Search found 1303 matches
- Tue Jul 24, 2012 10:15 pm
- Forum: Personal Investments
- Topic: Portfolio Help, Poor Options
- Replies: 5
- Views: 943
Re: Portfolio Help, Poor Options
The JP Morgan smart retirement is the best choice of a poor bunch. It will be the most diversified and it's one of the lower cost options amongst a collection of high cost choices. If you look at what it holds, the 40 most likely is closest to what you say you want. Target Retirement funds consist of several funds with an allocation that will change slightly as you age. By that I mean the bond component will go up by a percentage or two a year. Dave
- Tue Jul 24, 2012 10:01 pm
- Forum: Personal Investments
- Topic: Advice
- Replies: 8
- Views: 1531
Re: Advice
If I recall correctly SIMPLE's are employer sponsored. That means you cant just switch them like a traditional IRA. So unless you can get the employer to go along your stuck with their choice. There is a section in the Wiki this site about how to talk to your employer or HR person about switching to Vanguard or comparable. Dave
- Sat Jul 21, 2012 11:14 am
- Forum: Personal Investments
- Topic: help identifying investments from hell
- Replies: 47
- Views: 6286
Re: help identifying investments from hell
Larry is always down on Preferred stock. My list would be topped by undeveloped land. Dave
- Fri Jul 20, 2012 8:32 pm
- Forum: Personal Investments
- Topic: Investment advice
- Replies: 7
- Views: 1095
Re: Investment advice
Martin: Why do you specify an allocation of 70% Growth/Value? That is unusual. Normally the issue is whether you buy total stock market which is 50/50 growth value, or whether to tilt a bit to small stocks and value stocks. The latter historically have a higher return with greater volatility. The other thing you don't seem to have considered is an allocation to international stocks. You could easily come close to the allocation I think you have in mind by buying target retirement 2040 in the retirement accounts and put the small amount of total international or total stock market - both are very tax efficient - in your taxable account. That could tide you over while you read a few books that you can either purchase or get in the library. Re...
- Mon Jul 16, 2012 8:46 am
- Forum: Personal Investments
- Topic: Which value funds/ETFs for taxable?
- Replies: 10
- Views: 1116
Re: Which value funds/ETFs for taxable?
Like many I don't have enough room in tax free for small value. I use VBR for US and VSS for international small. I rejected using the 600 S & P small value fund because at the time it did not have that low a book to market, I.E. was not very "valuey," and it is like an actively managed fund because it's holdings are picked by a committee, also owning a large number of small stocks is beneficial since it increases the likely hood of getting the ones that take off. That is why small indexes have so many components, e.g. Russel 2000, MSCI 1750. There is no low cost international small value fund. So I just do without. Some use Wisdomtree's international dividend weighted small fund DLS. Run a comparison graph of DLS and VSS and ...
- Sun Jul 15, 2012 11:23 pm
- Forum: Personal Investments
- Topic: Help with Portfolio
- Replies: 9
- Views: 928
Re: Help with Portfolio
Don't walk, run from the high expense of the Merrill SIMPLEs. If you call the Vanguard 800 number they can explain that picking the funds in your SIMPLE is not self management. They will send you the forms to roll out of Merrill. I strongly disagree with your boycotting International/Emerging markets. One of the principles of modern theory is that markets have priced in the news from around the world, which includes the news from Europe. If you look you will see P/E's abroad are lower, and this is especially true in the large value area. By market cap. the US is 45% of world equity markets, not investing in the other 55% is a significant underweight. I am about twice your age. I remember the 1980's when international stocks outperformed the...
- Wed Jul 04, 2012 7:35 pm
- Forum: Personal Finance (Not Investing)
- Topic: refi - no more free lunch?
- Replies: 12
- Views: 2931
Re: refi - no more free lunch?
