Race from $2M to $4M...and Beyond!

[Dicey]

Do you know the "Retired Syd" blog?  She doesn't update very much any more (because she's retired, natch) but the market crashed just after she quit work and her posts from around that time are a reassuring read (of course, the market also recovered very quickly that time, so all turned out fine: but nonetheless she writes some good stuff about the psychology of it).

OMG, another Retired Syd fan!  I loved that blog! I was so happy to see a couple of recent (-ish) updates and to learn that she's still doing well. Here's a link:
https://retiredsyd.typepad.com/

[Bateaux]

Well because of the frothy stock market my liquid assets crossed the $2 million mark, to $2,007,000

On top of that I have another $425,000 in equity.

The Top is In.  The market will promptly crash now.

Sorry for the minor correction, but a crash is scheduled for mid next month when I will be quitting work for good.

Mark your calendars, folks.

I've started the alignment to retire and really want to see some significant crash before quitting.  Working in the Petro/chemical business you know pretty much when things are slowing. The refineries are feeling the China problems as well as the disruption of demographics.  People are driving less miles per person.  I'm in chemical manufacturing and thus far our issues have been lack of raw material supply. We've had major on-site equipment repair and new construction which has temporarily slowed our production.  Demand thus far is strong as well as pricing.  We make polyurethane, inventory is low and demand is still high.  There will be no deep recession until demand for our products levels and drops.  That however doesn't have much to do with panic drops in the market.   Ten to twenty percent swings at this level could be considered chatter and noise.  We aren't seeing that yet because the government and the consumer are spending debt like crazy.  Many of us here have taken advantage of that for quite a while now.  For now our dollars of profit are just as real as their debt.  Who knows how much longer the big Ponzi scheme can go.

[LightTripper]

Do you know the "Retired Syd" blog?  She doesn't update very much any more (because she's retired, natch) but the market crashed just after she quit work and her posts from around that time are a reassuring read (of course, the market also recovered very quickly that time, so all turned out fine: but nonetheless she writes some good stuff about the psychology of it).

OMG, another Retired Syd fan!  I loved that blog! I was so happy to see a couple of recent (-ish) updates and to learn that she's still doing well. Here's a link:
https://retiredsyd.typepad.com/

She is fab!! I just found the updates last week and it was lovely to catch up!

[Dicey]

Do you know the "Retired Syd" blog?  She doesn't update very much any more (because she's retired, natch) but the market crashed just after she quit work and her posts from around that time are a reassuring read (of course, the market also recovered very quickly that time, so all turned out fine: but nonetheless she writes some good stuff about the psychology of it).

OMG, another Retired Syd fan!  I loved that blog! I was so happy to see a couple of recent (-ish) updates and to learn that she's still doing well. Here's a link:
https://retiredsyd.typepad.com/

She is fab!! I just found the updates last week and it was lovely to catch up!

It really helped that she was a bona-fide financial professional and knew what she was talking about. I also loved that she lives in the super HCOLA Bay Area and still made it happen.

[2sk22]

I've started the alignment to retire and really want to see some significant crash before quitting.  Working in the Petro/chemical business you know pretty much when things are slowing. The refineries are feeling the China problems as well as the disruption of demographics.  People are driving less miles per person.  I'm in chemical manufacturing and thus far our issues have been lack of raw material supply. We've had major on-site equipment repair and new construction which has temporarily slowed our production.  Demand thus far is strong as well as pricing.  We make polyurethane, inventory is low and demand is still high.  There will be no deep recession until demand for our products levels and drops.  That however doesn't have much to do with panic drops in the market.   Ten to twenty percent swings at this level could be considered chatter and noise.  We aren't seeing that yet because the government and the consumer are spending debt like crazy.  Many of us here have taken advantage of that for quite a while now.  For now our dollars of profit are just as real as their debt.  Who knows how much longer the big Ponzi scheme can go.

I was just talking to the CEO of the tech startup where I am working. He said that he could still raise additional money quite easily if necessary. And this despite the WeWork debacle and the miserable state of some of the newly public tech-related companies like Uber and Lyft. So there is still a lot of appetite for risk and big money is still sloshing around.

[ysette9]

Well because of the frothy stock market my liquid assets crossed the $2 million mark, to $2,007,000

On top of that I have another $425,000 in equity.

The Top is In.  The market will promptly crash now.

Sorry for the minor correction, but a crash is scheduled for mid next month when I will be quitting work for good.

Mark your calendars, folks.

