Portfolio Advice

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redfishbluefish
Posts: 6
Joined: Thu Oct 15, 2020 9:38 am

Portfolio Advice

Post by redfishbluefish »

Hi Bogleheads!

A couple of years ago I got super into BH and FIRE as a concept and did a ton of reading and came up with an AA that looked roughly like this:
  • 50% US stocks, 20% of which was small cap
  • 25% international stocks
  • 10% REITs
  • 10-15% US bonds
  • rest cash
While I did the right thing (TM) during the COVID drop and stayed the course, and even rebalanced my bonds/cash into stocks, I realized that I am not really comfortable multiples of my gross annual income disappearing into thin air. All that to say, I "made" it all back, but I did not enjoy that ride. I know it will come with the game as my balances increase (currently $1.1MM), and also that there's some psychological thing around not wanting to drop below $1MM that will fade as I (hopefully) put that figure in my rear view mirror.

I am also feeling real uncertainty about whether/what state the world will be in at the age at which I can withdraw from 401ks/IRAs/etc, which is 37 years from now. It makes me wonder if the super long term view, where high volatility has historically worked itself out, is really a view I hold and want to plan for.

As a result, I started the process of dropping my stock/bond split, but before I go further, I'm looking for advice.

Emergency funds: 25k in I-bonds. I do count this as part of my AA since my portfolio balance is fairly high. This is easily 8-9 months expenses.

Debt: Zilch.

Tax Filing Status: Single

Tax Rate: 32 federal, 9.3 state. I have been as high as 37/11.3, I think 35 is probably the max I'm likely to see in the next few years given my career choices. Regardless, I think I also need to assume the 3.8% medicare surtax.

State of Residence: CA

Age: 28

Desired Asset allocation: This is one of the things I want help with.

Current assets
Portfolio size: $1.1MM

Taxable
0.8% cash
1.4% cash earning 3%/year
2.3% I bonds
21.7% FTSE All-World ex-US VFWAX (.11) (TLH-ed out of VTIAX, sitting on short term gains currently)
26.4% Vanguard Total Stock Market Index Admiral Shares VTSAX (.04)
6.6% Vanguard Small-Cap Index Fund Admiral Shares VSMAX (.05)
15.6% Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares (VWIUX) (.09)
5.6% Vanguard Total International Bond Index Fund Admiral Shares (VTABX) (.11)

401k (active)
2% Vanguard Total Bond Market Index Fund Admiral Shares (.05)
No match

401k #2 (previous employer)
7.2% Real Estate Index Fund VGSLX (.12)
6.5% Vanguard Total Bond Market Index Fund Admiral Shares(.05)

Roth IRA at Vanguard
1.7% Vanguard Total Bond Market Index Fund Admiral Shares(0.05)
(This was previously VTSAX, but switched it just for now to help rebalance w/o cap gains. I know I should convert this back to VTSAX down the line)

HSA at Fidelity (previous employer)
2.2% S&P 500 Index FXAIX (.015)

That amounts to about:
  • 34% US stocks
  • 22% international stocks
  • 9% REITs
  • 29% US bonds
  • 6% international bonds
  • cash
_______________________________________________________________

Contributions

New annual Contributions
$19500 401k
$50000-80000/year taxable

Available funds

Funds available in 401(k)
Most of the core Vanguard funds

Funds available in 401(k) #2
Vanguard institutional target retirement funds
Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX)
S&P 500 VFIAX
Vanguard Real Estate Index Fund Admiral Shares (VGSLX)
TIPS VAIPX
non-vanguard, higher ER

Sitting on about $180k cap gains, and I have another $30k in realized losses to play with for rebalancing if needed.

Other observations: personal capital is pretty and great, but it's made me want to "converge" to their suggestions. And has made me check and fiddle more than I should. I think that's just my nature anyway. Probably has cost me a few thousand bucks, although unclear if I made that back with TLH.

Before I go further, I'm looking for advice and suggestions.

Questions:
1. What do you think is a good AA for me? I would do 60/40, but when I think about the magnitude of drops, 40/60 seems more my speed. But then I would lose my growth "engine". I'd like to be able to LeanFIRE if I wanted, or at the very least be able to take a big pay cut to do something different than my current job. All that to say (plus my preamble where I realized I'm less risk tolerant than I would have thought a few years ago), I think my horizon is some mix of retirement + lifestyle flexibility in 5-10 years (change jobs or have/take care of kids).

