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by Taylor Larimore
Sun May 24, 2015 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: Do we need long-term care insurance?
Replies: 4
Views: 256

Questions

My wife (53) and I (54) have been looking into long-term care insurance options. Thought we would ask fellow Bogleheads for some advice. Here's our situation: We both took our state pensions last year. Pays a little over 60K/year no cola. If my wife dies, my pension would be 36K/yr. If I die, her p...
by Taylor Larimore
Sun May 24, 2015 8:47 pm
Forum: Investing - Theory, News & General
Topic: Stemikger "Volatility is far from synonymous with risk."
Replies: 33
Views: 1504

"Volatility is far from synonymous with risk."

Thanks Taylor. I would love to take the credit for this fantastic definition of risk and volatility, but this was taken from Warren Buffett's 2014 annual letter to his shareholders. When another poster quoted this, they failed to mention it, so it looked liked I wrote it. I'm flattered you thought ...
by Taylor Larimore
Sun May 24, 2015 8:26 pm
Forum: Investing - Theory, News & General
Topic: "Does Your Fund Manager Consistently Beat the Stock Market?"
Replies: 9
Views: 996

Capital-gain tax when exchanging taxable funds

Bogleheads: A VERY important consideration which is seldom mentioned, is the capital-gain tax that must usually be paid when a profitable fund in a taxable account is exchanged for a "better" fund. Funds in taxable accounts should be tax-efficient, preferably indexed, and suitable to be he...
by Taylor Larimore
Sun May 24, 2015 3:03 pm
Forum: Investing - Theory, News & General
Topic: Stemikger "Volatility is far from synonymous with risk."
Replies: 33
Views: 1504

Re: Definition of "Financial Risk"

Bogleheads: This is my favorite definition of Financial Risk : " The probability of not meeting our financial goal(s). " Best wishes. Taylor Is that also your favorite definition of Financial Volatility ? Ron Ron: Financial Volatility is a common definition of Financial Risk , however it ...
by Taylor Larimore
Sun May 24, 2015 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: The end of the nest egg
Replies: 28
Views: 5863

Safe Withdrawal Rates? Complexity vs. Simplicity.

Bogleheads: This is a post I made a few years ago on the subject: One of the great mysteries to me are the Great Debates over "Safe Withdrawal Rates (SWR) ." I put Safe Withdrawal Rates into Google and it came up with more than 16,000 hits. One wonders how people managed to retire without ...
by Taylor Larimore
Sun May 24, 2015 1:40 pm
Forum: Investing - Theory, News & General
Topic: Stemikger "Volatility is far from synonymous with risk."
Replies: 33
Views: 1504

Definition of "Financial Risk"

Bogleheads:

This is my favorite definition of Financial Risk:

"The probability of not meeting our financial goal(s)."

Best wishes.
Taylor
by Taylor Larimore
Sun May 24, 2015 11:04 am
Forum: Investing - Theory, News & General
Topic: Stemikger "Volatility is far from synonymous with risk."
Replies: 33
Views: 1504

Stemikger "Volatility is far from synonymous with risk."

Volatility is far from synonymous with risk.

Stemikger (and others):

I would appreciate your explanation which will be educational for us all.

Thank you and best wishes.
Taylor
by Taylor Larimore
Sun May 24, 2015 9:09 am
Forum: Investing - Theory, News & General
Topic: The Three Fund Portfolio
Replies: 1102
Views: 508314

International Investing

Kevin: Thank you for your kind remarks. A good argument FOR international investing is this white paper by Vanguard: Global equities: Balancing home bias and diversification The best argument I have seen AGAINST international investing is Chapter 8, " Global Investing" in " Common Sen...
by Taylor Larimore
Sat May 23, 2015 3:49 pm
Forum: Investing - Theory, News & General
Topic: Not your father's Total Bond Market Fund anymore
Replies: 60
Views: 6429

Re: Not your father's Total Bond Market Fund anymore

Taylor -- aren't these quotes mostly about the stock market? Yes, but many apply to the total bond market as well. Frankly, on this particular subject I was expecting an "when experts disagree, it probably doesn't matter". I like your quotation. In my opinion, ANY low-cost, good-quality, ...
by Taylor Larimore
Sat May 23, 2015 3:30 pm
Forum: Investing - Theory, News & General
Topic: Different funds
Replies: 10
Views: 626

One company or more ?

