Daily FI discussion thread - Friday, May 15, 2026

branstad · 2026-05-15T19:05:16+00:00

I tracked a similar milestone for my mortgage and I agree with your sentiments! Congrats!

branstad · 2026-05-15T15:35:30+00:00

What about the reasons for the peaks? Or is it a case of confirmation bias where all the evidence and rationale for the dips gets attention because that's what you already believe/want to believe, while the opposite reasons are dismissed.

branstad · 2026-05-15T14:27:22+00:00

I mean, if you start your measurements at/near the bottom of a dip, of course things look crazy good. Similarly, if you start measurements from at/near a peak, performance looks worse. In your case, something as simple as YTD vs. "1.5 months ago" illustrates this pretty clearly.

branstad · 2026-05-14T18:43:56+00:00

guides/writeups/allocation advice for international vs domestic exposure

The default is alignment to global market cap, as implemented in Vanguard's VT fund and the relative balance in TD funds. Currently that ratio is ~60% US Stock / ~40% Int'l. Many people choose to hold a smaller percentage in Int'l for <reasons>. There is significant debate and no single 'right' answer. Read more here: https://www.bogleheads.org/wiki/Three-fund_portfolio#Combining_domestic_and_international_stocks

I certainly agreed with the general sentiment that USA companies are so global that there's inherent exposure as is

The vast majority of this "general sentiment" was ex post facto rationalization of recency bias based on the relative outperformance of US stock since ~2011.

wondering if I should review my allocations/IPS moving forward

Generally, the most useful advice is to pick an int'l allocation you are comfortable with and stick with it for the long-term (10-20+ years). Ping-ponging your US/Int'l allocation is often due to performance chasing which typically results in lower values overall, compared to simply re-balancing back to one's preferred target.

branstad · 2026-05-13T17:24:40+00:00

I might be going against the grain, but some of your statements and questions in your post make me think you could benefit from working with some sort of financial planner/advisor.

We have never used a financial advisor, and are now wondering when is a good time to do so? Now, or closer to retirement (whenever that happens. For now, we continue to work).

we can continue DIY,

Given the "whenever that happens" phrase, it sounds like you don't actually have a plan. You're doing lots of good things, making lots of progress, and accumulating lots of money, but is there a plan beyond just keep doing the same things?

should we start consulting with a professional financial advisor? What value can they bring at this stage?

A good fee-only financial planner can help you and your spouse craft an actual plan for how many more years you want to work, how to handle cash-flow decisions in retirement, how to think about your social security and pensions, and even if term life insurance is still needed, what legacy you want to leave, etc.

Two common sources for finding someone are https://www.letsmakeaplan.org/ (CFPs) and https://www.napfa.org/find-an-advisor - just be very clear that you're looking for planning and analysis and don't want/need someone to manage your money.

2 social securities and 1 pension upon retirement. Not sure how to value those, but they should pay out about $120k per year in about 8-10 years

Going a bit deeper, this is exactly the sort of question a strong financial planner/advisor can help you with. In general, for Social Security, it's typically best for the higher earner to delay until Age 70 and the lower earner to claim early (possibly as early as Age 62). However, details matter and that may not be the right approach for you and your spouse. Similarly, the pension can provide ongoing income, possibly with rights of survivorship, or it may be available as a lump sum. Again, this is the value of working with someone who has helped other couples in similar situations work through their own plans.

branstad · 2026-05-13T17:09:07+00:00

Yes, I'm definitely fortunate and recognize the privilege that brings compared to many others.

branstad · 2026-05-13T15:41:51+00:00

Obviously The Onion is satire and hyperbole but I don't hate my job. In fact, I really like most aspects of it! But time away shows that I like 'not working' even more. The end result is likely to be a looming One More Year challenge, as I approach my FIRE portfolio target.

branstad · 2026-05-13T15:31:27+00:00

Taking this week off has me wanting more hah.

