Bank Account balance

[Pre-med2019]

Attending psychiatrists, how much money do you have in your bank account? curious to know how much liquidity physicians typically have.

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[littlefred]

Attending psychiatrists, how much money do you have in your bank account? curious to know how much liquidity physicians typically have.

Enough to buy things I want. Smart investors dont have money sitting on bank accounts though.

 

[DOswag]

Currently not enough, but I just started making "real money" this past year as I was military for 8 years prior. Playing a little catch up now.

 

[claypigeon]

6 months expenses (~75k including daycare for two, mortgage, taxes, etc). The rest goes into investable accounts. We switched to Sofi as we can keep all 75k in a savings account paying 4.6% and it automatically moves what’s need to the checking account so you don’t get overdrawn.

 

[Monocles]

Less than $1000 at any given time!

Life expenses (groceries, etc) go on credit card which are paid 100% in full each month. After bills, mortgage, etc all my money get dumped into a brokerage account (VTSAX) ... after maxing out 403(b) of course 🙂

 

[Stagg737]

Agree with ~6 months of expenses, though for me that's quite a bit less than $75k. Most is in a CD/HYSA, so still getting around 5% interest on a good chunk of that. I don't like not having at least $15-20k readily available as some emergencies can't be put on a credit card and waiting to shift money can be a problem.

 

[Merovinge]

Keep around 100k in a HYSA, it makes my SO feel better and the cost is pretty minor these days given the current interest rates. It is certainly not an optimal amount. Liquidating ETFs is not exactly a lengthy process but if it makes the SO feel more secure it's certainly a price I am willing to pay. Does make it easier to pay 5 figure bills without thinking twice.

 

[SubzDoc]

6 months expenses (~75k including daycare for two, mortgage, taxes, etc). The rest goes into investable accounts. We switched to Sofi as we can keep all 75k in a savings account paying 4.6% and it automatically moves what’s need to the checking account so you don’t get overdrawn.

I also use a sofi HYSA as a pool for 6 months of expenses plus whatever cash I have on hand for monthly expenses and near-term savings. I was not aware of this mentioned feature but the number of transactions is no longer limited on savings accounts and you can just use that to debit bills and such. If I need to write a check or get cash, which is exceedingly rare, I will transfer some money.

 

[nexus73]

Majority is split between HYSA and VTSAX money market. 3 months of expenses in checking.

 

[TheRightMedication]

only enough for a months expenses. I agree with using credit for emergencies. I took out a home equity line of credit which I have yet to ever touch, but can use if need be. Costs 50 bucks a year to keep.

 

[annoyedpsychiatrist]

I am more conservative and do a year worth of expenses. Rest ive started dumping into index funds. I keep enough to sustain myself for a year if push came to shove, just because i wouldnt want to feel rushed/settle for something i dont want.

 

[psychmd03]

12 months of all expenses plus maybe a small buffer in HYSA and money market getting 4 and 5% interest respectively. And then quarterly taxes also set aside in a HYSA. All in all just that cash is earning about 24k a year from interest which is fun.

Checking has 3 months of expenses. So I’m cash heavy for sure but also sitting on a medium and growing investment portfolio

 

[Stagg737]

12 months of all expenses plus maybe a small buffer in HYSA and money market getting 4 and 5% interest respectively. And then quarterly taxes also set aside in a HYSA. All in all just that cash is earning about 24k a year from interest which is fun.

Checking has 3 months of expenses. So I’m cash heavy for sure but also sitting on a medium and growing investment portfolio

Uh, that's like $500k to hit that amount of interest. Not trying to pry, but surely you're not keeping half a million in an HYSA? That seems like really poor investment optimization if that's the case...

only enough for a months expenses. I agree with using credit for emergencies. I took out a home equity line of credit which I have yet to ever touch, but can use if need be. Costs 50 bucks a year to keep.

