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Re: Bond funds- your percentage of intermediate vs. short-te

Sometimes I question why I invest in the Vanguard Total Bond Fund with an SEC yield of 1.98% on average maturity of close to 8 years when you can get at least 2.25% on a 5-year CD and eliminate the risk.
by Bustoff
Tue Jul 22, 2014 9:17 am
 
Forum: Investing - Help with Personal Investments
Topic: Bond funds- your percentage of intermediate vs. short-term?
Replies: 12
Views: 1109

Re: Can it be wrong to be too risk averse?

My brother ... is very risk averse and invests only in very high rated bonds (mostly muni bonds). He knows he is leaving profits on the table, and he knows these investment choices offer higher than 0% risk. He has a good job, quite secure, and he is a decently frugal person. He points out that a l...
by Bustoff
Tue Jul 22, 2014 8:05 am
 
Forum: Investing - Theory, News & General
Topic: Can it be wrong to be too risk averse?
Replies: 49
Views: 2274

Bond funds- your percentage of intermediate vs. short-term?

Hello, Are there any recommendations for the percentage of intermediate-term-bond funds vs short-term-bond funds? For instance, if one is 30/70 stock/bond, is there any guidance as to the percentage that should be in intermediate-term-bond funds vs short-term-bond funds? I'm curious because it appea...
by Bustoff
Mon Jul 21, 2014 7:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond funds- your percentage of intermediate vs. short-term?
Replies: 12
Views: 1109

Re: How many Bogleheads golf?

Been playing golf for years. It's a great way to spend a few hours outdoors.
by Bustoff
Mon Jul 14, 2014 9:33 am
 
Forum: Personal Consumer Issues
Topic: How many Bogleheads golf?
Replies: 81
Views: 4296

Do TIPS protect against increases in Food and Energy.

Does a Liability Matching Portfolio consisting of TIPS protect against inflation from food and energy? I ask because I'm under the impression that "food and energy" are not taken into account when the government calculates inflation. As most of my basic expenses consist of food and energy,...
by Bustoff
Sat Jul 12, 2014 10:31 am
 
Forum: Investing - Theory, News & General
Topic: Do TIPS protect against increases in Food and Energy.
Replies: 6
Views: 1140

Re: Retired Bogleheads want to relocate to California

Really enjoying all the viewpoints, especially the interesting suggestions for various locations and towns in CA, many of which sound pretty cool. I like the suggestions to rent as it offers a lot of flexibility. For the time being, maybe starting with some short term rentals would give us a chance ...
by Bustoff
Mon Jun 30, 2014 9:56 am
 
Forum: Personal Consumer Issues
Topic: Retired Bogleheads want to relocate to California
Replies: 109
Views: 6830

Re: Best Road Trip Vehicle

Rental is the way to go. Get a couple of trips under your belt and you will be in much better shape to decide. You soon will be the expert answering questions like this. Kind of expensive. This is Alamo's rate for a small SUV --Toyota RAV4 or similar. After a couple of trips at those rates I will n...
by Bustoff
Fri Jun 27, 2014 12:20 pm
 
Forum: Personal Consumer Issues
Topic: Best Road Trip Vehicle
Replies: 35
Views: 2723

Re: Best Road Trip Vehicle

But you don't want something so huge that it's difficult to drive. It's not a matter of "camping"; it's a matter of having the freedom to stay near somewhere interesting when it's late, you're tired, and there's no other lodging available. It would be really nice to have the ability to bo...
by Bustoff
Fri Jun 27, 2014 6:54 am
 
Forum: Personal Consumer Issues
Topic: Best Road Trip Vehicle
Replies: 35
Views: 2723

Re: Best Road Trip Vehicle

We are trying to decide between a Van or an SUV for these trips. Not planning on doing any camping, at least no tent camping. Maybe a night or two in a cabin, but I'm not planning on roughing it. If I have to sleep outside, I need a fire and a bottle of B&B.
by Bustoff
Thu Jun 26, 2014 2:49 am
 
Forum: Personal Consumer Issues
Topic: Best Road Trip Vehicle
Replies: 35
Views: 2723

Best Road Trip Vehicle

What is the best vehicle, for extended road trips to National Parks out west. Retired, no kids.
Would it be better to buy new or used ?
by Bustoff
Thu Jun 26, 2014 1:58 am
 
Forum: Personal Consumer Issues
Topic: Best Road Trip Vehicle
Replies: 35
Views: 2723

Sharpe Ratios for Vanguard Bond Funds.

