Search found 604 matches

by digit8
Mon Jul 16, 2018 8:14 am
Forum: Investing - Theory, News & General
Topic: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters
Replies: 108
Views: 8576

Re: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters

No such thing as "always" safe. You allocate assets recognizing that on any given day some investments will do poorly but can be offset by others that do well in the same conditions. This one protects your principal, that one matches inflation, the other does well during some markets trends but drop...
by digit8
Wed Jul 11, 2018 9:51 am
Forum: Investing - Theory, News & General
Topic: Capping Emergency Fund
Replies: 53
Views: 4772

Re: Capping Emergency Fund

In general the advice/target for an emergency fund is 6 months of expenses. I'm curious at what point in total assets this rule doesn't make sense. For me, never. I put less in then I did when I was starting out, but I continue to contribute regularly. With that said, my EF holdings are mainly a mo...
by digit8
Wed Jul 11, 2018 9:20 am
Forum: Investing - Help with Personal Investments
Topic: Where do you keep your Emergency Fund?
Replies: 50
Views: 5194

Re: Where do you keep your Emergency Fund?

I keep way more than I should in my rewards checking which is my real "sleep at night" money. But for purely emergency funds, I have two buckets- cash goes to Vanguard Federal Money Market once a month. I eyeball the balance every quarter or so and if it feels a little overstuffed I move a piece of ...
by digit8
Wed Jul 11, 2018 9:07 am
Forum: Investing - Help with Personal Investments
Topic: Target date funds....unsophisticated?
Replies: 64
Views: 4523

Re: Target date funds....unsophisticated?

Target date funds, really? Yup. Really. You’re missing the fact that most people that have lives to live will not rebalance regularly and, for fear of market conditions, may even hesitate to rebalance. Reality trumps theory. It is well worth a few extra basis points in a tax advantaged account to t...
by digit8
Tue Jun 19, 2018 6:49 am
Forum: Investing - Theory, News & General
Topic: I-bonds look pretty bad right now
Replies: 92
Views: 10777

Re: I-bonds look pretty bad right now

Then you pay federal tax but not state and local taxes. You cannot hold an I-bond longer than 30 years. Based on a marginal tax rate of 22%, and assuming that CPI inflation is constant, here is what I got: There is an old joke about the worlds greatest scientest spending 10 years coming up with the...
by digit8
Mon Jun 04, 2018 7:53 am
Forum: Investing - Help with Personal Investments
Topic: Is it fine to have 100% of portfolio in VTSAX
Replies: 33
Views: 3293

Re: Is it fine to have 100% of portfolio in VTSAX

Over the next 10 years? Sure, you're fine, better than the average investor in fact. I would say, make a plan for yourself over the 10 years before you think about adding bonds- read up on Bogleheadism and investing in general. Be open to other equities at that time as well. But 30's to 40's just in...
by digit8
Tue May 29, 2018 8:19 am
Forum: Investing - Help with Personal Investments
Topic: Emergency Fund Alternatives
Replies: 16
Views: 1598

Re: Emergency Fund Alternatives

^^ Yep, I'm thinking I may do some 50/50 or some other split where 50% is in an online savings account, the rest is invested in a fund(s) that return. Maybe I'll adjust the ratio as time passes, and continue to cover with my brokerages. +1. I've tried just about every possible option and this is th...
by digit8
Thu May 24, 2018 11:43 am
Forum: Investing - Theory, News & General
Topic: Theory: Total World Index a Sure Fire Win [VT/VTWSX]
Replies: 155
Views: 13181

Re: Theory: Total World Index a Sure Fire Win [VT/VTWSX]

FWIW, I think on this thread and the subject in general, there is a lot of combining/conflating the idea of best returns, and good enough returns. There is a not-zero chance that a 100% US Equity portfolio will prove to not perform as well as a total world one over the next 30 years, and a not-zero ...
by digit8
Tue May 22, 2018 1:57 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans To Launch Total World Bond ETF
Replies: 30
Views: 3580

