US stock · Basic Materials sector · Aluminum
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Alcoa Corporation

AANYSE

64.50

USD
+1.65
(+2.63%)
Market Closed
16.96P/E
6Forward P/E
0.65P/E to S&P500
11.897BMarket CAP
0.32%Div Yield
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Recent Reddit Comments

Your AA looks good to me! Think of all the poor innocents who don’t have the knowledge of bogleheads getting a pitch like this!

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I do this on SPX everyday and had costly mistakes in the early stages. It is by definition a "gamble" if you are not managing the downside. Anytime you interact with the market, it is in a sense, a gamble IMO

Risk Management or Else... Trust Me

Set Stops, small stop outs eliminate blown account, period!

I had 4 major reversals that nearly wiped out aa $25K account before accepting a stop loss plan. Had a full month of daily gains, yes 20 straight days of an average $1250 a day buying 1 SPX contract at a time, scalp in and out. Got over confident, went in with double the size on a $32.00 put and ended the day down over $11,000. Did I learn? no, happened again.. Had a $5800 week, then the following week, Monday morning, market uptrend, buy calls, market reversed down $7100 That was it, time to add risk management to the plan.

Now, market trend direction, low volume entry points based on order flow, open position with 2 contracts, set stop, scale out 1 to cover my stop, now that keeps me risk neutral and I can relax and let a winner ride.

Auction Market Theory. Changed the game for me

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I agonized over factor tilting and VT over VTI/VXUS for months, only to go for a very standard three fund AA.

GOVT over BND is the only area I went a little astray. Didn’t want any corporate bonds, and I’ll probably sacrifice a bit of alpha (I can’t believe I just typed alpha) because of that.

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TL;DR:

About -12% YTD

Detailed:

Target AA: 80/20

Equities: Total market funds (where available), minor tilt towards small/mid cap in employer-sponsored account (have to approximate)

Fixed Income: Total bond market funds in tax-advantaged, intermediate treasuries / short-term TIPS / Series I in taxable

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New to this sub. What does AA stand for ?

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If you've won the game, you don't need to play and can cut back on the aggressiveness of your investments. If I got $10 million tomorrow, I'd switch my AA with a 60/40 or 70/30 stock to bond mix in a heart beat. No need to see it go to lose $5m in a bear market, crap my pants, and sell toward the bottom.

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breaking news just in, random guy in a reddit thread wants you to change your AA

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Bought AMC calls for first time ever. Low travel and think they have a big weekend and AA will lie about it even if they don't.

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There's creative ways to the airline fee. You can use the United travel bank and sometimes get AA to pay for upgrades if you're not super honest about the fee :)

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"AMC iS ThE bEtTeR Play, wE haS movie LaSErS, AA SellInG iS BuLLiSh"

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You mentioned Top Gun Maverick, I have to assume that you are secretly some popcorn craving wannabe ape peope call AA

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So what I'm hearing is, we need to keep firing the collider up, again and again, until we get somewhere better, like this is a Quantum Leap situation.

Alright, where did I leave that starter pull rope? Did anyone bring some AA batteries? Somebody go back and get a shitload of AA's!

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I don’t think that’s going to happen, the amount of capital needed up front for AA and AAA titles is insane

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Aside from any AA or diversification arguments, I would stay clear of high dividend ETFs in a taxable because of, well, the taxes. That would be better suited for a tax-advantaged account (even though the Bogelhead way would be to not overweight in dividends at all, but rather buy a broad market fund like VT or VTI+VXUS)

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Are there any AA meetings for day traders? I admit I have a problem.

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> It’s funny though, because I never see bonds for young people referred to as an acceptable psychological crutch. It’s usually frame in much more sober terms like “risk tolerance”

I understand your point, but I think that there are two factors in play:

  1. Bonds actually do meaningfully decrease expected risk and increase risk-adjusted return even if they do decrease expected return. So they have a function other than just psychological comfort. (In point of fact, an optimal portfolio would use a mix of stocks and bonds regardless of age, just adding leverage if the desired risk/return couldn’t be achieved without it)

  2. There’s not exactly a preponderance of people having an excessive bond allocation at a young age, so it’s just not something that needs to be talked about. By contrast there are a lot of people who DCA and many of those people have serious misconceptions about the actual effect it has in thinking that it reduces risk instead of just postponing it.

I agree that it’s less painful for many people to consider a downturn in the near future than at some point after their DCA plan in finished. And since personal finance has a huge psychological component, it’s ok if that’s what works for people.

