Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 10-05-2020, 08:51 AM   #41
Thinks s/he gets paid by the post
 
Join Date: Jul 2004
Posts: 1,481
I am still working but consider myself FI - I have a small non-COLA pension, a future COLA'd pension in 3.5 years and SS in 10.5 or 13.5 years. I have calculated using many different retirement calculators (and REWahoo has kicked my a$$ in PMs) that I could probably spend twice what I spend now and not draw down much of my portfolio, even if I retire (quit) now before pensions kick in.....

I do manage my own portfolio and have the following holdings currently:

Taxable at Vanguard
VFMXX
VWIAX

TSP
F Fund
C Fund
S Fund
I Fund


Roth IRA at Vanguard
VTSAX

SEP IRA at Vanguard
VFORX

I am aiming for a three fund Bogle portfolio with eventually a 70/30 or 60/40 AA when I retire. My significant cash holdings are due to timing a house purchase in the near future.

I have modeled my situation in FireCalc, i-ORP, Retiree Portfolio Model (RPM), Vanguard's Retirement engine (when it was offered), VPW (thanks Running Bum for that tip!) and with a fee based financial planning firm when they were courting me. All have said I'm doing more than fine and will do more than fine financially.

I am lazy - I have not re-balanced this year - I did move the SEP IRA to VFORX (2040 versus previously 2030).

I've found that having pensions takes the pressure off having one's portfolio perform to cover lifestyle costs. I consider myself a 'tweener' generation (between baby-boomer and GenX) when many societal changes occurred with regard to employment and retirement funding (gradual phase-out of defined benefit pensions to defined contribution plans) therefore I have had to cover myself in both 'value' systems. I have been very fortunate.

You can't go wrong hanging out here or at Bogleheads - lots of good information with regard to financial management in all areas.
__________________
Deserat aka Bridget
“We sleep soundly in our beds because rough men stand ready in the night to visit violence on those who would do us harm.”
deserat 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 10-05-2020, 09:19 AM   #42
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 6,542
@albireo13 (OP), one of the problems with building a portfolio is knowing how it is doing compared to some alternative portfolio. If you don't do this, though, you really have no idea how your strategy is working.

One of the ways I check various portfolios' equity portion performance is a home made benchmark. On 1/2/2015 I bought $35K of SWISX, an international fund, and $65K of VTSAX, a total US market fund. Since then there has been no rebalancing and all dividends and interest reinvested. Hence, total return. The funds were picked without much thought other than low cost and to make sure that I was not using them anywhere else in our portfolios. That way I can just transfer the $ totals from my brokerage reports to a spreadsheet. I do that quarterly. Here is the data:



My suggestion is that you pick some simple benchmark and backtest your portfolio ideas against it at portfoliovisualizer.com. You can use this one if you like; just start portfoliovisualizer on 1/2/2015 with the 35/65 ratio.
OldShooter is offline   Reply With Quote
Old 10-05-2020, 09:32 AM   #43
Thinks s/he gets paid by the post
SumDay's Avatar
 
Join Date: Aug 2012
Posts: 1,801
I retired in 2018 and modeled mind after this. I've done some venturing out since, but it's worked for me:

https://www.morningstar.com/articles...uard-investors

Also, this article may be of interest to you. https://www.theretirementmanifesto.c...et-allocation/

Good luck! It will be fun to all all that extra money you were paying to have your portfolio managed. You can do it!
__________________
FIRE Class of 2018 @ 61

Old men and women sit in the shade of trees they planted long ago
SumDay is offline   Reply With Quote
Old 10-05-2020, 09:42 AM   #44
Recycles dryer sheets
PaunchyPirate's Avatar
 
Join Date: Feb 2014
Location: NW Pennsylvania
Posts: 415
I'm on my 2nd year of early retirement (now age 58) and I am fully self-managed. Here are my investments and the approximate % of my total portfolio for each. Overall Target Asset Allocation is 55/45 Stocks/Bonds.

