Portfolio Re-balance... What's Next?

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time4life
Posts: 31
Joined: Sat May 06, 2017 8:24 pm

Portfolio Re-balance... What's Next?

Post by time4life » Thu Jan 11, 2018 7:39 am

I am still a fairly new investor. Would like to thank everyone who helped me get this far and looking to become a better, smarter investor.

My Status:
Emergency funds: 6 months of expenses (Pure Point Online Savings @ 1.40%)
Debt: No debt
Tax Filing Status: Single
Tax Rate: xx% Federal, xx% State (I don’t know how to find out or pull this information. I know/have my LES and W-2 statement)
State of Residence: New York
Age: 25
Desired Asset allocation: 90% stocks / 10% bonds
Desired International allocation: 30% of stocks

Current retirement assets
Military 401K, TSP, 18500 (was 18000 for 2017)

G Fund 0% Balance: $3,672.09
F Fund 12% Balance: $2,784.28
C Fund 63% Balance: $24,878.92
S Fund 16% Balance: $6,184.99
I Fund 9 % Balance: $667.32

Total Balance: $38,187.60 (Jan 2018)
My 1st post that helped me get started: viewtopic.php?f=1&t=218338&p=3712034#p3712034

ROTH IRA at Vanguard, 5500
15% VANGUARD FTSE ALL WORLD EX US SMALL CAP ETF (VSS) ER .13% Balance: $850.01
85% VANGUARD TOTAL INTL STOCK INDEX FUND ETF (VXUS) ER .11% Balance: $5028.42

Total Balance: $5971.98 (Jan 2018)

Contributions

New annual Contributions
$18500 his TSP (ROTH), 401K (employer match, $2751.66 annual contribution from Military)
$5500 his Roth IRA, Vanguard

Available funds

Funds available in his 401(k) TSP
G Fund: a uniquely attractive bond fund that provides yields similar to an intermediate-term Treasury bond fund, but with the stability of principal of a money market fund, and no default risk.
F Fund: a fixed income index commingled trust that tracks the Barclays US Aggregate Bond Index.
C Fund: a large-to-mid cap stock index commingled trust that tracks the S&P 500 Stock Index.
S Fund: a mid-to-small cap stock index commingled trust that tracks the Dow Jones U.S. Completion Total Stock Market Index, commonly known as an Extended market index fund.
I Fund: an international stock index commingled trust that tracks the EAFE Stock Index. Note that the I Fund does not have any emerging market or small-cap holdings.

Funds available in his Roth IRA Vanguard
Vanguard Total Stock ETF (VTI)
Vanguard Total International Stock ETF (VXUS)
Vanguard Total Bond Market ETF (BND)

Questions:
1. Since my goal is to maximize TSP, thought the best was to put bond and domestic stocks with TSP and international with ROTH. I have tried to come close to the 3 fund portfolio. Is the best way to get rid of I fund completely and just invest in G, F, C, and S?
1a. If I do that, I run into the problem where I can only put 5500 in Roth and that’s only 23% of 24000 going into international vice 30%. Should i open a 3rd account on top of TSP and ROTH IRA? Or I just leave my TSP allocations and get rid of VSS. I am assuming my C and S is funded correctly at 4:1 ratio being that C is 63% and S is 16%.

2. I did do a interfund transfer within TSP when I decided to allocate money to each fund but I forgot to do that to G fund. Currently has a balance of about 3.5k. Should I leave it there or put it into a different fund?

3. I will be maxing the contribution of 18500 to TSP, 5500 to ROTH, and continuing to contribute 10% my monthly pay to savings. What should I open next for left over money?

Appreciate all the advice and wisdom. Semper Fi to Bogle Heads

Beensabu
Posts: 174
Joined: Sun Aug 14, 2016 3:22 pm

Re: Portfolio Re-balance... What's Next?

Post by Beensabu » Thu Jan 11, 2018 11:25 pm

Bump.

OP's whole portfolio current allocation:

401k TSP
G Fund (8.3%)
F Fund (6.3%)
C Fund (56.3%)
S Fund (14%)
I Fund (1.5%)

Roth IRA
VANGUARD FTSE ALL WORLD EX US SMALL CAP ETF (VSS) ER .13% (1.9%)
VANGUARD TOTAL INTL STOCK INDEX FUND ETF (VXUS) ER .11% (11.4%)

~ 85 stock / 15 bond
Equities ~ 83 US / 17 ex-US
"The only thing that makes life possible is permanent, intolerable uncertainty; not knowing what comes next."

time4life
Posts: 31
Joined: Sat May 06, 2017 8:24 pm

Re: Portfolio Re-balance... What's Next?

