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I think it's a safe bet that interest rates will not stay this low for much longer. It's hard to disagree with the greatest investor in the world. Check out '96 to 2012: http://www.tradingeconomics.com/japan/interest-rate For the investing needs of normal people, there is no best. He is great at bu...

This presumes he knows anything about individual investors or the future of the bond market. A guy who buys companies for a living may not overlap with us much.

It is not optimal, but not terrible either. Consider the PEMDAS of investing: Earn money, save money, achieve tax efficiency, invest properly. Note that we agonize about the last one most of the time, but you should more than likely worry about the first three more. The first two dominate, particula...

casey2012 wrote:Of all the Vanguard funds, it appears that Precious Metals performance has been the poorest over the last couple years so wouldn't this be an opportunity to buy low?

Maybe... consider the fact that this fund once paid out a 15% dividend... the share price right now is not the only thing to look at.

I wonder how the investor comes to ignore all the bad news with the economy, gold prices and reasons for it, politicians arguing on tv, and now hearings on the Benghazi incident all bringing up emotions in the investor`s psyche to force the investor to make a move and ruin a well thought out financ...

I think this is a crazy way to invest, but actually that you are not so crazy. It sounds like you honestly admit that you do not have the nerve to invest in stocks. So, I think you can do less damage by staying out of the market and not trying to invest again. You almost certainly will have to work ...

You can also read most paywall articles online by simply putting a "cache:" in front of the url.

I do 50/50 and age-10 in bonds. Just because it is easy to remember and easy to stick with. I like the idea of investing outside the country because economic problems here hurt me in many other ways, like the risk of employment loss.

.11% mostly because I am stuck with .2 in the intermediate term tax exempt since I cant afford admiral yet. Pretty darn happy with that number overall - 35% is total stock market works wonders.

Be cold and logical when others are emotional.

Getting bored by these warnings. Much more fun to own bonds and watch the money roll in every month.

No, if anything it reinforced my strategy. Granted I was very lucky to have a crash just 1 year after starting my first full time job. So I started investing during an extremely low market. What tests me more are: A.) An extremely strong market like this one and B.) A likely period of poor bond retu...

You should stick to your overall AA. Rebalancing is great, so what I do in my 401K is buy according to my AA and rebalance quarterly. Putting money into a lesser performing asset class does not make sense, because most years that will be bonds, and you will wind up overweight in bonds. Being a contr...

I enjoyed this post, but a person who bases their bond expectations on this time period is asking to be seriously disappointed.

$125 million more than I will I do enjoy reading the individual loan descriptions and such.

For some reason, I moved all of my money out of the market except for a 10% position in EDV (bought at $110, today hurt a little), and now I don't know how and if I should put all the money back in. This will sound harsh, but I doubt you are able to invest in stocks at this point. Unless you are wi...

Although they still create the impression that the only alternatives to bonds are stocks, REITs, high yield bonds, and MLPs. True to them managing billions but not to retail investors. The forbidden words shall not be spoken. tfb, can you speak the forbidden words? :wink: Are you speaking of CDs or...

So you think it's ok for banks to charge people to borrow their money? This is just another way for banks to increase their profits at the expense of the little guy. Well yes it is both legal, ethical, and common for banks to charge. So that hits all of my marks for "ok." The bank earns n...

How big do you want your emergency fund to be? 100,000 sounds a tad big but maybe that is just 16 months for you! Good E fund investments are CDs, bank accounts, ibonds. But for a truly liquid e fund, I like the humble bank account. That is where I keep 12 months. Then there is another 12 months in ...

If you wanted to capture lower prices, you should have been buying last year. Or the year before that, or the year before that. The answer is you buy what you can, when you can. Because the market tends to go up. This is the only timing I would advocate. Since the market is up for the year a decent ...

Although I think this comparison was interesting, I would not expect it to help us much for the next 10 years. Those bonds saw strong cap gains as well as income, and inflation has been rather tame.

Investing money for 1.5 years in the future is easy, it is called a CD. No fees involved. Over 6.5 years, perhaps you want to nibble some short term bonds and try to protect against sever inflation as well, but a raise your rate CD still looks good to me. If anyone takes more risk than this, I would...

richard wrote:

AndrewJackson wrote:If your theory is correct, why don't we have massive inflation today?

Unemployment?

I said we are "in a bubble" as it seems to me we are closest to a bond bubble as we could be. But the only thing is a bond bubble pops to the tune of maybe, at worst, with longer bonds 30% temporary losses or something like that. But losses in bond funds are usually recoverable over the in...