Taxable Account - 64% of my portfolio
VTSAX - Total Stock Market - 28%
VBTLX - Total Bond Market - 9%
VFWAX - FTSE All World Ex-US - 7.5%
AAPL - Apple - 5%
CRM - Salesforce - 3%
V - Visa - 2.5%
VIG - Vanguard Dividend Appreciation Fund - 2%
JENSX - Jensen Quality Growth - 2%
RPG - Invesco S&P 500 Pure Growth - 2%
PWV - Invesco Dynamic Large Cap Value - 1%
CZA - Invesco Zacks Mid-Cap - 1%

Traditional IRA - 33% of my portfolio
VBTLX - Total Bond Market - 27%
VTABX - Total International Bond Market - 9%

Local and High Yield Savings
Cash - 3.5%

In my taxable account, the 3 individual stocks and the 5 ETFs/Mutual Funds with the lower percentages of my portfolio are remnants of my earlier investing days. I no longer invest more money in these and I move all dividends from them into my low-cost index funds or take the dividends out for living expenses. Through time, these will be the first investments I will sell off to live on. There are substantial capital gains in each of them, so I've been balancing the tradeoffs of selling or not with them for several years.
PaunchyPirate is online now   Reply With Quote
Old 10-06-2020, 06:00 AM   #45
Full time employment: Posting here.
racy's Avatar
 
Join Date: May 2007
Posts: 740
Quote:
Originally Posted by OldShooter View Post
@albireo13 (OP), one of the problems with building a portfolio is knowing how it is doing compared to some alternative portfolio. If you don't do this, though, you really have no idea how your strategy is working.

One of the ways I check various portfolios' equity portion performance is a home made benchmark. On 1/2/2015 I bought $35K of SWISX, an international fund, and $65K of VTSAX, a total US market fund. Since then there has been no rebalancing and all dividends and interest reinvested. Hence, total return. The funds were picked without much thought other than low cost and to make sure that I was not using them anywhere else in our portfolios. That way I can just transfer the $ totals from my brokerage reports to a spreadsheet. I do that quarterly. Here is the data:



My suggestion is that you pick some simple benchmark and backtest your portfolio ideas against it at portfoliovisualizer.com. You can use this one if you like; just start portfoliovisualizer on 1/2/2015 with the 35/65 ratio.
+1 on having benchmarks. I studied these Lazy Portfolios when I was constructing mine: https://tinyurl.com/y7csl5ym
__________________
"It is better to have a permanent income than to be fascinating". Oscar Wilde
racy is offline   Reply With Quote
Old 10-06-2020, 06:50 AM   #46
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
DFW_M5's Avatar
 
Join Date: Sep 2003
Location: DFW
Posts: 6,398
Mix of index & active

VTI
FXAIX, IVV
FCNTX
FLPSX
VDIGX
VWENX/VWIAX
FRIFX
FXNAX
FUMBX
DODIX
TIP/STIP
PONAX
CDs/FZDXX
__________________
Doing things today that others won't, to do things tomorrow that others can't. Of course I'm referring to workouts, not robbing banks.
DFW_M5 is offline   Reply With Quote
Old 10-06-2020, 07:12 AM   #47
Recycles dryer sheets
 
Join Date: Mar 2010
Location: Just south of Rochester
Posts: 119
50/50 + 4 years of cash YTD 5.5%
IRA Accounts
VFSUX...Short Term Bond
VFIDX....Intermediate Term Bond
VTABX....Total International Bond
VBTLX....Total Bond
VTIAX....Total International Stock
VTSAX....Total Stock

Taxable Account
VIGAX

I'm old and have become a firm believer in keeping it simple.
vince is offline   Reply With Quote
Old 10-06-2020, 07:32 AM   #48
Moderator
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 8,127
Quote:
Originally Posted by Out-to-Lunch View Post
I had never heard of this, so I did as you suggested. His suggestions seem, ummm, unduly complicated to me:
The complexity comes because rather than plain international, specific countries are used (freedom investmenting, as I warned about).

The 10ths of a percent are only because It's a calculator which changes with age.
sengsational is online now   Reply With Quote
Old 10-06-2020, 09:34 AM   #49
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 6,542
Quote:
Originally Posted by sengsational View Post
The complexity comes because rather than plain international, specific countries are used (freedom investmenting, as I warned about). ...
This is equivalent to saying "it's complex because the plan was designed to be complex." Nearly a tautology.

