Search found 557 matches

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: 2666

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: 291
Views: 167003

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: 4439

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...
by digit8
Sun Jul 17, 2016 2:21 pm
Forum: Investing - Theory, News & General
Topic: "How saving too much can make your retirement less satisfying"
Replies: 52
Views: 7580

Re: "How saving too much can make your retirement less satisfying"

Simply being conscious of my spending, particularly non-tangible value received for value given, is the only way I've really found to try and watch out for this particular risk. I don't always lay it out quite so starkly- "Is this money that might keep me from begging on the streets at 65?"...
by digit8
Sun Jul 10, 2016 10:46 am
Forum: Investing - Help with Personal Investments
Topic: Putting Your Emergency Fund In I Bonds?
Replies: 28
Views: 3614

Re: Putting Your Emergency Fund In I Bonds?

Some people just plain hate to put money into such boring things and say that in an emergency they can "always" use their home equity lines of credit, or their credit cards. I think this is foolish both of them can, and during 2006-2009 often were , terminated by banks on short notice. Du...
by digit8
Sun Jun 05, 2016 9:48 am
Forum: Investing - Theory, News & General
Topic: Be thankful you are not a pension fund, WSJ
Replies: 47
Views: 6866

Re: Be thankful you are not a pension fund, WSJ

But I bet a lot of your coworkers are not prepared to manage their own "pension fund" or 401k. I think the entire Boglehead community is an outlier relative to the general population in this respect. +1. IMHO, anyone arguing for a single answer on retirement is doing what a teacher of min...
by digit8
Tue May 31, 2016 5:43 pm
Forum: Investing - Help with Personal Investments
Topic: Roll call Warren Buffet 90/10 portfolio
Replies: 55
Views: 6007

Re: Role call Warren Buffet 90/10 portfolio

What short-term bond fund(s) do you use? I had been using Vanguard's Short-Term Bond index, but I've mostly transitioned over to using Series I Savings Bonds, I expect to primarily use those along with high-yield bank bank/money market account. I'd argue that going ibonds makes the 90/10 option mor...
by digit8
Tue May 17, 2016 3:10 pm
Forum: Investing - Theory, News & General
Topic: The inventor of the 401(k) says he created a ‘monster’
Replies: 28
Views: 5005

Re: The inventor of the 401(k) says he created a ‘monster’

A bit misleading for the sake of a snappy title, throwing back to a 5 year old quote while the current interview reflects that he "hasn't lost faith", but okay. As to the 401(k)...-shrugs-. It addresses a part of a problem that has no single, total fix at this point. Not everyone can count...
by digit8
Tue May 03, 2016 5:27 am
Forum: Investing - Theory, News & General
Topic: I Bond rates for May 1 announced
Replies: 65
Views: 10484

Re: I Bond rates for May 1 announced

Is anyone continuing to buy at these rates? My credit union has a change machine that direct deposits to my savings, I empty that every month into Ibonds regardless of the rate. Just like having a portion of my emergency fund that's 1)as safe as reasonably possible and 2) needs no extra work from m...
by digit8
Sun Apr 17, 2016 9:36 pm
Forum: Investing - Theory, News & General
Topic: Do Lazy Portfolio's work with Active Funds?
Replies: 4
Views: 610

Re: Do Lazy Portfolio's work with Active Funds?

To paraphrase Napoleon, you need to work with the options you have, not the options you want. Investing in the lowest-cost, closest equivalent asset class to the one you want is not optimal, but it is a fact of life for many investors in your situation. Definitely though, that would be a strong argu...
by digit8
Sun Apr 03, 2016 7:03 pm
Forum: Investing - Theory, News & General
Topic: Who needs Money Market accounts any more?
Replies: 55
Views: 6628

Re: Who needs Money Market accounts any more?

As large as Vanguard is, I have to believe that multi-day delays in ACH debits and credits are something Vanguard chooses to do (or not do). +1. I work in a financial institution that went from multi day to next-day ACH capabilities, and is now looking into same-day. It's just a question of cost an...
by digit8
Sun Apr 03, 2016 9:36 am
Forum: Investing - Theory, News & General
Topic: Jack Bogle - Two Fund Portfolio
Replies: 43
Views: 6474

Re: Jack Bogle - Two Fund Portfolio

It isn't remotely practicable for us due to our different workplace retirement plans, but in retirement I'd love to keep our investments to TSM and TBM. Backed with reasonable amount of savings, maybe a CD ladder, I can't imagine I'd need anything else. My kids, I'd recommend a healthy dose of inter...
by digit8
Sun Apr 03, 2016 9:31 am
Forum: Investing - Theory, News & General
Topic: Who needs Money Market accounts any more?
Replies: 55
Views: 6628

Re: Who needs Money Market accounts any more?

