1.6 M Portfolio

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DuckBogle
Posts: 5
Joined: Wed Apr 11, 2018 4:10 pm

1.6 M Portfolio

Post by DuckBogle » Mon May 28, 2018 10:05 am

<t>Emergency funds 30K
Debt none
tax filing married jointly
tax rate 12% no state
State Florida
age 72
stock 40 bond 55
international 5%

1 M in the following Simple IRA

FDRXX** cash .5%
ARCC Aries Cap 15%
FADMX Strategic inc 14%
FAGIX Cap and inc 22%
FCNTX Contra 12%
FENY Energy .5%
FOCPX OTC 11%
FTBFX total Bond 10%
OAKIX Internation 3%
SPHIX High Income 12%

60K in a Roth in Equites:
FCNTX Contra 30%
FLPSX Low Priced 30%
FNMIX New Market 20%
OAKIX International 20%

240 K in a fixed income AXA annuity (6%)
We have not annuitized this , but draw 5% from it.

400K in a fixed annuity that comes due on DEC 2018 and we must take it as it will not renew.
This is part of my Fidelity IRA.

So that is my big question of the year, what do with the 400K. I want to start taking advantage of the money
in some fashion, but unsure of the best path. We are living below our RMD of 60k plus SS.

Any suggestions would be greatly appreciated on any of the above.

Best Regards,
Charlie


No new contributions

Sidney
Posts: 6694
Joined: Thu Mar 08, 2007 6:06 pm

Re: 1.6 M Portfolio

Post by Sidney » Mon May 28, 2018 10:12 am

If it were me, with the vast majority of funds in a tax-deferred account, I would be inclined to consolidate everything into some kind of target retirement fund with whatever my target allocation was.
I always wanted to be a procrastinator.

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Alexa9
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Joined: Tue Aug 30, 2016 9:41 am

Re: 1.6 M Portfolio

Post by Alexa9 » Mon May 28, 2018 10:15 am


delamer
Posts: 6270
Joined: Tue Feb 08, 2011 6:13 pm

Re: 1.6 M Portfolio

Post by delamer » Mon May 28, 2018 10:17 am

Is there some reason you don’t want to invest the $400K in the same allocation that you have for your other assets?

In the Bogleheads Wiki, there is a section on lazy portfolios. I’d recommend reviewing it, finding one that you are comfortable holding, and implementing that.

You did not list the expense ratios of your current investments, but I suspect you could probably find funds/ETFs that are cheaper with the same investment goals. If an investment has an ER of much more than 0.1%, you are probably paying more than you need to in expenses and eating into your returns.

Remember that you can sell and buy within your IRA without any tax consequences.

Also, positions that are less than 5% of your assets are not going to any any material effect on your returns/risk.

DuckBogle
Posts: 5
Joined: Wed Apr 11, 2018 4:10 pm

Re: 1.6 M Portfolio

Post by DuckBogle » Mon May 28, 2018 3:45 pm

delamer wrote:
Mon May 28, 2018 10:17 am
Is there some reason you don’t want to invest the $400K in the same allocation that you have for your other assets?

In the Bogleheads Wiki, there is a section on lazy portfolios. I’d recommend reviewing it, finding one that you are comfortable holding, and implementing that.

You did not list the expense ratios of your current investments, but I suspect you could probably find funds/ETFs that are cheaper with the same investment goals. If an investment has an ER of much more than 0.1%, you are probably paying more than you need to in expenses and eating into your returns.

Remember that you can sell and buy within your IRA without any tax consequences.

Also, positions that are less than 5% of your assets are not going to any any material effect on your returns/risk.
400K into existing may be a option and I agree on the 5%. I will look at the Wiki lazy portfolios.
Thank you for taking the time to respond to me.

