Search found 449 matches

Return to advanced search

Re: Why does Swensen have 30% Bonds?

He believes that 25 to 30% should be the maximum allocation for any single asset class. He also states that 30% in U.S. securities can provide protection during a financial crisis.

The portfolio you show is for individual investors, not his endowment fund.
by pascalwager
Sat Dec 20, 2014 2:33 pm
 
Forum: Investing - Theory, News & General
Topic: Why does Swensen have 30% Bonds?
Replies: 22
Views: 1842

Re: What is your opinion about "tilting?"

pascalwager wrote: by DVMResident » Thu Dec 11, 2014 6:30 pm leonard wrote: But, I don't think they actually take in to account whether they will really maintain the rebalancing involved. I really think they don't consider a less-financially-interested spouse one day being the portfolio manager. Th...
by pascalwager
Tue Dec 16, 2014 8:08 pm
 
Forum: Investing - Theory, News & General
Topic: What is your opinion about "tilting?"
Replies: 116
Views: 8750

Re: Why don't YOU follow Buffett's advice?

Buffett offers this advice (90/10, VG 500/ST bonds) for someone with a minimum 20-year time horizon. Seems reasonable to me: broad-based index stock fund and low-risk bonds.

I don't think his wife is going to inherit billions of dollars--most of his fortune is going to charity.
by pascalwager
Sun Dec 14, 2014 10:44 pm
 
Forum: Investing - Theory, News & General
Topic: Why don't YOU follow Buffett's advice?
Replies: 114
Views: 8105

Re: What is your opinion about "tilting?"

by DVMResident » Thu Dec 11, 2014 6:30 pm leonard wrote: But, I don't think they actually take in to account whether they will really maintain the rebalancing involved. I really think they don't consider a less-financially-interested spouse one day being the portfolio manager. Thus, I think people ...
by pascalwager
Fri Dec 12, 2014 1:24 am
 
Forum: Investing - Theory, News & General
Topic: What is your opinion about "tilting?"
Replies: 116
Views: 8750

Re: What is your opinion about "tilting?"

I still have my original DFA portfolios as I consider DFA to be the tiltmaster. Tilting should be reserved for unaverage investors such as retirees. Average investors should hold the total market.
by pascalwager
Fri Dec 12, 2014 1:03 am
 
Forum: Investing - Theory, News & General
Topic: What is your opinion about "tilting?"
Replies: 116
Views: 8750

Re: Is the Boglehead Consensus on Long Bonds still Negative?

by LeeMKE » Thu Dec 11, 2014 5:29 pm LeeMKE wrote: My asset allocation is 60/20/20 with 20 percent in LTGovt I'm confused. What's the other 20? I assume the 60 is equity. 60 US stocks / 20 Intl stocks / 20 LTG bond fund Good to hear that I'm doing something reasonable. Thanks Day9! For a high equity...
by pascalwager
Fri Dec 12, 2014 12:34 am
 
Forum: Investing - Theory, News & General
Topic: Is the Boglehead Consensus on Long Bonds still Negative?
Replies: 29
Views: 3182

Re: Is the Boglehead Consensus on Long Bonds still Negative?

What overall duration do you want for your fixed income portfolio? My spreadsheet includes a formula for overall fixed income duration. If I had a question about adding long term bonds, I would enter a long bond purchase proposal and check the new overall portfolio fixed income duration.
by pascalwager
Thu Dec 11, 2014 4:29 pm
 
Forum: Investing - Theory, News & General
Topic: Is the Boglehead Consensus on Long Bonds still Negative?
Replies: 29
Views: 3182

Re: Is it worth purchasing Ibonds on the verge retirement?

I'm 72 and still buying I Bonds. Were it possible, I Bonds would be my only bond investment.
by pascalwager
Thu Dec 11, 2014 3:54 pm
 
Forum: Investing - Theory, News & General
Topic: Is it worth purchasing Ibonds on the verge retirement?
Replies: 25
Views: 2456

Re: Is the Boglehead Consensus on Long Bonds still Negative?

Vanguard Total Bond Market Index Fund has about15% of its bonds in long term bonds. Consider that as a starting point.


But the fund overall duration is intermediate as the long-term bonds are being combined with short and intermediate durations.
by pascalwager
Wed Dec 10, 2014 9:03 pm
 
Forum: Investing - Theory, News & General
Topic: Is the Boglehead Consensus on Long Bonds still Negative?
Replies: 29
Views: 3182

Re: Poll: Your Portfolio Tax Diversification

I voted "None of the Above" as I have a large VA.

