Travelwanted
Recycles dryer sheets
As noted in another post, I finally terminated my FA. So I am constructing my AA and breakdown. I'm 43, less than 2 years to ER. Likely have hit FI already. (Yes, that means I am in OMY syndrome.) I'm in 39.6% fed, 6% state tax brackets. And yes, this account is my taxable account. I have only a small IRA and Roth - not enough room to put in the REIT or energy and another IRA through w*rk.
Please give feedback on the following allocation. I'm using Vanguard but am posting only broad sectors. I know in advance this is more than most Bogleheads divide it but after reading Bogleheads Guide it is my conclusion.
60% equities:
60% US large cap
20% International, emerging markets
10-15% small cap
5% REITs
5% Sector funds (i like healthcare and energy)
40% bonds:
40% short-term tax exempt
40% intermediate tax-exempt
5% long-term tax-exempt
15% high-yield tax-exempt (not junk bonds - 90% are rated AAA-BBB)
Not yet retired, I plan to reinvest my bond income. My research says if you re-invest dividends in rising rates environment you come out ahead even in long term bonds.
Thanks.
Please give feedback on the following allocation. I'm using Vanguard but am posting only broad sectors. I know in advance this is more than most Bogleheads divide it but after reading Bogleheads Guide it is my conclusion.
60% equities:
60% US large cap
20% International, emerging markets
10-15% small cap
5% REITs
5% Sector funds (i like healthcare and energy)
40% bonds:
40% short-term tax exempt
40% intermediate tax-exempt
5% long-term tax-exempt
15% high-yield tax-exempt (not junk bonds - 90% are rated AAA-BBB)
Not yet retired, I plan to reinvest my bond income. My research says if you re-invest dividends in rising rates environment you come out ahead even in long term bonds.
Thanks.
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