Search found 1651 matches

by Outer Marker
Mon Apr 12, 2021 12:27 pm
Forum: Personal Investments
Topic: Simplicity over Small Cap Value
Replies: 85
Views: 5912

Re: Simplicity over Small Cap Value

SCV has historically been more tax efficient than total stock market. That would surprise me. When SCV companies "mature" and graduate from the index, they are sold and generate capital gains in SCV funds, whereas they are held forever in TSM. SCV funds also tend to have a high allocation...
by Outer Marker
Sun Apr 11, 2021 7:44 pm
Forum: Personal Investments
Topic: Simplicity over Small Cap Value
Replies: 85
Views: 5912

Re: Simplicity over Small Cap Value

SCV has historically been more tax efficient than total stock market. That would surprise me. When SCV companies "mature" and graduate from the index, they are sold and generate capital gains in SCV funds, whereas they are held forever in TSM. SCV funds also tend to have a high allocation...
by Outer Marker
Sun Apr 11, 2021 7:29 pm
Forum: Personal Investments
Topic: Effective tax rate 40%+ Sanity check on strategy for tax efficient investing
Replies: 55
Views: 4239

Re: Effective tax rate 40%+ Sanity check on strategy for tax efficient investing

At your tax rate, I would stop making any 401K contributions on an after-tax basis. Do all pre-tax. Hold your fixed income by making 100% of your pre-tax 401K holdings stable value (if available) or bond. Hold all equities in taxable. I would also pay down the mortgage vs. holding muni's in taxable...
by Outer Marker
Sun Apr 11, 2021 5:14 pm
Forum: Personal Investments
Topic: Simplicity over Small Cap Value
Replies: 85
Views: 5912

Re: Simplicity over Small Cap Value

I could, but I'd be wrong. A total market index fund is neutral. By definition, it holds companies in their market weights. If it is a preference not to do that, so be it. But a total market index fund does not over or under weight any size, style, or sector. Thank you for sharing your point of vie...
by Outer Marker
Sun Apr 11, 2021 2:34 pm
Forum: Personal Investments
Topic: Simplicity over Small Cap Value
Replies: 85
Views: 5912

Re: Simplicity over Small Cap Value

The notion that a small value tilt is somehow more complicated than a 3 find portfolio is clearly false. Both are trivial to maintain. There's no value in limiting yourself to 3 funds if you prefer 4. This is false simplicity. It’s clearly doable, but the benefit is suspect. Going back 20 years, I ...
by Outer Marker
Sun Apr 11, 2021 11:33 am
Forum: Personal Investments
Topic: Effective tax rate 40%+ Sanity check on strategy for tax efficient investing
Replies: 55
Views: 4239

Re: Effective tax rate 40%+ Sanity check on strategy for tax efficient investing

At your tax rate, I would stop making any 401K contributions on an after-tax basis. Do all pre-tax. Hold your fixed income by making 100% of your pre-tax 401K holdings stable value (if available) or bond. Hold all equities in taxable. I would also pay down the mortgage vs. holding muni's in taxable.
by Outer Marker
Sun Apr 11, 2021 10:25 am
Forum: Personal Finance (Not Investing)
Topic: How much should I overpay?
Replies: 51
Views: 5186

Re: How much should I overpay?

Buy smaller furniture? Seriously, what is the current house size and family size? Get rid of some stuff you don't need and save hundreds of thousands of dollars by not moving... Just a thought. +1. Decluttering can work wonders. Possibly a storage unit if needed. Do you have room for an addition?
by Outer Marker
Sun Apr 11, 2021 9:31 am
Forum: Personal Investments
Topic: Mixing Bogle and Ramsey to build my portfolio
Replies: 90
Views: 7767

Re: Mixing Bogle and Ramsey to build my portfolio

3.) Invest in mutual funds according to this asset allocation: 25% Equity Income, 25% Growth, 25% Aggressive Growth, 25% International. (Ramsey) For this, perhaps go with "never bear too much or too little risk". The definition of that differs. Graham said between 75% equities / 25% fixed...
by Outer Marker
Sat Apr 10, 2021 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: Remodel during housing hysteria?
Replies: 54
Views: 3567

Re: Remodel during housing hysteria?

This sure sounds like a tear-down. It's much easier to start over with a clean slate on that scale.

Strip the frame of all valuable recycles, copper pipes, etc.

Donate the structure to the the local fire department for practice and write it off.
by Outer Marker
Sat Apr 10, 2021 12:50 pm
Forum: Personal Investments
Topic: AA - Too conservative?
Replies: 27
Views: 2682

Re: AA - Too conservative?

