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Re: New edition of Bogleheads' Guide to Investing???

Gerry:

I suggest you wait for the new edition.

Best wishes.
Taylor
by Taylor Larimore
Wed Apr 23, 2014 11:26 pm
 
Forum: Personal Consumer Issues
Topic: New edition of Bogleheads' Guide to Investing???
Replies: 2
Views: 224

Correction

I'd be ecstatic if I could get 5+% for the ensuing 20-30 years with say 50% or so of our FI allocation. Roly: Be careful what you wish for. Bondholders earning 5% were very unhappy in 1982 when 5-year Treasuries were yielding 29% . I would stick with diversified bond funds where bond returns rise a...
by Taylor Larimore
Wed Apr 23, 2014 3:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: A Case for Individual Bonds?
Replies: 10
Views: 696

Re: Part 2 of the EMH series

Larry: Thank you for your second article and your Summary: * Each year the SPIVA results are virtually the same — a large majority of active managers underperform their benchmarks. * Another demonstration of the failure of active management to generate alpha is to look at the returns of the two lead...
by Taylor Larimore
Wed Apr 23, 2014 11:24 am
 
Forum: Investing - Theory, News & General
Topic: Part 2 of the EMH series
Replies: 1
Views: 165

"Past Performance" when designing The Three Fund Portfolio

A Boglehead asked: But isn't there some reasoning behind the "3 fund" portfolio that has to do with past performance ? This was my reply: These are the reasons behind the design of The Three Fund Portfolio. None are based on past performance: * Very diversified with over 15,000 worldwide s...
by Taylor Larimore
Wed Apr 23, 2014 10:01 am
 
Forum: Investing - Theory, News & General
Topic: The Three Fund Portfolio
Replies: 749
Views: 258591

Reasoning behind The Three Fund Portfolio.

But isn't there some reasoning behind the "3 fund" portfolio that has to do with past performance? Thethinker: These are the reasons behind the design of The Three Fund Portfolio . None are based on past performance : * Very diversified with over 15,000 worldwide securities (lower risk). ...
by Taylor Larimore
Wed Apr 23, 2014 7:13 am
 
Forum: Investing - Theory, News & General
Topic: Does Asset Allocation beat the S&P 500?
Replies: 74
Views: 3313

The Boglehead Philosophy

I am very much a beginner, so please keep that in mind as you read my questions. thank you. The thinker: When I was a beginning sailboat racer, I tried to do what the winners were doing. It is the same in investing, a smart beginner will listen to experts and invest the way they recommend. To my kn...
by Taylor Larimore
Tue Apr 22, 2014 3:16 pm
 
Forum: Investing - Theory, News & General
Topic: Does Asset Allocation beat the S&P 500?
Replies: 74
Views: 3313

Warren Buffett

Bogleheads:
"There seems to be some perverse human characteristic that likes to make easy things difficult." -- Warren Buffett

The Three Fund Portfolio

Best wishes.
Taylor
by Taylor Larimore
Tue Apr 22, 2014 1:00 pm
 
Forum: Investing - Theory, News & General
Topic: The dangers of backtesting and overfitting data - paper
Replies: 31
Views: 1764

Re: Does Asset Allocation beat the S&P 500?

I came across this site which lists a group of "Lazy Portfolios". The ones I clicked on were all vanguard funds. And while the funds all intended to keep people passively investing while offering some diversity, I noticed the S&P had better returns over all 8 Portfolios in the 1year, ...
by Taylor Larimore
Tue Apr 22, 2014 12:30 pm
 
Forum: Investing - Theory, News & General
Topic: Does Asset Allocation beat the S&P 500?
Replies: 74
Views: 3313

5% bonds ?

I'd be ecstatic if I could get 5+% for the ensuing 20-30 years with say 50% or so of our FI allocation. Roly: Be careful what you wish for. Bondholders earning 5% were very unhappy in 1982 when 5-year Treasuries returned 29% . I would stick with diversified bond funds where bond returns rise and fa...
by Taylor Larimore
Tue Apr 22, 2014 12:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: A Case for Individual Bonds?
Replies: 10
Views: 696

Additional reading ?

