Help a 21 y/o Vanguard Investor with a Taxable Account

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Re: Help a 21 y/o Vanguard Investor with a Taxable Account

Postby Audi3470 » Thu Jul 06, 2017 9:01 pm

mortfree wrote:
Audi3470 wrote:
mortfree wrote:
Audi3470 wrote:It seems like with my retirement portfolio, I had the right questions given your three options. My follow-up would be: If I'm contributing $500 to my Roth every month currently and I were to switch from the Target Retirement date fund to the TSM, I would have to wait 6 months and keep putting my Roth in Vanguard's money market settlement fund until I got the min investment, correct?

this is your Roth account so no tax triggers for buying/selling...

If you really want TSM, sell your Target Retirement Fund (or not) and start buying VTI...

When you hit the minimum required amount for VTSAX (Admiral) then consider selling VTI (possibly Target Fund if you still held that) to buy VTSAX.


Not sure what ER means.

VTSMX is worse share class than VTSAX. So did you mean to say that VTI = VTSMX < VTSAX? EDIT: Rather that VTSMX<VTSAX = VTI

3) Is it smarter to a) sell all of my shares in the target retirement fund right now of my Roth which is at $8,902 and buy VTI (Total Stock ETF) and in 2 months when I've contributed enough to hit $10,000, sell again and buy VTSAX b) sell all of my shares in the target retirement fund right now of my Roth which is at $8,902 and buy VTSMX (Total Stock MF investor shares) and in 2 months when I've contributed enough to hit $10,000, automatically convert to Admiral shares (VTSAX) without having to sell c) A different option (there are plenty)

ER is Expense Rate where admiral share and ETF have the same rate... that's why I suggested VTI. However, given that you seem deadset on VTSAX and it will only take you around 2 months to reach that 10k, then sell all of Target Fund, buy VTSMX and keep adding and watch for the investment to switch to admiral shares. I've only invested in ETFs so not sure of that exact process to admiral shares.

sorry for any confusion.

Since there are no taxes on capital gains in the Roth, your way makes more sense right? Sell the Target Retirement Fund now and buy the ETF and not the VTSMX for the low cost and then in two months, sell the ETF and buy VTSAX? If I spent 2 months in VTSMX, I would just be incurring unnecessary costs?

But, if within those 2 months, the market dropped, I wouldn't want to sell at a loss within the Roth because I wouldn't get any tax benefits. So does it make more sense to wait the 2 months and only make one switch from Target retirement to VTSAX? I'm hopelessly confusing myself regarding too many accounts now.

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Re: Help a 21 y/o Vanguard Investor with a Taxable Account

Postby mortfree » Thu Jul 06, 2017 9:10 pm

Audi3470 wrote:
Since there are no taxes on capital gains in the Roth, your way makes more sense right? Sell the Target Retirement Fund now and buy the ETF and not the VTSMX for the low cost and then in two months, sell the ETF and buy VTSAX? If I spent 2 months in VTSMX, I would just be incurring unnecessary costs?

But, if within those 2 months, the market dropped, I wouldn't want to sell at a loss within the Roth because I wouldn't get any tax benefits. So does it make more sense to wait the 2 months and only make one switch from Target retirement to VTSAX? I'm hopelessly confusing myself regarding too many accounts now.

tomorrow, put a sell in for the Target fund... when funds are available, buy VTSMX.. keep adding to it until they become VTSAX.

you've reached analysis paralysis... overthinking, etc. I've been there too.

the ER point was more for long term considerations.... you won't even notice the fees in a 2-month period.

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Re: Help a 21 y/o Vanguard Investor with a Taxable Account

Postby dratkinson » Fri Jul 07, 2017 3:14 am

Data point. ETFs vs. mutual fund.
--Pro. ETFs have a lower min purchase requirement and ER than mutual funds.
--Con. Must own ETFs as whole shares, meaning you can’t buy/reinvest distributions as partial shares. Meaning you must have a settlement account to reinvest distributions. Meaning you must manually buy ETF shares (more work).

Data point.. If you put $500/mo into your Roth IRA, and it requires $3K to buy VTSMX, then “yes” it will require 6mo to have enough to make a min purchase.

As suggested, you could buy the ETF equivalents today and bypass the min purchase requirement all together. See above.

The Wiki has a topic on many more differences between ETFs vs. mutual funds. Find it. Read it.

