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03-27-2011, 08:46 AM
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#21
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Full time employment: Posting here.
Join Date: Jun 2008
Location: Caldas da Rainha, Portugal
Posts: 583
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Quote:
Originally Posted by Spanky
Spending only one hour in a year for rebalancing and tax-loss harvesting? You must be very efficient.
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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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03-27-2011, 08:56 AM
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#22
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Full time employment: Posting here.
Join Date: Jun 2008
Location: Caldas da Rainha, Portugal
Posts: 583
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Quote:
Originally Posted by pb4uski
Guess I misinterpreted what was meant by slicing and dicing. I thought it related to making sector bets within the equity allocation.
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Or maybe I misinterpreted what the other author meant when he mentioned slicing and dicing.
Quote:
Originally Posted by pb4uski
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.
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Yes.
Quote:
Originally Posted by pb4uski
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.
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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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03-27-2011, 12:45 PM
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#23
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Recycles dryer sheets
Join Date: Mar 2010
Location: Poway, CA
Posts: 441
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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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03-27-2011, 05:36 PM
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#24
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Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
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Quote:
Originally Posted by sbwitte
.. 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...
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$50K per year for a college degree? Has he considered going to a public university?
__________________
May we live in peace and harmony and be free from all human sufferings.
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03-27-2011, 05:57 PM
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#25
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
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Quote:
Originally Posted by ItDontMeanAThing
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.
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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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03-29-2011, 08:37 PM
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#26
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Recycles dryer sheets
Join Date: Mar 2010
Location: Poway, CA
Posts: 441
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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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