Leave a Reply

Your email address will not be published. Required fields are marked *

36 Comments

  1. Wow, great map! I might take a shot at one, although it won’t top some of the ones I have seen on the chain gang…

    I am conflicted about the rising equity glidepath… It makes perfect sense to me and Michael Kitces knows his crap (excellent interview on the Mad Fientist podcast recently), but Jim Collins also makes a good case for his approach. We are currently about 52% equities,43% Bonds and 5% cash at this point…

    • Mr. Groovy

      Haha! We definitely need the Grumby take on the Money Map. And you are so right about the glidepath strategy. Kitces, one of its creators, is awesome. But JL Collins, who doesn’t like th glidepath strategy, is awesome too. Damn, this personal finance stuff is hard! Right now we’re siding with Kitces. Will that work out? We’ll see. I got my fingers crossed. Thanks for stopping by, Mr. G. It’s always great learning what your fertile mind is thinking. Cheers.

  2. Great money map, I like how you have the groovy van as your portfolio. LoL’ed at ‘a warm place to go to the bathroom.’ Hilarious!!
    I never heard of the glidepath strategy, thanks for that info!

    • Mr. Groovy

      Nothing much better than a warm place to go to the bathroom. I definitely have my priorities right. Anyway, I’ll be doing a more in-depth look at the glidepath strategy soon. We think it’s the perfect strategy for the critical first five years of retirement. But there are a lot of financial heavyweights (i.e., JL Collins) who don’t like the glidepath strategy. Damn, this FIRE stuff is hard! Thanks for stopping by, Kris. It’s always great hearing from you.

    • Mr. Groovy

      Thanks, Joe. I really appreciate your kind words. And, yes, so far it’s working out. Despite a low equity exposure, our portfolio has still returned over $100K to date. Not to shabby for being very defensive. Will our good fortune continue? We’ll see. The plot thickens.

  3. You threw me when you ended with “Thriller”, a fantastic album but so vastly different from the others. 🙂 Boston was (and still is ) a top fave for me (and I’ve wisely taught the children to love it too. 🙂 Cars, The Cars (circa 1978) was another phenom album, and I remember we loved Tom Petty and the Heartbreakers Damn the Torpedos. There’s no other decade like the 70’s for awesome music. 🙂

    • Mr. Groovy

      Yeah, Thriller was the oddball in that list. But don’t forget, I wasn’t pointing out my favorite albums during my formative years. I was pointing out the most influential/popular albums during my formative years. I loved Boston and Bat Out of Hell. I didn’t like The Wall. I thought it was too dreary. I wasn’t a big fan of Saturday Night Fever and Thriller when they were released. But I do appreciate them now. And, yes, I definitely missed a lot of great albums. I love the Cars and Tom Petty. I’m also a big Eagles fan. Love your taste in music, Laurie. The 70s were right up there with the 60s. Hope all is well on the farm. Cheers.

    • Mr. Groovy

      Haha! My bad. I meant “mad” in a crazy sense, not an angry sense. I’ll have to make some adjustments to my Money Map. And thank you for getting this chain gang going. Great idea, and great exercise that all FIRE enthusiasts should try.

  4. What took you so long?! JK – Nice work, Mr. Groovy! I hope Mrs. Groovy is well compensated for modeling your nutshell.
    I’ll have to study up on the Glidepath approach. It looks like a smart move to avoid major volatility.

    • Wade Pfau has some of the best articles on this. His site is retirementresearcher.com. He wrote a good article with Michael Kitces called “Reducing Retirement Risk with a Rising Equity Glide Path.”. You might also research “sequence of returns risk”.

      I think even Pfau and Kitces recognize that the glide path strategy has limitations. But we believe it’s right for us.

    • Mr. Groovy

      Thanks, Cubert. The rising glidepath strategy is very defensive. A lot of people that I respect think it’s too defensive. I’ll be writing a post on the pros and cons of the glidepath strategy soon. And, yes, I have to be real nice to Mrs. Groovy for the foreseeable future. If I didn’t surrender to those terms, she never would have posed for the Money Map. Sigh. No one ever said marriage was going to be easy.

    • Mr. Groovy

      Hey, Fritz. Mrs. Groovy thought they were cookies too. But they’re actually loaves of bread. I was thinking hippies call money bread, so I was trying to be cute. Fail! I may have to update my map and just replace the cookie-looking bread with images of dollars bills. Hey, no one ever said joining a chain gang was going to be easy. Hope all is well at World Headquarters, my friend. Cheers.

  5. Question for you: What was your allocation before retiring? I’m guessing it was more in equities vs. bonds during the accumulation phase, which leads to this question: to get to the lower equity ratio, did you reallocate right before retiring, or shift your investing the last few years before retirement to slowly get to the lower equity ratio?

    I’m guessing you modified your investment allocation during the accumulation phase, rather than selling equities (and paying tax on the gains), but was wondering if you could talk more about this. Maybe a future post? It’s been on my mind as I read more about the glidepath strategy.

    P.S. Say to to Mrs. Groovy for me. I’ve been thinking about you two. Moe says hi 🙂

    • Mr. Groovy

      Hey, Kate. Yeah, we definitely took a couple of years to reduce our equity exposure. Going into 2015, we were around 70% equities and 30% bonds. We then shifted our contributions in our tax-advantaged accounts to almost all bonds. When 2016 arrived, we were around 55% equities and 45% bonds. We continued buying bonds with our tax-advantaged accounts in 2016, and when we sold an energy fund, we put most of the proceeds into bonds. When 2017 arrived, we were at 40% equities and 60% percent bonds. In 2017, we continued to reduce our equity exposure. The stock market scares us now. The Case-Schiller index is very high, and we think the market is going to have a major correction soon. So every month we’ve been exchanging equities for bonds in our Roth accounts. Right now we’re at 35% equities and 65% bonds. We’ll probably maintain the current allocation until there’s a major correction. This will put us in a great position to accelerate our glidepath strategy and load up on equities when they’re dirt cheap. I’ll right a more detailed post soon on the glidepath strategy and our implementation of it. Thanks for stopping by, Kate. And thanks for reaching out to Mrs. Groovy. When she saw that you and Moe were sending your regards, she was tickled pink.

  6. Boston, Meatloaf and Thriller – what good memories on a Friday morning 🙂 I saw Meatloaf in concert in college too! Your money map is awesome – love the creativity and pics! I’m sure Mrs. G is liking that representation too! I need to read more about the glidepath strategy. I guess I didn’t realize you had such a low equity allocation at this point. It makes a ton of sense to me. Happy Weekend Groovies!

    • Do you also remember the Thriller video being shown in movie theaters? MTV was in its infancy back then, and a lot of cable providers didn’t even carry it. So to promote the album, the record label got theaters to show the video as a short before the feature presentation. I worked as an usher back then and people got so excited when they found out Thriller was on the menu. Fun memories. And, yes, I’ll have to do a post on our glidepath strategy. We’re currently at 35% equities. And we’re thinking about going down to 30% by the end of the year. I just don’t see how we avoid a 2008-like correction in the next couple of years. And we want to be in a great position to pounce on stocks when they’re dirt cheap. Thanks for stopping by, Vicki. I’m sure that Meatloaf concert was a blast. Have a great weekend too.

    • Haha! Bread is hippie slang for money. I don’t think hippie slang translates very well with Millennials. I didn’t think this out very well. Oh, well. And, yes, the glidepath strategy is very interesting. I’ll have to do a post on it soon. It should be noted that a number of people I respect–JL Collins, in particular–don’t like the glidepath strategy. The plot thickens. Thanks for stopping by, Lilly. It’s always a pleasure hearing from you.