Taxable 45%
ROTH 4%
Traditional IRA 22%
VA 28%
by pascalwager
Wed Dec 10, 2014 7:24 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: Your Portfolio Tax Diversification
Replies: 45
Views: 2451

Re: How to Think About Risk in Retirement - Bernstein

I think Bernstein does a better job explaining the logic than Pfau and Kitces did. It remains very compelling to me. Bernstein is an excellent writer and this piece is clear and straightforward, helping me to understand the choices. He always adds a little humor here and there, such as in this summ...
by pascalwager
Sun Dec 07, 2014 11:44 pm
 
Forum: Investing - Theory, News & General
Topic: How to Think About Risk in Retirement - Bernstein
Replies: 64
Views: 7858

Re: What % of your fixed-income is TIPs?

TIPS can help during deflation because the original principal will be redeemed even if the index adjusted principal is less. Also, Larry Swedroe recently showed (see ETF.com) that only short-term TIPS or a commodity index fund would provide short-term inflation hedging. For a TIPS/cash portfolio, co...
by pascalwager
Thu Dec 04, 2014 2:26 pm
 
Forum: Investing - Theory, News & General
Topic: What % of your fixed-income is TIPs?
Replies: 71
Views: 3503

Re: POLL: Should investors have a separate emergency fund?

All of my "cash" is part (13%) of my portfolio: checking, HY savings, CDs, I-Bonds. I also consider this cash to be my fixed income, or "bonds". It's also my emergency fund. While I call it cash, most of it is generating "reasonable" interest.
by pascalwager
Wed Dec 03, 2014 1:39 am
 
Forum: Investing - Theory, News & General
Topic: POLL: Should investors have a separate emergency fund?
Replies: 58
Views: 3475

Re: Vanguard Ultra-Short-Term Bond Fund coming in early 2015

DFA has a similar VA fund with a one-year duration. The current YTD is only 0.29%. This was the only bond holding in my DFA VA account for nearly two decades. I assume the ultra-short duration was expected to provide inflation protection.
by pascalwager
Tue Nov 25, 2014 3:20 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard Ultra-Short-Term Bond Fund coming in early 2015.
Replies: 39
Views: 4522

Re: Spreadsheet for Rebalancing Bands

If you should happen to use a 50/50 stock allocation (e.g., TSM/TISM) and no bonds, the 5% band is all you need to consider. Just set up your spreadsheet to show the actual percentages for TSM and TISM and rebalance when TSM (TISM) is above 55% or below 45%. I've done this for several years and stil...
by pascalwager
Sun Oct 19, 2014 1:50 pm
 
Forum: Investing - Theory, News & General
Topic: Spreadsheet for Rebalancing Bands
Replies: 18
Views: 2020

Re: AA: 50/50 Domestic and International Stock IPS

I've done 50:50 since 1995. This seems to be a good ratio for people like me that don't know anything. At VG I use TSM and TISM.
by pascalwager
Mon Oct 13, 2014 3:44 pm
 
Forum: Investing - Theory, News & General
Topic: AA: 50/50 Domestic and International Stock IPS
Replies: 18
Views: 1665

Re: I'm Chuck and I work at Vanguard and Invest in Active Fu

Dan Solin recommends using a paid advisor only if he/she has a PhD in finance.
by pascalwager
Thu Oct 09, 2014 9:31 pm
 
Forum: Investing - Theory, News & General
Topic: I'm Chuck and I work at Vanguard and Invest in Active Funds
Replies: 44
Views: 8852

Re: Retirees only, what was you average investment return?

The important thing is to stay the course. If I knew my returns, I might be discouraged from staying the course--or stay the course for the wrong reason.
by pascalwager
Thu Oct 09, 2014 12:36 am
 
Forum: Investing - Theory, News & General
Topic: Retirees only, what was you average investment return?
Replies: 49
Views: 3577

Re: What was your initial AA and how has that worked out?

I started "investing" in 1980 at age 38 and bought 100% bonds (T-Bills) for the first 15 years. In 1995 I gradually sold all the T-bills and bought two DFA 85:15 stocks/bonds portfolios. Also, in 1995, I began to contribute (max and catch-up) to my workplace deferred comp using an S&P ...
by pascalwager
Tue Oct 07, 2014 3:32 pm
 
Forum: Investing - Theory, News & General
Topic: What was your initial AA and how has that worked out?
Replies: 32
Views: 2603

Re: Optimum # of Funds in a Portfolio ?