Re: Vanguard Announces Plans To Launch Total World Bond ETF

pokebowl wrote:
Mon May 21, 2018 1:06 pm
Now if only they would offer admiral shares of VTWSX.
Still, it's down to a .19 EF, which ain't bad. I think the last time I seriously considered it, I was on the fence at like .32%, so I guess it's time to run the numbers again.....
by digit8
Tue May 15, 2018 8:37 am
Forum: Investing - Help with Personal Investments
Topic: A Very Unique Inflation Fund
Replies: 11
Views: 1380

Re: A Very Unique Inflation Fund

That's a pass hard enough to cut diamonds for me personally. To much we don't know, and what we do know about is done more easily, cheaper through other means. If you go with this, at least keep in mind that it's not intended to be your primary holding, just supplemental.
by digit8
Tue May 08, 2018 8:48 am
Forum: Investing - Help with Personal Investments
Topic: Emergency Fund Investment Plan
Replies: 24
Views: 2538

Re: Emergency Fund Investment Plan

OK, I'm probably going to get flamed for this but going to put it out there anyway . . . I don't have an "emergency fund", per se. Never have, never will. What I do have is a HELOC. I promise to try not to flame, because 95% of your reasoning makes perfect sense to me. Still, as a guy who spent mos...
by digit8
Thu Apr 26, 2018 7:58 am
Forum: Investing - Help with Personal Investments
Topic: Considering a CD ladder
Replies: 45
Views: 7250

Re: Considering a CD ladder

No, it's fine. You have some minor misconceptions (regarding the differences between bonds and bond funds), but that's OK. +1 on both counts. I think it's worth giving some serious thought to some of the counterpoints and alternative plans that have been proposed here- but in the end the CD ladder ...
by digit8
Wed Apr 11, 2018 8:48 am
Forum: Investing - Help with Personal Investments
Topic: Emergency Fund Investing
Replies: 24
Views: 2113

Re: Emergency Fund Investing

I call it the passive/agressive approach: 6 months in an MMSA, with regular additional deposits. Once it gets to a decent amount above 6 months worth- usually $500 bucks or so- I move the excess into a taxable S&P 500 fund.
by digit8
Tue Mar 27, 2018 11:58 am
Forum: Investing - Theory, News & General
Topic: [Vanguard sends out erroneous "not enough money in settlement fund" notice]
Replies: 94
Views: 6826

Re: Concerns with Vanguard

As far as security concerns go, I've worked at financial instituions my whole life and the major ones all have similar strengths and concerns. There is a case for diversifying to reduce the risk of losing everything to one hacker- but a counter argument that it's in effect multiplying the number of ...
by digit8
Tue Mar 27, 2018 8:36 am
Forum: Investing - Help with Personal Investments
Topic: Is anyone buying CDs now instead of I bonds?
Replies: 22
Views: 3660

Re: Is anyone buying CDs now instead of I bonds?

You can't really know what the optimal choice is until after the fact. But I've gone from being a die-hard I Bond advocate to thinking it's not worth the hemming and hawing about the difference between the two. Sure, inflation could go crazy high, but it could also continue to be unexpectedly low- a...
by digit8
Tue Feb 27, 2018 9:45 am
Forum: Investing - Theory, News & General
Topic: What exactly happened in Japan...and can it happen here?
Replies: 52
Views: 10569

Re: What exactly happened in Japan...and can it happen here?

Can it happen here? Yes, anything can. Is it likely enough to be in my Top 10 or 20 worries? No. Tough to talk about without straying into politics, but for the most part you're talking about two countries with significant differences in their national economy, and majorly different roles in the wor...
by digit8
Tue Feb 27, 2018 9:36 am
Forum: Investing - Theory, News & General
Topic: Are CD's or "savings accounts" allowed in 403b's?
Replies: 19
Views: 1019

Re: Are CD's or "savings accounts" allowed in 403b's?