2. Should I stop sweating about tax efficient asset allocation? Given the ratio of tax-advantage :: taxable space, it seems like a fools errand. Even at 85/15 I was starting to run out of space, let alone something closer to 60/40.

3. As a corollary, should I get out of VWIUX (Intermediate Municipal tax exempt)? An additional advantage of it is it keeps my taxable / tax advantaged funds different, which allows me to rebalance/TLH without too much brain power.

4. Should I stop thinking about TLH, and dump my funds into VSCGX (lifestrategy conservative)/VSMGX(lifestrategy moderate) and call it a day? I do like the fact that currently I can a) TLH and b) change my AA as my goals change without necessarily realizing gains, but maybe it causes me to fiddle too much.

5. Things I should get out of/into, because complexity:
  • REITS? https://jlcollinsnh.com/stock-series/ has made a case against it. I was planning on drawing it down to be 10% of my stock allocation no matter what, but is it just adding complexity that's not worth it?
  • Gold (ETFs) for wealth preservation? Portfolio charts and backtesting make that look like a great idea, but that's backtesting....
  • Small cap tilt
6. Would my medium term goals benefit by having more I bonds? Starting an EE bond ladder? Both?

7. As an entirely unrelated note, how would I suggest a change to the template to remove "his" and "hers" to be replaced with "yours" and "theirs"? I'm not offended by it, but it could make the forum more inclusive.
Last edited by redfishbluefish on Thu Oct 15, 2020 4:30 pm, edited 2 times in total.
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Misenplace
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Re: Portfolio Advice

Post by Misenplace »

Hi redfishbluefish, welcome to the forum!

Congratulations on doing so well saving, and taking control of your finances, at such a young age. You are definitely well ahead of the pack.
Would you mind editing your post to provide the name of the mutual funds? Most of us do not have the fund tickers memorized and it would be easier to comment.

Some general comments: It's good that you realized that you are just not comfortable with your asset allocation, given your early retirement plans. 85% equities is usually fine at your age, but if you are uncomfortable, perhaps 70%? Then see how you feel there for a few years. Going from 85% to 40% equities seems a bit extreme for someone so young.

Personally, I simplified out of REITs a few years ago. Total market has enough REITs in it, and it takes up limited tax advantaged space. I am not a gold fan, but understand if others are. Once I got my portfolio really simplified, TLH once or twice a year was the only tinkering/fun I had left to do.
Consider rolling your old 401K into your current 401K, if you can. You have good choices (in both) but why have both. Simplify.

Finally, that is an excellent suggestion regarding gender nomenclature on the template. I'll take it up with management. If you have any other suggestions, feel free to PM any moderator or administrator.

Kind regards,
Misenplace
tashnewbie
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Joined: Thu Apr 23, 2020 12:44 pm

Re: Portfolio Advice

Post by tashnewbie »

One small comment: have you considered doing backdoor Roth IRA conversions each year (current max for your age is $6k)? I think it'd be worth utilizing this extra tax-advantaged space. Check the wiki for more information.
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ruralavalon
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Location: Illinois

Re: Portfolio Advice

Post by ruralavalon »

Welcome to the forum :) .

redfishbluefish wrote: Thu Oct 15, 2020 10:30 amWhile I did the right thing (TM) during the COVID drop and stayed the course, and even rebalanced my bonds/cash into stocks, I realized that I am not really comfortable multiples of my gross annual income disappearing into thin air. All that to say, I "made" it all back, but I did not enjoy that ride. I know it will come with the game as my balances increase (currently $1.1MM), and also that there's some psychological thing around not wanting to drop below $1MM that will fade as I (hopefully) put that figure in my rear view mirror.

I am also feeling real uncertainty about whether/what state the world will be in at the age at which I can withdraw from 401ks/IRAs/etc, which is 37 years from now. It makes me wonder if the super long term view, where high volatility has historically worked itself out, is really a view I hold and want to plan for.
. . . . .
Questions:
1. What do you think is a good AA for me? I would do 60/40, but when I think about the magnitude of drops, 40/60 seems more my speed. But then I would lose my growth "engine". I'd like to be able to LeanFIRE if I wanted, or at the very least be able to take a big pay cut to do something different than my current job. All that to say (plus my preamble where I realized I'm less risk tolerant than I would have thought a few years ago), I think my horizon is some mix of retirement + lifestyle flexibility in 5-10 years (change jobs or have/take care of kids).
At age 32 I would suggest for you the classic 60/40 equity/fixed income allocation. Peter Bernstein, Bloomberg Personal Finance (2004),"The 60/40 Solution", archived pdf. This is much safer than your old 85/15 or 90/10 asset allocation.

