I’m trying to rebalance now, and I’m finding taxes to be a pretty significant issue. Things are pretty out of whack considering stock market growth and low interest rates, and I’ve basically done all I can with IRAs and 529s to move in the right direction.
And I don’t have enough room to buy to rebalance and get back to the right numbers.
I think I have to bite the bullet already and just sell and take some gains.
Did it. Caused taxable events. Hate it.
If you are rebalancing a Roth/IRA/401k you shouldn’t have any taxable events since it has tax free growth. Are you rebalancing your taxable accounts? I wouldn’t necessarily rabalance with those - I’d adjust for them in your tax advantaged accounts instead and spare yourself the fees/tax burden. Instead, reallocate any new money in a taxable account to help rebalance instead of sell.
Right - I fully agree, and I’ve been rebalancing by using new money and changing tax-fee accounts for years. But now I’m out. My large US and small US are just too far out of whack.
99% of my net worth is in my antiques and art collection. aside from that…
40% real estate
40% business holdings
20% cash (and swing trading)
total estimated net worth $100million+
my art gallery isn’t for sale so essentially i have a million bucks
With portfolio marking skills like that, you should run a hedge fund ;).
There IS no coverage. Go read his posts within the last 24 hours. He’s got like 10 different lives that he is simultaneously living out on here.
Can you point me to some coverage that isn’t you?
well for one, this past emmy awards ceremony. that was all me.
i know paris hilton too.
I’m not sure I understand what you’re saying.
well, people sub-attack me all the time. already dealt with some of that and i’ve only been here a day. likewise, people sub-fan me all the time. people on tv, people in business, lots of people.
pretty obvious if you pay attention.
I’m not sure if you’re referring to me. If so, I’d like you to point out any attack. I’ve been nothing but civil and straightforward.
no not you. but it’s simple physics. if soooo many people hate me, is it that hard to imagine soooo many of the opposite adore me?
Any chance of resurrecting this thread, or is this the way this forum will work?
Why not!
Right now most of my net worth (50%) is in my primary residence. I own it outright and am looking at a HELOC to hedge my risk.
Another 25% is in cash between 5 different banks mostly chasing interest rates.
The other 20% is in brokerage, a ROTH IRA and 529 accounts. I have no idea how to “invest” in the stock market so I just bought target date retirement funds at Vanguard, and set the 529 accounts to an aggressive investment strategy.
The last 5% is in radically varying accounts. I have money in a Robinhood account, some parked in Kiva Loans, some LendingClub, you get the idea.
I don’t really have any major concerns about how my worth is allocated although if I can get a 90% LTV HELOC I will absolutely do that. If tomorrow my residence is worth 50% less, I would like to have the option of walking away with a wheelbarrow of money and letting the bank eat the loss.
good man! owning it outright. i hate you a little less
| Financial Instrument | % of Market Value | |
|---|---|---|
| OGZPY | 15.35% | |
| Silver futures | 13.08% | |
| Gold futures | 22.87% | |
| AMD | 10.35% | |
| MU | 9.27% | |
| SINA | 6.42% | |
| YY | 5.02% | |
| ESPR | 4.88% | |
| YNDX | 5.02% | |
| DAC | 3.85% | |
| FLKR | 3.34% | |
| CPA | 3.03% | |
| CPLP | 2.48% | |
| OMER | 2.44% | |
| HAIR | 2.30% | |
| RDFN | 1.82% | |
| CYOU | 1.71% | |
| ESRX | 1.70% | |
| 1810 SEHK | 1.67% | |
| NPSNY | 1.67% | |
| PCB | 1.52% | |
| WRK | 1.52% | |
| SBRA | 1.47% | |
| TGLS | 1.29% | |
| SBRCY | 1.28% | |
| WTW | 1.19% | |
| GASS | 1.09% | |
| MYND | 1.01% | |
| F | 0.90% | |
| BABA | 0.90% | |
| CBLK | 0.84% | |
| VNTR | 0.79% | |
| VALE | 0.68% | |
| STG | 0.44% |
As someone who rents in a very high cost of living location, what bothers me most about discussion of asset allocation (and what makes the discussion useless to me) is that real estate is typically ignored.
Unfortunately, in VHCOL areas, real estate is something like 1-2 million or comes with a lot of debt. So if I am 80-20 as a renter - another person with 1 million in real estate who says they are 80-20 might be actually something like 40-10-60 with stocks only being 40% of their entire portfolio. So taking their advice on asset allocation would be misleading.
So if I am 80-20 as a renter - another person with 1 million in real estate who says they are 80-20 might be actually something like 40-10-60 with stocks only being 40% of their entire portfolio.
If they’ve got $500k in stocks/bonds at 80/20 and a $1M home with a $700k mortgage, their net worth is $800k and their AA is
50% stock ($400k)
125% real estate ($1M)
-75% bonds, ie net debt ($100k bonds less $700k mortgage)
I’m not going to be the someone to tell you not to use margin / leverage, but you want be aware of what you’re doing and the risks you’re taking. Also, it’s probaby worth carefully thinking if it makes sense to be long bonds and owe on a mortgage, instead of just paying down the mortgage instead of holding those bonds that presumably pay less. Yes, the mortgage has some positive optionality but I’m not sure if the math works.
25% real estate
25% T-Bills
25% iBonds
25% Costco