After reading All about asset allocation by Richard Ferri 6 years ago I decided to set my asset allocation to 70% stocks and 30% bonds. I can’t recall exactly how I landed on this and now I’m questioning it. P.S. you might try taking the Vanguard questionnaire to reconfirm your decision. https://re...
by Outer Marker
Sat Apr 10, 2021 12:47 pm
Forum: Personal Investments
Topic: AA - Too conservative?
Replies: 27
Views: 2682

Re: AA - Too conservative?

I think your asset allocation is perfect. Going up further in equities doesn't buy you much additional return and amps up volatility considerably. https://investor.vanguard.com/investing ... allocation
by Outer Marker
Fri Apr 09, 2021 7:23 pm
Forum: Personal Investments
Topic: Simplicity over Small Cap Value
Replies: 85
Views: 5912

Re: Simplicity over Small Cap Value

How can there be much benefit to the simplicity of eliminating ONE fund? A lot. Are you going to be anxious about this under or over performing the market. Not to mention the annual rebalancing and accounting. Which is admittedly not a big deal if you’re committed to it, but unnecessary if you’re n...
by Outer Marker
Fri Apr 09, 2021 3:00 pm
Forum: Personal Investments
Topic: Simplicity over Small Cap Value
Replies: 85
Views: 5912

Re: Simplicity over Small Cap Value

As a reformed long term SCV tilter, my vote is keep it simple. Over more than two decades, I never saw a “premium”. It may not appear in my lifetime. Remember, a bet in favor of small value is a bet against all of the largest and most successful companies in America. Huh? Weren't all the current la...
by Outer Marker
Thu Apr 08, 2021 2:00 pm
Forum: Personal Investments
Topic: Consolidate Fidelity to Vanguard or not
Replies: 33
Views: 2456

Re: Consolidate Fidelity to Vanguard or not

For a small sum like that, I’d definitely simplify and consolidate at Vanguard.
by Outer Marker
Thu Apr 08, 2021 1:53 pm
Forum: Personal Investments
Topic: Simplicity over Small Cap Value
Replies: 85
Views: 5912

Re: Simplicity over Small Cap Value

As a reformed long term SCV tilter, my vote is keep it simple. Over more than two decades, I never saw a “premium”. It may not appear in my lifetime.

Remember, a bet in favor of small value is a bet against all of the largest and most successful companies in America.
by Outer Marker
Wed Apr 07, 2021 5:07 pm
Forum: Personal Investments
Topic: Suddenly retired; Read the book; Have questions!
Replies: 21
Views: 3197

Re: Suddenly retired; Read the book; Have questions!

One portfolio is enough. Don't complicate your life. Pick an asset allocation you can live with, and stick with it. Retiring early, you may want to have a slightly higher allocation to equities. For my part, I plan to be 70/30 forever and pass on what's left. Regarding fixed income, if you have acce...
by Outer Marker
Wed Apr 07, 2021 1:25 am
Forum: Personal Investments
Topic: 34yr old - First time poster - Portfolio & Life Help
Replies: 20
Views: 3142

Re: 34yr old - First time poster - Portfolio & Life Help

Welcome to the forum. You have too many funds. Simplify and breath easy. A 3-fund portfolio would likely work well for you. https://www.bogleheads.org/forum/viewtopic.php?f=10&t=88005 Read up on the wiki on efficient tax placement. VT is a great place to live. If you're luck enough to hold a meg...
by Outer Marker
Tue Apr 06, 2021 4:54 pm
Forum: Personal Investments
Topic: Time to dial back 529 plans?
Replies: 10
Views: 1851

Re: Time to dial back 529 plans?

Well, I pulled the trigger today and went with the outlined plan: Kid 1 - 25/75 Kid 2 - 50/50 Thank you, everyone for the helpful advice, and apologies for not responding to each individually. The board is a great "gut check" before making any big moves. My girl's educations have always be...
by Outer Marker
Tue Apr 06, 2021 11:08 am
Forum: Personal Investments
Topic: Invest or Payoff mortgage
Replies: 29
Views: 2654

Re: Invest or Payoff mortgage

With a combined annual income of $250,000, you are in the 24% federal tax bracket, plus 5.75% Virginia tax. I would therefore focus on maxing out your tax deferred 401K accounts, as well as maxing out Roth IRA's which will need to be funded through the "back door". See wiki. Since you are ...
by Outer Marker
Tue Apr 06, 2021 7:02 am
Forum: Personal Investments
Topic: Time to dial back 529 plans?
Replies: 10
Views: 1851

Time to dial back 529 plans?

