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I think I figured it out. Its really not that complicated RIGHT now, eventually I will need tax planning when I take more money or get the rest of the trust and my Father's estate. Thanks
Last edited by stevemorse; 12-25-2014 at 05:19 AM..
With no dependants / heirs it would be easy to make an argument that there is no real reason to throttle down your exposure to riskier sectors / funds. Unless you have some crazy expensive tastes / hobbies or a desire to live in some "wait on me hand & foot" type continuing care facility there is almost no way to outlive your dough. Toss in the pile you are looking to get from pops and this is almost silly to not "let it ride"...
Of course if you do want to live in a Paris or Rome for someplace exotic for a decade or so it might make sense to move things to some ultra- conservative mix and keep your expenses to just the cash it throws off.
There is really nothing wrong with letting a Vanguard rep make some suggestions and the fact is that even the most hotshot hedge fund oriented / high net worth type advisor will be hard pressed to gin up returns of much fatter than 5% with any consistency.
On the other hand with $5M even 2.5% (which ought to be possible with little risk) throws off $125k forever and ever... Hard to feel bad about that!
I would guess that the mental aspects of managing your investments has been kind of fun aspect of your life -- why not treat a few hundred grand as your own "sandbox" to try to get returns as high as you dare. Odds are that will either show you can keep out-smarting conventional wisdom or teach the harsh lesson of "returns reverting to the mean"...
I re read this and your the only one who really got what I was saying. Its all set already and I only need to change a few more little things. The bulk was done to get a bit more balanced. As far as tax, im only taking 105 K or less so I don't have to worry about that right now. I am going to dump the pespi and first energy and get the fund instead and keep the Roth alone for now. I think people are making this more complicated , cant really chose for me, and I explained myself like crap. I got it now and thanks for YOUR insight. Your the only one who could figure out my crazy bad logic.
With no dependants / heirs it would be easy to make an argument that there is no real reason to throttle down your exposure to riskier sectors / funds. Unless you have some crazy expensive tastes / hobbies or a desire to live in some "wait on me hand & foot" type continuing care facility there is almost no way to outlive your dough. Toss in the pile you are looking to get from pops and this is almost silly to not "let it ride"...
Of course if you do want to live in a Paris or Rome for someplace exotic for a decade or so it might make sense to move things to some ultra- conservative mix and keep your expenses to just the cash it throws off.
There is really nothing wrong with letting a Vanguard rep make some suggestions and the fact is that even the most hotshot hedge fund oriented / high net worth type advisor will be hard pressed to gin up returns of much fatter than 5% with any consistency.
On the other hand with $5M even 2.5% (which ought to be possible with little risk) throws off $125k forever and ever... Hard to feel bad about that!
I would guess that the mental aspects of managing your investments has been kind of fun aspect of your life -- why not treat a few hundred grand as your own "sandbox" to try to get returns as high as you dare. Odds are that will either show you can keep out-smarting conventional wisdom or teach the harsh lesson of "returns reverting to the mean"...
it will be all about the budget. it may be tough to impossible to keep expenses to what is generated depnding what is being spent if we get an extended downturn or even just a severe downturn. with interest rates this low and expected to hold fairly low for quite a while there may be no way around hitting principal.
planning around spending income only, rarely works out well if you are dependant on that money to pay all your expenses. sequence risk even with interest rates having negative returns usually upsets those kind of plans. we hsve been having negative real returns for years now on intermediate term bonds and cash after inflation and taxes..
Last edited by mathjak107; 12-25-2014 at 06:38 AM..
Well I over budget about 15 thousand extra. I really only needed 85 with taxes and everything. So I wont need 105 K unless the bomb hits. I can find ways to live real cheap. I have no debt at all. However taxes and insurance are the big ones. You know I live in NJ and I can always downscale to Fl. in a trailer !! I don't want but the best news for my portfolio would be to move to another State! MERRY CHRISTMAS TO YOU ALL AND THANKS AGAIN.
Last edited by stevemorse; 12-25-2014 at 09:14 AM..
I have already done this and then I get the sales pitch from these people to buy a 1 million mix of crap with them picking the same crap that I could have done and they get 10 grand for it. No way I have had enough of so called financial advisors especially the sharks in NJ. I would do just as well w/ senile old Dad! Most of the foundation of this is already set anyway. I just wondering really about the IRA's the most. Most of the changes were minimum except that bond.
Funny people are so adverse to paying for others to help them and would rather get free advice or try to figure it out on their own. Chances are it's going to cost you in the end. Your friends at Vanguard have said that an advisor can be worth as much as 1.5-3% annually net of fees.
Funny people are so adverse to paying for others to help them and would rather get free advice or try to figure it out on their own. Chances are it's going to cost you in the end. Your friends at Vanguard have said that an advisor can be worth as much as 1.5-3% annually net of fees.
I am not adverse to paying. If you notice I offered to pay anyone, even just a regular person in my other thread. I just have now an idea of what im doing. Thanks and if you know someone or someone is a whiz kid im all up for paying! What the hell else I got to spend money on, I live cheap!! Ohh that thread above, now that's not a paid advisor, that was sharks who wanted 1 million dollars to pick my stuff and invest it and make 10 grand. I already have a portfolio set up and don't need to switch to a wealth management company. I could always use a paid 1 hour of advise. Big difference.
Last edited by stevemorse; 12-25-2014 at 11:20 AM..
All I was looking for was someone to say, especially on the Roth bonds are good or bonds are stupid. BUt obviously you cant answer that without knowing the whole monster portfolio and not just whats in the roth. Im sorry, my ignorance and learning this all new has caused me to ask a stupid question.
I agree with the post that said to leave everything be as is for now. In your finacial situation you can afford to take some risk woth more equity. What you can do is make your taxable portfolio tax effecient and make sure you hold bonds in tax deferred accounts and equity in taxable accounts because interest income from bonds is taxed as ordinary income whereas dividends and cap gains are 15%. That may be what your rep is steering you into as well. You can ask him his ratonale. Also they have financial professionals with CFA who can educate you about why their recommendations are a good thing. Simplyfying a portfolio is not an end in itsef if it is yeilding a good return.
We just rolled over a portfolio to roth and we chose the international bond index. It has been doing well and having international bonds for a diversified portfolio is a good thing. What percentage of your entire portfolio is it?
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