No dig on the OP's perfectly valid and reasonable question- but I'd argue it's an interesting picture of a general mood shift, how we've gone from multiple (so many!) threads with versions of "should we invest more in foreign equities?" to multiple takes on "Bonds or CD's?" (not exactly the OP's poi...
by digit8
Mon Feb 19, 2018 4:53 pm
Forum: Investing - Help with Personal Investments
Topic: Sell me on the benefits of an emergency fund
Replies: 119
Views: 7741

Re: Sell me on the benefits of an emergency fund

On an emotional level, however, being able to write a check and be done with the financial piece of a major crisis can be a lifesaver. In my experience, when the basement is flooded or the car is crashed or the kid is in the hospital, the very last thing I'm up for is the self-inflicted additional ...
by digit8
Mon Feb 19, 2018 11:27 am
Forum: Investing - Help with Personal Investments
Topic: Sell me on the benefits of an emergency fund
Replies: 119
Views: 7741

Re: Sell me on the benefits of an emergency fund

On a logical level, there is a point where emergency funds aren't a requirement. On an emotional level, however, being able to write a check and be done with the financial piece of a major crisis can be a lifesaver. In my experience, when the basement is flooded or the car is crashed or the kid is i...
by digit8
Sat Feb 10, 2018 10:19 am
Forum: Investing - Help with Personal Investments
Topic: CD Ladder or Treasuries ?
Replies: 17
Views: 2263

Re: CD Ladder or Treasuries ?

I think I Bonds make sense before Treasuries. Split your savings between I Bonds and CD's and you've got a pretty good "safe" portfolio.
by digit8
Fri Feb 02, 2018 11:49 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Market Index Fund vs. CDs?
Replies: 33
Views: 6332

Re: Total Bond Market Index Fund vs. CDs?

I started with a taxable CD ladder as an emergency fund but kept up the practice of shoveling spare funds into it until it grew well beyond 6 months needs. I've found I sleep quite comfortably at night counting that money toward the bond portion of my AA.
by digit8
Tue Jan 23, 2018 8:13 pm
Forum: Investing - Theory, News & General
Topic: Vanguard CEO - "4-4.5% Market Returns Over The Next Decade"
Replies: 35
Views: 5674

Re: Vanguard CEO - "4-4.5% Market Returns Over The Next Decade"

Just felt like tossing this one out there for general consumption and conversation... Vanguard CEO Tim Buckley has just stated he believes the market will return a paltry 4 - 4.5% return over the next decade on a 60 stock /40 bond portfolio. Any thoughts on this? Mainly "ugh"- less about me agreein...
by digit8
Mon Jan 01, 2018 7:10 pm
Forum: Investing - Theory, News & General
Topic: Savings Bond Wizard to be eliminated 5/18
Replies: 68
Views: 12550

Re: Savings Bond Wizard to be eliminated 5/18

Whakamole wrote:
Mon Jan 01, 2018 10:45 am
I get the distinct impression that so few people use savings bonds now, which is why they are scaling down services. I would not be surprised if they started grandfathering these.
Is there any kind of public record of how much money has gone into I Bonds?
by digit8
Wed Dec 27, 2017 9:28 am
Forum: Investing - Help with Personal Investments
Topic: Creating a Mid-Tier Emergency Fund
Replies: 21
Views: 2715

Re: Creating a Mid-Tier Emergency Fund

Honestly? I've tried probably every possible option (I Bonds, CD's, bond funds, etc) and after letting them run for awhile discovered the increased returns were negligible. Certainly, not worth the time and trouble I put into research, rate hunting, and generally trying to squeeze every last dollar ...
by digit8
Sat Dec 23, 2017 8:10 am
Forum: Investing - Theory, News & General
Topic: Saving for the crash
Replies: 58
Views: 8099

