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About ScottO

  • Birthday 09/06/1982

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    Santa Clara, CA

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  1. ScottO


    Cheers for board support!
  2. Excluding every company I disagree with or wouldn't support from my investments wouldn't leave many. There's probably not an industry, sector or company I really care for. Warren Buffet talked about the "American tailwind" during his last shareholder meeting and Bogle would talk about buying the US market in nationalistic ways. I'd like to feel like my money in VTSAX goes toward supporting the home team somehow, but trickle down economics has been largely disproved. https://www.bloomberg.com/news/articles/2020-07-22/all-that-dumb-index-money-may-be-creating-worse-run-companies (that's a fun recent article) Our investment portfolio certainly doesn't reflect our values. They are more aligned with our financial goals by taking advantage of capitalism(which is basically taking advantage of people.) I have colleagues who haven't utilized the 403b/457 program at our district because finding ESG funds that align with their views is so difficult. Investing requires some cognitive dissonance. If you've been diggin' MMM I would highly suggest reading "Small Is Beautiful" by E.F. Schumacher and "Buddhist Economics" by Clair Brown: https://en.wikipedia.org/wiki/Small_Is_Beautiful https://en.wikipedia.org/wiki/Buddhist_economics The topics of money, environment and ethics get really interesting when put together. I also started reading "The Value of Nothing" by Raj Patel, but haven't finished it yet. https://en.wikipedia.org/wiki/BerkShares (local currency - cool initiative from Schumacher) Being in tech and seeing the amount of trash it generates has really made me not wild about electric vehicles. If people begin replacing cars like they do cell phones, we're in trouble. There have already been stories on Tesla owners who's cars have gone out of warranty and are no longer receiving support: https://youtu.be/tI1Ord5GsQI I still have two mid-1980's Toyotas, but both have their batteries disconnected as 99% of my commuting lately has been by bicycle. Gas < Electric < Human Power (not soylent green) Reducing consumption is great.
  3. FITLX and FNIDX have low expense ratios. Aligning where your money goes with your values is noble, but admittedly difficult to accomplish through index investing. The two funds above are the bulk of my Roth 403b elections for when I decide to utilize that account.
  4. I appreciate Bogle's work too much to jump ship(I'm such a Vanguard supporter that I'm using nautical references.) Taxable 100% VTSAX Roth IRA 60/40 VTSAX/VTIAX 403b 54/36/7/3 VTSAX/VTIAX/VBTLX/VTABX 457b 10/90 VSMPX/SDBA(54/36/7/3 VTSAX/VTIAX/VBTLX/VTABX) and "KI" is the key to FI
  5. It looked expensive for what it was, like it was built to slowly lose money over time and not even maintain its value. It's ok to make moves slowly. Mathematics may dictate what's optimal, but if you aren't comfortable with the decisions you won't stick with them. Gaining an understanding of why we're recommending certain things also takes time. Finance is a strange language at first. I'm an advocate for SWAN portfolios, which are the ones that allow you to "sleep well at night." You're doing well so far making steps toward improvements - putting in more effort than the average. Ed's asking questions that'll give a clearer picture to make customized suggestions... or he just wanted to let us all know he's a single millionaire 😋
  6. ScottO