PFInterest
Posts: 2554
Joined: Sun Jan 08, 2017 12:25 pm

Re: 1.6 M Portfolio

Post by PFInterest » Mon May 28, 2018 4:01 pm

Just for fun.
1.6M is 1,600.
1.6MM is what you mean.

delamer
Posts: 6270
Joined: Tue Feb 08, 2011 6:13 pm

Re: 1.6 M Portfolio

Post by delamer » Mon May 28, 2018 4:04 pm

PFInterest wrote:
Mon May 28, 2018 4:01 pm
Just for fun.
1.6M is 1,600.
1.6MM is what you mean.
No, 1.6K is 1600.

The OP Is correct.

Gill
Posts: 4733
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: 1.6 M Portfolio

Post by Gill » Mon May 28, 2018 4:31 pm

delamer wrote:
Mon May 28, 2018 4:04 pm
PFInterest wrote:
Mon May 28, 2018 4:01 pm
Just for fun.
1.6M is 1,600.
1.6MM is what you mean.
No, 1.6K is 1600.

The OP Is correct.
I’m wondering if you both aren’t right. For much of my life I used M to stand for a thousand. I may be completely wrong, but I didn’t see K come into use to mean thousands until the computer age began. I eventually shifted over to the current usage, but I once did as pfinterest suggests.
Gill
Last edited by Gill on Mon May 28, 2018 4:37 pm, edited 2 times in total.

jebmke
Posts: 8421
Joined: Thu Apr 05, 2007 2:44 pm

Re: 1.6 M Portfolio

Post by jebmke » Mon May 28, 2018 4:33 pm

M was a common notation for thousands in my business career. I've seen "K" and "M" used interchangeably.
When you discover that you are riding a dead horse, the best strategy is to dismount.

Gill
Posts: 4733
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: 1.6 M Portfolio

Post by Gill » Mon May 28, 2018 4:35 pm

jebmke wrote:
Mon May 28, 2018 4:33 pm
M was a common notation for thousands in my business career. I've seen "K" and "M" used interchangeably.
Mine too. Glad to hear pfinterest and I aren’t the only ones. I believe it comes from the Roman Numeral M for thousand.
Gill
Last edited by Gill on Mon May 28, 2018 4:39 pm, edited 1 time in total.

delamer
Posts: 6270
Joined: Tue Feb 08, 2011 6:13 pm

Re: 1.6 M Portfolio

Post by delamer » Mon May 28, 2018 4:39 pm

Gill wrote:
Mon May 28, 2018 4:31 pm
delamer wrote:
Mon May 28, 2018 4:04 pm
PFInterest wrote:
Mon May 28, 2018 4:01 pm
Just for fun.
1.6M is 1,600.
1.6MM is what you mean.
No, 1.6K is 1600.

The OP Is correct.
I’m wondering if you both aren’t right. For much of my life I used M to stand for a thousand. I may be completely wrong, but I didn’t see K come into use to mean thousands until the computer age began. I eventually shifted over to the current usage, but I once did as delamer suggests.
Gilll
Interesting.

My husband and I both have undergrad business degrees from the 70s.

Neither of us ever saw anything but K used to indicate 1,000.

Gill
Posts: 4733
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: 1.6 M Portfolio

Post by Gill » Mon May 28, 2018 4:41 pm

delamer wrote:
Mon May 28, 2018 4:39 pm
Gill wrote:
Mon May 28, 2018 4:31 pm
delamer wrote:
Mon May 28, 2018 4:04 pm
PFInterest wrote:
Mon May 28, 2018 4:01 pm
Just for fun.
1.6M is 1,600.
1.6MM is what you mean.
No, 1.6K is 1600.

The OP Is correct.
I’m wondering if you both aren’t right. For much of my life I used M to stand for a thousand. I may be completely wrong, but I didn’t see K come into use to mean thousands until the computer age began. I eventually shifted over to the current usage, but I once did as delamer suggests.
Gilll
My husband and I both have undergrad business degrees from the 70s.

