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  • The White Coat Investor
    replied







    Is above too aggressive?
    Click to expand…


    It all comes down to personal preference based on risk tolerance. I’m 41 and keep 10% in bonds. I link to five risk tolerance quizzes here.

    At retirement, I plan to hold 5 years worth of expenses in bonds  ($400,000) which will likely be in the range of 12.5% to 15% of our retirement nest egg, but will in all likelihood drift lower as a percentage as our nest egg continues to grow most years.

    Cheers!

    -PoF
    Click to expand...


    That's a nice collection of quizzes. I think I'd trade it all for one bear market though. Nothing that will teach you about your risk tolerance better than your behavior in a bear market. That's why I recommend you err a little on the conservative side until your first one.

    Leave a comment:


  • adventure
    replied
    Do they have a good plan? Yeah, seems like it. Should someone be able to get that advise for less (or 0?) ? Yes.

    Did I? Oh no, I made much bigger mistakes getting here. Landing with a solid plan from day 1 is worth something. I'd happily trade the time, money and opportunity costs for a few k to be better prepared. But... some of use learn the hard way.

    Leave a comment:


  • StarTrekDoc
    replied
    Solid advice from an adviser.   That beats 80% of the general market right there.

    Yes, could have garnered that from Bogleheads and here if one knew where to look --- which is half the battle.

    So Kudos for finding a good adviser that recommends sound advise.  Better that you found us for future contributions

     

    Leave a comment:


  • PhysicianOnFIRE
    replied


    Is above too aggressive?
    Click to expand...


    It all comes down to personal preference based on risk tolerance. I'm 41 and keep 10% in bonds. I link to five risk tolerance quizzes here.

    At retirement, I plan to hold 5 years worth of expenses in bonds  ($400,000) which will likely be in the range of 12.5% to 15% of our retirement nest egg, but will in all likelihood drift lower as a percentage as our nest egg continues to grow most years.

    Cheers!

    -PoF

    Leave a comment:


  • palciparum
    replied
    59% Vanguard Total Stock Market Index

    30% Vanguard Total International Stock Market Index
    11% Vanguard Total Bond Market Index 


    Is above too aggressive?


    I am 40 and I have been recommended 60/20/20 - to put more in Bonds 20% instead of 10%.


    Any advice?

    Thanks.

    Leave a comment:


  • DMFA
    replied




    Above discussion/recommendation for Vanguard
    59% Vanguard Total Stock Market Index 

    30% Vanguard Total International Stock Market Index 

    11% Vanguard Total Bond Market Index 

    is it Mutual Funds or ETFs? Which product?
    I would like to follow this advice?
    Someone mentioned that there are promotion too when opening Vanguard accounts where you can get miles etc
    Click to expand...


    Doesn't really make much difference. Might be some intra-day highs/lows or bid/ask spread, but in the end NAV is the same and composition is the same.  It's just different-type shares of the same fund.  ETFs have the admiral-shares ER which has a $10,000 minimum buy-in for mutual funds, but the amount you would lose by having the "investor" shares is like $10/yr max.

    • Total stock mkt = VTSAX or VTI

    • Total int'l stock mkt = VTIAX or VXUS

    • Total bond mkt = VBTLX or BND


    ...are you referring to a bonus just by opening the brokerage account, or with a credit card associated with it?

    Leave a comment:


  • The Doc
    replied
    Mutual index fund

    Leave a comment:


  • palciparum
    replied
    Above discussion/recommendation for Vanguard
    59% Vanguard Total Stock Market Index 

    30% Vanguard Total International Stock Market Index 

    11% Vanguard Total Bond Market Index 

    is it Mutual Funds or ETFs? Which product?

    I would like to follow this advice?

     

    Someone mentioned that there are promotion too when opening Vanguard accounts where you can get miles etc

    Leave a comment:


  • Peds
    replied
    True. I think most of us get past that initial hurdle quickly and looking back 3K sounds steep.
    But definitely worthwhile if it pushes you towards the correct direction.

    Leave a comment:


  • jfoxcpacfp
    replied




    What the heck are you guys complaining about? The advisor charges a fair fee and gives good advice. A “simple, vanilla” portfolio is just fine if adequately funded and behaviorally managed.

    If you want financial advice, I think you’re doing just fine with this advisor. That said, one of the easiest things to take over yourself is the asset management, and now you can see why.
    Click to expand...


    Most of the "complaints" came before we knew that there was a plan attached. The original post seemed to indicate that he was paying for investment management only.

    Leave a comment:


  • The Doc
    replied
    thanks folks for all the advice ... Im happy that overall it seems the recommendation is pretty good

    I did get a financial plan and some projections alright for the initial fee , it most improtantly made me actually get everything together

    there is a lot to learn alright about finance , just read the WCI book and plan to read physicians on fire and WCI websites

    Leave a comment:


  • The White Coat Investor
    replied
    What the heck are you guys complaining about? The advisor charges a fair fee and gives good advice. A "simple, vanilla" portfolio is just fine if adequately funded and behaviorally managed.

    If you want financial advice, I think you're doing just fine with this advisor. That said, one of the easiest things to take over yourself is the asset management, and now you can see why.

    Leave a comment:


  • Faithful Steward
    replied
    Very basic, plain-vanilla asset allocation recommendation. Would need to know more about cost of advisor and services provided to give you an informed opinion.

    Leave a comment:


  • Peds
    replied
    since you posted twice...

    "while the choice of funds are great/perfect even, the % is strange.

    why 89:11? why is that better than 90:10 or 85:15? that makes no sense to me.

    also why 33.7% in international stocks? Vanguard rec between 20-40% and they have chosen 40%. Used to be 30% as the sweet spot. Some argue 0 all the way to market cap (55% now i think?).

    this advice is not worth 2-3k. that is a rip off.

    edit to add: also do you have previous retirement accounts (401k, IRA, SEP, etc). these need to be taken into account as well and the whole pot should be looked at as one.

    also per the comments above, it might be a little risky. if you are 89% stock, expect to lose half, or 44.5% of your portfolio in the next downturn (seriously….why 89??   :|  ). might be fine for your income at 44, might not be. only you can answer that.

    why not this:

    – 80:20 stocks to bonds

    – 30% of stock in international

    – so final of: 56% US: 24% Intl : 20% Bond/FI

    – adjust as desired or as want/need/willingness for risk changes

     

    thank you in advance for my check in the mail    "

    Leave a comment:


  • PhysicianOnFIRE
    replied


    not sure why 11%, I assume it is to do with my risk score (I completed a questionnaire) and age which is 44.
    Click to expand...


    The tried-and-true "age - 33" bond allocation.

    There're nothing wrong with 11%, but 60 /30 / 10 looks cleaner than 59 / 30 / 11.

    It's a fine recommendation (the three fund portfolio) and if I could get $2,000 to $3,000 for everyone I turn on to the idea, I'd be retired by now.

    Cheers!

    -PoF

     

     

     

    Leave a comment:

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