Search found 31 matches

by bobbobobbo
Fri May 16, 2014 4:16 pm
Forum: Investing - Theory, News & General
Topic: Wealth/asset insurance? Is this a thing?
Replies: 14
Views: 1460

Re: Wealth/asset insurance? Is this a thing?

My good friend recently went to a wealth manager and they highly recommended having his large wealth under some type of insurance protection. Meaning if he were to be sued, all his investments/cash etc could be liable to be sued and they could take everything... Without more it's kind of hard to say what the insurance agent/wealth manager is talking about. It could be as simple as having adequate personal liability and professional liability insurance; good for 99% of us. Or if your friend is in the 1% maybe they were talking about insurance wrappers (e.g. PPLI) or captive insurance companies. Here's one book that's a good primer on the subject. http://www.assetprotectionbook.com/ Oh so personal/professional liability insurance is not the ...
by bobbobobbo
Thu May 15, 2014 7:12 pm
Forum: Investing - Theory, News & General
Topic: Wealth/asset insurance? Is this a thing?
Replies: 14
Views: 1460

Re: Wealth/asset insurance? Is this a thing?

Ahhh got it. So a basic umbrella policy. I didn't realize it would cover if I get sued, etc.
I see no reason not to have one, will be doing that ASAP.

Thank you all
by bobbobobbo
Thu May 15, 2014 5:21 pm
Forum: Investing - Theory, News & General
Topic: Wealth/asset insurance? Is this a thing?
Replies: 14
Views: 1460

Wealth/asset insurance? Is this a thing?

My good friend recently went to a wealth manager and they highly recommended having his large wealth under some type of insurance protection. Meaning if he were to be sued, all his investments/cash etc could be liable to be sued and they could take everything... (I'm guessing if the sued amount goes past standard insurance of property/car/etc depending on incident)

Is this a real thing? Now I'm quite concerned.. I have all my wealth in a stock portfolio and real estate. No trusts or "insurance" of sorts? Could I get sued and lose everything? Thoughts?
by bobbobobbo
Sat Jan 04, 2014 12:30 am
Forum: Personal Investments
Topic: Should I opt out of my bond allocation?
Replies: 47
Views: 6747

Re: Should I opt out of my bond allocation?

I sincerely value all the responses given and appreciate this great community.

I suppose I have another point/question then. If one were to gain steady increasing fixed income from another source, (job/tenants/etc) should one essentially treat that on similar principles as to a bond allocation? Where would external fixed income come into play? If you make ~X% of your net worth each year in FI, shouldn't that be factored in?
by bobbobobbo
Thu Jan 02, 2014 9:49 pm
Forum: Personal Investments
Topic: Should I opt out of my bond allocation?
Replies: 47
Views: 6747

Re: Should I opt out of my bond allocation?

Thank you for the informative responses! I certainly realize this is a poor time to ask this question as stocks have been doing particularly well. The basis of my thoughts are that bonds themselves seem to provide minimal flow to an overall portfolio. Neither positive nor negative. If stocks crash and I'm allocated in bonds they should go up some and I won't lose as much overall, and it won't take me as long to climb. Yet I feel that is largely due to the fact that an allocation wasn't involved with a risky investment that happened to be on a downslope. I'm not arguing either way, and it certainly provides safety and a cushion towards one's total investments and they prove to slowly gain over time. Yet the "need" to allocate to bo...
by bobbobobbo
Thu Jan 02, 2014 8:46 pm
Forum: Personal Investments
Topic: Should I opt out of my bond allocation?
Replies: 47
Views: 6747

Re: Should I opt out of my bond allocation?

livesoft wrote:If every year was like 2013, then opting out of bonds would be fantastic and the way to go. However, ___________.

Fill in the blank for yourself.
I get that part. Yet even when the stocks tank, bonds don't seem to go up by that significant of an amount...

Having 20% under my mattress would just as well reduce the total loss on my portfolio during a crash.