Congratulations on your impending freedom!!

Do you know the "Retired Syd" blog?  She doesn't update very much any more (because she's retired, natch) but the market crashed just after she quit work and her posts from around that time are a reassuring read (of course, the market also recovered very quickly that time, so all turned out fine: but nonetheless she writes some good stuff about the psychology of it).

I hadn’t heard of the blog before now so thank you for the recommendation. I’ll go check it out now.

[soccerluvof4]

Well because of the frothy stock market my liquid assets crossed the $2 million mark, to $2,007,000

On top of that I have another $425,000 in equity.

The Top is In.  The market will promptly crash now.

Sorry for the minor correction, but a crash is scheduled for mid next month when I will be quitting work for good.

Mark your calendars, folks.

Congratulations on your impending freedom!!

Do you know the "Retired Syd" blog?  She doesn't update very much any more (because she's retired, natch) but the market crashed just after she quit work and her posts from around that time are a reassuring read (of course, the market also recovered very quickly that time, so all turned out fine: but nonetheless she writes some good stuff about the psychology of it).

I hadn’t heard of the blog before now so thank you for the recommendation. I’ll go check it out now.

Yea, thats a new one for me as well. Thanks

[BlueHouse]

I would like to join. 
I'm at $1.999M since Friday and depending on how today ends, I may be ready to join immediately. 

[LightTripper]

Welcome!!

[I'm Fred]

I would like to join. 
I'm at $1.999M since Friday and depending on how today ends, I may be ready to join immediately.

Sell something on Craigslist and put yourself over the top.

[Exflyboy]

Sorry we can't talk to you until you have $2M.. JK.. Welcome..:)

[Bateaux]

I would like to join. 
I'm at $1.999M since Friday and depending on how today ends, I may be ready to join immediately.

The one million Mark was no big deal.  Jumped over the line almost without notice.  To get to two million I pushed, pulled and dragged anything to add up.  I included my cash balance pension, home value, whatever to make the cut.  Finally, nothing but equities are required to count to two million.  You'll be amazed now how fast it starts to build.  Welcome to the advanced class.  From now on, if you so choose, you'll always be a millionaire.  Most likely a many multiple millionaire.  Now you can think of generational wealth, legacy funds and dreamy retirement.

[Bateaux]

Not a very Mustacian day for me.  I went and did it, I  bought a  new bicycle.  I just ordered a Trek Stache 7 mountain bike.  I got it on the 2019 clearance sale and saved about $500.  At nearly a 20% drop in price I bought it. I hope to in 2021, travel on this bike 2,700 miles and 185,000 feet of elevation climbing from the Canadian to Mexican border.  The offroad route is newly established and called the Wild West Route.  FIRE is coming!

Ok.  I love this bike, even though I've only put about 1000 miles on it and almost all on pavement.  So, pavement.  Most of my time on pavement.  I'm turning 3 inch wide and almost 3 feet tall wheels on pavement.  Time for another nonmustacian moment. I have a vintage, but nice road bike.  I do ride it for day trips without gear.  But, it isn't beefy enough for my 6'4" bulk and gear.  I'm going to have to increase the stable by at least one more bike.  I need a road touring bike.  Right now the Trek 520 is at the top of my list.
 The Surly Long Haul Disc Trucker, Kona Sutra and Salsa Marrakesh are also in consideration.  Hopefully I will do all or part of the 444 mile Natchez Trace Parkway this Spring.  Anybody own any of these bikes?  Suggestions?

[LightTripper]

I don't want to distract from the bike question, but I have another question I'm going to throw out in parallel!

I've been reading ERN SWR stuff on glide path, and it kind of appeals to me given current stock market valuations.  Coincidentally I am very underinvested at present, so I can actually keep moving into equities and still have a glide path towards equities during my early retirement years if I don't go crazy...
https://earlyretirementnow.com/2017/09/13/the-ultimate-guide-to-safe-withdrawal-rates-part-19-equity-glidepaths/

But just wondered if anybody else here is doing this - or more generally how you are managing asset allocation?

[2sk22]

I don't want to distract from the bike question, but I have another question I'm going to throw out in parallel!

I've been reading ERN SWR stuff on glide path, and it kind of appeals to me given current stock market valuations.  Coincidentally I am very underinvested at present, so I can actually keep moving into equities and still have a glide path towards equities during my early retirement years if I don't go crazy...
https://earlyretirementnow.com/2017/09/13/the-ultimate-guide-to-safe-withdrawal-rates-part-19-equity-glidepaths/

But just wondered if anybody else here is doing this - or more generally how you are managing asset allocation?

