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Re: 100% stock AA-> At what age to add bonds?

On his 25th birthday, he should change to a 90/10 allocation and decide from there how the "glide path" will take shape. Either hold on at 90/10 or start changing every year (age - 15). Using Age-15, starting the glide at age 25 puts him at 60/40 at age 55, and 50/50 at age 65. A TR fund h...
by gvsucavie03
Sun Aug 24, 2014 5:59 pm
 
Forum: Investing - Theory, News & General
Topic: 100% stock AA-> At what age to add bonds?
Replies: 58
Views: 3640

Re: International allocation

arcticpineapplecorp. wrote:Thanks for clarifying with the dates from the original graph, I wasn't exactly sure what time period that was covering.


No problem.

Vanguard places Total Int on level 5 of risk while TSM is level 4. There is much to say about the additional risk of having a greater international holding.
by gvsucavie03
Sun Aug 24, 2014 4:06 pm
 
Forum: Investing - Theory, News & General
Topic: International allocation
Replies: 68
Views: 3561

Re: International allocation

Taken from Rick Ferri off of a google search for "efficiency frontier - US stock/Int Stock" http://i61.tinypic.com/bev8e1.png Be careful there...depends on what time period you're looking at doesn't it? http://i.imgur.com/oP9dy.jpg http://i.imgur.com/oP9dy.jpg First image covers a much lo...
by gvsucavie03
Sun Aug 24, 2014 3:16 pm
 
Forum: Investing - Theory, News & General
Topic: International allocation
Replies: 68
Views: 3561

Re: Buy & Hold Forever Blue Chip Stocks???

SuperSaver wrote:Thanks to the wise BG community. I will take my hard earned salary and stick with index funds. I was tempted by the fantasy blue chip market by $0 trades on my Merrill Edge account. If anything, I will use a tiny allotment of play money to ride the wave.


:beer
by gvsucavie03
Sun Aug 24, 2014 2:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Buy & Hold Forever Blue Chip Stocks???
Replies: 73
Views: 3579

Re: International allocation

Taken from Rick Ferri off of a google search for "efficiency frontier - US stock/Int Stock"

Image
by gvsucavie03
Sun Aug 24, 2014 2:44 pm
 
Forum: Investing - Theory, News & General
Topic: International allocation
Replies: 68
Views: 3561

Re: Buy & Hold Forever Blue Chip Stocks???

Everybody said the same thing about GE not that long ago - it was "mutual-fund-like" because it bought and operated so many diverse businesses. I had personal experience with GE, as an employee and stockholder. Books were written about GE, too. You may not look at BRK like any other indiv...
by gvsucavie03
Sun Aug 24, 2014 2:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Buy & Hold Forever Blue Chip Stocks???
Replies: 73
Views: 3579

Re: Buy & Hold Forever Blue Chip Stocks???

Please think very hard about that. GE is a perfect example of the blue-chip fantasy. Circa 1999 People said "GE is like mutual fund." Globally diversified. Sector diversified. In thirty different business, and one of the three top companies in the world in every single one of those thirte...
by gvsucavie03
Sun Aug 24, 2014 2:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Buy & Hold Forever Blue Chip Stocks???
Replies: 73
Views: 3579

Re: Buy & Hold Forever Blue Chip Stocks???

I realize that, but Berkshire owns so many companies, I look at it differently. After reading the book Warren Buffett's Berkshire Hathaway - 101 Reasons to own the World's Greatest Investment by Robert P. Miles, I do not look at it like any other individual stock on earth. However, I still recommen...
by gvsucavie03
Sun Aug 24, 2014 2:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Buy & Hold Forever Blue Chip Stocks???
Replies: 73
Views: 3579

Re: New funds available...AA check?

cherijoh wrote:Why not keep the Spartan S&P 500 fund and just add some mid-cap and small cap to get your domestic exposure?


http://www.bogleheads.org/wiki/Approxim ... ock_market

Already covered above
by gvsucavie03
Sun Aug 24, 2014 2:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: New funds available...AA check?
Replies: 7
Views: 570

Re: AAII

I wouldn't pay $30/year to get the advice I could read for free on Oblivious Investor's blog, this Wiki/blog or this forum.
by gvsucavie03
Sun Aug 24, 2014 2:06 pm
 
Forum: Personal Consumer Issues
Topic: AAII
Replies: 3
Views: 328

Re: Buy & Hold Forever Blue Chip Stocks???

