Search found 575 matches

by pascalwager
Sat Jul 25, 2015 10:45 pm
Forum: Investing - Theory, News & General
Topic: Transfer maturing Ally Bank IRA CD to new Synchrony Bank IRA CD
Replies: 5
Views: 949

Re: Transfer maturing Ally Bank IRA CD to new Synchrony Bank IRA CD

I had a minor problem at Synchrony trying to stop a CD rollover. A secure email three weeks before maturity, indicating my wishes, was evidently initially overlooked and I discovered that the CD had rolled over into a new CD. I knew I had a 10-day grace period to close the new CD so I wasn't worried...
by pascalwager
Sun Jul 19, 2015 5:12 pm
Forum: Investing - Theory, News & General
Topic: When did you start investing in the Market?
Replies: 60
Views: 3300

Re: When did you start investing in the Market?

Began buying T-Bills in 1980. Continued for next 15 years.
by pascalwager
Thu Jul 16, 2015 4:59 pm
Forum: Investing - Theory, News & General
Topic: Whatever happened to the advocates of CDs vs Bonds?
Replies: 58
Views: 5578

Re: Whatever happened to the advocates of CDs vs Bonds?

The acceptable versus optimal theme was basic to the excellent Long-Term Returns website (by "Mike")--now sadly defunct due to threatened litigation. He recommended the three-fund portfolio (or TWS plus TBM) as the basic investment, but with the option of optimizing the bonds portion--espe...
by pascalwager
Wed Jul 15, 2015 12:41 pm
Forum: Investing - Theory, News & General
Topic: Where do you put your cash?
Replies: 64
Views: 7752

Re: Where do you put your cash?

Synchrony Bank, 1.05%

Bill Bernstein: "Keep a big slug of cash."
by pascalwager
Tue Jul 14, 2015 2:27 pm
Forum: Investing - Theory, News & General
Topic: Whatever happened to the advocates of CDs vs Bonds?
Replies: 58
Views: 5578

Re: Whatever happened to the advocates of CDs vs Bonds?

Kevin, It would be interesting to see your bond fund layout, including types/percentages of intermediate- and long-term bond funds as per your comments below. "Another thing to remember is that you can mix and match CDs and bond funds. Use the higher yielding CDs instead of the short-to-interme...
by pascalwager
Mon Jul 13, 2015 3:19 pm
Forum: Investing - Theory, News & General
Topic: DFA to run ETFs for John Hancock
Replies: 29
Views: 3557

Re: DFA to run ETFs for John Hancock

Wait a minute. 1) How can DFA apply their approach to ETFs? I thought they depended on "patient trading," on being free not to track an index closely, and being able to discourage investors from performance chasing--all of which would be difficult or impossible with an ETF. 2) And, come t...
by pascalwager
Mon Jul 13, 2015 2:32 pm
Forum: Investing - Theory, News & General
Topic: The "No Bonds" portfolio
Replies: 80
Views: 11035

Re: The "No Bonds" portfolio

I believe the article was referring only to bond funds which had a large percentage of illiquid assets, and not bond funds in general. I could only read the first part of the article because the rest required a subscription. What do you mean by bond funds that have a large percent of illiquid asset...
by pascalwager
Mon Jul 13, 2015 2:22 pm
Forum: Investing - Theory, News & General
Topic: DFA to run ETFs for John Hancock
Replies: 29
Views: 3557

Re: DFA to run ETFs for John Hancock

Are the last four ETFs legitimate asset classes based on investment theory or historical returns? This is surprising! Maybe they'll come with a Fama/French disclaimer.
by pascalwager
Mon Jul 13, 2015 1:12 am
Forum: Investing - Theory, News & General
Topic: How do you do the Larry Portfolio?
Replies: 48
Views: 3684

Re: How do you do the Larry Portfolio?