Further I get bonds at an older age for other reasons, yet at my age, are they nearly as vital?
by bobbobobbo
Thu Jan 02, 2014 8:38 pm
Forum: Personal Investments
Topic: Should I opt out of my bond allocation?
Replies: 47
Views: 6747

Should I opt out of my bond allocation?

I am 26 years old and have invested 60/20/20 (Total Index/Total International Index/Total Bond) for the last year and a half now. Very satisfied with the simplified portfolio yet I have been conflicted on my bond ratio from the very beginning. My bond allocation has done nothing inception. (I understand stocks have gone up, yet even when they tank, bonds seem to stay fairly flat) I still have yet to fully grasp the reason for bond allocation other than the safety net it provides... It proves to give a slow steady positive return, as well when stocks are down the bonds travel up slightly. It's only "diversification" standpoint seems to truly be a way of putting a portion of total assets in less risky/volatile investments, correct? ...
by bobbobobbo
Thu Aug 08, 2013 7:54 pm
Forum: Personal Investments
Topic: Pledged asset line vs margin loan
Replies: 5
Views: 13302

Re: Pledged asset line vs margin loan

playtothebeat wrote:
bobbobobbo wrote: There are no fees and the interest rate is a fixed 3.4% + 90 Day Libor for 5 years.
When you say it's fixed at 3.4% + 90 day libor.. do you mean for the entire 5 years, it's fixed at 3.4% + whatever 90 Day libor is at the time you close the loan? Or is it 90 day libor, resetting every 90 days? (I'm guessing that's what it actually is) The first would make it fixed. The latter is variable.
I was under the assumption it was what whatever it is at the time of close. Yet it would likely be resetting, which would make more sense. So variable, yet libor based.
by bobbobobbo
Thu Aug 08, 2013 5:57 pm
Forum: Personal Investments
Topic: Pledged asset line vs margin loan
Replies: 5
Views: 13302

Re: Pledged asset line vs margin loan

Thank you for the helpful responses thus far. I will certainly look into the PAL (Schwab).

There are no fees and the interest rate is a fixed 3.4% + 90 Day Libor for 5 years. Seems like a great way to go for those fortunate enough to be able to take advantage of it. My main concern was just that 5 year term number.. though I suppose it may be able to be extended.
by bobbobobbo
Thu Aug 08, 2013 4:29 pm
Forum: Personal Investments
Topic: Pledged asset line vs margin loan
Replies: 5
Views: 13302

Pledged asset line vs margin loan

I am soon to purchase a commercial property and do not want to liquidate securities. I'm entertaining the two options between a pledged asset line and a margin loan. - The pledged asset line is a 5 year duration (with possible extension). It carries around a 3.5% rate. - The margin loan carries around a 6.75% rate and can be used indefinitely. Both behave similar to a revolving line of credit, money in and out, with my portfolio as the collateral. In either case I have a significant cushion regarding collateral/margin calls. I will be cutting it close to pay back the line within 5 years. Yet it is possible. Though is the pledged asset that the better choice? 3.5% total due at 5 years vs 6.75% for X years. I'm having a hard time wrapping my ...
by bobbobobbo
Wed Mar 13, 2013 1:41 pm
Forum: Investing - Theory, News & General
Topic: Is now a poor time to invest?
Replies: 55
Views: 5575

Re: Is now a poor time to invest?

I appreciate all the detailed responses! Instead of quoting everyone, I'll give a little further about myself. I am 25 years old, planning to invest the sum for 30+ years. I feel my 80/20 allocation is perfect (if anything I'd reduce bonds), I will not change from it anytime soon and continue to re-allocate properly. I do not need a psychological benefit, I will set and forget, I'm comfortable whatever the market does, I just need the "that was the most educated thing to do". The extra noise of others means nothing to me. I'm more stating seeing as equities are at an all time high, how would you guys go about inputting money into investing for the (technical) first time right now. Just gathering personal opinions of those with mor...
by bobbobobbo
Wed Mar 13, 2013 6:22 am
Forum: Investing - Theory, News & General
Topic: Is now a poor time to invest?
Replies: 55
Views: 5575

Re: Is now a poor time to invest?

