Emergency funds: 10k yes
Debt: 0
Tax Filing Status: Single
Tax Rate: 22% Federal, 5.7% State
State of Residence: VA
Age: 24
Desired Asset allocation: 100% stocks / 0% bonds
Desired International allocation: 40% of stocks
Please provide an approximate size of your total portfolio: 154k
Show us your current portfolio including all investment and retirement accounts (yourself and spouse or civil partner, if applicable) as it's important to look at the portfolio as a unified whole rather than look at accounts in isolation. Also include the available funds in your employer provided retirement plans.
32k in 401k S&P 500
43k in ROTH IRA
79k in taxable account
Show each fund or holding as a percentage of the entire portfolio, not as a percentage of the account that holding is in. If this instruction is not clear, see the example under the Key Points section below. For example:
Current retirement assets
Taxable
30% AVUV - Avantis U.S. Small Cap Value ETF (Expense Ratio: 0.25%)
10% AVDV - Avantis International Small Cap Value ETF (Expense Ratio: 0.36%)
1.30% NTSX - WisdomTree U.S. Efficient Core Fund, 90/60 S&P & 6x leveraged US treasuries (Expense Ratio: 0.20%)
10% AVES - Avantis Emerging Markets Equity ETF (Expense Ratio: 0.33%)
My 401k
20.77% 401k S&P 500 - STATE ST S&P 500 INDEX FUND (Expense Ratio: 0.015%)
My Roth IRA
7.92% NTSX - WisdomTree U.S. Efficient Core Fund, 90/60 S&P & 6x leveraged US treasuries (Expense Ratio: 0.20%)
10% NTSI - WisdomTree International Efficient Core Fund, 90/60 Int'l Domestic & 6x leveraged US treasuries (Expense Ratio: 0.20%)
10% NTSE - WisdomTree Emerging Markets Efficient Core Fund, 90/60 Int'l Emerging & 6x leveraged US treasuries (Expense Ratio: 0.32%)
_______________________________________________________________
Note: Total percentage of all the above accounts together (not each account individually) should equal 100%.
Contributions
New annual Contributions
$7.8k my 401k (also specify any employer matching contributions: 7.8k)
$7k my Roth IRA (until I am over income bracket which this may be my last year)
~$50k taxable (just saving as much as possible)
Background:
I am 24 yo and currently saving as mush as possible. I am in the tech industry with a math/computer science background. I know bogleheads will hate to hear this but I learned a lot about the math behind risk, diversification, & expected value from a year of sport betting. I ended up being pretty good at it, making a good bit of my portfolio on it using risk & expected value models with my stats background before I was limited on nearly all betting platforms![😂]()
.
I currently have a very large risk tolerance. 24 yo, no dependents, no car, no want to start a family for another 7-10 years. I like to bet on myself and plan that I will be making a lot more money then I am now in the future. I am very entrepreneurial. I also live a pretty simple lifestyle & don't have much wants or desires to upgrade my lifestyle now or in the future. Currently, I live far below my means saving about 50-80% of my tax adjusted income
I am basically trying to do the slightly leveraged version of the ginger ale portfolio with my high appetite for risk
The leveraged ginger ale is as follows
30% - NTSX - 90/60 S&P & 6x leveraged US treasuries
30% - AVUV - US SCV
10% - NTSI - 90/60 Int’l developing & 6x leveraged US treasuries
10% - AVDV - Int’l developing SCV
10% - NTSE - 90/60 Int’l emerging & 6x leveraged US treasuries
10% - AVEV - Int’l emerging SCV
Questions:
1. Am I correct wanting a slightly leveraged portfolio with my risk tolerance? I feel like this may not be the boglehead way, but I also feel that I have a incredibly higher risk tolerance. How do you feel about this?
