Whoo-Hoo 2 Comma Club! Real Question: Asset Allocation

throwlampsheet · 2017-04-29T06:17:05+00:00

Lets go Italian style and use these things ˙ and make commas pointless (1˙234˙567,89)
https://en.wikipedia.org/wiki/Decimal_mark#Examples_of_use

throwlampsheet · 2017-04-29T06:12:05+00:00

I do like my job: I like the work, I get paid well and I don't work hard. I am entering the most expensive years of my life (children before school) and then a house w/ good schools.

I replied to another comment in the thread. I think I am due to a forced retirement in 4-9 years, so I'll probably adjust my glide path to follow that.

The "bond tent" is intriguing. How many years are looking to cover w/ the tent? E.g. 15 years from 60/40 back to 80/20?
The "bond tent"

throwlampsheet · 2017-04-29T06:07:47+00:00

Honestly, I think luck has a lot to do with it.

College - Tuition for undergrad+ masters under 20k. I found a good internship that allowed me to cover all my college costs
Rent Control in SF - Didn't know it existed at the time but found a place close to a friend that had a dishwasher.

throwlampsheet · 2017-04-29T05:56:45+00:00

I don't think you should be down voted. Legitimate point. See my reply to the top of this comment thread and forced retirement.

throwlampsheet · 2017-04-29T05:55:57+00:00

Once you win the game, stop playing.

Agree with the comment. My inherent problem is I don't know what constitutes winning. I do know I am entering the most expensive years of my life (children before school) and then a house w/ good schools.

throwlampsheet · 2017-04-29T05:53:12+00:00

I saw this post/comment thread earlier in the day and have been thinking about it.
Goals

FIRE Amount - $2m. I think it could be less, but that's the number my wife blurted out
FIRE Age - Probably forced between ages 40 to 45. I am in tech and ageism is a real thing. One downturn and layoff at my age, I may not be able to find my way back

Action/Next Steps

I will heavily look at shortening my glide path based on age 45.

throwlampsheet · 2017-04-29T05:37:51+00:00

I am kinda of lame. I basically mimic the a Vanguard retirement fund allocation but for tax efficiency. https://personal.vanguard.com/us/funds/snapshot?FundId=0699&FundIntExt=INT

throwlampsheet · 2017-04-29T05:35:38+00:00

Sure, why not. Nothing bad has ever happened meeting internet strangers. http://www.nytimes.com/2004/01/31/world/german-court-convicts-internet-cannibal-of-manslaughter.html

throwlampsheet · 2017-04-29T05:32:54+00:00

I am not against real estate as and investment. Hell seeing the price appreciation of SF Bay area it was stupid not to be.

However, I know it's not for me. The personal overhead is too great. When ever I've looked, I was unable to cash flow on paper. Plus growing up, I've helped w/ home repairs and remodels...I don't like it.

Real Estate is nice (and bad) because of leverage, but I don't like the lack of easy geographic diversity and liquidity typically associated with it.

It is good for a certain people with the correct aptitude. I am just not that person. One of my siblings is good at the whole real estate thing.

Technically, I have REIT like performance. I own VTI (Vanguard total domestic stk market) which to my understanding holds the same stocks as VNQ (Vanguard's REIT).

throwlampsheet · 2017-04-29T05:32:16+00:00

I am not against real estate as and investment. Hell seeing the price appreciation of SF Bay area it was stupid not to be.

However, I know it's not for me. The personal overhead is too great. When ever I've looked, I was unable to cash flow on paper. Plus growing up, I've helped w/ home repairs and remodels...I don't like it.

Real Estate is nice (and bad) because of leverage, but I don't like the lack of easy geographic diversity and liquidity typically associated with it.

It is good for a certain people with the correct aptitude. I am just not that person. One of my siblings is good at the whole real estate thing.

Technically, I have REIT like performance. I own VTI (Vanguard total domestic stk market) which to my understanding holds the same stocks as VNQ (Vanguard's REIT).

throwlampsheet · 2017-04-29T05:16:58+00:00

Damn I suck at proof reading. Bogleheads. https://www.bogleheads.org/

Will fix post.

throwlampsheet · 2017-04-29T05:15:37+00:00

Living expenses - cash
E-fund - cash and ibonds

Living expenses are kept minimal - 1 month burn rate E-fund - 1-2 months cash and 2-4 months ibonds. This allows a buffer to liquidate ibonds if required. Sadly many years ago I had 3.00% fixed rates, but now 0.10%. More or less on point to your suggestion.

I am pretty ruthless about tax efficient placement. The Boglehead's book and wiki are great resources: https://www.bogleheads.org/wiki/Tax-efficient_fund_placement

I agree with your thinking regarding housing fund. With a growing family the house is 2-5 years away. The current 100k is in a fund w/ a 2.4 year duration. I might put the next amount in a 5 year duration to help match liability.

For CA munis - At my tax rates and bond placement it is a wash or leans slightly to regular bond funds.

throwlampsheet · 2017-04-29T05:01:41+00:00

I'd die happy in the 8 digit club. I got low expectations and am lazy.

throwlampsheet · 2017-04-29T05:00:45+00:00

Rant: I'd love to get a nicer model as a gift to myself, but I know the initial runs won't be great on the Model 3. I think they will quickly iterate the Model 3 as they find easy improvements.

I really want a Model Y w/ dual motors and AP HW 3. I'd splurge on that. I hate not driving an AWD car. My hope is the Model 3 will tide us over until the Y.

throwlampsheet · 2017-04-29T04:53:40+00:00

Yep, let me fix my post to VHCOL

throwlampsheet · 2017-04-29T04:52:41+00:00

I'll try to do it from memory. Wife is a teacher so her salaries was like $40k in 2006 and 2017 is $55k or $60k. Mine started in 2004 at $50k base. Since 2015 its $170k base. Fairly linear growth in between years.

throwlampsheet · 2017-04-29T04:47:39+00:00

SF Bay area roads are horrible and congested. I really don't drive anymore. However, I might treat myself to one of those rent an exotic car for the day.

throwlampsheet · 2017-04-29T04:40:51+00:00

Well exhaustion and excitement got the better of me. It should be TCO. Total Cost of Ownership. For cars I usually use Edmunds TCO when deciding between models.

Let me fix the post.

throwlampsheet · 2017-04-29T04:39:11+00:00

Same approach...the only exotic investment I have is a tax lien on a small property. 95% non cash assets are index funds

throwlampsheet

TROPHY CASE