Investing

Next step after paying off mortgage

We're in the fortunate position of paying off our mortgage and having no other liabilities to pay off. Now we're trying to decide where we should put our money next. I think we're leaning toward maxing out our HSA. Our Roths are maxed out. We also have a 403b and a brokerage account as well. Any other suggestions?

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ehomaha

3 days ago 5 Share

Risk parity portfolio with mutual funds?

Hello experts - I've just about hit my FI number and I'm looking to de-risk a more significant portion of my portfolio and move it to risk-parity style assets. I've already moved some old roll-over IRAs and brokerage accounts over to golden butterfly some time ago, but the biggest chunk of my assets sit in my 401k which I will continue to have for another couple of years. There are limited investment options in my 401k, but they have recently enabled Fidelity Brokerage Link for us and that allow...

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Henry

1 week ago 16 Share

Sell under performing and buy w/o a "wash". Moving from managed to self-managed.

**"Do not "sell all" of the same security twice in one day".** -- I'm selling stocks I don't want that were in the "managed" account and moving the funds into VTSAX/VIT I get this message. Would someone please explain this to me so I don't do "wash sales" on accident. It's mentioned on page 118 in the Simple Path to Wealth and I'm still and not clear how to avoid wash sales tax loss.

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MissEllie

1 week ago 5 Share

Robinhood Concierge

Just saw the robinhood Concierge service pop up on the app. If you keep $1 million in assets on the platform, they will provide "free" tax preparation including business and rental real estate returns. Also included are free estate planning and financial planning. Thoughts on this value add? Not the biggest fan of how they gamify investing but if you're holding the same low cost index funds here, seems like a few thousand dollars worth of services included.

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Wilsliu

1 week ago 3 Share

Risk Parity Investing Question about this week

Good morning! I am looking for some help from the Uncle Frank crowd: I had a strictly stock/bond/cash split until last November when I learned about Risk Parity/Golden Butterfly. Since them, I have started to test the waters, and I have invested in 4 gold funds and cta. Not a huge portion of my net worth yet - maybe $25k between the gold and cta at this point. But my question is this: Until yesterday, I have delightfully watched the accounts do what they should - when the market goes down, gold/...

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littleG

1 week ago 19 Share

Why does this Risk Parity fund in Fidelity FAPSX, show a big negative number?

I was looking at an asset allocation breakdown of various Fidelity funds I have. I noticed that there is a big negative number in the "Short Term" category for FAPSX, which is a Fidelity Risk Parity fund. What does that mean? If you add up the numbers in the bottom row, that is the current value of the holding (approximately $54,300). Anyone know what the "long, short, and net" values refer to?

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ATreth

1 week ago 5 Share

Uncle Frank!!! Awesome recent episode on the BP Money Show, I have a follow up question!

@UncleFrank I listened this morning to the commentary on different Small Cap Funds and loved it! I know you mentioned that AVUV uses the ‘algorithm’ or tracks based on the CRSP “formula” I guess you’d call it. I know vanguards VB also uses CRSP. Is there a large difference between VB and AVUV? Wondering if it’s worth the switch, or just any other comments you might have on other Small Cap funds using CRSP being more effective than the Russel 2000 like you mentioned on the podcast.

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8thWonder

1 week ago 10 Share

Financial Tracking Tool

I've used Personal Capitol (now Empower) for the last 10 years and am wondering what everyone else is using to track their net worth. I'm not so interested in budgeting as I've got a handle on that already, really just tracking overall net worth and investing. PC has helped me analyze my portfolio across all accounts (personal and work retirement) and make sure my allocation overall is where I want it. I'm currently testing a new tool call Origin since the first year is only $1. Recently PC has...

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dm741

1 week ago 27 Share

Rental or Brokerage for gap

Hello, I was fortunate enough to purchase a small home in a growing area at the start of Covid, with a very low interest rate. My homeowners exemption on this home will be expiring in October of this year. I am looking for some insight as to whether it would be worth selling it to avoid the tax hit and invest the $175k of proceeds into a brokerage for a gap account. I am 37, hoping to retire by 50. The rental has a 60k mortgage on an 15year (11 left) at 2% and would cash flow around $1100 per mo...