Two funds: VG TSM and VG TISM, 50:50.
by pascalwager
Mon Oct 06, 2014 12:30 am
 
Forum: Investing - Theory, News & General
Topic: Optimum # of Funds in a Portfolio ?
Replies: 17
Views: 1588

Re: Will you invest in Bill Gross's new bond fund?

I'll stay with checking, savings, CDs, and I Bonds for fixed income.
by pascalwager
Thu Oct 02, 2014 12:27 am
 
Forum: Investing - Theory, News & General
Topic: Will you invest in Bill Gross's new bond fund?
Replies: 51
Views: 3047

Re: HAPPY BIRTHDAY, VANGUARD

I don't understand what this means: These enhancements to our first S&P 500 index fund were not designed to provide higher risk-adjusted returns. That, to me, would be a fool’s errand. Rather, they were designed as targeted index portfolios to meet the legitimate needs of long-term investors. C...
by pascalwager
Sat Sep 27, 2014 12:52 am
 
Forum: Investing - Theory, News & General
Topic: HAPPY [40th] BIRTHDAY, VANGUARD
Replies: 16
Views: 1612

Re: Fama: Active Management a Bad Bet

As for his own portfolio, Fama said he primarily owns equity index funds and some Treasury Inflation Protected Securities (TIPS), adding that he has no interest in real estate or bonds. "I'm a tenured professor," he said. "The university issued me a bond." So Fama considers his ...
by pascalwager
Fri Sep 19, 2014 2:23 pm
 
Forum: Investing - Theory, News & General
Topic: Fama: Active Management a Bad Bet
Replies: 3
Views: 661

Re: What's in your tax advantage accounts?

VG IRA: TSM and TISM
VG ROTH: TSM
Transamerica VA: DFA equity funds
by pascalwager
Fri Sep 19, 2014 1:34 pm
 
Forum: Investing - Theory, News & General
Topic: What's in your tax advantage accounts?
Replies: 56
Views: 5054

Re: How to become a millionaire retiree -- then and now

In 1965 starting salary for a BSEE was $7,000 and $10,000 for an MSEE.
by pascalwager
Mon Sep 01, 2014 1:26 am
 
Forum: Investing - Theory, News & General
Topic: How to become a millionaire retiree -- then and now
Replies: 67
Views: 10375

Re: Why invest in bonds?

Keep two years emergency funds (checking, 0.95% savings, CDs). Then you can isolate your survival fears and retirement investment efforts and can consider going with 100% stocks. When you reach age 70, you can then consider gradually adding bonds.
by pascalwager
Sun Aug 31, 2014 3:55 pm
 
Forum: Investing - Theory, News & General
Topic: Why invest in bonds?
Replies: 103
Views: 6897

Re: High net worth in CA - what % of bonds in munis?

In his new book, Bill Bernstein recommends 1/3 each muni's, CDs, and Treasuries for a taxable portfolio FI.
by pascalwager
Fri Aug 29, 2014 11:06 pm
 
Forum: Investing - Theory, News & General
Topic: High net worth in CA - what % of bonds in munis?
Replies: 21
Views: 1544

Re: International allocation

My advisor (1995) first advocated 50/50 and I've stayed the course. Also, it's the long term US/int'l average. I've considered lowering int'l but any other ratio seems strange now after all these years.
by pascalwager
Sun Aug 24, 2014 2:12 pm
 
Forum: Investing - Theory, News & General
Topic: International allocation
Replies: 81
Views: 5429

Re: William Bernstein quoted in a WSJ article today

Bill seems to have changed his mind on the Vg PM & M fund. Now he seems to consider it a viable inflation-hedge investment, even with the added non-PM commodities.
by pascalwager
Mon Aug 18, 2014 7:39 pm
 
Forum: Investing - Theory, News & General
Topic: William Bernstein quoted in a WSJ article today
Replies: 3
Views: 1595

Re: Treasuries vs CDs/Cash

Bill Bernstein advises a ST Treasuries (~2.5 years maturity) AA to use for stock purchases after a stock market decline. Short term for less inflation risk. Most investors seem to want to get returns from their bonds and use longer maturities. Bill disagrees with that approach. He also advises a ~2....
by pascalwager
Tue Aug 12, 2014 8:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Treasuries vs CDs/Cash
Replies: 13
Views: 1875

Re: Going 60+% international? (US resident)

Larry Swedroe recommends no more than 50% int'l due to higher transaction costs.
by pascalwager
Fri Aug 08, 2014 10:53 pm
 
Forum: Investing - Theory, News & General
Topic: Going 60+% international? (US resident)
Replies: 83
Views: 6309

Re: Should this person buy bonds??