Post by time4life » Sat Jan 13, 2018 4:42 am

Thank you Beensabu for that

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Watty
Posts: 13813
Joined: Wed Oct 10, 2007 3:55 pm

Re: Portfolio Re-balance... What's Next?

Post by Watty » Sat Jan 13, 2018 8:13 pm

time4life wrote:
Thu Jan 11, 2018 7:39 am
What should I open next for left over money?
A couple of things;

1) Start saving up a downpayment for a house. (There is no hurry!)
2) Save up to pay cash for your next car.
3) Consider if you have a good "Now vs Later" balance.

You are young, single, and presumably in good health and don't have kids. There are lots of things that you can do now that may be difficult or impossible to do in later phases of your life. Budgeting for something like a frugal trip to Europe could be worth considering.

time4life
Posts: 31
Joined: Sat May 06, 2017 8:24 pm

Re: Portfolio Re-balance... What's Next?

Post by time4life » Sat Jan 13, 2018 9:02 pm

Watty wrote:
Sat Jan 13, 2018 8:13 pm
time4life wrote:
Thu Jan 11, 2018 7:39 am
What should I open next for left over money?
A couple of things;

1) Start saving up a downpayment for a house. (There is no hurry!)
2) Save up to pay cash for your next car.
3) Consider if you have a good "Now vs Later" balance.

You are young, single, and presumably in good health and don't have kids. There are lots of things that you can do now that may be difficult or impossible to do in later phases of your life. Budgeting for something like a frugal trip to Europe could be worth considering.
Watty,

Thank you, offered some good points. I've realized that most of my investments and savings, have been for more long time purposes. The only short term access to money for 1-2 years I would say is my checking account. I might need a used car when I move within the next 3 years, what type of account/investment would work for short term for a purchase? As for as a down payment on a house, being in the military, I wouldn't have the worry about that in a while but your right, doesn't hurt to save for it now and be ready for the future. I would say that's more than 5-10 years away for a down payment/purchase. What type of account/investment would work for this one? As for as my travel expenditures, the only thing I do for that is budget how much i want to spend and it comes out of my checking account as this can happen quickly pretty quickly as I am usually not able to plan more than 3 months out.

Questions:
What type of accounts/investments (VG)for short term purchases like a car?
What type of accounts/investments (VG) for longer term purchases like a down payment on a house?
Utilizing the checking account for frugal trips within couple months to a year the best method?

time4life
Posts: 31
Joined: Sat May 06, 2017 8:24 pm

Re: Portfolio Re-balance... What's Next?

Post by time4life » Mon Jan 15, 2018 7:25 am

*bump*

CheeseFlip
Posts: 40
Joined: Sun Dec 11, 2016 9:15 am

Re: Portfolio Re-balance... What's Next?

Post by CheeseFlip » Mon Jan 15, 2018 12:38 pm

Okay Devil Dog, I'll bite on your portfolio.

Good job maxing tax-advantaged space at your age/grade. You're ahead already. Suggestions:

TSP:
10% F
48% C
12% S
15% I

Roth:
15% VXUS (or VTIAX when you have $10K)

Responses to your questions:
1. Yes, I'd put international in the Roth IRA. It's ~22% of your tax-advantaged space for 2018. for more international, the I Fund is good enough until your Roth IRA space expands. also, my vote is don't bother with VSS. It'll just complicate your portfolio with questionable benefit.
2. The TSP has the easiest rebalancing tool in existence. Just punch in the percentages, they move the money. Given your age, the F Fund is good. Keep the TSP and shift to G in the years before retiring.
3. You can use a short term bond to save in a taxable account, VBISX or other. A CD also works; NFCU often has good promo "add-on" CDs.

A couple of other thoughts -
1. You're likely at your lowest career tax rate. Favor the Roth TSP if you can swing it.
2. Don't think you have to buy a house straight out of the gate. Lots of service-families lose money on houses. People just don't talk about those as much.
3. As a young person, think about how to build your human capital first. Take the 'right' billets, or use the GI Bill if you get out.

