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Re: I and EE Bonds - What will the new rate be?

I'm not sure why anyone would buy an I bond with a 0 fixed rate and 0 inflation rate. To get the buy out of the way for the year while counting on higher variable rates later. It doesn't really matter if 10K is sitting in savings or I Bonds for 6 months if savings is yielding a few basis points. I ...
by Noobvestor
Fri Apr 17, 2015 2:19 am
 
Forum: Investing - Theory, News & General
Topic: I and EE Bonds - What will the new rate be?
Replies: 18
Views: 2166

Re: Rick Ferri looking to internationalize his portfolio

YTD:

Vanguard Total Stock: 3.62%
Vanguard Total International: 9.53%
Vanguard Emerging Markets: 10.99%

What if the dip never comes?
by Noobvestor
Thu Apr 16, 2015 10:22 pm
 
Forum: Investing - Theory, News & General
Topic: Rick Ferri looking to internationalize his portfolio
Replies: 331
Views: 43848

Re: Living off investments / Early retirement

I would suggest having at least 25% in stocks at all times - right now it sounds like you may not. Realistically, you would be pretty safe from downturns with a 40/60 portfolio of stocks/bonds too. I would do something like this: 20% Total Stock fund, 20% Total International Stock fund, 30% municipa...
by Noobvestor
Mon Apr 13, 2015 2:43 am
 
Forum: Investing - Help with Personal Investments
Topic: Living off investments / Early retirement
Replies: 17
Views: 3816

Re: Quick question: splitting cash transfer to 2 funds at Fi

Ah, OK, I think I get it - it's today's dollars, not at close. Makes more sense that way. Too late today indeed, but good to know for the next time this happens :)
by Noobvestor
Thu Apr 09, 2015 3:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Quick question: splitting cash transfer to 2 funds at Fido
Replies: 4
Views: 178

Re: Quick question: splitting cash transfer to 2 funds at Fi

Ah, OK, I think I get it - it's today's dollars, not at close. Makes more sense that way. Too late today indeed, but good to know for the next time this happens :)
by Noobvestor
Thu Apr 09, 2015 3:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: Quick question: splitting cash transfer to 2 funds at Fido
Replies: 4
Views: 178

Quick question: splitting cash transfer to 2 funds at Fido

Seems like an easy one, but my searches haven't turned up anything obvious. I contributed to a Roth IRA and parked it for a day in cash at Fidelity via their online interface. Now I want to move $X and $Y to fund A and fund B, respectively. I started by moving $X to fund A, but realized with EOD pri...
by Noobvestor
Thu Apr 09, 2015 3:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Quick question: splitting cash transfer to 2 funds at Fido
Replies: 4
Views: 178

Re: Switching 40% of my portfolio to bonds: just can't do it

Hi, Just found Bogleheads! What a find! Looking down the 10-point Bogleheads philosophy I can tick off every one against my portfolio as done. Except for one ... I own no bonds. Having read the asset allocation theory, I can accept it, but I just can't bring myself to do it. I take the point that w...
by Noobvestor
Thu Apr 09, 2015 2:44 am
 
Forum: Investing - Theory, News & General
Topic: Switching 40% of my portfolio to bonds: just can't do it.
Replies: 52
Views: 6988

Re: 2 commas and mortgage-free

I just made my last mortgage payment 8 days ago. And last year we hit the 2-column club (invested assets, excluding house equity). I had a long-term goal to reach these milestones by the time I turned 50, and made it with about 6 months to spare. Feeling much, much better about financial security. ...
by Noobvestor
Wed Apr 08, 2015 4:06 am
 
Forum: Personal Finance (Not Investing)
Topic: 2 commas and mortgage-free
Replies: 33
Views: 4476