Re: Saving for the crash

I was on another forum mostly unrelated to investment, and a bunch of people were saying that they're setting aside a large amount of cash for the next big market crash (e.g., 2008). I think I know what folks will say about this plan (e.g., money not making money while you wait), but I'd love to he...
by digit8
Sat Dec 16, 2017 11:13 am
Forum: Investing - Help with Personal Investments
Topic: I bonds: Should I put money on I bonds rather than keep them in a savings account
Replies: 26
Views: 4028

Re: I bonds: Should I put money on I bonds rather than keep them in a savings account

If you use a bucket system to keep some cash available for at least the initial 12 month period, I Bonds make an all-around superior savings account- big purchases, emergency funds, and any other purpose you want your money kept ultra safe.
by digit8
Sat Aug 12, 2017 5:54 pm
Forum: Investing - Help with Personal Investments
Topic: Where To Put My Emergency Fund?
Replies: 58
Views: 6927

Re: Where To Put My Emergency Fund?

I love the idea of Ibonds....but moved my emergency fund over to a CD which takes additional deposits and has a small penalty for breaking it,held in the same credit union as my checking. Just decided the tradeoff of possibly losing some inflation protection for a simpler way to track everything was...
by digit8
Sat Aug 05, 2017 5:55 pm
Forum: Investing - Help with Personal Investments
Topic: Stock market bubble
Replies: 26
Views: 3405

Re: Stock market bubble

My wife and I just hit our 15th anniversary so I was looking at our investment returns over the same period (we have an age difference so I review and consider making AA adjustments around the anniversary instead of one of our birthdays). Lo and behold, despite having barely reduced my stock allocat...
by digit8
Sat Jul 29, 2017 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Should emergency funds be included in AA?
Replies: 45
Views: 3537

Re: Should emergency funds be included in AA?

I don't include it. What's the worst that could happen, I wake up one morning and find out I can retire slightly earlier then I thought because I didn't have as many emergencies as I thought I would?
by digit8
Sun Jul 23, 2017 11:34 am
Forum: Investing - Help with Personal Investments
Topic: When doing retirement planning, do you count your spouse's savings?
Replies: 42
Views: 5108

Re: When doing retirement planning, do you count your spouse's savings?

My wife has a state pension and 403(b) plan that I do not count in our retirement planning- partly because I'm just too lazy to figure out how to best add it in, partly because I figure it never hurts to have a hedge compensating for the (IMHO) overly rosy projections of some retirement calculators.
by digit8
Sun Jul 02, 2017 11:44 am
Forum: Investing - Help with Personal Investments
Topic: When, if ever, does it make sense to cease contributing the 401K max?
Replies: 40
Views: 6354

Re: When, if ever, does it make sense to cease contributing the 401K max?

Sounds like it doesn't apply in your case, but there are plenty of employers whose 401k options are sufficiently terrible to make taxable investing a better option. There are still a sadly large variety of outfits sticking with high-cost, low performing options because corporate cut a deal, or becau...
by digit8
Sat Jun 24, 2017 9:29 am
Forum: Investing - Theory, News & General
Topic: "Home Bias Blues: Investors really should get out more. The reasons for sticking to local stocks are fewer by the day."
Replies: 52
Views: 6008

Re: "Home Bias Blues: Investors really should get out more. The reasons for sticking to local stocks are fewer by the da

TYes, the United States has done remarkably well in the last century, but the United Kingdom looked a lot more certain in the 100 years before that. Financial empires fall -- whether corporate or political -- I am not willing to bet on the longevity of any particular empire. Although it hasn't (yet...
by digit8
Sun Apr 09, 2017 11:40 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard funds for emergency cash
Replies: 14
Views: 2454

Re: Vanguard funds for emergency cash

I'd go money market. Why take even the tiniest chances when you have plans to tuck the money away in (IMHO) the perfect cash vehicle before too much longer?
by digit8
Sun Apr 09, 2017 11:37 am
Forum: Investing - Help with Personal Investments
Topic: Timing of I-bonds purchase
Replies: 27
Views: 4363

Re: Timing of I-bonds purchase

I put money in I bonds purely as emergency funds, planning (hoping) that I won't be touching the money for 10, 20 years. I haven't yet seen a jump in the rates between 6 month periods that has been big enough where I felt salty about it, that if I'd just waited it would have really made a major impa...
by digit8
Sun Feb 26, 2017 12:31 pm
Forum: Investing - Help with Personal Investments
Topic: What Amount of My Bonds Should Be I Bonds?
Replies: 10
Views: 1654

Re: What Amount of My Bonds Should Be I Bonds?

