Search found 710 matches

by pascalwager
Fri Dec 09, 2016 12:12 am
Forum: Investing - Theory, News & General
Topic: Bonds - Throw it all on the table!!!
Replies: 152
Views: 22577

Re: Bonds - Throw it all on the table!!!

1) Vanguard ST and IT Treasury Funds, 50:50 (IRA).
2) DFA Global Bond (VA).
3) HY Savings (taxable)

The bonds are 5% and savings 15% of portfolio. Overall AA is 80/5/15.
by pascalwager
Mon Dec 05, 2016 5:59 pm
Forum: Investing - Theory, News & General
Topic: Israelsen's Research on International Bonds
Replies: 8
Views: 650

Re: Israelsen's Research on International Bonds

My DFA bond funds have been loaded with int'l govt/credit bonds since I began investing and I never thought much about it, but the durations are short. Never more than four years. The Vanguard int'l bond fund is 7.9 years duration--too long for me.
by pascalwager
Sat Dec 03, 2016 5:26 pm
Forum: Investing - Theory, News & General
Topic: What percentage of international do you hold?
Replies: 127
Views: 5692

Re: What percentage of international do you hold?

I've always held int'l at about 50% of equities in my major accounts since 1995 except for my deferred comp at 30% int'l. Then I rolled over the deferred comp account at retirement into a Vanguard IRA at 50% int'l. So now I'm at 50% int'l overall. As a retiree I could reasonably reduce int'l, but I ...
by pascalwager
Wed Nov 30, 2016 2:09 pm
Forum: Investing - Theory, News & General
Topic: Paul Merriman challenges John Bogle
Replies: 157
Views: 12248

Re: Paul Merriman challenges John Bogle

I've worked out my own way of dealing with the tilting-vs-total market issue, which probably comes from my own peculiar psychology. I run two separate equity sub-portfolios: about 2/3 tilted (self-managed DFA) and 1/3 total global market (Vanguard). The fractions weren't predetermined. Now a retiree...
by pascalwager
Mon Nov 07, 2016 2:15 am
Forum: Investing - Theory, News & General
Topic: Foreign Stocks: Keep the Faith - Jonathan Clements
Replies: 53
Views: 5700

Re: Foreign Stocks: Keep the Faith - Jonathan Clements

Some investors are reluctant to invest in int'l companies (which may also have US operations). I suppose some of these investors might even appreciate a "Deep US" index which excludes domestic companies which also have int'l operations. I suppose such an index might have a strong small cap...
by pascalwager
Tue Nov 01, 2016 11:35 pm
Forum: Investing - Theory, News & General
Topic: How much international?
Replies: 78
Views: 6284

Re: How much international?

I went to the DFA website to find the Eugene Fama/Ken French approach to global asset allocation. An optimal portfolio, different for every investor, is the ideal, but turns out to be a real "brain twister" (Fama) because of taxable or tax-sheltered accounts, individual taste for risk, and...
by pascalwager
Sun Oct 30, 2016 2:31 am
Forum: Investing - Theory, News & General
Topic: How much international?
Replies: 78
Views: 6284

Re: How much international?

I've always been around 50/50 (US/int'l). Originally, 51/49 and 47/53 for two DFA accounts started in 1995. According to a tutorial supplied by the investment company, 50/50 was the optimum split for the 22 years preceding January 1994. (This investment company had recently convinced DFA to go beyon...
by pascalwager
Thu Oct 27, 2016 9:50 pm
Forum: Investing - Help with Personal Investments
Topic: What's going on with VGSLX? [Vanguard REIT Index Fund]
Replies: 14
Views: 1975

Re: What's going on with VGSLX? [Vanguard REIT Index Fund]

I recall that Bill Bernstein and Larry Swedroe observed that the REIT fund was getting expensive a few years ago and personally vacated their own positions. If you had been around to read various BH posts about the REIT fund in the recent past, or had done a search, you might have been reluctant to ...
by pascalwager
Sun Oct 23, 2016 11:58 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Total World Stock Index Fund Review
Replies: 44
Views: 6910