Below are 3-Year Trailing Sharpe Ratio's for some Vanguard Bond Funds contrasting ratio's from last year and this year. All the ratio's deceased substantially from Jan. 2013. Anyone know why this is? Anyone? Bueller? 1/31/13 5/31/14 3-Year Trailing Sharpe Ratio Sharpe Ratio VBMFX- Total Bond Fund 1....
by Bustoff
Wed Jun 25, 2014 10:31 am
 
Forum: Investing - Theory, News & General
Topic: Sharpe Ratios for Vanguard Bond Funds.
Replies: 1
Views: 356

Re: Liability Matching Portfolio? Really?

As I understand this you have the LMP and RP. Lets say you have basic expenses that that run at 40K per year. Thus, a sixty-year-old would need a 30 year LMP that amount to 1.2M allocated to SPIA's or TIPS simply for the LMP side. Is that the basic idea? Bustoff: That is how I implemented the Berns...
by Bustoff
Tue Jun 24, 2014 2:25 pm
 
Forum: Investing - Theory, News & General
Topic: Liability Matching Portfolio? Really?
Replies: 71
Views: 6891

Re: "William Sharpe: An unsung hero of passive investing"

Thanks for posting Taylor.

Speaking of Sharpe, is there anyplace that lists Sharpe ratios for Vanguard Bond funds?
by Bustoff
Tue Jun 24, 2014 1:48 pm
 
Forum: Investing - Theory, News & General
Topic: "William Sharpe: An unsung hero of passive investing"
Replies: 9
Views: 1098

Re: Liability Matching Portfolio? Really?

As I understand this you have the LMP and RP.
Lets say you have basic expenses that that run at 40K per year. Thus, a sixty-year-old would need a 30 year LMP that amounts to 1.2M allocated to SPIA's or TIPS simply for the LMP side.
Is that the basic idea?
by Bustoff
Tue Jun 24, 2014 10:09 am
 
Forum: Investing - Theory, News & General
Topic: Liability Matching Portfolio? Really?
Replies: 71
Views: 6891

Re: Investment Withdrawals - Behavioral Aspect

This is a general question, I'm still in the accumulation stage, but does anyone get a queasy feeling when making withdrawals from their investment accounts (retirement, taxable, etc.)? I mean, after x years of working,saving and budgeting and more working, saving and budgeting how does one go from...
by Bustoff
Tue Jun 24, 2014 9:36 am
 
Forum: Investing - Theory, News & General
Topic: Investment Withdrawals - Behavioral Aspect
Replies: 14
Views: 967

Re: Wind blew off shingles, now roof is leaking!

I'd say you're out of luck. The insurance company held up their end of the deal by cutting you a check. You didn't get the work done. Kosmo - What's the time limit ? If there is a time limit it was not disclosed to me. I'm not denying my difficulty finding a trusted contractor contributed to the pr...
by Bustoff
Sun Jun 22, 2014 2:43 pm
 
Forum: Personal Consumer Issues
Topic: Wind blew off shingles, now roof is leaking!
Replies: 27
Views: 1445

Re: Wind blew off shingles, now roof is leaking!

I guess this is my punishment for being too cautious. Our last roofer did a lousy job and we have had problems as a result. I have very little trust with home improvement contractors.
by Bustoff
Sun Jun 22, 2014 1:44 pm
 
Forum: Personal Consumer Issues
Topic: Wind blew off shingles, now roof is leaking!
Replies: 27
Views: 1445

Re: Wind blew off shingles, now roof is leaking!