Like I mentioned, the problem with this is you can't use credit for some emergencies. You can't typically use credit if you're buying a car and god forbid you need to post bail some places don't accept credit. I like to keep enough cash available that I could buy decent used car if I needed to as I was in a situation right before residency interviews where I got kind of screwed over because of a car situation.

 

[finalpsychyear]

Uh, that's like $500k to hit that amount of interest. Not trying to pry, but surely you're not keeping half a million in an HYSA? That seems like really poor investment optimization if that's the case...


Like I mentioned, the problem with this is you can't use credit for some emergencies. You can't typically use credit if you're buying a car and god forbid you need to post bail some places don't accept credit. I like to keep enough cash available that I could buy decent used car if I needed to as I was in a situation right before residency interviews where I got kind of screwed over because of a car situation.

Well he is on the high earner side so taxes alone for the year are 300 ish maybe more plus the 120-150 in expenses and it may be more than that so 500 sounds about right to always maybe have on hand.

 

[Stagg737]

Well he is on the high earner side so taxes alone for the year are 300 ish maybe more plus the 120-150 in expenses and it may be more than that so 500 sounds about right to always maybe have on hand.

Quarterly taxes cut that down to $75k for taxes at any given time. Even including all that and keeping full year's worth of expenses, it comes out to $42k in expenses per month, which is just absolutely mind boggling to me if we're just talking about personal expenses (mortgage, cars, food, etc) even in HCOL areas. If businesses expenses are in that too then I understand, but the point of having X months of expenses is having that to survive off if you don't have income.

 

[finalpsychyear]

Quarterly taxes cut that down to $75k for taxes at any given time. Even including all that and keeping full year's worth of expenses, it comes out to $42k in expenses per month, which is just absolutely mind boggling to me if we're just talking about personal expenses (mortgage, cars, food, etc) even in HCOL areas. If businesses expenses are in that too then I understand, but the point of having X months of expenses is having that to survive off if you don't have income.

500k includes at least 300k+ in taxes and other business fees (acct, 401k, etc) is how i read that. That would make sense if your earning that much to keep in a HYSA giving 5%. Could you get a way with a years of expenses and always 1-2 quarter of surplus in tax money maybe and you'd be able to cut that down to 250k but some people just like to have the entire year of taxes and expenses in an account and they just replenish it as they use it. My cousin does this it makes him feel less pressure for the year.

Since i am technically hoping for a house in the next 1-2 years I'm annoyed at my down payment sitting in HYSA getting 5% but you can you do.

 

[TexasPhysician]

Attending psychiatrists, how much money do you have in your bank account? curious to know how much liquidity physicians typically have.

This varies significantly with me. It could be 1 month of expenses, but it could also be in the hundreds of thousands if I’m planning a big purchase like a real estate investment.

Physicians do not really need an emergency fund if they save well. I’m better off keeping my money in mutual funds and pulling $ for rare emergencies rather than keeping a bunch of cash in high yield savings accounts.

I also have physician friends that spend a lot, save minimally, and they absolutely should keep 6 months in an emergency fund if they could.

 

[aquatic ape]

been as low as $800 in the past year, but right now ~15k, but funding a spousal IRA soon, and will go back down. wild variation this year, because have paid in vacations 6 months in advance, or a few days before. first year as an attending has kinda crazy swings in checking account. maxed all taxed advantaged accounts between july- dec, and mostly done now for 2024. with sign on bonus, and then a couple months off before starting, it was really inconsistent balances.

goal is probably about 30k. I don't budget very accurately, but seems like enough that would take care of any possible expesnes with plenty of leeway (don't own any real estate, only vehicles)

 

[finalpsychyear]

been as low as $800 in the past year, but right now ~15k, but funding a spousal IRA soon, and will go back down. wild variation this year, because have paid in vacations 6 months in advance, or a few days before. first year as an attending has kinda crazy swings in checking account. maxed all taxed advantaged accounts between july- dec, and mostly done now for 2024. with sign on bonus, and then a couple months off before starting, it was really inconsistent balances.

goal is probably about 30k. I don't budget very accurately, but seems like enough that would take care of any possible expesnes with plenty of leeway (don't own any real estate, only vehicles)

Is this roth ira for spouse? U have until April 2025.