Re: Opinions on Tilting/Slice and Dice

Re: high-yield - open for debate for sure - I prefer to take my risk on the stock side, but if you do add high-yield I'd suggest making sure you still hold some safe bonds (ideally TIPS or Treasuries) and consider upping your bond allocation a bit. I did my research on this a while back, but basical...
by Noobvestor
Sat Apr 04, 2015 3:48 am
 
Forum: Investing - Help with Personal Investments
Topic: Opinions on Tilting/Slice and Dice
Replies: 27
Views: 1842

Re: Opinions on Tilting/Slice and Dice

Hi Snuffy and welcome to the forum. Only you can decide what's right for you, but you might want to read some threads on tilting on the forum and see the arguments for and against- Robert T has some good thoughts in this thread under numbers 1 and 2: http://www.bogleheads.org/forum/viewtopic.php?t=7...
by Noobvestor
Fri Apr 03, 2015 7:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: Opinions on Tilting/Slice and Dice
Replies: 27
Views: 1842

Re: To convert to Roth IRA from 401(k)

Taxes and brackets change over time. A lot. The idea that anyone can even guess that rates will be the same down the line seems suspect to me. http://www.efile.com/efile-images/charts/historic-lowest-and-highest-tax-rates.png If anything, we're close to history lows or lower than average anyway. Per...
by Noobvestor
Fri Apr 03, 2015 5:25 am
 
Forum: Personal Finance (Not Investing)
Topic: To convert to Roth IRA from 401(k)
Replies: 12
Views: 1169

Re: What would you do now if you were all cash?

Figure out an asset allocation that is sufficiently conservative and implement it. Every day you're in cash is a day you're not in that target allocation. If suddenly my allocation were liquidated to cash tomorrow, I'd turn around and reinvest it. Perhaps for you, it's something like: 25% stocks, 25...
by Noobvestor
Tue Mar 31, 2015 3:09 am
 
Forum: Investing - Help with Personal Investments
Topic: What would you do now if you were all cash?
Replies: 28
Views: 3383

Re: Michael Spence: Are Equities Overvalued?

How do we even know what the appropriate valuation should be? It's all supply-demand in the equities market. Demand is high right now (the average investor is holding lots of equities) and for all we know it could remain constant, or increase further. Check out this chart: http://www.philosophicale...
by Noobvestor
Sun Mar 29, 2015 5:11 am
 
Forum: Investing - Theory, News & General
Topic: Michael Spence: Are Equities Overvalued?
Replies: 13
Views: 1627

Re: Risk Questionnaires: How they work?

1. No. Was not-of-investing-age in '08. 2. As a percent: 25% of invested assets, retirement and taxable accounts. 3. 85/10/5 stock/bonds/REIT fund. #3 contradicts #2. If you can only stomach 25% losses, you should be no more than 50% in stocks and REITs, because they could drop 50%+ in a downturn. ...
by Noobvestor
Sun Mar 29, 2015 4:32 am
 
Forum: Investing - Theory, News & General
Topic: Risk Questionnaires: How they work?
Replies: 27
Views: 1682

Re: "TIPS. Love them or leave them?"

And the very risk that they purport to defend against--an unexpected uptick in inflation--is nowhere on the horizon. Fancy that! You'd think the least an unexpected threat could do would be to let us have a bit of warning. You have to cut her a bit of a break. She had a 200-word article that an edi...
by Noobvestor
Fri Mar 27, 2015 4:20 am
 
Forum: Investing - Theory, News & General
Topic: "TIPS. Love them or leave them?"
Replies: 16
Views: 2002

Re: How important is an international allocation?

So true. I thought I tried to make that point earlier about it not mattering too much what one does if one is extremely wealthy. It is important to remember the biases , however innocuous they may seem. And the low equity allocation of older investors does give them room to be a bit more cavalier a...
by Noobvestor
Thu Mar 26, 2015 12:55 am
 
Forum: Investing - Theory, News & General
Topic: How important is an international allocation?
Replies: 66
Views: 4659

Re: How important is an international allocation?

