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Here is how I think, but it may be wrong. Think if the entire stock market is made up of 1 company, Mcdonalds. In this imaginary world, you can only eat at home, eat at local own restaurants, or Mcdonalds. So as long as Mcdonalds is able to make a profit of 10% of year, then stock investors also mak...

Thanks Valuethinker for your explanation. REIT sounds just like Bonds, when interest rate rises, bond prices fall. When REIT yield rises, REIT prices fall. I never heard of this before, I should really go back and read some investment books about REIT. S&P500, reits, bonds all seems overpriced n...

Now, all we’re left to calculate is the speculative return. Mr. Bogle, I think, would say that the historical yield should be 6%, so the doubling of the yield over the next 10 years should detract 7% pa from the return. I'm a newbie. Reading this many times, and I still don't understand the specula...

Carpe wrote:
Go 50/50?

Yup, I went 50/50 in my 401k. My 401k only has Pimco total return. So i picked a Target Retirement 2040 for the 50% bond, and 50% on pimco total return.

Same for US equities and international equities. I'm 50% pick and choose/50% Target Retirment 2040.

My 401k start offering small cap index. Which should I buy? Spartan small cap index. FSSSX. .24% er Spartan extended market index FSEVX. .07 er I am already buying spartan s&p500 index. Also if one can recommend a ratio of s&p500 to small cap if I want a small value tilt. Thanks

Yes Espp is a good deal.

Buy it and sell it right away the next day. Do not hold on to it.

So if I earn 100k a year and work for 10 years, I should have 1 million saved at 100%.
Is that how to calculate?

I rather use formular from your money ratios book or millionaire next door book.

I also recommend opening an account at both for your own protection. IRA at one location, and taxable in the other.

In case one of them goes out of business, you don't have money all in one location.
Bear Stearns, Enron, and Lehman Brothers are all out of business.

That's a very good question. Nobody knows because both TIPS and I-bonds have not met those hyper inflated scenarios yet.

Go with pimco PTRAX.

Also recommend you do a forum search on the top right corner for PTRAX

My bank, Citizens, did the same thing. They called me, then ask for verification.

I was reluctant to give it out but then they gave me back some confirmation. They told me my last bank transaction, the reason for calling, etc.

What is the turnover rate for vanguard funds like Total US or Total International?

Use morningstar

http://portfolio.morningstar.com

Enter all your transactions, shares, and when you bought it. Then click performance

In addition (I forget if this is already on the wiki), one can potentially put a differently-allocated target retirement in tax-advantaged, and a single fund in taxable. (e.g. target retirement 2040 in tax-advantage, VTI in taxable, instead of target 2050 in both for tax advantages). That is what I...

My lifecycle target retirement 2035 has 4% commodities so I'm like force to have it.

Commodity index ishare etf GSG lost 45% in the past 5 years.

Relying on gut feeling is not good. Your gut feeling and risk tolerance changes everyday. People can take more risk when market has been going up. I recommend reading "your money and your brain" book to understand that your risk tolerance changes often. Therefore create a written document ...

tax-deferred Fidelity Spartan Extnd Mkt Idx Advtg FSEVX 1.94% Fidelity Spartan 500 Index Institutional FXSIX 14.67% Vanguard REIT Index I VGSNX 13.61% Pyramis Target Retirement 2025 21.66% American Funds EuroPacific Gr R6 RERGX 13.47% PIMCO Total Return Instl PTTRX 14.01% taxable Vanguard Small Cap ...

I see nothing wrong with equal weighted. It's like having a small tilt which alot of bogleheads have.

I would recommend 50% target retirement, and 50% S&P (or whatever is your asset allocation for the 50% portion)

Rick Ferri wrote:

Browser wrote:Use PeakPE for a useful valuation fix, not Shiller PE10.

Rick Ferri

Is there a website that shows the PeakPE or trailing 12 month PE? What is it currently? I don't know how to calculate these myself, and I usually visit the PE10 website to see the number for PE10.

3 free books on the wiki

http://www.bogleheads.org/wiki/Financia ... logs#Books

Do you say this because you feel like stocks could potentially sink so I should rush into bonds to save some of my money? Stocks will eventually sink and no one knows when. I recommend getting some bonds soon so that you can rebalance. See rebalancing http://www.bogleheads.org/wiki/Rebalancing With...

1. for IRA funds. Buy VTSMX See this 3 fund thread in the sticky http://www.bogleheads.org/forum/viewtopic.php?f=10&t=88005 2. Use Option 2. Always sell ESPP right away the next day. take the 15% profit and run. 3. Roth 401k seems like a better option for young people like you. You can also do 5...

I was 100% equities until I read a few books and found this website last year at age 35. I changed to 20% bonds right away. Sure, you can put 10% new money into bonds. Stocks is at a new high so I recommend getting into bonds quickly now. Pay off your debt. Keep your cash in a bank that pays 1% inte...