IMO @Out-to-Lunch's comment "unduly complicated," stands. And I agree.
OldShooter is offline   Reply With Quote
Old 10-08-2020, 05:20 PM   #50
Recycles dryer sheets
 
Join Date: Dec 2005
Posts: 91
Quote:
Originally Posted by OldShooter View Post
It's only a problem if you want to assess the performance of the equity portion of your investment. You can't.
Why not? Morningstar allows a person (for free) plug in the symbol and it shows the breakdown.
frugal-one is offline   Reply With Quote
Old 10-08-2020, 05:26 PM   #51
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 6,542
Quote:
Originally Posted by frugal-one View Post
Why not? Morningstar allows a person (for free) plug in the symbol and it shows the breakdown.
Really? It shows total return for the equities and for the FI separately? So you can look at historical performance for each piece? That's pretty neat. Link or screen shot?

Thanks.
__________________
Ignoramus et ignorabimus
OldShooter is offline   Reply With Quote
Old 10-08-2020, 05:32 PM   #52
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 6,542
Quote:
Originally Posted by racy View Post
+1 on having benchmarks. I studied these Lazy Portfolios when I was constructing mine: https://tinyurl.com/y7csl5ym
Yes. Good. It is even more important to track against benchmarks going forward. I tpically use my home-made benchmark and also the All Country World Index (ACWI). The benchmark(s) and the portfolio have to be compared on a total return basis, not on a nominal (sans dividends) basis.
__________________
Ignoramus et ignorabimus
OldShooter is offline   Reply With Quote
Old 10-08-2020, 05:37 PM   #53
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 10,890
So why does one need to assess the performance of the equity part of Wellington or Wellesley? Why not just assess the overall performance? Vanguard's site shows the benchmark they compare the fund against, or you could create your own benchmark.
RunningBum is offline   Reply With Quote
Old 10-09-2020, 04:09 PM   #54
Dryer sheet wannabe
 
Join Date: Feb 2015
Posts: 18
VWIAX, Long-term Gov't bonds , FNDF, CASH 30/30/30/10
MRSPOCK is offline   Reply With Quote
VSMGX for us
Old 10-09-2020, 04:30 PM   #55
Dryer sheet wannabe
TexasPE's Avatar
 
Join Date: Oct 2019
Location: Beaumont
Posts: 17
VSMGX for us

100% VSMGX
60/40, self-balancing.
SS + pension covers our expenses
TexasPE is online now   Reply With Quote
Old 10-09-2020, 06:40 PM   #56
Recycles dryer sheets
 
Join Date: Dec 2017
Posts: 144
Quote:
Originally Posted by sengsational View Post
You can google "marotta gone fishing portfolio". This is a fee-only financial planner that offers-up specific funds based on where your assets already are. So he (actually "they" offer up...it's a family business) a portfolio that would be easy to construct if you were a Vanguard customer, if you were a Fidelity customer, etc.
My husband and I took a class from George Marotta (I'm assuming the father) way back in 1989. We weren't even engaged yet! 30 years later and we have never had any fights about money.
samcat is offline   Reply With Quote
Old 10-09-2020, 07:08 PM   #57
Recycles dryer sheets
 
Join Date: Mar 2020
Location: Somewhere Cold
Posts: 184
Quote:
Originally Posted by albireo13 View Post
This is a followup of another thread I started last year ... "How many totally manage their own nest egg??"

For those who self-manage (do not use a FA service at all), what funds (or other investments) do you have your retirement nest egg invested in?

I am curious since, Vanguard and Fidelity Index funds seem to be highly popular. I am also curious about which index funds folks pick, and why.

