I’ll let Ed answer for himself, but we’re not holding bonds to lower our returns and avoid taxes. Rather, we’re being strategic about where growth and income occurs. We’re holding bonds to have some stability in part of the portfolio offset times of volatility on the stock side. Once having decided we will own bonds, then we hold them in tax deferred accounts so that (1) the tax inefficient income they throw off is in a tax protected wrapper, and (2) if any account is going to grow at a slower rate, it can be one which will eventually be taxed as ordinary income, rather than an account that will be taxed more favorably (or not at all). The result is that all our bonds are in Traditional IRA and 401(k) accounts, and our Roths hold more volatile stock funds. Allocation decision first, location decision second.
Our approach is similar. We keep several months of cash in one account from which most bills are paid automatically. When that gets on the low side, we shift funds from a taxable brokerage account to top it up.
Fun post. Glad you stumbled into your magic beans. When shopping for coffee to have “at home,” we’ll pay attention to prices. Since we’re always changing places, what’s available varies, as does cost (and currency). Not unusual for the first cup of the day to be instant. But coffee out is another story. Remember the advice to skip the latte, have coffee at home and save the difference? Nope. I have coffee out all the time. Sometimes I think if we’re ever settled I’ll learn how to do coffee better. Could be fun. But I’d still like a coffee shop too.
Being nomadic I can say we haven’t accumulated a single retirement toy. During the first year after retirement we weren’t really nomadic since we still owned an home, even though we were away from home nine months of it. During that year I bought a nice coat in Madrid. (Sadly it’s currently sitting in our storage unit.) With that exception, I can’t recall buying a single object remotely impractical since retirement, nevermind an actual toy. Experiences yes, and more to come.
Mark, I get your point about being able to be without a car in the future, but why does the fact that your bus or taxi does or doesn’t have a human driver matter to your mobility?
This is the second comment in a while that’s caused me to channel John Yeigh’s old article. Do some of each and think about something else. You can only be half wrong :-) https://humbledollar.com/?s=Half+wrong+
Comments
Indeed. When I retired almost five years ago I wanted to keep my options open to work opportunities. Boy has that sentiment passed.
Post: The Mirrored Funnel
Link to comment from May 11, 2026
I’m glad this question was asked so you could answer it. I’ll steer clear.
Post: Direct Indexing Anyone?
Link to comment from May 10, 2026
Turned out better the way you answered it. Really good article btw.
Post: Slow on the Draw
Link to comment from May 10, 2026
I’ll let Ed answer for himself, but we’re not holding bonds to lower our returns and avoid taxes. Rather, we’re being strategic about where growth and income occurs. We’re holding bonds to have some stability in part of the portfolio offset times of volatility on the stock side. Once having decided we will own bonds, then we hold them in tax deferred accounts so that (1) the tax inefficient income they throw off is in a tax protected wrapper, and (2) if any account is going to grow at a slower rate, it can be one which will eventually be taxed as ordinary income, rather than an account that will be taxed more favorably (or not at all). The result is that all our bonds are in Traditional IRA and 401(k) accounts, and our Roths hold more volatile stock funds. Allocation decision first, location decision second.
Post: Slow on the Draw
Link to comment from May 10, 2026
Our approach is similar. We keep several months of cash in one account from which most bills are paid automatically. When that gets on the low side, we shift funds from a taxable brokerage account to top it up.
Post: The never ending payday
Link to comment from May 9, 2026
Fun post. Glad you stumbled into your magic beans. When shopping for coffee to have “at home,” we’ll pay attention to prices. Since we’re always changing places, what’s available varies, as does cost (and currency). Not unusual for the first cup of the day to be instant. But coffee out is another story. Remember the advice to skip the latte, have coffee at home and save the difference? Nope. I have coffee out all the time. Sometimes I think if we’re ever settled I’ll learn how to do coffee better. Could be fun. But I’d still like a coffee shop too.
Post: Dickie and his magic beans
Link to comment from May 7, 2026
Being nomadic I can say we haven’t accumulated a single retirement toy. During the first year after retirement we weren’t really nomadic since we still owned an home, even though we were away from home nine months of it. During that year I bought a nice coat in Madrid. (Sadly it’s currently sitting in our storage unit.) With that exception, I can’t recall buying a single object remotely impractical since retirement, nevermind an actual toy. Experiences yes, and more to come.
Post: Retirement Toys
Link to comment from May 5, 2026
Depends on how far south, and when
Post: Tax Free Income Trap, Dealing With MAGI
Link to comment from May 4, 2026
Mark, I get your point about being able to be without a car in the future, but why does the fact that your bus or taxi does or doesn’t have a human driver matter to your mobility?
Post: Ageing and the Open Road
Link to comment from May 2, 2026
This is the second comment in a while that’s caused me to channel John Yeigh’s old article. Do some of each and think about something else. You can only be half wrong :-) https://humbledollar.com/?s=Half+wrong+
Post: Why I use a Donor-Advised Fund
Link to comment from April 26, 2026