it it too late buying more stocks and bond ??
it it too late buying more stocks and bond ??
Hi all
is it too late adding more new money into stock--valuation is high -too high??,so what do you do the newly gained cash --money market -0 interest rate.
then what about buying bond,- interest rate is going to rise soon so that is not very good either.
Maybe best bet is investing in Europe -their equity is cheap and maybe rising with the coming new QE so what do you think ??. may be buying the VANGUARD european stock index fund( veurx)
--is it timing market ?? long term investor should not worry about that kind of things just buy now then. ??? please give me some feedback or comments
best wishes
is it too late adding more new money into stock--valuation is high -too high??,so what do you do the newly gained cash --money market -0 interest rate.
then what about buying bond,- interest rate is going to rise soon so that is not very good either.
Maybe best bet is investing in Europe -their equity is cheap and maybe rising with the coming new QE so what do you think ??. may be buying the VANGUARD european stock index fund( veurx)
--is it timing market ?? long term investor should not worry about that kind of things just buy now then. ??? please give me some feedback or comments
best wishes
Re: it it too late buying more stocks and bond ??
never too late for long-term buy and hold!!!
Re: it it too late buying more stocks and bond ??
Develop a workable plan
Invest early and often
Never bear too much or too little risk
Never try to time the market
Use index funds when possible
Keep costs low
Diversify
Minimize taxes
Keep it simple
Stay the course
Invest early and often
Never bear too much or too little risk
Never try to time the market
Use index funds when possible
Keep costs low
Diversify
Minimize taxes
Keep it simple
Stay the course
- LAlearning
- Posts: 1365
- Joined: Wed May 09, 2012 12:26 pm
- Location: Los Angeles
Re: it it too late buying more stocks and bond ??
Yes it's too late. May as well give up now and disperse your forsaken money across the anonymous inter tubes...
I know nothing!
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- Joined: Fri Sep 12, 2014 11:23 pm
Re: it it too late buying more stocks and bond ??
It's hard to break this bad habit. After much procrastination and tip-toeing, I'm finally close to fully invested, although my cash position is still at 7.3%. I'm reasonably comfortable with my current AA which reflects a streamlined slice-and-dice approach to ETFs (i.e. a multiple-fund portfolio):ny_rn wrote:Never try to time the market
U.S. Large Cap equity: 26.8%
U.S. Small Cap equity: 6.7%
International equity: 24.1%
Fixed income: 35.1%
Cash: 7.3%
If I needed to invest 100% of the cash immediately, I'd put it into fixed income. This is because I'm a more cautious investor than in the past, partly being age 54 and partly some hard-to-shake ambivalence about the financial markets. Fixed income has its own set of market risks. Is there a downside that I'm overlooking to plopping the remaining cash allocation into SCHZ (Schwab accounts) and BND (PMA Wellstrade accounts)?
Re: it it too late buying more stocks and bond ??
Seattlenative wrote:It's hard to break this bad habit. After much procrastination and tip-toeing, I'm finally close to fully invested, although my cash position is still at 7.3%. I'm reasonably comfortable with my current AA which reflects a streamlined slice-and-dice approach to ETFs (i.e. a multiple-fund portfolio):ny_rn wrote:Never try to time the market
U.S. Large Cap equity: 26.8%
U.S. Small Cap equity: 6.7%
International equity: 24.1%
Fixed income: 35.1%
Cash: 7.3%
If I needed to invest 100% of the cash immediately, I'd put it into fixed income. This is because I'm a more cautious investor than in the past, partly being age 54 and partly some hard-to-shake ambivalence about the financial markets. Fixed income has its own set of market risks. Is there a downside that I'm overlooking to plopping the remaining cash allocation into SCHZ (Schwab accounts) and BND (PMA Wellstrade accounts)?
seattlenative
can you tell me the contend of the your fixed income
-
- Posts: 426
- Joined: Fri Sep 12, 2014 11:23 pm
Re: it it too late buying more stocks and bond ??
