Portfolio Review & Recent Inheritance & FIRE?

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Topic Author
OneSlimJim
Posts: 8
Joined: Mon Jan 22, 2018 7:47 pm

Portfolio Review & Recent Inheritance & FIRE?

Post by OneSlimJim » Tue Jan 14, 2020 1:26 pm

Hello Bogleheads,

I was absolutely thrilled to discover the Boglehead forum a few years ago. It reinforces how I feel about investing. I have been investing with Vanguard since the age of 20. A few recent and significant life events have left me pondering a few questions. I would sincerely appreciate any fellow Bogleheads taking the time to review my situation and offer any advice. This is my first post.

Emergency funds: Yes
Debt: No
Tax Filing Status: Married Filing Jointly
Tax Rate: 22% Federal, 8.53% State
State of Residence: Iowa
Age: 46/47
Desired Asset allocation: 45% stocks / 45% bonds / 10% cash (cash representing 5 years of expenses held in CDs and money market)
Desired International allocation: 33% of stocks
Current portfolio: $3.3M (including $1.4M recent inheritance) (does not include $180,000 home or $150,000 529 plan for adult child)
Annual Expenses: $60,000

Current retirement assets:

Taxable: (67% of total)
4% ($130,000) Cash (checking and Vanguard MM)
12% ($400,000) Vanguard Total Stock Market Index Fund (VTSAX) (ER 0.04)
3% ($87,000) Vanguard 500 Index Fund (VFIAX) (ER 0.04) Ideally move to VTSAX but $59,000 in LTCG
2% ($57,000) Vanguard Small-Cap Index Fund (VSMAX) (ER 0.05) Ideally move to VTSAX but $38,000 in LTCG
4% ($119,000) Vanguard FTSE All-World ex-US Index Fund (VFWAX) (ER 0.11)
4% ($130,000) EE Bonds (maturing 2022)
6% ($213,000) I Bonds (maturing 2031-2035)
32% ($1,060,000) Recently inherited Schwab account that will be transferred to Vanguard and liquidated/reinvested

His Rollover IRA at Vanguard:
9% ($297,000) Vanguard Total Stock Market Index Fund (VTSAX) (ER 0.04)

His Roth IRA at Vanguard:
9% ($316,000) Vanguard 500 Index Fund (VFIAX) (0.04)
1% ($36,000) Vanguard FTSE All-World ex-US Index Fund (VFWAX) (ER 0.11)
1% ($18,000) Vanguard Total Bond Market Index Fund (VBTLX) (ER 0.05)

His recently inherited IRA:
8% ($272,000) Recently inherited Schwab IRA that will be transferred to Vanguard and liquidated/reinvested

His recently inherited Roth IRA:
4% ($154,000) Recently inherited Schwab Roth IRA that will be transferred to Vanguard and liquidated/reinvested

Her Roth IRA at Vanguard:
4% ($141,000) Vanguard Total Stock Market Index Fund (VTSAX) (ER 0.04)

Percentages do not equal 100% because of rounding.

New annual Contributions:
$6,000 his Roth IRA
$6,000 her Roth IRA

My last parent passed away in the fall of last year which left me with a $1.4M inheritance in the form of a Schwab account. I recently left the healthcare field as the increasing stress of the last few years was beginning to affect me physically and mentally. I am currently taking some time off from employment to hopefully become my old self again. My wife is VERY supportive of this decision. I’m not sure if I will return to the healthcare field or try something totally different and maybe more enjoyable. My wife has worked for the same employer for the past 15 years and enjoys her work for the most part. She earns approximately $23,000 annually. Our health insurance is provided and paid for by her employer…..which adds significant value to her annual wage.

Questions:

1. My mental and physical health have become more of a concern to me. I have only been working three days per week for the last two years and I still left my profession recently due to increasing stress. I’m wondering if I am in a financial position to look for employment (or volunteering) that is more personally rewarding than financially rewarding?

2. Asset allocation. Ideally, I think I would like to have our portfolio provide enough income to allow me to “retire” from my career in the healthcare field. My wife and I thought about a 50/50 stock/bond allocation after putting about five years of expenses in CDs and money market. I guess this works out to be 45% stock / 45% bond / 10% MM & CDs for expenses. Does this sound reasonable? We do not wish to take on more risk than necessary. My wife and I would rather be more protective of what we have than to invest for significant growth.