2. I know most people say you overestimate the amount of risk you can take. Am I overestimating the amount of risk I can take? I would be fine losing the money I have now, if I lose it taking a risky position that is not irrational. I feel I have good emotional detachment with invested money from my sport bettings days where I deviate +/- 5k daily with my highest deviations of +/- 20k in a single day
3. Is my funds in the correct accounts for tax purposes? My guess is that all the WisdomTree funds would be less tax efficient then the Avantis funds with the 6x leveraged US treasurys, or would the emerging markets Avantis fund be less tax efficient?
4. Am I overcomplicating things? VT and chill seems like it might be the move but then again this bets on the 5 factor model with small cap value tilts which makes rational sense to me. These argue that you get risk premias for investing in these factors. I know I may be overcomplicating things but even a 0.5-1% boost in CAGR over a 40 year time horizon can make a world of difference
5. Should I aim for lower expense ratios? these seem high, but then again they are somewhat niche markets & I am betting on the fact that there really is risk premia in the 5 factor model
6. It seems like there are always new funds coming out that are better, how am I supposed to stick to a long time horizon buy & hold for tax purposes if there is always new funds coming out with better diversification and lower expense ratios? is it ok to deviate to new funds if my overall strategy stays the same?
7. How do you all manage rebalancing your portfolio? This seems like it may be a pain for me. I don't want to spend much time at all managing my portfolio, I feel that this takes away from it being passive, and it takes away from my time from trying to grow my income. I wish there was an automated way to rebalance your portfolio with different investment accounts (I know M1 but it seems like a pain to transfer everything there). I hope in the future this is possible, the technology seems like it is already here to do this theoretically
8. Are there any other funds I should look into?
9. Are there any other portfolios I should look into?
10. When I sell ETFs should I see using a market order or limit order? I heard you tend to get less using a market order but a limit order seems like trying to time the market.
11. Any recommendations of other ideas you want to share with me? articles to help me learn about relevant things?
I know this is a lot of questions, but I feel like I'm in the perfect sandbox environment for a Boglehead experiment. I'm really looking forward to hearing your thoughts, advice, and any personal experiences you can share. How would you approach my situation? What would you do differently? All feedback is welcome
Debt: 0
Tax Filing Status: Single
Tax Rate: 22% Federal, 5.7% State
State of Residence: VA
Age: 24
Desired Asset allocation: 100% stocks / 0% bonds
Desired International allocation: 40% of stocks
Please provide an approximate size of your total portfolio: 154k
Show us your current portfolio including all investment and retirement accounts (yourself and spouse or civil partner, if applicable) as it's important to look at the portfolio as a unified whole rather than look at accounts in isolation. Also include the available funds in your employer provided retirement plans.
32k in 401k S&P 500
43k in ROTH IRA
79k in taxable account
Show each fund or holding as a percentage of the entire portfolio, not as a percentage of the account that holding is in. If this instruction is not clear, see the example under the Key Points section below. For example:
Current retirement assets
Taxable
30% AVUV - Avantis U.S. Small Cap Value ETF (Expense Ratio: 0.25%)
10% AVDV - Avantis International Small Cap Value ETF (Expense Ratio: 0.36%)
1.30% NTSX - WisdomTree U.S. Efficient Core Fund, 90/60 S&P & 6x leveraged US treasuries (Expense Ratio: 0.20%)
10% AVES - Avantis Emerging Markets Equity ETF (Expense Ratio: 0.33%)
My 401k
20.77% 401k S&P 500 - STATE ST S&P 500 INDEX FUND (Expense Ratio: 0.015%)
My Roth IRA
7.92% NTSX - WisdomTree U.S. Efficient Core Fund, 90/60 S&P & 6x leveraged US treasuries (Expense Ratio: 0.20%)
10% NTSI - WisdomTree International Efficient Core Fund, 90/60 Int'l Domestic & 6x leveraged US treasuries (Expense Ratio: 0.20%)
10% NTSE - WisdomTree Emerging Markets Efficient Core Fund, 90/60 Int'l Emerging & 6x leveraged US treasuries (Expense Ratio: 0.32%)
_______________________________________________________________
Note: Total percentage of all the above accounts together (not each account individually) should equal 100%.