I'm thinking with my 1st daughter 1 year out from college and the markets pushing new highs, it may be time to dial back the girl's 529 plans. I stepped down from 80/20 a few years ago in both plans; I was targeting 50/50, but the market kindly disagreed with me, and over the last year pushed me up ...
by Outer Marker
Tue Apr 06, 2021 6:49 am
Forum: Personal Investments
Topic: Financial advisor help
Replies: 22
Views: 2103

Re: Financial advisor help

If you don't want to do it yourself, Vanguard PAS checks nearly all your boxes. https://investor.vanguard.com/advice/financial-advisor/personal-advisor-services You need a good accountant for business tax advice. It's a separate discipline. Most here wouldn't recommend speculating on investment prop...
by Outer Marker
Sat Apr 03, 2021 10:19 am
Forum: Personal Investments
Topic: Advice on what to do with a "windfall" at age 55
Replies: 19
Views: 3435

Re: Advice on what to do with a "windfall" at age 55

There are any number of curves that can throw someone's financial life off track. Divorce comes immediately to mind. OP came here for help, and I don't think "get thee to a fee-only advisory" is necessarily the prescription. A deliberate and focused investing approach going forward, combin...
by Outer Marker
Sat Apr 03, 2021 9:34 am
Forum: Personal Investments
Topic: Advice on what to do with a "windfall" at age 55
Replies: 19
Views: 3435

Re: Advice on what to do with a "windfall" at age 55

Congratulations, Counselor. I think you are on the right track with paying off your debt, and would strongly encourage you to do so, including the mortgage. Nothing else pays 3.5% with an absolute 100% safety guarantee. And, peace of mind from owning your own house is very gratifying. I'd fully fund...
by Outer Marker
Fri Apr 02, 2021 4:32 am
Forum: Personal Finance (Not Investing)
Topic: Tax withholding
Replies: 11
Views: 837

Re: Tax withholding

It sounds like you filled out the W4 incorrectly. Figure out about how much additional tax you owe over the year, which Turbotax does automatically, and allow for a little overage. The W4 asks for "Enter any additional tax you want withheld each pay period ." So, whatever annual amount you...
by Outer Marker
Sun Mar 28, 2021 12:27 pm
Forum: Personal Investments
Topic: 500k portfolio needing 3k/month income.
Replies: 40
Views: 5141

Re: 500k portfolio needing 3k/month income.

Sure. A 70/30 portfolio of S&P 500 and Total Bond has yielded 9.4% on average over the last 100 years. https://investor.vanguard.com/investing/how-to-invest/model-portfolio-allocation. Netting out inflation, that's a bit more than his withdrawl rate. That’s not the yield though, that’s the tota...
by Outer Marker
Sat Mar 27, 2021 7:43 pm
Forum: Personal Investments
Topic: 500k portfolio needing 3k/month income.
Replies: 40
Views: 5141

Re: 500k portfolio needing 3k/month income.

There’s a school of thought that some on this forum have that you should never get involved in your family‘s business. That’s not my definition of family. If you see a family member in danger, you get involved to help them. There is nothing wrong with you talking to your brother and presenting him ...
by Outer Marker
Sat Mar 27, 2021 7:36 pm
Forum: Personal Investments
Topic: Portfolio review for late-30s couple
Replies: 28
Views: 2799

Re: Portfolio review for late-30s couple

You're on sound footing and I don't dispute your logic. However, to follow up a bit. 1. I think that Bogle's eschewing of international is out of date. His legacy company may be taking it a bit far at 40% of equities, but I don't think zero is prudent. I'm not sure which will do better, but I want t...
by Outer Marker
Sat Mar 27, 2021 12:26 pm
Forum: Personal Investments
Topic: 500k portfolio needing 3k/month income.
Replies: 40
Views: 5141

Re: 500k portfolio needing 3k/month income.

Sure. A 70/30 portfolio of S&P 500 and Total Bond has yielded 9.4% on average over the last 100 years. https://investor.vanguard.com/investing/how-to-invest/model-portfolio-allocation. Netting out inflation, that's a bit more than his withdrawl rate. That’s not the yield though, that’s the tota...
by Outer Marker
Sat Mar 27, 2021 12:09 pm
Forum: Personal Investments
Topic: 500k portfolio needing 3k/month income.
Replies: 40
Views: 5141

Re: 500k portfolio needing 3k/month income.