Can anyone provide good material that goes beyond the investing basics, mutual funds, index funds, ETF's, asset allocation, the pro's of long term investing, etc? Groho: I am very pleased to learn that you enjoyed our book, The Boglehead's Guide to Investing. It is now printed in several languages ...
by Taylor Larimore
Tue Apr 22, 2014 11:24 am
 
Forum: Investing - Help with Personal Investments
Topic: what do you suggest for reading?
Replies: 15
Views: 972

Tax Bomb

Bogleheads:

Jason Zwieg wrote this amazing story:

Mutual Fund Tax Bombs: How to run up a $10,000 tax bill without even trying

Best wishes.
Taylor
by Taylor Larimore
Mon Apr 21, 2014 10:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax efficient fund in taxable account.
Replies: 5
Views: 524

Re: Beat The Market Week

Beat the Market Week.

Leeraar:

Hope springs eternal. It is how many companies, the media, advisers, newsletters, newspapers, magazines, authors and websites make money.

The Arithmetic of Active Management by Nobel Laurete, William Sharpe

Best wishes.
Taylor
by Taylor Larimore
Mon Apr 21, 2014 10:25 pm
 
Forum: Investing - Theory, News & General
Topic: Beat The Market Week
Replies: 4
Views: 498

Re: Tax efficient fund in taxable account.

What would be a good tax efficient equity fund in a taxable account..Is it merely Total Stock Mkt..or are there others to consider. poppa: Total Stock Market and Total International are two obvious choices with little difference between them for diversified, low-cost, tax-efficient funds. A low-cos...
by Taylor Larimore
Mon Apr 21, 2014 10:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax efficient fund in taxable account.
Replies: 5
Views: 524

I use a three-fund portfolio with just Vanguard Total Stock Market (VTSAX), Total International (VTIAX), and Total Bond (VBTLX). My understanding of the recommendations for tax-efficiency would be to the Total Bond in tax-advantaged accounts as much as possible and Total International in taxable ac...
by Taylor Larimore
Mon Apr 21, 2014 6:20 pm
 
Forum: Investing - Theory, News & General
Topic: Why is it better to put stock funds in taxable accounts?
Replies: 10
Views: 1228

Need fund names.

doggz:

Most of us have not memorized ticker symbols. You will get more replies if you edit your post to include fund names. The "EDIT" button is on the top of your window.

Thank you and best wishes.
Taylor
by Taylor Larimore
Mon Apr 21, 2014 4:15 pm
 
Forum: Investing - Theory, News & General
Topic: Why is it better to put stock funds in taxable accounts?
Replies: 10
Views: 1228

Answer to questions

well im setting my wifes Roth with the 3 funds i mentioned above...so would it be wise to set mine with the exact 3 funds ??? Yes. Also we both have about 3 common stocks in out Roths,,,JNJ, Nat Grid, McDonalds, UTC etc...would we be wise to hold these in addition to the 3 fund approach or dump the...
by Taylor Larimore
Mon Apr 21, 2014 3:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: looking at the 3 fund approach....2.3% 5 yr return ???
Replies: 19
Views: 2365

Fund Placement.

I am confused by the suggestion that all three funds are best in tax-advantaged accounts.

Sarahjane:

Our wiki explains better than I can:

Principles of Tax-Efficient Fund Placement

Best wishes.
Taylor
by Taylor Larimore
Mon Apr 21, 2014 2:55 pm
 
Forum: Investing - Theory, News & General
Topic: The Three Fund Portfolio
Replies: 749
Views: 258591

"Cookie Cutter Portfolios Are (Usually) Just Fine"

Bogleheads: The Three Fund Portfolio has been called a "cookie cutter" portfolio. A reader asked Mike Piper, editor of the highly regarded Oblivious Investor: Why would I want to pay for a (Vanguard) financial plan if all that’s included in the portfolio is the same four funds that are inc...
by Taylor Larimore
Mon Apr 21, 2014 11:47 am
 