So your roof has gone unrepaired for approximately 4 months so far and the only thing protecting it is a temporary tarp which hasn't been touched or adjusted since it was put in place? Yes. And my concern is the insurance company will say it's my fault for not getting the roof repaired in a timely ...
by Bustoff
Sun Jun 22, 2014 1:27 pm
 
Forum: Personal Consumer Issues
Topic: Wind blew off shingles, now roof is leaking!
Replies: 27
Views: 1445

Re: Wind blew off shingles, now roof is leaking!

Did you have the roof repaired in a timely manner back in March? No, but for a good reason. We had some trouble getting some contractors to give us a bids. Some said they did not want to get involved with competitive bidding. My understanding was they would only do the work if we submitted our clai...
by Bustoff
Sun Jun 22, 2014 1:17 pm
 
Forum: Personal Consumer Issues
Topic: Wind blew off shingles, now roof is leaking!
Replies: 27
Views: 1445

Wind blew off shingles, now roof is leaking!

At the end of February a wind storm blew some shingles off our roof. The insurance company sent a restoration company out to tarp that section of the roof. The area consisted of about six sq. ft. and was located just above two skylights. The insurance company then sent an adjuster who issued a check...
by Bustoff
Sun Jun 22, 2014 1:08 pm
 
Forum: Personal Consumer Issues
Topic: Wind blew off shingles, now roof is leaking!
Replies: 27
Views: 1445

Re: Retired Bogleheads want to relocate to California

I checked out housing prices in Riverside county after a friend of mine moved to CA. He came into to some money and initially bought a $400K home near Palm Springs. A few years later, he opted to downsize and moved into a much smaller place in Morongo Valley, which cost under $100K. It's only about...
by Bustoff
Sun Jun 22, 2014 12:37 pm
 
Forum: Personal Consumer Issues
Topic: Retired Bogleheads want to relocate to California
Replies: 109
Views: 6830

Re: Retired Bogleheads want to relocate to California

Another possibility: Kernville (adjacent to the Sequoia National Forest about 1 hour from Bakersfield which has air connections to large west coast hubs like Houston, Denver, and Phoenix) You will definitely find comfortable houses in the $250-300K range here -- and much less if you want a more rus...
by Bustoff
Sun Jun 22, 2014 12:21 pm
 
Forum: Personal Consumer Issues
Topic: Retired Bogleheads want to relocate to California
Replies: 109
Views: 6830

Re: Retired Bogleheads want to relocate to California

Really appreciate the thoughts and suggestions. We are trying to think a little more outside the box by considering neighboring states. You can get similar climate and resources elsewhere and live a far better lifestyle , IMO, and have plenty of extra cash around to visit whenever you want. Details ...
by Bustoff
Sun Jun 22, 2014 12:15 pm
 
Forum: Personal Consumer Issues
Topic: Retired Bogleheads want to relocate to California
Replies: 109
Views: 6830

Re: Retired Bogleheads want to relocate to California

$750,000 Condos !!! I would never be able come here and agonize about investing because there would be nothing left to invest...it would all be in the condo :shock: For years we worked and saved with the hope of retiring in California. I am not trying to pick on you, but I am having trouble reconci...
by Bustoff
Sun Jun 22, 2014 12:03 pm
 
Forum: Personal Consumer Issues
Topic: Retired Bogleheads want to relocate to California
Replies: 109
Views: 6830

Re: Retired Bogleheads want to relocate to California

You need to analyze what it is about California that you seek? Mainly the climate and geographic diversity. Where we live in the midwest the winters are cold and the summers are unbearably hot and humid. Played golf on Thursday but it was so hot and humid it's not enjoyable -- and it's only June. I...
by Bustoff
Sun Jun 22, 2014 11:43 am
 
Forum: Personal Consumer Issues
Topic: Retired Bogleheads want to relocate to California
Replies: 109
Views: 6830

