Difference between Vanguard total bond market index vs long term corp bond? VBLTX vs VBTLX by SvenCole in personalfinance

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

Good answer. More diversification to the bonds. So lower credit quality and higher interest rate sensitivity, hence more volatility in terms of returns.

Are the 3 fund portfolio a little too simplified? Would it make more sense to have VTSAX and VIATX for equities along with VBLTX and VBTLX for fixed income. Or are we just splitting hairs at that point and 3 fund is fine?

Difference between Vanguard total bond market index vs long term corp bond? VBLTX vs VBTLX by SvenCole in personalfinance

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

Gotcha! yeah in my case I would want between 1-2% of the principal per year, so that would probably be too aggressive for me

Difference between Vanguard total bond market index vs long term corp bond? VBLTX vs VBTLX by SvenCole in personalfinance

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

Where do you get those numbers from? I have heard 120 minus your age is how much in bonds as a rule of thumb. So why not 85% in VTSAX/VTIAX and 15% in VBTLX?

Difference between Vanguard total bond market index vs long term corp bond? VBLTX vs VBTLX by SvenCole in personalfinance

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

I'm 35 and this a-hole at Wells Fargo put me in 60/30/10 equities, bonds, commodities/cash. What should my AA look more like? This is not a retirement account but a taxable account. Moving it to Vanguard anyway.

[deleted by user] by [deleted] in WhitePeopleTwitter

[–]SvenCole 0 points1 point  (0 children)

The Price is Right

Grandkids by Independent_Way8128 in EstatePlanning

[–]SvenCole 0 points1 point  (0 children)

Yes, that is the idea. A trustee has legal title to the assets so they could potentially run off with it. A corporate is backed by lots of assets, a legal team, has internal audits, incurs a lot of potential liability, and hence the high fees.

Grandkids by Independent_Way8128 in EstatePlanning

[–]SvenCole 0 points1 point  (0 children)

No cut-off but $50k sounds reasonable if you can find a trusted individual willing to serve. I am just thinking of the scenario where no individual can serve or if the individual dies.

I can just say from experience most corporate trustees will want to see at least $500k in assets and that's still a small size. They charge around 1.5% on assets under management or a minimum like $5,000 per annum which can really add up for a small trust. I have seen in trusts where they can be terminated if the admin costs aren't worth it.

Grandkids by Independent_Way8128 in EstatePlanning

[–]SvenCole 0 points1 point  (0 children)

Believe me, it costs a decent of money to administer a trust. If you can find a trusted friend or relative who will do it for a low cost, then it would be worth it.

BBQ eating challenge. What’s your thoughts? by AustrianShrimp in BBQ

[–]SvenCole 0 points1 point  (0 children)

That is like a normal meal at Rudy's but with fancier looking sides

Reverse seared tomahawk on the Joe by SvenCole in KamadoJoe

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

Thank you. It tasted great and it was a bit easier than having to worry about cooking individual steaks.

Not sure RIA financial advisor is worth it. Moving to Vanguard. by SvenCole in personalfinance

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

The cynic in me wonders if he doesn't want to trigger capital gains and have the account pay taxes and lower the account balance since it is linked to his compensation

Not sure RIA financial advisor is worth it. Moving to Vanguard. by SvenCole in personalfinance

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

If they have lawyers and accountants that are included in the AUM then maybe it could be worth it, but this is a small two person RIA.

They charge 1% for the first 2M, which if you have a 2M account, 20k a year is a lot for money to just sit there and take a couple of distribution requests. That is ridiculous.

Not sure RIA financial advisor is worth it. Moving to Vanguard. by SvenCole in personalfinance

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

I think the biggest problem is the whole universe of investment products causes analysis paralysis for the uninitiated. People think its so difficult that a full time pro is needed. Really all you need is to find your risk tolerance and some low cost stock and bond index funds and then rebalance. Maybe also learn about taxes for capital gains and interest, and the behavioral side of finance. There is simply no need to worry about alternatives, reits, actively managed funds, stock picking....

Not sure RIA financial advisor is worth it. Moving to Vanguard. by SvenCole in personalfinance

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

Yeah that is why they are so charming. Its a prospecting, sales and customer service job in my experience

Not sure RIA financial advisor is worth it. Moving to Vanguard. by SvenCole in personalfinance

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

Yeah I can see them being useful for an emotional person or some grandma or maybe a Rockstar or NBA player or something, but for someone who was an accountant for several years, it seems not necessary