The point is you have no idea whether this is the end of a bull market or the beginning of one. If you examine the Dow over the past 15 years, it looks more like a secular bear market rather than a bull market. That's why I think half in now and cost-average the rest strikes a good balance. We cannot predict the future of the markets - especially in the short term. ^^^ That's good. The OP needs to keep in mind that you'll find experts to agree with whatever notion you want confirmed. You think equities are wildly overvalued? There's an expert for you. You think massive inflation will decimate bond values? There's an expert for you. You believe stocks are fairly valued and a good long term investment? There's an expert for you. And on and o...
by bobbobobbo
Wed Mar 13, 2013 5:59 am
Forum: Investing - Theory, News & General
Topic: Is now a poor time to invest?
Replies: 55
Views: 5575

Re: Is now a poor time to invest?

I only meant to suggest that you aren't the only one conflicted about this. No apology needed. Lump sum is probably better, on average. But whether it will be better now is anyone's guess. If the market tanks, you will lose more money, if it goes up and never falls you will make more. I don't quite understand the concern about the adjusted basis. If the money in cash now, the basis doesn't matter anymore. If it's invested, it still has it's basis, whether you sell now or 10 years from now, right? What is your concern about investing now? Fear of loss or desire for the greatest gain? If you don't fear loss, then lump sum. If you do, DCA. If you want the greatest gain, you will spend a lot of time and effort chasing it, likely to no avail. M...
by bobbobobbo
Wed Mar 13, 2013 5:48 am
Forum: Investing - Theory, News & General
Topic: Is now a poor time to invest?
Replies: 55
Views: 5575

Re: Is now a poor time to invest?

If you are concerned about the markets, put half in now and dollar cost average the rest over time. There are then 2 possible outcomes: 1.) Market goes up in the near future, and you pat yourself on the back for having something in there to take advantage of it. 2.) Market goes down in the near future, and you pat yourself on the back for having some "dry powder" to pick-up shares at a reduced price. I may look into something of this nature.. Although it may help me psychologically, if the market suddenly tanks, research seems to show a lump sum investment should perform better. No!!! That's not what research shows. Research shows that at any point in time, the probability is greater that the market will go higher versus lower. B...
by bobbobobbo
Wed Mar 13, 2013 5:24 am
Forum: Investing - Theory, News & General
Topic: Is now a poor time to invest?
Replies: 55
Views: 5575

Re: Is now a poor time to invest?

First off I apologize, this is a common topic. I searched, but didn't have the right knowledge of key words. DCA was a huge one. I shall leave this thread up anyway. The problem is you won't know whether those articles are correct until two or three years from now. If they are wrong, you'll be in the same exact dilemna in three years. That makes a lot of sense. I have no problem tossing everything in and staying rock solid from here on out. Even if it drops, I would have minimal regret. This lump sum is from an inheritance, already riding the waves of the market for many years. I just have the benefit of a brand new cost basis. Hence the "lump sum". It's just hard when you read almost "facts" that the market is cyclical ...
by bobbobobbo
Wed Mar 13, 2013 4:52 am
Forum: Investing - Theory, News & General
Topic: Is now a poor time to invest?
Replies: 55
Views: 5575

Is now a poor time to invest?

I have my 3 fund portfolio set up. Allocated properly along with 20% bonds. Given the current high total values in equities, it would only make sense it would drop at some point in the near future? (as most claim) Making it a good time to invest at that point? I understand one should never attempt to time the market, or use prior history. Yet considering this will be single investment timing, held over a long period of time, perhaps I should wait until a significant downturn? Some of many, claiming end of the bull.. http://money.cnn.com/2013/01/25/investing/bull-market-stocks/index.html http://seekingalpha.com/article/1266721-the-end-is-near-why-the-bull-market-is-finished?source=google_news Or should I just invest now and forget about this...
by bobbobobbo
Mon Mar 11, 2013 2:30 pm
Forum: Personal Investments
Topic: Bond funds? More risk vs stocks, given current Fed policy?
Replies: 19
Views: 3109

Re: Bond funds? More risk vs stocks, given current Fed poli

Chan_va wrote:
You are correct. My point was more to do with the option to re balance and lower volatility with nearly the same return with a small bond component.
I believe the idea is that you can achieve near identical returns, while certain to reduce volatility. Since we don't really know what the future holds.