So see how you do at one of those internet banks. Maybe you don't need a "program." I had good luck with www.farmbureaubank.com Dave
- Tue Jul 03, 2012 7:56 pm
- Forum: Investing - Theory, News & General
- Topic: Utility Stocks in Current Income Portfolio
- Replies: 21
- Views: 3319
Re: Utility Stocks in Current Income Portfolio
Take a look at XLU (Utility ETF). Yes, it is an equity, but it does yield well, and long term it ain't as volatile as the above post implies. I agree that preferred stocks are not for the average investor. Dave
- Mon Jul 02, 2012 5:43 pm
- Forum: Personal Investments
- Topic: Portfolio advice for New Business Owner
- Replies: 4
- Views: 689
Re: Portfolio advice for New Business Owner
Take a look at an SIMPLE IRA. if you go too www.irs.gov and run it and the other things through a search you can learn the differences and advantages. As for funds, until you have some bucks, just invest in STAR, or Target Retirement. Note the different minimum initial contributions. Dave
- Wed Jun 27, 2012 10:37 am
- Forum: Investing - Theory, News & General
- Topic: indexing is for those who aren't smart enough
- Replies: 27
- Views: 4072
Re: indexing is for those who aren't smart enough
I have been proud of my suggestion that "dumb gamblers need index poker." There is a minor error in the article. The first index fund was established by Wells Fargo. I think it was a 500 index, but memory may fail. Bogle is certainly the first person to base a career on indexed products. Dave
- Wed Jun 27, 2012 1:20 am
- Forum: Personal Investments
- Topic: 24 years old, seeking advice on portfolio
- Replies: 10
- Views: 1123
Re: 24 years old, seeking advice on portfolio
I would slow down on the housing. I.E. try to skip the condo stage and get a house later. Condos tend to be poor investments and occasionally you can get trapped in them by market declines, limits to financing. I think the desired portfolio is fine and much simpler than the accumulation you have now. When you own a lot of funds you tend to mimic a total market fund in a very cost inefficient manner. Dave
- Wed Jun 27, 2012 1:04 am
- Forum: Personal Investments
- Topic: First "portfolio", your 2 cents?
- Replies: 11
- Views: 1707
Re: First "portfolio", your 2 cents?
Sticking with the life strategy is fine for now. Eventually your rate of investing will result in having to put tax inefficient assets in tax free, and tax efficient assets in taxable. At that point you will have to split things up. When you do the funds that are components of the life strategy or target retirement funds are all excellent choices for their asset class. In order of tax efficiency worst to best, taxable bonds, REIT, Small Value, Large Value, Large Blend, International/Emerging (due to the foreign tax credit.) So if you look at the components those funds, and then figure out the percentages to assign to each based on your comfort level, and amounts of space available in tax free, then your there. The earlier L. Swedroe and Wil...
- Fri Jun 22, 2012 9:05 pm
- Forum: Personal Finance (Not Investing)
- Topic: Travelers Checks
- Replies: 40
- Views: 4069
Re: Travelers Checks
I rode a motorcycle down to South America last fall. Before I went I thought I might take some travelers checks. I was flat out told not to bother because they would not get accepted there. My impression is that was basically true. The locals in those countries and Central America use bank ATM's and pay for most everything in cash. I had two ATM's and 4 credit cards. I always could withdraw money from bank ATM's, even in the boonies. Dave
- Wed Jun 20, 2012 2:26 am
- Forum: Personal Investments
- Topic: Long Term cash awards
- Replies: 3
- Views: 720
Re: Long Term cash awards
I don't understand your question. Are you saying you get $15,000 per year and can invest it? If so take a look at some of the sample portfolios in the wiki this site. Dave
- Wed May 23, 2012 2:10 am
- Forum: Investing - Theory, News & General
- Topic: so what if i wanted to learn day trading
- Replies: 103
- Views: 10696
Re: so what if i wanted to learn day trading
I am a Bankruptcy lawyer. The only day traders I have ever met became clients. All of em. Dave
- Tue May 22, 2012 11:34 am
- Forum: Personal Investments
- Topic: What to do with about $25K?
