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  • bluediamond
    replied
    650000 in stocks the rest is etf/index funds in vanguard and401K/457 .No I don't have a IPS. I am going to be 42 this year. Retirement - mainly done my job with kids education. May be back pack and travel with my wife.May be do a few months of locum while travelling. My portfolio makes around 20000 in dividends annual basis. Plan to retire in 25 years.

    Leave a comment:


  • Donnie
    replied
    +1 to starting a new thread.

    Leave a comment:


  • erictait
    replied
    When you say retirement what are you trying to do?

    If you are trying to retire in the next few years, figure out what your monthly expenses are plus your wants and that is your monthly number.

    Figure out how much money your current portfolio generates and your difference is the delta you need to achieve.

     

    Now you have to decide how you want to bridge that gap.

    You can continue to invest in dividend paying stocks, look for bonds, invest in income producing real estate (my choice) and/or private businesses (my choice)

    that are committed to returning capital to you as an owner.

    Leave a comment:


  • adventure
    replied


    Need advised on how to manage from here.
    Click to expand...


    Bluediamond - start a new thread w/ the same question, it'll get some more attention and responses:



     

    And, if you can add in some detail to these, that'll help:

    "stocks – 1150000" - taxable? IRA? in stocks/funds/etc?

    Age/retirement goals/etc? This'll help discuss your aversion to disability insurance.

    Do you have an investing plan / IPS?

    Why 350k in emergency fund? What do you need to cover 6 months of expenses?

    Re: job status, to clarify, are you still on h1b, or have you completed i-140 and i-485?

    Leave a comment:


  • bluediamond
    replied
    Cash Surplus:

     

    Need advised on how to manage from here.

    Me and my wife are fulltime physicians - hospital employed.

    Net worth 1924000. stocks - 1150000. Vanguard ETF taxable - 160000.( started this year) Planning to invest in index funds from now on. As I already invested in individual stocks heavily in the last few years.

    Other taxable account - 550000 - stocks . individual ( top 10 holdings - aapl ,wmt, xom, wfc, mrck, vz, etc. Mostly dividend paying)

    Non taxable account : 401 K 250000, started 457 plan this year.maximized on 401k contributions in the last 4 years.We  Started working as an attending 4 years ago.

    Mortgage 1 175000 - 3.58 % - rented property. monthly rent 1900- after agent fee get 1710.

     

    Mortgage 2- 394000 - 2.78% currently living with 3 kids - 7,4 and 2years old. Decent school district.

     

    529 on three kids - started last year 20000 usd. Got the state deductions.

    Investable cash :549000. Includes emergency fund etc.( 350000 in savings account earning 1.20%. 50 K in Prime money market fund. bought some municipal funds.)

    got term life insurance and disability insurance ( don't like the disability insurance as its expensive.)

     

    Main goals are : retirement and college education funding.

     

    I don't want to pay off the mortgage. From the immigration point - on a visa. wait in q for the green card. Not very clear if the disability insurance would work for me if some thing happens. If I don't have job then no status in this country.

     

    Thank you for any advise.

     

     

     

     

     

     

     

    Leave a comment:


  • NJDoc
    replied
    Oh my goodness , you are not going to let this go are you. I'm done , and I'm done with WCI for awhile. You're a moderator ? Seems like you are more interested in starting an argument.

     

    Leave a comment:


  • jfoxcpacfp
    replied




    Johanna,

    Thank you so much for your reply. I do not wish to get into this argument nor hijack this thread. A quick search pulled on WCI pulled up this last discussion which ran over 100 comments, so for those interested here is the link: https://www.whitecoatinvestor.com/dual-momentum-investing-a-review/ and there are several more discussions and posts.

    One last comment: emotion is exactly why rules based investing does well, emotion is removed from the equation.

    Have a nice day.

     
    Click to expand...


    Just asked for you to make your case, not use others' comments. One more time, can you tell me how my philosophy would have lost money in the last - or any - bear market? Even better, how it would not have resulted in maximum returns?

    Emotion is removed from the equation for our clients. They pay us to receive optimum long-term returns. We don't accomplish this by blindly following other people's rules of thumb. Of course, without an advisor who doesn't have and follow a core set of investing principles (that work), investors are reduced relying on to conventional "wisdom" subject to the whims of their emotions.

    Leave a comment:


  • jfoxcpacfp
    replied




    Another thought if you’re not already doing this for your kids – make sure they’ve got some earned income and do a “Family Match” for a Roth, preferably to the max of $5500/year. Not that this will put a dent in your “problem”….

    Regarding the 529 Plans, we only funded them to get the maximum state income tax benefit ($2K/year per child) and found even that low level will likely have surplus thanks to merit scholarships (both kids 1 and 2 did very well with their colleges, and our last sophomore just got back some nice PSAT scores too) – so we’ll be looking at renaming beneficiaries or maybe for grandkids, or maybe paying out the balance at 75% as a “graduation gift” (if they don’t want grad school and don’t want to keep them growing for possible offspring).
    Click to expand...


    One of the reasons I believe aggressive 529 funding can backfire. Never overfund 529s to the detriment of other financial goals.

    Leave a comment:


  • NJDoc
    replied
    Johanna,

    Thank you so much for your reply. I do not wish to get into this argument nor hijack this thread. A quick search pulled on WCI pulled up this last discussion which ran over 100 comments, so for those interested here is the link: https://www.whitecoatinvestor.com/dual-momentum-investing-a-review/ and there are several more discussions and posts.