I've found Prime useful at least from a mental accounting perspective. It takes distributions from my taxable S&P 500 account, with a monthly deposit of my guesstimate difference between the distributions and next years Roth IRA limit. Every January I fund the IRA and move the difference back to...
by digit8
Tue Mar 15, 2016 1:49 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Index 500 "good enough?"
Replies: 15
Views: 2012

Re: Vanguard Index 500 "good enough?"

500 is arguably the quintessential "good enough" fund. There are just very few situations where putting some money into it is an actively dumb idea. That said, with the level of other investing you describe, it might be worthwhile to give more detail about your situation for more tax-savvy...
by digit8
Mon Mar 14, 2016 9:31 am
Forum: Investing - Help with Personal Investments
Topic: Are CDs Becoming A Worse Investment?
Replies: 40
Views: 4918

Re: Are CDs Becoming A Worse Investment?

My problem with CDs is that they require too much work. With bonds, you choose a suitable Vanguard fund and you are done. With CDs, you monitor the web for the best rates of the day, check your the eligibility for credit union CDs, check early withdrawal penalties, try to estimate how much to put i...
by digit8
Sun Feb 28, 2016 1:00 pm
Forum: Investing - Help with Personal Investments
Topic: Why have an emergency fund if portfolio is big enough?
Replies: 75
Views: 6817

Re: Why have an emergency fund if portfolio is big enough?

At a certain point an emergency fund for me became less about necessity and more about convenience. I've got taxable equities sufficient for a good long period of expenses even accounting for a sudden drop in the market- but I keep moving money into my savings account. If some widget on the car dies...
by digit8
Sun Jan 24, 2016 10:40 am
Forum: Investing - Help with Personal Investments
Topic: I Bonds
Replies: 27
Views: 3249

Re: I Bonds

For me? Flexibility.Once the one year no-redemption period is cleared, one can reasonably consider I Bonds an emergency fund, a TIPS-alternative bond investment, or long term savings account for big ticket purchases. And as far as mental accounting goes, that purpose can easily be changed according ...
by digit8
Sat Jan 09, 2016 10:55 am
Forum: Investing - Theory, News & General
Topic: Is BNDX (total international bond) and its utilization in target date funds terrible?
Replies: 79
Views: 5284

Re: Is BNDX (total international bond) and its utilization in target date funds terrible?

It is terrible.
Not the fund itself, which has a strong if not completely convincing argument backing it.
But IMHO, a fund class that's been offered for a handful of years simply doesn't belong in a target fund. They are a safety zone, not a testing ground.
by digit8
Fri Jan 01, 2016 10:10 pm
Forum: Investing - Help with Personal Investments
Topic: Savings in CA Municipal Bonds
Replies: 5
Views: 594

Re: Savings in CA Municipal Bonds

What's the time frame for your purchase, and how solid is it? As a general rule, the more definite your plans are, the more safe your funds should be. If you're thinking you might start looking in 5 years, there is less of an argument against reaching for better returns than if you've got your eye o...
by digit8
Fri Jan 01, 2016 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: Are Bogleheads Buying I-Bonds 2016?
Replies: 85
Views: 12461

Re: Are Bogleheads Buying I-Bonds 2016?

I'm a huge fan of I Bonds, and when I can, buy regardless of current rates with a "keep for 30" mentality (though the flexibility to withdraw earlier is one of the reasons I like them). However, this year I'm expecting a number of big ticket expenses- the car and the roof are both likely t...
by digit8
Thu Dec 31, 2015 7:07 pm
Forum: Investing - Help with Personal Investments
Topic: Total Bond Market or CD Ladder.
Replies: 8
Views: 1509

Re: Total Bond Market or CD Ladder.

I'd consider TBM one of the few reasonable choices for a stand-alone fixed equity holdings. But I'd back it up with, say, 20% in CD's before the most commonly suggested secondary holdings like the International Bond fund.
by digit8
Fri Dec 25, 2015 9:29 am
Forum: Investing - Theory, News & General
Topic: Bogle: "We Need to Fix the Bond Index"
Replies: 46
Views: 4470

Re: Bogle: "We Need to Fix the Bond Index"

For every person who feels TBM is Treasury heavy, I know someone who feels like it's Treasury light.....the mark of a good compromise is when nobodys happy.
by digit8
Sun Dec 13, 2015 5:02 pm
Forum: Investing - Theory, News & General
Topic: Recession on the Horizon - Sensationalist Noise or Actionable Information?
Replies: 36
Views: 4295

Re: Recession on the Horizon - Sensationalist Noise or Actionable Information?

