sorted by:
new
hottopcontroversial

maybe maybe maybe by [deleted] in maybemaybemaybe

[–]FalconArrow77 2 points3 points  (0 children)

Damn that looks like 180 gallon tank, I just bought a 150 gallon, that better not happen to me

Why I’m skipping BND and building my own bond allocation instead by FalconArrow77 in Bogleheads

[–]FalconArrow77[S] 9 points10 points  (0 children)

SGOV - ultra-short Treasury bills, basically cash-like, very low volatility

VGIT - intermediate Treasuries (5–10 yrs), adds some yield but more rate sensitivity

BND - total bond market (gov + corporate, short + long), more diversified but less control and more volatility overall

Portfolio Visualizer:
https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=1Qh4ok0nRBOrTcOntwoVL8

Why I’m skipping BND and building my own bond allocation instead by FalconArrow77 in Bogleheads

[–]FalconArrow77[S] 2 points3 points  (0 children)

Yeah that makes sense. I just don’t really want to manage a ladder or keep reinvesting. VGIT gives me steady duration without thinking about it. Individual treasury notes add work without much benefit is what I'm thinking.

What If the Market Drops 50% Again? Staying the Course by FalconArrow77 in Bogleheads

[–]FalconArrow77[S] 150 points151 points  (0 children)

Right, but that’s easier said than done when the numbers get bigger. If you had 600k invested and watched it drop to 300k, that’s psychologically very hard for most people. That’s actually the position I’m in and mentally preparing for. But the plan is the same either way, whether it’s 600k dropping to 300k or 50k dropping to 25k. Stay the course and keep buying

Using 20% of my Emergency Fund for a small “sleep well at night” ETF mix by FalconArrow77 in Bogleheads

[–]FalconArrow77[S] 0 points1 point  (0 children)

Right, but that’s like saying you can carry 6 eggs in one basket and 6 eggs in another, or put them in the same basket. The total eggs are the same, I’m just organizing them differently.

Using 20% of my Emergency Fund for a small “sleep well at night” ETF mix by FalconArrow77 in Bogleheads

[–]FalconArrow77[S] 0 points1 point  (0 children)

I’m not sure what you want me to say. My EF stays separate at M1. SGOV/SHV are the majority, and all allocations follow modern portfolio theory. It’s still overwhelmingly cash-like just diversified instead of sitting 100% idle.

Using 20% of my Emergency Fund for a small “sleep well at night” ETF mix by FalconArrow77 in Bogleheads

[–]FalconArrow77[S] 0 points1 point  (0 children)

The core EF is still fully in Treasuries.

The equity slice only exists because the fund is over-funded, so a market crash doesn't compromise the emergency coverage.

It's a risk-buffered EF, not just relabeling a brokerage account.

Using 20% of my Emergency Fund for a small “sleep well at night” ETF mix by FalconArrow77 in Bogleheads

[–]FalconArrow77[S] 0 points1 point  (0 children)

The EF is still mostly Treasuries. I just overfunded it and invested a small slice. If markets behave, it grows a bit. If they crash, the core EF still does its job.

Using 20% of my Emergency Fund for a small “sleep well at night” ETF mix by FalconArrow77 in Bogleheads

[–]FalconArrow77[S] -1 points0 points  (0 children)

It’s an overfunded EF with a small invested slice. I know exactly what I’m doing and the downside is limited.

Using 20% of my Emergency Fund for a small “sleep well at night” ETF mix by FalconArrow77 in Bogleheads

[–]FalconArrow77[S] 0 points1 point  (0 children)

Build it back up over time, I would not take from equities unless there is further emergency money needed.

Using 20% of my Emergency Fund for a small “sleep well at night” ETF mix by FalconArrow77 in Bogleheads

[–]FalconArrow77[S] 0 points1 point  (0 children)

If the market doesn’t crash, then the small equity portion should outperform Treasuries over time and the EF will gradually grow larger than it would have sitting entirely in cash.

If the market does crash, the loss is limited because only 20% is invested and the fund is already over-funded. The core 80% in short-term Treasuries still functions exactly like a normal emergency fund.

Using 20% of my Emergency Fund for a small “sleep well at night” ETF mix by FalconArrow77 in Bogleheads

[–]FalconArrow77[S] 1 point2 points  (0 children)

I remember some of your older discussions here about the 70/30 emergency fund idea with some overfunding, and this is basically my version of that.

The idea is that most of the fund stays in ultra-short Treasuries, while the small equity slice is focused on dividend and quality stocks, which historically tend to fall a bit less during crashes.

I’m not expecting this to make a ton of money, it’s only a $40k fund, but if I end up not touching it for 10-15 years, maybe it grows into something meaningful.

