Search found 655 matches

by pascalwager
Thu May 12, 2016 2:25 am
Forum: Investing - Theory, News & General
Topic: Classic Bernstein 2 — Choosing Portfolio Bond Duration
Replies: 41
Views: 5246

Re: Classic Bernstein 2 — Choosing Portfolio Bond Duration

Here's one BH who owns only Treasury funds (Short, Intermediate and TIPs) - purposely done for the reasons covered earlier in this thread: - I use bonds strictly as an an anchor for the equity side of the portfolio - If I want to take more risk in search of more return, I'll do so on the equity sid...
by pascalwager
Sat Apr 09, 2016 2:56 pm
Forum: Investing - Theory, News & General
Topic: Burton G. Malkiel - New advice for bond portfolios
Replies: 41
Views: 4861

Re: Burton G. Malkiel - New advice for bond portfolios

Malkiel is arguing for an overweight to credit risk. It is definitely an active call, but as far as active calls go it is not necessarily disastrous or wrong. Bogle has advocated for a credit tilt, too. This active call is not a huge break from Malkiel's previous thinking. He's also argued for a su...
by pascalwager
Sat Apr 09, 2016 2:42 pm
Forum: Investing - Theory, News & General
Topic: Burton G. Malkiel - New advice for bond portfolios
Replies: 41
Views: 4861

Re: Burton G. Malkiel - New advice for bond portfolios

Well, I misread Malkiel in the old days. It is easy to forget that in every edition, he has both advocated for index funds and expounded his own strategy for stockpicking. The first edition actually had a chapter entitled "The Malkiel Method for Selecting Individual Common Stocks" (encaps...
by pascalwager
Sun Apr 03, 2016 2:20 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle - Two Fund Portfolio
Replies: 28
Views: 3409

Re: Jack Bogle - Two Fund Portfolio

Warren Buffet does seem to really stand by the 10% short-term bonds (cash) figure. He followed up by saying, explicitly, that holding 20, 30, or 40% bonds is "silly". I believe what Buffet is leaving to his wife is 90% S&P 500 and 10% short term Treasuries? In any event her 10% short ...
by pascalwager
Sun Apr 03, 2016 10:38 am
Forum: Investing - Theory, News & General
Topic: Jack Bogle - Two Fund Portfolio
Replies: 28
Views: 3409

Re: Jack Bogle - Two Fund Portfolio

... I have a hard time seeing how most investors, for example, retirees with a 4% withdrawal rate, can comfortably weather a major downturn with only 10% in cash reserves. Buffett, as all right thinking people, recommends broad low cost index funds, but 99% of people shouldn't be 90% equities. As a...
by pascalwager
Sat Mar 26, 2016 9:58 pm
Forum: Investing - Theory, News & General
Topic: Malkiels Recommended Portfolio
Replies: 25
Views: 3728

Re: Malkiels Recommended Portfolio

In his latest book The Elements of Investing (written with Charles Ellis), they recommend a simple portfolio of Total World Stock Index and Total Bond Index. Malkiel recommends 75-90% in the stock fund for someone in their 20's and 30's. Ellis, who views inflation as a big threat, is more aggressiv...
by pascalwager
Sat Mar 26, 2016 12:07 pm
Forum: Investing - Theory, News & General
Topic: Malkiels Recommended Portfolio
Replies: 25
Views: 3728

Re: Malkiels Recommended Portfolio

In his latest book The Elements of Investing (written with Charles Ellis), they recommend a simple portfolio of Total World Stock Index and Total Bond Index. Malkiel recommends 75-90% in the stock fund for someone in their 20's and 30's. Ellis, who views inflation as a big threat, is more aggressiv...
by pascalwager
Sat Mar 19, 2016 3:38 pm
Forum: Investing - Theory, News & General
Topic: What bond funds do you use, and why?
Replies: 55
Views: 4037

Re: What bond funds do you use, and why?

