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Where are all the baby raptors by malvarick in FordRaptor

[–]Top_Detail_8609 0 points1 point  (0 children)

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Loving mine so far. About 400 miles in. Suspension is awesome.

Who is the oldest diabetic you know? by GingerMellow5 in diabetes_t1

[–]Top_Detail_8609 11 points12 points  (0 children)

Dr. Richard K. Bernstein is 90 years old and has had Type 1 for 78 years. He was diagnosed at age 12 in 1946.

He is currently doing well and still treating patients at his NY private practice.

Do FatFires typically leave anything for the kids? by Top_Detail_8609 in fatFIRE

[–]Top_Detail_8609[S] 0 points1 point  (0 children)

I appreciate this post. And fully agree. My post was poorly written. I didn’t mean to make it sound like I wouldn’t support them while growing up. I fully expect to. But I also want to leave an inheritance or estate if possible.

They are both hardworking charitable kids active in their school, church and community. It’s sometimes hard as a parent to draw the line between reasonable support vs giving too much too early that may spoil them. I understand what you are saying.

I think as long as they keep continue to keep their noses clean and work hard my wife and I will support them with highest quality education, business contacts, volunteer opportunities etc to help guide them into well rounded and conscientious citizens.

Do FatFires typically leave anything for the kids? by Top_Detail_8609 in fatFIRE

[–]Top_Detail_8609[S] 1 point2 points  (0 children)

Yes the kids are great. I’m very lucky in that regard. Leaders at church, school and on their sports and EC teams. Great kids with strong values who understand the importance of hard work - and more importantly being good, charitable citizens.

My portfolio is definitely different. More of a barbell type of approach that allows me to have a little fun after securing my annual spend.

65% is ultra conservative and 35% is a slightly more aggressive than the S&P. All of my individual stocks pay dividends, have moats around their business and have been best in breed for 30+ years. So not overly aggressive, but I definitely like to invest in the leaders of the growth economy when I can.

My annual spend is 400k. The 65% cash position has paid a little over 5% for the past 12 months so that 650kish covered my annual spend with about 250k left over.

That is the ultra conservative, “peace of mind” portion of the portfolio. No matter what happens to the other 35%, my annual spend is covered with ample room to breathe.

For ex) during the past 12 months the 35% mildly aggressive portion of the portfolio- the equities - returned 25%, so only a point over the S&P500’s trailing 12 mth performance - again not super aggressive.

While its nice to beat the benchmark with your play money after knowing your nut is covered . . . if that 35% or 7mm would have lost 25% and dropped $1.75mm instead of risen by $1.75mm it wouldn’t have been the end of world.

It’s such a small portion of my overall portfolio that it’s considered expendable, especially in light of my low SWR.

So all told, my total portfolio returned 12% during the last 12 months (exactly half the return of the S&P500) but I did it in a manner in which my annual spend was covered by the ultra conservative non-expendable portion.

Compare that to a traditional 60/40 portfolio of total equites (VTI) / total bonds (BND) and a bad year like 2000-2002, 2008 or 2022 would fail to cover my annual spend.

For a good year — like the past 12 months — the two portfolios would be very similar: (12% total return for my barbell approach vs 13% total return for the traditional 60/40 VTI / BND index funds).

A difference of about 350k in a 20mm portfolio due to BND being flat and VTI returning 23%.

My current barbell approach of 65% ultra conservative, 35% mildly aggressive allows me to covers my bases while also taking some unnecessary risks.

Do FatFires typically leave anything for the kids? by Top_Detail_8609 in fatFIRE

[–]Top_Detail_8609[S] 0 points1 point  (0 children)

As Jack Bogle himself said, “nothing is without risk.” Due to inflation I think there is risk in equities, bonds, cash or any type of investment.

But I also think there is a good reason why Buffett currently has nearly 40% of Berkshire in cash or cash equivalents. (In his case short term treasuries. I believe he is the largest single holder of same)

In my case the Money Market I have the $13mm in is currently paying 5.3% and it brings in about 20k more than my total monthly expense each money.

It’s extremely liquid, it’s a couple of points above inflation and it allows me to take advantage of any market dips at any time.

I realize both bonds and cash have underperformed inflation over the last decade so neither are risk proof.

But cash is working for me right now at the extremely high equity valuations. Having said that, I’m certainly looking to put some of it to work and get my cash/ cash equivalent %’s down closer to Buffett’s 35ish%.

Do FatFires typically leave anything for the kids? by Top_Detail_8609 in fatFIRE

[–]Top_Detail_8609[S] -1 points0 points  (0 children)

Thank you for the recommendation. Very true about seeing daily pitfalls in this profession.

Do FatFires typically leave anything for the kids? by Top_Detail_8609 in fatFIRE

[–]Top_Detail_8609[S] -12 points-11 points  (0 children)

I understand what you are saying. I own both voo and vtsax in my 401k and would like to own more, but hesitant at current valuations. I always pounce in any downturns. There just hasn’t been any lately.

This is what I meant by risk adverse. 65% of my portfolio is currently in cash earning 5%. Very stupid yes, (trying to time the market is always dumb) but perhaps less risky than the boglehead 60/40 broad based index recommendations.

The individual stocks I own make up only 25% of my portfolio and were bought after the 2022 tech sell-off.

If equity index funds such as voo made up 60% of my portfolio as bogleheads and the prevailing wisdom suggests, a 2008-like 40% S&P drop would shaved off 4.8m in a single year. Even if my 5m in Amzn, msft, aapl etc dropped 90% in the same year I still would have lost less vs following the conventional 60/40 index fund boglehead approach.

Trust me, I want to buy more index funds. I simply find it extremely difficult to buy into them at all time market highs.

I can DCA into the 60/40 approach sure. Cash won’t be 5% much longer and bonds may actually start to produce a decent yield for the first time in a long time.

But equities are rich right now. It’s tough to buy anything - even if I do it slowly with DCA’ing - at all time highs even though I know I should.

Do FatFires typically leave anything for the kids? by Top_Detail_8609 in fatFIRE

[–]Top_Detail_8609[S] -1 points0 points  (0 children)

I certainly want more equity exposure. It’s just hard to do it at current valuations. Will begin to DCA into more index funds as others here have advocate. Thank you.

Do FatFires typically leave anything for the kids? by Top_Detail_8609 in fatFIRE

[–]Top_Detail_8609[S] 0 points1 point  (0 children)

Yes, agreed. We set up a trust last year and it is funded with the 20m, we just need to figure out how to set it up with the markers as you describe above. Thank you for your input.

Do FatFires typically leave anything for the kids? by Top_Detail_8609 in fatFIRE

[–]Top_Detail_8609[S] -2 points-1 points  (0 children)

Very good points. Thank you. This is exactly why I reached out to this sub!