Re: Vanguard Total World Stock Index Fund Review

Why not a multifactor global fund like ACWF. You invest globally but in a basket of stocks selected to assure exposure in value, size, quality, and momentum. If you believe in the academic work, is this not a step closer to the ideal equity investment? It has a tilt to mid-caps and away from large-...
by pascalwager
Sun Oct 23, 2016 11:39 am
Forum: Investing - Theory, News & General
Topic: VTRIX (Vanguard International Value) history?
Replies: 13
Views: 1505

Re: VTRIX (Vanguard International Value) history?

Why use a value benchmark when the fund is usually managed without a value tilt, or at least from 2012 through 2015?
by pascalwager
Sat Oct 22, 2016 7:48 am
Forum: Investing - Theory, News & General
Topic: VTRIX (Vanguard International Value) history?
Replies: 13
Views: 1505

Re: VTRIX (Vanguard International Value) history?

Hi: The Vanguard Variable Annuity offers an international stock subaccount that mirrors the Vanguard International Growth Fund. Both subaccount and fund are managed by Schroder Investment Management North America Inc. and Baillie Gifford Overseas Ltd. The portfolio managers of both funds are Simon ...
by pascalwager
Sat Oct 22, 2016 2:28 am
Forum: Investing - Theory, News & General
Topic: VTRIX (Vanguard International Value) history?
Replies: 13
Views: 1505

Re: VTRIX (Vanguard International Value) history?

It's not always a value fund, or so it seems, looking at recent M* style boxes (2012--2015). More of a blend fund. I suspect it's managed as a blend fund when value is doing poorly. Paul Merriman used it in some of his Vanguard index fund (mainly) model portfolios. Also, its the only int'l fund in t...
by pascalwager
Thu Oct 20, 2016 12:58 pm
Forum: Investing - Help with Personal Investments
Topic: Is Buffett's 90/10 Asset Allocation Sound?
Replies: 61
Views: 7188

Re: Is Buffett's 90/10 Asset Allocation Sound?

Here's an article by Javier Estrada on the Buffet Portfolio: http://blog.iese.edu/jestrada/files/2016/03/Buffett-AA.pdf Includes a couple "twists" (tweaks: T1 and T2) to improve performance and downside protection. The bonds used for all portfolio allocations in the Estrada study are T-Bil...
by pascalwager
Wed Oct 19, 2016 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: Is Buffett's 90/10 Asset Allocation Sound?
Replies: 61
Views: 7188

Re: Is Buffett's 90/10 Asset Allocation Sound?

...conversation many years ago with a very nice Vanguard CFP. I pointed out my apparently very adequate total savings and my 30% allocation of Vanguard's intermediate term bond fund. Then I asked her if it would be reasonable to switch over to Vanguard's long-term bond fund in order to achieve high...
by pascalwager
Wed Oct 19, 2016 3:55 pm
Forum: Investing - Help with Personal Investments
Topic: Is Buffett's 90/10 Asset Allocation Sound?
Replies: 61
Views: 7188

Re: Is Buffett's 90/10 Asset Allocation Sound?

Going below 60/40 would seem to be foolish as failure rate actually increases! Some of the "DFA advisors" say the same thing.
by pascalwager
Wed Oct 19, 2016 3:34 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Total World Stock Index Fund Review
Replies: 44
Views: 6910

Re: Vanguard Total World Stock Index Fund Review

Total World allows you to stop obsessing over ratio of US/international equities to hold and will rebalance them for you. That would discourage market timing, and allow you to view all the stocks in the funds as businesses you have a share in, instead of viewing them through the prism of their curr...
by pascalwager
Mon Oct 17, 2016 11:54 pm
Forum: Investing - Theory, News & General
Topic: International Equities
Replies: 5
Views: 1036