It's graphs like that that keep me from making a decision. All the [past] data (let's not forget the fact that it is in the past) shows international essentially bringing down a portfolio. But diversification should indicate that owning all the total world stock market is better than only owning th...
by Noobvestor
Wed Mar 25, 2015 4:02 am
 
Forum: Investing - Theory, News & General
Topic: How important is an international allocation?
Replies: 66
Views: 4659

Re: How important is an international allocation?

...When one asset class zigs a bit while the other one zags a bit, you get a bit smoother ride in your portfolio... Vanguard Total World Stock Index Fund, VTWSX, is globally cap-weighted and thus about 50/50 US/International and ought to show that "smoother ride." Since inception, has the...
by Noobvestor
Wed Mar 25, 2015 3:59 am
 
Forum: Investing - Theory, News & General
Topic: How important is an international allocation?
Replies: 66
Views: 4659

Re: How important is an international allocation?

A position I am [obviously?] tempted to take myself. I feel like an international allocation is essentially a bet against the US economy. I am hard pressed to find data to strongly support betting against the US economy over the long term. I think you're looking at this the wrong way. If you index ...
by Noobvestor
Wed Mar 25, 2015 3:51 am
 
Forum: Investing - Theory, News & General
Topic: How important is an international allocation?
Replies: 66
Views: 4659

Re: How important is an international allocation?

Just out of curiosity, would you happen to have the source for that quote? I would love to read the context. Sure thing - he said it at Bogleheads 11 (Reunion): http://www.bogleheads.org/forum/viewtopic.php?f=10&t=104781&newpost=1521456 You'll notice some of my other notes, like: ) Predicti...
by Noobvestor
Wed Mar 25, 2015 3:48 am
 
Forum: Investing - Theory, News & General
Topic: How important is an international allocation?
Replies: 66
Views: 4659

Re: How important is an international allocation?

Like so many things in investing, the performance of international stocks relative to U.S. stocks has periods of outperformance and underperformance that last for periods of, let's say, a decade or so. During the "lost decade" of 2000-2009 a lot of people liked to point out that it wasn't...
by Noobvestor
Sun Mar 22, 2015 2:23 pm
 
Forum: Investing - Theory, News & General
Topic: How important is an international allocation?
Replies: 66
Views: 4659

Re: How important is an international allocation?

I am entirely contrarian on this topic. I have 0% international, my entire equity holding is in the U.S. total stock market. Why? Because all the advice about moving to international is based as far as I can tell, 100%, on backtesting . I wouldn't call that contratian at all. You are sticking with ...
by Noobvestor
Sun Mar 22, 2015 2:14 pm
 
Forum: Investing - Theory, News & General
Topic: How important is an international allocation?
Replies: 66
Views: 4659

Re: How important is an international allocation?

RevYoung wrote: " What I'm trying to figure out is whether or not to bother with an international allocation for my emergency fund." You are going to have to go a long way to find a more thoughtful response (and framework for analysis) than that provided by Nisiprius. Increasing exposure ...
by Noobvestor
Sun Mar 22, 2015 2:13 pm
 
Forum: Investing - Theory, News & General
Topic: How important is an international allocation?
Replies: 66
Views: 4659

Re: How important is an international allocation?

Check this out: http://www.bogleheads.org/forum/viewtopic.php?f=10&t=104781&newpost=1521456 My personal favorite Jack Bogle quote out of the mix: "If there's one place I don't want people to take my advice, it's international. I want you to think it through for yourself." I am not ...
by Noobvestor
Sun Mar 22, 2015 3:52 am
 
Forum: Investing - Theory, News & General
Topic: How important is an international allocation?
Replies: 66
Views: 4659

Re: Three fund portfolio in tax-advantaged account

So, in a three fund portfolio in a tax-advantaged account, which fund or combination of funds would you put in your Roth (versus traditional) IRA? Thank you. The general rule of thumb is to put highest earning potential in Roth (emerging markets and small caps for a larger tilted portfolio, or dome...
by Noobvestor
Wed Mar 18, 2015 4:10 am
 