I understand the concept - but I wonder if Larry would have the same Larry allocation for a 30 year old tenured professor as a 65 year old pre-retiree. I guess he might - that's the whole purpose of LP. But I will admit, I do not have the guts to go 30-40% equities with a 30 year runway to retireme...
by pascalwager
Mon Jul 13, 2015 12:05 am
Forum: Investing - Theory, News & General
Topic: The "No Bonds" portfolio
Replies: 80
Views: 11035

Re: The "No Bonds" portfolio

Since bonds are the most common form of fixed income, people in the board, and I'm guilty of this, have sometimes used the word "bonds" when they really mean fixed income. There should be some fixed income in any portfolio (I know this isn't a view shared by all), but bonds aren't the onl...
by pascalwager
Sun Jul 12, 2015 11:19 pm
Forum: Investing - Theory, News & General
Topic: DFA Matrix Book 2015 - interesting country returns
Replies: 10
Views: 1288

Re: DFA Matrix Book 2015 - interesting country returns

Thanks Robert. I've held six of these DFA funds for 20 years--so of especial interest. Over that span I see the size and value premiums in evidence globally, but US soundly beat int'l (50% AA for me).
by pascalwager
Sun Jul 12, 2015 2:35 pm
Forum: Investing - Theory, News & General
Topic: How do you do the Larry Portfolio?
Replies: 48
Views: 3684

Re: How do you do the Larry Portfolio?

I understand the concept - but I wonder if Larry would have the same Larry allocation for a 30 year old tenured professor as a 65 year old pre-retiree. I guess he might - that's the whole purpose of LP. But I will admit, I do not have the guts to go 30-40% equities with a 30 year runway to retireme...
by pascalwager
Fri Jul 10, 2015 11:43 pm
Forum: Investing - Theory, News & General
Topic: "Vanguard's recommended international allocation."
Replies: 63
Views: 6696

Re: "Vanguard's recommended international allocation."

InvestorNewb wrote:I remember at the start of the year, everyone was enthusiastically optimistic about international - including myself. Look how that turned out.


YTD: TSM 2.46%, TISM 4.8%
by pascalwager
Fri Jul 10, 2015 11:18 pm
Forum: Investing - Theory, News & General
Topic: How do you do the Larry Portfolio?
Replies: 48
Views: 3684

Re: How do you do the Larry Portfolio?

The LP includes the DFA Emerging Markets Value Fund which has large, mid, and about 13% small value.
by pascalwager
Tue Jul 07, 2015 8:11 pm
Forum: Investing - Theory, News & General
Topic: "Vanguard's recommended international allocation."
Replies: 63
Views: 6696

Re: "Vanguard's recommended international allocation."

Vanguard's Portfolio Watch Tool recommends between 30 and 50 percent. I have 28% and get flagged with a "Consider" alert to add additional foreign stocks. This is fairly new in that in the more distant past I was not flagged having only 28%. I have learned to ignore Vanguard's alerts. Add...
by pascalwager
Tue Jul 07, 2015 8:16 am
Forum: Investing - Theory, News & General
Topic: "Vanguard's recommended international allocation."
Replies: 63
Views: 6696

Re: "Vanguard's recommended international allocation."

I wonder if Vanguard is headed to a 50/50 allocation over the next few years. The costs continue to decline. They're now recommending "at least" a 40% int'l allocation, so an even higher allocation may be just around the corner. Some DFA advisors were recommending 50% int'l way back in th...
by pascalwager
Tue Jul 07, 2015 8:06 am
Forum: Investing - Theory, News & General
Topic: "Vanguard's recommended international allocation."
Replies: 63
Views: 6696

Re: "Vanguard's recommended international allocation."

abuss368 wrote:I wonder if Vanguard is headed to a 50/50 allocation over the next few years. The costs continue to decline.


They're now recommending "at least" a 40% int'l allocation, so an even higher allocation may be just around the corner.
by pascalwager
Tue Jul 07, 2015 12:27 am
Forum: Personal Consumer Issues
Topic: Vanguard's Security image going away?
Replies: 71
Views: 6963

Re: Vanguard's Security image going away?

Let's say you type in vanguard.com, go there and click on Personal Investors and then create an icon for Personal Investors and install the icon on your Start Screen (Windows 8.1). If you always access Vanguard through that Start Screen icon, is this safe?
by pascalwager
Mon Jul 06, 2015 12:00 pm
Forum: Investing - Theory, News & General
Topic: How aggressive are you in Taxable?
Replies: 37
Views: 3118

Re: How aggressive are you in Taxable?

In investment company taxable I have VG TSM, VG TISM, and five DFA stock funds. My taxable is just as much for retirement as are my IRAs.
by pascalwager
Sat Jul 04, 2015 2:56 pm
Forum: Investing - Theory, News & General
Topic: Morningstar/Kitces -- Social Security as Part of Asset Allocation
Replies: 34
Views: 3926

Re: Morningstar/Kitces -- Social Security as Part of Asset Allocation

I'd like to see one of the advocates (Bogle, Bernstein, Kitces, Ellis) do a book/paper/pamphlet on treating SS/pension as a bond including the details of selecting/using PV formulas, or whatever.
by pascalwager
Thu Jul 02, 2015 8:22 pm
Forum: Investing - Theory, News & General
Topic: What is the Duration of Your Bond Portfolio? And Why?
Replies: 61
Views: 5614

Re: What is the Duration of Your Bond Portfolio? And Why?