- Replies: 8
- Views: 1859
Re: What to do with about $25K?
Doesn't VTSAX include small-caps? Why would you suggest overweighting small caps? Thanks! This goes to the heart of the difference between the total market people and the slicers and dicers (now called tilters). The total market people say buy the whole market and keep costs low and over a long time you will beat active management because active managers eventually under perform, and their costs are always higher. The tilters say in addition to holding the total market, buy into riskier classes that have low correlations and your returns will be higher -because you take on more risk - but volatility will stay low because of the negative correlation. They overweight small value, REIT, and international/emerging small, also bonds have a low ...
- Tue May 22, 2012 7:50 am
- Forum: Personal Finance (Not Investing)
- Topic: asset protection for doctors
- Replies: 51
- Views: 6842
Re: asset protection for doctors
I remember 30 years ago in Anchorage, there was a Doctor who was so paranoid about lawsuits that he put everything in his wife's name. She took off down the Alcan Hwy with it all shortly thereafter. Dave
- Mon May 21, 2012 11:15 pm
- Forum: Personal Investments
- Topic: portfolio review-thank you for the help
- Replies: 5
- Views: 888
Re: portfolio review-thank you for the help
I does look good. There are some areas that I would do differently. 1) Your bonds are almost all from one issuer, the US Treasury, and your even considering adding to that by switching to I-bonds. I watched the debt limit fight in Congress the last time around, and decided to diversify away from Treasury debt. When you consider that if Congress decides not to pay you, the Treasury has to default, you might want to diversify a bit. Without adding much risk you might want to substitute Vanguard Total Bond for the Intermediate Treasury fund. Or going a small step up the risk scale you could add Vanguard Intermediate Term Investment Grade which holds mostly AAA and AA corporate debt. You can also diversify away from the dollar a bit with WIP - ...
- Mon May 21, 2012 9:14 am
- Forum: Personal Finance (Not Investing)
- Topic: Buying a condo
- Replies: 8
- Views: 2373
Re: Buying a condo
The deal stinks. 1) The problem with buying condos as an investment is appreciation is limited. If prices go up substantially a developer builds a bunch of them nearby and they get the buyers. 2) Current lending guidelines limit the number of rentals. Your 40% guideline seems high to me. The figure used to be lower. 3) Theoretically you can ask for a waiver, but you usually only get it for a bank owned foreclosed property. In other words when you want to sell there will not be financing. 4) Because of this financing problem, excess numbers of renters becomes self perpetuating. 5) So you end up owning a piece of unmarketable real estate that deteriorates. The owners want to keep HOA dues down because they can not be rented profitably, and ma...
- Sun May 20, 2012 10:15 pm
- Forum: Personal Investments
- Topic: What to do with about $25K?
- Replies: 8
- Views: 1859
Re: What to do with about $25K?
If it was me I would put it to work. Maybe in a small cap fund to complement your taxable holdings. VSS - small international and VBR Vanguard small value come to mind and weight them the same as your current domestic/international ratio. Small caps are more volatile, but your young and can hold them through the occasional bad years. Your also a bit short on bonds. So maybe you want to add a bond fund like Total Bond Market to tax free with new contributions going there till you have 20% in bonds. You want to have bonds not so much for their coupon, but to stabilize a portfolio. I am extremely negative on precious metals. If you really want to have a weight in something like that, you should do it in equities of mining companies which at le...
