How To Invest in Your Brokerage (Superhero) Account To Retire Early

[@DavidFarley-ex6wr]

Ari- love your simple way of explaining things! I don’t care your age, you’ve got wisdom. Thanks for the help

[@earlyretirementari]

@@DavidFarley-ex6wr thanks DF!

[@TheFaster262]

Excellent presentation to explain it all! I was shocked why would someone have so many funds in their account. Whether it was ETF, mutual fund, single stock or not... seems like too much work (or money spent in fees) to maintain.

[@earlyretirementari]

@@TheFaster262 thank you!!

[@HD-mv2qh]

I was going to post the same thing. There seemed to be a lot of overlap. It seemed complicated to track all of that. I only have 2 mutual funds in my account.

[@SteveCrane]

Ari, would be interesting to hear your take on how the superhero account works in combination with Roth and Traditional IRAs as well as cash equivalents within the brokerage account. And how to approach low basis concentration risk in taxable brokerage accounts during early retirement phase vs. filling up tax brackets using Roth conversions. Would stock-based loans or borrowing against a home be a reasonable tool to manage tax timing?

[@tomvanalstyne5771]

Ari, Where do I find the estimated income screen in Right Capital? I have a copy with the Early Retirement Academy. Also the fees screen please.

[@earlyretirementari]

@@tomvanalstyne5771 this is a different software called Kwanti. Not the software in the academy

[@wilfredo3920]

Thanks for the video

[@Engineers_Shred_Too]

Nice Vanguard 80 example portfolio. If you wanted just one vanguard small cap fund in your super hero, would it be VB, VBR, or other?

[@texasbryan]

Do you have a ticker for this Vanguard 80 fund? Thanks!

[@earlyretirementari]

@@texasbryan it’s a portfolio not one fund

[@texasbryan]

@ oh got it. Yes, I now see the list of funds that are in it. Thanks!

[@earlyretirementari]

@ you got it! Happy Sunday

[@clintbuhs7708]

Mr. Taublieb, I have been soaking up your stuff and really appreciate your content as I creep toward that goldan horizon. I respectfully suggest that you consider putting that gigantic microphone off screen, though. You'll look a little bit less silly and I won't get your breath puffing the thunder out of my rec room subwoofer. Those microphones work pretty dang well from 2 ft away. There's no need for it to be attacking you on screen. Keep up the great work.

[@earlyretirementari]

@@clintbuhs7708 I appreciate the feedback!

[@AnthonyGreen-j3v]

Thanks for the breakdown! I need some advice: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). What's the best way to send them to Binance?

[@Steve_SEC]

What do you think of Treasurys instead of HYSA in a Superhero account for someone in the highest tax bracket? I am 60 yo and have $800k in this account, and $3m in my IRA in 50% VTI, 10% VXUS, 5% VB. Thank you for your fantastic podcasts.

[@James4cycling]

If you’re in the highest tax bracket I would recommend a tax exempt Vanguard money market account. It might help with your future IRMAA surcharge.

[@Steve_SEC]

@@James4cyclingI am using VUSXX

[@gregoneal1]

Great video, Ari, but I don’t see that particular flow chart in the Academy, which by the way I highly recommend for anyone who is on the fence about it. I am probably overlooking it. Can you tell me where in the Academy it is? I don’t see it in the modules at the end with all the other flow charts (probably a hundred or more).

[@earlyretirementari]

@@gregoneal1 check the final module it’s there!

[@Sam-z3k6o]

Ari! Ive been watching for several months and I'm ready to retire! I've researched about 1/2 a dozen firms and/or advisors. Let me tell you what is holding me back. I have 3 million, I want to invest 2.75 and get 6.5% return to live off of. 56% of this is Brokerage. The other is 401K and HSA and IRA. I KNOW this is my number...... Now please bear with me. I understand business. I know I am paying for someones expertise. I haven't signed up because I don't want to pay someone $27,500 per year. At the same time I'm leery of doing it on my own. This is a type of paralysis. Can you address this for your audience. (not "justify" it. That's not necessary). Just address it. Thanks!

[@earlyretirementari]

@@Sam-z3k6o you’re not alone and I did address it here: kzbin.info/www/bejne/fmWnf2V5nLWAjpIsi=LSEoTpdivDqS17xn

[@earlyretirementari]

@@Sam-z3k6o kzbin.info/www/bejne/fmWnf2V5nLWAjpIsi=LSEoTpdivDqS17xn

[@Sam-z3k6o]

@@earlyretirementari Awesome! I'm sure Ill be in contact soon! Thank you for taking time to reply.

[@earlyretirementari]

@ you’re very welcome!!

[@dforrest4503]

You make some very good points. It’s important to look at funds’ turnover as that can factor into capital gains distributions. I have a couple of great mutual funds but they have very high distributions - luckily those are in my Roth IRA. One other thing to think of is if you’ve owned funds for a long time, you may have substantial capital gains if you have to sell. For those funds, I take all the distributions and instead of reinvesting them have bought a few similar funds in recents years, and if I need to sell, those will be sold first since I won’t have as much capital gains to be taxed.

[@srconrad]

Ari, great content as usual. I have a couple questions. First one might be a good topic for your channel. I would be super interested for sure. I retired on the early side at 60 a little over a year and a half ago. I had a decent amount in my "superhero" account when I retired but I sold my California house and paid cash for a house in Arizona. Now my superhero account is basically drained. Most of my funds are in a traditional IRA and a smaller percentage but still decent amount in a Roth IRA. My plan, at least for the next two years, is to maximize Roth conversions up to the 24% tax bracket. What would you recommend going forward with the superhero account? Would you try to get more funds in there at the expense of Roth conversions? Or just take from the traditional IRA as needed and keep the superhero account relatively lean? I think a lot of current retirees end up in this same boat with a majority of their wealth in a traditional IRA. I look forward to your thoughts. The second question has to do with your Early Retirement Academy. Do you think it would be beneficial for somebody like me that is recently retired? I am a do-it-yourselfer and I currently use Boldin software which is really good but I could afford your one-time cost for your academy and it seems like it would be another good resource to make sure I'm on the right path. What is your honest opinion?

[@earlyretirementari]

Honestly, I’d use academy but ignore the software unless you find it’s more intuitive. You already have the software access of some kind and don’t get it just for that. Mine is designed to teach you how to think about your retirement with different lessons as your guide. Software is simply a benefit. Regarding your question, I’d love to answer - but have no idea about your spending goals, health, legacy goals, etc.

[@srconrad]

@@earlyretirementari Hmm. My health is now excellent after dropping 60+ pounds and working out consistently for the last 2.5 years. Not worried about legacy goals. Spending goals are reasonable (based on funds available) and adjustable depending on market conditions. I'm waiting until 70 to maximize Social Security. I guess I just feel like I'm missing out as you talk about how powerful brokerage accounts are and mine is lean at the moment. I have the option of keeping it lean or beefing it up over time. I'm not sure which is more beneficial or even if there are reasons to move more funds to my brokerage account. Seems like it would be more beneficial in a Roth until needed. It's going to cost the same in taxes to put it in brokerage or Roth. Why not let it grow tax free rather than paying taxes on the income thrown off in a brokerage account? I think I maybe just answered my own question.

[@gregoneal1]

@@srconrad Get the Academy. Probably some of the best money I ever spent.

[@alk672]

What's with all the small cap tilt. People really believe in small cap huh...

[@goobtron]

That portfolio looks like absolute garbage

[@davidmurrell8543]

I thought the same thing, but you know, I'd trade portfolios straight up and be A-Okay with it.

[@XxChuyoxX]

Looks complicated for no good reason