But I would still argue that someone who would get majorly stressed by a downturn tomorrow is still going to be stressed by a downturn a year from now. And the best solution to that is adjusting one’s AA (including adding bonds) rather than mental gymnastics.

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AMC holders "please AA place thyne sweaty old ball bags within my mouth so I can sucketh thee dry"

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Don't put your emergency fund in stocks. This is not an emergency, and heavens forbid you do have one after exposing those funds to the forces of the stock market.

Do contribute what you can from each paycheck. Averaging down isn't a very useful concept for this type of investing. Just contribute what you can when you can, stick to your AA, and tune out the noise to the best of your ability.

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AA probably selling the pump

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Only if Silver Nutsack AA doesn't sell before his apes do

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In addition to the excellent replies already given, you can rebalance by taking your withdrawal in a mix so as to bring your accounts back to your preferred asset allocation. I use our annual withdrawal as the opportunity to move everything back to my AA and then ignore it again for a year. Due to the increasing value of equities the last few years, we've taken more of our withdrawal from them than bonds in order to bring them down and back into line. If equities drop drastically, I would take more from bonds in order to bring them down and back in line. It may sound complex, but it's really very simple.

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I go for 40%, but many could see that as a bit high. VT is 62% North America, so 40% seems reasonable enough to me, but you can develop your investing statement to help define your ideal AA.

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I'm 33 years old. 8 years ago I told myself I'd never drink again. 2 years in AA. A college degree.

And for what?

I'm on my way home with a fresh bottle of vodka I just bought in the back seat that I know I'm going to hit hard tonight.

There is no hope for me. Because I chose to become a public school teacher and get a worthless masters degree in teaching, my life is over before it even had a chance to begin.

I will forever be poor hopeless and in debt. I offer the world nothing for I am nothing.

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What's your modified version AA? I'm curious of variants of HFEA.

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How bout $8 next month, after AA sells more shares.

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Were three of you retards all at the AA meeting on this doc or is this a fake?

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Decided to hedge my bull horns with some long AA calls. If my COST goes bust, AA isn’t far behind especially with low new home construction.

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Don’t call an article written by a financial Twitter journalist with an agenda “research,” please.

AA is still vested in millions of AMC shares.

As for other board members, they never claimed to be “apes”, they are just upper management working class people trying to make a living.

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AA actually owns millions of shares.

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Literally what I thought as well! I see it as the equivalent play as AA mortgages back then.

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LIAR Russian troll. You trolls never give up do you? No Igor, we know tnhe Pjutin controlled rightwing media is obsessed with covering up the fact Putin stole the Republican party and polluted it, but denying it doesn't make it any less trye, TRUM,P IS A RUSSIAN AGENT as McCarthy and Ryan said in 2016, now Putin controls Carlson, Murdoch and Fox, but he has Desantis, rand Paul and many others in his pocket and the takeover of the GOP is almost complete. Only a few holdouts like Romney and Cheney and they will be gone soon.

Trump works for Putin just like you do and just like 90% of the rightwing media does, currently in Budapest with Putin's other puppet Orban, celebrating the takeover of the GOP by the new USSR,

Aa for the rest of you, without Putin, his money, his 10 million troll army of liar, his Cambridge Analytica, his bringing and blackmail and his imaginary "dirt" on Hillary, Trump would never have recovered from his 1999 bankrupcy and would not have even been oin the radar screen by 2016. Most of the ills our country's politics is suffering through now we can thank Vladimir Putin, for giving us former Hillary supporter turned Kremlin fascist Trump, for radicalizing the Republican party so extremely that a Bush or Reagan wo9oldn't even recogjnze it, for turning the GP{P against the US militry, the FBI and CIA, and for radicializing the left too, as Putin's troll armies did a number on the naive bernie voters in 2016 too, complete with a fake liberal Jill Stein, paid for my Moscow , for them to trhrow away their vote too. Putin has spent over 20 billion dollars takng over the GOp and he did it primarily by controlling the trolls and taking over the rightwing media.

Now as you can see every aspect of "conservative" (now fascist) media is controlled by Putin's people, from Tucker Carlson on down, and on every social media platform the trolls butt in and qukit "I thought Trump-Russia was a hoax". No people, the only people whoever said Trump-Russia was a hoax were trump himself when he was exposed and terrified of arrest for treason, and Russian trolls and fake journalists themselves, In fact to this day, neither Trump nor Carlson nor Desantis nor any Russian controlled agent in the GOP has ever criticized Putin, even as he attacked the US and our allies every day for the last six years and as he is trying to be Hitler in Ukraine.