3. Since I received a step up in cost basis from the inherited Schwab account, I believe I can transfer that account to Vanguard, liquidate the current investments (numerous funds from parent’s advisor), and invest in the same Vanguard index funds that I currently own with minimal tax implications. The three funds that I would like to continue to use are Vanguard Total Stock Market Index Fund (VTSAX), Vanguard FTSE All-World ex-US Index Fund (VFWAX), and Vanguard Total Bond Market Index Fund (VBTLX). I’d like to know, how would my fellow Bogleheads recommend I allocate between and within my different accounts? Taxable, IRA, Roth, and inherited IRA and Roth.

4. The accumulation phase of my investment career has been pretty straight forward……reinvest earnings and contribute new money. If I am now going to transition to use the portfolio for living expenses, how does that look? Do I not reinvest earnings and instead have those earnings moved to my money market account? Do I continue to reinvest earnings and then simply rebalance annually per our chosen asset allocation plan? This is probably a pretty basic question, but moving away from the accumulation only phase of investing is very foreign to me…….and a little intimidating.

My sincere thanks to any fellow Bogleheads who take their time to review my situation and offer advice!! It is so truly kind!!

User avatar
alec
Posts: 3054
Joined: Fri Mar 02, 2007 2:15 pm

Re: Portfolio Review & Recent Inheritance & FIRE?

Post by alec » Tue Jan 14, 2020 8:49 pm

I'll offer some quick comments, but overall looks pretty good to me.
OneSlimJim wrote:
Tue Jan 14, 2020 1:26 pm

Current portfolio: $3.3M (including $1.4M recent inheritance) (does not include $180,000 home or $150,000 529 plan for adult child)
Annual Expenses: $60,000
so, that's about a 1.8% withdraw rate, or even lower with your spouses income. I think it's doable.

Questions:

1. My mental and physical health have become more of a concern to me. I have only been working three days per week for the last two years and I still left my profession recently due to increasing stress. I’m wondering if I am in a financial position to look for employment (or volunteering) that is more personally rewarding than financially rewarding?
I think you can, and you probably already know that.
2. Asset allocation. Ideally, I think I would like to have our portfolio provide enough income to allow me to “retire” from my career in the healthcare field. My wife and I thought about a 50/50 stock/bond allocation after putting about five years of expenses in CDs and money market. I guess this works out to be 45% stock / 45% bond / 10% MM & CDs for expenses. Does this sound reasonable? We do not wish to take on more risk than necessary. My wife and I would rather be more protective of what we have than to invest for significant growth.
If you're comfortable with 45/45/10, then seems reasonable to me, though 10% for expenses is $330,000 seems a lot to me. But you can certainly use CDs as some on here, like Kevin M, have advocated in place of some bonds.
3. Since I received a step up in cost basis from the inherited Schwab account, I believe I can transfer that account to Vanguard, liquidate the current investments (numerous funds from parent’s advisor), and invest in the same Vanguard index funds that I currently own with minimal tax implications. The three funds that I would like to continue to use are Vanguard Total Stock Market Index Fund (VTSAX), Vanguard FTSE All-World ex-US Index Fund (VFWAX), and Vanguard Total Bond Market Index Fund (VBTLX). I’d like to know, how would my fellow Bogleheads recommend I allocate between and within my different accounts? Taxable, IRA, Roth, and inherited IRA and Roth.
I'd probably put the stocks in taxable and bonds in the IRAs as much as possible.
4. The accumulation phase of my investment career has been pretty straight forward……reinvest earnings and contribute new money. If I am now going to transition to use the portfolio for living expenses, how does that look? Do I not reinvest earnings and instead have those earnings moved to my money market account? Do I continue to reinvest earnings and then simply rebalance annually per our chosen asset allocation plan? This is probably a pretty basic question, but moving away from the accumulation only phase of investing is very foreign to me…….and a little intimidating.
I think the general recommendation is not to auto reinvest dividends/coupons from funds back into the funds in the taxable account. Have them put into your mm account, then decide how much to spend and how much to reinvest at the end of the year.

