year when I retire. How does the tax situation compare for putting 20k into the roth 401, trad 401k, or just a taxable account? What do you mean by “middle brackets?” If your taxable income is 20k wouldn’t that put you in the 10/12%? Are you married or single? You are planning to withdraw 48k in retirement, what is your projected total taxable income in retirement? 1. the last 20k of 140k income would be treated as such, as if there were no FEIE deduction. I think that puts that income in the 22 or 24% tax brackets 2. single 3. i'm not clear on having both cap gains and income tax. i believe 40k from investment liquidations will get ...
by K8ya
Sun Oct 17, 2021 12:09 am
Forum: Personal Finance (Not Investing)
Topic: Roth or Trad 401k if your first 120k is untaxed?
Replies: 11
Views: 1706

Roth or Trad 401k if your first 120k is untaxed?

Although I make 120k I would like to present the scenario if I made 140k. The first 120k is untaxed (FEIE + standard deduction). My company is introducing a Roth 401k, our Trad 401k has no match so the Roth would not either.

20k income is not excluded and taxed in the middle brackets if I go with Roth 401k.

I plan to withdraw $48k/year when I retire.

How does the tax situation compare for putting 20k into the roth 401, trad 401k, or just a taxable account?
by K8ya
Wed Sep 08, 2021 9:08 am
Forum: Investing - Theory, News & General
Topic: Foreign Developed seems way less volatile than US
Replies: 7
Views: 1472

Re: Foreign Developed seems way less volatile than US

Anyone know a good fund or index to compare Foreign Developed over a 50+ year duration?
by K8ya
Tue Sep 07, 2021 9:52 am
Forum: Investing - Theory, News & General
Topic: Foreign Developed seems way less volatile than US
Replies: 7
Views: 1472

Foreign Developed seems way less volatile than US

Foreign developed as captured by SCHF: https://www.netcials.com/stock-volatili ... quity-ETF/

US, SCHB: https://www.netcials.com/stock-volatili ... arket-ETF/

Can someone who believes in being US heavy make the case for why a US citizen should tilt to US stock instead of Foreign Developed?
by K8ya
Mon Sep 06, 2021 7:06 pm
Forum: Investing - Theory, News & General
Topic: Volatility: how does SCHF (Foreign Developed) compare to SCHB (US)
Replies: 3
Views: 557

Volatility: how does SCHF (Foreign Developed) compare to SCHB (US)

I'm curious how the developed international markets, as a bundle, compare in terms of volatility, to US stocks. I'm guessing foreign's volatility is lower because many economies are represented. Is this correct or are they comparatively worse?
by K8ya
Sun Sep 05, 2021 8:18 pm
Forum: Personal Investments
Topic: Review of my investment plan
Replies: 16
Views: 2030

Re: Review of my investment plan

A higher stock allocation is long term safer than having 60% of your money earning 3-4% in bonds. During drawdown periods, withdrawing less helps. And especially taking some freelance work; I know most professions don't allow that but mine does.

High risk I would consider to be retiring early on 400k, high bond allocation, withdrawing 16k per year and no ability to hop back into the workforce.

If you guys don't agree with my definition of high vs medium risk, that's fine. I hope we can focus on substantive parts of the plan though
by K8ya
Sun Sep 05, 2021 2:23 pm
Forum: Personal Investments
Topic: Review of my investment plan
Replies: 16
Views: 2030

Re: Review of my investment plan

I went back and added 70k per year contributions, or a little over 5800/mo
by K8ya
Sun Sep 05, 2021 1:33 pm
Forum: Personal Investments
Topic: Review of my investment plan
Replies: 16
Views: 2030

Re: Review of my investment plan

A near 50% devaluation is possible but unlikely. Dave Swenson says long term, currency fluctuations are EV neutral.

A recent report showed Thailand lost a huge chunk of its manufacturing to Vietnam and it's service heavy economy is currently taking heavy blows. It has never been an intellectual country, its success owes to well chosen alliances in the past. So I don't see a case for it rapidly gaining on the US economy personally.
by K8ya
Sun Sep 05, 2021 11:04 am
Forum: Personal Investments
Topic: Review of my investment plan
Replies: 16
Views: 2030

Re: Review of my investment plan

Concept wrote: Sun Sep 05, 2021 8:52 am I live in Thailand too and am also planning my retirement around being there but I struggle to live with under $40k per year. I’m shooting for 2 million in taxable and taking 2.5% per year and even then I still worry :)
I suppose you have a family and maybe kids in private schools? Because $3.5k/month is a huge spend here otherwise.