Now cue up the troll mocking me and saying I am on drugs. That is what trolls do. first they spread the lie, pretending to be a real person,. then they mock the truth, and if they need proof they link to the NY Post or Daily Caller both Putin's facvorite disinformation rags,

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If you’re just looking at long term AA, which isn’t exactly how you frame your post, then yes some Bogleheads would include commodities in their portfolio. It’s not a popular position, since for most people the standard three fund is just fine, but it’s the best of the typical alternative investments.

If you grab Swedroe’s The Only Guide to Alternative Investments You’ll Ever Need from your local library, the chapter on investing in commodities makes for a good read and explains quite a bit more nuance than in possible in a Reddit comment thread. (Yes, the title is a bit arrogant, but it really is a solid book)

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What your witnessing is the very slow (and much too late) awakening of AMC sheeple to the swindle they've all fell victim to. Hopefully there will be lawsuits against AA and his cronies.

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AA will be happy to sell his to u

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That won't happen cuz they're do a stock split and dividend to shake the shorts? Right guys? Right AA?

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I am tilted toward value and international. For multiple reasons. Most people would be better off with a static AA. But a few can overbalance correctly.

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Cause they wanted to be at the top of stock catalogues back in the day. AA appears higher then AP

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Dave Ramsay is like AA for money. Dave is for people who spend $105 if you give them $100.

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Is that why AA and other insiders sold their stock

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No. Simply pick the TDF that matches your AA. For example if you were 70/30 like I am, at most vendors you select a 2035 TDF. Check every couple years and change to a different date TDF if the glide path has pushed you too far from your desired AA. I will often use TDF in an account that I haven’t bothered to add to my spreadsheet yet. But if you are 70/30 in your whole portfolio, and then add in a 70/30 TDF (no matter what % of your portfolio it is) it will not move your weighted average allocation. Can’t help too much on the foreign vs US mix but that is of much less consequence than the stocks to fixed income ratio.

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Air Miles are like experience points in a game. There are many groups of airlines (called alliances) that each make their own game based on how far you travel with them.
List of Frequent Flier Programs

Here are the basics:
As you travel on airlines you get one point for each mile you travel. If you have certain upgrades or bonuses (riding in business class? imagine wearing a shield that grants 25% experience bonus) you can get more miles for every true mile you fly.... (Example: Business class is 200% if on International Full Fare tickets via American Airlines)
As you gain more miles you "level up". For instance I prefer American Airlines and the OneWorld Alliance (Cathay Pacific, Qantas, etc...). With American Gold Level is at 10,000 miles, Platinum is 50,000 miles, Executive Platinum is 100,000 miles. Each level gives you different benefits... better seat options at check in, priority upgrades, better baggage allowances, access to lounges, etc... Just like access to better skills and spells!
Miles to gain levels must be maintained (mostly) annually. That means if you got 55,000 points this year and became level Platinum on AA, and next year you only did 40,000, you will likely be Gold next year unless some promotion comes up, there is no grandfathering. Its like a server reset every year.
Miles typically have an expiration date... that means if you don't use them, you lose them. The expiration usually happens within 18 months of when you stop flying, but it depends on the program. Imagine you stopped paying your monthly fee for that great MMORPG. The company will hold onto your character for a period of time, but if it looks like you aren't coming back, your character (FF account) will be wiped.
Miles/Points that are accrued can be "cashed in" towards travel, vacations, and other items... depending on the airline. Imagine you want to cash in all that hard earned AA experience in Everquest for a benefit... that is how this works. American Airlines cheapest domestic miles flight is 12,500 miles one way, you still have to pay taxes and fees. I tend to use them for gifts or when airfare is just too expensive. Note that using miles does not take them away from your "earned experience". If you earned 100k points of experience from your flying and you spend 100k, you still get credit for the 100k and would be Executive Platinum on AA.
Many people do really make this a game, you can earn points outside of travel. I have an American Airlines credit card that earns experience for every dollar I spend (RMT!) I use it every month and try and pay it off... I use it for everything from gas to groceries to the bar. Also the devs (airline) sometimes have partnerships with companies... for instance Bose. If you buy a Bose product you can earn miles by sending in your receipt. Its fun to try and figure out the best way to level!
There are OMG HAX in this game that people aren't usually aware of. Airlines have challenges... for instance American Airlines has a Platinum Challenge. You can go straight to Platinum Level (equiv of flying 50,000 miles) by completing a challenge where you fly 10,000 miles in a set period of time (I think its three months). There is a fee, around $250, but its worth it if you are going to travel a lot. When I first joined my company I had to fly to China Business class. With the bonuses that was enough to meet the challenge one-way. Its nice for all the perks, but not really advertised... Challenge (AA)

​

Source - r/explainlikeimfive

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I'm mostly an AA flyer lately, so I couldn't speak to the United side of things firsthand, but I definitely get the lounge letdown there.