 

[finalpsychyear]

This varies significantly with me. It could be 1 month of expenses, but it could also be in the hundreds of thousands if I’m planning a big purchase like a real estate investment.

Physicians do not really need an emergency fund if they save well. I’m better off keeping my money in mutual funds and pulling $ for rare emergencies rather than keeping a bunch of cash in high yield savings accounts.

I also have physician friends that spend a lot, save minimally, and they absolutely should keep 6 months in an emergency fund if they could.

Agree with the above. However when it comes to down payments and wedding savings those should be saved maybe in a hysa account just for that alone. Had a friend who had invested his down payment and by the time he needed it was down 10-15% vs a 5 % hysa.

 

[psychmd03]

Uh, that's like $500k to hit that amount of interest. Not trying to pry, but surely you're not keeping half a million in an HYSA? That seems like really poor investment optimization if that's the case...


Like I mentioned, the problem with this is you can't use credit for some emergencies. You can't typically use credit if you're buying a car and god forbid you need to post bail some places don't accept credit. I like to keep enough cash available that I could buy decent used car if I needed to as I was in a situation right before residency interviews where I got kind of screwed over because of a car situation.

To each their own it is higher in cash than normal for me but I’m ok with 4.5-5% risk free return. My brokerage is doing well with IRR near 15% over the last few years so just balancing out my risk plus I feel more comfortable having a cash position for any large hits from the business side.

Quarterly taxes cut that down to $75k for taxes at any given time. Even including all that and keeping full year's worth of expenses, it comes out to $42k in expenses per month, which is just absolutely mind boggling to me if we're just talking about personal expenses (mortgage, cars, food, etc) even in HCOL areas. If businesses expenses are in that too then I understand, but the point of having X months of expenses is having that to survive off if you don't have income.

Naw quarterly taxes are much higher than that. Plus again other expenses as well and then also I keep a portion in case I want to purchase another real estate property or possibly apartment. Right now I prefer a bit more dry powder and using the risk free return which still is fine for me for this period of time

 

[Stagg737]

To each their own it is higher in cash than normal for me but I’m ok with 4.5-5% risk free return. My brokerage is doing well with IRR near 15% over the last few years so just balancing out my risk plus I feel more comfortable having a cash position for any large hits from the business side.

Naw quarterly taxes are much higher than that. Plus again other expenses as well and then also I keep a portion in case I want to purchase another real estate property or possibly apartment. Right now I prefer a bit more dry powder and using the risk free return which still is fine for me for this period of time

So taxes are higher than what finalpsychyear was inferring and you're also keeping cash on hand for business expenses. That makes sense. I just don't get why someone would need $500k in HYSA for personal expenses unless they're a wealthy spendthrift.

 

[vanfanal]

100k sitting in a HYSA waiting to be applied to a down payment when I'm ready, and another 20k in my current account. I have a personal line for credit for emergency expenses if needed.

 

[annoyedpsychiatrist]

So taxes are higher than what finalpsychyear was inferring and you're also keeping cash on hand for business expenses. That makes sense. I just don't get why someone would need $500k in HYSA for personal expenses unless they're a wealthy spendthrift.

some people have very different 1 years worth of expenses than me or you, lol. Perhaps in cali 500k may equal a year worth of expenses for some psychiatrists. Im sure some of the older psychiatrists on here have sizeable mortgages/car payments/etc. Ailomoney, child support, etc. Hell life is expensive these days.

 

[psychmd03]

So taxes are higher than what finalpsychyear was inferring and you're also keeping cash on hand for business expenses. That makes sense. I just don't get why someone would need $500k in HYSA for personal expenses unless they're a wealthy spendthrift.