Actionable if it's were the case? Meh. If I was about to retire and saw 2008 Part 2 (Electric Boogaloo) coming down the pike, I might have to sit down and do some thinking. Even then, though, it would be more about adjustments to cash and spending plan than investments. And at 20-some years minimum ...
by digit8
Wed Dec 09, 2015 7:15 pm
Forum: Investing - Theory, News & General
Topic: Impact of Fed rate increase on CDs?
Replies: 12
Views: 1953

Re: Impact of Fed rate increase on CDs?

I have a PenFed 5 year CD maturing in about a week. If I follow my plan, I will roll it over to a Navy Federal Credit Union (NFCU) 5 year CD since NFCU is currently paying about 1/2% more than PenFed. However, neither rate is great.. Navy right now has a deal on a minimum $5,000.00 certificate for ...
by digit8
Fri Dec 04, 2015 9:16 am
Forum: Investing - Theory, News & General
Topic: Vanguard sued for [failing to charge market rates to and then paying taxes on services to its mutual funds]
Replies: 781
Views: 127103

Re: Vanguard sued for [failing to charge market rates to and then paying taxes on services to its mutual funds]

digit8 (great handle!), Vanguard reports its expense ratios after the fact, because only then does it know for sure what the at-cost expenses added up to. PJW Ditto, and thanks to you and Epislon for the information. Also, since the CA tax board has come up, I have to say I place zero faith in thei...
by digit8
Thu Dec 03, 2015 11:34 pm
Forum: Investing - Theory, News & General
Topic: Vanguard sued for [failing to charge market rates to and then paying taxes on services to its mutual funds]
Replies: 781
Views: 127103

Re: Might Vanguard owe $35 BILLION in back taxes?

To make this actionable, I'm wondering if anyone thinks it might be worthwhile to move at least some of their money from Vanguard to, say, Fidelity. Keep an index fund, low fee approach, but shield one's assets from this potential liability. On the other hand, what's the risk in waiting to see if V...
by digit8
Wed Dec 02, 2015 4:56 pm
Forum: Investing - Theory, News & General
Topic: Yahoo, a sad story and a good reason not to buy single stocks
Replies: 14
Views: 4136

Re: Yahoo, a sad story and a good reason not to buy single stocks

Today being the 10th anniversary of Enron declaring bankruptcy is another....
by digit8
Mon Nov 30, 2015 6:45 pm
Forum: Investing - Theory, News & General
Topic: Everything in Vanguard?
Replies: 14
Views: 3671

Re: Everything in Vanguard?

As far as security from hacking, fraud, etc, it's a glass half empty/half full argument. Splitting your assets with, say, Fidelity can be seen as both reducing your risk(It's very unlikely that both will be hacked at the same time), and in some ways increasing your risk (a hacker might be successful...
by digit8
Thu Nov 19, 2015 7:25 pm
Forum: Investing - Help with Personal Investments
Topic: The future for TIPS (VIPSX)
Replies: 22
Views: 2959

Re: The future for TIPS (VIPSX)

My question is why you have a financial adviser you don't listen to. I figure either you get someone you trust and whose philosophy aligns with yours, or you fly solo, but maybe that's just me. +1 and from the sound of it, I'd vote fly solo. It sounds like you two are doing just fine and the struct...
by digit8
Wed Nov 18, 2015 2:42 pm
Forum: Investing - Theory, News & General
Topic: Emergency Portfolio with 30% Stocks
Replies: 53
Views: 5763

Re: Emergency Portfolio with 30% Stocks

The concept of a separate emergency fund is just a bookkeeping and mental construct, sometimes made more real by actually having a separate account for it. +1....although the emotional rewards can be worth it. I'll always maintain there are few moments in life more satisfying then dealing with a ma...
by digit8
Mon Nov 16, 2015 6:50 pm
Forum: Investing - Help with Personal Investments
Topic: Shady behavior by Fidelity...sneaking sector funds into target date funds.
Replies: 35
Views: 3759

Re: Shady behavior by Fidelity...sneaking sector funds into target date funds.

nisiprius wrote:Just to be clear: I do not think Fidelity was being "shady" in including them.


