Search found 43 matches

by sonowwhat?
Fri Mar 20, 2020 9:23 pm
Forum: Personal Investments
Topic: Adjusting IPS and Rebalance Approach to Sleep better
Replies: 5
Views: 381

Re: Adjusting IPS and Rebalance Approach to Sleep better

I mean I have 6% in cash but and I'm retired so my investment income is all my cash flow. I mean this is essentially a hedge against dooms day. As an exaggeration lets say stocks go down as far as April 2009 levels which would be an 80% drop from its January high. This would mean dropping an additional 70% from todays levels. In my case that would drive my stock percentage down to only 9%. Using my proposed approach, I would have liquidated to cash 26% of my net worth from bonds as the market dropped to allow for cash to reinvest in stocks on my re-balance date. What I'm accomplishing is taking away some of the default risk from corporate bonds by constantly liquidating enough to re-balance when the time is ready. Any more thoughts. I reali...
by sonowwhat?
Fri Mar 20, 2020 5:32 pm
Forum: Personal Investments
Topic: Adjusting IPS and Rebalance Approach to Sleep better
Replies: 5
Views: 381

Re: Adjusting IPS and Rebalance Approach to Sleep better

Hello to the Boglehead Brain-Trust Universe: I currently as of today have the following: 6 % cash 31% equities (29% FSKAX Fidelity® Total Market Index Fund , 2% FSPSX Fidelity® International Index Fund) 63% bonds (25% VBTLX Vanguard Total Bond Market Index Fund Admi, 38% VFIDX Vanguard Intermediate-Term Investment) I have lost about 14% of my net worth from its high in January. My IPS says 35% stock with the remainder of 5% in cash and 60% in bonds. I am not at my re-balance date which is not until mid May. Problem I got is I thought I understood my risk tolerance after 2008 but I don't think I could have imagined the current scenario. I'm 57 and retired. I want to throw out to the bogleheads a modification to my IPS and get your opinion. M...
by sonowwhat?
Fri Mar 20, 2020 5:31 pm
Forum: Personal Investments
Topic: Adjusting IPS and Rebalance Approach to Sleep better
Replies: 5
Views: 381

Adjusting IPS and Rebalance Approach to Sleep better

Hello to the Boglehead Brain-Trust Universe: I currently as of today have the following: 6 % cash 31% equities (29% FSKAX Fidelity® Total Market Index Fund , 2% FSPSX Fidelity® International Index Fund) 63% bonds (25% VBTLX Vanguard Total Bond Market Index Fund Admi, 38% VFIDX Vanguard Intermediate-Term Investment) I have lost about 14% of my net worth from its high in January. My IPS says 35% stock with the remainder of 5% in cash and 60% in bonds. I am not at my re-balance date which is not until mid May. Problem I got is I thought I understood my risk tolerance after 2008 but I don't think I could have imagined the current scenario. I'm 57 and retired. I want to throw out to the bogleheads a modification to my IPS and get your opinion. M...
by sonowwhat?
Thu Mar 19, 2020 10:58 am
Forum: Personal Investments
Topic: Why are my safety bond funds going down?
Replies: 14
Views: 763

Re: Why are my safety bond funds going down?

So the losses are small now relative to stocks so would going to cash in these Bonds be crazy now? Its effecting my sleep factor!
by sonowwhat?
Thu Mar 19, 2020 10:52 am
Forum: Personal Investments
Topic: Why are my safety bond funds going down?
Replies: 14
Views: 763

Why are my safety bond funds going down?

I have 60% of my investments in Bonds Specifically with following losses overnight and YTD:

VFIDX Vanguard Intermediate-Term Investment-Grade Fund Admiral Shares => -1.93% YTD => -3.25%

VBTLX Vanguard Total Bond Market Index Fund Admiral Shares => - 1.62% YTD => -0.4%


Makes my nervous seeing an overnight decline in bond values especially since I was banking on safety and with rates declining them actually going up. Someone help me understand whats going on. Ive lost plenty in stocks and need to keep bond values preserved and was shocked to see such a quick decline. Are we at the point where overall bond market is pricing in significant default risk?
by sonowwhat?
Mon Mar 16, 2020 12:36 pm
Forum: Personal Investments
Topic: Who is staying course and how are you dealing with net worth going down?
Replies: 359
Views: 33861

Re: Who is staying course and how are you dealing with net worth going down?