-Alec
"It is difficult to get a man to understand something, when his salary depends upon his not understanding it!" - Upton Sinclair

Jablean
Posts: 460
Joined: Sat Jun 02, 2018 2:38 pm

Re: Portfolio Review & Recent Inheritance & FIRE?

Post by Jablean » Tue Jan 14, 2020 11:31 pm

Will you be required to RMDs from your inherited IRA and Roth? Did this happen prior to the Secure Act - ie 2019?

Topic Author
OneSlimJim
Posts: 8
Joined: Mon Jan 22, 2018 7:47 pm

Re: Portfolio Review & Recent Inheritance & FIRE?

Post by OneSlimJim » Wed Jan 15, 2020 10:10 am

alec wrote:
Tue Jan 14, 2020 8:49 pm
I'll offer some quick comments, but overall looks pretty good to me.
OneSlimJim wrote:
Tue Jan 14, 2020 1:26 pm

Current portfolio: $3.3M (including $1.4M recent inheritance) (does not include $180,000 home or $150,000 529 plan for adult child)
Annual Expenses: $60,000
so, that's about a 1.8% withdraw rate, or even lower with your spouses income. I think it's doable.

Questions:

1. My mental and physical health have become more of a concern to me. I have only been working three days per week for the last two years and I still left my profession recently due to increasing stress. I’m wondering if I am in a financial position to look for employment (or volunteering) that is more personally rewarding than financially rewarding?
I think you can, and you probably already know that.
The numbers tell me I should be OK but I feel like society tells me something different. I feel like society’s expectation is that since I’m 46 and have always been a healthcare professional, I should continue to be a healthcare professional until I reach the “normal” retirement age. When most of the people I associate with in daily life (neighbors, friends, acquaintances, etc) learn that I quit my job, they look at me like I’m CRAZY or just plain lazy. No one knows how much of a savings my wife and I have and we certainly give no indication of it. I have no one to discuss this financial/life situation with except my wife (I came from a very small family) so I guess I’m turning to strangers on the internet for advice. :wink: I think I just need some intelligent, knowledge people to agree with me that I’m OK and probably doing the right thing.
2. Asset allocation. Ideally, I think I would like to have our portfolio provide enough income to allow me to “retire” from my career in the healthcare field. My wife and I thought about a 50/50 stock/bond allocation after putting about five years of expenses in CDs and money market. I guess this works out to be 45% stock / 45% bond / 10% MM & CDs for expenses. Does this sound reasonable? We do not wish to take on more risk than necessary. My wife and I would rather be more protective of what we have than to invest for significant growth.
If you're comfortable with 45/45/10, then seems reasonable to me, though 10% for expenses is $330,000 seems a lot to me. But you can certainly use CDs as some on here, like Kevin M, have advocated in place of some bonds.
My wife and I just felt like having five years of expenses ($60,000 X 5) in MM and CDs would allow us to feel better about not having to make withdrawals during a severe and extended market downturn. This may be overly conservative but we remember the feeling of 2008. We weathered that storm just fine but our portfolio is currently much larger than it was in 2008.
3. Since I received a step up in cost basis from the inherited Schwab account, I believe I can transfer that account to Vanguard, liquidate the current investments (numerous funds from parent’s advisor), and invest in the same Vanguard index funds that I currently own with minimal tax implications. The three funds that I would like to continue to use are Vanguard Total Stock Market Index Fund (VTSAX), Vanguard FTSE All-World ex-US Index Fund (VFWAX), and Vanguard Total Bond Market Index Fund (VBTLX). I’d like to know, how would my fellow Bogleheads recommend I allocate between and within my different accounts? Taxable, IRA, Roth, and inherited IRA and Roth.
I'd probably put the stocks in taxable and bonds in the IRAs as much as possible.
That’s my understating as well but sometimes I read that at my age (46), I should have stocks in Roth due to their growth potential. Which makes me wonder if I do bonds in IRA, stocks in Roth and taxable is split to make my asset allocation correct. How about the allocation within the inherited IRAs as I will have to be taking RMDs? Do I do a mini version of my overall asset allocation in those of 45/45/10?
4. The accumulation phase of my investment career has been pretty straight forward……reinvest earnings and contribute new money. If I am now going to transition to use the portfolio for living expenses, how does that look? Do I not reinvest earnings and instead have those earnings moved to my money market account? Do I continue to reinvest earnings and then simply rebalance annually per our chosen asset allocation plan? This is probably a pretty basic question, but moving away from the accumulation only phase of investing is very foreign to me…….and a little intimidating.
I think the general recommendation is not to auto reinvest dividends/coupons from funds back into the funds in the taxable account. Have them put into your mm account, then decide how much to spend and how much to reinvest at the end of the year.

