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pkcrafter

Well, they say elegance and beauty are in the eye of the beholder, so go for it if that's your calling, but be aware that there is something about your quest for the perfect portfolio that raises a bit of a behavioral warning. There is no perfect portfolio. Even if you did hit on it, it would not th...

pkcrafter

Gabe, the answer is FSITX is U.S. bond index with a risk rating of AA, same as Vanguard's total bond mkt index fund. FTBFX is total bond with a risk rating of BBB, so it is essentially somewhat riskier. For instance, in 2008, FTBFX lost 5.5% and FSITX gained 3.7%.

Paul

pkcrafter

What would be the highest expense ratio you would be willing to pay for a particular investment. I have several funds in an IRA with what seems high expense ratios, 1.18%, 1.17%, .71% and another .44%. EJ Adviser put me in these, along with some that have lower expense ratios such as 0.05. I'm movi...

pkcrafter

Maybe consider using VT if available. It is Vanguard's Total World index, which holds 56% U.S and 44% non-U.S. VWRL is usually a better choice than VT for non-US investors. VWRL is not US domiciled. For NRAs this generally sidesteps some potentially ugly and unwanted US dividend and estate tax cons...

pkcrafter

pkcrafter

I'm guessing oilcan looked at past returns. FOSFX is a growth fund and growth has had a good run. FOSFX has beaten the index for the past few years, but the index outperformed from 2008-2014.

Oilcan, over longer periods of time value beats growth, but in short periods, growth wins sometimes.

Paul

pkcrafter

Explorer wrote:
pkcrafter wrote:Looks like both investor shares and admiral shares are closed according to the page you pulled up.

Paul

Wellington is open if you purchase in a VG account...

Thanks, I could not find a closed notice, but my Vanguard page looks a bit different than Gregc's.

Paul

pkcrafter

Treasuries generally have a high negative correlation to equities in a flight to quality situation like a stock market crash or sometimes even only in a correction. That's not really true. In 2008 the stock market crashed and bonds tanked, for instance. False. TBM was up 5.05% in 2008. It was also ...

pkcrafter

Let's have a look at the chart on the bottom of this page on Risk and Time. http://www.norstad.org/finance/risk-and-time.html Paul If you cut off that chart at 20 years, will the final std deviation numbers be any different? P.S. I think that the OP is correct. As your planning horizon gets shorter...

pkcrafter

As much as I have read and thought about the topic I don't really care for ANY Of the financial definition of risk. In the end risk is you don't have X dollars when you need to have X dollars. It is up to each individual to figure out how to do that. If that means LMP great. If that means pensions ...

pkcrafter

'Risk Averse' by investopedia. :shock: A risk-averse investor dislikes risk, and therefore will stay away from adding high-risk stocks or investments to their portfolio and in turn will often lose out on higher rates of return. Investors looking for "safer" investments will generally stick...

pkcrafter

Looks like both investor shares and admiral shares are closed according to the page you pulled up.

Paul

pkcrafter

This was my second time reading the book. I have some questions please. But first I must state this: after reading the book I must say that unless you have been in 2 down markets you really don't how you will react. This is absolutely true and many investors find out the hard way. People are natura...

pkcrafter

I have all of my 401k in Wellington Admiral. This is mostly because most of my other choices in my 401k are not that good. Since I am over 59.5 I sweep all of what I can into my IRA every year (they don't allow me to move the company contributions). Too bad it is closed to new investors so I cannot...

pkcrafter

Welcome, I agree with mhalley that your proposed portfolio is too heavy in small cap. Maybe consider using VT if available. It is Vanguard's Total World index, which holds 56% U.S and 44% non-U.S. Here's info on that fund https://personal.vanguard.com/us/funds/snapshot?FundIntExt=INT&FundId=0628...

pkcrafter

Let's have a look at the chart on the bottom of this page on Risk and Time.

http://www.norstad.org/finance/risk-and-time.html

Paul

pkcrafter

Thanks for posting, it is interesting. I think there are some good ideas here, but... Investors should never try to time the market by making radical short-term shifts. But investors can benefit by over- or under-weighting various asset classes during certain periods. Schwab has developed an approac...

