It’s broad index and factor investing mixed together..maybe…I don’t know. I in fact, did some of this at the beginning of the year - researching and adding large value with some more dividend than S&P 500’s ~1.11% yield. All good…I’m learning…appreciate the response. That’s what HD is all about.
Remember or consider … It’s wise to leave some $s in the pre-tax tank (your TIRAs) for possible/likely large(r) medical expenses that can provide sizable tax deductions later in life. How many tax savvy dollars is a guess or could be another discussion point. Is anyone aware of a study that addresses the optimal taxable/pre-tax/post-tax(Roth) percentage mix for a handful of life-situation examples?
Grant/Mark - I enjoyed reading through that exchange. Grant - the notion that the S&P 500 is self-correcting (self-healing) was what I was trying to offer below in response to Mark’s article. I think you did it much more thoroughly and eloquently. Mark - I’m going to slightly push back on your comment to Grant stating, “…performing a “manual override” on the index’s natural mechanics.” I’d say the S&P 500 can be self-correcting, concentrated at times (or long stretches), but needing to rebalance relative to other allocations in one’s portfolio is perfectly acceptable and doesn’t necessarily prove that it’s an “annual override” or “active management” of an accepted passive index — rather it’s just portfolio rebalancing. Just my opinion and thoughts on the discussion.
Good detail on your methods, David…thanks. Lots have been studied and written on the subject (will be interested in reading what Mark C publishes to HD). I’m looking at a potential rebalancing rhythm like this: at the end of April after tax season and again in October (6 months later) and then maybe a final adjustment in December for end of year tax considerations and prep for the following year. With that said, peeking at my portfolio “often” and keeping an eye on the markets for opportunistic rebalancing and/or Roth conversions will also be on the agenda. I include a Kitces article, circa 2016 but still relevant, I think. https://www.kitces.com/blog/best-opportunistic-rebalancing-frequency-time-horizons-vs-tolerance-band-thresholds/
I totally agree with looking at the balance daily or weekly is an emotional and possibly a portfolio management detriment. But I’m grappling with the trade of periodic (e.g., one a year) rebalancing vs. opportunistic rebalancing in retirement. Suggestions?
Dick,
You worked your a$$ off to get to 67 and to where you and your family sit today. You are proud of your accomplishments and should be. Your accumulated wealth and security means a lot to you and will always be a measuring stick for you. No need to change or feel you need to change. I say this with utmost respect.
Cheers 🍻
Mark,
I really enjoy your articles and how you present things. This next comment isn’t refuting your decision but rather what popped in my head while reading. This topic made me think, WWWD (what would Warren do ;))…Buffet. We all, or surely most, have read his comments on 90/10 S&P 500 and T-bills. What came to mind for me reading your article was that I hadn’t ever read where Buffett had caveated this with a concern of concentration. So, I guess he seems to think the market adjusts and figures things out organically and investors benefit.
These three ETFs are popular for the value/dividends-minded investor, for sure, especially SCHD. I was looking at all of these, including VIG. If I remember right the VYMI has a high concentration on financial sector (40%). Because of that and the fact it had a big run up in 2025 I held off on making investment in VYMI. I was really torn between the domestic value funds, VYM and VIG and opted for a VTV (US large value)/VUG (US large growth) mix to tilt towards value without giving up on the giant cap tech/growth play.
Maybe this is assumed from your discussion in step 2, but in step 3, I’d suggest before withdrawing any pre-tax money, again you must first look at your taxable account expected tax liability due to investment interest/dividends - and even likely/estimated capital gains distributions from funds that you may not have complete control over - to get an initial picture of the first “stack” of your tax liability for the year.
Comments
It’s broad index and factor investing mixed together..maybe…I don’t know. I in fact, did some of this at the beginning of the year - researching and adding large value with some more dividend than S&P 500’s ~1.11% yield. All good…I’m learning…appreciate the response. That’s what HD is all about.
