Search found 737 matches

by pascalwager
Mon Jan 23, 2017 9:11 pm
Forum: Investing - Theory, News & General
Topic: David Swensen says No to Municipal Bonds
Replies: 21
Views: 2591

Re: David Swensen says No to Municipal Bonds

Most Bogleheads don't hold tax-exempt bonds; most Bogleheads don't have any substantial taxable portfolio at all so they can comfortably fit any bonds in tax-deferred space. But, yes, I doubt many (any?) Bogleheads with large taxable portfolios follow Swensen on this one. I have munis as my taxable...
by pascalwager
Sat Jan 21, 2017 10:24 pm
Forum: Investing - Theory, News & General
Topic: should I try to replicate total stock market in my 401k with S&P, small, and mid caps?
Replies: 9
Views: 615

Re: should I try to replicate total stock market in my 401k with S&P, small, and mid caps?

I'd probably do something like 70/20/10 and use the quarterly automated rebalancing option if you have that. If not, then just do annual rebalancing for less stress.
by pascalwager
Fri Jan 20, 2017 9:58 pm
Forum: Investing - Theory, News & General
Topic: "Stealth Wealth: I’m Just an Ordinary Average Guy"
Replies: 319
Views: 49567

Re: "Stealth Wealth: I’m Just an Ordinary Average Guy"

Great news, Bogleheads! Yet another doctor with a website (Smart Money MD) has weighed in on the topic. Stealth Wealth Revisited -- This Applies to Doctors, Too! If you'd rather not click -- and I know many of you would rather not -- I'll share the comment I left here, which was partially shaped by...
by pascalwager
Fri Jan 20, 2017 9:30 pm
Forum: Investing - Theory, News & General
Topic: "Stealth Wealth: I’m Just an Ordinary Average Guy"
Replies: 319
Views: 49567

Re: "Stealth Wealth: I’m Just an Ordinary Average Guy"

I find this whole thread (though I didn't read every page/post) fascinating and filled with bizarre claims and judgments about money and happiness. Happiness is too subjective to be tied in any objective way to money/spending. It's a Zen thing. Who am I to say to say that the guy who spends $80k on...
by pascalwager
Fri Jan 20, 2017 7:11 pm
Forum: Investing - Theory, News & General
Topic: "Stealth Wealth: I’m Just an Ordinary Average Guy"
Replies: 319
Views: 49567

Re: "Stealth Wealth: I’m Just an Ordinary Average Guy"

I find this whole thread (though I didn't read every page/post) fascinating and filled with bizarre claims and judgments about money and happiness. Happiness is too subjective to be tied in any objective way to money/spending. It's a Zen thing. Who am I to say to say that the guy who spends $80k on...
by pascalwager
Thu Jan 19, 2017 9:12 pm
Forum: Investing - Theory, News & General
Topic: "Stealth Wealth: I’m Just an Ordinary Average Guy"
Replies: 319
Views: 49567

Re: "Stealth Wealth: I’m Just an Ordinary Average Guy"

Isn't it kind of insulting to people who are struggling when financially independent people dress up and play poor? Isn't there some middle ground between "dress up and play poor" and "engage in conspicuous consumption?" It's as if you've created some kind of false dichotomy whe...
by pascalwager
Wed Jan 18, 2017 3:14 am
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 9
Views: 2299

Re: Bill Sharpe's preferred portfolio

The last I heard, the world stock/bond ratio was about 40/60. This would constitute Sharpe's risky portfolio. Alongside would be his riskless portfolio, TIPS.

He recommends this mainly for older investors. Younger investors might want more stocks and less TIPS.
by pascalwager
Tue Jan 17, 2017 11:07 am
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 9
Views: 2299

Re: Bill Sharpe's preferred portfolio

Thanks for the link. Sounds like Mr. Sharpe would be happy with one of Vanguard's target-date or LifeStrategy funds as the main course, with a helping of TIPS on the side. He wants VG to create a fund-of-funds using the four US/int'l total market stock/bond funds. Sharpe personally used CRSP and FT...
by pascalwager
Mon Jan 16, 2017 3:24 am
Forum: Investing - Theory, News & General
Topic: "Stealth Wealth: I’m Just an Ordinary Average Guy"
Replies: 319
Views: 49567

Re: "Stealth Wealth: I’m Just an Ordinary Average Guy"

I come out only at night, but still remain in the shadows. My last car was almost 24 years old. I'm in my 70's, but still wear some clothes from high school. When my sneakers are ready for the trash, I just use them for yard work. I dislike redeeming any portfolio assets and consider portfolio grow...
by pascalwager
Sun Jan 15, 2017 10:36 pm
Forum: Investing - Theory, News & General
Topic: "Stealth Wealth: I’m Just an Ordinary Average Guy"
Replies: 319
Views: 49567