You may want to throw a bit into Ibonds, but for your needs right now you should put your money into CDs and a bank account. That is all you can do. Don't expect your E fund to beat inflation. That is just reality! Most would say that 3 years is excessive but at 31, I want 2 years. I am a conservati...

A savings account at Mango can earn upwards of 4% http://www.bogleheads.org/forum/viewtopic.php?f=2&t=94135 "Why we drop it to 0.10% over $5,000 We believe that the amazing 6.00% is our contribution to improving our customers’ finances, and building a better America. Once customers have sa...

I was shocked to see my purchase go through the next day!

I didn't read anything after the first post, but just scanning the list, SCHWAB S&P INDEX looks like a really good fund. VANGUARD INTERMEDIATE TERM US TREASURY INV may be a decent bond fund depending on your tastes - it is a good moderate to conservative fund that will zig when your SnP index fu...

About 12 months worth in a bank account. I don't think anything else compares to the security (FDIC) and liquidity, linked to ATM card, credit card, checks, etc. I could make another $70 a year by keeping most of this money in a CD at ally but is it really worth it? I also have 10,000 in ibonds, and...

Why do you want the coins, and how many?

lighthouse084 wrote:Here's my strategy:

-Retirement Accounts-
Strategy: All Equities - 60% US and 40% Ex-US. No bonds, ever.

When did you decide the no bonds part? Was it after the market started doing so well?

I would suggest a CD from a bank like Ally.

These advisers will sell you the most profitable fund for them that is close enough to what you need to avoid legal liability, and nothing better. Only by degrees are they better than people who sell trashy CDOs or penny stocks.

Waiting for a RBD . . . . which probably means I won't be able to get VT<$50. Anyway, dry powder is always a good feeling with days like this. The same dry powder that lost 13% this year by not being invested? Or 20% since Nov last year? That would bother me more. What you call "dry powder&quo...

wshang wrote:Waiting for a RBD . . . . which probably means I won't be able to get VT<$50. Anyway, dry powder is always a good feeling with days like this.

The same dry powder that lost 13% this year by not being invested? Or 20% since Nov last year? That would bother me more.

So just to get this straight, you waited until today to buy in, because it was a RBD... Why didn't you just buy it all in November 2012? Not how it works, z3. We're just talking an addition 1-2% or so... I see that isn't how it works, I guess my real question is, isn't this much worse than just inv...

So just to get this straight, you waited until today to buy in, because it was a RBD... Why didn't you just buy it all in November 2012?

VWITX up 1 cent... how sweet it is!

Just to clarify, are you required to wait until the last possible day to do this?

Why? Because you said this: "Alright... after reading thread, I've mostly decided to sell my bonds and move them into stocks." The idea that a single thread could convince you to sell (all?) your bonds and move them into stocks is disturbing. What convinced you to get bonds in the first p...

Not to read too much into the first post, but if you were unable to hold stocks during the last recession, instead selling low in a panic, I think you would be better off staying in cash or short term bonds forever. If you don't have the nerve to hold stocks, don't do it. You will do more harm tryin...

If you are really worried, consider some I bonds instead. A secure investment that can outperform the safer bonds right now, tax deferred no less. Obviously you have been buying into I bonds already, right?

" When yields go back to their historical average of 5.5%" In 10 years? Over the course of 5-7 years? A very likely outcome is extremely slow rate increases, in which case owning bonds works just fine. That 25% drop is just not a likely scenario at all.

Ideally you would already have the money in iBonds

A 12 month CD from Ally does .9 percent right now, I saw there was a savings account offering 1% but it may have a limit to that rate.

I bond gets you about 1.32% if you buy it right now, and I think you get a touch of interest on the compounded money after 6 months also. That is after losing the last quarter for taking the money out, but does not factor in a drop in your rate if inflation changes suddenly. Or you could earn even m...

This is the perfect time to be 100% in stocks, the market has never been higher...

I like to get most items down to +/- $100 per year, and my total annual to +/- $1000. This is generally good enough. Some things I can get down to the dollar, others have to be more general. (Like food is an average of $400 a month but varies widely.) More important to me is net worth increase for t...

Never had an allowance, my parents were willing to buy the things I needed or wanted, and I was willing not to waste their money on junk. Never spoiled by it and gained an appreciation of money all the same. Their trust in me somehow instilled a sense of responsibility.

The conservative choice is to assume you will get no SS and save enough money to live accordingly. When you do get it, a bonus. I am 31 and a do not even consider SS in part of my plan - there is too much political speculation involved and the projections are not reliable enough either way.

Rick, what would you recommend to those that swore off equities and now feel they are missing out? Getting back in the market now could be considered market timing but so would be staying out waiting for it to come down. Most everyone here will agree there's a need to have some exposure to equities...