pkcrafter

Welcome to the forum, Hey Everyone! This will be my first post since I found Bogleheads a couple of days ago. I recently started investing and have been trying to the best of my abilities to understand the investment world. That being said, there are still questions that I have with regards to nume...

pkcrafter

bertilak wrote: I note the word "ephemeral" in the first quote above. I remember seeing huge differences in Efficient Frontier curves resulting from minor adjustments to the input . Yes, I often refer to the market as a chameleon, ever changing it's color and look. am: You would think that...

pkcrafter

@dbltrbl Why do you say that? Why not to invest now? Also, if I'd find something, then where to put how much? I believe dbltrbl is saying that because you are apparently 100% stock and you cannot afford to see a 30%-50% drop in assets right now, even if it's temporary. Once you find a job again, an...

pkcrafter

Welcome, When you say you follow Merriman's recommendation, which of the three are you following? What Marriman is suggesting is we all slice and dice, which means cutting up the total market into sections and overweighting some of them. Merriman is a good guy and occasionally posts here, but his re...

pkcrafter

JCrack, your options are quit you job and roll the 401k to an IRA and then convert it to a Roth. This will work if your income will be lower when you go back to school. The other option is to just leave the 401k where it is now and roll it to a 401k with your new employer when done with school http:...

pkcrafter

Glad to see things are working out for you. You are on the right track.

Paul

pkcrafter

I understand that the total index fund and SP500 returns are really close. Question: lf the large companies in the SP 500 are down for the next 10 years and the mid and small caps are up for the next 10, does this mean the total stock index with have a better return the the SP 500???? The real poss...

pkcrafter

indexonly, I just happened to come across some small cap performance data that may interest you. I posted it in Theory, and here's a direct link to the data.

https://www.raymondjames.com/melvillewe ... rmance.pdf

Paul

pkcrafter

Lots of market performance data from Raymond James/Ibbotson in first half.

Investor data in last half (Dalber)

https://www.raymondjames.com/melvillewe ... rmance.pdf

Paul

pkcrafter

Anyway, her ROTH is handled by her parents' financial adviser who has had it all invested in this one fund for many years. My plan is to leave the guy (who doesn't charge us anything, but still....) Doesn't charge? Maybe, but I've never heard of it before. Maybe it's a contingency of your parents a...

pkcrafter

What is the external-to-the-market definition, determination, or calculation, of over- and under-valued? Unless there's a market-external authority the words are meaningless. Naturally, most market participants disagree with each other about appropriate security prices most of the time . That's bec...

pkcrafter

Think for a moment about a sine wave. It has two attributes: Amplitude and Frequency, each with its own measurement. Note than risk is often given as a single number that is represented as one axis on a risk vs. expected return graph, but, does risk really have TWO dimensions similar to a sine wave...

pkcrafter

One criticism that's been leveled at cap-weighted index funds, especially since becoming so popular, is that they increase the mis-valuation of the market by making overvalued stocks more overvalued and undervalued stocks more undervalued. Sour grapes. This doesn't make any sense to me. Was the mar...

pkcrafter

Thanks to this forum, I am almost half-way to my target retirement balance. I am using Core Four portfolio with 20% bond. My goal is to have 40% bond during retirement. One thing that I do not understand is when to reduce risk? Should I start increasing bond allocation when my portfolio reaches cer...

pkcrafter

I've been learning more about how in the past 20 years, the US stock market has diminished in regards to the amount of publicly traded companies. This might leave an investor who invests in 100% US stocks exposed to certain sectors and not adequately diversified. Has John Bogle commented on this ph...

pkcrafter

Warren Buffett's 90/10 AA was for his wife. I don't think it's a general recommendation for everyone. In Buffett's case, his wife could conceivably lose 90% of her holding and still have a comfortable retirement. When this topic comes up (which it does quite often), many folks say, the market can go...

pkcrafter

neveragain, are you planning to move out of EJ?

