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I had read a couple of posts on this board recently where a forum member was suggesting setting your bond allocation as a function of the target number instead of your age. So, using this method, if your target was a $1 million portfolio @ 70% bonds you would work backwards from there. So 900K woul...

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NiceUnparticularMan wrote:...So there you go--all your stocks in VBR and VSS, and you have a nicely-tilted global stock portfolio...

And this is exactly what I do. Thanks for the validation. You made my day.

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I will turn 48 this week. Don't know if that's old to the OP, but I will tell you that I didn't start making decent money until about ten years ago. Since then my net worth has increased dramatically. I just regret that it took so long for me to settle in to a career and increase my income. Boglehea...

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NiceUnparticularMan wrote:
stlutz wrote:Betting only on small/value is not factor diversified.

This is a crucial premise in your argument, and...

Nice explanation.

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Because I don't come here everyday or even every month, I'm one of the posters that would ask a question from time to time that was probably addressed by Larry a thousand times. I was always surprised and delighted when he would respond anyway. Larry is one of the experts I have trusted the most thr...

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Not really. I'd say it has done a pretty horrible job. It is so far off I don't understand how anyone could even consider basing actions on it. Here's Bogle's model for the past several years https://monosnap.com/file/cYm3w5pcQbeJKbim7hS4AzLr0wwPTC.png Interesting table. It coincides with about the...

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Phineas J. Whoopee wrote:...OP: With respect to individual investing that word is often used to mean investment grade bonds of no more than intermediate term.
PJW

PJW - Thanks for your concise answer and links.

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I see the term used a lot here, especially when discussing the Larry Portfolio. I did a search and was not able to find an explanation in other threads. Probably didn't look hard enough. The term implies there are "safe" and "unsafe" bonds. Are unsafe bonds just lower quality cor...

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My guess is that Larry would recommend holding CDs in an IRA or munis (if in taxable) over treasuries. Additionally he might now recommend alts like P2P lending, AQR managed futures and AQR multi-style period to replace some treasuries depending on several factors. I hold most of my bonds in a 401k...

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I was under the impression Vanguards Intermediate Term Treas (VFIUX) was the best fixed income fund option for implementing this strategy. A couple of Larry's comments on this thread have caused me to second guess this. Is there a better VG fixed income fund for this strategy?

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NiceUnparticularMan wrote:Probably #1...

Thanks for your thoughts, NiceUnparticularMan!

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fwiw, TE should be irrelevant to sophisticated investor...Of course I would use CDs, not Treasuries, if can. Larry Thanks for responding, Larry. TE has never been an issue with me. I guess that makes me sophisticated! Part of the reason I hold any LC is a portion of my portfolio (my HSA) has limite...

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If you were planning to retire in 12 years and could only choose one portfolio, which would you choose? #1 25% VG Value Index 25% VG Sm Value 25% VG Sm Int'l 25% VG Intermediate Treas. #2 33% VG Sm Value 33% VG Sm Int'l 33% VG Intermediate Treas. Before anyone lectures me, I know this is splitting h...

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This portfolio concept appeals to me. Is there any reason I have to wait until I've "won the game" to implement? Assuming I understand the tracking error risk, would this work with a higher equity allocation too. For example, would it be crazy to do 33% ITT, 33% Small Value, 33% Int'l Smal...

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uncaD wrote:
Tycoon wrote:Calories in < Calories burned

This is all there is to it.

As others have mentioned, there is a large body of scientific research and multiple studies that contradict this. The science suggests not all calories are the same.

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You can try all the fad diets in the world, but it will always come down to: 1. Work out more 2. Eat less Both of these things require self-discipline in the long-term, which is the snagging point for 99% of Americans. The fad diets will just end up either A) harming your health; B) harming your wa...

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Another anecdote here for a low carb diet. Lost 25 pounds (200 to 175) and have kept it off for a year now. Sugar is the biggest culprit. For whatever it's worth, I have always worked out (running and weight training). I didn't lose my excess weight until I changed my diet. Not saying exercise isn't...

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Let me be frank. If you drive in an area where it is regularly below 40 degrees and snows during winter, you're stupid if you don't put winter tires on your car. I guess the vast majority of people I've ever known are stupid. Snow tires are great, but there's no need to be dogmatic and insulting. I...

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Let me be frank. If you drive in an area where it is regularly below 40 degrees and snows during winter, you're stupid if you don't put winter tires on your car. As others have pointed out, the cost in minimal. I don't find it to be much of a hassle. I switch out the tires on all three of our vehicl...

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I'll chime in with my experience in West Michigan (70+ inches on average). Three years ago we built our dream house back in the woods at the end of a long driveway with a hill leading up to the house. First year we had to park cars at the bottom of the hill several times during the winter. Then I di...

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A few years ago we moved to a house with a steep incline on the driveway leading up to the house. That first winter our cars spent several nights parked at the bottom of the hill because we couldn't make it up with all-season tires if the driveway had any ice. The next year I put winters on my wife'...

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Bogleheads:I love Social Security. It's America's finest retirement plan. Nothing else gives you the same combination of income for life, inflation protection, tax benefits, government-backed payment guarantees, and built-in spouse protection, with no annual investment fee and no market risk. A com...

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I've wrestled with the same dilemma. I settled on not getting my value tilt on the int'l side, but instead using Value Index (VVIAX) and Small Cap Value (VSIAX) on the domestic side where it is cheaper (.08%).

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Also, it would be illegal for them to sell you coverage at a lower rate just because you ask. It's not like the cable company. Most rates are filed and approved by the state where the insurance is sold.