Data point. ERs. You do realize that a 1 basis point difference (0.01%) in ERs is only $1/yr on $10K?

With low ERs and low account balances it’s not worth worrying about. It’s more important to get the money invested/working for you, than it is to worry about ERs.

If you want mutual funds, the TDR funds have a lower minimum. They can be set to reinvest distributions (buy partial shares). Meaning they will run on autopilot (automatic: reinvesting, rebalancing) until you have enough to switch to discrete funds.

Money is fungible. If the ER really worries you, then brownbag your lunch to work one day over the coming year and be money ahead.

It really is that simple.

Sidebar. How I determined which munis were appropriate for me; and making changes when advantageous/convenient to do so, not when forced upon me.

BL wrote:Thank you, dratkinson, for your thoughtful discussion on T-E bonds. It is just what I needed to hear, as we are on the "keep it simpler" end of investing as well. Don't need munis as long as there is joint filing, but that would change with just a survivor. Perhaps it would make sense to set it up now, but maybe that would be over-simplifying. PenFed CD and CC work for now with decent rates for military-connected (or checking customers). I tested I-Bond withdrawal which worked fine to new bank, but may want to simplify there as well.

The short answer.

Need may not be the best word. I believe “opportunity” may be a better word.

I set myself up to use munis before I had the need for them. The trick was in making the change so it provided a benefit from the beginning and continued for the long-term. And in being able to tolerate any additional risk.

If considering redeeming I bonds, then doing so now in the 15% fed tax bracket, is better than doing so in the 25% fed tax bracket.

The long answer.

I file as single. After I retired with a pension that covered all my LBYM expenses and delaying SS, I was in the 15% fed tax bracket. But the BH approach changed my investing success, so after a few years pension + increasing distributions were pushing to toward 25%. What to do?

A forum review caused me to think about tax efficiency. Munis were discussed but not advised because I was in the 15% bracket. But it got me to thinking.

Munis (shorter duration preferred by forum) are not recommended in the 15% fed tax bracket because of the TEY loss against TMB. But! what about the benefit of 0% QDI/LTCG from remaining in 15%, which would result from delayed my entry into the 25% bracket? I could not quantify it, but felt the 0% QDI/LTCG benefit must be worthwhile, even if the TEY (a 1st-order wag of goodness) did not justify it.

So I bought VMLTX to be a tier of my EFs (deferred to BH wisdom), and VWITX because its TEY (then) was slightly better than TBM’s SEC yield. (This is not always the case as today VWITX’s TEY is lower than TBM SEC yield in 15% tax bracket.)

I was so pleased with VWITX’s greater TE dividends that I soon began investigating VWLTX (LT national). VWLTX’s TEY was significantly better than TBM’s SEC yield in 15% tax bracket. So I sold VMLTX and bought VWLTX. And all my new muni purchases were VWLTX. The use of only muni (sold all taxable bonds/CDs/savings*) delayed my entry into 25% tax bracket by 2-3 years (since TE dividends don’t add to AGI).

* Tax efficiency. One of the forum members, livesoft, has a refinement to the Wiki topic on tax-efficient fund placement. His advice is that we should have less than $10 reported on Sch B Part I (savings, CDs, savings bonds). And only Sch B Part II income that is offset by QDI/LTCG/FTC. (Muni TE dividends are reported on 1040 line 8b and not added to 1040 taxable income.) I follow his advice and today keep ~2mos of living expenses in checking/savings (<$10/yr each in interest earned; I’d blow this if I chased rates), ~1yr of living expense in TE mmkt, and several years in munis.

Now in the 25% tax bracket, I own both VWITX (as the last/largest tier of my formal EF, new car/project fund, and dry powder) and VWLTX. In the 25% bracket, both VWITX and VWLTX produce better after-tax income than TBM.

I’m not expecting to, but if I drop back into the 15% tax bracket, I expect VWLTX to continue producing better after-tax income than TBM. VWITX may or may not (just depends upon market conditions) but its after-tax income is still much better than a bank CD, so I’m okay holding it as the last tier of my formal EFs.

