Efficient Capital Allocation as of Feb 2020

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justsomeguy2018
Posts: 349
Joined: Wed Oct 03, 2018 8:11 pm

Efficient Capital Allocation as of Feb 2020

Post by justsomeguy2018 » Fri Feb 14, 2020 10:40 pm

Suggestions for best capital allocation after maxing out all retirement & HSA accounts? Assuming a $1,500+ positive monthly cash flow after maxing out all retirement,backdoor Roth, & HSA accounts and $160k in Emergency Fund @ blended ~2.5%.

Options:

Mortgage debt reduction at 3.5%
Some combination of Total Stock Market, Total Bond, International, REITs, Gold in Taxable account
"Cash" continued accumulation in MM/Savings @ 1.5% with option to deploy accumulated capital later at potentially more attractive asset valuations
529 Plan Investments
Real Estate
Venture Capital/Seed investments
High Risk investments (penny stocks, bitcoin, etc.)
Other

Edit: If relevant: Age 39, Investment Portfolio = ~$300k, Current AA ~60/15/25

bloom2708
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Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: Efficient Capital Allocation as of Feb 2020

Post by bloom2708 » Wed Feb 19, 2020 4:57 pm

One idea:

50% to mortgage payoff
50% to Total US Stock index (VTSAX) in taxable

I would steer clear of junk/high risk investments.

Any time you get an itch to buy some junk, buy more Total US index to satisfy the itch.

When taxable > mortgage balance, now you have some interesting options.
"People want confirmation, not advice" Unknown | "We are here to provoke thoughtfulness, not agree with you" Unknown | Four words: Whole food, plant based

Topic Author
justsomeguy2018
Posts: 349
Joined: Wed Oct 03, 2018 8:11 pm

Re: Efficient Capital Allocation as of Feb 2020

Post by justsomeguy2018 » Wed Feb 19, 2020 6:34 pm

bloom2708 wrote:
Wed Feb 19, 2020 4:57 pm
One idea:

50% to mortgage payoff
50% to Total US Stock index (VTSAX) in taxable

I would steer clear of junk/high risk investments.

Any time you get an itch to buy some junk, buy more Total US index to satisfy the itch.

When taxable > mortgage balance, now you have some interesting options.
Thanks...I like the balanced approach.

Any other thoughts or suggestions from the crowd?

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