Forum: Investing - Help with Personal Investments
Topic: Three fund portfolio in tax-advantaged account
Replies: 2
Views: 366

Re: Bonds in Taxable when you expect tax bracket to change

First, bond fund navs don't change that much over time since most of the gains ultimately come from payouts, so generally if you want to switch bond funds in taxable it's not a huge tax hit: http://quotes.morningstar.com/chart/fund/chart.action?t=VBMFX&region=usa&culture=en-US&dataParams...
by Noobvestor
Wed Mar 18, 2015 3:34 am
 
Forum: Investing - Help with Personal Investments
Topic: Bonds in Taxable when you expect tax bracket to change
Replies: 1
Views: 289

Re: Definition of financial independence?

ShiftF5 wrote:I like William Bernstein's reference (paraphrased) --

Expenses - Passive Income = RLE (Residual Living Expenses)

25 x RLE (Age 60)
20 x RLE (Age 65)
17 x RLE (Age 70)

= Financial Independence

ZERO DEBT w/ a Paid Off Home & Car Set the Stage for Low Expenses.


But what if I'm only 35?!
by Noobvestor
Tue Mar 17, 2015 12:18 am
 
Forum: Personal Finance (Not Investing)
Topic: Definition of financial independence?
Replies: 52
Views: 4943

Re: Definition of financial independence?

That seems like a much more reasonable definition than the wishy-washy versions I see being peddled by personal finance bloggers.
by Noobvestor
Mon Mar 16, 2015 5:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: Definition of financial independence?
Replies: 52
Views: 4943

Re: International is disappointing

Here's a new wrinkle to this thread. VITPX in our 401K has a really low ER of .02%. VANG TOT INTL STK IS (VTSNX) 04/29/1996 Stock Investments Foreign has an ER of 0.12%, or 6x as much. Just a mathematical quibble. The 6x ratio you cite isn't really an important or significant number and it's distra...
by Noobvestor
Mon Mar 16, 2015 4:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: International is disappointing
Replies: 84
Views: 7318

Re: Starting a New Business with a Partner - Setup Questions

Stake -- Need more information about the business (product, service, etc.), assets, time commitments, capital needs, value/contributions of each participant, etc. to determine what may be appropriate. Good questions one and all. 1) product/service is complicated because we may ultimately pursue mul...
by Noobvestor
Mon Mar 16, 2015 4:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Starting a New Business with a Partner - Setup Questions
Replies: 11
Views: 735

Re: How much international is too much?

Just to play Devil's Advocate: 1/3 exposure to just one country is a pretty big bet on that country, all else aside. Imagine if we were talking about an index fund that held 1/3 just one stock. I don't think it's entirely irrational to suggest someone could look at that and still want to tilt furth...
by Noobvestor
Mon Mar 16, 2015 3:36 pm
 
Forum: Investing - Theory, News & General
Topic: How much international is too much?
Replies: 113
Views: 9419

Re: Starting a New Business with a Partner - Setup Questions

Great suggestions and resources so far - thanks! @Harbormaster: Interesting thoughts re:join venture vs. partnership. Some of the issues raised by Dave are definitely concerns I want to address in advance, like variable inputs depending on time/passion of contributing parties, as well as separation ...
by Noobvestor
Mon Mar 16, 2015 3:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Starting a New Business with a Partner - Setup Questions
Replies: 11
Views: 735

Re: Should tilters recommend tilting to beginners?