Forum: Investing - Theory, News & General
Topic: The Three Fund Portfolio
Replies: 749
Views: 258591

"Cookie Cutter Portfolios Are (Usually) Just Fine"

Bogleheads: A reader asked Mike Piper, editor of the highly regarded Oblivious Investor : Why would I want to pay for a financial plan if all that’s included in the portfolio is the same four funds that are included in a target retirement fund anyway? That seems like a cookie cutter portfolio.” Mike...
by Taylor Larimore
Mon Apr 21, 2014 11:28 am
 
Forum: Investing - Theory, News & General
Topic: "Cookie Cutter Portfolios Are (Usually) Just Fine"
Replies: 4
Views: 1327

Strive for simplicity--not complexity.

Yea it must be ytd numbers...sorry.Im thinking of doing those 3 funds in my wifes Roth...then the doing ETF's in MY Roth just so we dont both have he same exact things...SAMBB what are some GOOD target retirement funds ?? Thx guys luberhill: Vanguard ETFs and Mutual Funds hold identical securities....
by Taylor Larimore
Mon Apr 21, 2014 7:28 am
 
Forum: Investing - Help with Personal Investments
Topic: looking at the 3 fund approach....2.3% 5 yr return ???
Replies: 19
Views: 2365

The "Gold" funds.

Ok I looked at the Vanguard 3 fund approach...it looks like a 5 yr return of 2.3 %.....am I not seeing something...that return doesnt seem too good Luberhill: The Three Fund Portfolio has no specific 5 yr return. Each investor allocates the three funds according to what they think is the best alloc...
by Taylor Larimore
Sun Apr 20, 2014 10:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: looking at the 3 fund approach....2.3% 5 yr return ???
Replies: 19
Views: 2365

Re: Typical fees for an account with Morgan Stanley ?

Jack: I doubt if anyone can tell you all the hidden fees a customer is paying at Morgan Stanley. This is what Wm Bernstein, a highly respected author and adviser, wrote in his most recent book "How Millennials Can Get Rich Slowly" : The main goal of the average stock broker or financial ad...
by Taylor Larimore
Sun Apr 20, 2014 4:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Typical fees for an account with Morgan Stanley ?
Replies: 20
Views: 1625

Two long-ago posts . .

Here's the Morningstar forum thread which started it all: Larry & Mel on "Unloved" Mid-Caps (07-30-2000) From the wiki: Index to important posts on Morningstar LadyGeek: I used your link to a Conversation that Mel began 14 years ago. I was an admirer of Mel then and now. This was my R...
by Taylor Larimore
Sun Apr 20, 2014 3:13 pm
 
Forum: Investing - Theory, News & General
Topic: Mel's Unloved Mid-Caps Finally Getting Some Respect
Replies: 40
Views: 2953

I cancelled my "Miami Herald" subscription.

Cherokee:

Yesterday I ended more than 50 years subscribing to the Miami Herald.

It was a relief this morning not to bring it in and plow through the advertisements for news I don't need or can get free elsewhere.

I'm curious to see if I will want to re-subscribe later.

Best wishes.
Taylor
by Taylor Larimore
Sun Apr 20, 2014 2:46 pm
 
Forum: Personal Consumer Issues
Topic: Stopping unwanted "junk" newspaper
Replies: 23
Views: 1491

Two day old posted values?

Has anybody else noticed that your Vanguard account uses values for ETFs that are wrong (about two days old). We must be in different worlds. I couldn't care less about (unofficial) values that might be "two days old." What difference does it make to stay-the-course investors? Best wishes...
by Taylor Larimore
Sun Apr 20, 2014 9:38 am
 
Forum: Investing - Theory, News & General
Topic: Beware Vanguard DOES NOT update all your account values
Replies: 56
Views: 4549

Re: paydown strategy for mortgage

Chak:

When knowledgeable people disagree -- it may not make much difference.