I definitely have been influenced by the concept of a glide path and have reduced my household's stock exposure from approximately 80% to 60% progressively over the past couple of years.

One thought that has gone through my mind however is that perhaps I am being too cautious. Although I am retiring this year, my (highly paid) wife is planning to work as long as she can (which could be five years or more). Consequently, I do not expect to have to draw on our savings for a bit, if all goes well. So perhaps my move to reduce equity exposure is premature? On the other hand, I feel a lot happier this way...

[jeroly]

I don't want to distract from the bike question, but I have another question I'm going to throw out in parallel!

I've been reading ERN SWR stuff on glide path, and it kind of appeals to me given current stock market valuations.  Coincidentally I am very underinvested at present, so I can actually keep moving into equities and still have a glide path towards equities during my early retirement years if I don't go crazy...
https://earlyretirementnow.com/2017/09/13/the-ultimate-guide-to-safe-withdrawal-rates-part-19-equity-glidepaths/

But just wondered if anybody else here is doing this - or more generally how you are managing asset allocation?

Sounds like you’re talking about a reverse glide path - a glide path generally refers to decreasing equity exposure as you get older.

I’ve been on a reverse glide path more or less since January 2018. I dropped to 36% equities. I have been taking my withdrawals from the fixed income side while reinvesting equity dividends. Thanks to Mr. Market, plus a transfer of 4% into ex-US small-caps to diversify my equity portfolio, it’s already back up to over 50%. I plan to let it run for a while.

[Dicey]

Not a very Mustacian day for me.  I went and did it, I  bought a  new bicycle.  I just ordered a Trek Stache 7 mountain bike.  I got it on the 2019 clearance sale and saved about $500.  At nearly a 20% drop in price I bought it. I hope to in 2021, travel on this bike 2,700 miles and 185,000 feet of elevation climbing from the Canadian to Mexican border.  The offroad route is newly established and called the Wild West Route.  FIRE is coming!

Ok.  I love this bike, even though I've only put about 1000 miles on it and almost all on pavement.  So, pavement.  Most of my time on pavement.  I'm turning 3 inch wide and almost 3 feet tall wheels on pavement.  Time for another nonmustacian moment. I have a vintage, but nice road bike.  I do ride it for day trips without gear.  But, it isn't beefy enough for my 6'4" bulk and gear.  I'm going to have to increase the stable by at least one more bike.  I need a road touring bike.  Right now the Trek 520 is at the top of my list.
 The Surly Long Haul Disc Trucker, Kona Sutra and Salsa Marrakesh are also in consideration.  Hopefully I will do all or part of the 444 mile Natchez Trace Parkway this Spring.  Anybody own any of these bikes?  Suggestions?

Paging @Retire-Canada, @FIRE_at_45, @Chaplin, @Stasher... hmmm, there are others, but this crew should set you on the right path...

[ysette9]

On th reverse glidepath discussion that is nominally what our plan is. We are at 60% equities now since I will be FIREing in a couple of weeks (!!) and my husband won’t be too far behind me.

In practice what I’d really like to do is follow the spreadsheet companion to McClung’s book Living Off Your Money since his analysis says the preferred method he pulled out of his absolute textbook of modeling is better than even the reverse glidepath.

[LightTripper]

I hadn't come across that book yet - is it worth buying do you think?  I could see if the library have it but I'm thinking it's quite unlikely, and looks like it might be one you would want to refer back to :)

[Dancin'Dog]

I am interested in what others' views of AA equity/bond percentages as their NW gets into the "beyond" levels? 


My feeling has been that keeping a cash cushion of x-years and 100% equity index funds will likely perform as well over time as complicating it adding bonds & real estate to the mix, which would require regular rebalancing (not to mention the variety of other concerns with real estate).


Is there a NW level that you feel this becomes as good a plan as any?  If so, where do you see the threshold for yourself?




Maybe I'm being naive or lazy, but I just want it to be simple.  Feel free to set me straight if I need it.  ;)

[jeroly]

I am interested in what others' views of AA equity/bond percentages as their NW gets into the "beyond" levels? 


My feeling has been that keeping a cash cushion of x-years and 100% equity index funds will likely perform as well over time as complicating it adding bonds & real estate to the mix, which would require regular rebalancing (not to mention the variety of other concerns with real estate).


Is there a NW level that you feel this becomes as good a plan as any?  If so, where do you see the threshold for yourself?