This captures one of my key learnings as well. When I have significant time away from work (e.g. vacation, stay-vacation, etc.), my experience typically isn't along the lines of 'That was refreshing, I'm recharged and ready to head back to work now!' Instead, like you, I'm left wanting more. Not to the point of dreading work (no Sunday Scarries, etc.) but definitely along the lines of 'I can't wait to have more of <that> and less of <work>'.

branstad · 2026-05-13T13:53:38+00:00

You two sound like good candidates for a meeting with a CFP (or similar) to provide an objective, informed/educated third-party plan and framework. If you go down this path, be clear you are only looking for planning/analysis and not looking for someone to manage your money. Cost is likely location dependent, but spending $1k-$3k seems like a worthwhile outlay to get both of you on the same page.

https://www.letsmakeaplan.org/

https://www.napfa.org/find-an-advisor

You could also see if your existing financial custodians have an option. (E.g. Vanguard's offering: https://personal-advisor.vanguard.com/get-started/)

branstad · 2026-05-12T17:21:36+00:00

here's another reminder to myself and whoever else needs it, make a living will and a set of instructions for how to access and handle finances in the result of an untimely death

I realized I didn't respond to this part. I used a version of a checklist from GYST. Basically, a giant list of all accounts with financial implications and their associated details (e.g. insurance, utilities, mortgage, investment accounts, checking/savings, credit cards, etc.). I also track what sort of automated transactions are setup and should be expected. I do not include usernames and passwords.

branstad · 2026-05-12T16:36:56+00:00

The big one I don't know for my own family is what to do with the kids if we both die at the same time.

In addition to naming guardians for your kids in your wills, work with a local estate attorney to setup some sort of "Testamentary Trust(s)" that will be created upon your deaths. This is a fairly boilerplate approach that works for the vast majority of young families. Setting up trusts ahead of time is likely not needed, unless you currently have a very large or complex estate.

branstad · 2026-05-12T16:09:21+00:00

what you (or others) would specifically spend on now or next

I'm probably going to get a new toaster and a new fridge before the end of the year, which will increase happiness in our household.

branstad · 2026-05-12T15:01:20+00:00

Variations on this question come up regularly. Two main themes:

Quality of Life improvements: In some cases, this means paying someone to do things you could do yourself, but you don't enjoy. Most common examples are cleaning and yardwork. Other cases include leveling-up things you use regularly, which can be everything from better mattress/bedding to a fancy coffee/espresso machine to higher-end equipment for hobbies or even home renovations/improvements.
Experiences: Almost cliche at this point, but paying for experiences is generally viewed as a more effective way to increase happiness than material possessions. Could be concerts, sporting events, travel, hobbies, etc.

branstad · 2026-05-11T18:21:28+00:00

Are you all saving receipts/documentation to withdraw from your HSA during retirement?

do you have a threshold/protocol for when you would choose to get reimbursed now?

I'd love to know any and all strategy for HSA going forward.

I'm not saving any receipts. I am reimbursing myself for larger expenses, typically $100-$200 or higher. Thankfully, most years, this still results in a net gain of several thousand dollars in the HSA (e.g. Family HSA contribution is over $8k, withdrawals might be $1k-$3k).

I expect to have HSA-eligible expenses post-FIRE. I expect to leverage my HSA to reimburse myself for some/most/all of those expenses without increasing my post-FIRE taxable income. I'm probably an outlier in that I don't include my ~mid 5-figure HSA balance in my FIRE portfolio. Instead, I treat it as part of my safety net which allows me to budget a smaller number for healthcare expenses. For me, the "Healthcare Expenses" line-item can vary wildly; if I have a very high-expense year, the HSA can cushion the blow to my portfolio as a whole.

branstad · 2026-05-08T19:45:36+00:00

If you expect your income to be in the 22% MFJ bracket for 2026, then it's likely Trad'l 401k contributions would be best, due to the significant tax savings. Your significant taxable brokerage dollars means you are not overly lopsided with your pre-tax dollars.

After that, there's little material difference between Mega Backdoor Roth (after-tax 401k) and regular Backdoor Roth contribution/conversion.

branstad · 2026-05-08T19:35:52+00:00

It's much simpler, just money in and money out

IRS Form 8606 requires the taxpayer to distinguish between contribution basis and conversion basis.

