shasta
Recycles dryer sheets
My CFA did mention getting a 401K for the bond allocation.
I can't speak for others, but I certainly am. According to my records, I have added about $60k in new investments into the bond and fixed income portion of my portfolio while selling a net of about $50k in stock mutual funds.YTD S&P +21%; Long term Inv Grade corp -6%.
Assuming $2mm, and 50/50 allocation, you'd need to sell $130k stock and add to bond to get back to 50/50.
Is everyone rebalancing now?
This is usually only a problem with a new taxable portfolio. After a year or so, rebalancing usually only incurs long-term capital gains if you are not adding to your portfolio. And if you are adding - you can direct contributions to the undervalued assets rather than selling the overvalued ones.This is my first year - but I look forward to rebalancing in August 2014.
I personally wouldn't want to do it < 1 year and pay short term gains taxes. (or am I missing something there)
We also maxed out both our 401k's (limited by "non-discrimination testing") and TIRA contributions (not eligible for Roths at all) most of our working lives, but we saved about 3 times that amount which forced us largely into taxable. Would have deferred more, but laws prohibited same.Just a curiosity question if some don't mind elaborating: Several on this thread have mentioned that most of their assets are in taxable accounts. Just wondering how you got there. I have most of my assets tax-deferred. I max out 401k and IRA contributions (which is almost 30k/year), then if anything's left, put it in taxable, but it's always less than my tax-deferred contributions. I always thought this was the "typical" scenario for LBYMers, but I know there are other roads to Dublin.
Just a curiosity question if some don't mind elaborating: Several on this thread have mentioned that most of their assets are in taxable accounts. Just wondering how you got there. I have most of my assets tax-deferred. I max out 401k and IRA contributions (which is almost 30k/year), then if anything's left, put it in taxable, but it's always less than my tax-deferred contributions. I always thought this was the "typical" scenario for LBYMers, but I know there are other roads to Dublin.
Just a curiosity question if some don't mind elaborating: Several on this thread have mentioned that most of their assets are in taxable accounts. Just wondering how you got there. I have most of my assets tax-deferred. I max out 401k and IRA contributions (which is almost 30k/year), then if anything's left, put it in taxable, but it's always less than my tax-deferred contributions. I always thought this was the "typical" scenario for LBYMers, but I know there are other roads to Dublin.
Just a curiosity question if some don't mind elaborating: Several on this thread have mentioned that most of their assets are in taxable accounts. Just wondering how you got there. I have most of my assets tax-deferred. I max out 401k and IRA contributions (which is almost 30k/year), then if anything's left, put it in taxable, but it's always less than my tax-deferred contributions. I always thought this was the "typical" scenario for LBYMers, but I know there are other roads to Dublin.
If you going to ER (before 59.5), you will need some $ in taxable accounts to carry you until you can freely access 401k/IRA accounts. (yes you can use 72t but that has its limitations). So keep that in mind.Just a curiosity question if some don't mind elaborating: Several on this thread have mentioned that most of their assets are in taxable accounts. Just wondering how you got there. I have most of my assets tax-deferred. I max out 401k and IRA contributions (which is almost 30k/year), then if anything's left, put it in taxable, but it's always less than my tax-deferred contributions. I always thought this was the "typical" scenario for LBYMers, but I know there are other roads to Dublin.
Living and working overseas is our reason it's all taxable. I had something similar to a 401k but when I quit it did not meet IRS requirements for a rollover, so I had to declare it as income and pay tax. My compensation also had a very high % of variable income and we got into the habit of spending just the fixed monthly part and saving most of the variable.Just a curiosity question if some don't mind elaborating: Several on this thread have mentioned that most of their assets are in taxable accounts. Just wondering how you got there. I have most of my assets tax-deferred. I max out 401k and IRA contributions (which is almost 30k/year), then if anything's left, put it in taxable, but it's always less than my tax-deferred contributions. I always thought this was the "typical" scenario for LBYMers, but I know there are other roads to Dublin.
About 50% of our assets are taxable and that is mainly because we sold our house and invested the proceeds, so that we could be much more mobile in retirement.
Just a curiosity question if some don't mind elaborating: Several on this thread have mentioned that most of their assets are in taxable accounts. Just wondering how you got there.