Age 73: currently 90% stocks, 5% bonds, 5% cash. I have a pension that covers my living expenses, so all of the stocks are in my risk portfolio. The bonds are two VG short and intermediate Treasury funds allocated (approx. in a 1:2 ratio) to provide an overall duration of four years. The bonds/cash ...
by pascalwager
Wed Mar 09, 2016 1:14 pm
Forum: Investing - Theory, News & General
Topic: 100% US Equities argument: "We spend in Dollars"
Replies: 49
Views: 4648

Re: 100% US Equities argument: "We spend in Dollars"

I stumbled on a Warren Buffett interview recently that gives a little more information on his recommended 90/10 portfolio for individual investors (including, but not only, his wife). He states that the 10% short-term government bonds is to be used to provide living expenses when stocks are depresse...
by pascalwager
Sun Mar 06, 2016 1:53 am
Forum: Investing - Theory, News & General
Topic: When did various assets become "conventional wisdom?" Request for your input!
Replies: 20
Views: 2279

Re: When did various assets become "conventional wisdom?" Request for your input!

In 1995 I was exposed to the three-factor model through an investment tutorial booklet. This was soon after I had lumped-sum into two DFA accounts (and still have them). So I held international small company, US small company and US small value funds at that time. Then in 1997 the investment company...
by pascalwager
Sat Jan 16, 2016 3:51 pm
Forum: Investing - Theory, News & General
Topic: Fortune: Stock Tumble: If You're Reading This It Is Not Too Late
Replies: 23
Views: 4250

Re: Fortune: Stock Tumble: If You're Reading This It Is Not Too Late

...The fact is, most investors cannot tolerate the full brunt of a bear market psychologically, and will end up doing the perfectly wrong thing at the most inopportune time. You will see how many newly-minted Vanguardians and robo-clients vomit up their equity portfolios toward the end of whatever ...
by pascalwager
Tue Jan 12, 2016 11:47 pm
Forum: Investing - Theory, News & General
Topic: Sell everything! 2016 will be a 'cataclysmic year,' warns RBS
Replies: 78
Views: 9515

Re: Sell everything! 2016 will be a 'cataclysmic year,' warns RBS

I wonder why they're warning us and who they're actually addressing? The entire global investment community, or only RBS customers? After arriving at a very dismal conclusion about the prospects for the global economy, I guess the warning was simply a natural human response. I only begin to accept e...
by pascalwager
Sat Jan 09, 2016 12:22 am
Forum: Investing - Theory, News & General
Topic: I'm curious if over-weighting equity investors still ok?
Replies: 92
Views: 7301

Re: I'm curious if over-weighting equity investors still ok?

I'm 93% stocks. That's my risk portfolio (RP).

The remaining 7% bonds, plus checking and savings, plus my pension, is my liability matching portfolio (LMP).

My RP (100% stocks) can't be either under- or over-weighted--by definition.
by pascalwager
Tue Jan 05, 2016 4:43 pm
Forum: Investing - Theory, News & General
Topic: Boglehead Bond Barbell - why not more popular?
Replies: 26
Views: 4574

Re: Boglehead Bond Barbell - why not more popular?

I only use bond barbells to reduce the duration of the typical intermediate bond fund.
by pascalwager
Mon Jan 04, 2016 4:01 pm
Forum: Investing - Theory, News & General
Topic: At what age did you stop reinvesting dividends?
Replies: 45
Views: 4751

Re: At what age did you stop reinvesting dividends?

Still reinvesting dividends at age 73. I would probably be reluctant to take dividends (redeem stock shares) in a down market--i.e., selling low.
by pascalwager
Wed Dec 30, 2015 2:29 am
Forum: Investing - Theory, News & General
Topic: Thoughts on Bogle's bond portfolio advice?
Replies: 40
Views: 4274

Re: Thoughts on Bogle's bond portfolio advice?