-Alec
Thank you for the feedback, Alec. I sincerely appreciate it.
Last edited by OneSlimJim on Wed Jan 15, 2020 10:17 am, edited 1 time in total.

Topic Author
OneSlimJim
Posts: 8
Joined: Mon Jan 22, 2018 7:47 pm

Re: Portfolio Review & Recent Inheritance & FIRE?

Post by OneSlimJim » Wed Jan 15, 2020 10:12 am

Jablean wrote:
Tue Jan 14, 2020 11:31 pm
Will you be required to RMDs from your inherited IRA and Roth? Did this happen prior to the Secure Act - ie 2019?
My last parent’s passing did occur in 2019. It is my understating that I do have to take RMDs but it will be over my lifetime and not the new 10 year window.

Thank you for the response, Jablean.

Jack FFR1846
Posts: 10814
Joined: Tue Dec 31, 2013 7:05 am
Location: 26 miles, 385 yards west of Copley Square

Re: Portfolio Review & Recent Inheritance & FIRE?

Post by Jack FFR1846 » Wed Jan 15, 2020 10:22 am

Your mental health should be your first concern. The money is not a concern. Moving out of Schwab is a big "don't care"....or should be. Between Vanguard, Fidelity, Schwab and even TDAmeritrade and eTrade, there's a hair's difference. Plus, you could simply hold the ETF versions of the Vanguard funds at Schwab. Zero cost. I hold all my Vanguard funds at TDAmeritrade.

Find something you'd like to do. What would you like to do? Work at a bike shop? Drive a student van? Deliver pizzas? Work at REI? (these are things I'd like to do....fill in your own blanks) Also, are you on the MrMoneyMustache forum? If not, go there and look around. personally, I think Pete has gone off the deep end on his blog, but the forum is great and has a lot of supportive information and ideas for people who have gotten off the treadmill. If people around you question what you're doing for work, "I'm working from a home office" is perfectly acceptable as an answer. I'm not out of my job yet, but I tend to think spinning a story would be more fun.
Bogle: Smart Beta is stupid

jvini
Posts: 119
Joined: Tue Apr 06, 2010 11:55 am

Re: Portfolio Review & Recent Inheritance & FIRE?

Post by jvini » Wed Jan 15, 2020 10:53 am

Financially, you're in fine shape to do what you want. Mentally, not so much. I would take some time to center yourself and think about why you care what people might say about an early retirement. Your friends and family should be thrilled for you and who cares what others think. I actually think people will be envious but won't think any less of you.

Feel thankful you can do it and make the most of it. A stressed out 60 year old retired version of you in poor physical and mental health does no one any good. A happy 47 year old version is better for everyone, including yourself! I'd rather be poor and happy than rich and miserable. You can be rich and happy for hopefully a long time. That's incredible. Again, be grateful and make the most of it!

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alec
Posts: 3054
Joined: Fri Mar 02, 2007 2:15 pm

Re: Portfolio Review & Recent Inheritance & FIRE?

Post by alec » Wed Jan 15, 2020 7:24 pm

OneSlimJim wrote:
Wed Jan 15, 2020 10:10 am

That’s my understating as well but sometimes I read that at my age (46), I should have stocks in Roth due to their growth potential. Which makes me wonder if I do bonds in IRA, stocks in Roth and taxable is split to make my asset allocation correct.
I'm not an expert on the whole stocks in Roth, but why not. You can always decide after a year or two that, given your personal tax situation, you'd rather than the bonds in the Roths and switch. You're going to have to put bonds in taxable account anyway (it's 67% of portfolio).
How about the allocation within the inherited IRAs as I will have to be taking RMDs? Do I do a mini version of my overall asset allocation in those of 45/45/10?
No, I think you'd want to put all bonds in the non-Roth IRAs and non-Roth inherited IRAs. When you take the RMDs, you can just reinvest it into bonds in taxable.