As a percentage of the entire pie, here's how the 35.1% is allocated (mostly at Schwab, partly at Wellstrade):looking wrote:seattlenativeSeattlenative wrote:It's hard to break this bad habit. After much procrastination and tip-toeing, I'm finally close to fully invested, although my cash position is still at 7.3%. I'm reasonably comfortable with my current AA which reflects a streamlined slice-and-dice approach to ETFs (i.e. a multiple-fund portfolio):ny_rn wrote:Never try to time the market
U.S. Large Cap equity: 26.8%
U.S. Small Cap equity: 6.7%
International equity: 24.1%
Fixed income: 35.1%
Cash: 7.3%
If I needed to invest 100% of the cash immediately, I'd put it into fixed income. This is because I'm a more cautious investor than in the past, partly being age 54 and partly some hard-to-shake ambivalence about the financial markets. Fixed income has its own set of market risks. Is there a downside that I'm overlooking to plopping the remaining cash allocation into SCHZ (Schwab accounts) and BND (PMA Wellstrade accounts)?
can you tell me the contend of the your fixed income
SCHO (short-term US Treasuries): 11.61%
SCHP (TIPS): 8.47%
SCHZ (Barclays aggregate bond market): 7.27%
SCHR (intermediate-term US Treasuries): 4.75%
VTIP (short-term TIPS): 1.79%
PHB (high-yield bonds): 0.52%
1-year CD maturing 06-15-15: 0.69%
I am comfortable keeping the existing TIPS positions, because SCHO/BND do not include TIPS. Having said that, there's no need to add more TIPS, they are pure inflation protection and the distribution yields are very minor. TIPS are currently an out-of-favor asset class, but that can change at any time - it might might be soon or might be years down the pike, but low inflation won't continue forever.
Keeping some short-term Treasury ETFs, as distinguished from aggregate bond ETFs, has a "comfortable" feeling even though yields are quite low. However, aggregate bond ETFs have significant amounts of intermediate Treasuries, so perhaps I should off SCHR and my tiny position in PHB and move those dollars into SCHZ or BND. When my small brokered CD at Schwab matures in June, I can also move its proceeds into an aggregate bond ETF as well. It has taken me a long time to become comfortable with the advantages as well as the risks of fixed-income ETFs, largely from reading messages here on Bogleheads.
Maybe I'm too skittish, but keeping a healthy fixed-income position does help me stay committed to keeping my "hands off" of my equity ETF positions, including the international holdings.
[Note: all of these assets are within IRAs; we have no real brokerage assets outside of IRAs, but we do have a six-month cash emergency fund in bank/CU deposits, which is excluded from this AA].
Re: it it too late buying more stocks and bond ??
very complicate for me yours- mins is all cash so i dont know which bods should i buy-- may be buying like;Seattlenative wrote:As a percentage of the entire pie, here's how the 35.1% is allocated (mostly at Schwab, partly at Wellstrade):looking wrote:seattlenativeSeattlenative wrote:It's hard to break this bad habit. After much procrastination and tip-toeing, I'm finally close to fully invested, although my cash position is still at 7.3%. I'm reasonably comfortable with my current AA which reflects a streamlined slice-and-dice approach to ETFs (i.e. a multiple-fund portfolio):ny_rn wrote:Never try to time the market
U.S. Large Cap equity: 26.8%
U.S. Small Cap equity: 6.7%
International equity: 24.1%
Fixed income: 35.1%
Cash: 7.3%
If I needed to invest 100% of the cash immediately, I'd put it into fixed income. This is because I'm a more cautious investor than in the past, partly being age 54 and partly some hard-to-shake ambivalence about the financial markets. Fixed income has its own set of market risks. Is there a downside that I'm overlooking to plopping the remaining cash allocation into SCHZ (Schwab accounts) and BND (PMA Wellstrade accounts)?
can you tell me the contend of the your fixed income
SCHO (short-term US Treasuries): 11.61%
SCHP (TIPS): 8.47%
SCHZ (Barclays aggregate bond market): 7.27%
SCHR (intermediate-term US Treasuries): 4.75%
VTIP (short-term TIPS): 1.79%
PHB (high-yield bonds): 0.52%
1-year CD maturing 06-15-15: 0.69%
I am comfortable keeping the existing TIPS positions, because SCHO/BND do not include TIPS. Having said that, there's no need to add more TIPS, they are pure inflation protection and the distribution yields are very minor. TIPS are currently an out-of-favor asset class, but that can change at any time - it might might be soon or might be years down the pike, but low inflation won't continue forever.