Or, to keep investing simple, one could invest in Vanguard's Intermediate-Term Bond Index Fund, which is approximately a 50/50 split between Treasuries and Corporates. I would think this an even better idea. I haven't seen this fund before. This looks perfect! Not as risky as the investment grade f...
by pascalwager
Wed Dec 30, 2015 1:57 am
Forum: Investing - Theory, News & General
Topic: Thoughts on Bogle's bond portfolio advice?
Replies: 40
Views: 4274

Re: Thoughts on Bogle's bond portfolio advice?

Also, read what Mr. Bogle says in the Little Red Book about tailoring your own term risk. For example, a retiree might want to own more of the Short Term Bond Index Fund plus TBM. Straight TBM might be more appropriate for someone in their 50's. And he isn't really giving advice, just highlighting a...
by pascalwager
Mon Dec 28, 2015 12:44 pm
Forum: Investing - Theory, News & General
Topic: Why do we call it "investing"?
Replies: 35
Views: 3485

Re: Why do we call it "investing"?

Stock ownership (secondary market) is not investing, but it is the main investment enabler through price appreciation. The stock market incentivizes IPOs, which are the true investments. Without the secondary market, there would be no primary market. So stock ownership is still part of the investmen...
by pascalwager
Fri Dec 25, 2015 1:24 am
Forum: Investing - Theory, News & General
Topic: John Bogle Purist
Replies: 43
Views: 3813

Re: John Bogle Purist

I don't have a two-fund portfolio, but I do have two separate portfolios.

One portfolio is DFA (nine funds/two accounts) and the other is VG total market (TSM and TISM across three accounts). Both are managed separately. The DFA is twice as large as the VG.
by pascalwager
Tue Dec 22, 2015 11:01 pm
Forum: Investing - Theory, News & General
Topic: Share your current asset allocation?
Replies: 94
Views: 6621

Re: Share your current asset allocation?

Stocks (93%) 14.6% TSM 14.6% TISM 63.8% DFA (LV,SV,SC,ILV,ISC,EM) Bonds (7%) 1.7% ST Treasury bond fund 3.4% IT Treasury bond fund 1.9% US I Bonds 33% taxable, 67% tax-sheltered Age 73 with pension (intend to increase bonds to 10% if market doesn't beat me to it). Also have bank HY savings (1.05%) a...
by pascalwager
Tue Dec 22, 2015 8:56 pm
Forum: Investing - Theory, News & General
Topic: ETF or Fund - Which Do You Use?
Replies: 40
Views: 3271

Re: ETF or Fund - Which Do You Use?

I buy regular funds only. ETFs seem tricky to buy and seemingly have more complicated tax considerations.
by pascalwager
Tue Dec 22, 2015 8:39 pm
Forum: Investing - Theory, News & General
Topic: Opinions on Burton Malkiel's personal portfolio?
Replies: 28
Views: 3167

Re: Opinions on Burton Malkiel's personal portfolio?

Note: The article is from 2009. Also, I find it hard to believe the other portfolio is Larry's personal portfolio. I can't imagine him owning VG Value funds–large or small–when he has access to DFA and many others. The article only specifically says Malkiel's portfolio is in 2009 was his own. The o...
by pascalwager
Tue Dec 22, 2015 8:32 pm
Forum: Investing - Theory, News & General
Topic: Part 2 of the perfect storm post, how to increase EXPECTED returns
Replies: 118
Views: 10434

Re: Part 2 of the perfect storm post, how to increase EXPECTED returns

Larry's article could certainly be valuable to someone who needs a guide for determining his/her future AA.

I had one question about EM as 25% of int'l capitalization. The current VG TISM EM portion is 17.8%. Is the 25% figure some kind of long-term average?
by pascalwager
Tue Dec 22, 2015 8:21 pm
Forum: Investing - Theory, News & General
Topic: Opinions on Burton Malkiel's personal portfolio?
Replies: 28
Views: 3167

Re: Opinions on Burton Malkiel's personal portfolio?

Note: The article is from 2009. Also, I find it hard to believe the other portfolio is Larry's personal portfolio. I can't imagine him owning VG Value funds–large or small–when he has access to DFA and many others. The article only specifically says Malkiel's portfolio is in 2009 was his own. The o...
by pascalwager
Tue Dec 22, 2015 8:06 pm
Forum: Investing - Theory, News & General
Topic: Opinions on Burton Malkiel's personal portfolio?
Replies: 28
Views: 3167

Re: Opinions on Burton Malkiel's personal portfolio?