Don't get caught up in small details. Your portfolio will likely outweigh Ibond allocations by a good bit. You're doing fine. I-bond will do what they're meant do - provide inflation risk protection to your portfolio, and will likely not have the same returns as a regular bond funds. Consider using...
by digit8
Sat Jan 14, 2017 10:15 am
Forum: Investing - Help with Personal Investments
Topic: Pay off HELOC instead of having an EF?
Replies: 11
Views: 1056

Re: Pay off HELOC instead of having an EF?

I don't keep much cash by choice. I have a HELOC, a margin credit line, and credit cards. All of which may not be there when you need them or at least not a reasonable cost. If your home value drops your HELOC credit line may be cut... When it became clear just how bad 2008 was going to be, the fin...
by digit8
Wed Dec 28, 2016 6:45 am
Forum: Investing - Theory, News & General
Topic: Does Vanguard always have our best interests in mind?
Replies: 55
Views: 5571

Re: Does Vanguard always have our best interests in mind?

To paraphrase Churchill, I think Vanguard is the worst place to invest, except for all the other places. I think the OP is representative exactly of the spectrum of reactions from consumers one might expect when dealing with abusiness (of any kind) that's doing it's job- the first three paragraphs b...
by digit8
Fri Dec 16, 2016 4:39 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone hiding out in short term CDs while rates rise?
Replies: 47
Views: 5326

Re: Anyone hiding out in short term CDs while rates rise?

Nope. My bonds are all TBM and TIPs in my 401k. Worst case I'm buying on sale for a year or two.
by digit8
Thu Nov 24, 2016 9:58 am
Forum: Investing - Theory, News & General
Topic: TIPS vs. I-Bonds: any reason to prefer TIPS?
Replies: 20
Views: 4264

Re: TIPS vs. I-Bonds: any reason to prefer TIPS?

I'm thinking about gradually replacing a TIPS bond ladder in my IRA with an equivalent amount in I-Bonds outside the IRA instead. Can't do it all at once because of the $10K annual purchase limit for I-Bonds but over time I'll be able to do it. The purpose of the TIPS ladder (or I-Bonds) is to prov...
by digit8
Sun Nov 13, 2016 10:28 am
Forum: Investing - Help with Personal Investments
Topic: Warren Buffett Does Recommend The 90/10 Portfolio
Replies: 30
Views: 5511

Re: Warren Buffett Does Recommend The 90/10 Portfolio

Although enough intelligent people have had enough interpretations of this piece of advice to make me wary of any cut and dried take on it, I can see a big missing piece if we take this as advice for everyone. To make this a practical option, the investor has to make sure they are socking away plent...
by digit8
Wed Nov 09, 2016 7:34 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Total Bond - Not reccomended by Swedroe??
Replies: 50
Views: 13449

Re: Vanguard Total Bond - Not reccomended by Swedroe??

I'm not a fan of funds like TBM - I want my bond allocation (which I actually think of low-risk vs risk assets) to be lower risk and less corporates/ABS/MBS etc. I buy intermediate term treasuries, CDs and short-term corporate bonds (rated A- to AAA) for this part of my portfolio. If I'm driving fo...
by digit8
Sun Nov 06, 2016 2:03 pm
Forum: Investing - Help with Personal Investments
Topic: Can Bank Change CD Terms Mid-Stream?
Replies: 40
Views: 4411

Re: Can Bank Change CD Terms Mid-Stream?