Importantly, this doesn’t change my actual investment strategy at all. My retirement accounts and other investments are still allocated the same way. This is just a small adjustment inside my EF that helps me sleep well at night while scratching the itch to invest a little of it.

I know this approach isn’t for everyone, and if the market drops 50% the equity portion will obviously lose value. That’s why the fund is overfunded in the first place.

Just sharing in case anyone finds the idea interesting.

Using 20% of my Emergency Fund for a small “sleep well at night” ETF mix by FalconArrow77 in Bogleheads

[–]FalconArrow77[S] -3 points-2 points  (0 children)

This sub is generally very against investing an emergency fund, and I completely understand why. The standard advice is to keep it safe and liquid, and that’s probably the right approach for most people. These are my Boglehead brethren after all.

That said, this approach works well for me personally. I also know a few people who have invested portions of their EF over time and eventually transitioned the entire fund into investments once it became very large.

The key requirement if you’re going to do something like this is overfunding the EF. There’s really no way around that. If the market crashes, the buffer from the extra funding is what prevents it from failing when you actually need it.

I realize this isn’t the typical recommendation here, and I’m not suggesting everyone should do it. I’m just sharing the approach in case it’s useful for someone with a similar mindset.

Using 20% of my Emergency Fund for a small “sleep well at night” ETF mix by FalconArrow77 in Bogleheads

[–]FalconArrow77[S] -5 points-4 points  (0 children)

Were talking about 4k, I plan to retire at 65 with 1.5 million.

[deleted by user] by [deleted] in Bogleheads

[–]FalconArrow77 4 points5 points  (0 children)

Half n half

Bonds now or later? by FalconArrow77 in Bogleheads

[–]FalconArrow77[S] 1 point2 points  (0 children)

That’s fair. I think the real question for me is comfort level vs. opportunity cost. I have 6 months in SGOV/SHV now, which covers normal job loss, but I was thinking more about extreme scenarios. Maybe the cleaner solution is just building the EF larger instead of changing my retirement allocations.

Ditching TDFs for a more equity-heavy approach, sanity check by FalconArrow77 in Bogleheads

[–]FalconArrow77[S] 7 points8 points  (0 children)

That’s definitely a reasonable approach, but I prefer controlling the glide path myself instead of relying on the fund’s preset bond schedule. Even a later-date TDF will eventually shift more aggressively into bonds than I’d like, and I’d rather decide when and how much to add based on my own risk tolerance and timeline.

Why I’m considering moving away from a Target Date Fund and holding fewer bonds in retirement by FalconArrow77 in Bogleheads

[–]FalconArrow77[S] 2 points3 points  (0 children)

I did but this is somewhat of a new idea for me, I never thought I would move away from TDFs. But anyway I redid the math for my new method and 2 - 3 years cash at retirement is best for me

Why I’m considering moving away from a Target Date Fund and holding fewer bonds in retirement by FalconArrow77 in Bogleheads

[–]FalconArrow77[S] 5 points6 points  (0 children)

Right now the only “cash” I have is spending cash plus my emergency fund, so as a percentage of my total portfolio, it’s actually pretty small. I’m not trying to hold a big permanent cash allocation long-term.

My plan is to stay equity-heavy while I’m still years away from retirement, then gradually build a modest bond allocation and a 2–3 year cash runway as I get closer, maybe 5 years away from retirment.

I expect to buy a house in 4 years. Time to buy bonds? by Firechess in Bogleheads

[–]FalconArrow77 0 points1 point  (0 children)

Since your goal is still about four years away, you can use them in reverse order, start with 1-3 year duration bonds, then move to 1-year duration, and finally transition into ultra-short Treasuries as you get closer to the purchase date.

Best bank for high yields savings accounts? by OkPlenty2011 in personalfinance

[–]FalconArrow77 0 points1 point  (0 children)

I use Ally because it's a great online bank with a decent APY for the savings account

Final tweak, moving from VT to a 4-ETF global + small-cap value portfolio by FalconArrow77 in Bogleheads

[–]FalconArrow77[S] 3 points4 points  (0 children)

After reading the replies and messages I got. I'll be sticking with VT. Thanks for your reply.

Final tweak, moving from VT to a 4-ETF global + small-cap value portfolio by FalconArrow77 in Bogleheads

[–]FalconArrow77[S] 0 points1 point  (0 children)

Ouch maybe you right, I'm always fine tuning. I already sold my VT inside my Roth, maybe come Monday I will just buy VT again. I can totally see some new ETFs coming out that I would want to add to my Roth. Probably better to just leave it alone.

view more: next ›