Maybe I'm being naive or lazy, but I just want it to be simple.  Feel free to set me straight if I need it.  ;)

There’s a report from Credit Suisse that describes the investments of their high net worth and ultra high net worth customers.  They seem to be at around 45/45/10 where the 10 is “other” (gold, alternatives, etc).

I hear you on your thinking about ramping up your stock allocation in order to maximize long term return. That makes super duper sense to me especially if the X in x-years is close to your life expectancy.  However, it’s not all about maximizing expected return... you also want to sleep well at night.

[oldladystache]

Seems to me that once you have 15 years expenses in stocks and 15 years expenses in bonds it doesn't make any difference what you do with the rest of your money.

[lhamo]

Not a very Mustacian day for me.  I went and did it, I  bought a  new bicycle.  I just ordered a Trek Stache 7 mountain bike.  I got it on the 2019 clearance sale and saved about $500.  At nearly a 20% drop in price I bought it. I hope to in 2021, travel on this bike 2,700 miles and 185,000 feet of elevation climbing from the Canadian to Mexican border.  The offroad route is newly established and called the Wild West Route.  FIRE is coming!

Ok.  I love this bike, even though I've only put about 1000 miles on it and almost all on pavement.  So, pavement.  Most of my time on pavement.  I'm turning 3 inch wide and almost 3 feet tall wheels on pavement.  Time for another nonmustacian moment. I have a vintage, but nice road bike.  I do ride it for day trips without gear.  But, it isn't beefy enough for my 6'4" bulk and gear.  I'm going to have to increase the stable by at least one more bike.  I need a road touring bike.  Right now the Trek 520 is at the top of my list.
 The Surly Long Haul Disc Trucker, Kona Sutra and Salsa Marrakesh are also in consideration.  Hopefully I will do all or part of the 444 mile Natchez Trace Parkway this Spring.  Anybody own any of these bikes?  Suggestions?

We considered the Surly/Kona/Salsa options but ended up going with the REI adv 1.1 -- largely because we were not sure they would be good fits for us and REI has a very generous 1 year no questions asked return policy, vs. the 30 days of all the other local bike shops.  I have been very happy with mine, DH less so because he has a funny body shape and has had trouble getting the bike fitted properly -- he keeps ending up with pain in either his knees or his back. 

One thing we have been warned about, but have not yet experienced, is that if you have trouble with the disc brakes and are not near an REI it may take time to get them fixed.  Not sure how available the parts are outside of REI.  But that is only an issue for long-distance or international trips for us -- we have several REI stores near us, including the Seattle flagship. 

We stacked a $200 bonus for signing up for the REI credit card on top of the dividend and a special dividend bonus weekend to save about $600 off the list price.  You can do even better if you manage to time the purchase for one of their annual sales (first half of May is the next one, I think -- the co-op series is typically 20-25% off during those two weeks)

Oh, one nice bonus of the REI credit card -- it has cell phone insurance built in up to $600/phone, $1000/year as long as you pay the phone bill with the card.  Haven't had to use it yet, but nice perk.  I can PM you a referral that would get you an extra bonus (I think a $20 gift card) if you want to apply for one.

[ysette9]

I hadn't come across that book yet - is it worth buying do you think?  I could see if the library have it but I'm thinking it's quite unlikely, and looks like it might be one you would want to refer back to :)

My library didn’t have it and has requested every request I have ever made for new books, so I ended up buying it. I’m glad I did because I did a lot of underlining and noting in the columns. It feels more like a textbook, something I want to go back and reference in the future.

[ysette9]

I am interested in what others' views of AA equity/bond percentages as their NW gets into the "beyond" levels? 


My feeling has been that keeping a cash cushion of x-years and 100% equity index funds will likely perform as well over time as complicating it adding bonds & real estate to the mix, which would require regular rebalancing (not to mention the variety of other concerns with real estate).


Is there a NW level that you feel this becomes as good a plan as any?  If so, where do you see the threshold for yourself?




Maybe I'm being naive or lazy, but I just want it to be simple.  Feel free to set me straight if I need it.  ;)

There’s a report from Credit Suisse that describes the investments of their high net worth and ultra high net worth customers.  They seem to be at around 45/45/10 where the 10 is “other” (gold, alternatives, etc).

I hear you on your thinking about ramping up your stock allocation in order to maximize long term return. That makes super duper sense to me especially if the X in x-years is close to your life expectancy.  However, it’s not all about maximizing expected return... you also want to sleep well at night.