If I choose a 4 fund portfolio, is it better to choose all 4 funds from the same company (like all Vanguard or all Schwab) or does it not matter? Let's also say commission is not a factor. sens: There are many advantages in being with just one good company like Vanguard: 1. You know the company hol...
by Taylor Larimore
Sat May 23, 2015 2:58 pm
Forum: Investing - Theory, News & General
Topic: Advice from John Bogle and Warren Buffett
Replies: 35
Views: 2213

Re: Advice from John Bogle

Bolgleheads:

When experts disagree it is often because it makes no foreseeable difference.

Jack Bogle wrote:
"When there are multiple solutions to a problem, choose the simplest."

Best wishes.
Taylor
by Taylor Larimore
Sat May 23, 2015 2:35 pm
Forum: Investing - Theory, News & General
Topic: Not your father's Total Bond Market Fund anymore
Replies: 60
Views: 6429

Re: Not your father's Total Bond Market Fund anymore

Why obsess over representing the market anyway? Ogd: These experts answer your question: Christine Benz, Morningstar Director of Personal Finance : "The no-brainer holdings if you have taxable accounts are broad-market index funds." Bill Bernstein, financial author and advisor: "If y...
by Taylor Larimore
Fri May 22, 2015 9:35 pm
Forum: Investing - Help with Personal Investments
Topic: Am I crazy to have this asset allocation?
Replies: 21
Views: 2921

Complexity vs. Simplicity?

I've put the other 1/2 of my portfolio into a more typical 60% equity/40% bond portfolio, Turtlesaliva: I have little doubt that your simple "60% equity/40% bond portfolio" will outperform the more exotic other 1/2 of your portfolio over the long-term. " Simplicity is the master key ...
by Taylor Larimore
Fri May 22, 2015 12:34 pm
Forum: Investing - Theory, News & General
Topic: The Three Fund Portfolio
Replies: 1102
Views: 508314

Wrong Forum

Question: Do I really need to have International equities in my portfolio ? I am in the process of re-balancing and did some research on the International category using Morningstar data. What I found was that over the past 10-15 years the correlation between international equities and the US stock...
by Taylor Larimore
Fri May 22, 2015 12:19 pm
Forum: Investing - Theory, News & General
Topic: Our Mistakes Benefit Future Generations
Replies: 18
Views: 2861

Duplicate post.

TheScarletKnight wrote:He actually posted that here too viewtopic.php?t=165723

ScarletKnight:

Thank you for alerting us to Rick's duplicate (first) post.

Best wishes.
Taylor
by Taylor Larimore
Fri May 22, 2015 11:53 am
Forum: Investing - Theory, News & General
Topic: "Does Your Fund Manager Consistently Beat the Stock Market?"
Replies: 9
Views: 996

"Does Your Fund Manager Consistently Beat the Stock Market?"

Bogleheads: Christine Benz and John Rekenthaler are two mutual fund experts at Morningstar whom I greatly respect and have taught me much of what I know. Today Mr. Rekenthaler posted an article comparing the results of winning fund managers and monkeys. These are excerpts: "The top U.S. stock f...
by Taylor Larimore
Fri May 22, 2015 10:09 am
Forum: Investing - Theory, News & General
Topic: Our Mistakes Benefit Future Generations
Replies: 18
Views: 2861

"Our Mistakes Benefit Future Generations"

[Thread merged into here, see below. --admin LadyGeek]

Bogleheads:

Rick Ferri, a Boglehead and adviser, tells us about the mistakes he made before reading Bogle on Mutual Funds (I can relate).