Unfortunately taxes are high and yep I keep a chunk of just in case expenses for a couple real estate properties as well as general business. I agree a 500k a year burn seems quite high to me but I guess in a VHCOL city with someone that also has a family and likes some nice food and travel I guess you could get a burn rate that high but that would be beyond average I would guess for lost psychiatrists since most don’t have the income level to support that

 

[Stagg737]

some people have very different 1 years worth of expenses than me or you, lol. Perhaps in cali 500k may equal a year worth of expenses for some psychiatrists. Im sure some of the older psychiatrists on here have sizeable mortgages/car payments/etc. Ailomoney, child support, etc. Hell life is expensive these days.

$500k/yr is more than $41k per month in “expenses”. I guess if someone has an outrageous alimony/child support I could see that, but if that $500k is only for personal expenses without child support/alimony and that's what they're actually spending each month, then yes, they are a wealthy spendthrift. Other poster isn't just using it for personal expenses, it includes taxes and money for other investments/business expenses, so it's not the same as "personal expenses" imo.

Unfortunately taxes are high and yep I keep a chunk of just in case expenses for a couple real estate properties as well as general business. I agree a 500k a year burn seems quite high to me but I guess in a VHCOL city with someone that also has a family and likes some nice food and travel I guess you could get a burn rate that high but that would be beyond average I would guess for lost psychiatrists since most don’t have the income level to support that

It is, but if that $500k is including your taxes which are apparently well over $300k/yr and you're in a VHCOL then it's a lot more understandable. I feel like having 12 months of expenditures available when you've got that kind of money is overkill, but I get it.

 

[Merovinge]

There are all sorts of odd reasons for having a large cash bucket. Folks who had pauses on student loans and were loading up to pay them off when this unfroze. Saving for downpayment on a house in HCOL area or getting ready to purchase investment property. Golden handcuff payments for people who have been bought out by PE incase they decide to leave the practice. Heck I have heard of docs who need >100k just to pay tail insurance who take crummy jobs that don't cover this in high risk specialties.

 

[finalpsychyear]

There are all sorts of odd reasons for having a large cash bucket. Folks who had pauses on student loans and were loading up to pay them off when this unfroze. Saving for downpayment on a house in HCOL area or getting ready to purchase investment property. Golden handcuff payments for people who have been bought out by PE incase they decide to leave the practice. Heck I have heard of docs who need >100k just to pay tail insurance who take crummy jobs that don't cover this in high risk specialties.

Also i've read that up to 10% cash isn't terrible to have on the sideline. So older docs (55-60) lets say nearing retirement having 5m liquid NW isn't crazy to have 500 in cash as it could fund 2-3 years in a market downturn and having that is another level of insurance policy esp right now getting 5%.

 

[Merovinge]

Also i've read that up to 10% cash isn't terrible to have on the sideline. So older docs (55-60) lets say nearing retirement having 5m liquid NW isn't crazy to have 500 in cash as it could fund 2-3 years in a market downturn and having that is another level of insurance policy esp right now getting 5%.

Agreed, typically bond ladder over cash when nearing retirement but yes it's not a huge difference versus holding cash. You might pay a financial advisor more to setup a ladder than what you gain over holding in a money market. Keeping an allocation in cash to put into the market (aka timing the market) is proven to loss money, but if you are saving the cash to spend in retirement it's very reasonable.

 

[FlowRate]

Agree with the above. However when it comes to down payments and wedding savings those should be saved maybe in a hysa account just for that alone. Had a friend who had invested his down payment and by the time he needed it was down 10-15% vs a 5 % hysa.

This. I have a bunch of cash on hand but that's because I want to be able to do 20%+ downpayment plus fees when I buy a home. Although I haven't been moving on actually buying a home, so I should probably consider starting to move some of it to more active investments. I'm not in a huge hurry with the 5% rates. If we were back in 2019, I might try something different.