There is also an aspect of “so what?” once you have passed Enough. I can see it both ways: you can take more risk because you have enough but you also have no reason to chase returns, as you already have enough.

[itchyfeet]

Given you really have minimal risk of going bust you may as well invest everything in stocks and shoot for max returns.

[Dicey]

I hadn't come across that book yet - is it worth buying do you think?  I could see if the library have it but I'm thinking it's quite unlikely, and looks like it might be one you would want to refer back to :)

My library didn’t have it and has requested every request I have ever made for new books, so I ended up buying it. I’m glad I did because I did a lot of underlining and noting in the columns. It feels more like a textbook, something I want to go back and reference in the future.

Is that a Stupid Spellcheck Substitution for "rejected"? Have you tried getting things through the Link Plus system? It takes longer, but they draw from a much larger pool and usually come through.

[Bateaux]

Anybody own any of these bikes?  Suggestions?

I have a Surly Krampus similar to the Stache and a Surly Long Haul Trucker touring bike. Personally I'd just swap different tires on the Stache and tour on it. Surly Knards roll well on pavement/hardpacked dirt trails. If you want to be able to switch modes quickly and easily get a second wheelset and keep the Knards on the road wheels and your more aggressive dirt tires on the other wheels for trail riding.

I love the Krampus for crushing road miles and once I gave it a try found that it works so well I rarely use my LHT or my dedicated road bike [Surly Straggler]. I'm definitely selling the LHT and if I don't use the Straggler more in FIRE it's going as well. The Krampus is staying for sure.

 
The Krampus is a beast!  I know you must love it.  I highly considered the ECR when getting my Stache.  I really want a road bike based steel frame drop bar bike.  I want it to be light gravel capable, but mostly a pavement roller.  I would load up that LHT right now and head to Florida.   Thanks for the feedback.

[Threshkin]

Given you really have minimal risk of going bust you may as well invest everything in stocks and shoot for max returns.

Glide path?  We don't need no stinking glide path.

I have roughly 10% in cash and the remainder is 95% equities.  The last 5% is bonds and other random investments.  I count my eventual SS income as the fixed income portion of my portfolio.  The cash is available for emergencies and oh shit events.  Our WR is <2% so I am not too worried about a drop. We can coast for a long time on the cash reserves.

It this the most optimal allocation?  Not really but it keeps me happy.

[Bateaux]

Not a very Mustacian day for me.  I went and did it, I  bought a  new bicycle.  I just ordered a Trek Stache 7 mountain bike.  I got it on the 2019 clearance sale and saved about $500.  At nearly a 20% drop in price I bought it. I hope to in 2021, travel on this bike 2,700 miles and 185,000 feet of elevation climbing from the Canadian to Mexican border.  The offroad route is newly established and called the Wild West Route.  FIRE is coming!

Ok.  I love this bike, even though I've only put about 1000 miles on it and almost all on pavement.  So, pavement.  Most of my time on pavement.  I'm turning 3 inch wide and almost 3 feet tall wheels on pavement.  Time for another nonmustacian moment. I have a vintage, but nice road bike.  I do ride it for day trips without gear.  But, it isn't beefy enough for my 6'4" bulk and gear.  I'm going to have to increase the stable by at least one more bike.  I need a road touring bike.  Right now the Trek 520 is at the top of my list.
 The Surly Long Haul Disc Trucker, Kona Sutra and Salsa Marrakesh are also in consideration.  Hopefully I will do all or part of the 444 mile Natchez Trace Parkway this Spring.  Anybody own any of these bikes?  Suggestions?

We considered the Surly/Kona/Salsa options but ended up going with the REI adv 1.1 -- largely because we were not sure they would be good fits for us and REI has a very generous 1 year no questions asked return policy, vs. the 30 days of all the other local bike shops.  I have been very happy with mine, DH less so because he has a funny body shape and has had trouble getting the bike fitted properly -- he keeps ending up with pain in either his knees or his back. 

One thing we have been warned about, but have not yet experienced, is that if you have trouble with the disc brakes and are not near an REI it may take time to get them fixed.  Not sure how available the parts are outside of REI.  But that is only an issue for long-distance or international trips for us -- we have several REI stores near us, including the Seattle flagship. 