-Alec
"It is difficult to get a man to understand something, when his salary depends upon his not understanding it!" - Upton Sinclair

retired@50
Posts: 1053
Joined: Tue Oct 01, 2019 2:36 pm

Re: Portfolio Review & Recent Inheritance & FIRE?

Post by retired@50 » Wed Jan 15, 2020 7:52 pm

OneSlimJim wrote:
Wed Jan 15, 2020 10:10 am

The numbers tell me I should be OK but I feel like society tells me something different. I feel like society’s expectation is that since I’m 46 and have always been a healthcare professional, I should continue to be a healthcare professional until I reach the “normal” retirement age. When most of the people I associate with in daily life (neighbors, friends, acquaintances, etc) learn that I quit my job, they look at me like I’m CRAZY or just plain lazy.
I retired at 50. Society will get over it, trust me. So will anyone who actually cares about you.

Regards,
Boggle - a game from Parker Brothers. Bogle - investor, founder of Vanguard.

Jablean
Posts: 460
Joined: Sat Jun 02, 2018 2:38 pm

Re: Portfolio Review & Recent Inheritance & FIRE?

Post by Jablean » Wed Jan 15, 2020 10:23 pm

OneSlimJim wrote:
Wed Jan 15, 2020 10:12 am
Jablean wrote:
Tue Jan 14, 2020 11:31 pm
Will you be required to RMDs from your inherited IRA and Roth? Did this happen prior to the Secure Act - ie 2019?
My last parent’s passing did occur in 2019. It is my understating that I do have to take RMDs but it will be over my lifetime and not the new 10 year window.

Thank you for the response, Jablean.
I'm sorry for your loss. My mom passed suddenly two years ago and while not the nest egg you received I really had to step up my understanding of inherited accounts and what to do with more taxable. I had to move hers out of an adviser too and it took most of a year to get everything over to Fidelity with cashing annuities and changing custodian on a UTMA for my son.

You are in great shape, based on your housing costs you are in a lower cost area which makes some of your decisions easy. I would get your taxable moved as soon as reasonable so you can get your step up value and placed in the funds you want soonish. But remember Schwab is fine too if you want to keep it there and just simplify. I had to take immediate RMDs from my inherited Roth as my mother was already at that age. For me our income puts us at the ACA cliff so I don't want my inherited IRA to grow too much as I have to count the RMDs as income so I took the advice here and bought bonds for the first time in my life for that account. But of course the Roth can grow as much as it wants. I still have to take RMDs but they don't count on my MAGI. Just make sure you know the rules for your situation.

As far as jobs go they can kill ya. As the DW I was also very thankful when my DH lost one of his jobs. It made us both much happier. Find something that makes you happy even if it's making bird houses and cat perches. Keep up with networking with both old colleagues and new connections. Keep up on LinkedIn or other platforms where you find out what other people are interested in and keep your mind sharp. Everyone I know who retired is busier than they were when working so find ways to relax too. Enjoy!

lazyday
Posts: 3759
Joined: Wed Mar 14, 2007 10:27 pm

Re: Portfolio Review & Recent Inheritance & FIRE?

Post by lazyday » Thu Jan 16, 2020 9:03 am

OneSlimJim wrote:
Tue Jan 14, 2020 1:26 pm
We do not wish to take on more risk than necessary. My wife and I would rather be more protective of what we have than to invest for significant growth.
One possibility is to use a “Liability Matching Portfolio” LMP to guarantee your spending needs.

For those retiring at 65, that could mean buying a 30 year ladder of TIPS. Using a spreadsheet, they could figure how large each TIPS must be so that each year, interest and one maturing TIPS is enough to meet their spending target. Once purchased at age 65, ideally no more buying or selling would be needed.

The rest of the portfolio can be in stocks, and could be used for luxuries or to pass on to beneficiaries after death. This is called the “Risk Portfolio” RP.

Many people don’t have a large enough portfolio to do this, since the LMP takes a lot of money. It can be easier if the LMP only supports a barebones, minimally acceptable lifestyle, and hopefully the RP will support more spending. Pensions and social security can also make it easier, since the LMP should only support spending above that already provided for. Some also might consider half the dividend yield from the RP to be safe enough to support LMP spending.

Early retirement requires a larger portfolio, but yours might be large enough to use an LMP with the help of social security and pensions.