 

[Trismegistus4]

Physicians do not really need an emergency fund if they save well. I’m better off keeping my money in mutual funds and pulling $ for rare emergencies rather than keeping a bunch of cash in high yield savings accounts.

I've thought the same thing. When you're just starting out, I get it, but if, after maxing out tax-advantaged retirement vehicles, you've also been DCAing post-tax money into index funds for 10+ years, aren't you pretty much always going to have some shares you can sell for a gain if you encounter a rainy day? Isn't it better to be investing all your extra cash at that point?

 

[The Incredible Nurse]

Less than $1000 at any given time!

Life expenses (groceries, etc) go on credit card which are paid 100% in full each month. After bills, mortgage, etc all my money get dumped into a brokerage account (VTSAX) ... after maxing out 403(b) of course 🙂

Living the big brain life over here. Most people forget the utility of credit cards and disciplined spending

 

[TexasPhysician]

I've thought the same thing. When you're just starting out, I get it, but if, after maxing out tax-advantaged retirement vehicles, you've also been DCAing post-tax money into index funds for 10+ years, aren't you pretty much always going to have some shares you can sell for a gain if you encounter a rainy day? Isn't it better to be investing all your extra cash at that point?

Exactly. The whole emergency fund idea is for people that otherwise wouldn’t have non-retirement account funds to easily pull from. The other part of the crowd likes to argue that you could be selling at a low point. So what? Over the course of a 20+ year career, earning 2-3x+/year in ETFs vs HYSA allows me the ability to sell at a bad time and reinvest when I can and still come out well ahead. With my credit cards having 25K+ credit limits, I can use them and still have time to sell what I want before interest hits. No chance I need to access $25K cash immediately.

 

[FlowRate]

I've thought the same thing. When you're just starting out, I get it, but if, after maxing out tax-advantaged retirement vehicles, you've also been DCAing post-tax money into index funds for 10+ years, aren't you pretty much always going to have some shares you can sell for a gain if you encounter a rainy day? Isn't it better to be investing all your extra cash at that point?

I think a lot of us fall into an income bracket where, if a MBRoth is available, maxing that (+typical pre-tax 401k and regular BRoth and HSA, if applicable) puts you at about where you need to be for typical retirement plans but really not ideal to try and draw from those accounts, even in an emergency.

 

[Trismegistus4]

I think a lot of us fall into an income bracket where, if a MBRoth is available, maxing that (+typical pre-tax 401k and regular BRoth and HSA, if applicable) puts you at about where you need to be for typical retirement plans but really not ideal to try and draw from those accounts, even in an emergency.

OK, but it sounds like you're agreeing with my premise, just saying you don't think it's very common, because given these additional tax-advantaged accounts (mega backdoor Roths, HSAs) that are available to many of us, and/or our expense:income ratios, most of us are putting all of our extra money into tax-advantaged retirement accounts, which we would pay a penalty to withdraw from before 59 1/2.

But I still think that if that doesn't describe you (e.g., a mega backdoor Roth or HSA aren't available to you, you make a well-above-average doctor income and/or have no dependents or low expenses for other reasons such that you're beyond maxing out even a mega backdoor Roth + HSA) it makes more sense over time to DCA all of your extra money into a balanced investment portfolio rather than keeping some in cash.

 

[sloh]

But I still think that if that doesn't describe you (e.g., a mega backdoor Roth or HSA aren't available to you, you make a well-above-average doctor income and/or have no dependents or low expenses for other reasons such that you're beyond maxing out even a mega backdoor Roth + HSA) it makes more sense over time to DCA all of your extra money into a balanced investment portfolio rather than keeping some in cash.

Agreed. I don’t bother with an emergency fund. Just pull from investment portfolio if needed. Focus on making as much as I can and just pouring into VTSAX. Rinse and repeat.