My brother has a 500k portfolio, made up of various high-ER, non-diversified mutual funds that were chosen by his advisor. I've explained to him the Boglehead way of keeping things low-cost, diversified, and simple. He seems to grasp the concept, but his current portfolio pays for his monthly livin...
by Outer Marker
Sat Mar 27, 2021 11:14 am
Forum: Personal Investments
Topic: New boglehead looking for a review
Replies: 10
Views: 843

Re: New boglehead looking for a review

Given that you are very risk adverse, I'd put down a large down payment and take a 15 year mortgage on the remainder so that you are done by your proposed retirement date. Its very surprising you're not allowed to contribute to your current 401K. That deserves closer investigation. Are they terminat...
by Outer Marker
Sat Mar 27, 2021 9:51 am
Forum: Personal Finance (Not Investing)
Topic: TOD for home - need attorney?
Replies: 7
Views: 788

Re: TOD for home - need attorney?

My mom TOD'ed the family home to me. It was seamless and the town clerk updated the title without even being contacted by me when they learned of her death. Using the state form and having it properly notarized and recorded should be adequate. You could also "belt and suspenders" it by hav...
by Outer Marker
Sat Mar 27, 2021 9:35 am
Forum: Personal Investments
Topic: new investor in her 20s seeking help with first investments – especially bonds
Replies: 28
Views: 2601

Re: new investor in her 20s seeking help with first investments – especially bonds

As others have said, hold all your bonds/fixed income in the 401K. If you have a good "stable value" fund, i'd use that instead. Currently paying higher interest with no interest rate risk.
by Outer Marker
Sat Mar 27, 2021 9:31 am
Forum: Personal Investments
Topic: Huge Windfall + Vanguard PAS, Here's What They Allocated For Me
Replies: 68
Views: 7699

Re: Huge Windfall + Vanguard PAS, Here's What They Allocated For Me

Now that you're all set up, I'd discontinue the PAS and manage it on your own.
by Outer Marker
Sat Mar 27, 2021 4:20 am
Forum: Personal Investments
Topic: Portfolio review for late-30s couple
Replies: 28
Views: 2799

Re: Portfolio review for late-30s couple

Nice work so far. A few comments and suggestions - 1. I think you'd be well served by diversifying with international. Currently, U.S. equities are relatively high priced. Vanguard's allocation is around 40%, which seems high. I like Taylor's "concensus" suggestion of 20% https://www.bogle...
by Outer Marker
Thu Mar 25, 2021 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: Creative Real Estate Listing Agent Fee Structure
Replies: 40
Views: 2004

Re: Creative Real Estate Listing Agent Fee Structure

So, update - after doing some research and interviewing several agents, I'm about to sign a listing contract. Terms are a 4.5% commission. Selling agent to receive 1.5%, Buyer's agent 3%. In the event there's not a buyer's agent involved, the selling agent would get the full 4.5%. It's an easy, unde...
by Outer Marker
Wed Mar 24, 2021 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: House buying negotiations
Replies: 122
Views: 9760

Re: House buying negotiations

Back in the late 90’s, I had a friend who lost a $300k house in an ideal neighborhood because, after negotiating for a month, he and the seller, neither of whom had realtors, were $8k apart in price. Ten years later, he finally paid $600k for a similar house in a much worse location. Don’t be that ...
by Outer Marker
Wed Mar 24, 2021 7:40 am
Forum: Personal Investments
Topic: Desperately asking for help - Thank you!
Replies: 39
Views: 5301

Re: Desperately asking for help - Thank you!

Sorry to hear of your financial travails. Familiarize yourself with the story of "Bob, the world's worst market timer." https://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/ Even if you invest at the worst times, just as the market peaks before a crash, you are likely to come...
by Outer Marker
Mon Mar 22, 2021 3:15 pm
Forum: Personal Consumer Issues
Topic: Solar Cost Estimate
Replies: 19
Views: 1287

Re: Solar Cost Estimate

I don't live too far away in Maryland ... Things you have to watch out for is the actual electricity you generate vs what was predicted. We are running at about 96% of projected so I am a bit disappointed in actual performance. Other than that, there were no surprises Being in MD, I'm curious how y...
by Outer Marker
Mon Mar 22, 2021 12:00 pm
Forum: Personal Investments
Topic: Am I doing this right? Help a sister out.
Replies: 37
Views: 5704

Re: Am I doing this right? Help a sister out.

Would you recommend also throwing the money I have in my VGSTX fund in the Total Stock Market index fund too? or is that too much money to throw into one the stock fund? I know it's my personal choice, but I suppose I'm just wondering how much is too much of my portfolio to throw into the total sto...
by Outer Marker
Mon Mar 22, 2021 10:36 am
Forum: Personal Finance (Not Investing)
Topic: Underpayment of tax penalty?
Replies: 39
Views: 2977

Re: Underpayment of tax penalty?