We stacked a $200 bonus for signing up for the REI credit card on top of the dividend and a special dividend bonus weekend to save about $600 off the list price.  You can do even better if you manage to time the purchase for one of their annual sales (first half of May is the next one, I think -- the co-op series is typically 20-25% off during those two weeks)

Oh, one nice bonus of the REI credit card -- it has cell phone insurance built in up to $600/phone, $1000/year as long as you pay the phone bill with the card.  Haven't had to use it yet, but nice perk.  I can PM you a referral that would get you an extra bonus (I think a $20 gift card) if you want to apply for one.

Wow that's a sweet deal.  I have looked at the REI bikes several times online.  We have a Tampa store so I could pick one up near Florida home.  Most likely unless a great used deal comes about on an extra large, I'll be using a local New Orleans shop.  I know a guy there that races bikepacking races and gas built, raced and sold a ton of bikes.  So I'm going to use his knowledge as best as possible.   Have fun out there!

[LightTripper]

I hadn't come across that book yet - is it worth buying do you think?  I could see if the library have it but I'm thinking it's quite unlikely, and looks like it might be one you would want to refer back to :)

My library didn’t have it and has requested every request I have ever made for new books, so I ended up buying it. I’m glad I did because I did a lot of underlining and noting in the columns. It feels more like a textbook, something I want to go back and reference in the future.

Thanks!! I have some Amazon points from a work thing so I might treat myself!!

[ysette9]

I hadn't come across that book yet - is it worth buying do you think?  I could see if the library have it but I'm thinking it's quite unlikely, and looks like it might be one you would want to refer back to :)

My library didn’t have it and has requested every request I have ever made for new books, so I ended up buying it. I’m glad I did because I did a lot of underlining and noting in the columns. It feels more like a textbook, something I want to go back and reference in the future.

Is that a Stupid Spellcheck Substitution for "rejected"? Have you tried getting things through the Link Plus system? It takes longer, but they draw from a much larger pool and usually come through.

Arg, yes. Good catch. I meant rejected.

[ysette9]

Given you really have minimal risk of going bust you may as well invest everything in stocks and shoot for max returns.

Glide path?  We don't need no stinking glide path.

I have roughly 10% in cash and the remainder is 95% equities.  The last 5% is bonds and other random investments.  I count my eventual SS income as the fixed income portion of my portfolio.  The cash is available for emergencies and oh shit events.  Our WR is <2% so I am not too worried about a drop. We can coast for a long time on the cash reserves.

It this the most optimal allocation?  Not really but it keeps me happy.

But come on, dude. With a sub 2% withdrawal date you can keep your stash in beanie babies and be fine. ;-)

[Threshkin]

Given you really have minimal risk of going bust you may as well invest everything in stocks and shoot for max returns.

Glide path?  We don't need no stinking glide path.

I have roughly 10% in cash and the remainder is 95% equities.  The last 5% is bonds and other random investments.  I count my eventual SS income as the fixed income portion of my portfolio.  The cash is available for emergencies and oh shit events.  Our WR is <2% so I am not too worried about a drop. We can coast for a long time on the cash reserves.

It this the most optimal allocation?  Not really but it keeps me happy.

But come on, dude. With a sub 2% withdrawal date you can keep your stash in beanie babies and be fine. ;-)

But that is what this thread is all about isn't it?  Humble bragging with an XL stache?

[Exflyboy]

Hey now, no beating up on those with sub 2% W rates now..;)

I did let DW buy a USED $1700 mountain bike this week!

[Dancin'Dog]

Given you really have minimal risk of going bust you may as well invest everything in stocks and shoot for max returns.

Glide path?  We don't need no stinking glide path.

I have roughly 10% in cash and the remainder is 95% equities.  The last 5% is bonds and other random investments.  I count my eventual SS income as the fixed income portion of my portfolio.  The cash is available for emergencies and oh shit events.  Our WR is <2% so I am not too worried about a drop. We can coast for a long time on the cash reserves.

It this the most optimal allocation?  Not really but it keeps me happy.

But come on, dude. With a sub 2% withdrawal date you can keep your stash in beanie babies and be fine. ;-)

But that is what this thread is all about isn't it?  Humble bragging with an XL stache?

Of course people in many of the achievement threads are proud, excited, and tend to brag at times.  But I'm always here hoping to learn something too.


I really was curious about whether folks changed their AA ratios as their wealth had grown.  I realize everyone has different needs and goals, depending on any number of factors.


Whenever I read the AA ratios other people online post I'm always wondering what factors they base their decision on.  Just seeing 50/40/10% or 80/20 or 100% means nothing without some context.  What is their situation compared to mine?  What's their NW, age, COL, number of children, their risk tolerance, etc.?   (I'm not saying that I want to know those things, but we all realize our circumstances are varied.)