*I guess if you have a few girlfriends that could quickly require more funds too
by K8ya
Sun Sep 05, 2021 8:20 am
Forum: Personal Investments
Topic: Review of my investment plan
Replies: 16
Views: 2030

Re: Review of my investment plan

In reality I'll be overshooting for my needs as I live in Thailand and spend a moderate amount. So I'm quite happy with the 4% projection especially because I can top off with freelance work at any time if something looks off.
by K8ya
Sun Sep 05, 2021 5:58 am
Forum: Personal Investments
Topic: Review of my investment plan
Replies: 16
Views: 2030

Re: Review of my investment plan

Thanks guys, my responses: "Minimal tax payments to keep as much as possible" is not necessarily compatible. You want to optimize your taxes. Can you give a common example where your statement is not compatible with mine? What measure are you using to determine if something is under or over valued? I use the Buffet Indicator. You seem to have made your starting portfolio one of your objectives. Does that mean that you have not yet invested even $15k? If so, what are you changing now to start adding enough to reach your goals in 12 years? To make $15k into 1.23m in 12 years at 7%, you would have to invest about $63k a year. I have 15k invested. For a long time I lost money/savings running an unprofitable business. Now I have rejoin...
by K8ya
Sat Sep 04, 2021 10:01 pm
Forum: Personal Investments
Topic: Review of my investment plan
Replies: 16
Views: 2030

Review of my investment plan

I think you guys may not like the lack of rebalancing and focusing new contributions on the "other" investment when US stock becomes severely over/underpriced (like right now). Your thoughts appreciated. ## Objective - Retire at age 48, in December 2032 - Annual income of $45,000 in 2031 dollars. About $34,000 in 2021 dollar - 15k start, 70k per year contributions, 12 full years invested, 7% return: 1.23m, 49k/yr at 4% withdrawal - Minimal tax payments to keep as much as possible ## Risk Tolerance - The short investment horizon reduces it - The willingness to work longer lengthens it - Overall, medium risk tolerance - Bonds are seen as low value though. Only good for holding cash assets ## Holding limits - Roughly 50% of each: US ...
by K8ya
Sat Sep 04, 2021 3:34 pm
Forum: Investing - Theory, News & General
Topic: Is anyone tempted by value investing right now?
Replies: 125
Views: 15733

Is anyone tempted by value investing right now?

I personally am; index funds are at high P/Es right now. It goes against the Bogle ethos but my god, at some point you have to look at the price of the thing you're buying and hesitate.
by K8ya
Sun Aug 15, 2021 8:10 am
Forum: Investing - Theory, News & General
Topic: Getting more tax efficient with VTI
Replies: 23
Views: 2750

Getting more tax efficient with VTI

I've been told the yearly capital gains on VTI amount to about 1.3% of its value. so 500k in VTI is $6,500 in yearly gains in a taxable account.

Are there any similar funds with lower expenses (ratio and taxes) for a taxable account. Or is VTI best for domestic stock?
by K8ya
Thu Jul 29, 2021 10:43 am
Forum: Investing - Theory, News & General
Topic: Is the market P/E range permanently higher?
Replies: 57
Views: 4210

Is the market P/E range permanently higher?

In the past 15 looked about average but 1990 to present appears to only crash to 15. looks like 20+ is the new "average' with much higher volatility too: https://www.multpl.com/s-p-500-pe-ratio

Do you guys think P/E 15 is gone as a market average?
by K8ya
Wed Jun 09, 2021 5:04 pm
Forum: Investing - Theory, News & General
Topic: Bitcoin allocation
Replies: 10
Views: 1082

Re: Bitcoin allocation

How can an asset rise from pennies to tens of thousands over a decade, and not have underlying value? It is clearly a digital asset.
by K8ya
Wed Jun 09, 2021 4:59 pm
Forum: Investing - Theory, News & General
Topic: Best time to add bonds right before retirement
Replies: 14
Views: 2248