    One last comment: emotion is exactly why rules based investing does well, emotion is removed from the equation.

    Have a nice day.

     

    Leave a comment:


  • jfoxcpacfp
    replied





    Good morning, @NJDoc
    Click to expand…


    Good Morning Johanna,

    I would rather not get into the momentum vs buy and hold argument again, as it has been thoroughly tossed about on this site as you may remember.

    I believe your point is : it’s not a loss unless you sell your shares in a bear market, I agree, and I do have a component of my holdings in buy and hold.

    However, my point is my “professionally managed and properly constructed equity portfolio”, lost over 30%, actually 36% in the last bear cycle. Yes, it came back, but as you know a 30% loss requires a 43% gain to just get back to even and that took years to occur. Momentum techniques may lag performance in rapid up moves and choppy side ways markets, but they shine in bear markets.  The techniques I use now would have dropped only 5%, and that comment is based on real world numbers not back testing as reported to me from the firm that runs my momentum portfolio.

    Everyone has their own individual approaches and can support their views with numerous papers, books, results, etc.. I’m not saying buy and hold is broken, but in my opinion there is a better way to manage a portfolio in down markets. ” Win by not losing”
    Click to expand...


    A rather convoluted way to say that you believe a drop in a portfolio in which you do nothing is a loss. The IRS says differently, mind you, and your "explanation" simply reflects your personal emotions. Arguments such as yours must rely on an element of emotion (always a mistake when money is involved) because there is no factual basis for "losing" money that you still have. (If you lose your wallet and later find it, did you really lose it?)

    So, please, explain in your own words, how my plan would have resulted in a "loss" in the last bear market. Of course, if you can't sit through a correction or bear on your own, a financial planner is worth multiples of what you have paid for good advice and sound counseling.

    Leave a comment:


  • NJDoc
    replied


    Good morning, @njdoc,
    Click to expand...


    Good Morning Johanna,

    I would rather not get into the momentum vs buy and hold argument again, as it has been thoroughly tossed about on this site as you may remember.

    I believe your point is : it's not a loss unless you sell your shares in a bear market, I agree, and I do have a component of my holdings in buy and hold.

    However, my point is my "professionally managed and properly constructed equity portfolio", lost over 30%, actually 36% in the last bear cycle. Yes, it came back, but as you know a 30% loss requires a 43% gain to just get back to even and that took years to occur. Momentum techniques may lag performance in rapid up moves and choppy side ways markets, but they shine in bear markets.  The techniques I use now would have dropped only 5%, and that comment is based on real world numbers not back testing as reported to me from the firm that runs my momentum portfolio.

    Everyone has their own individual approaches and can support their views with numerous papers, books, results, etc.. I'm not saying buy and hold is broken, but in my opinion there is a better way to manage a portfolio in down markets. " Win by not losing"

     

     

    Leave a comment:


  • The White Coat Investor
    replied




    I have been happy with our plan to pay off the mortgage before the college tuitions started; just add an extra payment each month.  So far, over the past 5 years, bonds have been a bust.  I carry a mix of low cost mutual funds, low cost ETFs, Berkshire Hathaway, and some favorite stocks.  While a larger amount of cash might cost a little bit over the years, the peace of mind is quite remarkable.
    Click to expand...


    What did you expect out of bonds 5 years ago? Total bond market has had a 5 year return of 2.31%. Intermediate corporates at 4.91%. Those returns were better than I expected 5 years ago.

    But I agree with your main point. Paying down debt has been a great move the last few years when compared to other safe investments.

    Leave a comment:


  • stubonedoc
    replied
    I have been happy with our plan to pay off the mortgage before the college tuitions started; just add an extra payment each month.  So far, over the past 5 years, bonds have been a bust.  I carry a mix of low cost mutual funds, low cost ETFs, Berkshire Hathaway, and some favorite stocks.  While a larger amount of cash might cost a little bit over the years, the peace of mind is quite remarkable.

    Leave a comment:


  • rich
    replied
    Another thought if you're not already doing this for your kids - make sure they've got some earned income and do a "Family Match" for a Roth, preferably to the max of $5500/year. Not that this will put a dent in your "problem"....

    Regarding the 529 Plans, we only funded them to get the maximum state income tax benefit ($2K/year per child) and found even that low level will likely have surplus thanks to merit scholarships (both kids 1 and 2 did very well with their colleges, and our last sophomore just got back some nice PSAT scores too) - so we'll be looking at renaming beneficiaries or maybe for grandkids, or maybe paying out the balance at 75% as a "graduation gift" (if they don't want grad school and don't want to keep them growing for possible offspring).

    Leave a comment:


  • Zaphod
    replied
    Also something to remember about valuations, how far the market has run etc....while valuations are high now, the economy does seem to be turning to support it. Remember that although it feels like we've gone straight up and too far, its not at all the case. A large portion of that "straight up" return went to getting to zero, over 100% and that took until March of 2013. We currently only sit 59% above that. That is the kind of effort a huge draw down requires to get back to zero. Annualized the return since is 6.5%, hardly nuts, and since 2000 its 4.34%. That is pretty poor overall against history. The Nasdaq was worse at 2.13% and the Dow at 5.39%, factor in inflation and its a sad story.

    Outside of valuations these are not the typical setups for bubbles and huge busts. I think we all have to remember we are scarred from the last time and it affects the way we view things. Policy error that causes problems is very real like in 1937, but lets hope that doesnt happen.

     

    Leave a comment:

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