LthanP wrote: Mon Mar 16, 2020 12:28 pm I already posted earlier in the thread what I was doing. Updated today: I am buying $1,000 dollars worth of stock (mutual fund so adding to position) . Not because it will make a difference one way or another in my net worth, but it makes me feel good and I want to be able to tell my kids I believe in the country and the future. It just a small thing I am doing.
I love this!!!! Gonna do the same thing today!
by sonowwhat?
Mon Mar 16, 2020 9:15 am
Forum: Personal Investments
Topic: Who is staying course and how are you dealing with net worth going down?
Replies: 359
Views: 33861

Re: Who is staying course and how are you dealing with net worth going down?

You guys posting doom and gloom are on the wrong forum and obviously are missing the point of the Boglehead strategy. I appreciate you though as if it were not for you I would not make near the amount of money I would otherwise. You see we have been through crisises before and we will again. I need your panic to drive stock prices down so when I re-balance (on predetermined dates regardless of the "news of the day"), I will make all the more. I will be greedy as your fear hits a frenzied peak. If you cannot stomach what is going on then you were not appropriately balanced between equities/bonds going into this. It takes a crisis like this though to figure it out so your not really to blame. After you consider all the age, retireme...
by sonowwhat?
Mon Mar 09, 2020 3:33 pm
Forum: Personal Investments
Topic: Rebalancing early in fearful times
Replies: 17
Views: 1480

Re: Rebalancing early in fearful times

Yeah that’s my fear! Let’s hope we don’t have a repeat of 2008! Problem I’ve got is historically I rebalance about every 2 months buy selling stocks which keeps my ratio in check and use the money to live. I guess I just flip that during correction and sell bonds. Just curious what are the time periods people use to rebalance?
by sonowwhat?
Mon Mar 09, 2020 3:21 pm
Forum: Personal Investments
Topic: Rebalancing early in fearful times
Replies: 17
Views: 1480

Rebalancing early in fearful times

Would rebalancing sooner than your normal time period such as right now in a full blown panic be trying to time the market! I want to be a purist in terms of passive boglehead investing but was thinking that rebalancing now might make some sense!
by sonowwhat?
Thu Jan 16, 2020 8:11 am
Forum: Personal Investments
Topic: Help with Portfolio Allocation and Investing Excess Cash
Replies: 5
Views: 476

Re: Help with Portfolio Allocation and Investing Excess Cash

That some really great advice Jack!!!!!
by sonowwhat?
Thu Jan 16, 2020 7:48 am
Forum: Personal Investments
Topic: Help with Portfolio Allocation and Investing Excess Cash
Replies: 5
Views: 476

Re: Help with Portfolio Allocation and Investing Excess Cash

Thanks! And yes, the 6% is part of the new cash!
by sonowwhat?
Wed Jan 15, 2020 1:25 pm
Forum: Personal Investments
Topic: Help with Portfolio Allocation and Investing Excess Cash
Replies: 5
Views: 476

Help with Portfolio Allocation and Investing Excess Cash

Happy New Year everyone. It’s my 10 year anniversary as a Boglehead and I have never once regretted it! So, in Laura’s format (our close to it) here you go: Background Employment Status: Retired since Dec 2007 Age: 56 Married w/ 3 Children: Ages 26, 23, 22 Home: (Paid for) Income: Only source of income is from investments. In general, I have been living off of capital gains and rebalance by essentially selling equities to fund my lifestyle which keeps my allocations consistent. Withdrawal Rate Needed as % of Investment Portfolio (Excluding Real Estate) in Today's dollars: Approx 2% to fund current standard of living Investment Expertise: Novice but I do have a CPA license and MBA in taxation so some finance background Max % of Equity I can ...
by sonowwhat?
Thu Dec 27, 2012 8:00 am
Forum: Personal Investments
Topic: Capital gains (What to do?)
Replies: 11
Views: 965

Re: Capital gains (What to do?)

sscritic wrote:
This is not correct, as livesoft points out. Fill out a fake Schedule D today assuming you sell everything. What do you get?

