Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 10-15-2007, 06:48 PM   #21
Recycles dryer sheets
 
Join Date: Nov 2005
Posts: 152
Quote:
Originally Posted by brewer12345 View Post
If you can't stand not tracking the markets, then clearly you should reshuffle.

But on a fundamental basis, banks are dirt cheap and now have a gigantic tailwind in the form of the fed cutting rates.
I do agree that banks are extremely cheap and will eventually post some great returns. The reason I want to rebalance is because Ive come to realize, for better or worse, that being concentrated in a few stocks will not obtain as steady results as I broadly diversified portfolio. Currently I can stand not tracking the market but as my portfolio grows I am not so sure.

Figner,

I really don't see how the various experts say putting bonds and such in a roth is a good thing. It seems to me you would want your non taxable accounts to have the most growth simply because they are not taxable. I will have to run a few scenario's on this in the future. As for my tax situation - I have never pay much in taxes. Six months of my income this year will be tax free leaving me in the extremely poor basket according the government. Of course that doesn't include capital gains.

ats5g,

I have actually never participated in the TSP. My old justification for this was, "Cant withdraw it until I am OLD." Probably not the smartest thing but I have come to enjoy having freecash flow.

clifp,

I would be extremely bored with a 3 fund portfolio. This is precisely what led me to not indexing my portfolio a few years ago. That is the reason if I index I would probably use many more funds than is really needed - It keeps me interested!


Thanks everyone for the responses. You guys have given me much to think about while I am deployed in the near future..
__________________

__________________
trixs is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-15-2007, 08:07 PM   #22
Administrator
Gumby's Avatar
 
Join Date: Apr 2006
Posts: 10,164
You want your real growers in your taxable accounts because when you take profits, they are in the form of capital gains, which, if long term, are taxed at a lower rate than ordinary income. Everything you take out of a tax deferred account, such as an IRA or 401k, is taxed as ordinary income, even it was the result of capital appreciation rather than dividends. By contrast, you want your dividend stocks in the tax deferred accounts so that you can pay the taxes after you retire and are presumably in a lower tax bracket.
__________________

__________________
Living an analog life in the Digital Age.
Gumby is online now   Reply With Quote
Old 10-16-2007, 08:14 AM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 7,446
Quote:
Originally Posted by trixs View Post

clifp,

I would be extremely bored with a 3 fund portfolio. This is precisely what led me to not indexing my portfolio a few years ago. That is the reason if I index I would probably use many more funds than is really needed - It keeps me interested!

I have 5 funds that account for 90% of my portfolio. The other 10% is in individual stocks. That gives me a little hands on play and keeps me from being bored with my investments. BTW, I use this money to buy beaten down stocks like your financial's.
__________________
Retired 3/31/2007@52
Full time wuss.......
Dawg52 is offline   Reply With Quote
Old 10-16-2007, 01:40 PM   #24
Full time employment: Posting here.
tightasadrum's Avatar
 
Join Date: Aug 2006
Location: athens
Posts: 802
clifp,

Funny how things play out, but I have been flirting with BUYING some financial stocks because they ARE down. But I'm glad I didn't have to ride it down this year. The yield on these are very appealing to me right now.

BTW, I like your AA plan percentages, although I might adjust the domestic/foreign stock % slightly toward foreign. The currency movement favors that at the moment I think.
__________________
Can't you see yourself in the nursing home saying, " Darn! Wish I'd spent more time at the office instead of wasting time with family and friends."
tightasadrum is offline   Reply With Quote
Old 10-16-2007, 03:19 PM   #25
Full time employment: Posting here.
 
Join Date: Oct 2007
Location: Willamette Valley, Oregon
Posts: 831
Quote:
Originally Posted by trixs View Post
I have actually never participated in the TSP. My old justification for this was, "Cant withdraw it until I am OLD." Probably not the smartest thing but I have come to enjoy having freecash flow.

clifp,

I would be extremely bored with a 3 fund portfolio. This is precisely what led me to not indexing my portfolio a few years ago. That is the reason if I index I would probably use many more funds than is really needed - It keeps me interested!
Does the TSP provide any employer match? If so, you are missing out on free money there.

As to bored with a 3 fund portfolio, that likely means you wouldn't stick with the plan, and that's not good.

I would NOT go with 10-12-15 funds just to alleviate boredom. If boredom is going to be your problem, I would construct a portfolio of perhaps 10-12 individual stocks along with maybe 1 bond fund for bond portion of allocation. That can give you adequate diversfication, as well as adequate "non-bordomness". You can spend your time choosing the stocks to spread out investment by industry, by cap size, by growth /value orientation, and by whatever other criteria suit your fancy.

10-15 funds just seems pointless, probably lots of duplication among funds (making it harder for you to know what you really have in your portfolio), they all have the extra layer of admin expense stocks don't have, and then after choosing the 10 or 15 you get bored again and start trading funds (not really the point of funds, IMHO).
__________________

__________________
Dreams Worth Dreaming are Dreams Worth Planning For. I Spent a Career Planning for Early Retirement.
RetireeRobert is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Financial Road Warriors - How to manage your portfolio while on the road Billy Life after FIRE 38 07-20-2007 04:44 PM
Open a Roth...? SlowTwitcher FIRE and Money 6 02-01-2007 04:07 PM
i cannot get this web page to open zuki Other topics 0 04-20-2005 12:14 PM
New open season and funds for TSP newellcr FIRE and Money 1 02-23-2005 10:58 AM
MIT Open University Hyperborea Other topics 8 01-06-2005 06:37 PM

 

 
All times are GMT -6. The time now is 11:16 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.