- Thu May 17, 2012 10:55 pm
- Forum: Investing - Theory, News & General
- Topic: Limitation of "general obligation" muni bonds
- Replies: 4
- Views: 822
Re: Limitation of "general obligation" muni bonds
This is another article that confirms that one should not credit the WSJ since it got bought out by Fox. It is an actual fact that no state has defaulted on a GO bond since Arkansas in the dust bowl era. The default rate on muni bonds is almost non existent. But Fox picks the few defaults that have occurred as if they are routine. Defaults in this area have been confined to a few wacko municipalities and revenue bonds. Dave
- Tue May 15, 2012 8:00 am
- Forum: Investing - Theory, News & General
- Topic: Be Wary of Fast Growing Companies
- Replies: 13
- Views: 1332
Re: Be Wary of Fast Growing Companies
There was someone over at the old board who was always trumpeting growth - praising such stocks as Enron, WorldCom, Countrywide, Washington Mutual and a couple of Dot Coms. You never hear from him anymore. Dave
- Fri May 11, 2012 5:54 pm
- Forum: Personal Investments
- Topic: critique this portfolio
- Replies: 7
- Views: 963
Re: critique this portfolio
I would go Vanguard Intermediate Term Investment Grade instead of the high yield. I am still undecided about the Bridgeway fund. In recent years Bridgeway has shown considerable tracking error on the down side. It makes you think that it's early out performance was tracking error that happened to be on the upside. Back when Rick Ferri was recommending it, there were not many micro cap alternatives, now there are, and the Vanguard Small Value fund has switched index providers. So the advice to just have small value has some merit. I have been watching high yield bonds off and on for 30 years. If you do a search there were some intense debates between Larry Swedroe and Rick Ferri over high yield here several years ago. I have come to the view...
- Thu May 10, 2012 9:36 am
- Forum: Personal Finance (Not Investing)
- Topic: Is Bank of America tricking me on foreclosure purchase?
- Replies: 70
- Views: 5190
Re: Is Bank of America tricking me on foreclosure purchase?
The fact they are playing games indicates that the housing market is bottoming. They would not have tried this when it was still in free fall. Your not buying a sack of grain or some other fungible. You either like the house enough to pay up, or you don't and walk. Nobody teaches B of A a lesson. They just don't learn. Dave
- Tue May 08, 2012 4:52 pm
- Forum: Investing - Theory, News & General
- Topic: OK, Maybe I am Wrong on Bonds
- Replies: 53
- Views: 5807
Re: OK, Maybe I am Wrong on Bonds
I am a good poker player. I don't play more than about 4 times a year. My significant other does not like it, so I only play when my job sends me to Vegas. I am astounded at how bad some players are. They make the stupidest bets. If it existed, those people need to play index poker. So if your tired of making bad bets in bonds, just index. Keep your duration at about 5, have some portion in TIPS, or if you want to diversify away from the dollar get the ETF WIP. Say one third to one half in Vanguard Total Bond, and split the rest between TIPS and WIP, and just stick to that. If interest rates go up which they will eventually because they are now at a historic low, you wont get clobbered too bad because your duration is low, if they don't go ...
- Mon May 07, 2012 11:39 am
- Forum: Investing - Theory, News & General
- Topic: MSCI Launches More 'Liquid' Frontier Index
- Replies: 11
- Views: 1412
Re: MSCI Launches More 'Liquid' Frontier Index
Every time I think about frontier markets, my mind goes in the same circle. First I think I can afford to risk some small part of my money in a non correlated asset. Then I look at the countries and say, "Oh, my, Nigeria, Argentina, Vietnam. Kazakhstan, OH NO!" Dave
- Mon May 07, 2012 9:22 am
- Forum: Personal Investments
- Topic: Portfolio Advice Needed
- Replies: 24
- Views: 3138
Re: Portfolio Advice Needed
You want tax efficient assets in taxable. Tax inefficient assets in tax free. In order of tax efficiency, worst to best, taxable bonds, REIT, Small Value, Large Value, Total Market, International/Emerging (do to the foreign tax credit), tax free bonds. Also recall that when you inherited you took these assets at a stepped up basis so you most likely won't have much in gains selling them. Here is my thinking over breakfast. The Vanguard intermediate tax free is an excellent holding. So I would not touch that. In the tax free the Conservative Life Strategy fund is a low cost way to increase you bond holdings - it's a third of the cost of the Harbor fund. Cost matter a lot over a 30 year period. You did not mention a desired allocation to inte...