round numbers:
gain 10 + 250 + 150 = 410
loss 200 + 50 + 300 = 550
Which is bigger? Now all you have to do is figure out what lines of Schedule D and Form 8949 to use.
Sorry for not following but wouldn't total gains be $507,500 (7+2.5+363+135) and I am not right in thinking that short term loss carry-forwards can only offset short term gains not long term gains?
by sonowwhat?
Thu Dec 27, 2012 7:53 am
Forum: Personal Investments
Topic: Capital gains (What to do?)
Replies: 11
Views: 965

Re: Capital gains (What to do?)

livesoft wrote: If I needed to sell some things in order to pay expenses in 2013, I would sell things with the highest cost basis that would use up the least amount of carryover losses.

What is the reason for this. I am unclear on why utilizing the carry-forwards or stockpiling them is preferable one way or the other?
by sonowwhat?
Thu Dec 27, 2012 7:47 am
Forum: Personal Investments
Topic: Capital gains (What to do?)
Replies: 11
Views: 965

Re: Capital gains (What to do?)

livesoft wrote:3) Don't sell and don't worry.

I don't understand why you need to realize gains at all.

is there no merit in selling enough to eat up the LTcarry-forwards (no taxes) so I can reinvest and hopefully get ST gains to utilize the ST carry-forward?
by sonowwhat?
Thu Dec 27, 2012 7:38 am
Forum: Personal Investments
Topic: Capital gains (What to do?)
Replies: 11
Views: 965

Capital gains (What to do?)

Not sure what to do here. I have sizable tax loss carry-forwards and unfortunately they do not match up well in terms of long/short unrealized gains. Short-term Loss Carryforward to 2012 - $198,000 Unrealized Stock Capital Gains - $7,000 Unrealized Bond Capital Gains - $2,500 Long-term Loss Carryforward to 2012 - $51,000 Unrealized Stock Capital Gains - $363,000 Unrealized Bond Capital Gains - $135,000 Realized Capital Loss (2012) on Real Estate transaction $300,000 I'm retired, and in 2011 I had about 100k in investment earnings and taxable income of $80k after itemizing and exemptions. I am thinking through a few scenarios. 1) Sell and reinvest to recognize all gains now yielding about a net long term capital gain of $147k and pony up the...
by sonowwhat?
Fri Nov 30, 2012 11:25 am
Forum: Personal Finance (Not Investing)
Topic: Estate Tax Changes
Replies: 46
Views: 3993

Re: Estate Tax Changes

bluemarlin08 wrote:Consider buying term on your spouse, accomplishes the same thing, assuming taxes are being paid at the second to die.
Now thats good thinking!!!!!! Matter a fact, might be the best idea yet given I can use an AB trust (Credit Shelter Trust) to utilize whatever the unified credit is at the time then in the unlikely scenario we both kick the bucket her insurance could fund estate taxes. If tax laws change permanently, then just drop the term life. I LIKE IT!
by sonowwhat?
Fri Nov 30, 2012 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Estate Tax Changes
Replies: 46
Views: 3993

Re: Estate Tax Changes

Term Life a good idea, unfortunately I have some medical issues that pretty much make the any new life insurance cost prohibitive. Good idea though. One I had not thought of and for someone with the same estate concerns as I have would be a great solution. Again, this is the type of feedback I am looking for.
by sonowwhat?
Fri Nov 30, 2012 7:22 am
Forum: Personal Finance (Not Investing)
Topic: Estate Tax Changes
Replies: 46
Views: 3993

Re: Estate Tax Changes

There have been a large number of threads recently ostensibly about future tax rates, especially marginal rates. Given the current situation - that this is an area of current debate, the outcome of which cannot be foretold - such posts amount to nothing more than speculating over proposed legislation which is not an acceptable topic on thsi site. Once the dust has settled and we have a set of laws upon which people can take action, we will reopen the topic. Why isn't this thread locked? This (My) post is asking about actionable estate planning under current law. Current law reduces both the unified credit and increases the rate effective January 1. It is not speculative. It is asking what to do given current law. So far I have have gotten ...
by sonowwhat?
Thu Nov 29, 2012 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Tax Changes
Replies: 46
Views: 3993