REITs are stocks, and are part of the equity allocation. Cash, Stable Value Funds, money market funds, CDs, savings accounts, bonds, bond funds, TIPS, Ibonds, EEbonds, etc. are all part of the fixed income allocation.

Please get used to the ideas that the world is a dangerous place, the future in unknown, and all investing is risky. That just cannot be avoided by using a different asset allocation. Every kind of fixed income investment carries some type of risk.


redfishbluefish wrote: Thu Oct 15, 2020 10:30 amTax Rate: 32 federal, 9.3 state. . .
. . . . .
2. Should I stop sweating about tax efficient asset allocation? Given the ratio of tax-advantage :: taxable space, it seems like a fools errand. Even at 85/15 I was starting to run out of space, let alone something closer to 60/40.
In my opinion in your tax bracket you should definitely be concerned about tax-efficient fund placement.

redfishbluefish wrote: Thu Oct 15, 2020 10:30 am3. As a corollary, should I get out of VWIUX? An additional advantage of it is it keeps my taxable / tax advantaged funds different, which allows me to rebalance/TLH without too much brain power.
I suggest staying with Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares (VWIUX).

I suggest dropping Vanguard Total International Bond Index Fund Admiral Shares (VTABX). "[T]here are two main types of fixed income risks that we might want to diversify: credit and interest rate risk."

Credit risk."[T]he U.S. capital markets are so broad and deep that investors can easily obtain broad diversification without having to add international assets. While international fixed income investing has intuitive appeal, at least from the perspective of credit risk, there's no need to look abroad."

interest rate risk, U.S. dollar hedged. "If the instrument is a U.S. dollar bond, its price movement (other than a movement caused by a change in credit risk) will reflect the movement in U.S. interest rates. Thus, no diversification benefit, in terms of interest rate risk, is provided." Larry Swedroe, Seeking Alpha (05/08/2014), "Should you include international bonds in your portfolio? - part 1", link.


redfishbluefish wrote: Thu Oct 15, 2020 10:30 am4. Should I stop thinking about TLH, and dump my funds into VSCGX/VSMGX and call it a day? I do like the fact that currently I can a) TLH and b) change my AA as my goals change without necessarily realizing gains, but maybe it causes me to fiddle too much.
No, don't switch to LifeStrategy funds.

You can stop worrying about tax loss harvesting, it is not necessary to good investing. But do continue to use very tax-efficient stock index funds such as Vanguard Total Stock Market Index Fund (VTSAX), and Vanguard Total International Stock Index Fund (VTIAX) or Vanguard FTSE All-World ex-US Index Fund Admiral Shares (VFWAX).

redfishbluefish wrote: Thu Oct 15, 2020 10:30 am5. Things I should get out of/into, because complexity:
REITS? https://jlcollinsnh.com/stock-series/ has made a case against it. I was planning on drawing it down to be 10% of my stock allocation no matter what, but is it just adding complexity that's not worth it?
Gold (ETFs) for wealth preservation? Portfolio charts and backtesting make that look like a great idea, but that's backtesting....
Small cap tilt
I suggest dropping Vanguard Total International Bond Index Fund Admiral Shares (VTABX).

It's up to you, you could drop both REIT and small-cap value to simplify. Neither is essential. For what it's worth I have dropped REIT to simplify, and an considering dropping small-cap value.

I do not suggest adding a gold ETF.

As suggested by Misenplace you could consider rolling your old 401K into your current 401K, if you can. You have good choices (in both) but why have both. Simplify.


redfishbluefish wrote: Thu Oct 15, 2020 10:30 am6. Would my medium term goals benefit by having more I bonds? Starting an EE bond ladder? Both?
I have no opinion.

Wiki article "I savings bonds".

