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  • jz
    replied
    Congratulations on eliminating the debt.

    Accept that there is no perfect, ideal, nor painless asset allocation.  Unless you can predict future markets, interest rates, inflation rates, currency exchanges, or international markets, you can not know the ideal allocation. Asset diversification is your admission that you can not predict the future.  You can, however,  control  your behavior in  adhering to your AA.  Accept that there will always be some asset that temps you to behave poorly.

    Understanding that,  I agree with the advice above to limit bonds to 10-20%, depending upon how much pain you can endure during a bear market. The target date funds are fabulous because they do the rebalance and some of the behavior adherence for you.

    To manage your behavior in future bear markets, plan for them, embrace them, and at your age, pray for them.

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  • LizOB
    replied




    Personally I’m at 80/20 (although today I checked my balances and realized that I’m actually only around 17%).  Anyway, it’s a personal choice based on how much risk tolerance you’d have during a market downturn.

    Are you planning on sticking with the 2050 target funds?
    Click to expand...


    I think I'll stick with the 2050 target funds- I don't have a lot of options for my 401k, though I suppose I could always pick a different target date fund. Planning on adjusting the assets in taxable to get my desired overall allocation. Also, I'm thinking about doing the REIT index for my backdoor roth- since that's just starting it's a pretty darn low percentage of assets but I hear it's good to have REIT in the roth for tax purposes.

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  • pistolpete
    replied




    I’m 90/10, still in fellowship, thinking just going to 100/0 for the next decade though.
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    Me too. Too risky?

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  • jsr52
    replied
    I'm 90/10, still in fellowship, thinking just going to 100/0 for the next decade though.

    Leave a comment:


  • hightower
    replied
    Personally I'm at 80/20 (although today I checked my balances and realized that I'm actually only around 17%).  Anyway, it's a personal choice based on how much risk tolerance you'd have during a market downturn.

    Are you planning on sticking with the 2050 target funds?

    Leave a comment:


  • Peds
    replied
    Would go 20% FI. But as you have mentioned if you don't mind a 45% haircut in the next downturn then stay 10.

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  • PhysicianOnFIRE
    replied
    I am 90 / 10 (more detail here) at age 41. The glidepath to decrease stock allocations over time has been challenged. If you were 70 and retired with just enough money to fund your lifestyle for 20 to 30 years, I can understand a conservative allocation. But that's not your case at all.

    Congrats on eliminating your student loans and getting your IPS together. The fact that you've got a positive net worth early on is a great start!

    Cheers!
    -PoF

    Leave a comment:


  • LizOB
    replied




    Hi LizOb.  I am also obgyn doing just gyn now.  I would stay stock heavy at your age.  I think 90/10 or 80/20 is ok.  What kind of reaction did you have with your husbands 401k in 2008?  If you panicked then 80/20.  Make sure to buy muni bonds in the taxable.  VWIUX is what I use.  VTSAX or any other broad index fund is a good start.  As you get more money then putting 20-30% into Vtiax for international exposure would be smart.  If you find you get really interested in investing then tilting to some small cap value (VBR) is also an idea.
    Click to expand...


    2008 was before we met! In theory I wouldn't panic with a downturn but we'll see how that plays out when it eventually happens. Thanks for the suggestions.

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  • Hatton
    replied
    Hi LizOb.  I am also obgyn doing just gyn now.  I would stay stock heavy at your age.  I think 90/10 or 80/20 is ok.  What kind of reaction did you have with your husbands 401k in 2008?  If you panicked then 80/20.  Make sure to buy muni bonds in the taxable.  VWIUX is what I use.  VTSAX or any other broad index fund is a good start.  As you get more money then putting 20-30% into Vtiax for international exposure would be smart.  If you find you get really interested in investing then tilting to some small cap value (VBR) is also an idea.

    Leave a comment:


  • LizOB
    started a topic Asset allocation question

    Asset allocation question

    I know there's not one perfect right answer for this, but I'm trying to come up with my written investing plan and figure out stock/bond percentages. I've been doing some reading both here and on bogleheads, the latter of which suggests I should have my age be the percentage of bonds I hold which I think is way too high. About me:

    33yo, 3 years out of residency. Husband also 33 (non-medical)

    I just paid off my student loans! Up until now, we have both been maxing out 401k's and getting matches, with all excess money going to loans, as well as the down payment on our new house. So for the first time, we are starting backdoor Roth IRAs and a taxable account at Vanguard, hence the need to come up with an asset allocation plan. Both of the 401ks are with Fidelity using the 2050 target date funds which is 10% bonds (not a lot of fund options for either of us there).

    Current net worth is about 300k- most in my husband's 401k (which demonstrates the power of starting at age 22 like he did), along with my 401k and an emergency fund. I'm hoping to fully fund the backdoor roths each year along with maybe 20-30k going into the taxable account, depending on what my productivity bonuses are. For the record I'm employed so don't have access to other tax-advantaged funds, and my health insurance doesn't qualify for me to do an HSA.

    What seems reasonable to start off here, given that we're kinda just getting started? 10% bonds? 20%? Any takers for the boglehead rec of my age- 33%??
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