Investment Plan

Investment Plan

Creation 1/2/15

Last Modified: 1/2/2015

Big Ticket Goals:

Item Cost Timeframe
New Car $12,000 3 years
Vacation $2000 Yearly
House $200,000 10 years
·         50% Down payment $100,000 10 years
Retirement $1.8M 43 years
Children College (3) $180,000 26 years
Vacation Home $100,000 18 years

Investment Philosophy: Buy-and-hold, long-term all-market-index strategies implemented at Rock-Bottom Costs, are the surest of all routes to accumulation of wealth.

Asset Allocation:Until the age of 25, 100% allocation of stocks. After 25, the pursuit of 80/20% Stocks/ Bonds with the increasing percentage of bonds by 1% per year. After 30, the percentage of bond allocation will be equal to my age in years.

Funds and Accounts: Use low-cost mutual funds, index-funds, and ETFs , whole-market bond and equity funds which do not overlap and provide diversification across asset classes. Shelter tax-inefficient funds in tax advantaged accounts to reduce tax-drag.

Target- Allocation:

  • Money Market Fund (6 months expenses)            Taxable Account
  • Total US Stock Market Fund 100% Taxable Account
  • [Determine 401k, Roth IRA, Bond & TIPs and overseas investment strategies in 2016]

Other: Automate contributions whenever possible. Rebalance yearly, Exact sub-allocations are not as important as maintaining the overall stock/bond allocation. 5% of all stock allocation shall be held in separate cash-reserves to enable access to rare-opportunities of investment. Education shall never cease, never purchase an investment vehicle without considering known, and unknown angles.


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