I believe Charles Ellis would say: if you don't need them, don't buy them.
by pascalwager
Fri Aug 08, 2014 2:47 pm
 
Forum: Investing - Theory, News & General
Topic: Should this person buy bonds??
Replies: 16
Views: 1171

Re: International investing. A good call by our mentor.

The puzzling part to me has always been this recognition that none of us can predict the future or know which asset class will out perform. In addition, many Bogleheads refer to simplicity. Would a 50% US and 50% International equity allocation not be the simple and "Boglehead" way? I wou...
by pascalwager
Thu Aug 07, 2014 7:50 pm
 
Forum: Investing - Theory, News & General
Topic: International investing. A good call by our mentor.
Replies: 145
Views: 13071

Re: Current Relevance of Short Term Bonds - Bill Bernstein Q

Even a 7 year CD has low duration risk if you can break it for a small fee. You need to watch out for changes your CD's terms though and be ready to break the CD if your bank makes unfavorable changes regarding withdrawals. I just opened a few 5-year Roth IRA CD's with Synchrony Bank. A safe altern...
by pascalwager
Wed Aug 06, 2014 6:49 pm
 
Forum: Investing - Theory, News & General
Topic: Current Relevance of Short Term Bonds - Bill Bernstein Q
Replies: 11
Views: 1271

Re: Current Relevance of Short Term Bonds - Bill Bernstein Q

A safe alternative that would satisfy Dr. BIll's criteria would have been investing in 7-year Penfed CDs starting in 2007. It would have brought a 6.25% compounded yield from 2007-20014, and it could have been reinvested in January for another 7 years at 3%. No clothespin needed (except at tax time...
by pascalwager
Wed Aug 06, 2014 3:09 pm
 
Forum: Investing - Theory, News & General
Topic: Current Relevance of Short Term Bonds - Bill Bernstein Q
Replies: 11
Views: 1271

Re: Why should a portfolio get safer as one ages?

I personally like Charles Ellis' idea to stay 100% stocks until age 70, then gradually add bonds if you think you need them . My plan is to buy a $10k I-Bond each year. At age 72, I'm on course with two I-Bonds. Some investors include I-Bonds as a cash asset, but Larry Swedroe groups them with TIPS ...
by pascalwager
Tue Aug 05, 2014 7:14 pm
 
Forum: Investing - Theory, News & General
Topic: Why should a portfolio get safer as one ages?
Replies: 30
Views: 2956

Re: Short term vs Intermediate term bond funds

I like risk-free fixed income and have rarely used intermediate term bonds. I get plenty of risk from stocks. When rates were higher I used DFA ultra-short bond funds (one-year and two-year). Now I only use savings accounts, CDs, and I-Bonds. When it comes to bonds, I'm really not a Boglehead.
by pascalwager
Tue Aug 05, 2014 1:57 pm
 
Forum: Investing - Theory, News & General
Topic: Short term vs Intermediate term bond funds
Replies: 27
Views: 2830

Re: International investing. A good call by our mentor.

In a global economy, it may not be possible to invest patriotically. At the very least, you would need to use a Patriot Index Fund, and you would need to read the prospectus very carefully.
by pascalwager
Mon Aug 04, 2014 5:50 pm
 
Forum: Investing - Theory, News & General
Topic: International investing. A good call by our mentor.
Replies: 145
Views: 13071

Re: International investing. A good call by our mentor.

I think you might want to read his books. That would be a good start. Agreed. I have read The Little Book of Common Sense Investing and Common Sense on Mutual Funds . I have read (and seen) a few speeches and interviews, articles and many, many quotes provided in articles and thread discussions. It...
by pascalwager
Mon Aug 04, 2014 2:31 pm
 
Forum: Investing - Theory, News & General
Topic: International investing. A good call by our mentor.
Replies: 145
Views: 13071

Re: International investing. A good call by our mentor.

I'm in Sweden and looking at Morningstar I see that Global index funds here has a bit lower P/E (around 17) than our US index funds and local index funds. Is this an argument for holding a global market weight portfolio? No, but these global funds may have a lot of int'l based on the lower P/E. Int...
by pascalwager
Mon Aug 04, 2014 2:24 pm
 
Forum: Investing - Theory, News & General
Topic: International investing. A good call by our mentor.
Replies: 145
Views: 13071

Re: International investing. A good call by our mentor.