Re: Retired Bogleheads want to relocate to California

P.S. I think they still have trailer parks in HB, even some right along the beach. Is that boglehead enough for you? https://www.google.com/search?client=safari&rls=en&q=trailer+park+huntington+beach&ie=UTF-8&oe=UTF-8 Yes they are still there. I don't think the wife would go for it ...
by Bustoff
Sun Jun 22, 2014 11:12 am
 
Forum: Personal Consumer Issues
Topic: Retired Bogleheads want to relocate to California
Replies: 109
Views: 6830

Re: Retired Bogleheads want to relocate to California

Is the price of your house really what defines a boglehead? I thought it was more along the lines of live below your means, use low cost funds for investing, etc. Agree 100%. I was hoping that's what my post conveyed. Here are some nice condos built in 2000 only blocks from the beach in HB that sol...
by Bustoff
Sun Jun 22, 2014 11:09 am
 
Forum: Personal Consumer Issues
Topic: Retired Bogleheads want to relocate to California
Replies: 109
Views: 6830

Retired Bogleheads want to relocate to California

"And California Dreamin' is becoming a reality" .... NOT. For years we worked and saved with the hope of retiring in California. But due to the cost of housing we feel our dream is fading away. Last December we were back in Huntington Beach visiting family over the holidays. We love the c...
by Bustoff
Sun Jun 22, 2014 9:43 am
 
Forum: Personal Consumer Issues
Topic: Retired Bogleheads want to relocate to California
Replies: 109
Views: 6830

Re: Cost of car compared to Gross Income

During our working years we always bought new cars and drove them until they expired. We both worked so we needed two cars. Never had a clue as to cost as percentage of wages. Most of that time at least one car was a Honda Accord.
by Bustoff
Sun Jun 22, 2014 7:22 am
 
Forum: Personal Consumer Issues
Topic: Cost of car compared to Gross Income
Replies: 82
Views: 4599

Re: Any other retirees moving money out of Vanguard?

And my point was -- "you can create your own bond mix, and not abandon Vanguard." I don't claim that my way is the only or best way, just that Vanguard has such a wide selection of good inexpensive bond funds, plus anything you want to buy thru VBS (Vanguard Brokerage Services), that you ...
by Bustoff
Sat Jun 21, 2014 3:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Any other retirees moving money out of Vanguard?
Replies: 54
Views: 6146

Re: Any other retirees moving money out of Vanguard?

... 60% in Vanguard Intermediate-Term Investment-Grade Fund Admiral Shares (VFIDX) (average duration 5.2 yrs). A lot of Bogleheads use Vanguard Intermediate-Term Investment-Grade Fund and/or the Short-Term Investment-Grade Fund. But what about experts like Swedroe and Bernstein who advocate keeping...
by Bustoff
Sat Jun 21, 2014 2:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Any other retirees moving money out of Vanguard?
Replies: 54
Views: 6146

Re: Any other retirees moving money out of Vanguard?

But bond ratings do not represent absolute truth. You can't tell what a bond will do in the future any more than a stock. Intermediate Investment-Grade is Vanguard's classiest bond fund. How's that for a rating? I'm serious. If you can't see that this is a good fund then maybe you are not ready for...
by Bustoff
Sat Jun 21, 2014 2:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Any other retirees moving money out of Vanguard?
Replies: 54
Views: 6146

Re: Any other retirees moving money out of Vanguard?

... 60% in Vanguard Intermediate-Term Investment-Grade Fund Admiral Shares (VFIDX) (average duration 5.2 yrs). A lot of Bogleheads use Vanguard Intermediate-Term Investment-Grade Fund and/or the Short-Term Investment-Grade Fund. But what about experts like Swedroe and Bernstein who advocate keeping...
by Bustoff
Sat Jun 21, 2014 1:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Any other retirees moving money out of Vanguard?
Replies: 54
Views: 6146

Re: Any other retirees moving money out of Vanguard?

Appreciate all the replies.
There is currently another thread discussing CD's being used as fixed-income alternatives outside of Vanguard.