Note: The article is from 2009.

Also, I find it hard to believe the other portfolio is Larry's personal portfolio. I can't imagine him owning VG Value funds–large or small–when he has access to DFA and many others.
by pascalwager
Tue Dec 15, 2015 2:24 pm
Forum: Investing - Theory, News & General
Topic: Should I follow Jack Bogle in "I don't do International"
Replies: 90
Views: 8390

Re: Should I follow Jack Bogle in "I don't do International"

A debate this muddled with opinion essentially means it doesn't matter. It will likely not have a material effect one way or the other if you add small international exposure. I hold no international personally. Just do what you're comfortable with. This sums it up nicely. To the OP, also, when you...
by pascalwager
Sun Dec 13, 2015 4:10 pm
Forum: Investing - Theory, News & General
Topic: reinvest or put in money market
Replies: 11
Views: 1300

Re: reinvest or put in money market

nbseer wrote:I recently started having dividends in my tIRA sent to money market.. then if I want more of that specific bond or stock fund just buy when prices dip rather than reinvesting at various prices.

Market timing?
by pascalwager
Sun Dec 13, 2015 12:57 am
Forum: Investing - Theory, News & General
Topic: Gliding To Small Value
Replies: 15
Views: 1926

Re: Gliding Small Value Tilt

During retirement you typically don't have small company job risk, so this may be the ideal time to adopt small company investment risk.
by pascalwager
Fri Dec 11, 2015 11:44 am
Forum: Personal Consumer Issues
Topic: Free Windows 10 Upgrade, Yes or No?
Replies: 528
Views: 59356

Re: Free Windows 10 Upgrade, Yes or No?

No!!!! Terrible experience and now back to W8.1!
by pascalwager
Wed Dec 02, 2015 4:22 pm
Forum: Investing - Theory, News & General
Topic: Great Rick Ferri Interview
Replies: 8
Views: 2958

Re: Great Rick Ferri Interview

He says the active High Yield fund is better because it has more holding and is lower cost than the index funds that are available. Yes, I got that and I agree. Just commenting on the interview title (from the interviewer, not Rick) and some of Rick's comments. With his 100% equity comment he also ...
by pascalwager
Tue Dec 01, 2015 10:08 pm
Forum: Investing - Theory, News & General
Topic: Rick Ferri's Portfolio
Replies: 197
Views: 66794

Re: Rick Ferri's Portfolio

Someone on BH mentioned recently that Rick has gone from 80% to 100% stocks. He expects to have two pensions plus SS.
by pascalwager
Mon Nov 30, 2015 3:14 pm
Forum: Investing - Theory, News & General
Topic: Fixed Asset Allocation for the rest of your life
Replies: 60
Views: 6674

Re: Fixed Asset Allocation for the rest of your life

I'm 93% stocks and 7% bonds at age 73 and retired. I'm thinking of increasing to 90% stocks and 10% bonds. Hmmmm...quite a bit of risk for someone with your username. The high stock percentage is greatly reduced (to about 55%) when I include the calculated PV of my pension as a part of my portfolio...
by pascalwager
Mon Nov 30, 2015 1:15 pm
Forum: Investing - Theory, News & General
Topic: European Stock Index(VEURX) as Replacement for Total International(VGTSX)?
Replies: 25
Views: 2780

Re: European Stock Index(VEURX) as Replacement for Total International(VGTSX)?