SuperSaver, how stable do you think the market of Google and Apple are? "Stability" itself is an illusion... the market is constantly changing, and technology will only make the rate of change more difficult. Imagine just going back to 1990 and doing this same exercise... how many compani...
by gvsucavie03
Sun Aug 24, 2014 1:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Buy & Hold Forever Blue Chip Stocks???
Replies: 73
Views: 3579

Re: Buy & Hold Forever Blue Chip Stocks???

In the spirit of answering your original post, you could always add some JNJ with a portion of your $20,000. Agree with your post in its entirety, but one could also get decent J&J exposure through Vanguard Health (VHT) and the IYH and IXJ iShares. All have handily outperformed J&J, which a...
by gvsucavie03
Sun Aug 24, 2014 1:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Buy & Hold Forever Blue Chip Stocks???
Replies: 73
Views: 3579

Re: Buy & Hold Forever Blue Chip Stocks???

FYI - some of the wisest and most "seasoned" BH's are chiming in on this thread. I suggest you do exactly what they are recommending if you want to be a successful investor. This forum was founded on helping folks like the OP see the "light."
by gvsucavie03
Sun Aug 24, 2014 1:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Buy & Hold Forever Blue Chip Stocks???
Replies: 73
Views: 3579

Re: New funds available...AA check?

You might consider the 4 fund tilting portfolio: http://www.bogleheads.org/forum/viewtopic.php?f=10&t=38374 And consider reading Taylor's Three Fund Portfolio thread. This changed my mind in regards to simplicity. http://www.bogleheads.org/forum/viewtopic.php?f=10&t=88005
by gvsucavie03
Sun Aug 24, 2014 1:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: New funds available...AA check?
Replies: 7
Views: 570

Re: International allocation

Austintatious wrote:Where am I wrong, here?


Not wrong, just some folks don't like adding that much risk for the diversification Int. stocks allow. I really don't think there is a right answer here.
by gvsucavie03
Sun Aug 24, 2014 1:26 pm
 
Forum: Investing - Theory, News & General
Topic: International allocation
Replies: 68
Views: 3561

Re: New funds available...AA check?

mrjcgumby wrote:I think that looks good and isn't overly complicated.


According to what? This is VERY complicated in comparison to a 3-fund or Core 4.

Stick with simplicity. Add TIPS in transition to retirement and continue to build more in retirement until between 30-50% of FI.
by gvsucavie03
Sun Aug 24, 2014 11:30 am
 
Forum: Investing - Help with Personal Investments
Topic: New funds available...AA check?
Replies: 7
Views: 570

Re: Buy & Hold Forever Blue Chip Stocks???

Read the wiki of this website... you'll find quickly that your post runs directly perpendicular to the philosophies that have developed this community, especially that this is a portfolio you intend to pass on to your children.
by gvsucavie03
Sun Aug 24, 2014 11:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Buy & Hold Forever Blue Chip Stocks???
Replies: 73
Views: 3579

Re: Help with AA for 25 year old

You all bring up very good points, and I'm happy I have more discussion points to bring up with her to help her make the best decision. From a personal standpoint, I understand the benefits of a market correction when you have a long investment horizon and I can stay the course, but I also understa...
by gvsucavie03
Sun Aug 24, 2014 10:41 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with AA for 25 year old
Replies: 11
Views: 517

Re: International allocation

We're at 30%, although I'm steadily becoming convinced, largely by all the discussions about international on this forum, that it should be higher, reflecting true market share. World market share and personal risk tolerance are two different issues. Some folks may not like the greater volatility o...
by gvsucavie03
Sun Aug 24, 2014 10:39 am
 
Forum: Investing - Theory, News & General
Topic: International allocation
Replies: 68
Views: 3561