Re: International Equities

No, but I was considering adjusting my allocation using 47% as the market starting point and applying various factors. But I finally decided to leave it at 50%, where it's approximately been since 1995. I'm always hesitant to reduce int'l because I would be selling low and buying high. My initial ac...
by pascalwager
Mon Oct 17, 2016 11:35 pm
Forum: Investing - Theory, News & General
Topic: Why Not Holding LONG-Term BOND Funds For Long Time During Work Years?
Replies: 31
Views: 2713

Re: Why Not Holding LONG-Term BOND Funds For Long Time During Work Years?

Looking at the entire portfolio and not just the LT bonds: for an equity-heavy portfolio the volatility is determined mainly by the equities and not by the LT bonds. This applies for portfolios of 80% stocks and higher according to research by Larry Swedroe and an associate. So, the term risk of suc...
by pascalwager
Sun Oct 16, 2016 7:03 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Total World Stock Index Fund Review
Replies: 44
Views: 6910

Re: Vanguard Total World Stock Index Fund Review

Any thoughts on using the Vanguard Total World Stock Index Fund (VTWSX) as your sole stock fund? Are there any concern one might have with having both U.S and International stocks all in one fund? Yes, concerns. First, philosophically I agree with you and in fact I have invested precisely this way ...
by pascalwager
Wed Oct 12, 2016 4:12 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable account help: switching from DFA
Replies: 8
Views: 680

Re: Taxable account help: switching from DFA

This may give you some rough ideas on how to proceed. I have two DFA accounts and separated from my advisor about five years ago. I'm able to make purchases in one account only and make changes in that account for rebalancing between the two accounts. I have DFA large value, targeted value, microcap...
by pascalwager
Tue Oct 11, 2016 3:53 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Total World Stock Index Fund Review
Replies: 44
Views: 6910

Re: Vanguard Total World Stock Index Fund Review

reriodan wrote:It is THE most Boglehead thing you could hold. :beer


Almost, but using two total market funds is even more Bogleheadish due to reduced ER--that is, if low cost beats simplicity. :D
by pascalwager
Tue Oct 11, 2016 3:48 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Total World Stock Index Fund Review
Replies: 44
Views: 6910

Re: Vanguard Total World Stock Index Fund Review

I use Vanguard Total World Stock Index for the majority of my stock investments, and I will use it exclusively by the end of the year. First, about costs. Vanguard reports that the Spliced Total World Stock Index returned 4.68% since the inception of the fund, while the fund returned 4.65%. This is...
by pascalwager
Mon Oct 10, 2016 7:53 pm
Forum: Investing - Help with Personal Investments
Topic: Stubbornly Ultra conservative, Non-Boglehead Husband. What to do?
Replies: 50
Views: 6196

Re: Stubbornly Ultra conservative, Non-Boglehead Husband. What to do?

Your husband has a low risk tolerance, so he's probably not going to abandon his "mattress" savings approach. So, why not take an overall family portfolio approach and do a family-wide Larry Portfolio, and he doesn't even need to know. You can do this by investing all of your contributions...
by pascalwager
Sun Oct 09, 2016 1:03 pm
Forum: Investing - Theory, News & General
Topic: Avoid International?
Replies: 103
Views: 9756

Re: Avoid International?

I keep the market-weighted amount of international. I just look at vanguard total world stock index and use the US allocation vs all others to get a reasonable percentage. Right now its about 54.5% US to 45.5% Intl. ... Could you please show me where you can see this? I'm looking at the Vanguard pa...
by pascalwager
Sat Oct 08, 2016 12:00 am
Forum: Investing - Theory, News & General
Topic: 30 yr TIPS Auction: Announced 10/13: yield 0.6%?
Replies: 66
Views: 5466

Re: 30 yr TIPS Auction: Announced 10/13: yield 0.6%?