Keeping some short-term Treasury ETFs, as distinguished from aggregate bond ETFs, has a "comfortable" feeling even though yields are quite low. However, aggregate bond ETFs have significant amounts of intermediate Treasuries, so perhaps I should off SCHR and my tiny position in PHB and move those dollars into SCHZ or BND. When my small brokered CD at Schwab matures in June, I can also move its proceeds into an aggregate bond ETF as well. It has taken me a long time to become comfortable with the advantages as well as the risks of fixed-income ETFs, largely from reading messages here on Bogleheads.
Maybe I'm too skittish, but keeping a healthy fixed-income position does help me stay committed to keeping my "hands off" of my equity ETF positions, including the international holdings.
[Note: all of these assets are within IRAs; we have no real brokerage assets outside of IRAs, but we do have a six-month cash emergency fund in bank/CU deposits, which is excluded from this AA].
most vangurd bond
vg short tem invest grade
intermideate invet grade
total bond domestic
total international bond
internationa govenment bond
some cash
any comments please
best wishes
-
- Posts: 426
- Joined: Fri Sep 12, 2014 11:23 pm
Re: it it too late buying more stocks and bond ??
If we would simplify everything down to the Three Fund Portfolio model, you would use a single fixed-income ETF or mutual fund, an "aggregate bond fund", tracking an index of all U.S. investment grade bonds, including U.S. Treasury instruments, U.S.agency bonds, and investment-grade corporate bonds and notes. BND is the Vanguard aggregate-bond fund, and uses the Barclays U.S. Aggregate Float Adjusted Index. BND's ER is 0.08%, and can be purchased commission-free at Vanguard or TD Ameritrade.looking wrote: very complicate for me yours- mins is all cash so i dont know which bods should i buy-- may be buying like;
most vangurd bond
vg short tem invest grade
intermideate invet grade
total bond domestic
total international bond
internationa govenment bond
some cash
any comments please....best wishes
Three equivalent ETFs sharing this investment objective, though using a slightly different index (Barclays U.S. Aggregate Index instead of the "float adjusted" index) are:
SCHX - Schwab aggregate-bond fund (commission-free for Schwab clients). ER is 0.06%.
AGG - iShares aggregate-bond fund (commission-free for Fidelity and TD Ameritrade clients). ER is 0.08%
LAG - SPDR aggregate-bond fund. ER is 0.10%.
P.S. The Three Fund portfolio at Vanguard consists of VTI, VXUS and BND. At Schwab, there's not an exact equivalent to VXUS, so you would substitute 3 Schwab ETFs (SCHF, SCHC and SCHE) for the VXUS portion (a Five Fund portfolio at Schwab).
Re: it it too late buying more stocks and bond ??
This answer is tough to beat.ny_rn wrote:Develop a workable plan
Invest early and often
Never bear too much or too little risk
Never try to time the market
Use index funds when possible
Keep costs low
Diversify
Minimize taxes
Keep it simple
Stay the course
Re: it it too late buying more stocks and bond ??
I bought some stocks and bonds last week and this week, and I will continue to do so next month and every month thereafter for many decades to come.
Don't only practice your art, but force your way into its secrets. For it and knowledge can raise men to the divine. |
L. Beethoven
Re: it it too late buying more stocks and bond ??
The Dow was @5,000 in 1995.
It is a couple thousand away from a 4 fold increase.