I thought through my financial situation years ago (moving both ways between 15%-25%), and set up so I wouldn’t need to worry about it, whatever happened. Assuming you are in the 15% tax bracket now, and will be in the 25% tax bracket should a survivor need to file as single, the dividend math should work the same for you. In 2014 I discovered a free program,, and used it to wag my after-tax income based on multiple bond fund simulations: ST/IT/LT, treasury/muni/corporate/savings bonds/CDs, before/after SS. So ~20 different simulations. (It kept me off the street and out of trouble for a few days. Was so pleased with that I sent him a “Thank you” contribution.)

The simulations recommended, after-tax income, in order of goodness: single-state muni, LT national muni,… and I forget what else. The “what else” didn’t matter, as I wasn’t interested. Why? Because I was only looking for an answer that was “better than TBM”. Why? Because TBM is the 3-fund standard. And if I found a muni combination that I liked (could sleep well with) and was better then TBM in 15%, then it would also be a better answer in 25%.

As a result of my simulations, I didn’t play the “paper I bond fed tax refund” game in 2014. And in 2015 I redeemed all my savings bonds. Why? The low-yield savings bond 5% state tax benefit (for CO) pales when compared to the higher-yield national munis’ 25% fed tax benefit, and the single-state muni’s 30% fed+state tax benefits. Would have been better for me if I’d redeemed them while in the 15% tax bracket.

I’ve previously described how I used to simulate bond scenarios. Search forum for “WTCOX”.

Your being now in the 15% fed tax bracket is an opportunity. Why? The forum has previously discussed many things that can be done while in the 15% fed tax bracket to give yourself an advantage.
--If you don’t need/want to mess with RMDs (adds to AGI, affects SS taxation), can be converting to a Roth IRA to turn off RMDs.
--If you don’t need/want to mess with savings bonds (adds to AGI, affects SS taxation), can be redeeming them (for munis*).
--If you have a few individual stocks, can be selling them (taxed as 0% LTCG, for munis*) to clean up investments.

* I did these things to simplify my investments, reduce future taxes, and increase after-tax income.

You’ll need to determine if your financial situation could benefit from a change now. And if you go the muni route, can you tolerate the additional risk of the longer duration munis needed to provide an advantage over TBM in the 15% fed tax bracket? And don’t forget the 0% QDI/LTCG benefit if you can remain in the 15% tax bracket.

It’s easy to make changes now in the 15% tax bracket, but when you hit the 25% bracket you’re going to have more immediate worries. Like a bicycle or manual transmission vehicle, it’s best if you have it in the correct gear *before* you hit the hill.

HY munis. In my search for a better bond route in taxable, I did not investigate HY muni funds. Why? Vanguard has a good one, but all have an exposure to AMT issues. And as I expect to be subject to AMT after I take SS, I wanted to avoid the issue now, so that I wouldn’t need to worry about it then.

If you use to simulate bond scenarios for your financial situation, see if you have an AMT exposure when using a HY muni in both the 15% and 25% tax brackets.

Edit. Grammar, minor editorial changes.
Last edited by dratkinson on Fri Jul 07, 2017 4:49 pm, edited 1 time in total.
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Re: Help a 21 y/o Vanguard Investor with a Taxable Account

Postby BL » Fri Jul 07, 2017 8:13 am

Thanks, dratkinson
Lots of good ideas to think about here.
Will keep coming back to this to help decide what moves to make.
The I-Bond to Tax-Exempt is sounding good. May be best to get that lump sum interest while in lower tax bracket.

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Re: Help a 21 y/o Vanguard Investor with a Taxable Account

Postby dratkinson » Sun Jul 09, 2017 5:38 pm

Audi3470 wrote:
ST/IT Goals - Taxable Account
2) Going with the 25%-30% bonds idea, should I split the $8,000 in my Vanguard Money Market into $5,000 VTSMX and $3,000 VMLTX (I know the math is a little off, but I'd need to hit the 3K min investment) for tax-efficiency?

No. Don’t mix apples and oranges, grasshopper---LT saving for retirement vs. saving for EF and ST/IT goals.

Note. ST/IT/LT can refer to the “time frame” of your goals. Or ST/IT/LT can refer to “duration” of bonds. ST (duration) bonds are more stable so have lower 52-week price fluctuations and are less sensitive to interest rate risk. LT (duration) bonds are less stable so have higher 52-week price fluctuations and are more sensitive to interest rate risk. Do not confuse ST/IT/LT time frame with ST/IT/LT bond duration.