Why would you not be willing to take market risk and thus get the return associated with it at age 22? That makes no sense. You need to take market risk during accumulation, especially early in your career. You have the time to recover from any associated setbacks and the higher expected return is ...
by pascalwager
Fri Oct 07, 2016 2:04 pm
Forum: Investing - Theory, News & General
Topic: 30 yr TIPS Auction: Announced 10/13: yield 0.6%?
Replies: 66
Views: 5466

Re: 30 yr TIPS Auction: Announced 10/13: yield 0.6%?

I don't think Zvi Bodie expects us to plan to fund our LMP TIPS purchases with a stock-based retirement fund full of market risk. He wants us to establish a six-month emergency account composed of I Bonds and then begin to save in a way that eliminates market and inflation risk from Day One, say age...
by pascalwager
Wed Oct 05, 2016 4:20 pm
Forum: Investing - Theory, News & General
Topic: reit allocation
Replies: 30
Views: 2687

Re: reit allocation

Do you figure a REIT into your stock allocation or your bond allocation? I've seen it done both ways in investment books. Or should a REIT be allocated as a separate entity in a portfolio? Not a stock and not a bond but a separate fund. It seems to me that a REIT is a stock so should be part of you...
by pascalwager
Mon Oct 03, 2016 12:49 pm
Forum: Investing - Theory, News & General
Topic: Which Bond Fund As Emergency Fund?
Replies: 39
Views: 4020

Re: Which Bond Fund As Emergency Fund?

For me, HY savings are the "new bonds". Why take interest rate risk for such low bond yields nowadays, when you can get similar interest (1.05%) in an online savings account? So, most of my "bonds" and all emergency money is mixed together in the same online savings account up to...
by pascalwager
Thu Sep 29, 2016 2:23 am
Forum: Investing - Theory, News & General
Topic: reit allocation
Replies: 30
Views: 2687

Re: reit allocation

Do you figure a REIT into your stock allocation or your bond allocation? I've seen it done both ways in investment books. Or should a REIT be allocated as a separate entity in a portfolio? Not a stock and not a bond but a separate fund. It seems to me that a REIT is a stock so should be part of you...
by pascalwager
Thu Sep 29, 2016 2:06 am
Forum: Investing - Theory, News & General
Topic: Warren Buffett recommends putting 90% in S&P500 index fund, 10% in Bond index
Replies: 51
Views: 7517

Re: Warren Buffett recommends putting 90% in S&P500 index fund, 10% in Bond index

I can't believe the controversy this simple portfolio stirs up on this board. With all the wacky tilting strategies people propose on here, I would think this would be pretty plain vanilla... There's lots of people around here who want to tell you why their advice for what you should do is somehow ...
by pascalwager
Sun Sep 25, 2016 8:53 pm
Forum: Investing - Theory, News & General
Topic: Do Bogleheads Bucket?
Replies: 89
Views: 8020

Re: Do Bogleheads Bucket?

The problem with balanced funds for retirees is being forced to withdraw from stocks when the market is down. A balanced fund would be rebalancing from bonds to stocks as stocks decline. The net effect would be withdrawing from bonds only. This is not different from holding a stock fund and a bond ...
by pascalwager
Sun Sep 25, 2016 4:25 pm
Forum: Investing - Theory, News & General
Topic: Do Bogleheads Bucket?
Replies: 89
Views: 8020

Re: Do Bogleheads Bucket?

The problem with balanced funds for retirees is being forced to withdraw from stocks when the market is down. A balanced fund would be rebalancing from bonds to stocks as stocks decline. The net effect would be withdrawing from bonds only. This is not different from holding a stock fund and a bond ...
by pascalwager
Sun Sep 25, 2016 10:44 am
Forum: Investing - Theory, News & General
Topic: Do Bogleheads Bucket?
Replies: 89
Views: 8020

Re: Do Bogleheads Bucket?

