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Old 03-27-2011, 08:46 AM   #21
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Spending only one hour in a year for rebalancing and tax-loss harvesting? You must be very efficient.
All my retirement investments (except gold mining) are in index funds at a single firm. At the end of each quarter I input the values into an existing spreadsheet then check a column to see if difference between target and actual % warrants a rebalance. If it does, then another column shows the dollar amounts to exchange. The time consuming part is going online to make the exchanges. One hour (more or less) covers it for two rebalances a year, the most I've done.

Taxable account is another matter. I'm living off that so I have to think about what I'm going to do before I do it.
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Old 03-27-2011, 08:56 AM   #22
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Guess I misinterpreted what was meant by slicing and dicing. I thought it related to making sector bets within the equity allocation.
Or maybe I misinterpreted what the other author meant when he mentioned slicing and dicing.

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Sounds like it is just AA at a lower level. For example my Vanguard Total Stock includes large cap, large cap value, small cap and small cap value, but based on market weightings, not necessarily 10% each.
Yes.

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Where the graph above indicates large and small cap do you really mean large cap growth and small cap growth? BTW, to have large cap and small cap equal at 20% each seems to me to extremely overweight small cap, but I assume the graph is hypothetical.
I think it means growth. It's not my graph. It came from a site that turned their AA ideas into a book so the details of their current AA strategy are not explained online. My guess is it's hypothetical.
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Old 03-27-2011, 12:45 PM   #23
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Welcome to the Forum Cyclone6!

Not everyone subscribes to the "we need more than half in equities" opinion. My DW and I currently have $1.3 million and are invested very similarly to your spreadsheet proposal of 40% stock and 60% bonds. We're a tiny bit older at 53 each. We believe that Bogle sums it up with one word "enough" in one of his recent books. 40% stocks, 60% bonds can earn a fine living while greatly reducing the volatility of your investments. Yes, firecalc appears to push more in equities, actually a mild shortcoming in this tool IMHO. We also use Fidelity's retirement planning tools and find them to be a good complement. I hope to retire in 3 years with 1.5 million + 100K for our son's college. We realize, of course, that if he gets accepted into a $200K/4 year school, we might have to cough up more, and I might have to work longer. We'll see how this goes...

In any case, I think you've done a terrific job planning your ER!

- Stephen
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Old 03-27-2011, 05:36 PM   #24
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.. 100K for our son's college. We realize, of course, that if he gets accepted into a $200K/4 year school, we might have to cough up more, and I might have to work longer. We'll see how this goes...
$50K per year for a college degree? Has he considered going to a public university?
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Old 03-27-2011, 05:57 PM   #25
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Originally Posted by ItDontMeanAThing View Post
Or maybe I misinterpreted what the other author meant when he mentioned slicing and dicing.


Yes.


I think it means growth. It's not my graph. It came from a site that turned their AA ideas into a book so the details of their current AA strategy are not explained online. My guess is it's hypothetical.
The pie chart appears to be the Coffeehouse Portfolio of Bill Schultheis
The Coffeehouse Investor » Coffeehouse Returns

That's not "large growth"; it's "large blend". Ditto for small.
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Old 03-29-2011, 08:37 PM   #26
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I agree $50K a year seems a bit "over the top". We're about 3 1/2 years away from this, and I suspect that $100K total should be enough.

Thanks Spanky.

- Stephen
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