 

[finalpsychyear]

Agreed. I don’t bother with an emergency fund. Just pull from investment portfolio if needed. Focus on making as much as I can and just pouring into VTSAX. Rinse and repeat.

There is something to having 1-2 years of expenses earning 5% when your 100% allocated already to stocks that has this extra cushion feeling.
Not saying i can time the market but in the last few years when dips and big big dips have come I have essentially been close to 1 mo of expenses left in the account and def didn't miss out vs dca by dumping into the market at such times then letting it build back up. Obviously, in addition to regular DCA as a baseline.

 

[calvnandhobbs68]

There is something to having 1-2 years of expenses earning 5% when your 100% allocated already to stocks that has this extra cushion feeling.
Not saying i can time the market but in the last few years when dips and big big dips have come I have essentially been close to 1 mo of expenses left in the account and def didn't miss out vs dca by dumping into the market at such times then letting it build back up. Obviously, in addition to regular DCA as a baseline.

Data is pretty clear that if that's going to end up in stocks at some point anyway (so you're keeping a bunch of cash on hand to "buy dips") it's much better to just get it in the market as early as possible. So if you were going to put that into stocks anyway, it's much better from a return standpoint to just put it all in. There have even been analyses that have looked at if you had the worst timing ever and just bought at market peaks before every single crash and you still have a positive return over time.

This is different than saying hey I just want a lot of cash on hand because I know I'll need it for a down payment or just want 6 months worth of expenses I wouldn't have to think about if I had a TBI or stroke before my disability insurance would kick in or whatever. You're absolutely sacrificing returns for liquidity even keeping it in a HYSA it's just not as painful when it's returning 5% vs 1%.

 

[Stagg737]

Exactly. The whole emergency fund idea is for people that otherwise wouldn’t have non-retirement account funds to easily pull from. The other part of the crowd likes to argue that you could be selling at a low point. So what? Over the course of a 20+ year career, earning 2-3x+/year in ETFs vs HYSA allows me the ability to sell at a bad time and reinvest when I can and still come out well ahead. With my credit cards having 25K+ credit limits, I can use them and still have time to sell what I want before interest hits. No chance I need to access $25K cash immediately.

I'm sure I'm just more risk averse than most, but if you have to post bail in a cash only situation can you pull from those accounts immediately? Without too much detail, I had a warrant on me in residency due to a clerical error and it was in a state/county with cash only bail (fortunately I wasn't actually arrested and didn't have to pay). We see crazy stuff in our field all the time (and life in general!), so having a fair amount of cash immediately available is something I've always just done.

 

[annoyedpsychiatrist]

personally i look at it as 5% is not that terrible for HYSA so having 6mo-1 year cash for immediate access isnt going to necessarily break you. Also for those of paying back loans, consider if you withdrawl a large amount of money, and have significant capital gains my understanding is that would factor in your AGI and increase loan amount for next time youre due to recertify.

I think if it was back to HYSA return of 1-2% id feel more eh about keeping too much in it.

 

[annoyedpsychiatrist]

Speaking of this, what percent are you guys investing domestic vs international? Ive been 60-40 and I feel like this is way too much on international side.

 

[TexasPhysician]

I'm sure I'm just more risk averse than most, but if you have to post bail in a cash only situation can you pull from those accounts immediately? Without too much detail, I had a warrant on me in residency due to a clerical error and it was in a state/county with cash only bail (fortunately I wasn't actually arrested and didn't have to pay). We see crazy stuff in our field all the time (and life in general!), so having a fair amount of cash immediately available is something I've always just done.

Now we are getting into state specific issues. Your state wants you to hand-deliver cash? I haven’t seen this. I had a family member get charged with high bail in New Mexico. They didn’t even need money. You can use equity in a home. In Texas, bail bond companies allow you to pay with credit card and you just need 10-15% down. So a single credit card can get me out with a $250K bond.

