Last Modified: 1/2/2015
Big Ticket Goals:
|New Car||$12,000||3 years|
|· 50% Down payment||$100,000||10 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.
- 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.