Our Mistakes Benefit Future Generations

Thank you, Rick

Best wishes
Taylor
by Taylor Larimore
Fri May 22, 2015 9:19 am
Forum: Investing - Help with Personal Investments
Topic: Should I move IRA funds to VSCGX?
Replies: 9
Views: 792

Fourteen funds to Two.

mfswatz9: You wrote: * I think I could sleep nights with about a 35% equities, 65% bonds. * I am thinking about changing my retirement funds at Vanguard to the Life Strategy Conservative Growth fund (VSCGX) (40% stocks) for simplicity. * I am in the 15% tax bracket. * I know that Wellesley and Welli...
by Taylor Larimore
Thu May 21, 2015 9:32 pm
Forum: Investing - Theory, News & General
Topic: How to be a successful fund manager
Replies: 4
Views: 418

Super fund manager

BogleInvestorLondon wrote: My mother got lucky with her fund manager. He has CRUSHED the market consistently for over 30 years.
.

And what fund might that be?

Best wishes.
Taylor
by Taylor Larimore
Thu May 21, 2015 9:17 pm
Forum: Investing - Theory, News & General
Topic: What's so great about simplicity?
Replies: 114
Views: 7984

What's so great about simplicity? Jack Bogle explains.

What's so great about simplicity? Mr. Bogle in his book "Enough" has a chapter titled "Too Much Complexity, Not Enough Simplicity." These are excerpts: "For me, simplicity has always been the key to successful investing." "My career has been a monument, not to bri...
by Taylor Larimore
Thu May 21, 2015 8:37 pm
Forum: Investing - Theory, News & General
Topic: Not your father's Total Bond Market Fund anymore
Replies: 60
Views: 6429

Why Total Bond Market Index Fund

When and why did Vanguard choose the Barclay's index to follow for Total Bond Market II? Should Vanguard reconsider, and maybe choose to follow another index? I defer to Vanguard, whose team is much smarter than I am in deciding such things. In fact, I pay them to make those decisions. fortyofforty...
by Taylor Larimore
Thu May 21, 2015 8:04 pm
Forum: Forum Issues and Administration
Topic: Forum operating really slowly.
Replies: 10
Views: 585

Forum works fast for me

Forum engineers:

The Boglehead Forum continues to work fast for me. I have Chrome.

Best wishes.
Taylor
by Taylor Larimore
Thu May 21, 2015 7:47 pm
Forum: Investing - Help with Personal Investments
Topic: Should I move IRA funds to VSCGX?
Replies: 9
Views: 792

Re: Should I move IRA funds to VSCGX?

Thank you for editing your opening post (OP) One more question I should have asked earlier about your desired stock/bond ratio? In the next bad bear market, a portfolio should expect a percentage decline equal to 1/2 its stock allocation. In other words, a 50% stock portfolio should be expected to d...
by Taylor Larimore
Thu May 21, 2015 6:12 pm
Forum: Investing - Help with Personal Investments
Topic: Best way to compare Vanguard fund tax-efficiency?
Replies: 6
Views: 702

"Principles of Tax-Efficient Fund Placement"

michelef wrote:Hello,
My husband and I own a diversified group of Vanguard funds in taxable, tax-deferred and Roth accounts. Going forward we'd like to make better decisions in terms of asset location.

Michelef:

You will find information here:

Principles of Tax-Efficient Fund Placement

Best wishes.
Taylor
by Taylor Larimore
Thu May 21, 2015 5:45 pm
Forum: Investing - Help with Personal Investments
Topic: Should I move IRA funds to VSCGX?
Replies: 9
Views: 792

Re: Should I move IRA funds to VSCGX?

mfswatz9: We need more information to give you informed advice. * Please change the fund (and CD) percentages in each account to the fund percentages of your TOTAL portfolio (which is what matters). Use the edit pencil in the little box at the top of your window. * What is your income tax bracket? *...
by Taylor Larimore
Thu May 21, 2015 5:24 pm
Forum: Investing - Help with Personal Investments
Topic: International Bond fund in Three Fund Portfolio
Replies: 11
Views: 732

Re: International Bond fund in Three Fund Portfolio?