- Mon May 07, 2012 8:36 am
- Forum: Personal Investments
- Topic: Portfolio Review Request
- Replies: 11
- Views: 1520
Re: Portfolio Review Request
My first impressions are these. 1) What is your infatuation with mid cap stocks? On a risk return scale they fall in between small and large. With the exception of Mel on this forum, people either tilt to small, or don't tilt at all. 2) Right now interest rates are at historic lows. The direction of rates at some unknown point in the future is most likely up. When that happens bond funds will decline by the amount of their duration for each one percent increase. I would shift from a long term bond fund to intermediate or shorter right now. Further you want bonds in tax free, not in taxable. Bonds spin off interest income taxed at higher rates. 3) You have too many funds. Generally when one has a lot of funds, you end up replicating the whol...
- Fri May 04, 2012 1:57 pm
- Forum: Personal Finance (Not Investing)
- Topic: Will this stop us from being able to obtain another Mortgage
- Replies: 9
- Views: 1351
Re: Will this stop us from being able to obtain another Mort
I assume your going to be a borrower on the mortgage. The fact you have a vacation home should not prevent you from getting another owner occupied home loan. The only thing that might hurt you is if you defaulted on the vacation home and blew your credit that way. If the vacation home was empty when you shop for your next owner occupied loan, you might not balance a budget. But nothing you say scares me. I hope you will get along well with your co-owners. Dave
- Tue May 01, 2012 9:13 am
- Forum: Personal Consumer Issues
- Topic: Capitulation Thread
- Replies: 54
- Views: 12802
Re: Capitulation Thread
I really have not changed my investing plan since this thread started in 2008. But somehow I feel more pessimistic today than in November 2008. Dave
- Thu Apr 26, 2012 10:24 am
- Forum: Personal Investments
- Topic: Vanguard Asset Allocation help
- Replies: 7
- Views: 1249
Re: Vanguard Asset Allocation help
If you want to keep it really simple convert the money market to Total Stock Market in the IRA and Total International in the taxable. That would mean a fairly low bond ratio for your age. There are lot of factors in deciding one's ideal stock bond ratio that don't get discussed much. If you own your house free and clear you don't need as much bonds because you don't have a monthly payment - think of that as "negative bonds." Also when your total net worth is high your really investing for your heirs. So you can think of what is a good portfolio for their age. Also when your net worth is high you don't need to take on as much risk. You should factor those kind of things into your thinking. My comfort level would be to take half of...
- Tue Apr 17, 2012 9:07 am
- Forum: Investing - Theory, News & General
- Topic: Age in Bonds (The Bogle Rule)
- Replies: 135
- Views: 17407
Re: Age in Bonds (The Bogle Rule)
I am closer to the age I say I am to the opposite sex. I reason I can afford to have a lower portion in bonds is because I have paid off the mortgage on my house and office. I think it's a good guideline that one can tweak based on your circumstance. Having no mortgage is like "negative bonds" in that you don't have a payment every month. Dave
- Tue Apr 10, 2012 11:59 pm
- Forum: Personal Investments
- Topic: Changed Jobs - Where to put old job's 401k?
- Replies: 16
- Views: 2707
Re: Changed Jobs - Where to put old job's 401k?