Best wishes.
Taylor
by Taylor Larimore
Sun Apr 20, 2014 8:35 am
 
Forum: Personal Finance (Not Investing)
Topic: paydown strategy for mortgage
Replies: 40
Views: 3045

Accumulation phase and distribution phase portfolios.

I assume these portfolios are for the accumulation phase. sarahjane: Simple portfolios that do not have fixed percentages should be suitable for both accumulation and distribution phases. The Three Fund Portfolio and Vanguard's Target Funds are excellent in both accumulation and distribution phases...
by Taylor Larimore
Sat Apr 19, 2014 8:44 pm
 
Forum: Investing - Theory, News & General
Topic: Blog:William Bernstein’s Coward’s Portfolio
Replies: 30
Views: 4655

Re: paydown strategy for mortgage

Chak: I agree with Grabiner. Making payments to a mortgage (except a very low-interest mortgage) is usually better than making investments into a taxable account. An exception might be if you anticipate a need for cash in the near future. Investors in high income-tax brackets should also consider th...
by Taylor Larimore
Sat Apr 19, 2014 5:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: paydown strategy for mortgage
Replies: 40
Views: 3045

Re: Blog:William Bernstein’s Coward’s Portfolio

William Bernstein, investment manager and author, first introduced a version of his (8 fund) “Coward’s portfolio” in 1996. In his latest book, Dr. Bernstein recommends a 3 fund portfolio: http://blogs.marketwatch.com/thetell/2014/04/09/how-millenials-can-get-rich-slowly-book-blasts-financial-indust...
by Taylor Larimore
Fri Apr 18, 2014 9:32 pm
 
Forum: Investing - Theory, News & General
Topic: Blog:William Bernstein’s Coward’s Portfolio
Replies: 30
Views: 4655

Vanguard Frequent Trading Policy

Thethinker: I found this: Vanguard advocates a long-term investing approach. We prefer to safeguard our long-term shareholders from subsidizing frequent transaction activity by others. Our frequent-trading policy restricts fund investors from making rapid out-and-back round trips. It prohibits share...
by Taylor Larimore
Thu Apr 17, 2014 10:44 pm
 
Forum: Investing - Theory, News & General
Topic: Does Vanguard charge Rebalancing fees?
Replies: 19
Views: 1271

Re: Does Vanguard charge Rebalancing fees?

I cannot find any information on the website and hoping someone here might have an answer. It is my understanding that moving from one Vanguard Index fund to another is done so without any charges or fees. So if I wanted to sell $1,000 from the Vanguard US Total Stock Market Fund and with that same...
by Taylor Larimore
Thu Apr 17, 2014 10:30 pm
 
Forum: Investing - Theory, News & General
Topic: Does Vanguard charge Rebalancing fees?
Replies: 19
Views: 1271

"Please help me understand The Three Fund Portfolio."

Bogleheads:

A new Boglehead wrote: "Please help me understand The Three Fund Portfolio." He received this excellent reply from Nisipirus:

viewtopic.php?f=10&t=137468&p=2030630#p2030630

Best wishes
Taylor
by Taylor Larimore
Thu Apr 17, 2014 9:18 pm
 
Forum: Investing - Theory, News & General
Topic: The Three Fund Portfolio
Replies: 749
Views: 258591

Thank you.

Pennstater:

Thank you for your reply.

Best wishes
Taylor
by Taylor Larimore
Thu Apr 17, 2014 9:00 pm
 
Forum: Personal Consumer Issues
Topic: I need a new coffee maker, any recommendations?
Replies: 60
Views: 2259

Re: I need a new coffee maker, any recommendations?

pennstater2005 wrote: I don't want a Keurig, that's out. I want an auto drip, preferably something fast like the Bunn if that exists. Any ideas?

pennstater:

Why is a Keurig "out?"

What is the advantage of an "auto drip?"