Please tell me how you did it. At the top of each post is a title header; click on it to get a direct link to that comment within the discussion, e.g. https://www.bogleheads.org/forum/viewtopic.php?p=2498474#p2498474 for the message I’m responding to right now. You said “page 11”, so I skipped to t...
by Taylor Larimore
Thu May 21, 2015 4:55 pm
Forum: Investing - Theory, News & General
Topic: Multiple Account Management
Replies: 30
Views: 1036

Re: Multiple Account Management

I have 5 main accounts: 401(k) IRA My Roth Spouse Roth Brokerage acct Right now I'm allocated across the entire portfolio at an 80/20 split (with many postions) but not within each account. My question is, would it be worth while to have a 4 fund portfolio in EACH account? I'm thinking it would be ...
by Taylor Larimore
Thu May 21, 2015 4:38 pm
Forum: Investing - Help with Personal Investments
Topic: International Bond fund in Three Fund Portfolio
Replies: 11
Views: 732

Re: International Bond fund in Three Fund Portfolio?

On page 11 of my The Three Fund Portfolio post, I gave additional reasons for not adding an international bond fund. Direct link to that, to save wading through a 1000+ comment discussion: http://www.bogleheads.org/forum/viewtopic.php?f=10&t=88005&start=500#p1837043 cdevers: Thank you for t...
by Taylor Larimore
Thu May 21, 2015 4:12 pm
Forum: Investing - Help with Personal Investments
Topic: International Bond fund in Three Fund Portfolio
Replies: 11
Views: 732

Re: International Bond fund in Three Fund Portfolio?

mhall:

In my opinion your decision is a good one.

On page 11 of my The Three Fund Portfolio post, I gave additional reasons for not adding an international bond fund.

Best wishes.
Taylor
by Taylor Larimore
Thu May 21, 2015 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: VTSAX: Does it eliminate the need for dividend funds?
Replies: 9
Views: 2578

Re: VTSAX: Need to tilt?

Do I even need to tilt toward dividend aristocrats if I'm investing into VTSAX? Is it worth the extra 0.5% yield for less simplicity? Am I missing something? dr.j: You may be missing the fact that "total return" is much more important than "yield." Below are 5-year after-tax ret...
by Taylor Larimore
Thu May 21, 2015 3:31 pm
Forum: Investing - Help with Personal Investments
Topic: International Bond fund in Three Fund Portfolio
Replies: 11
Views: 732

Re: International Bond fund in Three Fund Portfolio

I notice the Vanguard Target Retirement has 4 funds with one being the International Bond fund. If I'm interested in a three-fund portfolio do I need to worry about international bonds?---particularly with the expected rise in interest rates in the coming years. mhall: What is the percentage of bon...
by Taylor Larimore
Thu May 21, 2015 3:27 pm
Forum: Investing - Theory, News & General
Topic: Not your father's Total Bond Market Fund anymore
Replies: 60
Views: 6429

Total Bond Market

Taylor, Is there a reason you left out the funds that outperformed TBM in 2008? :) The 2009 Independent Guide to the Vanguard Funds lists 141 Vanguard Funds in 2008. I did not have the time or energy to list all 141 funds. Six funds outperformed Total Bond Market. One hundred thirty-four funds unde...
by Taylor Larimore
Thu May 21, 2015 3:04 pm
Forum: Investing - Theory, News & General
Topic: How to be a successful fund manager
Replies: 4
Views: 418

Re: How to be a successful fund manager

Paul:

Thank you for the Forbes article. 17 to 1 odds (which the industry tries to hide) is the reason Bogleheads prefer index funds.