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Some of you seem to be mistakenly under the impression that an insurance agent sets the prices for the products they sell. That is not the case. There really is nothing they can do to lower your rates.

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I would say that they, like Vanguard, are one of the "better guys", at least as of current. No financial institution is without faults, so I wouldn't label anyone unequivocally as a "good guy". Fair enough. Maybe it would be better to ask if their products and services represent...

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Levett wrote:What rubbish!

What exactly is "rubbish", that some financial services companies attempt to exploit people's ignorance? That seems self evident, not melodramatic.

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Thank you to those who responded. I have a high net worth friend who is considering their services and asked my opinion. I don't know enough about TIAA-CREF to have an opinion, but I knew I would get some good information here. I basically just want to know if they run their business in a way that i...

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Does anyone have personal experience with TIAA-CREF's Individual Advisory Services? What I really would like to know is do they provide good products and services at reasonable cost like Vanguard or are they one of the companies that exploit consumers with unsuitable, expensive products with strong ...

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David Jay wrote:Do we need to start a WM Bogleheads chapter?

I'm in (Caledonia).

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I hardly ever post, but I enjoyed bottlecap's post above so much I logged on just to say, "Great post, bottlecap"!

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Concerning some of the remarks about ATV plows piling snow on each side of the driveway, that was a concern for me towards the end of last winter. The driveway was so narrow in places, you would not have been able to open the car doors on either side. However, this was a once in lifetime event (116 ...

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Me - 2001 Honda Odyssey - 257,000 miles. I will replace it when something major goes wrong. It's rusting out, but just will not die. Teenage kids - 1998 Subaru Outback - 212,000 miles. Wife - 2012 Hyundai Elantra - 60,000 miles. Why? They are all safe and reliable and serve a specific need, I guess.

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I have a 600' driveway with a hill leading to the house. This is my third winter in this house and last year we had the most snowfall since 1950 (116 inches in Grand Rapids, MI). I plow it in about 20 minutes with a Honda Rubicon 4x4 ATV with a blade. I bought the ATV used for $4500 and drive it yea...

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Larry, I know you like the REIT asset class as an equity diversifier. Did you choose not to include it in this portfolio for simplicity? Do you think 20% of equity is too high for REIT? For example, here is my equity AA: 20% US Large Blend 20% US Small Value 20% Int'l Large Value (includes EM) 20% I...

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Low-cost investing is not so much about counting every dollar, as it is about making every dollar count. "We are what we repeatedly do. Excellence, therefore, is not an act, but a habit." (Aristotle) Paraphrasing Bogle: With most things in life, you get what you pay for. With investing, yo...

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I have stumbled upon a great book on the subject. It's called "Saving the Family Cottage..." You can find it at Amazon. It was written by an attorney that specializes in this aspect of law. It is well written and contains valuable information.

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Age 39, wife 34

100% equities (US, Int'l, REIT)

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Thanks, G-Money: It did occur to me to combine the two like you suggest. Not a bad idea. When I attempted to crunch the numbers, Plan A came out way ahead of Plan B. That's why I don't trust my analysis... I didn't think it could be so lopsided one way or another. I used a 4% rate on my savings and ...

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bolt: Refi would make no sense because 1st mortgage is already lower than current rates. I do intend to replace with used, but two good quality used cars will still run 20 to 30k. jsavage: My current vehicles are a 2000 with 120k miles and a 2001 with 150K miles. My plan to replace them in five year...

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Diehards, I have an extra $600 per month in my budget. I have two objectives I would like to achieve with this money. I have a 2nd mortgage at 6.875% I would like to pay off, but I will also need to replace our two vehicles in about five years. Help me decide between the following plans (or suggest ...

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I recall Larry Swedroe once admitting on the Morningstar board that he did not own fixed income until all his debt was payed off.

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Thanks to those who replied (mas, leonard and Laura). I'm inclined to stick with a TR fund in a taxable account, as well, but I just wanted confirmation from the good people on this forum. I also want to make sure I'm not overlooking any other possibilities before making a decision. I have tremendou...

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Hi Diehards, My recently widowed 59 year-old mother-in-law has requested my help with about $200,000 taxable. She is debt-free and has enough inflation adjusted pension/SS income to live comfortably without working. There is no specific time frame for the use of this money. This is her "securit...

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You can have a pretty simple portfolio and still tilt.

I own a Target Retirement fund and add in doses of Small Value, REIT and Int'l Value. To keep it neat and clean, my allocation to these four funds is 10%, 20%, 30% and 40%. It's a beautiful thing.

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But if your premise is correct, if you have the same marginal tax rate during accumulation as during retirement, it doesn't matter which you use, IRA or Roth. Are you saying that there is an optimal allocation between the two? What am I missing?

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I'm with you, redbeard. Great examples. But why do you say that a greater contribution to a Roth than 64.2% would create worse tax consequences in your examples? Wouldn't it follow that 100% Roth would give the same results?

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She's 15% federal, 4.3% state.

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Thanks for the thoughtful advice, Diehards. She will have health insurance and enough sources of income such that she shouldn't have to tap this money for many years. I guess the gist of my question is, "What is the most efficient way to invest in fixed income with taxable dollars to maximize r...

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Diehards, My 56-year-old mother-in-law suddenly became a widow last week. She will be receiving life insurance proceeds that will not be needed for income for many years, however, she has a history of health problems. I've never invested a lump sum in a taxable account. Obviously, a stock index fund...

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