Good luck!

time4life
Posts: 31
Joined: Sat May 06, 2017 8:24 pm

Re: Portfolio Re-balance... What's Next?

Post by time4life » Tue Jan 16, 2018 9:35 am

CheeseFlip wrote:
Mon Jan 15, 2018 12:38 pm
Okay Devil Dog, I'll bite on your portfolio.

Good job maxing tax-advantaged space at your age/grade. You're ahead already. Suggestions:

TSP:
10% F
48% C
12% S
15% I

Roth:
15% VXUS (or VTIAX when you have $10K)

Responses to your questions:
1. Yes, I'd put international in the Roth IRA. It's ~22% of your tax-advantaged space for 2018. for more international, the I Fund is good enough until your Roth IRA space expands. also, my vote is don't bother with VSS. It'll just complicate your portfolio with questionable benefit.
2. The TSP has the easiest rebalancing tool in existence. Just punch in the percentages, they move the money. Given your age, the F Fund is good. Keep the TSP and shift to G in the years before retiring.
3. You can use a short term bond to save in a taxable account, VBISX or other. A CD also works; NFCU often has good promo "add-on" CDs.

A couple of other thoughts -
1. You're likely at your lowest career tax rate. Favor the Roth TSP if you can swing it.
2. Don't think you have to buy a house straight out of the gate. Lots of service-families lose money on houses. People just don't talk about those as much.
3. As a young person, think about how to build your human capital first. Take the 'right' billets, or use the GI Bill if you get out.

Good luck!
Semper Fi CheeseFlip. Appreciate the help. If I go with the TSP and ROTH allocations, what do I do with the left over money for ROTH IRA? I am contributing 5500 to the ROTH IRA and if I'm only using 15% that leaves me with 1900 in VG to use. Also should I take the balance that I have in the G fund and move it?

CheeseFlip
Posts: 40
Joined: Sun Dec 11, 2016 9:15 am

Re: Portfolio Re-balance... What's Next?

Post by CheeseFlip » Thu Jan 18, 2018 7:06 pm

RE: Roth IRA, the idea is make your Roth IRA 100% VXUS/VTIAX until it hits your desired international allocation. (Vanguard's International offering is just a bit better diversified than TSP I.)

And yes, Move the G funds to meet your desired allocation. There's no bill to pay for moving funds within tax-advantaged accounts. Also pay into Roth TSP instead of Traditional TSP if you can (the option is in MyPay.)

Keep learning and plan to rebalance in a year.

Fishing50
Posts: 247
Joined: Tue Sep 27, 2016 1:18 am

Re: Portfolio Re-balance... What's Next?

Post by Fishing50 » Fri Jan 19, 2018 3:54 am

Single, with a damn near guaranteed military paycheck you don't need a 6 month emergency fund. Yes, you should have some cash available for a vacation, down payment on a quality used car purchase, etc. Get some of that money invested in a taxable account with total US and/or total Intl equity index funds that are extremely tax efficient. You will not regret buying broad market index funds with taxable assets you can hold forever.

Learn your tax rate and tax strategies like tax loss harvesting and capital gains harvesting, deployments will provide opportunities to save on taxes. A very basic estimation, base pay x 12 < $50,700 you are in the 12% tax bracket and Roth TSP is a perfect choice. Above that income, you are in the 22% tax bracket. There are still compelling arguments for Roth TSP contributions but the calculations are much closer. Being 25yrs old, with a probable pension, Roth TSP is a good option even in the 22% tax bracket.

I like your asset allocation 90% stocks / 10% bonds with intl 30% of stocks. Use it as a target, when categories are below the target allocation, allot new contributions against shortages. Don't worry much about selling to get things in balance, new contributions will keep things moving towards the allocation will be good enough.

Your investing priorities should be:
Roth IRA
Roth TSP to the match
Taxable investments

I recommend opening a taxable brokerage account to keep some assets in taxable for flexibility. You can sell assets in a taxable brokerage to buy that house, retire early, etc.

Keep international allocation in taxable and Roth accounts because Vanguard Total International Index funds like VSS, VXUS, and VTIAX are better than I Fund because they include emerging markets.
Keep bonds in TSP. A mix between G Fund and F Fund is good for your long time horizon.
Keep C Fund and S Fund in a 4:1 ration to match the total market. Add more S Fund if you'd like a small cap tilt.