I'm in Sweden and looking at Morningstar I see that Global index funds here has a bit lower P/E (around 17) than our US index funds and local index funds. Is this an argument for holding a global market weight portfolio? No, but these global funds may have a lot of int'l based on the lower P/E. Int...
by pascalwager
Sun Aug 03, 2014 4:59 pm
 
Forum: Investing - Theory, News & General
Topic: International investing. A good call by our mentor.
Replies: 145
Views: 13071

Re: International investing. A good call by our mentor.

I'm in Sweden and looking at Morningstar I see that Global index funds here has a bit lower P/E (around 17) than our US index funds and local index funds. Is this an argument for holding a global market weight portfolio? No, but these global funds may have a lot of int'l based on the lower P/E. Int...
by pascalwager
Sat Aug 02, 2014 6:55 pm
 
Forum: Investing - Theory, News & General
Topic: International investing. A good call by our mentor.
Replies: 145
Views: 13071

Re: International investing. A good call by our mentor.

Thanks Taylor,

I've got the 10th edition of Mr. Bogle's book and will re-read that chapter.
by pascalwager
Fri Aug 01, 2014 10:34 pm
 
Forum: Investing - Theory, News & General
Topic: International investing. A good call by our mentor.
Replies: 145
Views: 13071

Re: International investing. A good call by our mentor.

Also, I guess it depends on what one considers "recent". I have not been investing long at all, so I don't know how folks invested in the 1990's or whenever. But, I wonder how much international was included back then? Did that 2004 - 2011 ish time frame have anything to do with the love ...
by pascalwager
Fri Aug 01, 2014 6:22 pm
 
Forum: Investing - Theory, News & General
Topic: International investing. A good call by our mentor.
Replies: 145
Views: 13071

Re: global diversification works in long term

What tends to worry me these days about international equities -- especially in Japan and Europe -- is that their demographics are horrible. The U. S. has the "echo-boom" generation that will be very productive and numerous, and so we should see some continued wealth creation in the U. S....
by pascalwager
Wed Jul 30, 2014 4:02 pm
 
Forum: Investing - Theory, News & General
Topic: global diversification works in long term
Replies: 21
Views: 1989

Re: The emerging market portion of Total International Stock

The EM portion of TISM varies because it's the actual int'l market percentage for EM. By including EM in TISM, the volatility of EM is masked and the investor is less likely to make changes compared with holding EM separately. As I recall, Merriman used to recommend 50:50 domestic:foreign; so 10% EM...
by pascalwager
Wed Jul 30, 2014 2:39 am
 
Forum: Investing - Theory, News & General
Topic: The emerging market portion of Total International Stock
Replies: 5
Views: 1437

Re: Should retirement investors own small/value stocks at al

larryswedroe wrote:fwiw retirees are the very people who should tilt AND lower beta exposure to cut tail risk when it matters most in withdrawal stage
larry


Yes, if you're a retiree with a large FI AA, then why not add more FI and go all the way to the LP?
by pascalwager
Tue Jul 29, 2014 2:57 pm
 
Forum: Investing - Theory, News & General
Topic: Should retirement investors own small/value stocks at all?
Replies: 36
Views: 3212

Re: Should retirement investors own small/value stocks at al

This is from Fama, Cochrane, and Norstad: The average investor works and usually should use total market. If an investor works for a large growth company, then should consider holding SV stocks. A retiree is not average by definition (not part of the work force) and would not be increasing an existi...
by pascalwager
Tue Jul 29, 2014 2:52 pm
 
Forum: Investing - Theory, News & General
Topic: Should retirement investors own small/value stocks at all?
Replies: 36
Views: 3212

Re: Best way to reach initial allocation in a bull market?

by mhalley » Fri Jul 25, 2014 6:31 am The standard boglehead answer is that if you have a desired aa, then go ahead and jump in and buy your mutual funds/etfs. Certainly I can understand how if you have been sitting out this latest run, jumping in right now could be pretty scary. If it were me, I w...
by pascalwager
Tue Jul 29, 2014 2:13 am
 
Forum: Investing - Theory, News & General
Topic: Best way to reach initial allocation in a bull market?
Replies: 28
Views: 2873

Re: Best way to reach initial allocation in a bull market?

by mhalley » Fri Jul 25, 2014 6:31 am The standard boglehead answer is that if you have a desired aa, then go ahead and jump in and buy your mutual funds/etfs. Certainly I can understand how if you have been sitting out this latest run, jumping in right now could be pretty scary. If it were me, I w...
by pascalwager
Mon Jul 28, 2014 3:21 pm
 
Forum: Investing - Theory, News & General
Topic: Best way to reach initial allocation in a bull market?
Replies: 28
Views: 2873
Next

Return to advanced search