My thoughts on buying the European index over the more balanced Total International index come from a combination of gut feeling, home country bias and speculation about the state of the global economy. Consider how much importance you want to give gut feeling, bias, and speculation in making an in...
by pascalwager
Sat Nov 28, 2015 8:31 pm
Forum: Investing - Theory, News & General
Topic: Fixed Asset Allocation for the rest of your life
Replies: 60
Views: 6674

Re: Fixed Asset Allocation for the rest of your life

I'm 93% stocks and 7% bonds at age 73 and retired. I'm thinking of increasing to 90% stocks and 10% bonds.
by pascalwager
Sat Nov 28, 2015 4:21 pm
Forum: Investing - Theory, News & General
Topic: European Stock Index(VEURX) as Replacement for Total International(VGTSX)?
Replies: 25
Views: 2780

Re: European Stock Index(VEURX) as Replacement for Total International(VGTSX)?

Forget the 3 fund nonsense first of all ! My folio manager recommends 40% of folio in foreign stocks like this scenario: 30% Europe fund, 20% Pacific fund and 50% total international fund . Plus the total international bond fund is added to the bond portion of the folio,... :idea: Looks like your p...
by pascalwager
Fri Nov 27, 2015 5:36 pm
Forum: Investing - Theory, News & General
Topic: "Why You Shouldn't Substitute Stocks for Bonds"
Replies: 16
Views: 2289

Re: "Why You Shouldn't Substitute Stocks for Bonds"

"Reaching for yield" is subject to interpretation. Some advisors consider going out beyond 2 1/2 years duration to be reaching for yield. Actually, my advisor DFA portfolios never exceeded one or two years duration/maturity and, as I recall, the basic IFA portfolio overall duration (using ...
by pascalwager
Fri Nov 20, 2015 1:09 pm
Forum: Investing - Theory, News & General
Topic: Equal weight international and domestic equities?
Replies: 12
Views: 1107

Re: Equal weight international and domestic equities?

I tend to let my US/int'l drift, then rebalance to world market percentages every few years. Actually, only my DFA accounts drift enough to require rebalancing--compared to my small amount of TSM/TISM. I also own a lot of TWS which provides my US/int'l target (currently about 52 or 53% US). But I h...
by pascalwager
Fri Nov 20, 2015 12:52 pm
Forum: Investing - Theory, News & General
Topic: Equal weight international and domestic equities?
Replies: 12
Views: 1107

Re: Equal weight international and domestic equities?

I tend to let my US/int'l drift, then rebalance to world market percentages every few years. Actually, only my DFA accounts drift enough to require rebalancing--compared to my small amount of TSM/TISM. I also own a lot of TWS which provides my US/int'l target (currently about 52 or 53% US). But I ha...
by pascalwager
Wed Nov 18, 2015 2:43 pm
Forum: Investing - Theory, News & General
Topic: Emergency Portfolio with 30% Stocks
Replies: 53
Views: 5369

Re: Emergency Portfolio with 30% Stocks

Does this emergency fund portfolio seem reasonable? What adjustments would you make? I am worried about losing out to inflation with 100% bonds, so I'm hoping this is a nice solution. I have a steady income and may not need this fund for many years: (Taxable account) U.S. Stocks (VTI) - 5% U.S. Div...
by pascalwager
Tue Nov 17, 2015 2:21 am
Forum: Investing - Theory, News & General
Topic: With Fed Reserve threatening a rate hike, should I wait until January to buy vaguard's bond funds?
Replies: 30
Views: 4054

Re: With Fed Reserve threatening a rate hike, should I wait until January to buy vaguard's bond funds?

Seems wasteful holding any bonds in a ROTH account. Generally, you want to hold higher-expected-returns assets in a ROTH such as total market stock funds. See the WIKI on this concept.
by pascalwager
Sat Nov 14, 2015 3:46 pm
Forum: Investing - Theory, News & General
Topic: Stop retirement investing??
Replies: 57
Views: 11839

Re: Stop retirement investing??

They advocate holding very high percentages of foreign markets, 40% or more in some cases. This seemed REALLY high to me. I am currently at 20% and even think that is higher than I should be. It's a matter of what you're used to. My (former) advisor started me out at 50% int'l in 1995 in my largest...
by pascalwager
Wed Nov 11, 2015 3:36 pm
Forum: Investing - Theory, News & General
Topic: DFA Has Introduced Target Date Funds - LifeCycle Based?
Replies: 60
Views: 6360

Re: DFA Has Introduced Target Date Funds - LifeCycle Based?