I probably have a few thousand sitting at home in a safe. I wouldn’t call it an emergency fund as I use it to pay for things that offer cash discounts regularly. You’d be surprised how many plumbers, electricians, conventions, etc offer cash discounts just by asking. I also buy things at estate sales for rather than buying new. I can make a 10% return on that money just by getting discounts.

 

[Merovinge]

Speaking of this, what percent are you guys investing domestic vs international? Ive been 60-40 and I feel like this is way too much on international side.

I'm about 75% US/25% Int but I plan to shift closer to 70/30 with new money coming in. There are small reasons for a home country bias, but your day in the sun will come when the US gets off it's longest bull run in history. If you look at reddit or anywhere that younger folks are talking online you will find 100% S+P is the flavor of the day. I have a hard time seeing our last presidential debate and thinking that is reasonable, but recency bias is a heck of a bias.

 

[FlowRate]

Speaking of this, what percent are you guys investing domestic vs international? Ive been 60-40 and I feel like this is way too much on international side.

Making the case for international equity allocations

U.S. stock outperformance over the last decade has likely sown the seeds for their underperformance over the coming one.

corporate.vanguard.com

I've followed this advice (60/40.) It's really hard not to be swayed by both historical and recent domestic outperformance.

 

[Stagg737]

Now we are getting into state specific issues. Your state wants you to hand-deliver cash? I haven’t seen this. I had a family member get charged with high bail in New Mexico. They didn’t even need money. You can use equity in a home. In Texas, bail bond companies allow you to pay with credit card and you just need 10-15% down. So a single credit card can get me out with a $250K bond.

I probably have a few thousand sitting at home in a safe. I wouldn’t call it an emergency fund as I use it to pay for things that offer cash discounts regularly. You’d be surprised how many plumbers, electricians, conventions, etc offer cash discounts just by asking. I also buy things at estate sales for rather than buying new. I can make a 10% return on that money just by getting discounts.

It's not even a state thing, where I was at it was a specific county. That state as a whole has no problem with credit for bail, but the county only accepted cash or money order/wire directly from a bank.

 

[annoyedpsychiatrist]

Making the case for international equity allocations

U.S. stock outperformance over the last decade has likely sown the seeds for their underperformance over the coming one.

corporate.vanguard.com

I've followed this advice (60/40.) It's really hard not to be swayed by both historical and recent domestic outperformance.

This is where im mentally stuck, im 60/40 and i know all the logical reasons for vxus but looking at the past averages and the underperformance of international it is very very hard to have 40% in underperformance with the idea of "well itll likely perform in the future". Seems like domestic is a pretty good bet for 10-20 years at least. I think i may switch to 80-20...

 

[annoyedpsychiatrist]

I'm about 75% US/25% Int but I plan to shift closer to 70/30 with new money coming in. There are small reasons for a home country bias, but your day in the sun will come when the US gets off it's longest bull run in history. If you look at reddit or anywhere that younger folks are talking online you will find 100% S+P is the flavor of the day. I have a hard time seeing our last presidential debate and thinking that is reasonable, but recency bias is a heck of a bias.

hopefully that day isnt too far off in the year 2069 lol.

 

[the5thelement]

About $9k in personal checking, $7k in business account. Zero debt/mortgage/car payments. Only think i worry about is food/utility bills.

 

[FlowRate]

This is where im mentally stuck, im 60/40 and i know all the logical reasons for vxus but looking at the past averages and the underperformance of international it is very very hard to have 40% in underperformance with the idea of "well itll likely perform in the future". Seems like domestic is a pretty good bet for 10-20 years at least. I think i may switch to 80-20...

Sound investing advice is often contrary to human cognitive heuristics.

That said, I often wonder if there is a truth/logic to "the US is a country particularly well suited to enable megacorp profits" in a way that has future validity and isn't just trying to retroactively explain the historical outperformance.

 

[littlefred]

About $9k in personal checking, $7k in business account. Zero debt/mortgage/car payments. Only think i worry about is food/utility bills.

House paid for or are you renting?