Re: Best time to add bonds right before retirement

I'm also in accumulation phase with zero bonds. At some point, I'll also need to take that leap too. I think it is courageous / inspirational that you'll retire so young... hopefully in good health and need to fund 45 years of retirement... and with "only" $1.1 million to start with. On this forum, people psychologically have a tough time retiring with 2x that amount. Is this $1.1 million in addition to a paid off house, or, is this your total net worth? Do you live in a LCOL area? What are your plans on how to spend retirement years... assuming you never have to go back to work? Thanks, my situation is I'm a US citizen living in Thailand. I don't think I've ever spent $3,000 in one month here. Cost go up and USD goes down though...
by K8ya
Wed Jun 09, 2021 4:54 pm
Forum: Investing - Theory, News & General
Topic: Bitcoin allocation
Replies: 10
Views: 1082

Bitcoin allocation

Would you guys treat Bitcoin as a stock or cash equivalent?

I'm actually considering it to maybe be a whole nother group. Maybe a 5-10% allocation would be worthwhile based purely on performance.
by K8ya
Tue Jun 08, 2021 5:01 pm
Forum: Investing - Theory, News & General
Topic: Best time to add bonds right before retirement
Replies: 14
Views: 2248

Re: Best time to add bonds right before retirement

anon_investor wrote: Mon Jun 07, 2021 1:05 pm What kind of bonds are you planning to buy?
20 Year or a diversified fund. I haven't read up on bonds yet; i will closer to the decision date though
Marseille07 wrote: Mon Jun 07, 2021 4:44 pm Are you sure 1.1M is enough? You only have 33K/year to work with as you don't want to do 4% constant-dollar for 45 years.
I plan to do variable percentable withdrawal. Also, with a high stock % and willingness to work again one doesn't need to eliminate all risk. I could probably do over 4% SWR safely.
by K8ya
Mon Jun 07, 2021 12:39 pm
Forum: Investing - Theory, News & General
Topic: Best time to add bonds right before retirement
Replies: 14
Views: 2248

Best time to add bonds right before retirement

I'm on track to retire at 46 so projecting 45 years of retirement. 100/0 stocks/bonds during accumulation is comfortable to me. I plan to retire with about 1.1m and take a 12% bond allocation representing about 3 years of expenses. In case of a downturn at retirement or shortly before/after, for the first 5 years, I'm happy to hop back into the work force and will do side projects to keep sharp (I'm a web dev).

My question is about when the bonds should be bought. I'm planning on buying as I retire but maybe buying 1-2 years in advance is worth the slightly lower return for a couple years?
by K8ya
Wed Jun 02, 2021 4:10 am
Forum: Personal Finance (Not Investing)
Topic: Resources for setting up a Mega Backdoor Roth
Replies: 3
Views: 534

Re: Resources for setting up a Mega Backdoor Roth

Well, I bought it at a first year cost of $500 from solo401k.com. So now I get to learn how to be a plan administrator. I'm probing them for resources on how to manage this 401k correctly. If anyone else knows of a good guide, please share!
by K8ya
Tue Jun 01, 2021 8:53 am
Forum: Personal Finance (Not Investing)
Topic: Resources for setting up a Mega Backdoor Roth
Replies: 3
Views: 534

Resources for setting up a Mega Backdoor Roth

Per my other discussion (viewtopic.php?f=2&t=350219&p=6040698#p6040698) I am looking into options for setting up a mega-backdoor compatible solo 401k for my LLC.

I thought Etrade was good enough. If it is not, perhaps there is no commercially available plan. In that case costs may go up a lot.

Can anyone who has done this comment on the costs for setup, and perhaps recommend someone? Thank you
by K8ya
Tue Jun 01, 2021 8:50 am
Forum: Personal Finance (Not Investing)
Topic: Mega back door / Etrade question
Replies: 4
Views: 595

Re: Mega back door / Etrade question

retiredjg wrote: Tue Jun 01, 2021 7:10 am Your ordinary traditional or Roth contributions (the $19.5k each year) cannot be rolled out of the plan at all while still at that employer unless you are at least 59.5 (and only if the plan allows it). There is an exception for hardship.
This is definitely a concern. I will have to ask a tax professional about this. And also whether it is possible to hook a mega backdoor after tax account to my Etrade Solo 401k. Thank you!
by K8ya
Tue Jun 01, 2021 6:03 am
Forum: Personal Finance (Not Investing)
Topic: Mega back door / Etrade question
Replies: 4
Views: 595

Mega back door / Etrade question

I am opening a Solo 401k, both Roth and Traditional at Etrade. I see it allows in service transfers: https://i.imgur.com/SzHJJRE.png

1. With these options enabled, I believe I can roll an unlimited balance from my Roth 401k into my Roth IRA at any time, effectively greatly increasing the contribution limit on my Roth IRA

2. Further, I believe I can roll all of my Solo Traditional 401k balance into my Roth IRA, paying federal income taxes during the rollover.