You most likely should roll the old 401 into an IRA such as with Vanguard. Your not getting a lot of responses because we don't know how bad or good the 401 selection of funds is. 1) Most of the 401's in the world are full of high cost, low return funds who sweat talked HR people into selecting them. Costs matter a lot. The difference in returns of a fund with an expense ratio of more than 1% and your typical Vanguard fund of about .15% over 30 years adds up to a lot of money. 2) Take a look at the sample portfolio's in the wiki this site. They can be easily constructed at a Vanguard IRA. Most likely they are not an option with your 401. Dave
- Thu Mar 29, 2012 9:46 am
- Forum: Personal Investments
- Topic: Portfolio Review - Checkup
- Replies: 9
- Views: 1786
Re: Portfolio Review - Checkup
I think you would be better served by eliminating the duplication and by better placement from a tax standpoint. Generally you want assets whose earnings are composed of taxable yield in tax free, assets that earn by appreciating in taxable. Your treating each account as a mini portfolio with a mix of bonds and stock in each account. In order of tax efficiency from worst to most tax efficient, Taxable Bonds, REIT, Small Value, Large Value, Large Blend, International/Emerging (due to the foreign tax credit). If you go over to Vanguard and look at the composition of the life strategy and target retirement funds, you will see they are just different combinations of the same funds. So why have them in every account when you could have the same ...
- Tue Mar 27, 2012 10:16 pm
- Forum: Investing - Theory, News & General
- Topic: Investors are their own worst enemy
- Replies: 19
- Views: 3055
Re: Investors are their own worst enemy
I make an effort to answer questions from "newbies" on this board who have not gotten many responses. Over the years I notice that I used to advise a fairly doctrinaire slice and dice portfolio. More recently I ask people to consider whether the will be able to ride out a slump in a market without panicking and selling out at a low, and if not to be more conservative. So I guess we all learn from experience. To me the trick is investing at a comfort level that allows one to resist the negative aspects of behavioral finance. Dave
- Tue Mar 27, 2012 10:02 am
- Forum: Investing - Theory, News & General
- Topic: Deleted
- Replies: 28
- Views: 4054
Re: all about muni bonds
Since you also asked about the Alternative Minimum Tax (AMT), roughly the AMT defines "tax free" differently. When a state or municipality uses it's taxing power to pay bond holders the bond is AMT tax free and otherwise tax free. GO bonds are an example. When a revenue stream is used to pay bond holders such as tolls from a specific road, or things like revenue from a seaport, then the "revenue bond" is counted as taxable under the AMT but may be otherwise tax free. Last time I looked the Vanguard Intermediate Term Tax free fund did not have any AMT bonds. That is an excellent fund BTW. The Vanguard High Yield Muni fund is about 12% AMT bonds. Dave
- Tue Mar 27, 2012 4:38 am
- Forum: Personal Investments
- Topic: Portfolio Allocation Ideas
- Replies: 29
- Views: 2816
Re: Portfolio Allocation Ideas
Your emergency fund seems a bit high. If it is a money market fund, it is earning less than inflation. If you want to be cautious with that much money, you might consider a bond fund with a duration of about 3 for say, 20 of the 24 months reserve. That gives you a bit more yield without a lot of risk. Let me answer the question about placement. You want tax inefficient assets that throw out a lot of yield in tax free, tax efficient in taxable. In order of tax efficiency worst to best, taxable bonds, REIT, Small Value, Large Value, Large Blend, International/Emerging (due to the foreign tax credit). Right now your mostly large value in taxable. Maybe you want to emphasize Large Blend and International with new money going there. The total US...
- Mon Mar 26, 2012 5:34 am
- Forum: Personal Investments
- Topic: Cash???
- Replies: 18
- Views: 4087
Re: Cash???