You are on the right course...keep charging! 8-)
It's perfectly legal, go ask the IRS, they'll say the same thing. I actually feel stupid telling you this, I'm sure you would've investigated the matter yourself. Andy Dufresne

time4life
Posts: 31
Joined: Sat May 06, 2017 8:24 pm

Re: Portfolio Re-balance... What's Next?

Post by time4life » Fri Jan 19, 2018 4:12 am

Fishing50 wrote:
Fri Jan 19, 2018 3:54 am
Single, with a damn near guaranteed military paycheck you don't need a 6 month emergency fund. Yes, you should have some cash available for a vacation, down payment on a quality used car purchase, etc. Get some of that money invested in a taxable account with total US and/or total Intl equity index funds that are extremely tax efficient. You will not regret buying broad market index funds with taxable assets you can hold forever.

Learn your tax rate and tax strategies like tax loss harvesting and capital gains harvesting, deployments will provide opportunities to save on taxes. A very basic estimation, base pay x 12 < $50,700 you are in the 12% tax bracket and Roth TSP is a perfect choice. Above that income, you are in the 22% tax bracket. There are still compelling arguments for Roth TSP contributions but the calculations are much closer. Being 25yrs old, with a probable pension, Roth TSP is a good option even in the 22% tax bracket.

I like your asset allocation 90% stocks / 10% bonds with intl 30% of stocks. Use it as a target, when categories are below the target allocation, allot new contributions against shortages. Don't worry much about selling to get things in balance, new contributions will keep things moving towards the allocation will be good enough.

Your investing priorities should be:
Roth IRA
Roth TSP to the match
Taxable investments

I recommend opening a taxable brokerage account to keep some assets in taxable for flexibility. You can sell assets in a taxable brokerage to buy that house, retire early, etc.

Keep international allocation in taxable and Roth accounts because Vanguard Total International Index funds like VSS, VXUS, and VTIAX are better than I Fund because they include emerging markets.
Keep bonds in TSP. A mix between G Fund and F Fund is good for your long time horizon.
Keep C Fund and S Fund in a 4:1 ration to match the total market. Add more S Fund if you'd like a small cap tilt.

You are on the right course...keep charging! 8-)
Fishing50, thanks for the support! Right about the savings fund, it is pretty high. I live pretty frugal and don't have much expenses. Will move some funds to ROTH IRA, and taxable account. I will erase the I fund and go fully VXUS for the reason of it being more diversified and having emerging markets.

Update 1/19/18:
-Moved some funds from savings to ROTH TSP
-Removed I fund
-Set up a VG Individual brokerage account

Update 1/24/18:
Based on the changes, I've accepted the fact that I cannot reach the "ideal" allocation. As of right now, my percentages are:
Bonds- 14%
US index- 63%
Int index- 23%
Total: 100%
Bonds/U.S stock in TSP and VSS/VXUS in ROTH IRA. Plan on investing VXUS in individual brokerage account.

time4life
Posts: 31
Joined: Sat May 06, 2017 8:24 pm

Re: Portfolio Re-balance... What's Next?

Post by time4life » Thu Feb 01, 2018 6:41 am

*bump*

TwstdSista
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Re: Portfolio Re-balance... What's Next?

Post by TwstdSista » Thu Feb 01, 2018 6:47 am

That sounds reasonable to me -- good deal!

PlayingLife
Posts: 315
Joined: Sun Dec 29, 2013 3:10 pm

Re: Portfolio Re-balance... What's Next?

Post by PlayingLife » Thu Feb 01, 2018 7:48 am

time4life - would like to add a couple of off-topic points here...

First, great job in getting your financial life together at a young age - it looks like you are really on track, so nice job and thanks for your service.

I'm mid 30's now and got serious about retirement accounts around age 26/27. I only started maxing accounts a few years ago, the snowball effect has been quite remarkable given recent market conditions. Here are some other life points to consider....