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Aaron Foye

1 week ago 6 Share

REIT's, specifically "O" 'Realty Income Group'

Hi, I was hoping to hear anyone's thoughts and/or experiences with investing in REIT's. I recently came across this one (ticker symbol 'O'). Do you like REIT's and why? Thanks!

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Anonymous

1 week ago 8 Share

Corporate Bond Funds for Diversification and Income

As a recently early retiree, two corporate bond funds stand out as interesting related to generating income and minimizing principal risk: VCIT and VCSH. Does anyone have any experience with these or in leveraging corporate bond funds like these accomplish a few goals: 1) add to diversification, 2) minimize downside risk (protect principal), and 3) generate some (albeit taxable) income in retirement. ? Thank you!

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JeffNH

1 week ago 7 Share

Large Windfall

I want to respect rule number 2 as much as possible here, but I am genuinely asking for guidance. I have received an $800,000 gift in the beginning of my FI journey. This is unexpected and it immediately makes me feel lightyears ahead of my goals! The issue is, I have not started my taxable account yet. I only have my funs in 401k. I have not finished my expense audit completely, but I have a good idea. Right now this money is burning a hole in my HYSA. FI is $1.3M. I feel like my plan to retire...

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kyleray336

1 week ago 10 Share

Increased investing?

I'm curious if there is anyone else that has actually increased their investing during the down market. Probably more specifically for those that are close to FI or are still accumulating.

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Anonymous

1 week ago 20 Share

Fixed Income and Cash Equivalents

For the Bond/Cash Equivalent part of the portfolio, what are people investing in to mitigate risk and to use for their cash cushion for sequence of return risk? Thanks.

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CreatingMarina

1 week ago 9 Share

Untitled Thread

Wanted some opinions on the best path for retirement savings accounts. To make things simpler we had combined 3 of my wife’s old 401k’s into one traditional IRA with Fidelity. While I like the flexibility of investment options, I’m wondering how optimal this is as no new money is going into the account. Her current 401k is steadily growing and this seems like a job she will be at for at least the next 5 years. Has anyone ever rolled back a traditional IRA into a 401k? Fees are rock bottom in the...

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Taggart77

1 month ago 4 Share

Untitled Thread

Question for those you who are already FI: In the past I've kept a year in cash as a buffer from having to withdraw during market hiccups. Lately, I've heard more people recommending 2 years of cash, and wondering what others here think about that?

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Jud3579

1 month ago 13 Share

Umbrella Insurance and is it avoidable?

Hi. At what net worth should someone pursuing FIRE purchase an umbrella liability policy, and how much additional financial and legal risk do they expose themselves to by relying solely on standard home and auto liability limits? Any way to avoid having yet another insurance product?!

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AA40

1 month ago 8 Share

opinions on direct indexing on platforms like public.com

Hi All- Curious if anyone is investing via directing indexing on a platform like public.com. Any major pitfalls? I know it's slightly more expensive but with the ability to tax harvest seems like it would more than make up for it? Thanks, Eric

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Eric Ruberg

1 month ago 6 Share

Restricted Stock Units

I need a crash course in RSUs. I just got notice that the company I work for will be granting us 60 RSUs, vesting quarterly, starting in January. Anyone have any good resources to point me toward? From googling, my understanding is that the value of the company stock at the time it's vested will be taxed as ordinary income. I plan to sell it as soon as it's vested to cover taxes and reinvest the remaining in VTI. I'm looking for anything I'm missing, whether my basic understanding is correct, an...

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Aathomp90

1 month ago 5 Share

Why not spyi or something similar instead of bonds?

I understand the choosefi world isn’t a fan of bonds, but I found several high paying dividend stocks based off the sp500. Currently paying out 12%. Even if the stock market halves you should still get 6%. Which is more than any bonds. They tend to be newer investments but so far no nav erosion.

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Forgotten

1 month ago 10 Share