Thank you and best wishes.
Taylor
by Taylor Larimore
Thu Apr 17, 2014 8:08 pm
 
Forum: Personal Consumer Issues
Topic: I need a new coffee maker, any recommendations?
Replies: 60
Views: 2259

Re: Asset allocation over time

I am 34 years old and have a 70% equity/30% fixed income allocation for my IRAs. I plan to gradually shift to more fixed income over time, but I was curious how you all change your asset allocation over time in IRAs. asif: Jack Bogle suggests, as a rough rule-of-thumb, that investor should own a per...
by Taylor Larimore
Thu Apr 17, 2014 4:40 pm
 
Forum: Investing - Theory, News & General
Topic: Asset allocation over time
Replies: 23
Views: 1232

Bogle on High Frequency Trading

Jack, In March-April we were bombarded with the news about High Frequency Trading (HFT). What is your current opinion about HFT and the merits of Vanguard using HFT-resistant exchanges such as IEX? Thank you, Victoria Victoria: Two days ago Mr. Bogle said: On balance, I think High-Frequency Trading...
by Taylor Larimore
Thu Apr 17, 2014 4:23 pm
 
Forum: Investing - Theory, News & General
Topic: Q&A with Jack Bogle at 2014 Bogleheads Conference
Replies: 23
Views: 2173

Re: Vanguard Total International (VTSAX) Qualified Distribut

Does anybody know why it is listed as providing basically 100% qualified distributions on the Bogleheads wiki? EncOre: You may be mistaken. This Boglehead wiki page lists 2013 Qualified Distributions for Total International Stock Market at 66.97%. http://www.bogleheads.org/wiki/Vanguard_Total_Inter...
by Taylor Larimore
Thu Apr 17, 2014 4:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Total International (VTSAX) - Taxable Account
Replies: 24
Views: 2246

Re: The dangers of backtesting.

John: Many thanks for introducing us to this important study for investors who often pick funds and portfolios on the basis of backtesting. :oops: Using past performance numbers as a method for choosing mutual funds is such a lousy idea that mutual fund companies are required by law to tell you it i...
by Taylor Larimore
Thu Apr 17, 2014 2:40 pm
 
Forum: Investing - Theory, News & General
Topic: The dangers of backtesting and overfitting data - paper
Replies: 31
Views: 1764

Re: Over-55 communities.

Question: Why would an over-55 'empty-nest' couple 'downsize' by selling their long-time and likely paid-off home, and buying into a new over-55 community? These heavily-marketed communities are no bargain, with 3-bedroom homes starting in the $300,000 range where I live (Philadelphia area). If the...
by Taylor Larimore
Thu Apr 17, 2014 2:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Over-55 communities a ripoff?
Replies: 38
Views: 2711

Safety ?

Define "safety."

In 2008 Vanguard's S&P 500 Index Fund plunged -37%. Meanwhile, Total Bond Market Index Fund gained +5%.

That's "safety."

Best wishes.
Taylor
by Taylor Larimore
Thu Apr 17, 2014 1:44 pm
 
Forum: Investing - Theory, News & General
Topic: Why are total bond market funds so often recommended?
Replies: 52
Views: 4443

Traditional 401K or Roth 401K

Can anyone help me determine whether to use pre-tax dollars to fund this 401k or use after-tax dollars in my Vanguard account? Even though the ERs are high, it would still seem better to use pre-tax $$$. I'm in the 33% tax bracket by the way. dr.j: You appear to be asking whether to use a Tradition...
by Taylor Larimore
Wed Apr 16, 2014 6:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401k Group Annuity Fund Selection: PIMCO or bust?
Replies: 8
Views: 366

Estate distributions ?

nosubject: Welcome to the Bogleheads forum! This year I'm receiving a large taxable distribution from my father's estate. Are you sure? Inheritances are usually tax-free to heirs. You may also find this Guideline from Schwab helpful: http://www.schwabcdn.com/public/file/P-1625576/CS13416-02_MKT13598...
by Taylor Larimore
Wed Apr 16, 2014 5:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Little to no income for 2 years- take IRA RMDs up to 37k?
Replies: 14
Views: 1164

inflation- adjusted return of the three fund portfolio.

cosimdm wrote:What does the inflation- adjusted return of the three fund portfolio look like?

