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pkcrafter

"The higher the level of financial literacy, the more likely it is that professional advice will be sought." I think this describes me perfectly. I started investing in 1996 through a stockbroker friend; bought Microsoft, Cisco, etc. Rode the bubble up and down. I became a Boglehead in 20...

pkcrafter

Thanks for a good and needed article on financial literacy. What I found possibly most important is this part of the Italian study (boldface mine): “Additionally, our findings suggest that investor education programmes may be beneficial not only directly, i.e. by raising financial capabilities, but...

pkcrafter

Morik, your analogy was worth the read.

Thanks

Paul

pkcrafter

Hi everyone, So I was planning on rolling over my ex-employers 401k with T Rowe Price into a vanguard IRA. I was then going to invest in a total stock market fund. At the last minute, though, I noticed that one of the funds available through my ex-employer is VINIX, a vanguard fund. VINIX through V...

pkcrafter

The data I quoted is from M*. Note the different dates on the two charts. http://performance.morningstar.com/fund/performance-return.action?t=VTIAX&region=usa&culture=en_US If investors cannot hold international because it was down or is down, they had better not attempt factor investing. Lo...

pkcrafter

No knock on anyone, but I've seen a few posts now about increasing international. I wonder if it's due to the fact that international is up 7.07% YTD and 10.30% over the past 12 months. For those who actually held international through the downturn, they have already captured every penny of that 10....

pkcrafter

Though this is market timing, it does not involve change the overall ratios of a portfolio, just the domestic/international ratio.

It does change the ratio of U.S. to international and that is very significant, especially if it's done based on current short-term performance.

pkcrafter

I also believe that it is very difficult to write a book and get it published if all you have to say is buy a couple of low cost index funds and go away. You will also have no credibility if all you have to offer is what anyone could have thought of. (The irony, of course, is that thinking that a s...

pkcrafter

What's the name of the major brokerage?

Paul

pkcrafter

MEA, would you mind sharing your portfolio with us? It might help if we can spot something.

Paul

pkcrafter

Victoria/Fallible, ask Bill to expand on this a bit.

Paul

pkcrafter

And what's the cause of this irrational fear of October? Are you afraid the Cubs will win the World Series, and the world will end?

Well, it might.

MEA, we will let you know if it's a good idea in about a month.

Paul

pkcrafter

It is well known that Paul advocates diversification across multiple "asset classes." He considers total market in the large-cap blend category, which is quite correct. This boils down to the old tilting debate. I think this is the point. TSM holds mid and small, but because the fund is c...

pkcrafter

Merriman knocks TSM. Is it legit? But this fund falls far short of its "total market" title. In fact, the fund gives investors only a small part of what it takes to diversify a portfolio into the best asset classes. MarketWatch http://www.marketwatch.com/story/why-vanguard-total-stock-mark...

pkcrafter

What are you going to do with the information when you get it?

Paul

pkcrafter

There are no tax consequences if the assets are in a Roth. You sold or will sell the funds in the Roth, but maintain the cash in the Roth until you reinvest it?

Paul

pkcrafter

Mlle, the reason I asked my first question was because you stated you were confident, and went so far as to exclaim "there is going to be a catalyst event happening." Your reply to my question, "why wait until the stock rose 20%", was not so confident. You then said you don't kno...

pkcrafter

I don't think there are any large 401k plans that do not employ an advisor. Most of the motivation is due to dumping fiduciary responsibility on them and taking most of it off the company.

The fees you are running into are typical. Companies do not like to reveal them.

Paul

pkcrafter

I am sorry for your recent loss. I will offer a quick overview to get things going. Hello, I am newly widowed, and looking to simplify. I am very interested in finding tax efficient options for the taxable account. Thank you for the taking the time to review my portfolio. Here's some info on tax-ef...

pkcrafter

80% russell 2000 index, 20% russell 1000 index (tried to approximate total stock market index) Typo? Please list all funds in percent of total portfolio so readers don't have to work it out. You will fund it's easier to review your holdings this way. I know 401k isn't good, but is there a match? Lis...

pkcrafter

The advisor is hired. I don't think he has any power over what funds are offered. You will have to work with what's available. If you want something better, you will have to talk with your company's fiduciary, if there is one.

Paul

pkcrafter

To be clear, I was addressing the fund's deferred charge of 1%, which is calculated from the total in the fund when you sell. Taxes are also a concern, especially if you've held the funds less than a year. You will get better answers if you provide type of account, fund names, amounts, and time held...

pkcrafter

Mlle, If you know the stock is going to go from $10 to $15, why would you wait 'till 12 to buy?