I like 4.0 years duration right now. I use the following sources as a guide: -DFA 5-Year Global Bond fund duration (I check this fund periodically--currently 4.0 years) -Larry Swedroe (advises seeking a compromise between inflation risk and reinvestment risk) Larry currently recommends 4 to 5 years ...
by pascalwager
Thu Jun 25, 2015 12:54 am
Forum: Investing - Theory, News & General
Topic: What ratio are you stocks/bonds and how old are you?
Replies: 278
Views: 27822

Re: What ratio are you stocks/bonds and how old are you?

Age 72

Stocks 85%, fixed income 15%

Still living on pension income
by pascalwager
Tue Jun 16, 2015 12:06 pm
Forum: Investing - Theory, News & General
Topic: When does the long term start?
Replies: 26
Views: 3506

Re: When does the long term start?

Eugene Fama said 35 years; and even then, you're not assured of a gain.
by pascalwager
Fri Jun 12, 2015 6:21 pm
Forum: Investing - Theory, News & General
Topic: Intermediate Treasury Bond Fund
Replies: 16
Views: 2319

Re: Intermediate Treasury Bond Fund

I use the DFA 5-Year Global Bond Fund as a guide for duration, also Larry Swedroe's current duration recommendation based on a compromise between inflation risk and reinvestment risk. Currently, this is about 4 years duration for me.
by pascalwager
Thu Jun 11, 2015 6:17 pm
Forum: Investing - Theory, News & General
Topic: Intermediate Treasury Bond Fund
Replies: 16
Views: 2319

Re: Intermediate Treasury Bond Fund

I like a shorter, four-year duration, so I combine the ST and IT term Treasury funds. I stick to Treasuries for fixed income to minimize risk and mainly take my risk in stocks.

David Swensen recommends using a barbell: ST and LT Treasury funds to match the Barclays overall Treasury duration.
by pascalwager
Tue Jun 02, 2015 1:46 pm
Forum: Investing - Theory, News & General
Topic: Conventional Wisdom
Replies: 20
Views: 1723

Re: Conventional Wisdom

I started "investing" in 1980: 100% T-Bills for 15 years. I finally became aware of the deferred comp program and stock fund investing at work, but just kept buying T-Bills until 1995 when a CFP got me into MPT investing. At work (deferred comp) I began buying S&P 500, small cap, and E...
by pascalwager
Thu May 28, 2015 9:13 am
Forum: Investing - Theory, News & General
Topic: Another look at why it's important to globally diversify
Replies: 14
Views: 2468

Re: Another look at why it's important to globally diversify

Japan is a pretty unique place imo. Small island nation with declining birth rate, extremely low immigration, homogenous society, limited acceptance of outside cultures/people, deep seated and ancient cultural norms and systems which can suffocate innovation and outside the box type thinking. I don...
by pascalwager
Wed May 27, 2015 3:53 pm
Forum: Investing - Theory, News & General
Topic: Reducing the Black Swans
Replies: 69
Views: 7499

Re: Reducing the Black Swans

The large end of the barbell is Taleb's greatest concern, the 90% in inflation hedging preservation. This is the portion that may impact his sleep quality and he openly welcomes any new hedging proposals.
by pascalwager
Wed May 27, 2015 1:52 pm
Forum: Investing - Theory, News & General
Topic: Reducing the Black Swans
Replies: 69
Views: 7499

Re: Reducing the Black Swans

Spidey The "Larry Portfolio" is uses the very same principles as Taleb, with most of the investments in basically riskless (or near riskless) investments, and the rest in the highest expected returning equity asset class--small value stocks. Larry Larry, Taleb has changed his thinking on ...
by pascalwager
Tue May 26, 2015 12:24 pm
Forum: Investing - Theory, News & General
Topic: Not your father's Total Bond Market Fund anymore
Replies: 86
Views: 9965

Re: Not your father's Total Bond Market Fund anymore

This is still "your father's TBM" because it still invests in the "total bond market".