Re: "Stealth Wealth: I’m Just an Ordinary Average Guy"

I come out only at night, but still remain in the shadows. My last car was almost 24 years old. I'm in my 70's, but still wear some clothes from high school. When my sneakers are ready for the trash, I just use them for yard work. I dislike redeeming any portfolio assets and consider portfolio grow...
by pascalwager
Sun Jan 15, 2017 12:50 am
Forum: Investing - Theory, News & General
Topic: Bogle says 50-50 short/intermediate bonds
Replies: 45
Views: 5499

Re: Bogle says 50-50 short/intermediate bonds

I just stick with the Total Bond Market Index and hope for the best. So far it has done what it is supposed to do for me. Also, Vanguard still has faith in this fund because it is used in all their Target Date Funds, Lifestyle Funds and the Balanced Index mimics it. John Bogle has often said the av...
by pascalwager
Sat Jan 14, 2017 11:14 pm
Forum: Investing - Theory, News & General
Topic: "Stealth Wealth: I’m Just an Ordinary Average Guy"
Replies: 319
Views: 49567

Re: "Stealth Wealth: I’m Just an Ordinary Average Guy"

I come out only at night, but still remain in the shadows. My last car was almost 24 years old. I'm in my 70's, but still wear some clothes from high school. When my sneakers are ready for the trash, I just use them for yard work. I dislike redeeming any portfolio assets and consider portfolio growt...
by pascalwager
Sat Jan 14, 2017 9:52 pm
Forum: Investing - Theory, News & General
Topic: Bogle says 50-50 short/intermediate bonds
Replies: 45
Views: 5499

Re: Bogle says 50-50 short/intermediate bonds

Does anyone know what rationale Jack Bogle gave for holding a 50:50 portfolio of short and intermediate bond funds (a recommendation that I agree with)? I cannot find a transcript or video of his conversation that deal with those specific comments.The available documentation only deals with his com...
by pascalwager
Fri Jan 13, 2017 4:21 pm
Forum: Investing - Theory, News & General
Topic: Bogle says 50-50 short/intermediate bonds
Replies: 45
Views: 5499

Re: Bogle says 50-50 short/intermediate bonds

I just stick with the Total Bond Market Index and hope for the best. So far it has done what it is supposed to do for me. Also, Vanguard still has faith in this fund because it is used in all their Target Date Funds, Lifestyle Funds and the Balanced Index mimics it. John Bogle has often said the av...
by pascalwager
Fri Jan 13, 2017 4:19 pm
Forum: Investing - Theory, News & General
Topic: Bogle says 50-50 short/intermediate bonds
Replies: 45
Views: 5499

Re: Bogle says 50-50 short/intermediate bonds

@pascalwager That' a very large slug of cash. Why so much? galeno, Yes, I'm about 80/5/15, stocks/bonds/cash. I'm not much of a bonds guy and naturally gravitate towards a portfolio that's comprised of equity risk and ultra short-term risk (T-Bills, savings, I-Bonds). Because T-Bill rates are low, ...
by pascalwager
Fri Jan 13, 2017 3:24 am
Forum: Investing - Theory, News & General
Topic: Bogle says 50-50 short/intermediate bonds
Replies: 45
Views: 5499

Re: Bogle says 50-50 short/intermediate bonds

@pascalwager That' a very large slug of cash. Why so much? galeno, Yes, I'm about 80/5/15, stocks/bonds/cash. I'm not much of a bonds guy and naturally gravitate towards a portfolio that's comprised of equity risk and ultra short-term risk (T-Bills, savings, I-Bonds). Because T-Bill rates are low, ...
by pascalwager
Thu Jan 12, 2017 6:13 pm
Forum: Investing - Theory, News & General
Topic: Bogle says 50-50 short/intermediate bonds
Replies: 45
Views: 5499

Re: Bogle says 50-50 short/intermediate bonds

If things go well in the USA the FED will probably raise interest rates 25 bp three times during 2017. Our FI (55% bonds + 5% cash) allocation's duration = 5.5 yr. Should we shorten it to 4.0 yr by holding 40% bonds + 20% cash? As a retiree, I've been using ~4 years bonds duration for some time now...
by pascalwager
Thu Jan 12, 2017 4:18 am
Forum: Investing - Theory, News & General
Topic: Vanguard International Index Returns
Replies: 20
Views: 2825

Re: Vanguard International Index Returns

Phineas, thank you very much for your perspective and the links. I guess I do suffer from recency bias, if losing to TSM for 20 years (and counting) is just a short blip in your investing career. Definitely from loss aversion! It wasn't a huge mistake, but an unnecessary one, especially for a Bogle...
by pascalwager
Mon Jan 09, 2017 2:20 am
Forum: Investing - Theory, News & General
Topic: Fama interview
Replies: 3
Views: 882

Re: Fama interview

Important survey of the development of financial/portfolio theory. May want to watch several times.