I arrange my finances to have as little cash as possible. Keeping a large amount of cash guarantees one result. Your savings loose ground to inflation. I don't really advocate that people should invest when it causes them distress, but consider the certainty of inflation always beating money market rates. If you want to try some lower risk investing with just one fund so you wont be tempted to sell out at a low, take a look at the Vanguard Life Strategy Conservative Growth Fund. You should not be trying to time getting into the market by deciding whether it is high or low. Rather adjust your allocation to reflect a low risk tolerance. Dave
- Sun Mar 25, 2012 9:14 pm
- Forum: Personal Investments
- Topic: 401K is now available to me, time to learn what is going on
- Replies: 5
- Views: 784
Re: 401K is now available to me, time to learn what is going
I would go with the 500 index just because 30 years of high costs really eats into savings. Then when I got short on the bond allocation I would switch the target retirement to a shorter time like 2020 which has a bigger bond allocation. Who knows, maybe in a couple of years you will have better choices. Dave
- Sat Mar 24, 2012 6:57 pm
- Forum: Personal Finance (Not Investing)
- Topic: 401k plan in local bank
- Replies: 2
- Views: 379
Re: 401k plan in local bank
If you can get em to buy Vanguard ETF's, your home free. TRowe has some OK funds. Dave
- Fri Mar 23, 2012 10:52 am
- Forum: Investing - Theory, News & General
- Topic: Bogle vs. Jobs
- Replies: 24
- Views: 3138
Re: Bogle vs. Jobs
I know a lot about Art. There is a wonderful story about Arshile Gorkey, an important early abstract impressionist. There was a debate going on about European and American painting. Someone said the Americans were stealing from the Europeans. Gorkey jumped up ans said "I speak French, I can steal better than you." I think that's the difference between Jobs and Bogle. Jack took an industry - stock investing - which has existed since Florence in the 1500's and tweaked it to redefine conventional thinking. Jobs triumphed in a new industry. My favorite passage in the Jobs biography is when he said that if you did marketing research before cars were invented, people would have said they wanted a faster horse, where as he was developing...
- Thu Mar 22, 2012 9:21 am
- Forum: Personal Investments
- Topic: What to invest in?
- Replies: 4
- Views: 598
Re: What to invest in?
Remember utilities, the stocks for widows and orphans, take a look at the etf XLU. It pays about a 4% dividend. Note the fact I recommend this one etf is not as a substitute for a allocation plan, or a diversified portfolio, just something with a low level of risk, compared to other equities, that pays more than a CD, and it's dividends are tax qualified. The short, or slightly riskier, intermediate investment grade bond funds at Vanguard, are good to. Dave
- Thu Mar 22, 2012 9:02 am
- Forum: Personal Investments
- Topic: Investing from scratch (well almost) overseas
- Replies: 6
- Views: 692
Re: Investing from scratch (well almost) overseas
There are sample portfolios and a lot of good information on the Wiki this site. Also if you go to http://www.IRS.gov and run IRA through a search engine, you should be able to find the publication that will advise you if you and yours qualify to set one up. Nothing beats tax free compounding when your saving for retirement. There is little difference between the Schwab indexed etf's and their Vanguard counterparts. Frankly I would dump the gold. It's just sitting in a vault doing nothing productive. The remarkable run up of gold is due to speculation. There is a wonderful chapter in the book, A Random Walk Down Wall Street, about speculation. It describes the Tulip mania that gripped Holland in the 18th century. Tulip bulbs got bit up to b...
- Thu Mar 22, 2012 12:02 am
- Forum: Investing - Theory, News & General
- Topic: Diversifying to Minimize Sovereign Default Risk
- Replies: 30
- Views: 2235
Re: Diversifying to Minimize Sovereign Default Risk
....will foreign bonds (also: held through a domestic fund family.... my bold I have my doubts on holding foreign securities via US accounts. Could be frozen on either end, re/patriated either end, or if financial system in US fell apart, maybe no access. Assets directly owned overseas might still be ok. No the kind of seizure you are afraid of is prohibited by the due process clauses of the 5th (and 14th) Amendments to the US Constitution. When you read of a seizure of an bank or brokerage account it is because the government believes it is being used to commit a crime -money laundering, terrorism, that kind of thing. When those seizures take place the government has to immediately go to court with proof that is what the account is used f...
- Wed Mar 21, 2012 11:17 pm
- Forum: Personal Finance (Not Investing)
- Topic: Auto insurnace claim for a minor accident?
- Replies: 11
- Views: 3808
Re: Auto insurnace claim for a minor accident?