I'm wondering how long the Platinum card perks will still be worth keeping the card, but I'll be in the ballpark of hitting the spend this year to retain that access for another membership year (thank you furnace replacement with no card fee). With that said, I use it personally at least a few times a month with work travel, and if that continues as I expect then the rest of the perks will easily make the fee worth it. I easily max the airline fee credit ($200/year), burn up Uber credits every month ($200/year), use the Saks credit for gifts for the wife ($100/year), and use up the Digital Entertainment credit ($240/year). That already exceeds the yearly fee and doesn't include any value from lounge access, Global Entry fees, rental and hotel elite status, or any Amex offers which might line up with my normal spending (usually at least $25/month, sometimes much more than that). I'm likely holding that card through 2024 at least, but we'll see.

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Most job requirements are only really going to care about the bachelors degree or above - depends on the field. Get the other AA if it’s something that personally interests you, but its not something many employers would factor.

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I've never hired anyone based on their AA. It's always been based on their bachelor degree.

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If you've already been accepted to a bachelors program than there is no need for a third AA degree - especially if its only "kind of" related to the field overall

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I haven't had the pleasure of visiting the SFO Centurion Lounge yet, but the others I've visited have been excellent (Charlotte and DFW so far).

Tortas Frontera is great as far as food goes but the lounge experience is, in my opinion, mostly about getting away from the amateur-flyer hordes and taking a breath with a tasty (complimentary) beverage.

I have the Amex Platinum and get plenty of use out of it, but have been eyeing the AA Executive Card for Admiral's Club access when flying out of ORD. If I'm flying for work I'd much rather get out of the office earlier than strictly necessary and "work remote" (aka. check email on my phone briefly) out of the lounge while I wait for my flight.

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The thing I hate about DEN is the AA 38 minute layover where the arrival gate and departure gate are at completely opposite ends of the airport and separated by a train ride. If I hadn't been in decent shape on my last flight through, there's no way I would have been able to make it.

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Instead of a duplex, consider a SFH with an accessory apartment/in-law unit. Managing a rental can be a lot of work, especially having a full time job on top of it all, and the more tenants/units you have to take care of the more work it is.

Be aware mortgage lenders will not usually consider hypothetical rental income from roommates or units not currently rented out, so you'll need to qualify to borrow the full amount on the basis of your own income + the monthly rents for any unit(s), other than the one you would be living in, that have active tenancy agreements in place. A SFH home with AA is not going to be as expensive as a duplex/multi-unit building so may be easier to qualify for.

It also offers a bit more flexibility - if you decide down the road you hate actively managing property, you can wind down your current tenant and the in-law unit can easily still provide value to you a suite for overnight guests, to move in a parent in old age, to convert to a rec room/bar, etc. Instead of being stuck with an empty unit in a duplex.

Lastly a SFH home is more likely to have just one HVAC system which will really help control maintenance costs over time vs a multifamily that's more likely to have separate systems for each unit.

I would not recommend investing in property in an area you only know about through a handful of people's secondhand stories. At minimum you would need to do a lot of research and visit/look around to get a feel for the area. Knowledge of the local market is a valuable asset in real estate so really try to leverage it if/where you have it.

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Wen S&P downgrade US to AA?

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Going long here on $aa and $ping ! Shits the bottom…

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Makes sense with ORD as a major AA hub. I don't think OP is going to get close to getting upgrades (except if they're flying at/on non-peak times/days) so personally I would look more at the potential value of the miles they'll accrue. I commented on that elsewhere but SFO being a major UA hub opens up a ton of nonstop options compared to most other airlines that would have decent route options to ORD.

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Ya it's a zoo. Group 1 is like half the plane, even on the Dreamliners!

One note - I've been to ORD a few times in the last 6 months or so and each time have been able to upgrade one of the legs at check-in for only ~$200 (in Polaris) and it's been well worth it to get room to work (especially with the new $8 in flight wifi pricing for MileagePlus members!) and maybe have a drink or two.

In terms of picking an airline, one other thing to consider is the value of the miles that OP is going to accrue. SFO being a major United hub opens up a ton of options for non-stop flights whereas flying someone like AA who might have some decent options to ORD would only get you to LA, Dallas, New York, Miami or Chicago non-stop (from most of those you can get pretty much anywhere but with a layover).

