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  • All in S&P 500

    Hi All,

    First time poster here, and I am relatively new to investing. I've followed the WCI mantra since finishing my training in 2017. Paid off 300k student loan debt. Lived like a resident. My total investments (Roth, pre-tax, HSA, taxable) is ~1.1 mil. Hoping to reach FIRE by 2027, which would put me at 10 years in practice.
    In 2020, I invested ~200k in total market (VTSAX), and on pace for 400k in 2021. I still have home loan (non-jumbo) and will be forever home, but the interest rate is so low.

    Any tips or suggestions on what to do going forward? Do I keep putting more into the same fund (VTSAX)? I'm new to this, but I hear chatter from everyone at work putting in random investments, so not sure if I should change the course.

    Thank you.

  • #2
    Do you have a personal investment policy statement or an idea of what you want to invest in, etc.? That’d be a good place to start. I can say with high confidence that you should ignore any chatter you hear at work.

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    • #3
      Sounds to me like you're killing it

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      • #4
        Ignore the noise.

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        • #5
          VTSAX and chill is a popular mantra for good reason. You could do a lot worse and honestly aside from some slice and dice recommendations about an international allocation or something it’s likely about the best you could do. What it may lack for in diversification it makes up for in simplicity and easier to stick with behaviorally. Just go for it. VTSAX and chill.

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          • #6
            Originally posted by Hoopoe View Post
            VTSAX and chill is a popular mantra for good reason. You could do a lot worse and honestly aside from some slice and dice recommendations about an international allocation or something it’s likely about the best you could do. What it may lack for in diversification it makes up for in simplicity and easier to stick with behaviorally. Just go for it. VTSAX and chill.
            VTSAX and relax

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            • #7
              What happens when you hit FIRE in 2027? What you’re doing now works great for accumulation phase, but if your going to need income from this bucket in 2027 and beyond, you will need to diversify to reduce draw down risk. Im doing the same thing you are and plan on transitioning my portfolio to focus on diversification and preservation around 3-5 years before retirement.

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              • #8
                It sounds like you are doing great due to a good paying career and a high savings rate. If I read correctly, you are planning a career with a retirement date in 6 years. You may want to adjust your portfolio to reflect that position, which would mean a slightly less aggressive (less equities). I am on a different time frame than you, I got to my number and I am more concerned about loss of principle just prior to retiring than continuing with the ride and hoping I dont have 30% the year before I retire. You however are in a position if there is a 5 year bear in 2016 you could keep working.

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                • #9
                  You are doing great. Are you wanting to actually retire in 10 years or just be in a position to retire? I think keeping a mortgage is fine for now. You do not want this if you actually retire. You need to think about what you would do for health insurance post work. Lots of super savers keep working part time to keep health insurance. Gradually add BND in your retirement accounts. VTSAX is just fine for your equity position.

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                  • #10
                    Originally posted by whitemagic View Post
                    I'm new to this, but I hear chatter from everyone at work putting in random investments, so not sure if I should change the course.
                    The chatter is stupid and has no organized plan. Don't let it sabotage the strong work you already put in.

                    If all your equities is in VTSAX consider adding some international such as VXUS. Recommended range is large (20-50%). I do 65/35 US to international.

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                    • #11
                      By my count your NW is up 1.4MM in 4 years just counting investments and knocking out the student loan debt. Strong work on that early start, sounds like you have a large shovel and have been putting the proceeds to good use. It is likely reasonable to lighten up the purse strings a bit, if you haven't already. Easier said than done, sometimes.

                      Totally agree on getting yourself an Investor Policy Statement aka written investing plan. The process of coming up with one yourself will require some thought and some reading and will be very valuable to reaching your long term goals.

                      Here's the WCI link to help you get started: https://www.whitecoatinvestor.com/ho...nal-statement/

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                      • #12
                        You need a financial plan. That's all I'm going to say.
                        Our passion is protecting clients and others from predatory advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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                        • #13
                          Congrats on a strong start. I love that you are all in on the US-only market--bias into technology.
                          Last edited by jz-; 07-27-2021, 10:39 AM.

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                          • #14
                            You actually don't need any more information than what you currently know, as it has obviously worked out spendidly for you so far. Word of advice: ignore anything you hear in the doctor's lounge.

                            VTI & chill.

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                            • #15
                              Originally posted by Hoopoe View Post
                              VTSAX and chill is a popular mantra for good reason. You could do a lot worse and honestly aside from some slice and dice recommendations about an international allocation or something it’s likely about the best you could do. What it may lack for in diversification it makes up for in simplicity and easier to stick with behaviorally. Just go for it. VTSAX and chill.
                              Yes, it is a good strategy for docs and other high earners who have already basically won the game when they graduated from training. All they really need to do from that point is to not make a disastrously bad mistake (lose license, terrible investments, expensive divorces or business break-ups, etc).

                              VOO or SPY or IVV or VTI or VTSAX or whatever is basically just settling for average returns. That is fine if risk tolerance is low, if you can make more working than actively managing (most docs), or if you aren't the DIY type with investing. Again, though, income and savings rate has to be fairly high for that to work... and it clearly is for OP.

                              Personally, I think there is nothing wrong with some DIY investing, though. It's a personal choice. I started back before there were ultra-low cost ETFs, when most mutual funds had large minimums and many hidden fees (as they still do). Stocks have always been 0% ER, so they just made sense. It doesn't take long to make stock picking, options, etc a hobby for a percentage of your portfolio. Stock picking is like anything... a lot of people are afraid of what they don't understand. It's like the bad rep given to attorneys... many will say they're sleazeballs and they're greedy... yet greedy sleazeballs sure seem to have nicer offices and houses and vacations than most docs do? Hmmm.

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