1. As everyone else said, make sure you are maxing those Roth's as you may be past the income limitations someday - you definitely are doing the right thing by taking advantage now
2. Don't forget what may be coming down the road in your late 20's / early 30's and plan accordingly....my point is, pay attention to your income level and ensure your career plan aligns with your "after-tax" financial goals, after you max all your non-taxable accounts. Your career choices at this age will likely set you up for the next couple of decades unless you go rogue and start your own business at some point.
3. Examples of possible expenses in relation to point #2 --> House & home remodels/repairs | Student loans if you go back to school, or a future spouse's student loans | Children - childcare alone can be $1000 - 1600 a month | Various insurances = several thousand a year | Vehicles | Family vacations. You may or may not want some of these, but your spending will likely increase with time. This is just life : )
4. Comment on a house ---> We put 20% down in a HCOL but I wish we put more as I am on the "pay the mortgage down" side of the fence. Besides a mortgage there is definitely always something to buy or repair/upgrade (snowblower, bathroom repairs, deck staining, etc, etc). Would have been great to have an extra $100K sitting around in the beginning!

You could put after-tax money into index funds as well. Or if you need it liquid, an AMEX savings account with a 1.35% rate is what we do. Best of luck!

time4life
Posts: 31
Joined: Sat May 06, 2017 8:24 pm

Re: Portfolio Re-balance... What's Next?

Post by time4life » Fri Feb 02, 2018 6:52 am

PlayingLife wrote:
Thu Feb 01, 2018 7:48 am
time4life - would like to add a couple of off-topic points here...

First, great job in getting your financial life together at a young age - it looks like you are really on track, so nice job and thanks for your service.

I'm mid 30's now and got serious about retirement accounts around age 26/27. I only started maxing accounts a few years ago, the snowball effect has been quite remarkable given recent market conditions. Here are some other life points to consider....

1. As everyone else said, make sure you are maxing those Roth's as you may be past the income limitations someday - you definitely are doing the right thing by taking advantage now
2. Don't forget what may be coming down the road in your late 20's / early 30's and plan accordingly....my point is, pay attention to your income level and ensure your career plan aligns with your "after-tax" financial goals, after you max all your non-taxable accounts. Your career choices at this age will likely set you up for the next couple of decades unless you go rogue and start your own business at some point.
3. Examples of possible expenses in relation to point #2 --> House & home remodels/repairs | Student loans if you go back to school, or a future spouse's student loans | Children - childcare alone can be $1000 - 1600 a month | Various insurances = several thousand a year | Vehicles | Family vacations. You may or may not want some of these, but your spending will likely increase with time. This is just life : )
4. Comment on a house ---> We put 20% down in a HCOL but I wish we put more as I am on the "pay the mortgage down" side of the fence. Besides a mortgage there is definitely always something to buy or repair/upgrade (snowblower, bathroom repairs, deck staining, etc, etc). Would have been great to have an extra $100K sitting around in the beginning!

You could put after-tax money into index funds as well. Or if you need it liquid, an AMEX savings account with a 1.35% rate is what we do. Best of luck!
PlayingLife, appreciate the input. I am currently maxing out my all my ROTH investments at the moment and looking into individual brokerage now. What is HCOL btw? Is that somewhere you save/invest your money for a down payment on a house? I do have pure point savings which is currently at 1.60 - 1.75%.

Beensabu
Posts: 174
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Re: Portfolio Re-balance... What's Next?

Post by Beensabu » Sat Feb 03, 2018 9:29 pm

time4life wrote:What is HCOL btw?
High cost of living (area). That's why just the 20% down. It's enough to avoid private mortgage insurance (PMI), which is extra monthly money down the drain, when home prices are ridiculous but rents even more so.

time4life
Posts: 31
Joined: Sat May 06, 2017 8:24 pm

Re: Portfolio Re-balance... What's Next?

Post by time4life » Sun Feb 04, 2018 1:59 am

Beensabu wrote:
Sat Feb 03, 2018 9:29 pm
time4life wrote:What is HCOL btw?
High cost of living (area). That's why just the 20% down. It's enough to avoid private mortgage insurance (PMI), which is extra monthly money down the drain, when home prices are ridiculous but rents even more so.
Is there something that I can seek and readily available or you can only do HCOL in certain areas that are specific to high costs...

Beensabu
Posts: 174
Joined: Sun Aug 14, 2016 3:22 pm

Re: Portfolio Re-balance... What's Next?