Thanks. I was feeling too lazy to do math. Boy, it almost looks to me as if they did exactly what I was wondering about: "Are they trying to cancel out the 'slight small' tilt in Core Equity I?" This looks for all the world as if they intentionally tried to match the composition of the to...
by pascalwager
Wed Nov 11, 2015 12:48 pm
Forum: Investing - Theory, News & General
Topic: Do you hold international bonds in your tax-advantaged space?
Replies: 43
Views: 2848

Re: Do you hold international bonds in your tax-advantaged space?

As a retiree, the duration (7.3 years) of the VG int'l bond fund is too long for me and there's no VG int'l short-term bond fund to combine with to reduce duration.

For US, I like to combine two bond funds to get about four years duration.
by pascalwager
Fri Nov 06, 2015 10:22 pm
Forum: Investing - Theory, News & General
Topic: Advance Request to Not Renew Ally Bank CDs at Maturity
Replies: 6
Views: 867

Re: Advance Request to Not Renew Ally Bank CDs at Maturity

I've had good service from Synchrony Bank so far, but have not yet closed a CD there. I think I would start by sending them a secure message (envelope icon toward top right when logged on) with my request, and see how that went. At least I'd then have something in writing to refer back to. At this ...
by pascalwager
Fri Nov 06, 2015 10:08 pm
Forum: Investing - Theory, News & General
Topic: DFA Has Introduced Target Date Funds - LifeCycle Based?
Replies: 60
Views: 6360

Re: DFA Has Introduced Target Date Funds - LifeCycle Based?

Thanks. I was feeling too lazy to do math. Boy, it almost looks to me as if they did exactly what I was wondering about: "Are they trying to cancel out the 'slight small' tilt in Core Equity I?" This looks for all the world as if they intentionally tried to match the composition of the to...
by pascalwager
Tue Nov 03, 2015 10:13 pm
Forum: Investing - Theory, News & General
Topic: 5yr Treasury Question for Dr. Bernstein
Replies: 14
Views: 2009

Re: 5yr Treasury Question for Dr. Bernstein

Larry Swedroe doesn't actually use 5-year Treasuries in the LP. For fixed income, he holds about 90% munis and the rest probably includes CDs (from a recent post). For Treasuries, Bernstein seems to be currently recommending a 3-year ladder. I use a 1:2 combination of the VG ST and IT Treasury Funds...
by pascalwager
Tue Nov 03, 2015 6:43 pm
Forum: Investing - Theory, News & General
Topic: As of Nov 2015, Baird muni fund superior to Vanguard muni fund?
Replies: 33
Views: 2683

Re: As of Nov 2015, Baird muni fund superior to Vanguard muni fund?

In a recent post: Larry Swedroe considers the Baird Intermediate Muni to be safe, but not the VG version which includes bonds from some of the nine states Larry considers likely to default--on bonds or pensions.
by pascalwager
Tue Nov 03, 2015 2:18 pm
Forum: Investing - Theory, News & General
Topic: 5yr Treasury Question for Dr. Bernstein
Replies: 14
Views: 2009

Re: 5yr Treasury Question for Dr. Bernstein

Sound quality very poor--especially for Bill's comments.

Anyone hear his comments on the SV portion of the 30/70 portfolio?
by pascalwager
Mon Nov 02, 2015 8:26 pm
Forum: Investing - Theory, News & General
Topic: Bernstein's "Deep Risk" - A rare opportunity for inflation protection?
Replies: 56
Views: 8122

Re: Bernstein's "Deep Risk" - A rare opportunity for inflation protection?

In a Nov. 2014 article, Bill Bernstein discusses beginning retirement with a 25/75 stocks/fixed income portfolio. For someone who doesn't want to deal with insurance companies (annuities), the fixed income would be some combination of TIPS ladder, and short-term high-quality nominal Treasuries, muni...

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