Retirement investing. Remember the “25%-30% bonds” idea was given to you as LT retirement investing advice---“new investor, unknown risk tolerance, savings for retirement”.

Saving for EF. In the near term you need to save your taxable account for your EF. Why? It’s refillable---put money in/take money out, as often as you like.

Do not confuse advice for one (retirement vs. EF) with advice for the other.

I'm assuming that when you said 25-30% bonds, you were going with your Swedroe concept of approximately "10 x (years - 3)" in equities since I'm thinking along a 10 year timeframe. Otherwise, you could have been saying 25-30% in bonds, and the rest in cash to go along with your "cash is king at a young age" concept.

Yes. 25-35% bonds is the advice from multiple sources for your “new investor, unknown risk tolerance, retirement investing” status. Yes, your taxable in cash until your have a large EF. They are different, don’t confuse them.

Note. The AA of your retirement investments (tax-advantaged and taxable) should differ from the AA of your taxable savings for your EF and ST/IT goals. Why? Because they have different need timeframes. So as you age, your retirement AA will change, but your EF AA probably should not.

The advice to use 25-30% bonds (your current 40yrs to retirement AA) has nothing to do with Swedroe's (my remembered) recommendation to use 70% equities to offset inflation when savings for a home down payment (your current 10yr goal). It's a coincidence that both happen to translate to ~70/30. (N.B.: remember I said that was my recollection of his advice, I don't remember what I've forgotten, so you'll need to read his book for his exact advice. No, I don't remember which book.)

My checking is linked to my Vanguard. That's how I contribute monthly to my Roth and it's how I have been depositing weekly into my Money Market Settlement fund.

Now, why are you suggesting I be so risk-averse with my taxable account? No equities at all? It seems to me that with such a flexible and longish 10 yr time horizon, I can be more risk-tolerant, no? Or are you basing this on the fact that I might depend on this account for my EF?

Again, you’re mixing apples and oranges---confusing the needs of your EF/ST/IT goals with your LT retirement investing goal.

Yes, you need to be risk-averse in your 1st-tier* EF for now and always. Why? Because an EF is to handle ST emergencies and you want to avoid ST price fluctuations (capital loss). Because an illness/injury could cost your job. Since you have so very little saved and want to avoid losing more to a market crash, then cash must be king for now.

* Your 1st-tier EF is the ready >6mos of cash in your checking/savings/mmkt. You don’t have that yet. You can only take risk when you have *large* (>12mos) multi-tied EFs---checking/savings/mmkt, ST bonds, savings bonds, HELOC,…. No you should not buy savings bonds now. Why? Better to wait until you are 35yo. Why? Because they reach final maturity at 30yrs, and assuming you don’t need them for an emergency, then you would be redeeming them starting at age 65. You have much to learn grasshopper. Bottom line: for you, for now, in your taxable account, cash is king.

Once you have >6mos saved in living expenses, then you can add other investments. So my advice for you to use VMLTX as a tier of your EFs was premature; save it until you have >6mos in your EF, and better understand how to use it.

Once you can max your annual tax-advantaged space, have >12mos in your EF, are well on your way to saving for a home down payment, and have money left over, only then can you create a 3-fund retirement portfolio in your taxable account. Not before.

I’ve thought about this for a few days. It worries me that you are not keeping the advice straight---that you are mixing EF/ST/IT advice with LT advice. If you are not able to keep the advice straight, then I worry that you may run into financial difficulties later if you use incorrectly commingled advice to create/execute a flawed EF/ST strategy.

Let’s try this again.

EF/ST goals. Currently you have almost $zero saved. Any financial emergency could cause serious difficulty. What to do? You must build up your EF as quickly as you can. This EF (1st-tier) must be in cash (cash in a drawer, checking, savings, mmkt, CDs). This means your EF/ST AA will be 0/100.

As you age, the first few tiers of your EF/ST savings will always be in cash or near-cash equivalents. This will never change.

Swedroe’s IT savings equity option, was just that, an option. You don’t have to follow it. And you should not follow it until you’ve read his book and uncover what I’ve forgotten. No I don’t remember which book.

LT retirement investing. Currently you have “human capital”---your ability to earn an income. And today your human capital is at 100%. After you retire your human capital will be at 0%.

You begin today to save/invest for retirement. To take advantage of compound interest, you invest most of your retirement investments in equities---because they have the potential for greater LT growth than bonds.