I don't know why this stuff makes me panic. Anything having to do with insurance, lawyers, taxes makes me anxious. I'll estimate the taxes and pay it off with a fourth quarter payment, based on the tax treatment we believe is correct. Don't sweat it. Your error is very minor, and underpayment penal...
by Outer Marker
Sun Mar 21, 2021 10:26 am
Forum: Personal Finance (Not Investing)
Topic: Applying for Social Security — When?
Replies: 23
Views: 2095

Re: Applying for Social Security — When?

This is the best simple discussion of why it is almost always better to delay taking SS benefits until 70. viewtopic.php?t=102609
by Outer Marker
Sun Mar 21, 2021 8:55 am
Forum: Personal Finance (Not Investing)
Topic: Is an Emergency Fund Really needed in our case?
Replies: 60
Views: 5528

Re: Is an Emergency Fund Really needed in our case?

I don't think anyone with substantial assets needs an "emergency fund" - but you do need liquidity. You don't want to have to cash in equities if you need a new transmission. Consider putting it in iBonds that will at least keep pace with inflation, and count is as part of the fixed incom...
by Outer Marker
Sun Mar 21, 2021 8:40 am
Forum: Personal Finance (Not Investing)
Topic: Is an Emergency Fund Really needed in our case?
Replies: 60
Views: 5528

Re: Is an Emergency Fund Really needed in our case?

I don't think anyone with substantial assets needs an "emergency fund" - but you do need liquidity. You don't want to have to cash in equities if you need a new transmission. Consider putting it in iBonds that will at least keep pace with inflation, and count is as part of the fixed income...
by Outer Marker
Sun Mar 21, 2021 8:29 am
Forum: Personal Investments
Topic: What's a good time to simplify portfolio?
Replies: 18
Views: 1717

Re: What's a good time to simplify portfolio?

Just do it now and don't look back. Consider yourself lucky that small cap value had a resurgance. Eveything that is known or knowable about a stock is already priced in. No one knows if SCV will do better or worse than the market as a whole over the next 1, 5, 10, or 50 years. After 20+ years of SC...
by Outer Marker
Sun Mar 21, 2021 4:47 am
Forum: Personal Investments
Topic: Am I doing this right? Help a sister out.
Replies: 37
Views: 5704

Re: Am I doing this right? Help a sister out.

Welcome to the board and congratulations on doing so many things right at such a young age. It is certainly admirable that you are generous and willing to give up 18% of your paycheck to charitable giving and helping out family. That does seem like an awful lot of burden on a 29 year old. I just hop...
by Outer Marker
Sat Mar 20, 2021 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: House buying negotiations
Replies: 122
Views: 9760

Re: House buying negotiations

If all the homes are selling below the asking price that likely means there is no bidding war and certainly not many offers above the asking price. Prices overall are higher compared to the last year. Looking at the comparables a reasonable price for this house should be max 1.25 M. Not saying it s...
by Outer Marker
Sat Mar 20, 2021 8:55 am
Forum: Personal Investments
Topic: Income Floor -- What Percentage of COL?
Replies: 17
Views: 1378

Re: Income Floor -- What Percentage of COL?

If, as your signature line implies, you have 40% of your portfolio in fixed income, I'd do nothing different. Just maintain your AA and withdraw money as needed. With 40x savings, and 40% fixed income, that gives you 40 year * .4 = 16 years worth of expenses in flixed income. Just maintain your AA. ...
by Outer Marker
Fri Mar 19, 2021 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: House buying negotiations
Replies: 122
Views: 9760

Re: House buying negotiations

Avoid bidding against yourself. You’ve got an offer on the table. If they want it, great. If not, up to them to counter.
by Outer Marker
Fri Mar 19, 2021 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: House buying negotiations
Replies: 122
Views: 9760

Re: House buying negotiations

Why would someone with offers above the asking price be contacting someone whose offer is below the asking price? Seems like they are either lying and are trying to get you to bid against yourself or they are using you to get others to up their offers. Add in that your situation has changed, I'd be...
by Outer Marker
Fri Mar 19, 2021 2:03 pm
Forum: Personal Investments
Topic: PAS financial plan
Replies: 26
Views: 1854

Re: PAS financial plan

I am also considering just transferring the roth to the life strategy moderate growth fund so I don’t have to regularly rebalance and save on the .30 pas fee. I don’t get the feeling I will get much more than rebalancing from the pas although the advisor insisted I could call as much as I want and ...