[Morningstar article] the best fixed income investment
by Bustoff
Sat Jun 21, 2014 9:26 am
 
Forum: Investing - Help with Personal Investments
Topic: Any other retirees moving money out of Vanguard?
Replies: 54
Views: 6146

Re: Best Fixed Income Investment - Morningstar article

SEC yield on Int-Term Inv-Grade, VFICX, is 2.54% (2.64% for Admiral shares, VFIDX), so you're only giving up 24-34 basis points for the CD. Whether or not the extra yield is worth the credit risk and much higher interest-rate risk is up to you. Personally I still hold some of this bond fund and som...
by Bustoff
Sat Jun 21, 2014 9:13 am
 
Forum: Investing - Theory, News & General
Topic: [Morningstar article] the best fixed income investment
Replies: 55
Views: 3723

Re: Best Fixed Income Investment - Morningstar article

In my Vanguard IRA I have short term investment grade fund and intermediate term investment grade fund. Does it make sense to replace either of these with 5 year CDs from Vanguard in the IRA brokerage account? IMO, it depends on your overall investment plan and how much extra work you're up for. Ow...
by Bustoff
Sat Jun 21, 2014 9:04 am
 
Forum: Investing - Theory, News & General
Topic: [Morningstar article] the best fixed income investment
Replies: 55
Views: 3723

Re: Any other retirees moving money out of Vanguard?

The Vanguard Target Retirement Income Fund is 30/70 but it has only 39.2% of assets in the Total Bond Fund: https://personal.vanguard.com/us/funds/snapshot?FundId=0308&FundIntExt=INT Not sure why, but I never spent much time considering an all-in-one-fund. I suspect the illusion of control has ...
by Bustoff
Fri Jun 20, 2014 12:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Any other retirees moving money out of Vanguard?
Replies: 54
Views: 6146

Re: Any other retirees moving money out of Vanguard?

If you are that uncomfortable after all this time, you should change something. CDs seem like a good idea but what about other bond funds offered at VG such as corporates and TIPS? You've probably given these things some thought so I'm curious why those don't interest you for some of your bond allo...
by Bustoff
Fri Jun 20, 2014 9:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Any other retirees moving money out of Vanguard?
Replies: 54
Views: 6146

Any other retirees moving money out of Vanguard?

I can't find a comfort "zone" within Vanguard's fixed-income offerings. Retired a few years ago and being very risk averse settled on a 30/70 bond/equity allocation. Vanguard recommended the entire bond allocation go into the Total Bond Index Fund. I was never comfortable with the thought ...
by Bustoff
Fri Jun 20, 2014 7:52 am
 
Forum: Investing - Help with Personal Investments
Topic: Any other retirees moving money out of Vanguard?
Replies: 54
Views: 6146

Re: Both funds have same Risk Level, which is safer?

I want to invest in the safer of these two funds. Vanguard Ltd-Term Tax-Exempt and Vanguard Short-Term Investment-Grade both have a risk level rating of 1. My rule of thumb is that munis are priced to have the same after-tax yield as corporate bonds in a 25% tax bracket. Since Short-Term Investment...
by Bustoff
Fri Jun 20, 2014 6:04 am
 
Forum: Investing - Help with Personal Investments
Topic: Both funds have same Risk Level, which is safer?
Replies: 18
Views: 1182

Re: When To Use Municipal Bonds

baw703916 wrote:-muni bond interest can cause social security income to be taxable, so it isn't always "tax free" for retirees.

Wow, I didn't realize that Muni bond interest that does that!

What bond funds can we use that won't cause social security income to be taxable?
by Bustoff
Fri Jun 20, 2014 5:44 am
 
Forum: Investing - Help with Personal Investments
Topic: When To Use Municipal Bonds
Replies: 31
Views: 1777

Re: Both funds have same Risk Level, which is safer?