Best wishes
Taylor
by Taylor Larimore
Thu May 21, 2015 10:00 am
Forum: Investing - Theory, News & General
Topic: Not your father's Total Bond Market Fund anymore
Replies: 60
Views: 6429

Bond and stock returns in a bear market

Is this (Total Bond Market) really what you want for one of your three funds? My answer is "yes." Here's why: Bond funds are primarily for safety . 2008 returns for various Vanguard funds: BOND FUNDS +5.1% Total Bond Market +4.9% Intermediate-Term Bond Index +2.3% Long-Term Investment Gra...
by Taylor Larimore
Wed May 20, 2015 10:20 pm
Forum: Investing - Theory, News & General
Topic: The BIG problem with the S&P 500 index?
Replies: 37
Views: 5983

The WONDERFUL S&P 500 index!

Bogleheads:

When I started investing in 1950 at the age of 26, the S&P 500 Index was under 20. Today it closed at 2125 (not including dividends)

If I had purchased the index and stayed-the-course, I would be far richer today.

Best wishes.
Taylor
by Taylor Larimore
Wed May 20, 2015 6:53 pm
Forum: Investing - Help with Personal Investments
Topic: keep advisor or do it myself
Replies: 59
Views: 4725

Re: Keep advisor? I wouldn't.

Winsome: I counted 28 funds in your portfolio. That's ridiculous. Click the link under my signature below. Holding REITs, Hi-Yield Bond funds and other tax-inefficient funds in a taxable account is almost surely a mistake. Consider a portfolio like this: The 3 Fund Portfolio Best wishes. Taylor
by Taylor Larimore
Wed May 20, 2015 6:20 pm
Forum: Investing - Help with Personal Investments
Topic: Just got off phone with my Chase Advisor
Replies: 16
Views: 2297

Chase for investments ?

easye418: I would never use bank funds or "wealth managers" for my investments for this primary reason: If there's anything in the whole world of mutual funds that you can take to the bank, it's that expense ratios help you make a better decision. In every single time period and data point...
by Taylor Larimore
Wed May 20, 2015 9:58 am
Forum: Investing - Help with Personal Investments
Topic: keep advisor or do it myself
Replies: 59
Views: 4725

"dizzying" portfolio

He has put the "new money" in a myriad of DFA funds to the point where it is dizzying.

Winsome:

How many securities are in your portfolio? List them if convenient and show which are taxable.

Thank you and best wishes.
Taylor
by Taylor Larimore
Wed May 20, 2015 7:15 am
Forum: Investing - Help with Personal Investments
Topic: On a Scale of 1 - 10.. [Portfolio evaluation]
Replies: 34
Views: 2271

The dream of a 'perfect' plan.

B0gle7979:

It is notable that everyone believes you enjoy a good portfolio. You have received many suggestions for improvement.

The enemy of a good plan is the dream of a perfect plan. -- Jack Bogle


Best wishes.
Taylor
by Taylor Larimore
Tue May 19, 2015 4:15 pm
Forum: Investing - Theory, News & General
Topic: Supreme Court rules in favor of 401k participants who object to high fees
Replies: 30
Views: 2887

Re: Supreme Court rules in favor of 401k participants who object to high fees

Bogleheads: Millions of Americans are unable to achieve their retirement goals because of high costs and poor options in many 401K Plans. Now, companies managing 401k retirement plans must be judicious on plan investment decisions or face penalties. This seems certain to benefit company workers. The...
by Taylor Larimore
Tue May 19, 2015 2:39 pm
Forum: Investing - Theory, News & General
Topic: criteria for picking an active fund
Replies: 22
Views: 1478

Criteria for picking an active fund can stop working

The two funds that meet that criteria in my mind are Fairholme and Sequoia. Packer: The problem with trying to "beat the market" is that the criteria that worked in the past frequently does not work in the future. The Fairholme Fund (FAIRX) is an example: 15 years--Top 1% in category 10 y...
by Taylor Larimore
Tue May 19, 2015 2:05 pm
Forum: Investing - Theory, News & General
Topic: Mr. Bogle appearance on CNBC 5-19-15
Replies: 1
Views: 452

Re: Mr. Bogle appearance on CNBC 5-19-15

Rx 4 investing:

Thank you for your link.