Re: Help with AA for 25 year old

... I would caution recommending that to someone I don't know. Exactly why I refrained from making hard-set allocations. Contributing up to a match in a 401(k) is not a lot annually based on a 50K income, so one fund (Spartan 500 or TR) isn't going to shift stuff around too much. Again, we don't ev...
by gvsucavie03
Sun Aug 24, 2014 10:09 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with AA for 25 year old
Replies: 11
Views: 517

Re: International allocation

If selecting individual funds for a 3-fund (or Core 4 or whatever your flavor is), a higher % of international gives you Admiral shares more quickly.
by gvsucavie03
Sun Aug 24, 2014 10:02 am
 
Forum: Investing - Theory, News & General
Topic: International allocation
Replies: 68
Views: 3561

Re: Help with AA for 25 year old

Those are the right four funds. The question would be the allocations. I'd go with 500 to extended at a ratio of 4 - 1, about matching the market. I'd have international at about 30% of total equities. Based on research of past performance by others, the minimum I'd recommend for bonds at any age i...
by gvsucavie03
Sun Aug 24, 2014 9:53 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with AA for 25 year old
Replies: 11
Views: 517

Re: Help with AA for 25 year old

Thanks for the reply. When we lived together last year, she had about $2K in CC debt and a small personal loan to her parents. I can't understand being in CC debt at such a young age (or any age), so I made her promise that she would pay more than the minimum and be out of debt before our lease was...
by gvsucavie03
Sun Aug 24, 2014 9:50 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with AA for 25 year old
Replies: 11
Views: 517

Re: Asset Allocation in Vanguard LifeStrategy Funds

Don't forget also that you can set up a "ladder" to gradually adjust allocation and not be stuck at 80, 60, 40 and 20% stocks... The ladder shows one's desired allocation and the percentage towards LS Growth and LS Income. Desired AA Mix Gr/Inc 80/20 100/0 70/30 83.33/16.67 60/40 66.67/33....
by gvsucavie03
Sun Aug 24, 2014 9:43 am
 
Forum: Investing - Theory, News & General
Topic: Asset Allocation in Vanguard LifeStrategy Funds
Replies: 8
Views: 1300

Re: Help with AA for 25 year old

Income does not give one their tax bracket, it is based on taxable income... I make around $60K and I'm in the 15% bracket because of deductions and exemptions. The standard deduction alone might put her close to the 15% bracket. You've made a pretty detailed conclusion without all of the facts.... ...
by gvsucavie03
Sun Aug 24, 2014 9:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with AA for 25 year old
Replies: 11
Views: 517

Re: New Investor- Am I making sound investments?

At 26 years old, I would be 100% in stocks in my retirement accounts. You have 35-40 years before retirement. You just can't panic and sell if the stock market goes down 20%-50%. That's the "sell low" strategy. You can start to move toward your bond allocation in your retirement accounts ...
by gvsucavie03
Sat Aug 23, 2014 7:31 am
 
Forum: Investing - Help with Personal Investments
Topic: New Investor- Am I making sound investments?
Replies: 22
Views: 2560

Re: Which Vanguard bond Fund ?

I don't disagree with anything you said and would also like to hear what he says at the BH conference. I know that over the past 2 years he has repeatedly stated his discomfort with the high US government instruments percentage (c.70%) in the index that TBM follows and therefore with the fund itsel...
by gvsucavie03
Fri Aug 22, 2014 7:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which Vanguard bond Fund ?
Replies: 36
Views: 3154

Re: Which Vanguard BOND Fund ?

Why would one select a bond fund with the same criteria (performance) as they do a stock fund? Bond fund selection should be about choosing a fund with the highest rating and greatest diversification without too long or short of a duration. TBM is a no-brainer. +1 Tell Jack Bogle that TBM is a no-b...
by gvsucavie03
Fri Aug 22, 2014 4:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which Vanguard bond Fund ?
Replies: 36
Views: 3154

Re: Reading Suggestions

Glad you figured out that DR's investing advice is flawed... :annoyed
by gvsucavie03
Thu Aug 21, 2014 6:51 pm
 
Forum: Investing - Theory, News & General
Topic: Reading Suggestions
Replies: 12
Views: 790

Re: Reading Suggestions

Little Book of Common Sense Investing by Bogle is also a quick, informative, and even humorous read. It's also not nearly as "dense" as his two main textbooks - Bogle on Mutual Funds and Common Sense on Mutual Funds, but both of those are excellent for a serious investor.
by gvsucavie03
Thu Aug 21, 2014 6:40 pm
 
Forum: Investing - Theory, News & General
Topic: Reading Suggestions
Replies: 12
Views: 790

Re: New Investor- Am I making sound investments?