I like vanguard TR


My 401k only has pyramis TR which buys 4% commodities and 4% REIT. So my TR underperform vanguards based on past 5 years of similar asset allocation.

Good news today. Hope we can go higher

There was just a house market crash around 2008. I do not think it is overpriced. Buying is always a better option imho when one plans to stay in the same neighborhood for 5+ years. For Boston, Massachusetts, prices of houses are around same price as it was 10 years ago. The prices are decent now, i...

Yes. Strategy sounds good.

I have similar salary and age as you. I have rental property and my wife manages it.
Paying someone 10% is fine. Good luck

If you have some cash sitting on the sidelines, I would buy today.

I found this article pretty boglehead friendly: http://dailycapital.personalcapital.com/investing/the-seven-deadly-investor-sins/ I don't understand point #4: Poor Tax Management Quote "Relative to mutual funds, Exchange traded funds (ETFs) are a step in the right direction. In fact, greater ta...

If extended market index exist, what is a good ratio to replicate TSM.

Good question as I would have ask myself. Mines is 1-3 days delay at Fidelity. I guess it doesn't matter after all. Another annoying thing is the W2 tax contribution says i pay around $14,000 to 401k in 2012. Fidelity says I paid $13,000 in 2012. It turns out it was a delay of that 1 payment, and I ...

You can be more aggressive with the money you do not need and plan to give away to your kids/charity. So if you only need half the money, then the other half can be in an aggressive 80/20. Therefore 70/30 is fine, but keep it that way for atleast 5 years. Do not switch your AA anymore within 5 years.

I just read "Your brain and your money" today and a small section talks about these 2 authors losing 1 million dollars. I learned a lot from reading the book "Your brain and your money" today.

Someone update the wiki links to the 3 free books. The 3 links are all broken here:

http://www.bogleheads.org/wiki/Financia ... logs#Books

My portfolio is most similar to s&d. I'm interested in creating in excel as well.
Do you have a sample excel file or google docs file to share?
Thanks

madsinger wrote:, roughly 60/5/3/32 stock/REIT/PM/bond.

What does PM mean?

How do I generate similar reports for myself? I have vanguard and fidelity accounts and they only give me "your total YTD is 3.3%"

I also thought that the market should in theory always be at a all time high. Milk is at an all time high, stamps is at an all time high. everything will be at all time high given enough time. Today is a really good day for stocks. I've seen threads for 'really bad day'. are there any 'really good d...

I don't understand this. The S&P 500 has a 10% chance to go to 2061.24 based on January performance?

I feel like it has 1% chance to get to 2061.
The good news I read is that gains in January usually means gain for the year.

What are the expense ratios of your 401k? pick the one with lower expense ratio of funds you plan to buy. 401k offers better protection than IRA if you get sued in court or divorce. rolling to IRA prevents you from doing a backdoor Roth. Your fund selection is pretty good so it sounds like 401k is t...

Either works but make sure you stick with it for atleast 5+ years.

Do not jump back and forth between small value and small index based on last 5 year performance.

If I count my own house and my parents house (which is under my name). Then I'm in 2 comma club. Otherwise still many years to go.

How would one rebalance? If stocks fall 20%, and I need to rebalance. so I need to keep track of how much money I put back in mortgage as the bond part.

Books recommend age in bonds. So 32 year old can have 32% in bonds.
I recommend 20% for you since you are currently 100 equities.

Could you give abit more story on how you reach it? Like when did you start saving, average returns, asset allocation?

I guess my real question is if I have just left the "cookie" on my computer or was it up there in the cloud also so that anyone that knew my account name could get in without entering a password. It is a "cookie" on your computer. No one else can login as you at that moment in t...

I have the same problem with the OP. Even with target retirement funds, i wanted TR2025. then decided 2030, then 2035. Bought and sold alot in 401k in 2012 because of this forum. To the point where Fidelity 401k sent me a letter, you have bought and sold out of TR2025 too much and forbid to sell/buy...

Stick with Target retirement if it is the only investment account you have. the 3 fund portfolio is good if you have other money not in 401k. So if you have a taxable fidelity account, you can put the US stock in fidelity. The international and bond can stay in your T rowe account.

My wife heard from a friend to buy faz/fas and make quick fast money. He said these stocks are for short term, 1 week. Don't hold it for long. faz = Direxion Daily Financial Bear 3X Shares fas = Direxion Daily Financial Bull 3X Shares Not doing any research, We ended up buying $3000 worth of faz (be...

1. What is the five year return on Vanguard Target Retirement 2025 Fund (VTTVX) ? Morningstar says: 4.5% Annualized http://quicktake.morningstar.com/syndication/trailreturn.aspx?cn=GLG117&symbol=VTTVX Vanguard website says: 2.33% Annualized https://personal.vanguard.com/us/funds/snapshot?FundId=...

I was thinking about taking a 50k loan from 401k as a downpayment for an investment property. Everything I read so far in this thread sounds like this is a very bad move.