Bogleheads.org

Let's see... the value factor is supposed to be more persistent and positive than the size factor or the market factor. However, recent evidence suggests that MOM, a growth factor, is also persistent and positive. Now we have another positive factor, profitability, associated with growth. So two fa...

The choice of an investor's percentage of equities that are international is much less important than the choice of percentage of the overall portfolio that is in bonds. Having said that, I really don't understand why some are so against holding international. If an investor owns zero international ...

I use the Vanguard plan. I like it. The expense ratio for the age-based solution is .25. The age-based solution has my favorite funds: Total US, International, and US Bond. The Vanguard plan also doesn't have any annual fee.

During the past 5 years, it has never felt better to be a boglehead. The market tanked and the world was going to end. I did nothing but re-balance into equities and everything turned out great. Bond bubble talk has been going on for 2 years. Again, I have done nothing and bonds just kept going up w...

I take money off the table or put money on the table once a year. When times are good follow your plan. When times are bad follow your plan. my 2 cents.

VictoriaF wrote:I keep all my TSP fixed income in the G Fund. If I wanted 'regular' bond funds, I could find them elsewhere.

Victoria

+1

However, if all of my retirement money was within the TSP, I would probably have my fixed income be a 50/50 split between F and G for life.

Not to dissuade anyone from investing in Savings Bonds because I like them and buy them every year, but I don't see how they protect an investor from a rise in interest rates which I think is what the OP is worried about. Or maybe I'm reading too much into the "uncertainty in bond market"...

Not to dissuade anyone from investing in Savings Bonds because I like them and buy them every year, but I don't see how they protect an investor from a rise in interest rates which I think is what the OP is worried about. Or maybe I'm reading too much into the "uncertainty in bond market" ...

you don't hold the paper bonds anywhere...they are no longer available for purchase (except maybe via tax refund overages) Maybe I was reading outdated info but my understanding was that an individual was eligible to purchase $5,000 of electronic I-Bonds through the treasury website and $5,000 of p...

I see that your signature states that you are 23 and just getting started. I highly recommend that you sleep on this decision for a month before making this sort of change to your portfolio. In my opinion, bonds are still a very important part of a portfolio even in the current environment. Keep re...

Alright... after reading thread, I've mostly decided to sell my bonds and move them into stocks. However, I've purchased my bonds within 1 year. If I sell now I'll be hit with what.. 14% "short term gain tax" on my bonds correct? Is it still worth it after that? I'm guessing so. I see tha...

Age: 35

Stocks: 70%; Bonds: 30%

Total stock: 47%
Total international: 23%
Total Bond: 12%
I Bonds: 3%
G Fund: 15%

Just an observation. I was surprised at how complicated and aggressive so many members' portfolios are. Lots of slicing and dicing etc. Is anyone else surprised?

Even worse than only having 30 stocks is that the Dow is price-weighted, which in my opinion, is not as good as market-weighted. Each has its flaws and biases. Why do you prefer the flaws and biases of a cap-weighted index to those of a price-weighted index? Because, for example, if a company like ...

Even worse than only having 30 stocks is that the Dow is price-weighted, which in my opinion, is not as good as market-weighted. Each has its flaws and biases. Why do you prefer the flaws and biases of a cap-weighted index to those of a price-weighted index? Because, for example, if a company like ...

Even worse than only having 30 stocks is that the Dow is price-weighted, which in my opinion, is not as good as market-weighted.

I made no changes. My bond allocation for that last 10 years has always been pretty conservative at half G Fund and half Total bond with a few I bonds sprinkled in.

Investors that I respect (Swedroe, Bernstein, Malkiel, etc) recommend that investor's bond allocation to be low risk. This fund does not seem to be that. Personally, this is not a bond fund I would want as part of my bond allocation. Especially during times like 2007. I suppose an investor could tre...

gsk, my 8606 developed by TT looks just like yours. I tried to manually fill in lines 6-12 because it seems more accurate to do so but TT would not let me. I looked at my previous tax year 8606s done by TT and they also skipped lines 6-12. I'm thinking Emergdoc probably has the right thinking and it...

Folks may find this blog post on the subject by "Long-term returns" to be helpful.

http://www.longtermreturns.com/2013/02/ ... -fund.html

This is one of those funds that I know Gus Sauter doesn't believe in, but investors want it, so they get it. Vanguard is considering alternative investments as well. They don't believe in them, but investors what them, so Vanguard will provide them. There is no academic reason to own these funds, b...

I don't really see how this is a group think issue. There are countless studies that show over the long-term (decades) that active fund investing will lose to passive fund investing (after expenses, taxes, turn over etc.). Will there be a few active funds that do better? Yes. However, finding these ...

Livesoft once described money has being fungible. The idea of money being fungible really resonated with me and the light bulb went off. I realized that I don't need to have "buckets" for everything. I don’t need an emergency fund bucket as long as I have access to money in the event of an...

Before the article gets taken down, I'll go ahead point out one of several glaring issues. The author does not compare "after expense, after tax" returns. As we know, these 2 items would eat into the actively managed fund returns more so than the passive funds. I don't see where it said f...