Does your 6% match only apply if you buy company stock? How long until you can sell the stock within the 401(k)? Reason I'm asking is you have almost 1/4 of your nest egg in company stock which is very risky.
by gvsucavie03
Thu Aug 21, 2014 6:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: New Investor- Am I making sound investments?
Replies: 22
Views: 2560

Re: Which Vanguard BOND Fund ?

A number of Bogleheads do not see the Total Bond Fund as the apporpriate sole bond fund to hold. These doubters include Jack Bogle and Larry Swedroe (who have different reasons for not liking it). There have been many threads on this forum discussing this subject. The risks of corporate bonds have ...
by gvsucavie03
Wed Aug 20, 2014 9:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which Vanguard bond Fund ?
Replies: 36
Views: 3154

Re: portfolio turnover

Probably due to maturities being reached. Why would you buy TBM in a taxable account?
by gvsucavie03
Wed Aug 20, 2014 9:21 pm
 
Forum: Investing - Theory, News & General
Topic: portfolio turnover
Replies: 9
Views: 937

Re: New Investor- Am I making sound investments?

Hrer is the link to asking portfolio questions

viewtopic.php?f=1&t=6212
by gvsucavie03
Wed Aug 20, 2014 9:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: New Investor- Am I making sound investments?
Replies: 22
Views: 2560

Re: New Investor- Am I making sound investments?

Welcome! Please post portfolio questions under the guidelines on the investment forum page. Read the wiki as far as you possibly can and pick up a copy of Bogleheads Guide to investing off of Amazon. You'll learn that those friends selling are not wise. We are buy-and-hold after setting an asset all...
by gvsucavie03
Wed Aug 20, 2014 9:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: New Investor- Am I making sound investments?
Replies: 22
Views: 2560

Re: Which Vanguard BOND Fund ?

Why would one select a bond fund with the same criteria (performance) as they do a stock fund? Bond fund selection should be about choosing a fund with the highest rating and greatest diversification without too long or short of a duration. TBM is a no-brainer.
by gvsucavie03
Wed Aug 20, 2014 7:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which Vanguard bond Fund ?
Replies: 36
Views: 3154

Re: Which Vanguard BOND Fund ?

Total bond market.... Greatest diversification. Even better to add inTIPS.
by gvsucavie03
Wed Aug 20, 2014 4:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which Vanguard bond Fund ?
Replies: 36
Views: 3154

Re: Purpose of VTIAX?

Image

Yay... learned something new. Can't figure out how to link, but the img is there at least....

Blue line is US, Orange is Int
by gvsucavie03
Wed Aug 20, 2014 3:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: Purpose of VTIAX?
Replies: 5
Views: 471

Re: Purpose of VTIAX?

Really? Not if you look back beyond just the last year or two.... http://quotes.morningstar.com/chart/fund/chart?t=VTSAX&region=usa&culture=en-US&dataParams=%7B%22zoomKey%22%3A9%2C%22version%22%3A%22US%22%2C%22showNav%22%3Atrue%2C%22defaultShowName%22%3A%22name%22%2C%22mainSettingId%22%3...
by gvsucavie03
Wed Aug 20, 2014 3:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Purpose of VTIAX?
Replies: 5
Views: 471

Re: Your biggest "Missed Money" event that still kills you?

Hindsight is 20/20, but FWIW...

Spending too much in college and having to still be paying off loans 9 years later. We could be so much further along than we are now if we didn't start married life with close to $60,000 in debt on a starting teacher's salary.
by gvsucavie03
Mon Aug 18, 2014 5:27 pm
 
Forum: Investing - Theory, News & General
Topic: Your biggest "Missed Money" event that still kills you?
Replies: 102
Views: 7944

Re: Help with Risky Allocation for 33 year-old

inbox788 wrote:you'll likely be better off than in cash.