I don’t know the best way to adapt an LMP for a retirement longer than 30 years. Perhaps you would put another 20 years worth of spending in the top rung of the ladder (a 30 year TIPS) and every 5 years you could sell the extra to buy another 5 years of TIPS with the excess in the last year? If interested, you could make a new thread asking about this, or revive an old LMP thread.

Here’s one source on the LMP concept: https://www.amazon.com/Ages-Investor-Cr ... B008CM2T2A Only a short part of this short book covers LMP, but it’s only $4.50 and most of that money goes to the author. You can use Prime digital credits to buy.

That book also discusses life annuities, which might be an option after 30 or 35 years of retirement. When the last TIPS matures, use it to buy an SPIA. Hopefully one that has inflation adjustments.

Topic Author
OneSlimJim
Posts: 8
Joined: Mon Jan 22, 2018 7:47 pm

Re: Portfolio Review & Recent Inheritance & FIRE?

Post by OneSlimJim » Thu Jan 16, 2020 9:17 am

Jack FFR1846 wrote:
Wed Jan 15, 2020 10:22 am
Your mental health should be your first concern. The money is not a concern. Moving out of Schwab is a big "don't care"....or should be. Between Vanguard, Fidelity, Schwab and even TDAmeritrade and eTrade, there's a hair's difference. Plus, you could simply hold the ETF versions of the Vanguard funds at Schwab. Zero cost. I hold all my Vanguard funds at TDAmeritrade.

Find something you'd like to do. What would you like to do? Work at a bike shop? Drive a student van? Deliver pizzas? Work at REI? (these are things I'd like to do....fill in your own blanks) Also, are you on the MrMoneyMustache forum? If not, go there and look around. personally, I think Pete has gone off the deep end on his blog, but the forum is great and has a lot of supportive information and ideas for people who have gotten off the treadmill. If people around you question what you're doing for work, "I'm working from a home office" is perfectly acceptable as an answer. I'm not out of my job yet, but I tend to think spinning a story would be more fun.
Jack FFR1846,

Thank you for taking the time to comment. All good points and advice. I was not familiar with Mr Money Mustache, but after your post, I am now. :wink: Very interesting. Thank you for that suggestion.

Topic Author
OneSlimJim
Posts: 8
Joined: Mon Jan 22, 2018 7:47 pm

Re: Portfolio Review & Recent Inheritance & FIRE?

Post by OneSlimJim » Thu Jan 16, 2020 9:25 am

jvini wrote:
Wed Jan 15, 2020 10:53 am
Financially, you're in fine shape to do what you want. Mentally, not so much. I would take some time to center yourself and think about why you care what people might say about an early retirement. Your friends and family should be thrilled for you and who cares what others think. I actually think people will be envious but won't think any less of you.

Feel thankful you can do it and make the most of it. A stressed out 60 year old retired version of you in poor physical and mental health does no one any good. A happy 47 year old version is better for everyone, including yourself! I'd rather be poor and happy than rich and miserable. You can be rich and happy for hopefully a long time. That's incredible. Again, be grateful and make the most of it!
jvini,

My wife read your post and said to me, "This person nailed it!! I've been telling you the exact same thing for a long time." You both couldn't be any more correct. Why do I care what others may say/think? I guess I've suffered from that affliction most of my life. :-( And yes......I should be grateful and make the most of it! Thank you for taking the time to comment. I sincerely appreciate it.

Topic Author
OneSlimJim
Posts: 8
Joined: Mon Jan 22, 2018 7:47 pm

Re: Portfolio Review & Recent Inheritance & FIRE?

Post by OneSlimJim » Thu Jan 16, 2020 9:30 am

retired@50 wrote:
Wed Jan 15, 2020 7:52 pm

I retired at 50. Society will get over it, trust me. So will anyone who actually cares about you.

Regards,
Retired@50,

When someone who retired at 50 tells me to trust them.....I should probably do it. :wink: Thank you for taking the time to comment.

lostdog
Posts: 2120
Joined: Thu Feb 04, 2016 2:15 pm

Re: Portfolio Review & Recent Inheritance & FIRE?

Post by lostdog » Thu Jan 16, 2020 9:36 am

Semi-retired and currently 42. Yes, people will judge you but it doesn't matter and they'll get over it quickly.