Post by Beensabu » Sun Feb 04, 2018 12:55 pm

time4life wrote:
Sun Feb 04, 2018 1:59 am
Beensabu wrote:
Sat Feb 03, 2018 9:29 pm
time4life wrote:What is HCOL btw?
High cost of living (area). That's why just the 20% down. It's enough to avoid private mortgage insurance (PMI), which is extra monthly money down the drain, when home prices are ridiculous but rents even more so.
Is there something that I can seek and readily available or you can only do HCOL in certain areas that are specific to high costs...
It's just an acronym (and an adjective), not something you do or use. HCOL (high cost of living) vs. LCOL (low cost of living). Putting enough down on a home to avoid PMI depends on how much you can afford to put down and how much the home costs. Let's say -- picking random example numbers -- you have $100k for a down payment. For a $500k home, that's 20% down. For a $200k home, that's 50% down. If you live somewhere that $500k homes are the norm, then putting the whole $100k down lets you avoid PMI. If you live somewhere that $200k homes are the norm, then putting $40k down lets you avoid PMI, and you can keep the remaining $60k in reserve for repairs/maintenance/upgrades or use some or all of it to reduce the amount of the mortgage.

time4life
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Re: Portfolio Re-balance... What's Next?

Post by time4life » Mon Feb 05, 2018 6:57 am

Beensabu wrote:
Sun Feb 04, 2018 12:55 pm
time4life wrote:
Sun Feb 04, 2018 1:59 am
Beensabu wrote:
Sat Feb 03, 2018 9:29 pm
time4life wrote:What is HCOL btw?
High cost of living (area). That's why just the 20% down. It's enough to avoid private mortgage insurance (PMI), which is extra monthly money down the drain, when home prices are ridiculous but rents even more so.
Is there something that I can seek and readily available or you can only do HCOL in certain areas that are specific to high costs...
It's just an acronym (and an adjective), not something you do or use. HCOL (high cost of living) vs. LCOL (low cost of living). Putting enough down on a home to avoid PMI depends on how much you can afford to put down and how much the home costs. Let's say -- picking random example numbers -- you have $100k for a down payment. For a $500k home, that's 20% down. For a $200k home, that's 50% down. If you live somewhere that $500k homes are the norm, then putting the whole $100k down lets you avoid PMI. If you live somewhere that $200k homes are the norm, then putting $40k down lets you avoid PMI, and you can keep the remaining $60k in reserve for repairs/maintenance/upgrades or use some or all of it to reduce the amount of the mortgage.
Ahh, understood. Thought it was some type of insurance or something lol. I'll be utilizing my savings and taxable accounts to put enough down on a house and have some reserve.

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AtlasShrugged?
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Re: Portfolio Re-balance... What's Next?

Post by AtlasShrugged? » Mon Feb 05, 2018 7:30 am

time4life....I will give you somewhat different advice.

1) If you do not have a written ISP, write one.
2) Decide if the military will be your career. If so, think in terms of 20 (for the pension). And BTW, thank you from this American citizen.
3) Stay alive. This should have actually been #1.
4) As long as you are military, I would not, repeat not, buy a home. Base facilities might suck a little, but are serviceable.
5) You cannot put a high enough value on a prenuptual agreement. Until you don't have one. Trust me on this one.
6) It takes a very special person to be a spouse of a service member. Particularly when you're away on a long deployment. Think long and hard. And when you think you have reached a conclusion.....think long and hard once more.

Your investments. First, you're doing a great job. I wish I had had your brains and discipline at your age. Second, what matters the most right now is how much you put in, and that you are putting in. The asset allocation, in my mind, is not quite as important. Just keep saving. And follow your written ISP. Good Luck.
“If you don't know, the thing to do is not to get scared, but to learn.”

time4life
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Re: Portfolio Re-balance... What's Next?

Post by time4life » Mon Feb 05, 2018 8:16 am

JCE66 wrote:
Mon Feb 05, 2018 7:30 am
time4life....I will give you somewhat different advice.

1) If you do not have a written ISP, write one.
2) Decide if the military will be your career. If so, think in terms of 20 (for the pension). And BTW, thank you from this American citizen.
3) Stay alive. This should have actually been #1.
4) As long as you are military, I would not, repeat not, buy a home. Base facilities might suck a little, but are serviceable.
5) You cannot put a high enough value on a prenuptual agreement. Until you don't have one. Trust me on this one.
6) It takes a very special person to be a spouse of a service member. Particularly when you're away on a long deployment. Think long and hard. And when you think you have reached a conclusion.....think long and hard once more.