Is this correct? Is this the mega backdoor roth I've read about?
by K8ya
Sat May 29, 2021 1:09 pm
Forum: Investing - Theory, News & General
Topic: FZILX seems like an excellent deal in taxable
Replies: 13
Views: 3315

Re: FZILX seems like an excellent deal in taxable

abracadabra11 wrote: Sat May 29, 2021 9:50 am Don't underestimate the benefits of portability. At the $1M level you referenced, you can easily get annual brokerage transfer bonuses in the $2500+ range. There are obvious switching costs that aren't monetarily counted, but there are also benefits to trying various brokerages.
Can this be done indefinitely with reliable brokers, or is the list too small for that?
by K8ya
Sat May 29, 2021 2:10 am
Forum: Investing - Theory, News & General
Topic: FZILX seems like an excellent deal in taxable
Replies: 13
Views: 3315

FZILX seems like an excellent deal in taxable

https://fundresearch.fidelity.com/mutua ... /31635T609

0 ER and 0 cap gains distributions unless I'm misreading. There is no cap gains distribution table above where there is on the FZROX page.

Someone will mention that you're banking on the trend continuing. Well yes, the future is unknown. Meanwhile SCHF ETF and equivalents are paying $600 per million per year in ER. At a cost of $2,400 to date. Some consider that trivial, personally I'd rather have the $2,400.

Does this mutual fund beat ETFs in taxable?
by K8ya
Fri May 28, 2021 8:39 am
Forum: Personal Investments
Topic: Have $2,000,000 in actively managed taxable accout. Should i fire my fee only advisor and go VTSAX?
Replies: 41
Views: 11105

Re: Have $2,000,000 in actively managed taxable accout. Should i fire my fee only advisor and go VTSAX?

Looks like both fund managers have been doing their jobs, those are some fair returns. If you think they can keep it up stay put, otherwise look into index funds.
by K8ya
Fri May 28, 2021 8:29 am
Forum: Investing - Theory, News & General
Topic: Bear market and how to handle the bond allocation
Replies: 6
Views: 1143

Re: Bear market and how to handle the bond allocation

It's kind of like being a working girl, once you enter the profession you can never really leave. i may spend my time learning new things and building apps that no one buys. But I'll never just lose the skill :happy
by K8ya
Fri May 28, 2021 7:59 am
Forum: Investing - Theory, News & General
Topic: Bear market and how to handle the bond allocation
Replies: 6
Views: 1143

Bear market and how to handle the bond allocation

I plan to retire at 46 which means my stock allocation should remain high. I'm ok taking more risk because I can just become a programmer again if needed.

Every 4% into bonds is another year of bear market reserve. I think 12% is sufficient; I know others will consider that low.

Do you guys spring your bond allocation back to your pre-bear market allocation on the next positive year? Or do you do some sort of phase in, perhaps 2-4% converted from stocks for the next few years?
by K8ya
Fri May 28, 2021 5:28 am
Forum: Investing - Theory, News & General
Topic: Help calculating the cost of a mutual fund in a taxable account
Replies: 5
Views: 638

Re: Help calculating the cost of a mutual fund in a taxable account

They are almost the same then. So I think FZROX is the lower cost fund at least in 2019, is that correct?
by K8ya
Fri May 28, 2021 4:15 am
Forum: Investing - Theory, News & General
Topic: Help calculating the cost of a mutual fund in a taxable account
Replies: 5
Views: 638

Re: Help calculating the cost of a mutual fund in a taxable account

Ok, I googled and qualified dividends are taxed as cap. gains. How do I find the percent dividends that are qualified?
by K8ya
Fri May 28, 2021 2:14 am
Forum: Investing - Theory, News & General
Topic: Help calculating the cost of a mutual fund in a taxable account
Replies: 5
Views: 638