Wiki article, "EE savings bonds".


redfishbluefish wrote: Thu Oct 15, 2020 10:30 am7. As an entirely unrelated note, how would I suggest a change to the template to remove "his" and "hers" to be replaced with "yours" and "theirs"? I'm not offended by it, but it could make the forum more inclusive.
You could add this request to the forum discussion: "Suggestion for updating "Asking Portfolio Questions thread", link. This idea has been discussed before.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
Topic Author
redfishbluefish
Posts: 6
Joined: Thu Oct 15, 2020 9:38 am

Re: Portfolio Advice

Post by redfishbluefish »

Thanks BHs!
Misenplace wrote: Thu Oct 15, 2020 2:44 pm Consider rolling your old 401K into your current 401K, if you can. You have good choices (in both) but why have both. Simplify.
Current 401k = guideline, old = at least accessible through Vanguard. So I'd actually prefer to go the other way, eventually :)
ruralavalon wrote: Thu Oct 15, 2020 3:32 pm In my opinion in your tax bracket you should definitely be concerned about tax-efficient fund placement.
Is the solution to the bond problem then to just invest in Munis in taxable? My taxable space is going to continue to massively outstrip my tax-advantaged space, which means I'd ultimately end up with a super heavy Muni tilt. In the short term, I can "fix" this issue by getting out of REITs (buys me another ~7-8% headroom), but that won't work forever.

If I recall there's also discussion in this form and the Wiki that if your taxable space has all the fast-growing assets (i.e. stocks) then you can end up paying more taxes b/c the dividends will far exceed those from bonds, so for high ratios of taxable :: advantaged, the advice breaks down. So am I actually coming out ahead here by following the advice?
tashnewbie wrote: Thu Oct 15, 2020 3:14 pm One small comment: have you considered doing backdoor Roth IRA conversions each year (current max for your age is $6k)? I think it'd be worth utilizing this extra tax-advantaged space. Check the wiki for more information.
I had forgotten about this, and didn't realize I could legally fund a vanilla IRA (post-tax) if I'm also contributing to a 401k. Thanks for this suggestion!
(I confirmed with my plan sponsor I cannot do a mega backdoor Roth).
ruralavalon wrote: Thu Oct 15, 2020 3:32 pm I suggest dropping Vanguard Total International Bond Index Fund Admiral Shares (VTABX). "[T]here are two main types of fixed income risks that we might want to diversify: credit and interest rate risk."
Thanks for this! Thankfully this is a fresh purchase so I'll be able to convert into Intermediate Munis with ease.



---

I will have more to respond to later, but thanks all for the advice so far!
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Misenplace
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Re: Portfolio Advice

Post by Misenplace »

redfishbluefish wrote: Thu Oct 15, 2020 4:39 pm
If I recall there's also discussion in this form and the Wiki that if your taxable space has all the fast-growing assets (i.e. stocks) then you can end up paying more taxes b/c the dividends will far exceed those from bonds, so for high ratios of taxable :: advantaged, the advice breaks down. So am I actually coming out ahead here by following the advice?
I'm not sure what discussion this is, but consider that if your dividends are qualified (and most of them from VG Total US Index funds are), then they are taxed at 15%, 18.8%, or 23.8% depending upon your total income (Federal).
However, the tax on taxable bond interest will be your marginal tax rate, which you have in the neighborhood of 32-35% (Federal).
Not sure how your state tax applies so no comment on that, but it appears that in your tax bracket, putting bonds and other stuff that kicks out regular interest is better in tax advantaged.
Chuck
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Re: Portfolio Advice

Post by Chuck »

redfishbluefish wrote: Thu Oct 15, 2020 10:30 am I realized that I am not really comfortable multiples of my gross annual income disappearing into thin air. All that to say, I "made" it all back, but I did not enjoy that ride. I know it will come with the game as my balances increase (currently $1.1MM), and also that there's some psychological thing around not wanting to drop below $1MM that will fade as I (hopefully) put that figure in my rear view mirror.
...
Age: 28
My opinion is worth as much as the next guy's, but at age 28, I think you just need to grow a stronger stomach. These things happen all the time, and it doesn't get better. As your balance goes up, so do the sizes of the spikes and the dips, in dollars. I'm just over 40, and in the "COVID dip" I saw my net worth drop by 6 times my annual income. My horizon is still 20 to 50 years, and I'm still earning. These things don't matter.
Topic Author
redfishbluefish
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Re: Portfolio Advice

Post by redfishbluefish »