Following the advice “age in bond”, you could reasonably start with a retirement AA of 80/20.

This risky 80/20 retirement AA is offset---made less risky---by your human capital of 100%, so your total investing for retirement (retirement accounts + human capital) is more conservative than it first appears.

In retirement, your retirement AA will be near 40/60 and your human capital will be 0%, so your total retirement AA is still conservative.

But as you are a young new investor, with unknown risk tolerance, and worry about small losses---and a market correction/crash can seem to be a multi-year killer---then I suggest you be more conservative with your retirement investing and start with 25-30% bonds as recommended by many sources.

Synthesis of these two ideas.

You can be risky with your retirement investing because of your 40+ years of human capital---your potential to earn more.

But potential to earn more is no guarantee. So with effectively $zero saved and $zero invested for retirement, and a serious injury/disease requiring long hospitalization and physical rehabilitation… your future will be bleak. What to do?

Two things:
--Maximize your retirement investing to benefit your retired self. Follow appropriate advice, don’t mix apples and oranges.
--Quickly build up and maintain a cash EF of >6mos of living expenses. Follow appropriate advice, don’t mix apples and oranges.

Once you’ve done these two things, then you can begin saving for a home down payment, and begin thinking about extending your retirement investing into your taxable account. Not before. Why? The time it will require to get you to that point, and the learning you will experience in personal financial management up to then, will give you the experience to do it successfully. (Note: as money is fungible, the savings for your home down payment can be an extension of your EF---an extended tier---if you need it.)

Simple actions steps.

For the next few years and until you have a better understanding of personal finance and retirement investing, keep things simple.
--401k. Max your contributions and use a TDR fund (not an ETF) containing 25-30% bonds. It will run on autopilot.
--IRA. Max your contributions and use a TDR fund (not an ETF) containing 25-30% bonds. It will run on autopilot.
--Brownbag your lunch one day each year so you will know you are coming out ahead over the small ER differences---money is fungible.
--Read Tobias’ book to get a better handle on personal finances. Re-read a few months later because you missed something the first time.
--Read Boglehead’s book to get a better handle on retirement investing. Re-read….
--Save your EF/ST/IT money in a taxable account---it’s refillable. Make cash king (0/100 AA). Use only checking/savings/mmkt/CDs.
--When your EF is >6mos, then can begin saving for a home down payment. (This money does double-duty as an extended EF tier.)
--When your EF (+ home down payment) is >12mos, then can begin saving for retirement in your taxable account. (Use munis now.)

Note. While bank checking/savings/mmkt accounts are insured, a mmkt fund is not insured.

For now, don’t save for EF/ST/IT goals using a muni (or any) bond fund. Why? The need (1) to turn off reinvested distributions to avoid small lot tax reporting, (2) to use “specific lot identification” cost basis to minimize capital gains and maximize tax-loss harvesting, and (3) Sch D tax reporting when you sell, will unnecessarily complicate your life. For you, for now, it’s much simpler to save using only checking, savings, mmkt, and CDs.

Maybe don’t save for EF/ST/IT goals using CDs. Why? If you can’t handle small ER cost differences, then you will truly hate the CD EWP (early withdrawal penalty). And the idea of building/managing a CD ladder to avoid EWPs is too much work for you for now. (Disclosure: I’ve thought CD ladders were too much work for me, always.)

Due diligence.

You ask the forum for advice on saving/investing for goals. Our replies advise what has worked for us and are based on our study and experience; but they are no substitute for conducting your own due diligence. You may not (should not) use any advice until after you’ve done your own due diligence and resolved all confusion. Otherwise, “Here be dragons.” You are forewarned.

Example. Investing in total markets. Have you read and understood:
--Sharpe’s paper on The Arithmetic of Active Management? (See Stanford University’s website.)
--The MarketWatch website tracking the long-term results of multiple Lazy Portfolios implementing Sharpe’s idea?
--Swedroe’s The Quest for Alpha which lists the failures of competing ideas? (Or several other recommended books?)
--Buffett’s demonstration of indexing superiority (using only one fund) by (soon?) winning a 10yr $1M bet against 5 hedge funds?

Example. Do you understand that saving for ST goals must differ from savings for LT goals? Why? In the ST, market volatility is your enemy so your primary goal must be “return OF your money”. In the LT, market growth is your friend so your primary goal can be “return ON your money”.