Fidelity is a good choice, but they might suggest you use their management or higher cost funds, but you don't have to. The index funds are excellent.

Paul

pkcrafter

Thanks for putting this together.

Here's another reference

Investment News: When it comes to investment returns, not all robos measure up

http://www.investmentnews.com/article/2 ... measure-up

Paul

pkcrafter

Thanks, very interesting, and I agree with Ned, the last 30 minutes will keep you watching. Also interesting that the same question, "Pursuit of the Perfect Portfolio" was posed to Fama, Markowitz, Shiller and Sharpe.

Paul

pkcrafter

You have to the choice to leave funds as is, sell them, or in the case of VG mutual funds, exchange them. You my want to make sure that the cost basis information transferred. There is a link on top of our account that takes you to cost basis information. If selling, you may want to consider tax co...

pkcrafter

My conventional was finally moved over. The Vanguard rep / transfer protocol gave me the impression that it would all move to a money market. Apparently not so - everything was moved over as is. It is confusing to me at this moment, as I'm sitting there with 7 mutual funds and 3 ETFs in a brokerage...

pkcrafter

What an odd selection of choices. This almost dictates you use a target fund. There is an international index, but no U.S. market index and no bonds. I guess it wouldn't matter because the TR funds are very attractive at such a low ER. Pick one by desired AA, not by date.

Paul

pkcrafter

The fact is that Buffett's wife could lose 90% of that portfolio and still have plenty to live on. So, the question is can you do that too? Stocks are risky, and I don't mean volatility, I mean there is no net down below. It is possible to lose your invested money. What are you going to say, yeah, ...

pkcrafter

The fact is that Buffett's wife could lose 90% of that portfolio and still have plenty to live on. So, the question is can you do that too? Stocks are risky, and I don't mean volatility, I mean there is no net down below. It is possible to lose your invested money. What are you going to say, yeah, ...

pkcrafter

Thanks grok, someone else told me that as well. I didn't have a problem and I'm not a member or logged in, etc. What do you think of the difference between literacy and comprehension. Is the distinction important? From the interview You write that “the main job” of an advisor is to “manage a client’...

pkcrafter

Clarification on the Buffet remark. The strategy you mention comes out of a section of Warren Buffett's 2013 letter to Berkshire Hathaway shareholders where he says his will stipulates that cash be delivered to a trustee for his wife's benefit and that 90% of that cash go into a "very low cost&...

pkcrafter

Meir Statman, finance professor at Stanford, and author of a new book, Finance for Normal People, makes a distinction between financial literacy and financial comprehension. Here's what he said in an interview with Think Advisor (11/16) Financial literacy is understanding [concepts like] compound in...

pkcrafter

Nisiprius, I didn't write that correctly. This is what I wrote: When this party ends, those short-sighted investors will sell index funds and find some active value funds that will look better... This is what I should have wrote, and apologies for my dim view to the "average" investor. Sho...

pkcrafter

Within the next several months, I'd like to invest in a number of individual investment grade corporate bonds that term anywhere from 2 to 5 years. These bonds would be held until the maturity date so my principal would not be affected by rising rates. I have a long history investing in stocks, but...

pkcrafter

Thank you! The value is under 20K and there are 7 funds that are transferrable. The plan is to place them all in one Vanguard fund. The way I read the Vanguard fee schedules, the fee would be $35 each for "mutual funds for other companies". The Vanguard representative did confirm that the...

pkcrafter

The 3-fund is basically what you want. The only thing missing is international bonds.

viewtopic.php?f=10&t=88005

If you post your available fund options, with tickers (if any) and expense ratios, we can help you choose.

Paul

pkcrafter

alex is correct, no ticker, but you can find the same fund with a ticker to do a comparison. Here's a link to what appears to be the same fund. Scroll about half way down and on the right side you will see fund performance compared to the benchmark you posted. Note that the funds don't track the ind...

pkcrafter

What is the name of the fund you are interested in? Is it the same name? It might be they have created a fund and then created a tracking index - one of a kind.

Paul

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