Help calculating the cost of a mutual fund in a taxable account

I would like to verify for myself whether the cost of a mutual fund like FZROX do indeed outweigh the expense ratio of an ETF like SCHB (0.03%) in taxable accounts. Let's assume $1 million invested in the fund: I see the following: for FZROX: Dividend History 12/04/20 $0.171 $13.21 12/13/19 $0.164 $11.11 12/28/18 $0.002 $8.71 12/14/18 $0.053 $9.12 Capital Gains History 12/13/19 $0.007 $11.11 12/28/18 $0.007 $8.71 12/14/18 $0.003 $9.12 The price is roughly $15. So about 66,667 shares. Which means in 2019 there are dividends of $10,933. Capital gains of $466. So someone in the 22% fed income tax bracket and 15% capital gains bracket would pay roughly $2,405 income tax, and $70 capital gains tax, per year, just to maintain their account before...
by K8ya
Fri May 28, 2021 1:54 am
Forum: Investing - Theory, News & General
Topic: Early withdrawals to avoid withdrawing during bear markets?
Replies: 22
Views: 2857

Re: Early withdrawals to avoid withdrawing during bear markets?

It sounds like some are saying bonds could be used as a cash equivalent. And rebalancing in this scenario implies selling off stock to purchase bonds.

Could a 100% stock investor come out ahead by reallocating 0.5% of the account into bonds for every year post crash, with a cap of 4%?

Then when the bear market hits, withdraw bonds into cash at a rate of 0.5% per month.

That's $5,000 per million into bonds on every good year. $5,000 per month taken from bonds instead of the whole portfolio, in a bad year.

I think this is a fairly clean play, a way to stay invested and maintain a bear market fund that actually shoots up in value when the time arives.
by K8ya
Wed May 26, 2021 2:47 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Zero Funds in Taxable
Replies: 5
Views: 1332

Fidelity Zero Funds in Taxable

Is this going to cost a lot more than a 0.03% to 0.06% ER fund in a taxable account? I'm not good with the math on tax inefficient funds which I hear the Zeros are.
by K8ya
Wed May 26, 2021 8:36 am
Forum: Investing - Theory, News & General
Topic: Schwab international mutual fund?
Replies: 7
Views: 1306

Schwab international mutual fund?

I find Schwab's fund selector hard to use. My target equity allocation is 75% US 25% international, but I can not seem to find an international mutual fund at Schwab. do they have one? International developed is also good.
by K8ya
Wed May 26, 2021 6:38 am
Forum: Investing - Theory, News & General
Topic: Early withdrawals to avoid withdrawing during bear markets?
Replies: 22
Views: 2857

Early withdrawals to avoid withdrawing during bear markets?

if one aims to withdraw 40k/year, does it make sense to withdraw an extra 4k/year for every non-bear market year (positive return) so that one can skip withdrawing during a downturn?

This way if the bear market occurs at year 11, one has 40k extra to pull from.

If the bear market occurs at year 6, 20k savings, and then 20k must be taken from the portfolio.

The cost is opportunity cost. That extra 4k per year is not invested and thus not generating returns. It's just sitting there as a pre-emptive bear market gap filler fund.
by K8ya
Sat May 22, 2021 5:25 pm
Forum: Investing - Theory, News & General
Topic: NASDAQ instead of SP500?
Replies: 96
Views: 13782

NASDAQ instead of SP500?

Anyone think this is a better play going forward? Tech has been the real driver of the economy since 2000 onwards.
by K8ya
Fri May 21, 2021 3:52 pm
Forum: Non-US Investing
Topic: FEIE excluded income, tax minimization
Replies: 3
Views: 1808

Re: FEIE excluded income, tax minimization

There's nothing left over after the exclusion. In this case is my plan optimal?
by K8ya
Fri May 21, 2021 9:40 am
Forum: Non-US Investing
Topic: FEIE excluded income, tax minimization
Replies: 3
Views: 1808

FEIE excluded income, tax minimization

IRAs can not accept FEIE excluded income as contributions.

401ks treat withdrawals as earnings for tax calcs, but they can not be excluded by the FEIE.