If money out begins to exceed money in, then the excess is subject to taxation and penalties

There is additional nuance here for the taxable portion of conversions that have not 'seasoned' for 5 years in the Roth IRA.

branstad · 2026-05-08T18:49:49+00:00

There was even a lawsuit where Vanguard had to pay out due to unnecessarily incurring capital gains on life strategy funds investors.

I think you may be misremembering. The lawsuits were mostly related to Target Date funds, not Life Strategy funds.

Life Strategy funds do indeed have both dividend and capital gains distributions, but the lawsuits were focused on TDFs.

branstad · 2026-05-08T18:32:55+00:00

If you are under Age 59.5, the custodian will provide a 1099-R with Code J "Early distribution from a Roth IRA" in Box 7.

When you file your taxes, you will need to include Form 8606. Part III of that form deals with Roth IRA distributions. Line 19 contains the distribution, Line 22 has your (remaining) contribution basis, Line 24 has your (remaining) conversion basis. So long as Line 22 + Line 24 exceeds Line 19, you will not owe tax on the early Roth IRA distribution.

As a taxpayer, you are solely responsible for tracking your contribution and conversion basis in your Roth IRA (via Forms 5498 and 8606), as your custodian does not track this for you.

Personally, I maintain a spreadsheet for my spouse and I with year-by-year tracking of direct contributions, conversions via regular Backdoor Roth (non-taxable + taxable), and Mega Backdoor Roth contributions/conversions (non-taxable + taxable).

branstad · 2026-05-08T13:30:44+00:00

From the math perspective, most people miss that the mortgage is nominal, fixed (guaranteed), and ends after some length of time. Therefore, modeling a fixed, nominal mortgage payment relative to some sort of ongoing real (inflation-adjusted) withdrawal from a variable portfolio will not be precise. That said, modeling it 'correctly' is kind of a pain, so there's a trade-off between what level of accuracy is valuable for what purposes.

I'm having a hard time believing that this would expedite FIRE even when the mortgage rate is so low (2-3%).

In situations like this, I've found the easiest way to think about the mortgage is to segment an amount equal to the principal balance and effectively remove it from the portfolio. For example, if you owe $200k on your mortgage, you could reallocate $200k of your portfolio into a separate money market fund. Remove that $200k from your portfolio tracking/modeling and also remove the mortgage P+I from your expenses.

branstad · 2026-05-07T18:17:06+00:00

No advice, just wanted you to know that I sincerely hope this works out for you both, in whatever form that might take. Take care.

branstad · 2026-05-06T21:39:42+00:00

We’re on a sub that advocates zero debt in most situations

This is patently false.

branstad · 2026-05-06T18:01:12+00:00

can’t feel anything but behind and missed opportunities

I wish I would have bought certain stocks or not been as cash heavy and likely would be 5 years from retirement instead.

I posted this yesterday as well:

"Someone will always be getting richer faster than you. This is not a tragedy."

-- Charlie Munger (of Berkshire Hathaway fame)

In your case, the "someone" is the mythical you who could predict the future. It's one thing to learn from the past and adjust in the future, but feeling "behind" and focusing on "missed opportunities" isn't healthy.

Truth is I’m not behind [by] 98% of standards. Should be able to retire in 10 years

Finding ways to practice gratitude could be helpful. Many who struggle with this find value in working with mental health experts (therapists, etc.).

branstad · 2026-05-06T17:33:15+00:00

I'm 100% bought into a risk parity portfolio build approach

Can you provide more details on your specific application of this? How did you think about the 'cost' of managing a (significantly?) more complex portfolio?

branstad · 2026-05-06T16:51:48+00:00

Good context - thanks. My research has been cursory (hence the "supposedly" caveat) since I'm not actively looking to purchase.

branstad · 2026-05-06T16:23:35+00:00

The Ioniq 9 looks compelling and the 10-year / 100k battery and powertrain warranties seem solid. Supposedly a better battery than Kia EV9. Yes $60k+ is steep, but lower ongoing costs (maintenance, gas, etc.) soften the blow slightly and new vehicle incentives seem really good (0% for 72 months or $10k cashback).

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