20 years from now,,,Dow might be around 50k,,,,,or 25k,,,either way,
I would invest today
It is a couple thousand away from a 4 fold increase.
20 years from now,,,Dow might be around 50k,,,,,or 25k,,,either way,
I would invest today
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
Re: it it too late buying more stocks and bond ??
Seattlenative wrote:If we would simplify everything down to the Three Fund Portfolio model, you would use a single fixed-income ETF or mutual fund, an "aggregate bond fund", tracking an index of all U.S. investment grade bonds, including U.S. Treasury instruments, U.S.agency bonds, and investment-grade corporate bonds and notes. BND is the Vanguard aggregate-bond fund, and uses the Barclays U.S. Aggregate Float Adjusted Index. BND's ER is 0.08%, and can be purchased commission-free at Vanguard or TD Ameritrade.looking wrote: very complicate for me yours- mins is all cash so i dont know which bods should i buy-- may be buying like;
most vangurd bond
vg short tem invest grade
intermideate invet grade
total bond domestic
total international bond
internationa govenment bond
some cash
any comments please....best wishes
Three equivalent ETFs sharing this investment objective, though using a slightly different index (Barclays U.S. Aggregate Index instead of the "float adjusted" index) are:
SCHX - Schwab aggregate-bond fund (commission-free for Schwab clients). ER is 0.06%.
AGG - iShares aggregate-bond fund (commission-free for Fidelity and TD Ameritrade clients). ER is 0.08%
LAG - SPDR aggregate-bond fund. ER is 0.10%.
P.S. The Three Fund portfolio at Vanguard consists of VTI, VXUS and BND. At Schwab, there's not an exact equivalent to VXUS, so you would substitute 3 Schwab ETFs (SCHF, SCHC and SCHE) for the VXUS portion (a Five Fund portfolio at Schwab).
settlenative
thnak you so much - seems you are very knowledgeble - i need some comments on my portfolios below" and bonds buying"
alll vg etfs/ no bond and only cash --70/30 AA that is why i need bond and need to reduce to 50/50 AA from 70/30.
ETFs
VEA VANGUARD FTSE DEVELOPED MKTS ETF
VUG VANGUARD GROWTH ETF
VHT VANGUARD HEALTH CARE ETF
VO VANGUARD MID CAP ETF
VOT VANGUARD MID CAP GROWTH ETF
VOE VANGUARD MID CAP VALUE ETF
VNQ VANGUARD REIT INDEX ETF
VOO VANGUARD S&P 500 INDEX ETF NEW
VTI VANGUARD TOTAL STOCK MARKET ETF
VTV VANGUARD VALUE ETF
best wishes
-
- Posts: 426
- Joined: Fri Sep 12, 2014 11:23 pm
Re: it it too late buying more stocks and bond ??
BND is part of the Boglehead three fund portfolio (VTI for domestic all-cap, VXUS for international all-cap, and BND for domestic fixed).looking wrote:.seattlenative - thnak you so much - seems you are very knowledgeble - i need some comments on my portfolios below" and bonds buying"
alll vg etfs/ no bond and only cash --70/30 AA that is why i need bond and need to reduce to 50/50 AA from 70/30.
ETFs
VEA VANGUARD FTSE DEVELOPED MKTS ETF
VUG VANGUARD GROWTH ETF
VHT VANGUARD HEALTH CARE ETF
VO VANGUARD MID CAP ETF
VOT VANGUARD MID CAP GROWTH ETF
VOE VANGUARD MID CAP VALUE ETF
VNQ VANGUARD REIT INDEX ETF
VOO VANGUARD S&P 500 INDEX ETF NEW
VTI VANGUARD TOTAL STOCK MARKET ETF
VTV VANGUARD VALUE ETF
Re: it it too late buying more stocks and bond ??