No it will not count as a point on your license, nor go to the DMV. There is a saying "never try to insure a risk you can handle", but that is to guide you when you decide on a deductible. Personally I would not tender the claim to them, but I don't have strong feelings one way or the other. If you do tender the claim to them,what you really don't want is another claim shortly after this one because that can cause a cancellation. Dave
- Wed Mar 21, 2012 7:18 am
- Forum: Personal Finance (Not Investing)
- Topic: Selling a Home (@ loss) and Buying a Home
- Replies: 7
- Views: 1065
Re: Selling a Home (@ loss) and Buying a Home
I am originally from Alaska. In the early 80's the state had so much oil revenue it gave everyone in the state who wanted access to low cost near 100% financing. That created so much demand that housing prices doubled in a short time. Then the state got hit with a recession and foreclosures amounted to one third of all homes. Prices went down to below where they started. The recovery was very gradual like 10 + years to come back. So you had a bubble caused by excessive lending, followed by a bust, and a slow recovery. Based on the similarity of that experience with the current situation in the whole country, I would not hold on and await a recovery. I would take the loss and move now. Your lucky, you still have equity. Dave
- Wed Mar 21, 2012 7:03 am
- Forum: Investing - Theory, News & General
- Topic: Diversifying to Minimize Sovereign Default Risk
- Replies: 30
- Views: 2235
Re: Diversifying to Minimize Sovereign Default Risk
I happen to be going in the opposite direction as your thinking. I was and continue to be shaken by the US deficit impasse last summer. I see a portfolio of the bonds of dozens of countries, being a bit safer than holding just US treasury - one country. If your really worried about a country defaulting you can get something like the ETF IBND, international corporate bonds in local currency. Don't go overboard, I still think the conventional wisdom to the effect one should take currency risk with equities has merit, I just don't want to increase my stock allocation. Dave
- Tue Mar 20, 2012 11:20 pm
- Forum: Personal Finance (Not Investing)
- Topic: How was my credit card stolen?
- Replies: 41
- Views: 5826
Re: How was my credit card stolen?
I know how we can catch the card thieves. They are the ones posting here who say they have just come into a lot of money and they don't know a thing about investing. Dave
- Tue Mar 20, 2012 7:05 am
- Forum: Investing - Theory, News & General
- Topic: Financial repression = 1/3rd foreign bonds for me?
- Replies: 7
- Views: 971
Re: Financial repression = 1/3rd foreign bonds for me?
I hold some foreign bonds. WIP, ELD and IBND that is World Inflation Protected, Emerging Markets, and International corporate. All are unhedged and in currencies other than the dollar. I don't know your age. A younger person with maybe only a 30% bond allocation can get enough international equities to adequately diversify away from dependance on the dollar. Does that describe you? If you go someplace like Yahoo finance and do a graph over the longest time available, you will see that these bonds correlate more with equity movements, also they cost more than US, and are taxable. But because they are bonds their upside is limited, unlike equities. So I a not saying don't get foreign bonds. Just consider what you are doing. A one third alloca...
- Mon Mar 19, 2012 11:34 pm
- Forum: Personal Investments
- Topic: New-ish Investor, Where to Go Next?
- Replies: 5
- Views: 688
Re: New-ish Investor, Where to Go Next?
I will tell you you have collected some really expensive funds that I don't think will perform well at all. The STAR in the roth is ok. Generally you want tax inefficient assets in tax free tax efficient in taxable. In order of tax effiency worst to best; taxable bonds, REIT, Small Value, Large US, then international/emerging (due to the foreign tax credit). The loss to high cost funds over 30 years is staggering, i.e. 1% a year over 30 years in extra costs compounds to a big figure. An earlier poster suggested 75/25 stock bond, and 25% international. That is a typical portfolio for people here. You would get fairly close to it without the high cost drag by putting all the 401 in the target fund, and having just VTI and VXUS in the brokerag...