Once you master the art of not caring what other people think, it will set you free.

Since you have 100% support from your wife and have health insurance, you can find a fun career. You're officially free from the rat race.

Congratulations!
VTWAX and chill.

Topic Author
OneSlimJim
Posts: 8
Joined: Mon Jan 22, 2018 7:47 pm

Re: Portfolio Review & Recent Inheritance & FIRE?

Post by OneSlimJim » Thu Jan 16, 2020 9:50 am

lazyday wrote:
Thu Jan 16, 2020 9:03 am

One possibility is to use a “Liability Matching Portfolio” LMP to guarantee your spending needs.
lazyday,

I'm not really familiar with the LMP, but I now know what I'm going to research today. :wink: Sounds interesting. Thank you for taking the time to comment and offer advice. I appreciate it.

Topic Author
OneSlimJim
Posts: 8
Joined: Mon Jan 22, 2018 7:47 pm

Re: Portfolio Review & Recent Inheritance & FIRE?

Post by OneSlimJim » Thu Jan 16, 2020 10:02 am

lostdog wrote:
Thu Jan 16, 2020 9:36 am
Semi-retired and currently 42. Yes, people will judge you but it doesn't matter and they'll get over it quickly.

Once you master the art of not caring what other people think, it will set you free.

Since you have 100% support from your wife and have health insurance, you can find a fun career. You're officially free from the rat race.

Congratulations!
lostdog,

Thank you for taking the time to comment and the advice. I do need to master the art of not caring what other people think.....YES! I need to dig down and find out where that lifelong affliction came from. Maybe find a book on the topic. And yes.....I'm absolutely grateful to have the 100% support of my wife. I'm fortunate in more ways than one. Thanks again!!

retired@50
Posts: 1053
Joined: Tue Oct 01, 2019 2:36 pm

Re: Portfolio Review & Recent Inheritance & FIRE?

Post by retired@50 » Thu Jan 16, 2020 10:14 am

OneSlimJim wrote:
Thu Jan 16, 2020 9:50 am
lazyday wrote:
Thu Jan 16, 2020 9:03 am

One possibility is to use a “Liability Matching Portfolio” LMP to guarantee your spending needs.
lazyday,

I'm not really familiar with the LMP, but I now know what I'm going to research today. :wink: Sounds interesting. Thank you for taking the time to comment and offer advice. I appreciate it.
William Bernstein writes about the LMP in some of his books. Happy reading.

Regards,
Boggle - a game from Parker Brothers. Bogle - investor, founder of Vanguard.

Wanderingwheelz
Posts: 127
Joined: Mon Mar 04, 2019 9:52 am

Re: Portfolio Review & Recent Inheritance & FIRE?

Post by Wanderingwheelz » Thu Jan 16, 2020 10:29 am

OneSlimJim wrote:
Thu Jan 16, 2020 10:02 am
lostdog wrote:
Thu Jan 16, 2020 9:36 am
Semi-retired and currently 42. Yes, people will judge you but it doesn't matter and they'll get over it quickly.

Once you master the art of not caring what other people think, it will set you free.

Since you have 100% support from your wife and have health insurance, you can find a fun career. You're officially free from the rat race.

Congratulations!
lostdog,

Thank you for taking the time to comment and the advice. I do need to master the art of not caring what other people think.....YES! I need to dig down and find out where that lifelong affliction came from. Maybe find a book on the topic. And yes.....I'm absolutely grateful to have the 100% support of my wife. I'm fortunate in more ways than one. Thanks again!!
As a 48 year old who recently cut back on his work load (self employed, hired another full-timer) I take issue with the notion that not caring what others think is substantially important. What others think can actually be of value as long as you’re mindful of their points of view.

Inheriting a reasonably large sum of money is a big reason (perhaps, main reason) why you’ve been able to quit your career, and it your acquaintances knew that they’d judge you MORE, not less.

Someday I’ll inherit an amount equal to or larger that what you received, but no decision I make in life takes that into consideration because I didn’t earn it. I figure I’ve amassed plenty to get by without having to pay any attention to it. In fact, if the stock and bond markets close today where they are now I’ll have crossed another $1MM threshold at Vanguard. None of my friends or acquaintances have any idea, which is the way it should be.

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