How am I doing?

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Rey
Posts: 3
Joined: Sat Jan 13, 2018 7:23 pm

How am I doing?

Post by Rey » Sun Jan 14, 2018 2:19 am

Age:40
Portfolio size: ~6MM

US stocks: ~92.5% (ETFs/target fund/FANG)
Intl. Stocks:~5% (ETFs)
Alternatives:~1.8% (REITs)
US Bonds:~0.25% (govt/corporate)
Intl. Bonds:~0.12% (govt/corporate)
Cash: ~0.4%
Goal: keep investing to hit $10MM by age 48.

Slowtraveler
Posts: 29
Joined: Wed Jan 10, 2018 10:21 am

Re: How am I doing?

Post by Slowtraveler » Sun Jan 14, 2018 4:07 am

In terms of sheer portfolio size, welcome to the 1%. You're killing it there.

But what are your expenses in the range of? If anything under a 3% wr rate (180k annual expenses) then you are very good as well. I personally think you're heavy in domestic stocks and would skew towards international more but so far, domestic has worked out well and Buffet/Bogle are both on your side.

Also, why the tiny percentage in bonds, alternatives, and international? It seems insignificant to have near 0% holdings in lowering risk, especially when your dividends are in the 6 figure range. I'd up international stocks either way and also total bonds if your wr is above 3%.

Overall, nice portfolio though.

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dwickenh
Posts: 1464
Joined: Sun Jan 04, 2015 9:45 pm
Location: Illinois

Re: How am I doing?

Post by dwickenh » Sun Jan 14, 2018 8:26 am

Rey wrote:
Sun Jan 14, 2018 2:19 am
Age:40
Portfolio size: ~6MM

US stocks: ~92.5% (ETFs/target fund/FANG)
Intl. Stocks:~5% (ETFs)
Alternatives:~1.8% (REITs)
US Bonds:~0.25% (govt/corporate)
Intl. Bonds:~0.12% (govt/corporate)
Cash: ~0.4%
Goal: keep investing to hit $10MM by age 48.
You might want to look at the % of loss in a bear market on your portfolio. If that doesn't shock you, then your portfolio is on the right track. I would add to the foreign stock % also. At your age, I would have minimum of 20% bonds just to dampen the volatility of the stocks. Needless to say, you are killing it with the net worth at your age. Remember to enjoy some of it while you are young and healthy.

Best to you,

Dan
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

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Watty
Posts: 14630
Joined: Wed Oct 10, 2007 3:55 pm

Re: How am I doing?

Post by Watty » Sun Jan 14, 2018 11:10 pm

It is extremely risky to have that much in stocks, and all US stocks too, when you are on the cusp of entering middle age(just where is that line?).

The market is at an all time high so it has worked well for you but that will not always be the case. Instead of $10 Million at 48, you could easily have less(much less) than you have today.

You will get better feedback if you enter your information using this suggested guideline.

viewtopic.php?f=1&t=6212

Rey
Posts: 3
Joined: Sat Jan 13, 2018 7:23 pm

Re: How am I doing?

Post by Rey » Sun Jan 14, 2018 11:14 pm

Thanks slowtraveler@ and Dan. Appreciate your feedback.

I am very frugal and live way below my means. Annual expense (including mortgage of 26k and 24k towards 529 for my kid) is around 90k.

The low percentage allocation towards intl and bonds is totally due to me prioritizing us-stocks over other areas until very recently. I agree with both of you that the tilt towards intl and bonds needs to be significantly more. That is my goal for the next 5 years as well.

Rey
Posts: 3
Joined: Sat Jan 13, 2018 7:23 pm

Re: How am I doing?

Post by Rey » Sun Jan 14, 2018 11:17 pm

Thanks Watty@. I will take a look at the topic you shared and update this thread with more details about my portfolio.

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