Search found 3775 matches

Return to advanced search

Re: Is there any downside to investing in bond futures?

Fascinating topic. Seems a little too complicated for me these days, but I have been taking advantage of 5-year direct CDs as a superior alternative to 5-year treasuries (which as pointed out gives one the similar retail-investor-arbitrage benefit).

Kevin
by Kevin M
Wed Jul 23, 2014 3:25 pm
 
Forum: Investing - Theory, News & General
Topic: Is there any downside to investing in bond futures?
Replies: 60
Views: 1110

Re: Do you split your VEU (into VEA+VWO) & VEA (into VGK+VPL

Intending to buy a 'market' portfolio with country weightings being as close to weighted avg market cap as possible. So was your original post incorrect? Do you want market cap weighting or tilt to small-cap international and EM? And if you want to tilt to small, why just in international and not a...
by Kevin M
Wed Jul 23, 2014 2:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do you split your VEU (into VEA+VWO) & VEA (into VGK+VPL)?
Replies: 12
Views: 669

Re: Inheritance: Cash or Investments?

One exception I'd make for taking cash would be any high yielding CDs. I also might continue to hold any highly-rated bonds that were reasonably close to maturity, since this will eliminate losses from commissions and bid/ask spreads. As mentioned, anything in an IRA should remain in an inherited IR...
by Kevin M
Tue Jul 22, 2014 9:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inheritance: Cash or Investments?
Replies: 14
Views: 971

Re: Reduce / Eliminate Emerging Market in Retirement?

I agree about just decreasing the percentage of portfolio in risky assets. I've been retired for about seven years, and it has never occurred to me to reduce my EM exposure below its market weight in total international (my exposure actually is a bit higher, due to some tax-loss harvesting). I think...
by Kevin M
Tue Jul 22, 2014 9:06 pm
 
Forum: Investing - Theory, News & General
Topic: Reduce / Eliminate Emerging Market in Retirement?
Replies: 11
Views: 1091

Re: Do you split your VEU (into VEA+VWO) & VEA (into VGK+VPL

chasiu209 wrote:Intending to buy a 'market' portfolio with country weightings being as close to weighted avg market cap as possible.

Then why not just use VTI + VXUS? These each are intended to represent close to total market weighting within each market.

Kevin
by Kevin M
Tue Jul 22, 2014 5:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do you split your VEU (into VEA+VWO) & VEA (into VGK+VPL)?
Replies: 12
Views: 669

Re: With all these recent posts regarding tilts, should I?

I don't think your thread title captures the essence of what you're asking. It seems that what you're really asking is whether you are tilted to large-cap US stocks, and if it makes sense to adjust your portfolio so that the US stock portion more closely represents total US stocks. What you have now...
by Kevin M
Mon Jul 21, 2014 10:05 pm
 
Forum: Investing - Theory, News & General
Topic: With all these recent posts regarding tilts, should I?
Replies: 13
Views: 840

Re: years of investing and balances

Here is a link that shows you what you need to save at different ages. Hope it helps you. Don't get discouraged. It's not how you start but how you finish. Good Luck! http://www.linkedin.com/today/post/article/20140325152340-462880-want-to-retire-with-1-million-here-s-how-much-you-need-to-save-each...
by Kevin M
Mon Jul 21, 2014 4:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: years of investing and balances
Replies: 20
Views: 1570

Re: years of investing and balances

<snip> your savings grow (over and above your contributions) at an average of 2% annually above inflation, you will end up with nearly $5.5M in today's dollars. <snip> A 2% growth rate is very conservative, by the way. You almost can get that now, just from dividends from a total bond index fund. &...
by Kevin M
Sun Jul 20, 2014 10:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: years of investing and balances
Replies: 20
Views: 1570

Re: years of investing and balances

And assuming 0% real return and starting at $0, you will hit $1M in about 7 years. You can use a fancy tool, but you also can figure a lot of this out with a spreadsheet. Everything above was just multiplication and division, but if you want to get fancier, you can use functions like FV. For example...
by Kevin M
Sun Jul 20, 2014 10:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: years of investing and balances
Replies: 20
Views: 1570

Re: years of investing and balances

Say for example my gross income is 400 K and our current monthly expense is about 10K including mortgage. So If I retire by say 65 ( 26-27 years from now) and want to have atleast the same life style if not better, whats my goal retirement savings. I have set my savings goal as 37% of gross income/...
by Kevin M
Sun Jul 20, 2014 10:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: years of investing and balances
Replies: 20
Views: 1570

Re: years of investing and balances

rsbv wrote:Are there any good calculators online that tell you if you r on track

One that people here mention a lot is FIRECalc.