Define what safer means to you. Took the words right out of my...head. By the way (Bustoff) the risk ratings provided by Vanguard are meant to be very rough guides. So two investments rated as a "2" do not necessarily "have the same risk." In fact, precisely speaking, they most ...
by Bustoff
Fri Jun 20, 2014 5:16 am
 
Forum: Investing - Help with Personal Investments
Topic: Both funds have same Risk Level, which is safer?
Replies: 18
Views: 1182

Re: Both funds have same Risk Level, which is safer?

Thanks guys.
Having this money sitting in the PMM fund is irritating.
Iv'e been reading Swedroe's bond book and he advises staying with AAA and AA. But his book was written in 2006 when you were getting 4% in short-term AAA and AA.
by Bustoff
Thu Jun 19, 2014 7:09 am
 
Forum: Investing - Help with Personal Investments
Topic: Both funds have same Risk Level, which is safer?
Replies: 18
Views: 1182

Re: To stay a Boglehead, I have to leave Bogleheads.org

bonaire27,
Thanks for the reminder.
For me this forum can be like walking into a gourmet all-you-can-eat buffet. Everything looks good!
by Bustoff
Wed Jun 18, 2014 2:12 pm
 
Forum: Investing - Theory, News & General
Topic: To stay a Boglehead, I have to leave Bogleheads.org
Replies: 56
Views: 6101

Re: Both funds have same Risk Level, which is safer?

Just need a place to park some cash in taxable account. I don't want to move out to intermediate-term when I can get better rates on 5 year CD's.
by Bustoff
Wed Jun 18, 2014 10:58 am
 
Forum: Investing - Help with Personal Investments
Topic: Both funds have same Risk Level, which is safer?
Replies: 18
Views: 1182

Both funds have same Risk Level, which is safer?

I want to invest in the safer of these two funds. Vanguard Ltd-Term Tax-Exempt and Vanguard Short-Term Investment-Grade both have a risk level rating of 1. When both bond funds have the same assigned risk level, how can we determine which fund is safer? Do you pick the one with the lower duration or...
by Bustoff
Wed Jun 18, 2014 7:46 am
 
Forum: Investing - Help with Personal Investments
Topic: Both funds have same Risk Level, which is safer?
Replies: 18
Views: 1182

Re: Bernstein: A Decade of Super-Low Returns [1.4% for 60/40

A 60/40 portfolio has an expected real return of about 1.4% given Bill's estimates. So his outlook is even more bleak. What do you think of Bill's expected returns? How do you plan to deal with low expected returns? If this is true it would be insane to take any equity or bond risk. Seriously, why ...
by Bustoff
Wed Jun 18, 2014 6:51 am
 
Forum: Investing - Theory, News & General
Topic: Bernstein: A Decade of Super-Low Returns [1.4% for 60/40]
Replies: 207
Views: 17125

Re: Convince me to visit Italy

livesoft wrote:C'mon folks. How about some "interesting" Italian stories?


What is interesting and fun is to buy a cheap dummy wallet and stuff it with monopoly money and a special treat for the pickpocket.
by Bustoff
Wed Jun 18, 2014 5:03 am
 
Forum: Personal Consumer Issues
Topic: Convince me to visit Italy
Replies: 77
Views: 5328

Re: Are MBS's safe for bond heavy portfolios?

Hi Valuethinker,
I thought about including Swedroe's name in the subject line but was concerned it might appear as though I was calling him out on a point when it's probably my own inability to grasp a more subtle distinction.
Maybe Larry will chime in nonetheless.
by Bustoff
Tue Jun 17, 2014 9:21 am
 
Forum: Investing - Help with Personal Investments
Topic: Are MBS's safe for bond heavy portfolios?
Replies: 14
Views: 774

Re: I just invested a lump sum

Look at it from another perspective -- focus on your stream of income. Even if your investment dropped considerably, the yields from Total Int. and Total Stock, which are 3.08% and 1.74%, they keep flowing in.
by Bustoff
Tue Jun 17, 2014 8:40 am
 
Forum: Investing - Help with Personal Investments
Topic: I just invested a lump sum
Replies: 33
Views: 5050
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