Image
by bobbobobbo
Mon Mar 11, 2013 3:51 am
Forum: Personal Investments
Topic: Bond funds? More risk vs stocks, given current Fed policy?
Replies: 19
Views: 3109

Re: Bond funds? More risk vs stocks, given current Fed poli

To the OP, I'd like to hear what you decided with your portfolio? I've had similar notions myself and have done quite a bit of research regarding bond allocation.
I'm 25 years old, currently restructured with a 3 fund portfolio at 20% bonds. My assets came through an inheritance and my father likely had very similar values as you, same age, and left me a portfolio with 0% bonds. I found your posts very intriguing..

Also wouldn't mind hearing wise words from other members. This thread has been a great read for me.
by bobbobobbo
Fri Mar 08, 2013 5:02 am
Forum: Personal Investments
Topic: Schwab bond funds?
Replies: 15
Views: 3463

Re: Schwab bond funds?

We are in a similar boat. I also bank with Schwab, I'm 25 years old, looking to allocate 20% to bonds.

After much research I went with Schwabs total market, but Vanguards International and Bond funds, all still held at Schwab.
60/20/20 SWTSX/VGTSX/VBMFX

Very satisfied.
by bobbobobbo
Thu Mar 07, 2013 4:36 am
Forum: Personal Investments
Topic: Using Schwab total index for the three fund portfolio?
Replies: 13
Views: 5468

Re: Using Schwab total index for the three fund portfolio?

I knew Schwabs Bond tracking was poor. As well, their International is also iffy. Their total market is almost identical. Each achieving high ratings via Morningstar. Total Market - VTSMX vs SWTSX: http://stockcharts.com/freecharts/perf.php?vtsmx%2C%20swtsx International - SWISX vs VGTSX: http://stockcharts.com/freecharts/perf.php?SWISX%2CVGTSX Bonds - VBMFX vs SWLBX: http://stockcharts.com/freecharts/perf.php?VBMFX%2CSWLBX Are you aware there is a $76 commission to buy Vanguard (or any non-OneSource) mutual funds at Schwab? I was unaware... though Schwab does not charge commission to re-invest dividends, which I plan on doing. I think I'm getting too much into things... I suppose I need to go back to what Taylor said and not focus on ER wi...
by bobbobobbo
Wed Mar 06, 2013 11:09 pm
Forum: Personal Investments
Topic: Using Schwab total index for the three fund portfolio?
Replies: 13
Views: 5468

Re: Using Schwab total index for the three fund portfolio?

Let me be clear, all of my accounts are currently held at Schwab. I plan on staying there.

I'm looking at index funds over ETFs and with Schwab I do not qualify for Admiral shares. It sounds like VTSMX is still a better choice over SWTSX, even with the slightly reduced ER.

I plan on using Vanguard International and Bond..
"The Schwab International Index is based on the MSCI EAFE index, which does not include emerging market stocks, Canadian stocks, and which has minimal exposure to international small cap stocks. Also, note should be taken that the Schwab Total Bond Market fund has experienced negative tracking error in relation to the Barclays Capital Aggregate Index"
by bobbobobbo
Wed Mar 06, 2013 4:27 pm
Forum: Personal Investments
Topic: Using Schwab total index for the three fund portfolio?
Replies: 13
Views: 5468

Re: Using Schwab total index for the three fund portfolio?