Kevin
by Kevin M
Sun Jul 20, 2014 10:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: years of investing and balances
Replies: 20
Views: 1570

Re: Help me get on the right track with retirement

-SPTN TOT MKT IDX ADV (FSTVX) 0.07% -SPTN INTL INDEX ADV (FSIVX) 0.17% 1. So, should I attempt to replicate a 3 fund portfolio in each account, or invest in single funds in some accounts to achieve a 3 fund portfolio across all accounts? Option 2. The two funds above are good for the stock portion....
by Kevin M
Sun Jul 20, 2014 10:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help me get on the right track with retirement
Replies: 2
Views: 529

Re: years of investing and balances

I'm a new investor and starting very late ( 38 yrs) Just curious to know what ages did y'all start investing and how many years did it take for you to get to your 1st million. Seems like its going to take me forever... I was 31 when I started my first "real" job, and I retired when I was ...
by Kevin M
Sun Jul 20, 2014 9:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: years of investing and balances
Replies: 20
Views: 1570

Re: Value Overvalued

Rebalancing tends to help with this kind of thing.

Kevin
by Kevin M
Sun Jul 20, 2014 9:19 pm
 
Forum: Investing - Theory, News & General
Topic: Value Overvalued
Replies: 23
Views: 2123

Re: how often do you look at your account

Many accounts, so the question isn't too relevant to me. I do have a spreadsheet with all of my accounts and approximate balances, but usually when I open it it's related to posting something here (like what % I have in a particular asset class). Don't pay much attention to balance or how much it's ...
by Kevin M
Sun Jul 20, 2014 9:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: how often do you look at your account
Replies: 70
Views: 3508

Re: Ultimate Buy and Hold - 8 slices vs 4

I think TrevH has not posted in these forums for a couple of years and I have not found any postings under that user name. I will say that if you do a search, there is a large thread on the TrevH portfolio and backtesting that was done a couple of years ago. Trev H doesn't post as much as in the pa...
by Kevin M
Sun Jul 20, 2014 8:03 pm
 
Forum: Investing - Theory, News & General
Topic: Ultimate Buy and Hold - 8 slices vs 4
Replies: 596
Views: 205103

Re: POLL: Do you have a dedicated REIT allocation?

TnGuy wrote:In which one of Bill's recent books does he discuss precious metals, etc? Thank you.
David

"Rational Expectations", which I think he describes as an updated version of his first book, "The Intelligent Asset Allocator".

Kevin
by Kevin M
Sun Jul 20, 2014 7:57 pm
 
Forum: Investing - Theory, News & General
Topic: POLL: Do you have a dedicated REIT allocation?
Replies: 123
Views: 6855

Re: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth,

<snip> so but the difference may not be as large with just tax-deferred and taxable accounts (i.e., no Roths). The tax adjustment for a taxable account is likely much smaller than for a tIRA/401k. Yes, that's what I was getting at (I edited my quote to say what I meant); thanks for adding the clari...
by Kevin M
Sun Jul 20, 2014 6:20 pm
 
Forum: Investing - Theory, News & General
Topic: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth, etc)
Replies: 76
Views: 3138

Re: Can't decide to keep 401k with previous employer or move

I didn't realize this earlier, but the Extended Market fund is not a TSM like I had assumed - instead it is TSM minus S&P 500 stocks. So even in the new employer account I will need to do some wiggling to simulate a TSM fund. I was going to point this out, since in your first post you only ment...
by Kevin M
Sun Jul 20, 2014 6:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Can't decide to keep 401k with previous employer or move
Replies: 28
Views: 2063

Re: Poll: Has your AA changed in the last 18 months

<snip> However, this is 100% net stock; I could have paid cash for the condo and put all my investments in stock, but instead I borrowed (on a mortgage) and lent (bonds in my retirement plan) equal dollar amounts. I'm a little surprised that you've became more aggressive, even if only slightly. Not...
by Kevin M
Sun Jul 20, 2014 5:43 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: Has your AA changed in the last 18 months
Replies: 49
Views: 2323

Re: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth,

I don't tax-adjust my portfolio, because (1) I am math challenged to a great extent, and (2) It's too much trouble, at least for me. Given most of the responses in this thread, however, perhaps I should have a more aggressive allocation, since my rollover IRA consists entirely of fixed income. If y...
by Kevin M
Sun Jul 20, 2014 5:38 pm
 