Post: Sector Fund by Stealth
Link to comment from March 8, 2026
Remember or consider … It’s wise to leave some $s in the pre-tax tank (your TIRAs) for possible/likely large(r) medical expenses that can provide sizable tax deductions later in life. How many tax savvy dollars is a guess or could be another discussion point. Is anyone aware of a study that addresses the optimal taxable/pre-tax/post-tax(Roth) percentage mix for a handful of life-situation examples?
Post: Tax Smart Retirement
Link to comment from March 8, 2026
Grant/Mark - I enjoyed reading through that exchange. Grant - the notion that the S&P 500 is self-correcting (self-healing) was what I was trying to offer below in response to Mark’s article. I think you did it much more thoroughly and eloquently. Mark - I’m going to slightly push back on your comment to Grant stating, “…performing a “manual override” on the index’s natural mechanics.” I’d say the S&P 500 can be self-correcting, concentrated at times (or long stretches), but needing to rebalance relative to other allocations in one’s portfolio is perfectly acceptable and doesn’t necessarily prove that it’s an “annual override” or “active management” of an accepted passive index — rather it’s just portfolio rebalancing. Just my opinion and thoughts on the discussion.
Post: Sector Fund by Stealth
Link to comment from March 8, 2026
Good detail on your methods, David…thanks. Lots have been studied and written on the subject (will be interested in reading what Mark C publishes to HD). I’m looking at a potential rebalancing rhythm like this: at the end of April after tax season and again in October (6 months later) and then maybe a final adjustment in December for end of year tax considerations and prep for the following year. With that said, peeking at my portfolio “often” and keeping an eye on the markets for opportunistic rebalancing and/or Roth conversions will also be on the agenda. I include a Kitces article, circa 2016 but still relevant, I think. https://www.kitces.com/blog/best-opportunistic-rebalancing-frequency-time-horizons-vs-tolerance-band-thresholds/
Post: Volatility is your Best Friend
Link to comment from March 8, 2026
Awesome! (Added comment to David’s comment)
Post: Volatility is your Best Friend
Link to comment from March 8, 2026
I totally agree with looking at the balance daily or weekly is an emotional and possibly a portfolio management detriment. But I’m grappling with the trade of periodic (e.g., one a year) rebalancing vs. opportunistic rebalancing in retirement. Suggestions?
Post: Volatility is your Best Friend
Link to comment from March 8, 2026
Dick, You worked your a$$ off to get to 67 and to where you and your family sit today. You are proud of your accomplishments and should be. Your accumulated wealth and security means a lot to you and will always be a measuring stick for you. No need to change or feel you need to change. I say this with utmost respect. Cheers 🍻
Post: Forget the 4% rule.
Link to comment from March 8, 2026
Mark, I really enjoy your articles and how you present things. This next comment isn’t refuting your decision but rather what popped in my head while reading. This topic made me think, WWWD (what would Warren do ;))…Buffet. We all, or surely most, have read his comments on 90/10 S&P 500 and T-bills. What came to mind for me reading your article was that I hadn’t ever read where Buffett had caveated this with a concern of concentration. So, I guess he seems to think the market adjusts and figures things out organically and investors benefit.
Post: Sector Fund by Stealth
Link to comment from March 8, 2026
These three ETFs are popular for the value/dividends-minded investor, for sure, especially SCHD. I was looking at all of these, including VIG. If I remember right the VYMI has a high concentration on financial sector (40%). Because of that and the fact it had a big run up in 2025 I held off on making investment in VYMI. I was really torn between the domestic value funds, VYM and VIG and opted for a VTV (US large value)/VUG (US large growth) mix to tilt towards value without giving up on the giant cap tech/growth play.
Post: Sector Fund by Stealth
Link to comment from March 8, 2026
Maybe this is assumed from your discussion in step 2, but in step 3, I’d suggest before withdrawing any pre-tax money, again you must first look at your taxable account expected tax liability due to investment interest/dividends - and even likely/estimated capital gains distributions from funds that you may not have complete control over - to get an initial picture of the first “stack” of your tax liability for the year.
Post: Tax Smart Retirement
Link to comment from March 7, 2026