Same here. I ran from the fund as soon as the addition was announced- but it was announced, and there was some logic and investor benefit behind it, just nothing I agreed with.
by digit8
Sat Nov 14, 2015 8:20 pm
Forum: Investing - Theory, News & General
Topic: "Why Have TIPS Been Such Poor Performers?"
Replies: 13
Views: 2624

Re: "Why Have TIPS Been Such Poor Performers?"

So is this an argument that, if you really want to get the full intended benefits of TIPS, you need to buy individually and hold for their life, rather than buy into a fund?
by digit8
Sat Nov 14, 2015 8:14 pm
Forum: Investing - Help with Personal Investments
Topic: Shady behavior by Fidelity...sneaking sector funds into target date funds.
Replies: 35
Views: 3759

Re: Shady behavior by Fidelity...sneaking sector funds into target date funds.

I think Fidelity added commodities to their target date funds way back , maybe in 2008 or 2009 or so. The percentage depended on the retirement years. Correct- I remember distinctly because Fidelity Freedom was my sole 401k holding at the time.This (and other) changes convinced me to do a major por...
by digit8
Thu Nov 12, 2015 11:45 am
Forum: Investing - Theory, News & General
Topic: Bloomberg Business - The Five Biggest Myths About Saving Money, According to a Millennial
Replies: 13
Views: 4099

Re: Bloomberg Business - The Five Biggest Myths About Saving Money, According to a Millennial

Obviously, I'm on board with challenging the Latter Factor. Some of the specifics are debatable, but the gist of it- take advantage of your youth, figure out what you really want, start dipping your toes into finance ASAP to do both of the former- makes sense.
by digit8
Wed Nov 04, 2015 7:08 pm
Forum: Investing - Theory, News & General
Topic: Why is the expense ratio .16 for the Prime MM?
Replies: 13
Views: 2044

Re: Why is the expense ratio .16 for the Prime MM?

It's high for -most- Vanguard funds, but consistent with their other MM funds. Only the Federal and (closed) Treasury versions are lower. I'd consider that a vote for the "nature of the beast" angle, with the two exceptions probably tied to the highly specified risk/reward profile (tough t...
by digit8
Wed Nov 04, 2015 6:48 pm
Forum: Investing - Theory, News & General
Topic: I-Bond Reality Check
Replies: 10
Views: 2374

Re: I-Bond Reality Check

But you can also make partial redemptions on I-bonds, so I probably wouldn't buy 500 separate I-bonds unless you have a particularly compelling reason. +1. Allowable but not desirable. Ibond interest is monthly. Timing purchases for the end of a month and redemptions for the start of one maximize i...
by digit8
Sun Nov 01, 2015 5:52 pm
Forum: Investing - Help with Personal Investments
Topic: TBM and Inflation-protected Securities
Replies: 18
Views: 1466

Re: TBM and Inflation-protected Securities

TIPS make a good "second step" bond fund, since they are not a part of the Total Bond portfolio and as Nisiprius points out have some potential to boost your bond returns. I'm going to predict, however, that you will get at least a few responses saying you should look into adding an intern...
by digit8
Wed Oct 28, 2015 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: I-Savings Bonds
Replies: 53
Views: 7775

Re: I-Savings Bonds

I have up to now bought in small chunks every month, but got tired of it for reasons of bookeeping and aesthetics (Treasury Direct is clunky enough without trying to work through 25+ distinct entries). With the current zero rate I emptied out with a 3 month penalty of nothing, and starting January I...
by digit8
Sun Oct 18, 2015 1:16 pm
Forum: Investing - Theory, News & General
Topic: Is it risky to keep entire nest egg at a single brokerage?
Replies: 20
Views: 3142

Re: Is it risky to keep entire nest egg at a single brokerage?

We've already seen what overseas criminal hackers can do. What we haven't seen is what highly capable foreign governments can do when in open conflict with the United States. It is well-known that US military power derives from US economic power. If you want to inflict great pain to the American pe...
by digit8
Sat Oct 17, 2015 10:14 am
Forum: Investing - Theory, News & General
Topic: Is it risky to keep entire nest egg at a single brokerage?
Replies: 20
Views: 3142

Re: Is it risky to keep entire nest egg at a single brokerage?