Neither of us ever saw anything but K used to indicate 1,000.
You’re too young. I have an undergraduate finance degree from the ‘60’s. It’s the Roman Numeral for one thousand.
Gill

jebmke
Posts: 8421
Joined: Thu Apr 05, 2007 2:44 pm

Re: 1.6 M Portfolio

Post by jebmke » Mon May 28, 2018 4:43 pm

I think it is a throwback to the roman numeral M. One M is 1,000. MM is a shortform of M*M.

edit: I should look before I post. Gill and I came up with the same answer. My (graduate) biz degree is from 1979. It may be that more "old line" industries used the "M" notation.
When you discover that you are riding a dead horse, the best strategy is to dismount.

student
Posts: 2576
Joined: Fri Apr 03, 2015 6:58 am

Re: 1.6 M Portfolio

Post by student » Mon May 28, 2018 4:47 pm

This source says using k for 1,000 has its origin from kilo (Greek). https://www.quora.com/Why-do-we-represe ... d-with-a-K Same info from http://mathcentral.uregina.ca/QQ/databa ... arry1.html

Jack FFR1846
Posts: 7966
Joined: Tue Dec 31, 2013 7:05 am

Re: 1.6 M Portfolio

Post by Jack FFR1846 » Mon May 28, 2018 4:49 pm

Regardless of notation, we know what's meant. While a 1.6 Million dollar portfolio is quite big, it's not out of line for a Boglehead. If he were to only have 1.6 thousand dollars at 70, he would indeed be in quite a lot of trouble to cover retirement.

I am actually glad that the financial and Greek terms were explained, as I'm an engineer and have only ever known the scientific notation (for math) substitutes for 3rds of exponents and secondarily for computers....which are far less accurate because none of them mean an even number (1028, instead of 1000 for example). When the Super Bowl numbers come out in Roman, I'm lost.

On the "old school" line, I did have to take slide rule math in my freshman year of community college. We were the last class to have it and were allowed to use calculators on the final.
Last edited by Jack FFR1846 on Mon May 28, 2018 4:50 pm, edited 1 time in total.
Bogle: Smart Beta is stupid

Gill
Posts: 4733
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: 1.6 M Portfolio

Post by Gill » Mon May 28, 2018 4:50 pm

student wrote:
Mon May 28, 2018 4:47 pm
This source says using k for 1,000 has its origin from kilo (Greek). https://www.quora.com/Why-do-we-represe ... d-with-a-K Same info from http://mathcentral.uregina.ca/QQ/databa ... arry1.html
..but I didn’t see K in common usage until the widespread use of computers. M was once the common symbol for thousand.
Gill

Neuron
Posts: 18
Joined: Sat Jul 08, 2017 8:25 pm

Re: 1.6 M Portfolio

Post by Neuron » Mon May 28, 2018 5:04 pm

K is used in scientific/metric abbreviations and has been prior to computers. Kilovolt = kV, kilometer = km, etc.

Gill
Posts: 4733
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: 1.6 M Portfolio

Post by Gill » Mon May 28, 2018 5:20 pm

Neuron wrote:
Mon May 28, 2018 5:04 pm
K is used in scientific/metric abbreviations and has been prior to computers. Kilovolt = kV, kilometer = km, etc.
Yes, I know but not in common usage as it is today. I think we all agree, M and K have both been properly used to stand for a thousand.
Gill

delamer
Posts: 6270
Joined: Tue Feb 08, 2011 6:13 pm

Re: 1.6 M Portfolio

Post by delamer » Mon May 28, 2018 6:21 pm

Gill wrote:
Mon May 28, 2018 4:41 pm
delamer wrote:
Mon May 28, 2018 4:39 pm
Gill wrote:
Mon May 28, 2018 4:31 pm
delamer wrote:
Mon May 28, 2018 4:04 pm
PFInterest wrote:
Mon May 28, 2018 4:01 pm
Just for fun.
1.6M is 1,600.
1.6MM is what you mean.
No, 1.6K is 1600.