Before the article gets taken down, I'll go ahead point out one of several glaring issues. The author does not compare "after expense, after tax" returns. As we know, these 2 items would eat into the actively managed fund returns more so than the passive funds.

I don't see a reason to over analyze the purchase of I Bonds. They are not going to get you rich and no matter when you purchase them it likely won't make a huge difference in your portfolio. Especially, with the low yield we get these days. Personally, I purchase I Bonds in January of each year but...

UpstateNY86 wrote:What are the con's of the target retirement fund if the AA is always accurate for the investor? Why monkey around with the 3 fund?

Because a saver might have several accounts and taxable money. This situation makes a 3-fund more tax efficient and probably easier to maintain.

I have a rule that I am only allowed to make changes to my portfolio once a year. This rule has helped me greatly. There is no way I could stay away from this forum for more than a week:)

Kevin.m, I think you might be over thinking it. A couple thoughts. 1) Consider looking at your IRA, TSP, and other investments together as one portfolio, if you are not already. This might change how frequently you need to rebalance your TSP. 2) In my opinion, if you still want to rebalance your TSP...

Another way to look at the G Fund and the F Fund is that the F Fund has greater risk so one should expect a great return over the long run. I think that based on the notion that the market prices things that way. But the G fund is not part of the market. It's a perk for government employees. I'm lo...

Another way to look at the G Fund and the F Fund is that the F Fund has greater risk so one should expect a great return over the long run. I too have debated on how to split up my bond allocation between the G Fund with total bond market type funds. I decided to put my G Fund and I bonds together b...

You already have a lot of answers on here but I'll answer anyway. [Inappropriate advice and promotion of unrelated website removed by admin LadyGeek] . I'm not trying to be mean here but I have to say that this is bad advice. No one knows how long this "bull mode" will go and when it will...

You can still fund your Roth IRA using the "back door" method for 2013.

1724.

LIke NYBoglehead said, it is the price at the end of the day. I have a TSP account.

I'm no expert and I have great respect for Bogle. However, my opinion is that if you do not invest some of your money in international markets, you are missing out on the opportunity to invest in industries and companies that the US just doesn't have. For example, the US is becoming more and more of...

It's interesting to note how the perception of cash in the portfolio has changed so markedly in the last twenty years. In the first edition of Roger Gibson's classic book, Asset Allocation , published in 1990, cash was considered a legitimate asset class with positive portfolio attributes and diver...

ef11, you might find this article by TFB to be helpful. http://thefinancebuff.com/case-against-roth-401k.html as for maxing out a 401(k) and traditional IRA, I believe that if you max out a 401(k) that the IRS usually won't let you also put pre-tax dollars in an IRA. There are several rules but I ca...

When I speak of my portfolio, it's all assets intended for retirement. College savings have their own specific timeline and are invested accordingly. Short-term needs or specific identified projects are kept in a liquid FDIC insured account or a short-term bond fund. +1 This is exactly how I have m...

Captaino, another data point to think about is that sometimes the "higher expected" returning asset gets beat by the "lower expected" returning asset. And this can happen for many years in a row. For example, the 30-year bond bull market we just had.

Gauntlet: My biggest issue is that if I have all of my bonds in my tax-deferred account, I feel like it throws off my AA because after taxes that account is likely to be smaller. The solution (if you think you know the perfect asset-allocation :wink: ) is to change your stock/bond allocation accord...

I have a hard time looking at all my accounts as truly one portfolio even though I think I understand the logic. My biggest issue is that if I have all of my bonds in my tax-deferred account, I feel like it throws off my AA because after taxes that account is likely to be smaller. I do keep an overa...

Interesting discussion. I would like to clarify something. I have seen mentioned in this thread a few times that gold is a way to hedge inflation. My understanding is that it is not. TIPs and short-term bonds are a much better inflation hedge.

I'm in for $25. Thank you.

As a TSP participant, I think that this is a bad idea. I would rather the board take a look at changing some indexes around. Maybe offer a total US stock market index and an improved international index.

xrw1, I think what the posters are telling you is that both ways make sense. There is no real correct answer. If you want to make several transactions a year and have your dividends immediately reinvested into the fund then set your cost basis to average and you will be all set. I only make one tran...

Rick, thank you for this analysis. It is the best comparison I have seen so far. I look forward to your article on the international funds.

Nisiprius, you make a heck of a lot of sense. Thank you for your great posts.

Since Vanguard plans to use FTSE Global All Cap ex US Index for Total US, I would feel better if it went with FTSE US All Cap for the Total International. I'm sure it doesn't matter too much and that CRSP is fine but the anal part of me would like it better.

Then why not gold? It, too, is a diversifier in theory and in practice, and it, too, over the last twenty years has produced good returns when stocks didn't, and vice versa. I hold both SCV and gold: 30% Small cap value 20% Emerging market 30% Long term treasuries 20% Gold, rotated with "cash&...

NYBoglehead, if I were you, I would do a "backdoor Roth" contribution this year. This way you would not have to worry about the MAGI calculation. Then next year go back to your straightforward contribution to the Roth. Just a thought.