I think splitting investments is a reasonable idea, so long as one remembers that one is changing the risk, not removing it. Split your money between two brokerages, and you're not keeping half of it "safe". You're exposing both halves to about the same potential of hacking, scamming, etc....
by digit8
Fri Oct 16, 2015 10:20 am
Forum: Investing - Help with Personal Investments
Topic: Where to place emergency fund
Replies: 20
Views: 2596

Re: Where to place emergency fund

My point was with the fixed rates. My checking account does better now than the current fixed rate ever will. Unless you're going to have problems with the $15K/year limit, there really is no advantage to purchasing an I bond today. The fixed rate is, historically, a very minor factor in Ibond retu...
by digit8
Thu Oct 15, 2015 6:30 pm
Forum: Investing - Help with Personal Investments
Topic: Where to place emergency fund
Replies: 20
Views: 2596

Re: Where to place emergency fund

I generally agree with the I bonds, but not at the moment since both inflation is low and the fixed rate is at 0%. This may change next month, but I doubt it. If/when rates improve, then you should look closer at I bonds but now it's not really worth your time. To me it's not worth worrying about c...
by digit8
Thu Oct 15, 2015 5:27 pm
Forum: Investing - Theory, News & General
Topic: Use Target Date fund as part of lazy portfolio?
Replies: 18
Views: 1941

Re: Use Target Date fund as part of lazy portfolio?

We were forced into doing something like this for awhile- my 401k's target fund was the best of an extremely bad lot. My personal preferences about the specifics aside, (5% of REITS seems like like plenty to me, and paying .18% vs. .05% for what starts as basically TSM with a few percent of other st...
by digit8
Wed Oct 14, 2015 1:03 pm
Forum: Investing - Theory, News & General
Topic: Bill Gross sues Pimco
Replies: 46
Views: 5437

Re: Bill Gross sues Pimco

Rule one: Never leave your employer until AFTER the bonus you are expecting has been paid. I remember one of the first books covering the crisis (blanking on the title) started with what was described as a common scene at brokerage houses, of employees lining up on Bonus Day while on their cells ac...
by digit8
Mon Oct 12, 2015 9:24 pm
Forum: Investing - Theory, News & General
Topic: New York Times Article -- Risk of Indexing
Replies: 43
Views: 7867

Re: New York Times Article -- Risk of Indexing

Only interesting tidbit is the mention that indexing is about 30% of the market at this point. Granted, most of my reading on investing is index-friendly so I'm biased, but that number still seems really low..... Helpful figure to point to the next time a "what happens if everybody indexes"...
by digit8
Mon Oct 12, 2015 1:26 pm
Forum: Investing - Theory, News & General
Topic: Blog: The Coffeehouse portfolio
Replies: 16
Views: 3660

Re: Blog: The Coffeehouse portfolio

Wow. Those returns are excellent since 1991. Does anyone have a link to a similar returns chart (from the article) based on the 3 fund portfolio? Kensters Marketwatch link includes the option to compare the Coffehouse with 7 other Lazy Portfolios, including a couple takes on the 3 fund. Scott Burn'...
by digit8
Thu Oct 01, 2015 12:25 pm
Forum: Investing - Theory, News & General
Topic: You won't get to the Promised Land by investing in stocks
Replies: 139
Views: 13135

Re: You won't get to the Promised Land by investing in stocks

By chance I've known a few people who hit the articles definition of the promised land, and they are welcome to it for what it cost them. The financial freedom to do work I like, take the wife out now and then, and leave a little something to charity is more than sufficent, thanks.
by digit8
Tue Sep 29, 2015 5:14 pm
Forum: Investing - Theory, News & General
Topic: International diversification may not be good for US retirees
Replies: 71
Views: 6009

Re: International diversification may not be good for US retirees

Keep in mind, this is just about retirees in the withdrawal phase, not someone age 30 with a very long horizon and deep risk of long-term underperformance of any given country. +1. I must confess I'm flummoxed at how rarely time frame of the investor comes up in the (many) versions of this discussi...
by digit8
Tue Sep 29, 2015 4:23 pm
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 291
Views: 32074

Re: TIPS - Did you give up?

I'm more delayed then given up. Slowly converting my paranoia-level emergency fund to IBonds has me feeling pretty well covered, at least for the next few years. Vaguely planning to switch to buying TIPS instead of more Total Bond as my AA begins to do the last big shift to retirement at T minus 10 ...
by digit8
Mon Sep 28, 2015 6:20 pm
Forum: Investing - Theory, News & General
Topic: Which single book would you recommend for an investing novice?
Replies: 35
Views: 3417

Re: Which single book would you recommend for an investing novice?

Toons wrote:"The Only Investment Guide You'll Ever Need"
Andrew Tobias.
Easy Read.Classic

+1. As a one and done book for newbies that intend to never go any further with the subject, there is nothing that manages to be so comprehensive yet entertaining.

Go to advanced search