Announcement

Collapse
No announcement yet.

Asset allocation and location

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • TravisRADMD
    replied
    yup, thank you.

    Leave a comment:


  • Peds
    replied
    Originally posted by TravisRADMD View Post

    So if its the numerator and denominator then I'm essentially ignoring it completely? Correct?
    no.......this is simple math.

    say you are paid 100K. you are saving 20% or 20K.
    now you get a 10K match.
    you are now saving 30K, but your compensation is 110K......30/110 = 27%

    Leave a comment:


  • TravisRADMD
    replied
    Originally posted by Peds View Post

    - for match its both savings, and part of your compensation. so you add to both numerator and denominator technically.
    - FI is fixed income. FL is florida which is a much worse mistake.
    So if its the numerator and denominator then I'm essentially ignoring it completely? Correct?

    Leave a comment:


  • Peds
    replied
    Originally posted by TravisRADMD View Post
    1. 30% savings rate if I include employer contributions, 20% if I don't. Should I include contribution in savings rate or treat as income and base 20% savings rate of income+ employer contribution?

    2.. What does "no FL" mean?
    - for match its both savings, and part of your compensation. so you add to both numerator and denominator technically.
    - FI is fixed income. FL is florida which is a much worse mistake.

    Leave a comment:


  • TravisRADMD
    replied
    1. 30% savings rate if I include employer contributions, 20% if I don't. Should I include contribution in savings rate or treat as income and base 20% savings rate of income+ employer contribution?

    2.. What does "no FL" mean?

    Leave a comment:


  • Peds
    replied
    Originally posted by TravisRADMD View Post
    I understand your home(if not originally purchased as an investment vehicle) but why is “investment real estate” not included in your portfolio allocation plan? I’m having hard time understanding that. Does that also include investments in more passive RE vehicles like the 37th parallel fund or just hard assets like a rental property?
    -- iono, maybe because not liquid. and also you can include whatever you want in your own personal plan.


    My planned portfolio is as such:

    30% savings rate- including employer contribution (20% savings rate without). 60% will fill up tax deferred, 40% will of that will go to taxable.
    -- is that just for retirement? are you including the match in your gross salary?

    Allocations

    75% stocks
    25% RE
    5% bonds
    -- giving 105%....little short but still good for you.

    Allocation locations

    Taxable($43K per year)

    45% stock
    25% Private REIT syndication
    25% Savings rate for rental property investing
    5% bitcoin
    -- well its certainly not my AA

    Tax deferred ($104K per year)

    401K
    80% stock index funds
    15% REIT
    ~5% Treasury index for easier re-balancing.

    Roth IRA
    80% stock index funds
    15% REIT
    ~5% Treasury index for easier re-balancing.
    - no FI in rIRA.

    HSA
    80% stock index funds
    15% REIT
    ~5% Treasury index for easier re-balancing.

    However this will radically change if I should not be including private real estate in my allocations? If so, how do you budget for rental property investing? Spare cash? I'm confused.

    you should include everything you are investing in.

    Leave a comment:


  • TravisRADMD
    started a topic Asset allocation and location

    Asset allocation and location

    In a recent blog post WCI stated “Our overall asset allocation will be 75% equity investments and 25% fixed-income investments. Investment real estate and our home will not be calculated into this figure. Our emergency fund will be calculated as part of the fixed income. The ratio will decrease gradually to at least 60/40 by retirement.”

    I understand your home(if not originally purchased as an investment vehicle) but why is “investment real estate” not included in your portfolio allocation plan? I’m having hard time understanding that.

    Does that also include investments in more passive RE vehicles like the 37th parallel fund or just hard assets like a rental property?

    My planned portfolio is as such:

    30% savings rate- including employer contribution (20% savings rate without). 60% will fill up tax deferred, 40% will of that will go to taxable.

    Allocations

    75% stocks
    25% RE
    5% bonds

    Allocation locations

    Taxable($43K per year)

    45% stock
    25% Private REIT syndication
    25% Savings rate for rental property investing
    5% bitcoin

    Tax deferred ($104K per year)

    401K
    80% stock index funds
    15% REIT
    ~5% Treasury index for easier re-balancing.

    Roth IRA
    80% stock index funds
    15% REIT
    ~5% Treasury index for easier re-balancing.

    HSA
    80% stock index funds
    15% REIT
    ~5% Treasury index for easier re-balancing.

    However this will radically change if I should not be including private real estate in my allocations? If so, how do you budget for rental property investing? Spare cash? I'm confused.
Working...
X