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Despite being such a good airline, I would avoid Delta. Only because they don’t fly that route nonstop, which means you’ll probably have to connect in SLC or MSP every time. You’ll gain status a lot faster, but in my book, not worth the time and Misconnection risk.

I personally would rather fly AA nonstop than Delta with a connection

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For what it's worth it's not much different if you fly American. I have basic gold status with American from flying ORD/SFO for work, and I have never been in the vicinity of close to getting upgraded for a flight because of all the business travelers with better status than me.

OP will be flying more in a year than I ever have so maybe they'll get high enough in the ranks to get lucky, but usually the upgrade lists are pretty crazy for AA, not just United.

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My base AA is 50/50 but I am overbalanced toward foreign right now.

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1000% I used to travel constantly (hence the 1K status) but switched companies a few years ago and grasp to my United Silver that I get as a reciprocal benefit from my lifetime Marriott status (did I mention I used to travel a lot?). Biggest downside is not being able to book E+ until check-in :(

Going to add a top level comment though as I just remembered that OP may be able to request a challenge to get status quicker if the math works out. I can't remember if UA does them but AA used to do them for either Gold or Platinum.

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Make it simpler. Pick your AA. Such as - 70% US 30% VXUS.

Fill up accounts 1 by one from smallest to largest with VXUS (FTIHX, whatever). Probably HSA, Taxable, some of your roth. the rest make 100% US. Now, you only need to rebalance in one account (the only one that had the rest of your vxus and the beginning of your us allocation).

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I stopped using AA now for business travel because they switched how their points accrue. The only realistic way to get status anymore is to use their credit card on booking flights and such. We don't do reimbursement and it all goes through a company card so AA is pretty much dead to me now.

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Or when AA sold his 🤷 #bullish

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Help! I posted something similar a while ago but it was in the wrong sub, and I think this sub is the one for me. I’ll do me best to follow the template.

-I’m 32 years old and currently a USAF reservist and full time firefighter/paramedic. I also used to do construction and rental housing. I currently still do a little renting.

-My goal is to earn passive income as soon as possible. I would like to be able to make about $4-5k/mo passively, preferably with a COLA.

  • I guess that also covers my target age (asap) and desired withdrawal. I’m located in Florida.

-General goals are to have a kid within the next five years, but I’d REALLY like to not have to work so I can be a stay at home dad while the wife pursues her career. That said, she’s a flight attendant and the money isn’t good enough to support a family. I need to hold up my end.

  • I have an AA and most of a bachelors in biomechanics, but I never finished it since I decided to work in another field. I have no plans to further my education unless it gets me FI faster.

-Currently I work as a firefighter, and I have about a decade on the job. I’ve been in the USAF for about 4 years and I fly on helicopters when I’m there. The fire department is my home, but I’d like to quit when I have a kid. The Air Force is less of a time commitment, I fly about 5 days per month and I can take that or leave it post kid.

  • Current income is about $50k/yr from the fire dept, $15k/yr from the Air Force, and $40k/yr from the quadplex which I live in and rent three units.

-Budget is very fluid depending on which projects I’m working on, but the quadplex is my only real consistent payment. It’s $2800/mo, and I take in about $3k/mo.

-I have $180k in cash, four cars, two motorcycles, one quadplex (which I’m adding an addition to currently, making it a quint).

  • Only debt is the house, which I owe $405k on.

  • No health concerns I’m young and fit.

  • My family situation is just as stated above, I have a wife and no children but we’d like to try in the next few years. She makes about $35k/yr but our finances are completely separate so that’s almost a non-factor.

  • Other info would just be that I’ve got like a “jack of all trades” thing going on. I rebuild cars, build houses, fix people, and fly in medical helicopters. I’m not stranger to tech and things like cryptocurrency but currently have no holdings there. Point is, I have a ton of skills that I could parley into building something, but if I do that I’d like to build something I can put on autopilot once we try for a child.

  • My question is - what’s the best way to build passive income? I don’t need a whole lot, the quad is basically self supporting so I don’t pay any rent. I’ve got no car payments. I can live very comfortably on $4-5k/mo. I’m just looking for the fastest way to make that happen. Thank you!

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Am I correct that you have intentionally tilted your portfolio towards EM? Personally, I tilt SCV, but as long as the additional EM weighting is intentional, and you keep it long-term without changing even if it underperforms for 10 years, it feels reasonable.