I'm not asking as a way to brag, but I've assumed that as one's wealth accumulates beyond a certain point their goals & mindset would shift away from their personal needs and more towards philanthropy and/or their legacy.


I've read the Buffett quote about instructing his wife's trustee to place 90% of the funds into an S&P index fund and 10% into government bonds. 
I've seen charts, graphs, and research articles showing that 100% equities have performed as well or better than various stock/bond allocations over long timeframes. 


If a cash/bond cushion is there to help you weather extended market corrections & crashes, why would if need to be larger than your expected needs?  You don't necessarily buy a larger home as each million accumulates, so why more bonds?  (Does that annology make sense?)  That's like being over insured, right?

[Bateaux]

Hey now, no beating up on those with sub 2% W rates now..;)

I did let DW buy a USED $1700 mountain bike this week!

Hey!  That's great.  I was trying to have a nice bike discussion and it all turned into glidepaths.  Y'all went like three days without a dang post.  Now everybody wants to talk finance.  We all got 2 million+ bucks dammit.  You done won the battle.  Now lets ride our damn bikes!

[ysette9]

I do ride my bike! Every day in fact. I my ebike.

On thé AA discussion we are at 60/40 now but plan to ramp back up over time. It is just hedging against SOR risk right now that keeps us more in bonds.

[Herbert Derp]

Finally made it to this thread! I wasn't expecting to be here so soon, but I fully expect to be kicked out the door by the impending market correction. In any case, stonks! It's good to be a multimillionaire!

11/23/2012: $45,000.00
08/03/2013: $100,000.00
01/01/2016: $408,896.04
01/01/2017: $617,283.09
06/06/2017: $758,104.40
10/15/2017: $856,488.71
11/18/2017: $929,536.54
11/27/2017: $944,395.35
12/17/2017: $956,928.07
01/01/2018: $968,307.87
01/05/2018: $987,442.11
01/08/2018: $996,215.32
01/09/2018: $998,819.79
01/10/2018: $999,079.24
01/11/2018: $1,003,101.34
02/01/2018: $1,061,732.89
02/28/2018: $1,062,750.48
05/18/2018: $1,149,432.76
06/06/2018: $1,203,026.63
07/11/2018: $1,232,435.26
08/02/2018: $1,269,509.32
09/01/2018: $1,326,015.73
03/05/2019: $1,327,833.14
06/10/2019: $1,462,549.50
07/07/2019: $1,519,162.03
12/14/2019: $1,628,320.78
01/01/2020: $1,705,284.27
02/02/2020: $1,838,397.87
02/13/2020: $1,961,653.87
02/19/2020: $2,000,505.43

[LightTripper]

Hey now, no beating up on those with sub 2% W rates now..;)

I did let DW buy a USED $1700 mountain bike this week!

Hey!  That's great.  I was trying to have a nice bike discussion and it all turned into glidepaths.  Y'all went like three days without a dang post.  Now everybody wants to talk finance.  We all got 2 million+ bucks dammit.  You done won the battle.  Now lets ride our damn bikes!

Sorry Bateaux

[2sk22]

Finally made it to this thread! I wasn't expecting to be here so soon, but I fully expect to be kicked out the door by the impending market correction. In any case, stonks! It's good to be a multimillionaire!

11/23/2012: $45,000.00
...
02/19/2020: $2,000,505.43

Wow - there must be quite a story behind this! How did you achieve this?

[Herbert Derp]

Wow - there must be quite a story behind this! How did you achieve this?

Basically, I got a high paying job straight out of college and then started saving and investing almost everything from that point on. I learned to live extremely frugally. My annual expenses have averaged less than $10K for my entire working career, but my income is many times that.

I've been journaling for most of this time if you want to read more:
https://forum.mrmoneymustache.com/journals/herbert-derp's-frugal-adventures/

[UnleashHell]

I did let DW buy a USED $1700 mountain bike this week!

let...

hahahaha

[2sk22]

Wow - there must be quite a story behind this! How did you achieve this?

Basically, I got a high paying job straight out of college and then started saving and investing almost everything from that point on. I learned to live extremely frugally. My annual expenses have averaged less than $10K for my entire working career, but my income is many times that.

I've been journaling for most of this time if you want to read more:
https://forum.mrmoneymustache.com/journals/herbert-derp's-frugal-adventures/

Caught up with your journal and it is quite an epic :-) Congratulations on achieving this level so quickly!