Cosimdm:

You will find your answer HERE (in red) in my opening post.

Past performance does not guarantee future performance.

Best wishes.
Taylor
by Taylor Larimore
Wed Apr 16, 2014 5:39 pm
 
Forum: Investing - Theory, News & General
Topic: Please Help me understand 3-fund portfolio
Replies: 21
Views: 2250

Need fund names.

IJS:

Few of us have memorized ticker symbols. You will get more replies if you add fund names using the "EDIT" button at the top of your post.

Thank you and best wishes.
Taylor
by Taylor Larimore
Wed Apr 16, 2014 3:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: how similar small vap value ishares IJS with vanguard VBR
Replies: 6
Views: 279

Probability and Possibility

History cannot predict the future but if one invested 100% in a vanguard bond fund, how much less of a return should they expect on average as opposed to 100% stocks or a stock/bond mixture? The thinker: No one can predict the future. A wise investor considers Probability AND Possibility. Best wish...
by Taylor Larimore
Wed Apr 16, 2014 3:40 pm
 
Forum: Investing - Theory, News & General
Topic: Please Help me understand 3-fund portfolio
Replies: 21
Views: 2250

Unsure how to answer

:Taylor, Thank you for the insight. I feel somewhat bound and chained by the poor choices in my 401k. My company offers a $10k safe harbor contribution (regardless of my contribution). How do I determine whether to use pre-tax dollars to fund this 401k or use after-tax dollars in my Vanguard accoun...
by Taylor Larimore
Wed Apr 16, 2014 11:22 am
 
Forum: Investing - Help with Personal Investments
Topic: 401k Group Annuity Fund Selection: PIMCO or bust?
Replies: 8
Views: 366

Nisiprius answers a question.

I am trying to understand the basic reason for a 3 fund portfolio.

thethinker:

I am glad I did not answer your question. Nisiprius has answered it much better than I could.

Best wishes.
Taylor
by Taylor Larimore
Wed Apr 16, 2014 11:10 am
 
Forum: Investing - Theory, News & General
Topic: Please Help me understand 3-fund portfolio
Replies: 21
Views: 2250

Total Bond Market Risk ?

Consider the whole: you've also got a lot of short-term bonds in there to dampen the effect of rising rates. Average duration of TBM is 5.6 years. Compare to Intermediate-Term Bond Index, which is 6.5 years. Bustoff: Tom is right. It is a bond fund's " average duration" that best reflects...
by Taylor Larimore
Wed Apr 16, 2014 10:49 am
 
Forum: Investing - Theory, News & General
Topic: Why are total bond market funds so often recommended?
Replies: 52
Views: 4443

Re: 401k Group Annuity Fund Selection: PIMCO or bust?

dr.j This is one of the most expensive 401Ks we have seen posted. The 401K Advantus 500 Index fund charges more than 20 times what Vanguard (VFIAX) charges. :twisted: Accept any match from the company, but I would be strongly tempted to use my remaining savings to invest in IRAs or tax-efficient ind...
by Taylor Larimore
Wed Apr 16, 2014 10:29 am
 
Forum: Investing - Help with Personal Investments
Topic: 401k Group Annuity Fund Selection: PIMCO or bust?
Replies: 8
Views: 366

Re: Going from lump sum to desired portfolio allocation

bbfletch: Welcome to the Bogleheads Forum! I'm quite concerned about poor market timing and seeing my principal suddenly decline. Should I average into the market over a certain period (what period of time is reasonable?) or will it not make much difference in the long-term? Inasmuch as you would be...
by Taylor Larimore
Wed Apr 16, 2014 10:10 am
 
Forum: Investing - Help with Personal Investments
Topic: Going from lump sum to desired portfolio allocation
Replies: 4
Views: 322
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