Therefore I think my best option as an FEIE eligible US citizen expat, is to simply invest in a brokerage account. The FEIE will exclude all of my income, and most in future years. When I start distributing earnings as cap gains, the first 40k is tax free and the next 10k is taxed at 15%. So withdrawing my target of 50k/yr at age 45, I'd pay 1,500 in tax.

Is that the best I can do or are there other options I have not considered?
by K8ya
Fri May 21, 2021 2:25 am
Forum: Investing - Theory, News & General
Topic: How fast have the cap gains tax brakets moved over time?
Replies: 9
Views: 1521

Re: How fast have the cap gains tax brakets moved over time?

Walkure wrote: Thu May 20, 2021 2:01 pm Careful, there are no capital gains in a 401k, it is all treated as (deferred) earned income. Harvesting gains is only for taxable accounts.
Wow, how bizarre. i'm glad you mentioned this! Earned income is excludable under the FEIE which means this greatly helps me avoid taxes, since I'm an expat
by K8ya
Thu May 20, 2021 11:41 am
Forum: Investing - Theory, News & General
Topic: How fast have the cap gains tax brakets moved over time?
Replies: 9
Views: 1521

How fast have the cap gains tax brakets moved over time?

Nowadays you pay 0% up to 40k. I will retire in about 10 years and expect to make 50k per year, a hefty sum in Thailand (I'm a US expat). If the cap gains tax brackets have regularly moved up i may totally be covered by the 0% bracket in 10 years.

With would mean a Traditional Solo 401k favors me over a Roth Solo 401k. I'm contemplating it now.

Anyone have data on cap gains tax bracket changes over the years?
by K8ya
Thu May 20, 2021 10:39 am
Forum: Personal Finance (Not Investing)
Topic: Techniques to keep one's account balance out of mind?
Replies: 53
Views: 5625

Re: Techniques to keep one's account balance out of mind?

goingup wrote: Thu May 20, 2021 8:20 am Rebalancing every several years is fine. Check your portfolio at least once a year. How's about quarterly, but don't make any transactions? It sounds as though you're trying to thwart behavioral problems and I commend you for recognizing them.
It's moreso trying to preserve peace of mind! In my prior experience I tended to get married to a high number. then when that number drops the stress of "losing" 20-40% can weigh on me. Not so when you never see a high number to attach yourself to!
by K8ya
Thu May 20, 2021 7:28 am
Forum: Personal Finance (Not Investing)
Topic: Techniques to keep one's account balance out of mind?
Replies: 53
Views: 5625

Re: Techniques to keep one's account balance out of mind?

Has anyone gone the extra step of having someone handle rebalancing on your behalf? Ideally I don't even look at my balance on a yearly basis. Hard to feel the sting of a 40% drawdown when you haven't seen your account in years!
by K8ya
Wed May 19, 2021 5:52 am
Forum: Personal Finance (Not Investing)
Topic: Techniques to keep one's account balance out of mind?
Replies: 53
Views: 5625

Techniques to keep one's account balance out of mind?

Have you guys used any techniques to block out your knowledge of your account balance? I used to do that as a poker player and it really helps during drawdown phases as you never get married to a high number. Any tips are welcome; I'm with Schwab and invest in their mutual funds. I have a Solo Roth 401k at Etrade as well.
by K8ya
Mon May 17, 2021 12:51 am
Forum: Investing - Theory, News & General
Topic: Marginal improvement in drawdown for every 5% in bond allocation
Replies: 6
Views: 1223

Re: Marginal improvement in drawdown for every 5% in bond allocation

dbr wrote: Sun May 16, 2021 11:37 am It also makes sense to me that the maximum stock allocation be no more than 75%, but each investor has to decide that for themselves.
Can you justify this one in your personal context? I take it you simply have no use for the extra returns at your stage?
by K8ya
Sat May 15, 2021 11:45 am
Forum: Investing - Theory, News & General
Topic: Marginal improvement in drawdown for every 5% in bond allocation
Replies: 6
Views: 1223

Marginal improvement in drawdown for every 5% in bond allocation

I've heard that a small amount of bonds goes a long way to help reduce drawdown during bear markets, on stock heavy portfolios. Have any blogs run the numbers on what recent drawdowns would have looked like at their lows for a 100/0 portfolio, vs 95/5, 90/10, 85/15, 80/20 ?