The OP Is correct.
I’m wondering if you both aren’t right. For much of my life I used M to stand for a thousand. I may be completely wrong, but I didn’t see K come into use to mean thousands until the computer age began. I eventually shifted over to the current usage, but I once did as delamer suggests.
Gilll
My husband and I both have undergrad business degrees from the 70s.

Neither of us ever saw anything but K used to indicate 1,000.
You’re too young. I have an undergraduate finance degree from the ‘60’s. It’s the Roman Numeral for one thousand.
Gill

No one has said that about me in a long time! :D

And you are right about the Roman Numeral, of course. I just never saw M used in a business/economics context.

AlmstRtrd
Posts: 49
Joined: Fri Dec 08, 2017 4:57 pm

Re: 1.6 M Portfolio

Post by AlmstRtrd » Mon May 28, 2018 7:44 pm

1,000,000 + 60,000 + 240,000 + 400,000 is actually 1.7 million. I'd be happy if I suddenly realized I had an extra $100,000!

And that's not even including your $30,000 in the e-fund.

Gill
Posts: 4733
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: 1.6 M Portfolio

Post by Gill » Mon May 28, 2018 8:29 pm

AlmstRtrd wrote:
Mon May 28, 2018 7:44 pm
1,000,000 + 60,000 + 240,000 + 400,000 is actually 1.7 million. I'd be happy if I suddenly realized I had an extra $100,000!

And that's not even including your $30,000 in the e-fund.
Good catch!
Gill

Compound
Posts: 616
Joined: Mon May 26, 2014 1:32 pm

Re: 1.6 M Portfolio

Post by Compound » Mon May 28, 2018 8:48 pm

So that is my big question of the year, what do with the 400K. I want to start taking advantage of the money
in some fashion, but unsure of the best path. We are living below our RMD of 60k plus SS.
Invest the money in accordance with keeping your portfolio asset allocation where you desire it.

DuckBogle
Posts: 5
Joined: Wed Apr 11, 2018 4:10 pm

Re: 1.6 M Portfolio

Post by DuckBogle » Tue May 29, 2018 11:09 am

Compound wrote:
Mon May 28, 2018 8:48 pm
So that is my big question of the year, what do with the 400K. I want to start taking advantage of the money
in some fashion, but unsure of the best path. We are living below our RMD of 60k plus SS.
Invest the money in accordance with keeping your portfolio asset allocation where you desire it.
Sorry I should have included the 60K in the opening statement. IRA plus Roth.
My oversight.
So sorry we got off on the M vs K.

DuckBogle
Posts: 5
Joined: Wed Apr 11, 2018 4:10 pm

Re: 1.6 M Portfolio

Post by DuckBogle » Wed May 30, 2018 8:40 am

DuckBogle wrote:
Mon May 28, 2018 10:05 am
<t>Emergency funds 30K
Debt none
tax filing married jointly
tax rate 12% no state
State Florida
age 72
stock 40 bond 55
international 5%

1 M in the following Simple IRA

FDRXX** cash .5%
ARCC Aries Cap 15%
FADMX Strategic inc 14%
FAGIX Cap and inc 22%
FCNTX Contra 12%
FENY Energy .5%
FOCPX OTC 11%
FTBFX total Bond 10%
OAKIX Internation 3%
SPHIX High Income 12%

60K in a Roth in Equites:
FCNTX Contra 30%
FLPSX Low Priced 30%
FNMIX New Market 20%
OAKIX International 20%

240 K in a fixed income AXA annuity (6%)
We have not annuitized this , but draw 5% from it.

400K in a fixed annuity that comes due on DEC 2018 and we must take it as it will not renew.
This is part of my Fidelity IRA.

So that is my big question of the year, what do with the 400K. I want to start taking advantage of the money
in some fashion, but unsure of the best path. We are living below our RMD of 60k plus SS.

Any suggestions would be greatly appreciated on any of the above.

Best Regards,
Charlie


No new contributions
Does anyone have suggestions on the 400K, immediate annuity maybe a option ?
Thanks in advance

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