Our mentor, Jack Bogle, has the ability to make successful investing easy and with the fewest familiar words like "bet on the entire stock market" and "stay-the-course" (1 minute, 16 seconds).

Best wishes.
Taylor
by Taylor Larimore
Tue May 19, 2015 1:46 pm
Forum: Investing - Theory, News & General
Topic: Rick Ferri Launching A Robo Advisory
Replies: 12
Views: 2823

Re: Rick Ferri leads the way

Stratton:

Thank you for your alert.

I am not surprised to learn that Boglehead contributor, Rick Ferri, leads the way by reducing fees for investors needing a trustworthy helping hand.

Best wishes
Taylor
by Taylor Larimore
Tue May 19, 2015 1:37 pm
Forum: Investing - Theory, News & General
Topic: What's so great about simplicity?
Replies: 114
Views: 7984

Re: What's so great about simplicity? Experts tell us.

What's so great about simplicity? Babington: These "experts" have your answer: Scott Adams, author of Dilbert: "I once tried to write a book about personal investing. After extensive research I realized I could describe everything that a young first-time investor needs to know on one...
by Taylor Larimore
Tue May 19, 2015 12:48 pm
Forum: Investing - Theory, News & General
Topic: The Three Fund Portfolio
Replies: 1102
Views: 508314

A nice first post

"After years of actively "managing" my own investments, and now nearing retirement, I've decided to take the more passive approach of the three-fund portfolio. After extensive reading on this subject, and from my own personal investing experience, I have become a believer. Its simpli...
by Taylor Larimore
Tue May 19, 2015 12:38 pm
Forum: Investing - Help with Personal Investments
Topic: Thrift Savings Plan and three-fund portfolio...
Replies: 22
Views: 1454

The Three Fund Portfolio

NYGIANT: Welcome to the Bogleheads Forum! After years of actively "managing" my own investments, and now nearing retirement, I've decided to take the more passive approach of the three-fund portfolio . After extensive reading on this subject, and from my own personal investing experience, ...
by Taylor Larimore
Tue May 19, 2015 12:36 pm
Forum: Investing - Help with Personal Investments
Topic: Thrift Savings Plan and three-fund portfolio...
Replies: 22
Views: 1454

The Three Fund Portfolio

After years of actively "managing" my own investments, and now nearing retirement, I've decided to take the more passive approach of the three-fund portfolio. After extensive reading on this subject, and from my own personal investing experience, I have become a believer. Its simplicity a...
by Taylor Larimore
Tue May 19, 2015 8:14 am
Forum: Investing - Help with Personal Investments
Topic: Comparison of the Three Fund portfolio to LifeStrategy Moderate Growth to my old (14 fund) portfolio
Replies: 2
Views: 626

Re: Comparison of the Three Fund portfolio to LifeStrategy Moderate Growth to my old (14 fund) portfolio

My very general conclusion is that all three investing approaches generated quite similar returns with similar (but not identical) risk exposure. That being the case then my preferred portfolio is the one that is the simplest to manage. For me and my DW right now, it's The Three Fund Portfolio. It ...
by Taylor Larimore
Mon May 18, 2015 10:46 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement and wealth management fees
Replies: 28
Views: 2565

A wise move

I fired Northwestern today and moved my taxable account back to Vanguard. It should be easy to rebalance with minimal cap gains. Vanguard makes the transfer very easy online, taking about 10 minutes. laserdoc: Thank you for your follow-up. I am confident you made a wise move. Best wishes. Taylor
by Taylor Larimore
Mon May 18, 2015 10:37 pm
Forum: Investing - Theory, News & General
Topic: "Years of Overlooked Red Flags Catch Up to Stockbroker"
Replies: 12
Views: 2213

"Years of Overlooked Red Flags Catch Up to Stockbroker"

Bogleheads:

Do you think FINRA, the industry-funded regulatory group, will protect you from dishonest brokers and advisers? Think again.

This article should be read by everyone who uses a broker or advisor:

Years of Overlooked Red Flags Catch Up to Stockbroker

Best wishes.
Taylor

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