Misenplace wrote: Thu Oct 15, 2020 4:51 pm
redfishbluefish wrote: Thu Oct 15, 2020 4:39 pm
If I recall there's also discussion in this form and the Wiki that if your taxable space has all the fast-growing assets (i.e. stocks) then you can end up paying more taxes b/c the dividends will far exceed those from bonds, so for high ratios of taxable :: advantaged, the advice breaks down. So am I actually coming out ahead here by following the advice?
I'm not sure what discussion this is, but consider that if your dividends are qualified (and most of them from VG Total US Index funds are), then they are taxed at 15%, 18.8%, or 23.8% depending upon your total income (Federal).
However, the tax on taxable bond interest will be your marginal tax rate, which you have in the neighborhood of 32-35% (Federal).
Not sure how your state tax applies so no comment on that, but it appears that in your tax bracket, putting bonds and other stuff that kicks out regular interest is better in tax advantaged.
Ahh forgot that most dividends are qualified. That changes the math. Thanks!
Chuck wrote: Thu Oct 15, 2020 5:06 pm My opinion is worth as much as the next guy's, but at age 28, I think you just need to grow a stronger stomach.
Indeed. I think first real dip in balances I've ever encountered since beginning my journey + the $1MM line is a big factor as well. In the mean time, until I have a stronger stomach, :sharebeer :sharebeer
Last edited by redfishbluefish on Fri Oct 16, 2020 10:44 am, edited 1 time in total.
desiderium
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Re: Portfolio Advice

Post by desiderium »

With your age, tax bracket and state tax situation, you should remain diligent about pursuing all relevant tax strategies, including maximizing TLH opportunities. The significance of each of these moves will vary over time, but opportunities arise sometimes. Given lowered expectations of portfolio returns, even small tax benefits can be a meaningful source of additional return over time.
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ruralavalon
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Re: Portfolio Advice

Post by ruralavalon »

For your munis in taxable consider adding some Vanguard California Intermediate-Term Tax-Exempt Fund Investor Shares (VCAIX) ER 0.17%.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
Topic Author
redfishbluefish
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Re: Portfolio Advice

Post by redfishbluefish »

ruralavalon wrote: Fri Oct 16, 2020 10:17 am For your munis in taxable consider adding some Vanguard California Intermediate-Term Tax-Exempt Fund Investor Shares (VCAIX) ER 0.17%.
Does that expose me to a lot more credit risk?

(also something something COVID something something market timing).
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ruralavalon
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Re: Portfolio Advice

Post by ruralavalon »

Have you decided what percentage of portfolio you want in bonds?
redfishbluefish wrote: Fri Oct 16, 2020 10:22 am
ruralavalon wrote: Fri Oct 16, 2020 10:17 am For your munis in taxable consider adding some Vanguard California Intermediate-Term Tax-Exempt Fund Investor Shares (VCAIX) ER 0.17%.
Does that expose me to a lot more credit risk?

(also something something COVID something something market timing).
That's not a substitute for Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares (VWIUX), I suggest Vanguard California Intermediate-Term Tax-Exempt Fund Investor Shares (VCAIX) in addition. Perhaps 50% of your higher muni bonds total in each.

All of your muni bonds in one state would be higher risk.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
Topic Author
redfishbluefish
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Re: Portfolio Advice

Post by redfishbluefish »

ruralavalon wrote: Fri Oct 16, 2020 10:26 am Have you decided what percentage of portfolio you want in bonds?
40%. My tax advantaged space is ~15% of my portfolio and dropping every year, mostly due to stock growth in taxable.

So that leaves about 25% (60% of my total bond allocation) of my portfolio in bonds that I have to place in taxable. Currently that's all VWIUX (intermediate munis) and VTABX (International bonds) (although I'm going to just get out of that for simplicity based on suggestions in this thread).
Outer Marker
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Re: Portfolio Advice

Post by Outer Marker »

I agree with ruralavalon that a classic 60/40 balanced portfolio would fit your needs. At your age, I would certainly not go lower than 50/50.

Study Vanguard's model portfolio allocation models carefully. 60/40 is a considerably much gentler ride than 90/10.
https://personal.vanguard.com/us/insigh ... llocations

I would get rid of the overweight to REIT and Small Caps, and simplify to a 3-funder with TSM, TISM, and TBM. Those additional slices add volatility (which you don't want) and have no conclusive impact on improving returns.