I agree with Taylor - the difference is so small and both costs so low that just go with what is more convenient. If you're already holding international and bonds at Vanguard, seems silly to hold a Schwab account just for total stock market. Also, while Schwab's fund may be 0.09% cheaper (which is insignificant in my mind to begin with), I believe it has had a larger tracking error than Vanguard Total Stock Market, so the Schwab fund has historically NOT saved money (although that can change). At these levels, tracking error can often be larger than the expense ratio. I would end up holding all my accounts at Schwab regardless, as that's the firm I'd like to stay at for now. I think I may end up going with Vanguard just for simplicity and...
by bobbobobbo
Wed Mar 06, 2013 4:03 pm
Forum: Personal Investments
Topic: Using Schwab total index for the three fund portfolio?
Replies: 13
Views: 5468

Re: Using Schwab total index for the three fund portfolio?

harikaried wrote: Roth: 8% US Market
Traditional: 20% Bond, 3% US Market
Brokerage: 20% International, 49% US Market
I've been researching account location strategy, this is precisely what I plan on doing.


My lasting decisions remain if I should allocate to TIPS(VIPSX) and whether to go with Schwab or Vanguard total market. I was planning to hold all Vanguard, yet I suppose convenience would be Scwhab, but if they are virtually the same... no reason not to gain the .09%...

Still researching..
by bobbobobbo
Wed Mar 06, 2013 3:26 pm
Forum: Personal Investments
Topic: Using Schwab total index for the three fund portfolio?
Replies: 13
Views: 5468

Using Schwab total index for the three fund portfolio?

I have sold off my previous investments and ready to embark upon the three fund portfolio. I am 25 years old with a sizeable inheritance. I plan on doing 60/20/20 Total/International/Bonds (perhaps bonds half split to TIPS..?) My main question is regarding the total index. I currently use Schwab. I enjoy their online platform and they are nearby, as well as a aid from a helpful gentleman that works on salary. SWTSX has half the ER as VTSMX, yet I can't seem to find all that much info on the comparison, other than "they're practically the same". Which one should I go for? I plan on having this sit for a long time... I understand I lose out on Admiral shares by staying at Schwab. .09% SWTSX vs .18% VTSMX (International and Bond mark...
by bobbobobbo
Thu Feb 28, 2013 10:19 pm
Forum: Personal Investments
Topic: Recent inheritance - 100% in VFINX right now? (S&P500)
Replies: 39
Views: 4744

Re: Recent inheritance - 100% in VFINX right now? (S&P500)

bobbo (OP), Sorry to hear of your father's passing. You mentioned "large sum" but didn't mention the split between 50 Stocks / Real Estate. Regardless, you are 25yo and these 50 stocks may seem quite large to you at the moment but in 40 years... likely not. Don't rush to sell anything that your father left for you. What is MOST important going forward is your new contributions and how you diversify the total portfolio. 2¢ Does the split between stocks/real estate have some bearing on account allocation? I'm still quite troubled trying to find the right amounts (also considering my age) etc. My father had 0% bond allocation. All stocks, with 1/3 international. I ordered and just finished reading the Bogleheads book... yet still no...
by bobbobobbo
Wed Feb 27, 2013 1:16 am
Forum: Personal Investments
Topic: Recent inheritance - 100% in VFINX right now? (S&P500)
Replies: 39
Views: 4744

Re: Recent inheritance - 100% in VFINX right now? (S&P500)

70/20/10 would be normal but more aggressive at a younger age? Is that backwards? Limited fixed income I thought was more acceptable at a younger age, as this money will not be needed anytime soon. As well I understand International should be placed in my taxable account. The only conflictual point I see is regarding my Roth. If it grows tax free, should I still keep Bonds within it, or go for equities that may grow as nydad has claimed.
by bobbobobbo
Tue Feb 26, 2013 9:22 pm
Forum: Personal Investments
Topic: Recent inheritance - 100% in VFINX right now? (S&P500)
Replies: 39
Views: 4744

Re: Recent inheritance - 100% in VFINX right now? (S&P500)

Thank you all so much. This is a great forum and a great group! Had no idea this forum shared the similar notions I've had, just didn't have the knowledge to express.