Your investments. First, you're doing a great job. I wish I had had your brains and discipline at your age. Second, what matters the most right now is how much you put in, and that you are putting in. The asset allocation, in my mind, is not quite as important. Just keep saving. And follow your written ISP. Good Luck.
JCE66, appreciate your 2 cents.
1) - whats an ISP?
2) - Someone once told me "Prepare to stay in and leave at the same time"
3) - Not infantry, so my job is not too risky.
4) - Yea i don't have any desires to buying a home anytime soon. However, met plenty of people who bought homes as a married couple who paid of the mortgage payments with housing allowance alone, and then utilized renters to make additional income to pay off the mortgage faster. But I wouldn't pursue this unless I was in a location for a couple years and it was cheaper to do this then to rent...
5) - Definitely need to be careful of who your start to live your life with but I would assume this would show a significant other that you don't really "trust" them. Kind of a hard thing to accomplish imho. Never looked into it, has there been options to do one in the earlier times of marriage and then re-tract it ?
6) - 100% agree.

- Trying to do my best. I actually just picked up Jack Bogle's book 2 days ago on "The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns." About half way through but definitely convinced and glad that I got to learn about his philosophy through you guys and finally see full (more like 80%) circle with his book. His logic is so damn simple yet no-one does what he is stating.

Semper Fi

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AtlasShrugged?
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Re: Portfolio Re-balance... What's Next?

Post by AtlasShrugged? » Mon Feb 05, 2018 8:41 am

JCE66, appreciate your 2 cents.
1) - whats an ISP?
This is your written Investment policy statement. If you look in the Wiki, there are some good examples. Try this link. https://www.bogleheads.org/wiki/Investm ... _statement

This will be your best friend, investment-wise. Remember that the worst enemy to your portfolio stares at you every morning in the bathroom mirror.
5) - Definitely need to be careful of who your start to live your life with but I would assume this would show a significant other that you don't really "trust" them. Kind of a hard thing to accomplish imho. Never looked into it, has there been options to do one in the earlier times of marriage and then re-tract it ?
My answer is 'So what'. With divorce rates of 50%+, this is just prudent protection of your assets. You cannot predict the future. I used to think the same way you did. My thinking has changed over time. Note, I am married to my beloved wife for 27 years....but I would still do the pre-nup. Back in the late 80's and early 90's - prenups were rare. Now, it is a different story. Always protect yourself.

Read anything Jack Bogle, and/or Taylor Larimore. Jasom Zweig is also very good, and at times hilarious.
“If you don't know, the thing to do is not to get scared, but to learn.”

time4life
Posts: 31
Joined: Sat May 06, 2017 8:24 pm

Re: Portfolio Re-balance... What's Next?

Post by time4life » Fri Feb 16, 2018 6:29 am

That's a valid point, will take that into consideration. Tried to capitalize on index funds by purchasing more when the market was down. Had some some success I suppose. Bought VXUS originally at 58.57 for 86 shares in January and then when the market went down, tried to purchase more, and bought at 55.80 at 55 shares exactly a month later.

lgerla
Posts: 21
Joined: Tue Jan 31, 2017 10:07 pm

Re: Portfolio Re-balance... What's Next?

Post by lgerla » Fri Feb 16, 2018 9:39 am

Pre-nups are hard to imagine doing when you're young. It's not something you would spring on somebody, and it doesn't have to be elaborate.

One of the tenets of How to Get Rich (as espoused by White Coat Investor) is to marry well and stay married. viewtopic.php?f=10&t=19085

This is something extra important for you to consider, with the demands of your career and its potential benefits. One, it puts extra strain on any marriage. Two, your biggest asset by far will be your pension, if you continue in your career. That is worth protecting.

Nevertheless, your potential future wife may very well sacrifice her earning power by the number of transfers required, and she will have earned her mettle holding down the fort (possibly with kids) while you are away.

As WCI says, make sure you are in agreement on the big four (money, religion, kids and sex). In addition, make sure any woman you are serious about is a good fit for the military life, not just enamored with you in uniform!. She would have interests of her own, be sociable and interested in joining in with other wives for support. Someone who has a career that is flexible geographically. Someone who is strong enough to handle many months on her own, most likely with children, and is mature enough to find gratification in sticking out hard things.

Resentment of your career will be her biggest challenge. Not showing appreciation of her sacrifices (in ways that are meaningful to her) will be yours.

Just ask my retired Colonel :wink:

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