Re: Estate Tax Changes

JDCPAEsq wrote:Make sure you have wills taking full advantage of the marital deduction and the exemption equivalent for each of you and then forget it. I certainly wouldn't make any substantial lifetime transfers to children at age 49.
John
I have a "Credit Shelter Trust" or "Bypass Trust" provision in my Will so I assume that is all I need to do to take maximum advantage of both. My understanding is my wife would notify IRS of the amount (whatever my unused exemption is and is allowed by law at the time) she is disclaiming and notify the IRS within 9 month in writing. Apart from that, I am unaware of anything else I can do to maximize these.
by sonowwhat?
Thu Nov 29, 2012 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Tax Changes
Replies: 46
Views: 3993

Re: Estate Tax Changes

This is not meant to be snarky, however unless you know you are going to leave this planet shortly, why are you thinking about it? Enjoy your life including time spent with those you care about most and spend it now. You are 49, not 85 (no disrespect intended to those forum members who are, but you get the point). You are fortunate than most and may i recommend Charles Dickens "A Christmas Carol" to drive it home. Well, I do have health issues and you never know. I think estate tax planning is probably even more important for younger families with some acquired wealth. The purpose of my post is to elicit some estate planning strategies but I promise I will and have considered the philosophical and spiritual side of things includi...
by sonowwhat?
Thu Nov 29, 2012 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Tax Changes
Replies: 46
Views: 3993

Re: Estate Tax Changes

If I gift say $3 mil and keep $2 mil then when I die the whole $2 mil will be taxed. They will look back and see that I used up to and in this case over the $2 mil when I gifted the $3 mil in 2012. That is I essentially used up the entire credit this year so unless I gift the whole thing now while the unified credit is $10 million there is no way to avoid the 55% rate unless Congress gets there act together.
by sonowwhat?
Thu Nov 29, 2012 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Tax Changes
Replies: 46
Views: 3993

Re: Estate Tax Changes

Agree with not going broke but just looking avoiding giving it away in taxes going broke may be the best answer (55% tax rate on $2 million is a lot of money!)
by sonowwhat?
Thu Nov 29, 2012 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Tax Changes
Replies: 46
Views: 3993

Re: Estate Tax Changes

Problem is if gifting is the answer, you have to do it before year end. Hmmmm what to do.
by sonowwhat?
Thu Nov 29, 2012 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Tax Changes
Replies: 46
Views: 3993

Estate Tax Changes

Our families Net Worth is approximately $6 million, I am retired, 49 years old, married with three kids (19, 16, 15). The majority (80%) of the net worth is in stocks and bonds and the rest real estate (Home and one rental) and IRAs. Most of our net worth is held in a family limited liability company for estate tax purposes only. The reasoning behind this was that for estate tax planning purposes, a family limited liability company's value lies primarily in its ability to reduce the size of our estate by way of "valuation discounts." A piece of property or an asset, generally, will experience a reduction in its fair market value, a valuation discount, when encumbrances are placed upon it. Thus I estimate that this technique reduce...
by sonowwhat?
Sun Aug 07, 2011 5:46 pm
Forum: Personal Investments
Topic: Equity/Bond allocation using ABILITY, WILLINGNESS & NEED
Replies: 13
Views: 1640

Maybe Another Option Then

dbr I really appreciate your feedback. It is almost over my head but in a nutshell I think you feel that backing into the lowest equity allocation using Firecalc with fixed assumptions to still achieve a 100% success rate is not quite as conservative as one would think. Given that I am early retired, using such long periods normalizes the return under any time frame and also does not account for "life situations" that can occur under such a long time frame. I can understand now what you are saying. I am analytical though and it helps me to approach the problem of equity/fixed income allocations analytically if possible. That being said, are there other models that I can put in some conservative assumptions into, including front lo...
by sonowwhat?
Sun Aug 07, 2011 11:22 am
Forum: Personal Investments
Topic: Equity/Bond allocation using ABILITY, WILLINGNESS & NEED
Replies: 13
Views: 1640