I see a lot of Bogleheads say 20% in international is good enough - some even say 0% is fine. Dramatic tilts toward US stocks. Personally I don't recommend tilting that severely, particularly for beginners.
by Noobvestor
Mon Mar 16, 2015 5:36 am
 
Forum: Investing - Help with Personal Investments
Topic: Should tilters recommend tilting to beginners?
Replies: 49
Views: 2877

Starting a New Business with a Partner - Setup Questions

Context: I have run a series of (small) businesses for close to a decade now. Each has (in general) had its own pass-through LLC and I have had various contractors do various work over the years as needed. One of those contractors has been particularly vital but historically has wanted to be paid h...
by Noobvestor
Sun Mar 15, 2015 9:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Starting a New Business with a Partner - Setup Questions
Replies: 11
Views: 735

Re: How much international is too much?

How much international is too much? More than you personally are comfortable with but in no case to exceed international cap weight in global indexes. Have to strongly agree with GW here. Once your international allocation reaches the cap-weights in the global stock index (about 50% U.S./50% Intern...
by Noobvestor
Sun Mar 15, 2015 9:22 pm
 
Forum: Investing - Theory, News & General
Topic: How much international is too much?
Replies: 113
Views: 9419

Re: How much international is too much?

A few ways to look at this. 1) 50/50 is neutral, so as with any tilt you have to decide your own comfort level with tracking error relative to that point. Personally I could imagine a world in which I would tilt up to 75% international, but the valuation situation would have to be much more extreme...
by Noobvestor
Sun Mar 15, 2015 5:33 am
 
Forum: Investing - Theory, News & General
Topic: How much international is too much?
Replies: 113
Views: 9419

Re: How much international is too much?

I did not read the other replies yet, but according to John Bogle international is not necessary so if you feel the need to do it, no more than 20%. He has never held it and for the last 20 years neither have I. Warren Buffett also agrees on this. I think I'm in good company. In other words, don't ...
by Noobvestor
Sun Mar 15, 2015 5:30 am
 
Forum: Investing - Theory, News & General
Topic: How much international is too much?
Replies: 113
Views: 9419

Re: POLL: Do you use your HSA funds to pay for medical expen

It increases our Roth IRA space by more than 50% per year. Not going to waste that on medical expenses if I don't have to. I'm confused - does an HSA have both the best properties of a tax-deferred and a post-tax account? I.e. You don't pay taxes on the money you put in and you don't pay taxes when...
by Noobvestor
Sat Mar 14, 2015 5:12 am
 
Forum: Personal Finance (Not Investing)
Topic: POLL: Do you use your HSA funds to pay for medical expenses?
Replies: 84
Views: 5993

Re: How much international is too much?

A few ways to look at this. 1) 50/50 is neutral, so as with any tilt you have to decide your own comfort level with tracking error relative to that point. Personally I could imagine a world in which I would tilt up to 75% international, but the valuation situation would have to be much more extreme ...
by Noobvestor
Sat Mar 14, 2015 3:18 am
 
Forum: Investing - Theory, News & General
Topic: How much international is too much?
Replies: 113
Views: 9419

Re: Stock Market going south what's next?

allna wrote:I'm mostly a lurker/newbie around here, but it seems silly to pretend that there's not something happening in the markets when there obviously is.


I'm not seeing it ... when I chart it out, all I see is tiny blips in the grand scheme of things.
by Noobvestor
Thu Mar 12, 2015 4:30 am
 
Forum: Personal Finance (Not Investing)
Topic: Stock Market going south what's next?
Replies: 31
Views: 4104

Re: Time to buy up EUR?

Why do you think the pendulum will swing back anytime soon? What if it never does?
by Noobvestor
Thu Mar 12, 2015 4:29 am
 
Forum: Investing - Help with Personal Investments
Topic: Time to buy up EUR?
Replies: 30
Views: 2464

Re: Using EE and/or I Bonds Instead of Bond Funds

I have been maxing out on i-bonds for several years now to move my emergency funds into that space from the miserable money market accounts. For some unknown reason, I ignored EE bonds until this year, when I came to the realization that doubling value in 20 years yields 3.5%.... which is much high...
by Noobvestor
Wed Mar 11, 2015 12:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Using EE and/or I Bonds Instead of Bond Funds
Replies: 50
Views: 5079