settlenativeSeattlenative wrote:It's hard to break this bad habit. After much procrastination and tip-toeing, I'm finally close to fully invested, although my cash position is still at 7.3%. I'm reasonably comfortable with my current AA which reflects a streamlined slice-and-dice approach to ETFs (i.e. a multiple-fund portfolio):ny_rn wrote:Never try to time the market
U.S. Large Cap equity: 26.8%
U.S. Small Cap equity: 6.7%
International equity: 24.1%
Fixed income: 35.1%
Cash: 7.3%
If I needed to invest 100% of the cash immediately, I'd put it into fixed income. This is because I'm a more cautious investor than in the past, partly being age 54 and partly some hard-to-shake ambivalence about the financial markets. Fixed income has its own set of market risks. Is there a downside that I'm overlooking to plopping the remaining cash allocation into SCHZ (Schwab accounts) and BND (PMA Wellstrade accounts)?
im very interested in your portfolis --can tell me the the asset calss,contends of your lagre cap and internationa compried of
best wishes
looking
-
- Posts: 1177
- Joined: Wed May 09, 2012 10:21 pm
Re: it it too late buying more stocks and bond ??
looking,
I strongly suggest that you get some books from your public library, like Bogle's Common Sense on Mutual Funds, or Mike Piper's books, or Malkiel's Random Walk down Wall Street, or William Bernstein's. Also, strongly recommended, books about investing psychology, like
Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the Life-Changing Science of Behavioral Economics by Belsky and Gilovich, and
Your Money and Your Brain: How the New Science of Neuroeconomics Can Help Make You Rich by Jason Zweig.
I strongly suggest that you get some books from your public library, like Bogle's Common Sense on Mutual Funds, or Mike Piper's books, or Malkiel's Random Walk down Wall Street, or William Bernstein's. Also, strongly recommended, books about investing psychology, like
Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the Life-Changing Science of Behavioral Economics by Belsky and Gilovich, and
Your Money and Your Brain: How the New Science of Neuroeconomics Can Help Make You Rich by Jason Zweig.
Re: it it too late buying more stocks and bond ??
I had a lump sum of money equivalent to 10% of my portfolio become available last Thursday, and I invested according to my AA last Thursday. I am confident that 30 years from now I will be glad that I did so.
NightOwl
NightOwl
"Volatility provokes the constant dread that some investors know more than we do, making us fearful of ignoring such powerful price movements." |
Peter Bernstein, "The 60/40 Solution."
Re: it it too late buying more stocks and bond ??
looking wrote:Hi all
is it too late adding more new money into stock--valuation is high -too high??,so what do you do the newly gained cash --money market -0 interest rate.
then what about buying bond,- interest rate is going to rise soon so that is not very good either.
Maybe best bet is investing in Europe -their equity is cheap and maybe rising with the coming new QE so what do you think ??. may be buying the VANGUARD european stock index fund( veurx)
--is it timing market ?? long term investor should not worry about that kind of things just buy now then. ??? please give me some feedback or comments
best wishes
looking,
1.Your risk tolerance sounds low.
2. Your 75 years old.
Consider some CD's or a SPIA. Both will provide income with very little risk.
-
- Posts: 426
- Joined: Fri Sep 12, 2014 11:23 pm
Re: it it too late buying more stocks and bond ??
Looking, I agree regarding Certificates of Deposit. You can look at APYs offered by Ally Bank and other online banks. You can also check APYs offered by small local or regional community banks, some of them will offer APYs very close to the online banks because they don't really obtain the massive deposit levels of the "megabanks" (BofA, Wells, Citibank, US Bank, Key Bank et al). You could also invest in a high-yield savings account, some of the APYs are close to 1%.Bustoff wrote: looking,
1.Your risk tolerance sounds low.
2. Your 75 years old.
Consider some CD's or a SPIA. Both will provide income with very little risk.
NOTE: Bank advertising emphasizes "APY" (annual percentage yield), not the "rate". APY reflects interest compounding over the course of one year, if you automatically reinvest the interest payments into the CD's principal. The "interest rate" is smaller than the APY because there is no compounding. A five year CD with an advertised 2.25% APY would typically pay a 2.23% rate if interest payments occurred monthly.