I am not sure if individual holdings make much of a difference in this discussion of choosing an overall mix, but here are my investment allocations. Cash & Equivalents 2.4% Equites 37.95% Bonds 59.66% Total 100% TAXABLE Bond Funds (37%) 19% Vanguard Intermediate-Term Investment-Grade Fund Admiral Shares 18% Vanguard Total Bond Market Index Fund Admiral SharesVBTLX Cash & Equivalents (13%) 0.2% Cash 13.0% CD (Matures NOW and must figure where to reinvest) Equity Funds (41%) 33% SPRTN TOTAL MKT INDX FID ADVANTAGE CLASS 8% SPARTAN INTL INDEX FID ADVANTAGE CLASS HIS IRA (All Bond)) 5% Vanguard Total Bond Market Index Fund Admiral SharesVBTLX HER IRA (All Bond)) 0.4% Vanguard Total Bond Market Index Fund Admiral Shares 529 COLLEGE PLANS...
by sonowwhat?
Sat Aug 06, 2011 6:35 pm
Forum: Personal Investments
Topic: Equity/Bond allocation using ABILITY, WILLINGNESS & NEED
Replies: 13
Views: 1640

pkcrafter wrote: Later in your post you say you will begin 4% withdrawals and do that until 55 (for 7 years or 10 years?). The 4% rate is based on 30 years, but since you will reduce it substantially in 7 years you might be OK, but there is some risk. Is the withdrawal method you are going to use begin with 4% and increase by an inflation adjustment each year? If so, the early years can be critical to success. For instance a significant drop in the market in the first 5 years can ruin plans if adjustments are not made immediately. and dbr wrote: One thing for sure, over forty years a lot of things change and one must adjust. I would be wary of dispersing large fractions of assets early on. I am little nervous with all the comments regarding...
by sonowwhat?
Sat Aug 06, 2011 6:47 am
Forum: Personal Investments
Topic: Can't stay the course
Replies: 94
Views: 16220

A Lack of Faith

I would suggest not selling and use this opportunity to build your "faith" so to speak in the Boglehead principals. Your worried that whats going to happen is that we are going to go through some permanent correction or something. Trust me as a lot older person. These things recover. As far as going through this every time the market swings, it will get easier after each cycle you experience. What your feeling is what we all go through. Hang on or you will "lose" so to speak. Your odds of success (success being defined as being able to retire and not running out of money before your dead) are much much higher with an allocation to equities. Fix the mix as some have suggested but stay the course.
by sonowwhat?
Fri Aug 05, 2011 9:10 pm
Forum: Personal Investments
Topic: Equity/Bond allocation using ABILITY, WILLINGNESS & NEED
Replies: 13
Views: 1640

Equity/Bond allocation using ABILITY, WILLINGNESS & NEED

I am reading The Only Guide to a Winning Investment Strategy You'll Ever Need by Larry Swedroe and it appears to bring clarity on how one should make an asset allocation. In the current tumultuous market, it may not be the right time to revaluate one’s allocation, but then again it may be the best time. For those of you who are familiar with this approach, I would really appreciate you reading this and given me some insight into my allocation between equities and fixed income using the three pronged approach of 1) Ability to take risk, 2) Willingness to take risk and lastly 3) Need to take risk. The following is a discussion of applying each of these criteria to my situation. Background: I am retired since December, 2007 and am currently 48...
by sonowwhat?
Fri Jul 22, 2011 5:02 pm
Forum: Personal Investments
Topic: Please Help me Update my Financial Plan!
Replies: 13
Views: 1680

Mid 7 Figures

Yes, I was referring to the around 5 million dollar range give or take. I guess with all the deducts I do feel I am in the 25% marginal range but just over the edge so that is why I said the effective was 15%. Some years and the way interest rates have been trending, I might be back in the 15% marginal if not already. In my mind, unless my taxable income increases, I am not that focused on trying to avoid taxes.
by sonowwhat?
Fri Jul 22, 2011 3:33 pm
Forum: Personal Investments
Topic: Please Help me Update my Financial Plan!
Replies: 13
Views: 1680