Re: Convince me to buy international funds

http://i.imgur.com/pFWhA0q.jpg Healthcare sector has beaten the US total market for the last 20 years, too - and by a much larger margin than US stocks beat international stocks. Should you avoid other US sectors and assume the same will be true going forward, therefore just investing in healthcare...
by Noobvestor
Sun Mar 08, 2015 5:02 am
 
Forum: Investing - Help with Personal Investments
Topic: Convince me to buy international funds
Replies: 34
Views: 2647

Re: Mr. Money Mustache: Hero or Foolish?

Dave's "thing" is getting out of debt. MMM's "thing" is spend less, save more, realize you can retire earlier with less money. Then perhaps both of them should stick to their "thing" and stop talking nonsense when it comes to investing for retirement based on bad data,...
by Noobvestor
Sun Mar 08, 2015 4:12 am
 
Forum: Investing - Theory, News & General
Topic: Mr. Money Mustache: Hero or Foolish?
Replies: 452
Views: 72999

Re: International increase in Target Retirement & LifeStrate

@Johno: I agree that the issue becomes tricky when it comes to foreign bonds - it is easy for me to say that in the current environment foreign bonds can just be left out, but of course if at some point they are yielding significantly more than US bonds that argument could be contested. That said, I...
by Noobvestor
Mon Mar 02, 2015 8:54 pm
 
Forum: Investing - Theory, News & General
Topic: International increase in Target Retirement & LifeStrategy
Replies: 233
Views: 20423

Re: Retirement planning - Too soon for TIPS?

The one caveat about I bonds is that interest payment will stop and tax come due after thirty years. This may not be a big deal but for some investors could be awkward if the timing falls in years of highest earnings before retirement. I bond tax can be paid as you go, but one of the appeals of I b...
by Noobvestor
Sun Mar 01, 2015 2:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Retirement planning - Too soon for TIPS?
Replies: 25
Views: 2445

Re: Dividends and Market Slides

I came across this 40 point dividend info sheet on Dividend.com: http://www.dividend.com/dividend-education/40-things-every-dividend-investor-should-know/ Item #35 has a chart showing volatility of dividend paying S&P stocks vs. non-dividend paying S&P stocks (1972-2013), followed by this c...
by Noobvestor
Sun Mar 01, 2015 1:59 pm
 
Forum: Investing - Theory, News & General
Topic: Dividends and Market Slides
Replies: 55
Views: 3614

Re: Dividends and Market Slides

So growth stocks and value stocks behave exactly the same in down markets? Interesting. And I am not asking about living off dividends. Perhaps my questions weren't clear. I am asking about the value of dividends to overall returns, especially in down markets, and the stock-price implications of di...
by Noobvestor
Sun Mar 01, 2015 3:28 am
 
Forum: Investing - Theory, News & General
Topic: Dividends and Market Slides
Replies: 55
Views: 3614

Re: Retirement planning - Too soon for TIPS?

Lots of great points about about benefits of I Bonds. I'll just add a reminder that Vanguard's TIPS funds has a negative real yield right now, so aside from less flexibility about selling and taxation down the line (and the interest rate risk) they also don't have any higher returns. My advice remai...
by Noobvestor
Sun Mar 01, 2015 3:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Retirement planning - Too soon for TIPS?
Replies: 25
Views: 2445

Re: What is the BH consensus on international bonds?

Total International Bond has a current yield of less than 1% and a duration of over 7 years. I can see no good reason to hold it over CDs or other bonds. Surprised there is even discussion around this. I know I'm normally the international advocate, but in this case ... I just don't see the point. I...
by Noobvestor
Sun Mar 01, 2015 1:42 am
 
Forum: Investing - Theory, News & General
Topic: What is the BH consensus on international bonds?
Replies: 54
Views: 4210
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