Thanks.
As you can tell by my screen name, one of my favorite retirement planning books is The Armchair Millionaire by Lewis Schiff & Douglas Gerlach.
My previous employer switched our 401(k) into Vanguard right about the time I read that book so I set up my Vanguard account in accordance with the "Armchair Millionaire" portfolio which was:

33% Vanguard 500 Index Fund
33% Vanguard Small-Cap Index Fund
and 33% Vanguard International Growth Fund
(these were the funds available in my plan that were the closest match to the ideal Armchair Millionaire portfolio)

I kept it invested like that (100% stocks) for over 15 years. Then, as I'm getting closer to retiring, I've been adding Vanguard bond funds into the mix. For the next few years I switched to:

25% Vanguard Institutional Index Fund Institutional Shares
25% Vanguard Small-Cap Index Fund Institutional Shares
25% Vanguard International Growth Fund Admiral Shares
and 25% Vanguard Total Bond Market Index Fund Institutional Shares

(The institutional shares and Institutional Index Fund changes were from Vanguard. As my accounts increased in value I became eligible for and moved into lower-cost index funds)

At the beginning of 2020 I got to the point where I was about 5 years out from when I'd like to retire so according to my IPS (Investment Policy Statement) I switched it to:

20% Vanguard Institutional Index Fund Institutional Shares
20% Vanguard Small-Cap Index Fund Institutional Shares
20% Vanguard International Growth Fund Admiral Shares
and 40% Vanguard Total Bond Market Index Fund Institutional Shares for a 60/40 stock/bond mix.

That's what worked for me. Everything seems to be going to my plan from 20 years ago and I'm hoping to retire either shortly after my 55th B-day or January 1st of that year.
__________________


-AM23
ArmchairMillionaire23 is offline   Reply With Quote
Old 10-10-2020, 08:26 PM   #58
Dryer sheet aficionado
 
Join Date: Jan 2010
Location: That Toddlin' Town
Posts: 40
As one can see, the results are all over the map.
Some with a simple 3 fund portfolio, and others, with as many as 13+ funds.

To each their own I say. I've been retired since 2012, just turned 65.

I try to keep it simple, being mostly in the Federal Thrift Savings Plan
(60% TSP)

80% C fund
10% International fund
10% Small Cap fund.

Otherwise, The rest (~ 20%) is in Wellesley ROTH IRA
and Wellington taxable Fund (10%)
5% in taxable Dodge & Cox International (will dump soon)

plus 200K cash holdings in MM and Hi yield online savings accounts (~1%)

I'll address permanent issues when in 3-5 years when I turn 69'ish
The HalfBreed is offline   Reply With Quote
Old 10-10-2020, 09:01 PM   #59
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 29,165
After retired 21 years and self managed investments all that time, I can say simpler is better, IMO. Wish I’d started out way simpler.

Plus think how you want things to be when you are 85+ and no longer able to manage a complex portfolio?
__________________
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Old 10-11-2020, 03:57 AM   #60
Full time employment: Posting here.
atmsmshr's Avatar
 
Join Date: Mar 2016
Location: An island off the coast of Florida. (Ok - if you really need to know it's Vero Beach)
Posts: 627
While working, put as much into Fidelity 401k as lifestyle would permit. Always a broad stock index fund. Mostly S&P500, and nearly 100% stocks until the end. Company match was NEE. Throttled back to a more balanced portfolio 18 months before retiring - and was 33/66 split NEE / Intermediate Treasuries (FUAMX) during IRA rollover last January.

Content this year to harvest capital gains from NEE (and the next few years). Looking for a 2021 correction to start an upward sloping glide path and buy back into S&P500/midcap/REIT index from intermediate treasury bond fund.
__________________
DW and I are 59/59. FIRE'd August 2019. Non-cola pension available but will remain untouched until mid sixties to grow, max SS for DH at FRA or 70. Mega retiree health available. IRA rollover from 401k Jan 2020 for NUA treatment. LTCG next few years. AA 40% stocks, 7% cash and 53% Intermediate Treasury fund. Rising equity glidepath.
atmsmshr 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
How many totally manage their own nest egg? albireo13 FIRE and Money 314 10-15-2020 11:34 PM
Do you think that you owe your kids a good nest egg? swampwiz FIRE and Money 108 07-31-2011 07:15 PM
Are you concerned that your nest egg will cause you to get means tested out of SS? swampwiz FIRE and Money 138 02-12-2011 11:52 AM
Simple Math to See If You Have an Age-Appropriate Nest Egg danm FIRE and Money 2 01-07-2008 01:21 PM

» Quick Links

 
All times are GMT -6. The time now is 12:34 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.