Personally, for bonds, I prefer to ignore the market makeup and barbell two funds to provide the duration that I prefer, aiming for a compromise between inflation and reinvestment risks.
by pascalwager
Sat May 23, 2015 3:49 pm
Forum: Investing - Theory, News & General
Topic: Simple (ex: DFA core) Vs Complex (S&D multiple segments)
Replies: 11
Views: 1173

Re: Simple (ex: DFA core) Vs Complex (S&D multiple segments)

I have two self-managed (no advisor) DFA multi-factor accounts (nine equity funds), but I find the DFA core approach very appealing. The core funds may be the DFA response to the Vanguard total market funds and their wonderful simplicity. The DFA growth funds allow a growth tilt for an investor who ...
by pascalwager
Sat May 23, 2015 3:19 pm
Forum: Investing - Theory, News & General
Topic: Why not overweight international?
Replies: 37
Views: 3740

Re: Why not overweight international?

I use 50% int'l as that's the long-term global average and I don't want to overweight (>50% int'l) due to higher int'l fund management transaction costs. Int'l currency fluctuations (and so-called "currency risk") do not influence my int'l AA percentage as I'm a long-term investor and the ...
by pascalwager
Thu May 21, 2015 11:07 am
Forum: Investing - Theory, News & General
Topic: How accurate is Vanguard's 'Portfolio Watch'
Replies: 12
Views: 1858

Re: How accurate is Vanguard's 'Portfolio Watch'

Portfolio Watch is quite useful for checking my portfolio total amount and percentages of US stocks, int'l stocks, bonds, and cash. But there are two defects: -If you have int'l funds without a ticker (e.g., variable annuity), the edit function doesn't include style or size. -Once you set up an acc...
by pascalwager
Thu May 21, 2015 1:59 am
Forum: Investing - Theory, News & General
Topic: Optimal Asset Allocation across Investment Horizons?
Replies: 14
Views: 1584

Re: Optimal Asset Allocation across Investment Horizons?

For inflation protection, I like an equity-heavy portfolio, value-tilted and country diverse, but with annual I Bond purchases and maybe some TIPS. This is basically the DFA portfolio set up for me by an advisor 20 years ago and it's still growing in retirement. Bill Bernstein discusses this kind of...
by pascalwager
Mon May 18, 2015 3:18 am
Forum: Investing - Theory, News & General
Topic: AQR's Cliff Asness: Guest appearance on WealthTrack
Replies: 36
Views: 3128

Re: AQR's Cliff Asness: Guest appearance on WealthTrack

Asness seemed to be saying that 40% bonds was too little to provide diversification and would only provide dilution.
by pascalwager
Sat May 16, 2015 3:08 pm
Forum: Investing - Theory, News & General
Topic: How accurate is Vanguard's 'Portfolio Watch'
Replies: 12
Views: 1858

Re: How accurate is Vanguard's 'Portfolio Watch'

Portfolio Watch is quite useful for checking my portfolio total amount and percentages of US stocks, int'l stocks, bonds, and cash. But there are two defects: -If you have int'l funds without a ticker (e.g., variable annuity), the edit function doesn't include style or size. -Once you set up an acco...
by pascalwager
Fri May 15, 2015 10:41 pm
Forum: Investing - Theory, News & General
Topic: Is monthly rebalancing too frequent?
Replies: 38
Views: 3005

Re: Is monthly rebalancing too frequent?

Bill Bernstein recommends rebalancing every few years. That's what I do, mainly just trying to keep US:int'l at 50:50.
by pascalwager
Wed May 13, 2015 1:27 am
Forum: Investing - Help with Personal Investments
Topic: Total World Stock Index
Replies: 44
Views: 4144

Re: Total World Stock Index

The Vanguard TSM and TISM funds include thousands of companies that are not included in TWS. That's one reason why I don't use the single fund.
by pascalwager
Tue May 12, 2015 12:35 pm
Forum: Investing - Theory, News & General
Topic: Bonds: All Treasuries or Mixture?
Replies: 17
Views: 2010

Re: Bonds: All Treasuries or Mixture?

