Objectives
- Give time for existing investments to grow, while covering expenses with part-time self employment income
- To save enough to scale back work significantly by the age of 45 (~$20-25k/year in income from investments)
Risk Tolerance
I have a high risk tolerance. Due to my goal of financial independence at an early age I can easily weather economic downturns that may come along. I also have the flexibility to alter my goals and savings rate based on actual performance, without negative repercussions.
Allocations
- Large-Cap U.S. Equity Funds – 35%
- Mid-Cap U.S. Equity Funds – 15%
- Foreign Equity Funds – 20%
- REIT Funds & Physical Real Estate – 10%
- Bond Funds – 10%
- Non-traditional Investments – 5%
- Cash – 5%
Selection Criteria
- Fund expense ratios (low)
- Tax efficiency (optimized)
Other Notes
- Will not attempt to time the market
- Re-balancing will be attempted every 6 months, and may use the technique of changing future automatic investment allocations to gradually meet allocation goals