[AdrianC]

Given you really have minimal risk of going bust you may as well invest everything in stocks and shoot for max returns.

Glide path?  We don't need no stinking glide path.

But come on, dude. With a sub 2% withdrawal date you can keep your stash in beanie babies and be fine. ;-)

But that is what this thread is all about isn't it?  Humble bragging with an XL stache?

:-)

80% equities here. But the 20% covers >10 years of 3 kids-in-grade-school level expenditures. Yeah, we don't need to take risk...we have the capacity to take risk.

The non-equities bit is a mix of cash, ibonds and Vanguard total bond.

[BlueHouse]

Sorry we can't talk to you until you have $2M.. JK.. Welcome..:)

I'm in!  Officially.  Yesterday my account was fluctuating and I checked it multiple times to see if I could come in.  Wasn't until I checked this morning (after the index funds update) that I knew I was here.  Whew.  Just barely! 

... You'll be amazed now how fast it starts to build.  Welcome to the advanced class.  From now on, if you so choose, you'll always be a millionaire.  Most likely a many multiple millionaire.  Now you can think of generational wealth, legacy funds and dreamy retirement.

this is great inspiration.  Thank you. 

Sell something on Craigslist and put yourself over the top.

Now that I'm here, I will do this if needed to stay in.  I am loathe to go backwards. 

[BlueHouse]

Wow - there must be quite a story behind this! How did you achieve this?

Basically, I got a high paying job straight out of college and then started saving and investing almost everything from that point on. I learned to live extremely frugally. My annual expenses have averaged less than $10K for my entire working career, but my income is many times that.

I've been journaling for most of this time if you want to read more:
https://forum.mrmoneymustache.com/journals/herbert-derp's-frugal-adventures/

That is great progress!    Frugality pays off quickly. 

[Dancin'Dog]

Herbert Derp & BlueHouse,


Welcome to the club.  Your bicycle discount cards should be arriving shortly.  ;) 

[ysette9]

Sorry we can't talk to you until you have $2M.. JK.. Welcome..:)

I'm in!  Officially.  Yesterday my account was fluctuating and I checked it multiple times to see if I could come in.  Wasn't until I checked this morning (after the index funds update) that I knew I was here.  Whew.  Just barely! 

... You'll be amazed now how fast it starts to build.  Welcome to the advanced class.  From now on, if you so choose, you'll always be a millionaire.  Most likely a many multiple millionaire.  Now you can think of generational wealth, legacy funds and dreamy retirement.

this is great inspiration.  Thank you. 

Sell something on Craigslist and put yourself over the top.

Now that I'm here, I will do this if needed to stay in.  I am loathe to go backwards.

Just stop looking closely for the next several months, or until you are sure you are well over. :)

My sister firmly believes in the “bury your head in the sand” approach to her investments as she knows if she looked all the time it would stress her out. So she invests regularly but otherwise ignores it.

[Exflyboy]

Finally made it to this thread! I wasn't expecting to be here so soon, but I fully expect to be kicked out the door by the impending market correction. In any case, stonks! It's good to be a multimillionaire!

11/23/2012: $45,000.00
08/03/2013: $100,000.00
01/01/2016: $408,896.04
01/01/2017: $617,283.09
06/06/2017: $758,104.40
10/15/2017: $856,488.71
11/18/2017: $929,536.54
11/27/2017: $944,395.35
12/17/2017: $956,928.07
01/01/2018: $968,307.87
01/05/2018: $987,442.11
01/08/2018: $996,215.32
01/09/2018: $998,819.79
01/10/2018: $999,079.24
01/11/2018: $1,003,101.34
02/01/2018: $1,061,732.89
02/28/2018: $1,062,750.48
05/18/2018: $1,149,432.76
06/06/2018: $1,203,026.63
07/11/2018: $1,232,435.26
08/02/2018: $1,269,509.32
09/01/2018: $1,326,015.73
03/05/2019: $1,327,833.14
06/10/2019: $1,462,549.50
07/07/2019: $1,519,162.03
12/14/2019: $1,628,320.78
01/01/2020: $1,705,284.27
02/02/2020: $1,838,397.87
02/13/2020: $1,961,653.87
02/19/2020: $2,000,505.43

You went from basically nothing to $2M in 8 years!.. Geez, what do you do.... Rob banks?...:)

Seriously thats a heck of a rise. Now clearly you have a monster salary so if you work another 10 years then.....