Marginal Tax Rate

With approximately 60% of my taxable portfolio in Bonds and CDs, I get a 1099INT for these that are taxed at Ordinary rates. The starting level for the 25% tax bracket for married filing jointly begins at $69,000. My portfolio of interest bearing instruments is sufficient to trigger this as my marginal tax rate. When I refer to marginal tax rate, I think of it in terms of the rate you pay on the "last dollar" you earned of ordinary income. Long term capital gains are statutorily fixed in my mind at 15% for most brackets so I do not consider them when I refer to a marginal rate.
by sonowwhat?
Fri Jul 22, 2011 10:26 am
Forum: Personal Investments
Topic: Please Help me Update my Financial Plan!
Replies: 13
Views: 1680

Clarification

"Bob's not my name" - Tax Rate.....I would not give much consideration to my background as I have not practiced in the tax field in many years. I was not trying to define marginal tax rate but I have always understood it to mean that it is what your next dollars would be taxed at in comparison to the "effective rate" which is what you are actually paying. I took a guess at this as I have NOL carryovers etc.. that kind of sway the short term feel of this. - CD.... Your right, I am well over the FDIC limit on this particular CD. Very careless on my part, but I sit all my investments inside of an LLC for both asset protection purposes and estate valuation planning. In the past I have gotten very creative in how I hold these...
by sonowwhat?
Thu Jul 21, 2011 3:18 pm
Forum: Personal Investments
Topic: Please Help me Update my Financial Plan!
Replies: 13
Views: 1680

Please Help me Update my Financial Plan!

Back in early 2010 I fired my broker with UBS and have moved all my assets to self directed accounts (Fidelity, Vanguard and banks). I am a now a full fledged Boglehead and other than a boring financial life I have time to actually spend time with the kids instead of watching the financial shows. I went from literally 30 funds (all with high fees) to four low fee funds and one CD. I do need some help though as the one CD is expiring and reinvestment into CDs seems well pointless. So, in Laura’s format (or close to it) here you go: Background: Employment Status: Retired since Dec 2007 Age:48 Married w/ 3 Children: Ages 18, 15, 13 Home (Paid for) Income: Only source of income is from investments Withdrawal Rate Needed as % of Investment Portf...
by sonowwhat?
Thu Feb 18, 2010 11:18 am
Forum: Personal Investments
Topic: Please Help me with Revamping my Portfolio!
Replies: 34
Views: 6124

Its been a while but wanted to get any final thoughts as I finalize my allocation and invest between now and Monday. I went through the Vanguard Financial Planning Process as suggested in this forum. I learned a whole lot about estate planning in that process too. Cannot say enough about the Vanguard CFP advice that is available. I have now liquidated my entire portfolio and I am awaiting settlement (3days) to be able to move cash to Vanguard. I will leave my equities at Fidelity. Here is where I am. The split in the Bond funds was driven to reduce exposure to Treasuries. I have a sizable amount of CDs coming due in late February and that will go toward the bond funds as shown, but if I can get a good rate I may roll some of it into CDs. An...
by sonowwhat?
Fri Jan 08, 2010 4:53 pm
Forum: Personal Investments
Topic: Please Help me with Revamping my Portfolio!
Replies: 34
Views: 6124

A bit of an update. Still trying to put this puzzle together whiel trying to avoid "analysis paralysis"! Since my last posts I think the majors issues I need to get comfotable with before putting together an asset model are as follows: 1) The need for tax efficiency: I have looked carefully at my tax situation and I do not think, at least for the next several years that I will have a reason to hold tax free bonds in my taxable accounts. This is driven by several factors, primarily the fact that I get a pretty large deduction for "investment interest" from a K-1 where I am a 45% owner in a commercial property development. That coupled with the qualified dividend treatment of US stocks and all the standard exemption stuff ...
by sonowwhat?
Wed Jan 06, 2010 8:45 pm
Forum: Personal Investments
Topic: Please Help me with Revamping my Portfolio!
Replies: 34
Views: 6124

Thanks for REIT insite, let me think about that one. For now I wanted to answer your earlier question: I think this is a very good possibility. It is possible that education and experience is the key to the courage to stay the course in hard times. Has someone mentioned our book list yet? One book not yet on this list is the Bogleheads' Guide to Retirement which has only been out a couple of months. I'd suggest you start out at just the level you mentioned - about 40% stocks. As you get more experience, you might move up to 50%. You might not. I don't believe I'd go much less than 40% stock since you are so young. You need stocks to keep that portfolio going for many years. I'm very curious about your number of 37.5% Would you be willing to...
by sonowwhat?
Wed Jan 06, 2010 8:05 pm
Forum: Personal Investments
Topic: Please Help me with Revamping my Portfolio!
Replies: 34
Views: 6124

OK, so after mulling it over reading tons of post and your replies, here is what I am thinking in terms of a restructured portfolio:

Image

If I go with this structure, the allocations both before and after between asset types will be as follows:

Image

The Cash/MM is essentially a 1 1/2 years of emergency funds.