Finally, Bonds do not belong in your Roth. That is your most valuable tax-advantaged space. Fill it only with equities.
retiredjg
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Re: Portfolio Advice

Post by retiredjg »

redfishbluefish wrote: Thu Oct 15, 2020 10:30 am 1. What do you think is a good AA for me? I would do 60/40, but when I think about the magnitude of drops, 40/60 seems more my speed. But then I would lose my growth "engine". I'd like to be able to LeanFIRE if I wanted, or at the very least be able to take a big pay cut to do something different than my current job. All that to say (plus my preamble where I realized I'm less risk tolerant than I would have thought a few years ago), I think my horizon is some mix of retirement + lifestyle flexibility in 5-10 years (change jobs or have/take care of kids).
You are currently at 85/15 and uncomfortable but not going nuts. Suggest moving to 60/40 and if that is not enough, move to 50/50. Keep in mind that portfolio success is mostly a matter of how much one saves. You already have a lot and you are saving a lot. You do not need to rely on an aggressive portfolio to have enough money. Do not let your money make you uncomfortable. Find a place that is comfortable and ignore the rest.

2. Should I stop sweating about tax efficient asset allocation? Given the ratio of tax-advantage :: taxable space, it seems like a fools errand. Even at 85/15 I was starting to run out of space, let alone something closer to 60/40.
No. Well, you can stop sweating, but continue to be tax efficient. That would mean moving the international bond out of taxable.

3. As a corollary, should I get out of VWIUX (Intermediate Municipal tax exempt)? An additional advantage of it is it keeps my taxable / tax advantaged funds different, which allows me to rebalance/TLH without too much brain power.
You will have to have a significant amount of fixed income assets in your taxable account. There is no way around that. The Intermediate term muni you have is a good choice. I would hold some in one of the CA muni funds to reduce your state tax.

Grabiner suggests holding a long term CA muni and a short term national muni. This averages the risk to intermediate term but saves more in state taxes. I think this is a good idea - half and half of each, up to the limit of how much you want in muni bonds.

You may not want a huge allocation to munis so you might need to supplement with I Bonds and CDs. CDs are not terribly tax-efficient, but there's little you can do about that unless you are comfortable holding a larger allocation to the munis.

4. Should I stop thinking about TLH, and dump my funds into VSCGX (lifestrategy conservative)/VSMGX(lifestrategy moderate) and call it a day? I do like the fact that currently I can a) TLH and b) change my AA as my goals change without necessarily realizing gains, but maybe it causes me to fiddle too much.
Do not put a lifestrategy fund in taxable - very tax inefficient. If you can keep yourself from fiddling, what you have is fine. If not, you might consider Vanguard's Tax-managed Balanced Fund.

5. Things I should get out of/into, because complexity:
  • REITS? https://jlcollinsnh.com/stock-series/ has made a case against it. I was planning on drawing it down to be 10% of my stock allocation no matter what, but is it just adding complexity that's not worth it?
  • Gold (ETFs) for wealth preservation? Portfolio charts and backtesting make that look like a great idea, but that's backtesting....
  • Small cap tilt
If you get out of REIT, that gives you more room for broad bond fund choices in your tax-deferred accounts. GOLD and SC are going to to little to help - again, it is your savings rate that counts. These other little things are trivial details. Use them if you want, dump them if you want to streamline and be simpler.
6. Would my medium term goals benefit by having more I bonds? Starting an EE bond ladder? Both?
You need a lot of bonds in taxable and I Bonds are a good choice because they are tax-efficient (at least while working). Don't know enough about EE bonds to comment.
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Re: Portfolio Advice

Post by Outer Marker »

retiredjg wrote: Fri Oct 16, 2020 11:29 am If you get out of REIT, that gives you more room for broad bond fund choices in your tax-deferred accounts.
I would argue that the certainty of tax savings from more efficient placement of bonds outweighs any advantage that might be gained from REITS. Not to mention simplicity and ease of management.
backpacker61
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Re: Portfolio Advice

Post by backpacker61 »

redfishbluefish wrote: Thu Oct 15, 2020 7:59 pm
Chuck wrote: Thu Oct 15, 2020 5:06 pm My opinion is worth as much as the next guy's, but at age 28, I think you just need to grow a stronger stomach.
Indeed. I think first real dip in balances I've ever encountered since beginning my journey + the $1MM line is a big factor as well. In the mean time, until I have a stronger stomach, :sharebeer :sharebeer
Yes; my "initiation" was in 1987 on "Black Monday". Just "comes with the territory".

https://en.wikipedia.org/wiki/Black_Monday_(1987)
“Now shall I walk or shall I ride? | 'Ride,' Pleasure said; | 'Walk,' Joy replied.” | | ― W.H. Davies
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