And simplify things greatly, too.
by gvsucavie03
Mon Aug 18, 2014 1:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with Risky Allocation for 33 year-old
Replies: 13
Views: 1418

Re: Retirement Party Discussions

Most people think they have above-average intelligence too, which of course is mathematically impossible. "My mind is made up, so don't confuse me with the truth" Not true! Consider the following group of people with average IQ of 100: 105 105 105 105 80 The average IQ is 100. 80% of the ...
by gvsucavie03
Mon Aug 18, 2014 9:06 am
 
Forum: Investing - Theory, News & General
Topic: Retirement Party [Investment] Discussions
Replies: 50
Views: 4040

Re: Retirement Party Discussions

But no one could answer in a satisfactory way why anyone in their right mind would use a Morgan Stanley except out of ignorance. Is that it, simple ignorance? Or is there something more to it? Most people think they have above-average intelligence too, which of course is mathematically impossible. ...
by gvsucavie03
Sun Aug 17, 2014 9:42 pm
 
Forum: Investing - Theory, News & General
Topic: Retirement Party [Investment] Discussions
Replies: 50
Views: 4040

Re: Help with Risky Allocation for 33 year-old

Thanks for your perspective, any particular reason you choose 30%? BH Guide to Investing suggests 20%, Vanguard TR and LS funds have 30%. I feel somewhere within that is probably wise (Bogle suggests none, so I guess we're all wrong!). For myself as a smaller investor, 30% means getting to Admiral ...
by gvsucavie03
Sun Aug 17, 2014 9:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with Risky Allocation for 33 year-old
Replies: 13
Views: 1418

Re: The Three Fund Portfolio

Hi Taylor, Now that it seems TBM has "term-creeped" to long-term ( link ), does this change anything regarding its membership in the 3-fund portfolio - which, I believe, is using TBM to implement its allocation to intermediate-term bonds? Regards, Sunny TBM was also down-graded from Gold ...
by gvsucavie03
Sun Aug 17, 2014 2:45 pm
 
Forum: Investing - Theory, News & General
Topic: The Three Fund Portfolio
Replies: 873
Views: 340629

Re: Retirement Party Discussions

A doctorate candidate in finance had praise for Jack Bogle, but disagreed with a statement he had made against rebalancing at some point. I don't remember reading any comments by Jack against rebalancing, but maybe it is so. I know I've watched videos of Jack saying to start a TR fund, contribute m...
by gvsucavie03
Sun Aug 17, 2014 11:01 am
 
Forum: Investing - Theory, News & General
Topic: Retirement Party [Investment] Discussions
Replies: 50
Views: 4040

Re: Bond Question

scone wrote:OTOH, TIPS are Treasuries, and a higher credit quality is worth something, as is the inflation protection.


TBM is pretty high in credit quality because so much is based in treasuries and MBS, AND it's highly diversified.
by gvsucavie03
Sun Aug 17, 2014 10:13 am
 
Forum: Investing - Help with Personal Investments
Topic: Bond Question
Replies: 7
Views: 465

Re: Bond Question

Forget the Janus fund. If it were my money, I'd put at least 50% into the Total Bond fund, because the expense ratio is so cheap. OTOH, TIPS are Treasuries, and a higher credit quality is worth something, as is the inflation protection. So maybe 100% of current money in Total Bond, with 100% new co...
by gvsucavie03
Sun Aug 17, 2014 10:09 am
 
Forum: Investing - Help with Personal Investments
Topic: Bond Question
Replies: 7
Views: 465

Re: Monthly Contributions - Asset Allocation

To put in perspective, at age 31 you are "Age in bonds minus 28." Many folks on this forum are "Age" or "Age minus 10, 15" or even "20" as a more aggressive allocation. Yours is highly aggressive, and as others have said, your bond allocation is almost pointle...
by gvsucavie03
Sun Aug 17, 2014 10:08 am
 
Forum: Investing - Help with Personal Investments
Topic: Monthly Contributions - Asset Allocation
Replies: 10
Views: 692
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