The part about personal portfolios:

1. Hold the market portfolio (most investors), but do it cheaply (Vanguard, etc.)
2. Maybe tilt a little to small/value, but must be highly diversified.
by pascalwager
Mon Dec 26, 2016 12:19 am
Forum: Investing - Theory, News & General
Topic: What is an authoritative source for the ratio of the sizes of the U.S. and international markets?
Replies: 17
Views: 1029

Re: What is an authoritative source for the ratio of the sizes of the U.S. and international markets?

I use the monthly data here to calculate my target domestic/international developed/international emerging splits. http://us.spindices.com/index-family/global-equity/global-bmi I know Ketawa has been doing this monthly for years for his tilted portfolio, so he's probably an authority on the process...
by pascalwager
Mon Dec 19, 2016 11:51 pm
Forum: Investing - Theory, News & General
Topic: Bonds Can Be More Dangerous Than Stocks??
Replies: 31
Views: 3709

Re: Bonds Can Be More Dangerous Than Stocks??

John Rekenthaler (Morningstar) concludes: "There are times—many times—in which bonds can be more dangerous than stocks. That is information worth knowing, for anybody who owns a bond-heavy portfolio." If it's actually worth knowing, then maybe some of the following, or combinations thereof...
by pascalwager
Mon Dec 19, 2016 12:04 am
Forum: Investing - Theory, News & General
Topic: Charles Schwab Experiences?
Replies: 43
Views: 3805

Re: Charles Schwab Experiences?

Had a custodial account there since 1995. Customer service excellent (sharp people), and good online functions.
by pascalwager
Sat Dec 17, 2016 2:48 am
Forum: Investing - Theory, News & General
Topic: International Bond Fund
Replies: 7
Views: 1090

Re: International Bond Fund

Alexa, For one thing, the Vanguard Int'l Bond Fund duration is too long for me. I like about four years (compromise between inflation/reinvestment risks) as per Larry Swedroe. Also, I don't care for credit risk, but will tolerate it in one of the short-term Gene Fama-designed DFA global funds (no ca...
by pascalwager
Fri Dec 16, 2016 8:06 pm
Forum: Investing - Theory, News & General
Topic: Ellis: "Under 40 years old - 100% in Stocks"
Replies: 54
Views: 5669

Re: Ellis: "Under 40 years old - 100% in Stocks"

This post could as well be titled "Under 70 years old - 100% in Stocks". Later, a few years after the linked article, when interviewed at an airport, Ellis recommended 100% stocks up to age 70--and then gradually adding bonds if you think you need them . Also, Ellis considers your working ...
by pascalwager
Thu Dec 15, 2016 3:23 am
Forum: Investing - Theory, News & General
Topic: Swedroe: "OK to sin...but sin only a little"
Replies: 51
Views: 6506

Re: Swedroe: "OK to sin...but sin only a little"

Came across this article by Larry Swedroe. He talks about overweighting areas of the market, but not to push it. This is the guy who advocates investing only in small value stocks and short term treasuries? Seems like the classic example of someone "pushing it." Just going from memory, bu...
by pascalwager
Wed Dec 14, 2016 11:31 pm
Forum: Investing - Theory, News & General
Topic: One fund for a person in retirement
Replies: 8
Views: 1578

Re: One fund for a person in retirement

Here's another approach, if you're getting old (I'm 74). 1) First, take a walk around the block--hopefully, forming a new habit. 2) Don't simplify your portfolio--instead, complicate it a little, especially in tax-deferred. For example, instead of total stock market, use large cap and extended marke...
by pascalwager
Fri Dec 09, 2016 12:12 am
Forum: Investing - Theory, News & General
Topic: Bonds - Throw it all on the table!!!
Replies: 158
Views: 24353

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: 706

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: 6242

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: 13249

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: 6349

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: 6818

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: 6818

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: 2161

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: 49
Views: 8339

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: 1632

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: 1632

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: 1632

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: 7628

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: 7628

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: 7628

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: 49
Views: 8339

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: 1067

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: 2790

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: 49
Views: 8339

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: 749

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: 49
Views: 8339

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: 49
Views: 8339

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: 6283

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...

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