I had a consultation with a financial advisor recently (totally free through my credit union, and she didn't try to sell me anything... :happy ). One of the things she did at one point was draw three circles on a piece of paper. One of them was "cash", about 1 years worth of expenses, one...
by pascalwager
Sun Sep 25, 2016 10:41 am
Forum: Investing - Theory, News & General
Topic: Do Bogleheads Bucket?
Replies: 89
Views: 8020

Re: Do Bogleheads Bucket?

I had a consultation with a financial advisor recently (totally free through my credit union, and she didn't try to sell me anything... :happy ). One of the things she did at one point was draw three circles on a piece of paper. One of them was "cash", about 1 years worth of expenses, one...
by pascalwager
Tue Sep 20, 2016 2:04 am
Forum: Investing - Theory, News & General
Topic: WSJ: Bank Balance better predictor of happiness than Total Wealth
Replies: 43
Views: 6500

Re: WSJ: Bank Balance better predictor of happiness than Total Wealth

This is nuts. Who, rich or poor, keeps a lot of money in a bank account?? Certainly not the wealthy. Association does not equal causation. "Research" like this gives real research a bad name. The current weighted yield of combined (to shorten duration) one-half VG short-term Treasury and ...
by pascalwager
Tue Sep 20, 2016 1:16 am
Forum: Investing - Theory, News & General
Topic: WSJ: Bank Balance better predictor of happiness than Total Wealth
Replies: 43
Views: 6500

Re: WSJ: Bank Balance better predictor of happiness than Total Wealth

We barely have more than $200 in our checking accounts at any given time. :D EVERYTHING goes into savings. If something comes up, we grudgingly pull it out from the savings. But we don't keep money unnecessarily in pitiful checking. I remember once finding an ATM slip at the local gas-beer-live bai...
by pascalwager
Fri Sep 16, 2016 12:48 am
Forum: Investing - Theory, News & General
Topic: Disappointing News Wells Fargo
Replies: 111
Views: 9673

Re: Disappointing News Wells Fargo

In the past, Wells Fargo encouraged me to add accounts. I only remember that one account would have been especially useful if I were traveling in Central America, which was unlikely, and another if I decided to purchase Vanguard funds through Wells Fargo. Another account served as a hub for four oth...
by pascalwager
Fri Aug 26, 2016 11:55 am
Forum: Investing - Theory, News & General
Topic: Damodaran: CAPE is no-good horrible & a market timing spreadsheet
Replies: 25
Views: 2888

Re: Damodaran: CAPE is no-good horrible & a market timing spreadsheet

Not a passive investor. Isn't satisfied with future market returns and picks companies.
by pascalwager
Wed Aug 24, 2016 12:56 am
Forum: Investing - Help with Personal Investments
Topic: Annuity for 28 Year Old Hippie
Replies: 41
Views: 4823

Re: Annuity for 28 Year Old Hippie

A friend's younger brother came to me for advice upon receiving a sizeable (mid six figures) financial inheritance. Suffice it to say that this young man fits the profile of someone who will blow through these funds within a couple years, at most. He has minimal income from part-time minimum wage j...
by pascalwager
Thu Aug 18, 2016 2:45 pm
Forum: Investing - Theory, News & General
Topic: Dividends, and the curse of popularity
Replies: 91
Views: 6958

Re: Dividends, and the curse of popularity

The article's contention that the preference for dividends is misguided is, in my opinion, wrong. It depends what you consider to be the purpose of a corporation. I think a mature public corporation exists for the purpose of paying out a portion of its earnings anually to its owners. A start up or ...
by pascalwager
Tue Aug 16, 2016 12:35 pm
Forum: Investing - Theory, News & General
Topic: Fixed income strategy
Replies: 17
Views: 1860

Re: Fixed income strategy

According to David Swensen: REITs are midway between bonds and stocks, a hybrid. So returns should be expected to fall between bonds and stocks.
by pascalwager
Sun Aug 14, 2016 2:26 am
Forum: Investing - Theory, News & General
Topic: Dr Bernstein: Limit Muni Bond Exposure
Replies: 110
Views: 14238