It would be very odd for a bank or credit union not to have an innocuous looking "subject to change" clause, if not in specific account agreements then in the original paperwork to start using that institution. It's rare to see something like this enacted, but I'd expect when you talk to the bank th...
by digit8
Sun Sep 25, 2016 2:05 pm
Forum: Investing - Theory, News & General
Topic: Merriman knocks TSM
Replies: 34
Views: 5451

Re: Merriman knocks TSM

Ten funds vs the simple 3 fund portfolio? The question is, is the the 3 fund good enough. The answer is yes. I submit that the lovely thing about Marketwatch's tracking of Lazy Portfolios is how well it illustrates that once you get past the basic idea- broad market indexes and diverse asset alloca...
by digit8
Sat Sep 17, 2016 11:41 am
Forum: Investing - Help with Personal Investments
Topic: Warren Buffett Loves The S&P 500?
Replies: 14
Views: 2668

Re: Warren Buffett Loves The S&P 500?

I would have a tough time picking another single fund that would be a better suggestion in the context where he normally presents it- brief blurbs that will be converted to one sentence or paragraph for an undefined audience on web sites and news shows. Someone not interested in investing at all who...
by digit8
Mon Sep 12, 2016 5:44 pm
Forum: Investing - Theory, News & General
Topic: The "No Bonds" portfolio
Replies: 100
Views: 25034

Re: The "No Bonds" portfolio

I'd love to follow Zvi Bodie and max out Ibond purchases for my working life. Throw in enough to my workplace plan to get matching funds, put that entirely to stocks, and I'd face retirement with nary a twinge about at least a minimal comfort level. Not quite willing to bet on my income and options ...
by digit8
Mon Sep 12, 2016 5:39 pm
Forum: Investing - Theory, News & General
Topic: Two Different Worlds
Replies: 12
Views: 2165

Re: Two Different Worlds

I don't know that's it's useful but it is interesting to play with the dates a bit. Set it to make like you started investing at the worst of the dot-com bust and watch your money grow!
by digit8
Sun Sep 11, 2016 9:26 am
Forum: Investing - Help with Personal Investments
Topic: leaving vanguard due to math errors / poor customer service?
Replies: 107
Views: 16119

Re: leaving vanguard due to math errors / poor customer service?

Every Brokerage makes some mistakes, and everyone Should double check balances. +1, and that goes for any kind of financial account. A pattern of bad experiences is reasonable cause to jump ship, but nobody should assume that everything is hunky dory with the new guys. I've been in financial servic...
by digit8
Sat Aug 27, 2016 10:12 pm
Forum: Investing - Help with Personal Investments
Topic: Do you count your emergency fund?
Replies: 45
Views: 4280

Re: Do you count your emergency fund?

I wouldn't suggest a person consider anything they might need to dip into for small emergencies as part of their AA simply because those kinds of things tend to happen more often then we realize. It can be disheartening to see your overall financial plan take a hit on paper every time your car engin...
by digit8
Sat Aug 27, 2016 10:01 pm
Forum: Investing - Theory, News & General
Topic: The Core Four
Replies: 320
Views: 192668

Re: The Core Four

Bumping this topic to see if we can get some current comments on using- Vanguard Target fund and add REIT to the mix to simplify the portfolio selection for the Core 4 or is individual ETF/fund selection still the way to go? Thanks, Not optimal but potentially workable if that's the way it has to b...
by digit8
Sun Aug 07, 2016 9:50 am
Forum: Investing - Theory, News & General
Topic: et tu, Vanguard? Stock/Bond zig-zag myth
Replies: 58
Views: 7021

Re: et tu, Vanguard? Stock/Bond zig-zag myth

You all use too big of words for me. I know I'm missing something. But Being 90% stocks for more then 40 years, I'm a lot richer then using bonds. This year I'm up 9%. Over 7 years close to 1m. I'm a simple man that thinks bonds are not needed. I just stay in SP500, total stock market, and a few ot...