This represents a 100% selloff of my current investments. I am more interested in the asset buckets and locations then the individual funds/etfs at this point.

Let me know what you think.
by sonowwhat?
Wed Jan 06, 2010 7:52 pm
Forum: Personal Consumer Issues
Topic: Which Netbook - ASUS or Toshiba or ?
Replies: 58
Views: 9583

I bought the toshiba for my son at Christmas. 9 Hour battery life and cool exterior with Windows 7 starter sold me
by sonowwhat?
Tue Jan 05, 2010 10:37 pm
Forum: Personal Investments
Topic: Please Help me with Revamping my Portfolio!
Replies: 34
Views: 6124

retiredjg wrote: So, how much are you willing to change? I'll give it a stab to get things started. What to sell? Almost everything. 100% if that is what makes sense! Curoious why several of you recommended TIPS in the IRAs. Is it because that in addition to paying tax annually on the interest you receive, you'll also have to pay tax each year on any increases to the principal, even though you won't receive the inflation-adjusted principal until the bond matures? retiredjg wrote: 1) I'm wondering if the munis are needed put them in the 15% tax bracket....where the munis are not needed. Not sure what you mean by this??? retiredjg wrote: You could get a free financial plan from Vanguard if you are interested in moving your funds there. I don'...
by sonowwhat?
Tue Jan 05, 2010 7:44 pm
Forum: Personal Investments
Topic: Please Help me with Revamping my Portfolio!
Replies: 34
Views: 6124

With 3 teenagers, one should consider if 529 plans make sense as a tax-sheltered place for your bonds. One can pre-load those plans with 5-years of contributions ($65K from you, $65K from your spouse or $130K combined). Such large amounts may not be wise because college doesn't cost that much and you may not want to make such a commitment, but a lesser amount would be useful. One could select something like the Vanguard Income option in the Ohio plan. Wow, I think in three hours I have received more "good" investment advice than I have in the past three years. As for 529 plans, I have them just plumb forgot about them when I put this thing together. I have been contrbuting to them for about 10 years now. They are the Georgia 529 ...
by sonowwhat?
Tue Jan 05, 2010 2:46 pm
Forum: Personal Investments
Topic: Please Help me with Revamping my Portfolio!
Replies: 34
Views: 6124

Please Help me with Revamping my Portfolio!

Happy New Year everyone. I have recently fired my broker with UBS and have moved all my assets to a self directed Fidelity account. I am a Boglehead wanna be and am almost finished with the "Investors Manifesto". In the meantime, I need to sort through the mess I have made over the years with UBS. I am not sure if this forum is the appropriate place as I have quite a bit of reallocating to do but I hope some of you would be willing to take the time and help me get started. I have enough Capital Loss Carryfowards to reallocate the majority of my portfolio without too many current tax consequences. So, in Laura’s format (our close to it) here you go: Background Employment Status: Retired since Dec 2007 Age:46 Married w/ 3 Children: ...
by sonowwhat?
Mon Jan 04, 2010 4:54 pm
Forum: Personal Investments
Topic: The "Investors Manifesto" and a few questions
Replies: 4
Views: 1359

The "Investors Manifesto" and a few questions

I am currently reading the Investors Manifesto (new book by William Bernstein in preparation for joining the passive low expense world of investing (i.e. I fired my broker). It is a great introduction to this approach but in putting together my portfolio I have a few questions I hope some of you could answer: 1) In terms of stock/bond allocation percentages Bernstein noted that the most common rule of thumb is that a bond allocation would be the same as an investors age. One would then adjust this up or down from 0% to 20% depending on ones risk tolerance. He also talks elsewhere about how a retired person has "no human capital left" and thus cannot buy more equities when stock prices fall. My question is when one retires early, s...