Forum: Investing - Theory, News & General
Topic: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth, etc)
Replies: 76
Views: 3138

Re: Poll: Has your AA changed in the last 18 months

No change to major asset class policy allocations, so voted no. However, I did recently move another 3% of portfolio from bond funds to a direct 5-year CD earning 2.3%. I also modified my REIT rebalancing band from -10%/+25% to -20%/+15% based in supposedly rich valuation. I also haven't been waitin...
by Kevin M
Sun Jul 20, 2014 5:28 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: Has your AA changed in the last 18 months
Replies: 49
Views: 2323

Re: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth,

Although I agree that mathematically it makes sense to tax-adjust, I'm too lazy to do it, so I voted 50/50 based on what I actually do. Similarly, I don't count part of my corporate bond (even high yield bond) allocation as equity. I just figure my portfolio is somewhat riskier than the unadjusted A...
by Kevin M
Sun Jul 20, 2014 5:02 pm
 
Forum: Investing - Theory, News & General
Topic: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth, etc)
Replies: 76
Views: 3138

Re: RMDs on Vanguard Inherited IRA

Multiple individual beneficiaries . If as of September 30 of the year following the year in which the owner dies there is more than one beneficiary, the beneficiary with the shortest life expectancy will be the designated beneficiary if both of the following apply. •All of the beneficiaries are ind...
by Kevin M
Sun Jul 20, 2014 3:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: RMDs on Vanguard Inherited IRA
Replies: 21
Views: 1069

Re: Ultimate Buy and Hold - 8 slices vs 4

Thus by holding all 4 boxes as opposed to just 2, you are hedging your bets more. The traditional econometric model assumes that returns are additively separable. That is, your portfolio returns is simply a linear function of your exposures to market, small, and value factors, plus some random nois...
by Kevin M
Sun Jul 20, 2014 3:00 pm
 
Forum: Investing - Theory, News & General
Topic: Ultimate Buy and Hold - 8 slices vs 4
Replies: 596
Views: 205103

Re: I was tempted to market time and didn't

I think playing with a "small money account" is fine for this kind of thing. You may learn something, and it won't help or hurt much. I would just be careful about letting any apparent success in the small money account convince you to try to do much market timing in your big money account...
by Kevin M
Sat Jul 19, 2014 11:07 pm
 
Forum: Investing - Theory, News & General
Topic: I was tempted to market time and didn't
Replies: 19
Views: 1794

Re: Vanguard Target retirement vs S&P500 indexing

I personally would favor the Target Retirement fund. It adds US small/mid-cap stocks (about 20% of US stock market) and 30% of stocks in international. Both of these modifications increase diversification, which Vanguard obviously thinks is a good thing. The 10% in bonds won't make much difference, ...
by Kevin M
Sat Jul 19, 2014 10:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Target retirement vs S&P500 indexing
Replies: 7
Views: 1570

Re: Need advice on a bond fund for taxable account

I think these are fine funds, and use them both. How did you arrive at the 70/30 split? Some folks recommend avoiding CA completely (Larry Swedroe, I believe), while others recommend limiting state-specific funds to no more than 1/2 of tax-exempt bond funds (Bill Bernstein). I hold somewhat more tha...
by Kevin M
Sat Jul 19, 2014 10:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need advice on a bond fund for taxable account
Replies: 9
Views: 727

Re: Move Morningstar Portfolio To Vanguard

In my experience, doing full or partial IRA transfers between custodians is pretty easy. I have done many. I can't think of any difference between Roth IRAs and traditional IRAs with respect to transfers. What problems have you heard about?

Kevin
by Kevin M
Sat Jul 19, 2014 10:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Move Morningstar Portfolio To Vanguard
Replies: 5
Views: 712

Re: RMDs on Vanguard Inherited IRA

Final questions -- 2 of them. So I found the Table of Single Life Expectancy for IRAs for beneficiaries. Good enough. Now, in year 2015 (the first year I have to take the RMD), I begin the year at age 62 and if I live will turn 63 during the year. From what I am reading it indeed seems that I would...
by Kevin M
Sat Jul 19, 2014 9:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: RMDs on Vanguard Inherited IRA
Replies: 21
Views: 1069

Re: RMDs on Vanguard Inherited IRA

I do the RMD calculation myself, but Vanguard also does it for me. I had three siblings who also were beneficiaries of my Dad's IRA, so I was not the sole beneficiary. I think Vanguard means the sole beneficiary of the (new) inherited IRA (i.e., only your name and the original owner's name appears i...
by Kevin M
Sat Jul 19, 2014 9:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: RMDs on Vanguard Inherited IRA
Replies: 21
Views: 1069

Re: POLL: Do you have a dedicated REIT allocation?

