Bogleheads.org

I told her not to major in "pre-med" but rather pick something in which she has an interest and while she is studying that subject to also complete the pre-reqs for med school. This is excellent advice, and I completely agree. I am in Physician Assistant School, which has a lot in common ...

My logic would not allow me to follow his debt payoff strategy. I refinanced everything I could, paid extra principle on the highest interest loans, paid down debt with bonuses. This works mathematically, but as Dave frequently points out, most people aren't in debt because of a math problem. Most ...

At this point, there's no time limit on spending the money in your HSA

I wonder if this will eventually change?

Larry, is there any upper limit your recommend for the HSA?

jmyers, I highly recommend switching to USAA for a checking account. Their customer service is excellent, they are experienced with military matters (preparing for a deployment was a single phone call), they allow mobile check deposits, and their insurance rates were far cheaper than anywhere else t...

To piggyback on Taylor's point, choosing between actively managed or index mutual funds is an important decision. Consider this advice: Most investors, both institutional and individual, will find that the best way to own common stocks is through in index fund that charges minimal fees. ~ Warren Buf...

I'm sorry for the confusing language, but my point remains. VBMFX has a higher correlation with VTSMX than with either of the Treasury funds. As I understand it, this has to do with the inclusion of MBS, among other things. VBMFX vs VTSMX http://i.imgur.com/pFPT7Bnl.jpg VFISX http://i.imgur.com/ylXv...

Sorry for the confusion, but the MBS portion of VBMFX certainly hurt returns. Take the example of VFITX, which does not include MBS but has similar average duration; the return for 2008 was 13.3. My point was that including a bond fund that excludes MBS or corporate bonds will lower the volatility o...

Larry Swedroe did an interesting article on bond fund selection recently: http://www.cbsnews.com/8301-505123_162-37841750/vanguard-bond-funds-are-not-all-created-equal/ VBMFX's addition to the portfolio resulted in a higher level of volatility than the addition of VFITX -- illustrating once again wh...

Dave Ramsey has already responded to all those who criticize something he has written: After selling over three million books, I’ve decided if you criticize something I’ve written, you are the moron (laughing and giggling). I mean, what have you done? http://www.kahlerfinancial.com/financial-planni...

Count me in the 100% charlatan category. Please consider that Dave Ramsey has helped many people straighten up their finances. After his program my wife and I learned how to work together and we no longer fight over finances because we speak the same language with money. We execute his plan with a ...

Here are some results from 1985 to present. I created a DR portfolio from my limited fund data as follows (shown in red): ⋅ 25% LCV - VIVAX (Growth) ⋅ 25% LCG - VIGRX (Growth & Income) ⋅ 25% SCB - NAESX (Aggresive Growth) ⋅ 25% INT - VGTSX (Internaal Growt...

SteelyEyed,

Okay, so VMLUX is more of a vehicle for intermediate term savings...makes sense.

Steelyeyed,

Just curious how VMLUX fits into your plan (emergency fund, short term savings, etc)?

As far as an emergency fund goes, it's hard to beat the convenience of Ally.

If I had to guess, I would expect many other banks to follow suit.

Randy_Adams,
Thanks for the link, this looks interesting!

Dale,
Is it really safe to forecast when the r squared value is so low?

I have some old silver jewelry that I'd like to get rid of soon.

Do you have any recommendations for when to buy/sell?

Bustoff, The entire point of Swedroe's approach is to lower volatility. To make up for the higher bond holdings, the equity portion is concentrated in riskier categories (small cap and value). Notice in the graph below that despite much less in equity (80% versus 30%, of total portfolio), the Larry...

Here is a possibility: ◦ Small Cap Value - VISVX– 15% → (ER = .35) ◦ Emerging Markets - VEIEX – 15% → (ER = .33) ◦ Inflation Protected Bonds - VIPSX – 35% (ER = .2) ◦ Intermediate Term Bonds- VFITX– 35% (ER=.26) Some might say that Vanguard-only funds do not provide a large enough small value tilt, ...

EDN,
Do you know of any studies or papers that try to asses what would constitute enough diversification? I like your rule of thumb, but just curious if you know of any better resources.

I think Larry's Marketwatch article, posted by Neil H originally, gives a good framework for selecting bonds (and bond funds). Bonds are only there to counterbalance the down periods in the stock market; when TSM is up, the bond portion of a portfolio is irrelevant. The best bonds for a portfolio ar...

Closet, Interesting point thanks for the link, I found that very informative. But from what I can tell, all Treasury Funds have this relationship. Short Term Treasury vs VTSMX http://i.imgur.com/KQdoKSEl.jpg 5 Year Treasury vs VTSMX http://i.imgur.com/6orDwFPl.jpg Long Term Treasury vs VTSMX http://...

So what would be the downside of holding a single fund, for example VFITX/VFIUX?

What about holding a mix of intermediate and short term bonds?

Perhaps something like in this Merriman paper: http://www.merriman.com/PDFs/UltimateBuyAndHold.pdf?

The passive investor doesn't have a benchmark because their portfolio is comprised of benchmarks.

Well put rmelvey, thanks.

The Larry Portfolio (AKA Fat Tails Portfolio) aims to reduce volatility (in the form of standard deviation) by increasing the bond holdings and concentrating the equity investments in small value funds (domestic and international). By increasing the proportion of bond holdings, such portfolios decre...