Wavering from your AA though could lead to loss of potential gains, so make sure you have complete conviction as to why you chose to tilt towards EM.

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I would invest the funds according to my Investment Policy Statement, a document that lays out my investment goals, timeline, asset allocation, plan for rebalancing, contingencies for windfalls, and the circumstances under which the IPS itself will be reviewed and revised.

Writing an IPS starts with the goals and timeline, which help to inform the asset allocation (particularly degree of risk required to achieve the goals)

If you are uncomfortable lump-summing an investment, that’s probably a sign that your asset allocation is actually too aggressive in terms of its riskiness. You shouldn’t have an AA that makes you uncomfortable as psychological risk tolerance is equally important as risk tolerance based on investment timeline.

Note that while spreading an investment out over time is popular as a means of masking the pain of a possible downturn, delaying the timeframe until you are fully invested only puts off risk rather than avoiding it.

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Dave is financial AA for people who handle money like alcoholics handle booze.

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> My wife is extremely risk averse so trying to keep some hedge against a full US market crash.

The you should probably think of a less risky AA. Only 10% bonds is adding a lot of volatility risk. Unless your wife considers volatility risk a non-risk.

> My understanding is ex-US has been outperformed by US historically.

You are speaking about the recent past only. Just because that is true doesn't mean you should over-tilt US. The equity market is currently about 60% US and 40% ex-US in equities.

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I am at 35% bonds, but I had been generally over 90% equities up until about a year before retirement, at which time I rebalanced to my "retirement" portfolio of 65/35.

I will be honest that it was tough to watch 35% of my portfolio miss out on the 2021 market, but I had a plan and stuck to it.

I plan on generally spending from my bond funds as needed if the current market stays flat or drops over the next 5 years or so, which will eventually ramp my AA higher towards equities.

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Dave Ramsey is like the AA of finance, he gives advice for people with debt and gambling addictions.

Also 20% is an arbitrary number, don’t get suckered into that. The true questions should be, can I afford the monthly payment? Is the house a good deal? Can I afford the maintenance and property taxes. Is my down payment big enough that I won’t easily go underwater. Is the interest rate good? Does this house make sense for my lifestyle/location.

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Dave Ramsey is very good for people who struggle with financial fundamentals.

It's like AA for debt. You get some people who just... can't say no. If they have the credit card, they will max it out on little things here and there. They will take out colossal student loans for a private university degree with limited marketability (not knocking the humanities, just saying that you should consider the return on investment when looking at tuition). They will buy and refinance a lifted truck for the one day they go to the a redneck bar and that time their buddy needed to move a couch. They take out a payday loan and then forget to pay it back, they're always upgrading to the latest iPhone and just rolling over the contract, etc, etc.

Your average person with basic financial literacy doesn't necessarily need Dave Ramsey. But the people who do need his advice, really need his advice. And while there are better advisors on the whole, his stuff has the advantage of being very, very simple which is very good for people who are prone to overcomplicated plans that always backfire on them.

It's the "most basic ass obvious shit"... packaged in a way that people who are so financially illiterate that they missed the basic ass obvious shit can understand it, and there's a lot of value in that.

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Not technically in the camp you asked for, but my plan is to do a bond tent when I'm within 5 years, scaling from 70/30 to 30/70 or so and then back up to normal AA the 5 years after retirement.

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Dave Ramsey is like the AA of financial advice. It's really not useful for most people

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Its AA for people that can’t handle money.

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It’s AA for people with financial problems.

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During the .com bust, I was 100% equities (Vanguard Total Stock Market) and just kept plowing money into that fund. I had no 401(k) available. During the GFC, I was still 100% equities (TSM) in my Roth and 100% S&P500 in my 401(k). I was more worried about losing my job during the GFC than about how poorly my investments were doing. I knew the markets would eventually come back. People around me who were losing their jobs, though, were having a tough time finding a new one.

I didn't change my AA until forced retirement in 2013. I moved to 65/30/5 then. I wouldn't say I'm hyper wealthy from my activities, but I do have enough to have a comfortable life.

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Seems too easy. If people aren’t shopping at target they def aren’t going to AA for overpriced clothes.

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Yea, Dave Ramsey is like AA for broke people.

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Interest rates haven't been priced if much yet, and it will influence businesses in the future but not short term Collateral haircuts have been the reason for the stock market decline (MBS below AA not valid anymore since oct 25th). And quantitative tampering has not even started yet (see the FED balance sheet). This is just starting in my opinion. We are in for a very very very bumpy ride. All of this thanks to derivatives being more and more dominant vs actual assets and the money printing.