Example. Some advise that when we have “enough” (as defined by us) that we don’t need a dedicated EF because all of our investments become our EF. Do you understand that this advice is inappropriate for someone just starting out and so has not saved “enough” to use it? Do you understand that even those who can follow the “enough” strategy will still have a large amount in cash (and near-cash equivalents) as the first money they will withdraw? Our need for a large chunk of liquid cash never goes away, so it's appropriate to begin building it from our beginning.

Bottom line. You must conduct your own due diligence, resolve all confusion, and accept any risk before taking the advice of (even well-meaning) strangers.

Disclosure. It required ~10yrs on the BH forum, following discussions that were beyond my ability to completely understand, and reading the recommended books and linked articles, before I was knowledgeable/comfortable enough to perform my due diligence to select a single-state muni fund. (If interested, I posted my process; search forum for “WTCOX”.)

Expect it to require several years too, before you are knowledgeable enough to be comfortable. So while you come up to speed, the above advice is mainstream conservative and will keep you safe while allowing you to jumpstart your retirement investing.

Best wishes.
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Re: Help a 21 y/o Vanguard Investor with a Taxable Account

Postby dratkinson » Sun Jul 16, 2017 5:49 pm

Second thoughts: your home down payment.

I'm a little slow. You're 21 and saving for a home down payment in ~10 years. This means a portion of your home down payment money will probably be in taxable equities. Why?

Because after your EF reaches >12mos (= 6mo EF as cash + 6mo home down payment as cash), you'll begin investing in equities in taxable. And as your age and retirement AA advice (25-30% now, and age-in-bonds at 30), and Swedroe's IT savings goal advice match up, your taxable AA then could be ~70/30. However your taxable AA could be much less risky if you want to keep your home down payment money safer. Your choice.

But before your EF grows to >12mos, you have time to read/think about what is best for you*. And you have plenty of time to tweak your home down payment AA after then.

* The senior investors say our AA is correct when we can SWAN (sleep well at night---no worries). We can only know our AA is correct after we learn more about investing (survive a market correction/crash) and ourself (learn our true risk tolerance). After which we tweak our AA so we can SWAN. We always believe our risk tolerance is much higher... before we experience our first market crash. :)

Bottom line. You don't have to come up with a home down payment plan today, as you have plenty of time to think about it and tweak it later as you gain more experience in learn about investing and yourself. Absent this experience, it's always correct to err on the side of caution.

AA advice. Your advice to keep the first tiers of your ST EFs liquid, is good. The advice to set your initial LT retirement AA to 75/25 or 70/30, is good. But you'll have to decide upon your IT home down payment goal AA for yourself... keeping in mind that if 2008-2009 happens again in 10yrs that your equities will temporarily lose ~40% of their value to the market correction/crash. Meaning: if your taxable equities started the year at 2x your home down payment need, then no worries; but if not, then you (temporarily) lost your home down payment to the market---try again after the market recovers.

Disclosure. The forum reviewed my investments in late 2007 and recommended I change my AA to 50/50.

Long story short: I did, and my total investments temporarily lost 20% during the 2008-2009 40% market crash. Why? Because bonds are safer than stocks, because stock/bond crashes are not typically coincidental, and because mathematically that's what a 50/50 AA and temporary 40% stock loss would predict.

The market was high in late 2007. There was no way I could know I'd have a loss 6mos later.

You must answer for yourself how much of your down payment you are comfortable risking to equities and an unpredictable stock market.
--If you can save only 1x the amount needed for a down payment, then I believe the answer is “very little”.
--If you can save 2x the amount needed, then I believe the answer is 50%. But that also means you would plan to turn a 50% paper loss into an 50% actual loss if you sell during a 50% market crash---something which would not have happened if you’d uses safer investments.
--Of course you can risk more if you can put off buying a home until after any market crash recovery.

You’ve got a few years to think about this before you need to make a decision. Why? Because for the first few years, until your EF + home down payment >12mos of living expenses, you’ll be keeping all your savings liquid to fulfill their primary EF role.

Believe you are wise to plan to delay buying a home until after you're 30yo and more settled. Why? The time gives you the chance to grow personally and professionally. And renting gives you the flexibility to more easily walk away to accept a better job, or to continue your education and change your career path.
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