    YTD Report

    Inclusive public spaces are important. Monuments which honor former slave owners and murderers of Native Americans aren't something I enjoy seeing, so I'm fine if they are taken down by any means necessary. Those represented are still in the history books, but they don't need to be a part of the national decor. There's far better art that could be put up in the now empty spaces which wouldn't stir up reminders and feelings of the oppression of their ancestors.
  7. Maybe once a year you rebalance? Regular contributions keep allocations in line for the most part. You'd be surprised how little there is to do when you start managing things for yourself. It may feel intense for a month or two, but becomes normal real fast. Think of what kind of decisions your management person asks you about currently... "Do you want to contribute more?" Might be the only thing you hear. Despite being on 403bwise and reading finance stuff, I don't make any significant investment changes. After the accounts are set up, you focus on the business of living life. Vanguard will email you the forms to rollover the IRA and help you a little bit with the process. I did that with my old American Funds IRA. If possible make sure no one sends you a check. Once you touch the money there's a higher likelihood of it becoming a taxable event.
  8. It's hard to tell what the fees on the SDBA would amount to. Contacting Schwab or a VALIC rep might answer a few things: http://publish.gwinnett.k12.ga.us/gcps/wcm/connect/a7b3aa3e-eea1-4786-b173-7c70ae2bc08c/2020.03.31+Annual+Participant+Fee+Disclosure+403b.pdf?MOD=AJPERES At a minimum it would cost you $50/yr for the SDBA. Maybe there's someone here with a similar setup? I use an SDBA with my CalSTRS Pension2 457 and it's not intuitive: $50 annual cost. At first I was going to have to pay a fee per transaction until I spoke with someone about setting up a systematic mutual fund purchase. I had to pay $15 (I think) for each of the four funds I started out with, but after the systematic setup was established, that fee was no longer imposed. Over arching administrative fees still apply (.25% in my case.) I have to manually transfer money from an equivalent of VINIX into the SDBA prior to the 15th of each month(when the systematic purchase is triggered.) I don't have to do any of that with my Vanguard 403b... which reminds me that I need to hassle my district again for better options. I cut them some slack for the first few months of the shelter in place. Best of luck! Great work pursuing all of this! It'll pay dividends which will compound over time!
  9. Being 100% in stocks can be a wild ride, as they are more volatile than bonds. $100k in stocks after a 40% drop would be valued at $60K, the sudden drop can be unnerving if you're not already trusting in the market and comfortable with the long term "buy and hold" strategy. It's worth reading Bogle's Little Book of Common Sense Investing and A Random Walk Down Wall Street: https://www.worldcat.org/title/little-book-of-common-sense-investing-the-only-way-to-guarantee-your-fair-share-of-stock-market-returns/oclc/1005001379/editions?referer=di&editionsView=true https://www.worldcat.org/title/random-walk-down-wall-street/oclc/1139648127/editions?referer=di&editionsView=true Vanguard doesn't advocate for being more than 90% in stocks. They don't see the benefit in relation to the added risk. Having a bond allocation smooths the ride and allows for rebalancing, but it can be seen as leaving money on the sidelines. $6k is the max for an IRA. It changes each year. 70K - 12k = 58k... so then whatever you're making above $40,126 is being taxed at 22%... every $1 dollar you put in your pocket, it's actually .78 cents (and even less depending on state taxes.) If you put those dollars into a tax deferred account, they are whole dollars that earn you compounding money.
  10. If the fees are the same, the 457 has friendlier withdrawal options(no 10% penalty) if you're no longer with your employer and in need of the money. I would put all my eggs in that basket. Without knowing your total household income and tax bracketry I wouldn't know how to suggest your division of pre-tax to post-tax. If you're married, it looks like you want to aim for dollars your earn over ~$105k to stay out of the 22% bracket and go in to pre-tax accounts. Single, ~$52k. With anything below, you may want to consider post-tax, Roth, accounts. You'd pay the 12% on that earned income today, but nothing years from now. Things come out pretty close regardless of how you place your bets on your future existence though. There's a calculator in this article you can play with: https://www.nerdwallet.com/blog/investing/roth-ira/roth-tops-traditional-iras-up-to-six-figures/
  11. That's a great line. I'm 37 and my investments are 90/10 stock/bond. Stocks are 60/40 US/International. I keep it similar to Vanguard's Target 2045 Fund: https://investor.vanguard.com/mutual-funds/profile/portfolio/vtivx The options you have aren't the best. I wonder if your could petition you school board or payroll department to get better ones. 100% VINIX looks wild until you start looking at the other options. BRHYX looks like garbage as a bond fund. TRPMX is pretty much the same allocation as VTIVX, but the fees are 6x higher that what I'd pay for the institutional class shares. 8x higher with the added administration fee. If you contribute less than $6k/yr you could do an IRA anywhere, like Fidelity or Vanguard.
  12. Meet with the manager, but print out the two suggested portfolios from Tony and I. Ask for feedback on why two strangers on a forum would have recommended such similar allocations and have a discussion. Question everything. When I was looking for a 457 vendor, I met with salespeople, but I would always bring a printout of what the best information I had at the time was. I would ask why what I had wasn't the best (in their view) and they were honest in admitting that their company couldn't match the low cost. I even got a few other tips before the meetings would end early 😛 Sign up for a 403bwise event. Toward the end of each one there's a Q&A session where you could ask this question as well. Talk to everyone, make up your own mind.
  13. At least you have some low cost options with Vanguard. You can see their lower net expense ratios among the available funds. 40% VINIX - S&P 500 10% VIEIX - US Extended Stock 30% VTSNX - Total International Stock 20% VBTIX - Total US Bond ^ Something like that would be a good starting point, but keep doing your homework.
  14. FIRE is pretty wild in parts and can be practiced to the extreme, but it's really a throwback to America's old fashioned values of thrift and frugality. A time before we were all labeled as "consumers." "Your Money or Your Life" by Vicki Robin is a great light introduction to FIRE, conscious spending and feelings surrounding money. I just posted a video in another thread with a good comment about there being a finite amount you really need to learn about "financial literacy." It's not a never ending insurmountable topic. You could pick up the bulk of the information in a couple weeks/months, then go about the business of living your life with that added knowledge that will keep you from being taken advantage of.
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