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If I buy a Tesla it would be for the self driving feature. Which since 2014 musk has been claiming “next year” it will be fully self driving.

But random thought.

It takes about the same as driving than taking an short domestic flight in most of the USA. Mainly due to airport security, traveling to the airport and off boarding tracking to final destination. And a lot more if there is a stop at hub. Driving 3-6 hours is very common in the USA south and middle America. It’s between two semi big cities or from a big city to a smaller one. Think Tennessee to nc, or Atlanta to Alabama, that sort of stuff.

Got me thinking that once Tesla gets the self driving to really be hand off then it woudnt be competing agaisnt ford or gm, it would be competing against delta, United, AA.

Roads outside major metro areas are very clean and simple and even more easy at night. Might need a cyber van or something f where people can lay down, watch tv etc.

Middle class families would have an incentive to buy a Tesla.

Dunno. It seems it could happen in my lifetime from videos I’ve seen. (Not the ones in the city or with many cars.) I’m guessing cyber trucks would be first though.

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Hi,

Thanks for taking the time for the thoughtful response. Great idea to keep expected withdrawls for the 401K maxing as cash on a yearly basis while investing the rest.

I may or may not be in a higher tax bracket in next 10 years, hard to say. I also currently live in a state with very high taxes, so I'm hesitant to make any moves that would incur a large tax bill until I'm deciding where I move later this year.

Ideally, would like to keep this as simple as possible, so if I intend to invest the rest at my current AA (setting aside cash for the 401K and other costs), it sounds like putting it all in VFFVX would be okay?

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Good plan on 401(k).

Do you think you’ll be in a higher tax bracket over the next ten years? That should influence your withdrawal patterns as well. If you work somewhere with a fairly high probability of promotion and increased earnings, you’d want to withdraw sooner rather than later keeping yourself in the lower tax brackets, especially avoiding NII tax.

If you are okay with losing some simplicity, you might change out of target date funds in your Roth type accounts to 100% equity. Increase the bond component in the inherited account which minimizes the growth and future tax bill there. You could switch taxable bonds out for equity, again increasing the bond allocation in the inherited account. This will require a spreadsheet to track the portfolio as a whole.

Otherwise, I’d keep a year or two of the increased 401k) contribution in cash in the inherited account and invest the rest at your AA, moving the next year’s amount to cash each year as you withdraw.

Another thought is investing your current emergency fund in your taxable account and then keeping that amount of cash in the inherited account. That’s riskier in that an emergency could result in a tax bill of some kind (either selling in taxable if you have no losses to harvest or withdrawing from the inherited account).

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Sharing my comment from a similar post last year:

>I had only just started investing at the tail end of the first drawdown but I can tell you no one I knew was 100% US stocks by then. The misery of putting your paycheck week after week and month after month into a market that kept dropping and wouldn’t seem to come back was demoralizing. So many people grew impatient and changed their AA to whatever was doing better - small caps, emerging markets, junk bonds. And then 2008 was a huge gut punch for many people who moved into bonds. It’s easy to look back and say oh yeah it would recover by 2010 but back then you just didn’t know if it was going to be 5 years or 10 years or 30 years to get back above water. It can be very hard to stay the course when things go south so it’s really worth the time to be thoughtful about what you feel you can comfortably stick with in all sorts of scenarios.

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>thinking about a 7 year recovery while withdrawing from your portfolio sounds like a nightmare.

As someone who's already retired, I agree that this is not great. But, that's why there's so much discussion around safe withdrawal rates. And, if you are retired for long enough you're eventually going to run into a really bad bear market, so all you can do is prepare for it.

One thing you can do as a retiree is to maintain your planned asset allocation. As stocks drop your AA will shift towards cash/fixed income, so buying equities while they are depressed can have a similar effect as someone who's still accumulating and continues to invest during the downturn. But it can be really hard to do, it really does feel like one is throwing their money away when buying while stocks are way down.

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Research USAJOBS.GOV. Every year the federal shipyards hire apprentices for various trades. You earn an AA degree in a trade while working at the shipyard. I was once an apprentice now earning a six figure salary with great benefits. Keep your options open.

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If you don’t travel much I don’t see the point. We have the equivalent chase card (sapphire preferred) and travel a lot, so we regularly utilize the points, airport lounges, etc. If we didn’t travel much there would be no point. It makes us no more prepared than with any other credit card.

The booking service is no better than just calling AA/southwest/Delta. If this is the biggest perk you are interested in, it is not worth it.