Re: Dr Bernstein: Limit Muni Bond Exposure

It's my understanding that Dr (William) Bernstein is now recommending that investors limit their taxable fixed income holdings to no more than 50% muni bonds. The rest should be treasuries and/or FDIC bank CDs. This seems like new advice. I wonder what the other great minds here think about this. A...
by pascalwager
Sun Aug 07, 2016 1:18 pm
Forum: Investing - Theory, News & General
Topic: Why 30% Money Market in an "Income" Fund
Replies: 16
Views: 1376

Re: Why 30% Money Market in an "Income" Fund

Fidelity freedom index seems to be the only mf company that does this to such a marked degree. I like their TR index funds until they get close to retirement, but that much cash just doesn't make sense to me. Yet another reason that you always look at a Target Date funds composition, not just its d...
by pascalwager
Sun Aug 07, 2016 1:26 am
Forum: Investing - Theory, News & General
Topic: Why 30% Money Market in an "Income" Fund
Replies: 16
Views: 1376

Re: Why 30% Money Market in an "Income" Fund

Looks like the short term funds are being used to determine (shorten) the overall duration of the fixed income components (76%).
by pascalwager
Sun Aug 07, 2016 12:59 am
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 98
Views: 10883

Re: How much international stock? A suggestion.

sometimes I wonder if Elon Musk opens a branch of the New York Stock Exchange on Mars, everyone will feel the need to add Interplanetary diversification to their portfolio.. <sigh> Feelings would be irrelevant. The solar market would determine its identity as, perhaps, an emerging market. Then it m...
by pascalwager
Sat Aug 06, 2016 11:00 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 98
Views: 10883

Re: How much international stock? A suggestion.

I like Larry Swedroe's reasoning: Start at global market weighting and then add/subtract after considering personal liabilities. Presently, international is 46% of global, so I hold 50% international after considering certain personal cash flows subject mainly to domestic risks. Because internationa...
by pascalwager
Sat Jul 30, 2016 1:22 am
Forum: Investing - Theory, News & General
Topic: Help me learn to love my taxable account
Replies: 27
Views: 3562

Re: Help me learn to love my taxable account

My first stocks account was taxable. I had lump-summed a few $100k from my T-Bill collecting career. A little later I began to play catchup in a tax-sheltered account.

Also, my advisor did no TLHing, maybe because he only used DFA funds.
by pascalwager
Sat Jul 02, 2016 7:22 pm
Forum: Investing - Theory, News & General
Topic: International Bonds - Update
Replies: 55
Views: 4847

Re: International Bonds - Update

I have a little money (0.4%) in the DFA five-year global bond fund which has four-year duration. I might add another 0.4% every so often by selling stocks if I'm so inclined. I mainly view bonds as stabilizers, not income producers. I wouldn't use the Vanguard Int'l Index fund--too much duration for...
by pascalwager
Fri Jul 01, 2016 5:02 pm
Forum: Investing - Theory, News & General
Topic: Equities = musical chairs?
Replies: 93
Views: 4345

Re: Equities = musical chairs?

The OP probably wasn't investing using BH principles. She was probably selecting stocks and market timing. But she declines to discuss this, so we can only assume. Once the esteemed Taylor Larimore adopted passive investing principles, he experienced good success over the decades. If there were no s...
by pascalwager
Thu Jun 30, 2016 11:43 am
Forum: Investing - Theory, News & General
Topic: Tilts?
Replies: 32
Views: 1713

Re: Tilts?

Most of my portfolio is tilted--two DFA accounts set up in 1995. In fact, every component fund is either a small or value fund except for the emerging markets fund. The other 1/3 of my portfolio is comprised of Vanguard total market funds. This overall approach satisfies me, although I kind of backe...

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