After determining allocation, it seems my account % values are not far off at all from what I'd be looking to do with the 3 Funds. Obviously they will change over the years as I re-allocate.

Current Account Allocation:
Roth IRA 8% [..Bonds VBMFX]
Traditional IRA 23% [..International VGTSX]
Brokerage 69% [..Total VTSMX]

Would this work? Or would it be advised to proportionally split International/Total stocks within my Traditional IRA and Brokerage respectively.
by bobbobobbo
Tue Feb 26, 2013 2:03 pm
Forum: Personal Investments
Topic: Recent inheritance - 100% in VFINX right now? (S&P500)
Replies: 39
Views: 4744

Re: Recent inheritance - 100% in VFINX right now? (S&P500)

Thank you so much for all the responses. They were very thorough and extremely helpful. It looks as if I've come here with the generally the right mindset. I am willing to continue to be exposed to the market. Currently looking to transfer investments into the Vanguard Total Stock Market vs Vanguard 500 index. I will allocate properly regarding tax options, as well mindful of capital gains. My remaining questions are regarding Total International and Total Bond investment, as I found the 3 fund portfolio very intriguing and simplistic. As many of you have recommended. Should I invest in the International Index? Many even in this thread claim investing in the International index is not needed. Jack Bogle seems to shy away from it in a way......
by bobbobobbo
Mon Feb 25, 2013 9:12 pm
Forum: Personal Investments
Topic: Recent inheritance - 100% in VFINX right now? (S&P500)
Replies: 39
Views: 4744

Re: Recent inheritance - 100% in VFINX right now? (S&P500)

I will definitely do more research. As well yes it's astonishing how many people have investment advice with ulterior motives. I feel competent in myself with the right direction, I was just looking for something straight forward, that I could leave untouched for an extended period of time. Further I apologize for the vague responses. My current income exceeds my expenses and I do not plan on living off investment income at this time. I do not have specific goals, yet I would like to maximize the value of the investment, held for the next 10+ years. I did not speak correctly when I claimed 100%. Total net worth, around 30% in real estate in the form of apartment complexes, as well as 8% in liquid form. (I understand in time I will become le...
by bobbobobbo
Mon Feb 25, 2013 7:30 pm
Forum: Personal Investments
Topic: Recent inheritance - 100% in VFINX right now? (S&P500)
Replies: 39
Views: 4744

Re: Recent inheritance - 100% in VFINX right now? (S&P500)

Thank you for your answers and kind words. The cost basis is the value when I inherited, correct. The taxes paid will only be on the capital gains. I'd rather bite the bullet and do it now rather than down the road. It doesn't seem feasible to keep my father's stocks as my current setup is quite risky with individually picked, unmanaged stocks. (I will consider the 60/40 portfolio. Seems like a straightforward plan of action, I have been recommended it before.) I am not completely unafraid of risk... yet at 25 years old I am quite young, fortunate enough to consider more risk. I have set an amount aside for further education/housing etc. My portfolio is purely for long term investment, it will not be touched for some time. Full allocation i...
by bobbobobbo
Mon Feb 25, 2013 6:47 pm
Forum: Personal Investments
Topic: Recent inheritance - 100% in VFINX right now? (S&P500)
Replies: 39
Views: 4744

Recent inheritance - 100% in VFINX right now? (S&P500)

I have recently inherited a large sum of money from my father in the form of stocks and real estate. Stock-wise, he managed his own portfolio, with around 50 stocks, mainly large cap. No bonds, <5% cash. Very aggressive portfolio. I have left it since last July, in which it has grown a considerable amount. I have been hesitant to touch them. I am certain I do not want to pay someone for active management. I am mid twenties and would like to invest for the long term, risk is not as much of a concern. I have heard anything and everything from many different sources. The one I like the most is Buffett's advice of investing everything in a low cost index fund, and letting it sit. Then perhaps taking 10% and putting it where I would like. Is thi...