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I think you’re just being petty. It’s quite common to AA in Western Culture but the most easy way for both ends is to just pay evenly if you didn’t specify when you placed your own order.

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DH and I retired in late 2013. I keep our AA at 65/30/5. The 5% is mostly psychological as we know we wouldn't need to sell equities or bonds for a couple of years during a severe downturn. I'm comfortable with all our assets being invested, he is not. So we reached a compromise that works for both of us.

I use our annual rebalancing as the time to take our annual withdrawal. I draw from equities and bonds to bring us back to our AA. The amounts of each fluctuate depending on the current state of the markets. The withdrawal rate we are using is <3% per year.

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Bc GME is worth more and I'm not playing with my money. I'll let AA do that

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just hit up my first AA meeting.

&#x200B;

thanks otto.

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That’s fair. Moore CCs are working with the 4 year schools to develop transferable curriculum. At my CC, if you earned a AA, you automatically came in as a junior to the 4 year school.

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Her 401k is about 10% of our complete portfolio right now. My 90% is comprised of 100% equities. Her portfolio is split between 75% TDF and 25% S&P 500 index. The TDF is ~8% bonds and 92% equities.

Right now I don’t believe that small percentage will affect our outcomes right now. And I plan to adjust her AA as her total percentage of our portfolio grows to stay below a maximum of 5% bonds right now (if her portfolio even grows to that much).

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50/50 is my base AA but I am closer to 1/3 2/3 now.

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Thanks for this comment. I've been thinking about my AA and realized that this is the value of VTWAX approach (versus 2 fund US+Intl pairing).

Let the mutual fund do the global rebalancing instead of trying to constantly decide on the US:Intl ratio on my own.

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Every time I’ve been to Costco I walk out spending way more money than I intended. Did I actually need AA batteries? No, but I just scored 100 of them for ten bucks.

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When I was young I wasn't exactly sure what Metallica was singing about. I had a feeling it wasn't about AA batteries

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That’s fair, then we can adjust our AA at that point and buy bonds accordingly. I guess I just semi panicked realizing that I forgot about taking distributions from various sources in retirement.

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I've been thinking about it a lot since I'm about to vest into my pension next year (knock on wood).

Here is a recent bogleheads forum topic (started by yours truly) on this exact subject.

the tldr:

Account for your pension (and social security) as a "negative expenditure". That locks in your living expenses. For example, if you have 4k a month in expenditures and 3k in pension, then your investments need to only provide 1k/month in income. From there you can determine your aggressiveness in the market and AA accordingly.

From "Delamer" (my bold):

>In the case of your pension plus Social Security covering all your expenses, you can be very aggressive with your asset allocation because you aren’t dependent on your portfolio to survive. Alternatively, you can be very conservative because you have no need to take risk.

So the extent to which you need your portfolio to provide income, your expected life expectancy (or length of retirement, if you prefer), and your personal preferences for risk-taking are the key factors in determining your asset allocation

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You can be more aggressive with your AA if you choose to.

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Well Brk.b is just a factor fund with lower diversification. There are funds that do that better. Either go with an small cap value etf from dimensional or avantis or go with value etfs from aa. There you are sure to get access to the factors. With Brk.b you are paying for the name. Also, almost all of Buffetts success can be attributed to his exposure to factors and leverage. If we control for those we can see that Buffetts ability as a stock picker (ie to generate alpha, which just means we can't explain the outperformance with models) almost irrelevant. That means that you could have done the same if you invested in the same factors and used the same leverage.

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This is me and my wife. But we have time on our side, and in my eyes, everything is “on sale”.

But as far as feeling successful with our choices (AA), yes that is difficult.

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Yea, never change that AA at all! 60/40 forever. Oh, unless the equity risk premium is 0. Then you can take the bonds up and the stocks down. But that would be considered “timing” and Bogle was against that, even though he did it himself…

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i believe there's a huge dump of cheap chinese aluminum somewhere in mexico. i have no idea why AA rallied so hard despite that.

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There is no more confidence left in AMC to give lol. 15% of retail has sold off since june, from holding 80% to 65%. 96% of all current AMC investors are in the red. Every exec and insider has sold what they legally can. Even AA. He told you fools that he wont sell anymore in 2022. But you clowns failed to consider that he has no more left to sell, not until his 2 mil other shares are officially released to him. He says he wont sell anymore...becasue he has nothing left to sell lmao. I mean there has been, what? 70+ insider AMC trades since '21 and not a single one was a buy. They're all sells.

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