In doing a little research on REIT valuations, I found this report: www.lazardnet.com/docs/sp0/4915/Lazard_USRealEstateIndicatorsReport_201403.pdf The report reviews a number of valuation metrics. Since David Swensen explained in "Unconventional Success" that wide swings in the premium or ...
by Kevin M
Sat Jul 19, 2014 7:25 pm
 
Forum: Investing - Theory, News & General
Topic: POLL: Do you have a dedicated REIT allocation?
Replies: 123
Views: 6855

Re: If no access to DFA, Small Value worth it?

If you believe in tilting to small value, then you still get a tilt with the Vanguard fund. Due to the smaller loading factors, you have to use more of it to get the same overall exposure to the factors. I've included it in my portfolio since 2005 (really ramped it up from 2007-2009). As it turns ou...
by Kevin M
Fri Jul 18, 2014 8:24 pm
 
Forum: Investing - Theory, News & General
Topic: If no access to DFA, Small Value worth it?
Replies: 20
Views: 2313

Re: POLL: Do you have a dedicated REIT allocation?

Thanks Kevin! You're absolutely right. The diversification benefits of an asset can be computed if we have both the correlations and the volatility. That's why APPL isn't a good diversifier for the total market, even though it has low correlations. Too much volatility. If you get the right mix of l...
by Kevin M
Fri Jul 18, 2014 7:47 pm
 
Forum: Investing - Theory, News & General
Topic: POLL: Do you have a dedicated REIT allocation?
Replies: 123
Views: 6855

Re: POLL: Do you have a dedicated REIT allocation?

Unfortunately this is just a graphical representation of the "everything but the market weighting is a free lunch" strawman. Since nothing is perfectly correlated with the market, every stock or sector will show a similar result. But you can't overweight everything. Again, this is not mea...
by Kevin M
Fri Jul 18, 2014 7:13 pm
 
Forum: Investing - Theory, News & General
Topic: POLL: Do you have a dedicated REIT allocation?
Replies: 123
Views: 6855

Re: Portfolio Help

you found that recent returns for the "Stable Assets Fund" were "1Q'14= .61%, 2013=2.91% . Returns are net of all fees." Good information. To give you an idea of what that fund may be, check http://www.bogleheads.org/wiki/Stable_Value_Fund . Around 2.91% is not bad. That rate do...
by Kevin M
Fri Jul 18, 2014 5:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help
Replies: 15
Views: 622

Re: Portfolio Help

60% - Company stock- MHFI I see no reason to invest more than 1% (if at all) in your company stock. Diversify! really? 1% that little? Yes I know that 60% is way too much lol I think many would say the upper limit for any individual stock, including your company stock, would be 5% of your portfolio...
by Kevin M
Fri Jul 18, 2014 5:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help
Replies: 15
Views: 622

Re: Portfolio Help

*Other options: money market fund - expense ratio = .18% Retirement Assets Fund 1 (US stocks=63.3%, foreign stocks=15% and US Bonds = 21.7%) expense ratio =.57% Retirement Assets Fund 3 (US stocks=28.8%, Foreign stocks=9.8% and US Bonds= 61.4%) expense ratio = .37% S&P 500 - expense ratio = .10...
by Kevin M
Fri Jul 18, 2014 5:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help
Replies: 15
Views: 622

Re: Portfolio Help

Thanks Kevin! I apologize in advance for my ignorance regarding the percentage (total 401k balance is approx $275k). I really don't have any desired allocation - I just want to get on the right track for a comfortable retirement. I'd hate to be the old lady still working just to make ends meet :? H...
by Kevin M
Fri Jul 18, 2014 5:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help
Replies: 15
Views: 622

Re: Just retired...any reason to move 401K to IRA?

what is the backdoor Roth problem with a rollover IRA? Julieta sent me a PM about this, and I answered. Here is my answer (feel free to correct any errors): This is mainly an issue for those wanting to do backdoor Roth contributions, but in general is true if you have a basis in your traditional IR...
by Kevin M
Fri Jul 18, 2014 4:46 pm
 
Forum: Investing - Theory, News & General
Topic: Just retired...any reason to move 401K to IRA?
Replies: 50
Views: 4822

Re: POLL: Do you have a dedicated REIT allocation?