Contributions
New annual Contributions
$7.8k my 401k (also specify any employer matching contributions: 7.8k)
$7k my Roth IRA (until I am over income bracket which this may be my last year)
~$50k taxable (just saving as much as possible)
Background:
I am 24 yo and currently saving as mush as possible. I am in the tech industry with a math/computer science background. I know bogleheads will hate to hear this but I learned a lot about the math behind risk, diversification, & expected value from a year of sport betting. I ended up being pretty good at it, making a good bit of my portfolio on it using risk & expected value models with my stats background before I was limited on nearly all betting platforms
.I currently have a very large risk tolerance. 24 yo, no dependents, no car, no want to start a family for another 7-10 years. I like to bet on myself and plan that I will be making a lot more money then I am now in the future. I am very entrepreneurial. I also live a pretty simple lifestyle & don't have much wants or desires to upgrade my lifestyle now or in the future. Currently, I live far below my means saving about 50-80% of my tax adjusted income
I am basically trying to do the slightly leveraged version of the ginger ale portfolio with my high appetite for risk
The leveraged ginger ale is as follows
30% - NTSX - 90/60 S&P & 6x leveraged US treasuries
30% - AVUV - US SCV
10% - NTSI - 90/60 Int’l developing & 6x leveraged US treasuries
10% - AVDV - Int’l developing SCV
10% - NTSE - 90/60 Int’l emerging & 6x leveraged US treasuries
10% - AVEV - Int’l emerging SCV
Questions:
1. Am I correct wanting a slightly leveraged portfolio with my risk tolerance? I feel like this may not be the boglehead way, but I also feel that I have a incredibly higher risk tolerance. How do you feel about this?
2. I know most people say you overestimate the amount of risk you can take. Am I overestimating the amount of risk I can take? I would be fine losing the money I have now, if I lose it taking a risky position that is not irrational. I feel I have good emotional detachment with invested money from my sport bettings days where I deviate +/- 5k daily with my highest deviations of +/- 20k in a single day
3. Is my funds in the correct accounts for tax purposes? My guess is that all the WisdomTree funds would be less tax efficient then the Avantis funds with the 6x leveraged US treasurys, or would the emerging markets Avantis fund be less tax efficient?
4. Am I overcomplicating things? VT and chill seems like it might be the move but then again this bets on the 5 factor model with small cap value tilts which makes rational sense to me. These argue that you get risk premias for investing in these factors. I know I may be overcomplicating things but even a 0.5-1% boost in CAGR over a 40 year time horizon can make a world of difference
5. Should I aim for lower expense ratios? these seem high, but then again they are somewhat niche markets & I am betting on the fact that there really is risk premia in the 5 factor model
6. It seems like there are always new funds coming out that are better, how am I supposed to stick to a long time horizon buy & hold for tax purposes if there is always new funds coming out with better diversification and lower expense ratios? is it ok to deviate to new funds if my overall strategy stays the same?
7. How do you all manage rebalancing your portfolio? This seems like it may be a pain for me. I don't want to spend much time at all managing my portfolio, I feel that this takes away from it being passive, and it takes away from my time from trying to grow my income. I wish there was an automated way to rebalance your portfolio with different investment accounts (I know M1 but it seems like a pain to transfer everything there). I hope in the future this is possible, the technology seems like it is already here to do this theoretically
8. Are there any other funds I should look into?
9. Are there any other portfolios I should look into?
10. When I sell ETFs should I see using a market order or limit order? I heard you tend to get less using a market order but a limit order seems like trying to time the market.
11. Any recommendations of other ideas you want to share with me? articles to help me learn about relevant things?
I know this is a lot of questions, but I feel like I'm in the perfect sandbox environment for a Boglehead experiment. I'm really looking forward to hearing your thoughts, advice, and any personal experiences you can share. How would you approach my situation? What would you do differently? All feedback is welcome
Statistics: Posted by tpb — Thu Aug 29, 2024 11:17 pm — Replies 0 — Views 14