I like Larry Swedroe's compromise between inflation risk and reinvestment risk : about four years duration. I use 1/2 each Vanguard ST and IT Treasury Funds (Larry recommends a bond ladder.) I avoid credit risk as per Larry and David Swensen (and prefer stocks as per Charles Ellis). I had a DFA ST c...
by pascalwager
Mon May 11, 2015 6:08 pm
Forum: Investing - Theory, News & General
Topic: International - Who really is at 40%
Replies: 93
Views: 7680

Re: International - Who really is at 40%

I'm currently at 48% int'l, but may rebalance back to 50% in the near future. I started out in 1995 with three accounts: 53% int'l, 49% int'l, and 30% int'l. As the third account (deferred comp) grew over the years, the overall int'l AA was reduced from about 52% down to about 44%. Then, a few years...
by pascalwager
Fri May 08, 2015 2:06 pm
Forum: Investing - Theory, News & General
Topic: Round Numbers in Portfolio Allocations
Replies: 49
Views: 3113

Re: Round Numbers in Portfolio Allocations

Bill Bernstein has referred to AAs of less than 5% in the past: precious metals 3% max, HY bonds 2% max. More generally, most of his factor-tilted high bond % portfolios include one or more funds of less than 5%. For example, Sheltered Sam's AA in Investor's Manifesto has seven (7) funds of less tha...
by pascalwager
Fri May 08, 2015 1:32 pm
Forum: Investing - Theory, News & General
Topic: Meeting to improve 403b with our plan administrator
Replies: 13
Views: 1080

Re: Meeting to improve 403b with our plan administrator

We had three plans to choose from--two were run by banks. One of the bank plans did have VG 500, DFA Microcap, and a Barclays Aggregate bond fund with very low ERs, but also had an overall fee. I used the plan run by a large pension organization, which managed it's own index funds: S&P 500 (35 b...
by pascalwager
Thu May 07, 2015 2:47 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Ultra-Short-Term Bond Fund now available
Replies: 49
Views: 7957

Re: Vanguard Ultra-Short-Term Bond Fund now available

lack_ey wrote:What's the other 65% of the allocation? If most or all of that is stocks, I don't think you want the 35% to be pretty much all corporate issues.


Agreed. Maybe start over with a ST and IT Treasury Funds split for a duration of about 4 years.
by pascalwager
Thu May 07, 2015 2:39 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Ultra-Short-Term Bond Fund now available
Replies: 49
Views: 7957

Re: Vanguard Ultra-Short-Term Bond Fund now available

Also, at Synchrony Bank, you can open an IRA MM account at 0.85% APY with FDIC insurance.
by pascalwager
Tue May 05, 2015 11:50 am
Forum: Investing - Theory, News & General
Topic: Who's Buying I Bonds Now?
Replies: 39
Views: 3453

Re: Who's Buying I Bonds Now?

I buy the max every January 1 for some small protection in the event of unexpected inflation.
by pascalwager
Fri Apr 24, 2015 12:55 am
Forum: Investing - Theory, News & General
Topic: Short or Intermediate Bond Funds?
Replies: 2
Views: 513

Re: Short or Intermediate Bond Funds?

You can combine two bond funds to get a duration of about four years. Some consider that to be a good balance between inflation risk and reinvestment risk.
by pascalwager
Thu Apr 23, 2015 11:46 am
Forum: Investing - Theory, News & General
Topic: Age in Bonds Poll
Replies: 72
Views: 4548

Re: Age in Bonds Poll

At age 72 I'm still somewhat in the accumulation stage, but mainly adding to HY savings. My stocks are at about 84% of portfolio.
by pascalwager
Thu Apr 23, 2015 2:02 am
Forum: Investing - Theory, News & General
Topic: "How much of your portfolio is in index funds, and why?"
Replies: 91
Views: 9251

Re: "How much of your portfolio is in index funds, and why?"

My index funds (VG TSM and TISM) comprise 34% of my portfolio. The rest is DFA stock funds, I-Bonds, bond funds, CDs, and cash.
by pascalwager
Wed Apr 22, 2015 12:53 pm
Forum: Investing - Theory, News & General
Topic: David Booth interviews Eugene Fama
Replies: 11
Views: 1998

Re: David Booth interviews Eugene Fama

After re-listening a few times, Fama referred specifically to small company funds as being a problem (time mark 46:11). I liked his comments about paper writing: keep it as simple as possible. Put all of the simple stuff in the beginning and the technical at the end to hold the reader's attention as...
by pascalwager
Mon Apr 20, 2015 9:13 pm
Forum: Investing - Theory, News & General
Topic: David Booth interviews Eugene Fama
Replies: 11
Views: 1998

Re: David Booth interviews Eugene Fama

by robert88 » Mon Apr 20, 2015 6:32 pm pascalwager wrote: Here, Fama says that indexing is stupid. But previously, he has said that the average investor should invest in the total market. The DFA website refers to their Fama-influenced core funds as total market funds, holding all of the companies ...

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