Correlations by themselves don't tell us much about diversification. It's true that we need to know more than just correlations, but correlations are quite important. I think you know this already, but so that others might not be mislead that correlation is not important ... If we're talking about ...
by Kevin M
Fri Jul 18, 2014 4:27 pm
 
Forum: Investing - Theory, News & General
Topic: POLL: Do you have a dedicated REIT allocation?
Replies: 123
Views: 6855

Re: To Tilt or Not to Tilt - Rick Ferri's Latest

Yes, you might want to look at your portfolio now and then to see if any rebalancing is required. And you might want to revisit your investment policy now and then to see if any policy changes are warranted. If you don't remember why you bought something, then indeed, perhaps a policy update is in o...
by Kevin M
Thu Jul 17, 2014 10:28 pm
 
Forum: Investing - Theory, News & General
Topic: To Tilt or Not to Tilt - Rick Ferri's Latest
Replies: 72
Views: 6451

Re: POLL: Do you have a dedicated REIT allocation?

I'd love if someone can explain the logic why someone already holding REITs should continue to hold them, but a new purchase would be ill-advised. This is an excellent question, and it has crossed my mind as well. I think the completely rational answer is that if you wouldn't buy something then you...
by Kevin M
Thu Jul 17, 2014 7:19 pm
 
Forum: Investing - Theory, News & General
Topic: POLL: Do you have a dedicated REIT allocation?
Replies: 123
Views: 6855

Re: POLL: Do you have a dedicated REIT allocation?

Thought it would be interesting to look at historical correlations between total US market (VTSMX), total international (VGTSX) and US REIT (VGSIX) over different time periods. What the correlation matrices below show is that over 18-year, 10-year, and 5-year periods, the correlations between REIT a...
by Kevin M
Thu Jul 17, 2014 4:46 pm
 
Forum: Investing - Theory, News & General
Topic: POLL: Do you have a dedicated REIT allocation?
Replies: 123
Views: 6855

Re: Portfolio Help

Welcome to the forum! It's difficult to make suggestions without having an understanding of the percentage of total investment assets in each account/fund. Also would be good to know if you have any idea about your desired asset allocation, but if not, please say so. The best way to provide the info...
by Kevin M
Thu Jul 17, 2014 4:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help
Replies: 15
Views: 622

Re: Risky asset allocation?

Yes, your portfolio looks pretty risky, but your bigger problem is that it's probably way too small for you to be able to retire comfortably, unless you have some really good pensions. I recommend that you invest the $5 to read Bill Bernstein's recent e-book, "The Ages of the Investor" to ...
by Kevin M
Thu Jul 17, 2014 3:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: Risky asset allocation?
Replies: 12
Views: 450

Re: POLL: Do you have a dedicated REIT allocation?

Yes, I have had a fixed dollar allocation to REITs since 2009 or 2010. I increased the dollar amount about 10X betwen 2005 and 2009/2010 (I'd have to look more closely to see exact date). Currently it is about 14% of my US equities. Since late 2010 I've been using a rebalancing band of about +25%/-1...
by Kevin M
Wed Jul 16, 2014 4:41 pm
 
Forum: Investing - Theory, News & General
Topic: POLL: Do you have a dedicated REIT allocation?
Replies: 123
Views: 6855

Re: "The Incredibly Shrinking Financial System" by Jack Bogl

To get to the WSJ article, just Google "The Incredibly Shrinking Financial System". I clicked on the first hit.

Kevin
by Kevin M
Wed Jul 16, 2014 3:50 pm
 
Forum: Investing - Theory, News & General
Topic: "The Incredibly Shrinking Financial System" by Jack Bogle
Replies: 10
Views: 1599

Re: Cash allocation in a portfolio

If you include CDs, then my cash allocation is 75% of my fixed income, which is 70% of my portfolio, so my cash is more than 50% of my portfolio. And yes, I might use this for rebalancing into stocks, but if my bond fund values were up when stocks were down, I might sell bonds to buy stocks instead....
by Kevin M
Tue Jul 15, 2014 9:55 pm
 
Forum: Investing - Theory, News & General
Topic: Cash allocation in a portfolio
Replies: 42
Views: 3584

Re: REITs vs Rental Properties?

Was wondering for those who own rentals, have you found it to be a better investment than simply putting "real estate" investment money into a REIT. I have a 3 fund portfolio without about 5% REIT allocation right now. Both have worked out well for me in the past, but that doesn't mean th...
by Kevin M
Tue Jul 15, 2014 9:14 pm
 
Forum: Investing - Theory, News & General
Topic: REITs vs Rental Properties?
Replies: 7
Views: 1267
Next

Return to advanced search