Oblivious, I agree completely with your statement. It is important to remain wary of anyone's advice, no one gets a free pass. But it would be unwise to ignore everything he teaches because of this one area; his program covers everything from budgeting to insurance (and yes saving for retirement). M...

I think a lot of the comments here are missing the true value of Dave Ramsey's advice, specifically from his FPU curriculum. My feeling is that most people would benefit from his advice (e.g., living below your means, spending wisely, saving for the future, and staying away from consumer debt). The ...

There seems to be some limit to how much you would want to contribute to the HSA, though. This comes from the Bogleheads wiki: "Once you have retired, you can withdraw from the HSA an amount equal to your past medical expenses plus any current expenses tax-free, and withdraw from your other acc...

Can someone please explain why everyone treats HSA funds like an investment vehicle. The HDHP is a great way to lower insurance premiums while still insuring against major medical expenses, but I don't understand why you would want to add funds in excess of the yearly deductible. Are other boglehead...

First, never invest in anything you don't fully understand... Larry I completely agree with your first point, and don't worry, I will not make any changes in the immediate future. My major goal with this post is to collect as much information as possible, and not make an impulsive decision. Ultimat...

baw703916 wrote:Actually, I'm a little confused; in the figure it lists short term Treasury, but in the text it says short term investment grade.
Brad

Whoops, clicked the wrong fund there. Thanks for pointing that out:

wesleymouch, I have seen the Permanent Portfolio, but I do not like the idea of holding Gold or other commodities. It is a personal choice, but I would prefer a portfolio made up of stocks and bonds. Dave, I have not read that paper, thanks for the recommendation! Based on your large Equity allocati...

I am trying to understand Larry Swedroe's investment approach. When I first found the strategy, quite frankly, I did not understand the approach. However, his goal of reducing volatility in a portfolio intrigued me; so I have spent the last week or so reading and here is what I understand: ◦ Bond al...

so might as well just hold the intermediate fund. Would you mind commenting on how you select an intermediate fund? For example, Vanguard has two funds that seem very similar to me: VFICX and VFITX . Would you consider consider the government fund, VFITX, to be less diversified? How will this affec...

I formerly listened to Ray Lucia, but his SEC scandal was enough to scare me off: http://articles.latimes.com/2012/sep/06/business/la-fi-sec-radio-20120906 . I listen to Planet Money and Dave Ramsey for financial podcasts. Planet Money usually has interesting stories, unlike many financial shows. I ...

Perhaps I don't understand the distinction between these two approaches. Either way, the portfolio is re-balanced every year to meet the desired asset allocation. If you can explain the calculation, then I can add this to a spreadsheet. All of my data starts in 1985, but here are the values ending i...

Taylor, First, I agree that past performance should never be used to predict future returns. However, charting past performance has been helpful for me when I attempt to explain certain broad ideas (such as the difference between holding a 100% stock portfolio and diversifying with bonds). Excellent...

Most financial back-testing is done by looking at the growth of $10,000 over a given time period. For example, this picture compares 2 portfolios: an 80/20 fund vs. Bill Schultheis' Coffehouse Portfolio. On the surface it would seem that the 80/20 fund has higher returns for the given timeframe. [im...

pkcrafter, I don't know how I missed the connection between these two portfolios. The core four portfolio that I have seen previously was 80/20 (stocks/bonds) and it had a little too much volatility for me. For anyone interested, here is an excellent thread by Rick Ferri himself: Core Four Portfolio...

Why do you place such a high percentage into small cap and international funds?

Livesoft, there are quite a lot of portfolios listed on that thread. From what I gathered, the purpose of the thread was to explore a similar strategy (simplifying the FundAdvice portfolio). What 5 fund portfolio are you referring to?

Hello, The Coffeehouse Investor , by Bill Schultheis is a fantastic book, and his straightforward investing style is very appealing to me. I was curious what the effect would be of simplifying the domestic slices into the Total Stock Market (shown in the picture below). Does anyone have thoughts abo...

Consumer reports posted a good guideline for making this decision. If the annual comprehensive and collision premiums are 10% or more of the car's value, consider dropping the coverage. Are they talking about a year's worth of premiums, or six months'? And are you sure they were talking about both ...

Consumer reports posted a good guideline for making this decision. If the annual comprehensive and collision premiums are 10% or more of the car's value, consider dropping the coverage. We own a 2000 Honda Civic with a comparable amount of miles and value, and we decided NOT to purchase the comprehe...

Financial overview is everything. It tracks our assets, debts, goals, etc. I don't necessarily update that monthly, but every other month or so. I sometimes update that monthly when I have the time. I realize that I didn't mention my yearly checklist. This includes things that are not just financia...

mhc wrote:4. Max out HSA (Jan)

I think your list was fantastic, but I have to admit I am a little ignorant about HSAs. What is the advantage to maxing out the HSA in January instead of other months?

I was curious if anyone has a list of best practices for their monthly finances. Right now we print out our budget, re-balance the portfolio as needed, and maintain a calendar with all the important bills and events. Any ideas for a monthly personal finance checklist? If anyone has quarterly or year...

I also highly recommend YNAB (You Need A Budget). It may not be exactly what you are looking for, but I found it to be much more helpful than Quicken. As a young couple, we have found it to be extremely helpful. Highly recommended!

Website: http://www.youneedabudget.com/