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Behavioral controls are important too. To help mitigate my losses I only re-gamble half of my winnings from options. The other half buys SCMB to set aside my taxes and SCHD/JEPQ for the rest to give me dividend yielding assets. I can go to zero on all my options money and be forced to wait for a dividend to start gambling again. All trading is just psychological. The numerically optimal thing to do just pushes you to take risks.
Yes, definitely worth looking at, especially what's called a taxable equivalent return. Take a large fund like SCMB which yields about 3.6%. If you're in the 24% marginal tax bracket like me, then you'd have to find a taxable bond fund that yields over 4.7% since federal income tax eats 24% of your earnings. I like Schwab's fund, and some of Nuveen's closed-end-funds that typically yield over 4%.
SCMB - unless you're 60 there is not need to put your money into bonds. You're 36, you don't need income or dividends, you want growth. VOO will provide that. VOO, SCHG (some overlap there but oh well), and SVUV covers a lot of bases. Puts most weight in growth and grants exposure to small cap. I like the percentages too. This is much better than where you started. I mean this is good, a keeper. People can argue all day long but those are solid choices. Also if you own some quality stuff there is no need to sell it. Just put any new money into those 3 funds/percentages. Good job!
I know this is an old post and it’s been 2 weeks but I’ve been researching so much since I posted this. How does this look: VOO 90% SCMB 10% or 3 fund VOO 50%, SCHG 30%, and AVUV 20%? I’m trying to make it less complicated but I’m bad at selling off what I currently own even if I have gains. I don’t want to second guess myself.