Paul

pkcrafter

The 1% fee is simply based on the total amount that is in the fund when you sell it. How long have you been it these funds?

Paul

pkcrafter

Yes, I noticed that a fund's portfolio overview was really strange this morning, but checking again a little later I found things back to normal.

List of funds is still showing, but nothing else. I presume it will be fixed.

Paul

pkcrafter

I agree on total bond - fxnax

Total stock market already contains the market weight in small, but if you want more you can use fsevx, extended market, although it isn't tilted toward value.

Paul

pkcrafter

Nisiprius wrote: Nah, it's more "the S&P 500 is actively managed" crapola... this has a bit of a twist to it in that it is claiming the S&P's active management gives it a boost, but that they, Morgan Stanley, know how to improve on it and boost it even further. Yeah, but where's th...

pkcrafter

Yep, Morgan Stanley has the answer. Funny how active managers still haven't figured it out.

http://www.bloomberg.com/news/articles/ ... his-is-why

Paul

pkcrafter

Yes, you can do that.

And don't forget Total market and total international are tax-efficient and can be held in taxable.

Paul

pkcrafter

soboggled wrote:So what really happened to make them quit? Aside from churning, did the America Funds eliminate or reduce EJ's cut of the load?

Worse than that. I edited my post 2 up from yours to include the reason for the change.

Paul

pkcrafter

Chip, what funds does your advisor intend to put you in? What is the American fund replacement? edit/added: I think I've found the answer - Bridge Builder funds. Bridge Builder is a fairly new group of funds sold through the EJ brokerage network. EJ is going to recommend their own funds so they end ...

pkcrafter

kosomoto, one final comment. What stands out here is your emotional comfort zone and aggressive 100% tilted equity portfolio are not compatible. I suggest you add 20-25% short term bond index or total bond. Even a small amount of bonds will diversify your portfolio and lower the risk without sacrifi...

pkcrafter

Thanks, but if the fundamentals of investments bother you I would recommend you don't have all you money in equity investments. You are right about volatility, it isn't the issue here, but risk is still risk. How did you eliminate non-profit companies from your S&P funds, or are they not mutual...

pkcrafter

I think buckets are just labels for doing what Bogleheads do anyway, and maybe a psychological ploy. Bogleheads retirees do not sell equities when they are down. They withdraw from non-equities, but don't bother with the term bucket. They might even buy more equity (rebalance) in down markets. Now t...

pkcrafter

Thanks, but if the fundamentals of investments bother you I would recommend you don't have all you money in equity investments. You are right about volatility, it isn't the issue here, but risk is still risk. How did you eliminate non-profit companies from your S&P funds, or are they not mutual ...

pkcrafter

kosomoto, when I asked about your asset allocation, I meant overall % stocks and % bonds/cash. That is the important allocation that controls risk.

You can see my concerns over profitability. All of my S&P funds exclude companies with negative earnings.

Really?? Now did you do that?

Paul

pkcrafter

kosomoto: So I have a problem when I worry about my investments. Wondering if anybody has the same issue. Of course, lots of investors worry. It's a natural trait in most individuals. So, first question, what is your current asset allocation? Then, are you diversified? It seems odd that you are worr...

pkcrafter

Why are there two options labeled Option 4? 4B is clearly far better than 4A or any other option. I wonder why the other options are even listed. What type of plan is this, 401k, 457 or something else. If you opt for #4, how does HR know which option 4 you chose? Can you provide names of a few of t...

pkcrafter

Why are there two options labeled Option 4? 4B is clearly far better than 4A or any other option. I wonder why the other options are even listed. What type of plan is this, 401k, 457 or something else. If you opt for #4, how does HR know which option 4 you chose? Can you provide names of a few of th...

pkcrafter

Move the IRA to Fidelity.

Paul

pkcrafter

Welcome Eric, heck of a first post!

The Q/A following the article was also interesting, and controversial.

Paul

pkcrafter

Thank you, Taylor. A very good article that should be read by all new investors.

Paul

pkcrafter

I can't figure out why he has to pay that much in interest and use private investors if he is so successful himself. I wouldn't do it. He doesn't have to, but it's how he makes his income. The investors provide the income. The more he sells, the more he makes. Not so sure we can say that about the ...

pkcrafter

Another option -- buy FBIOX in the Roth. It will be very volatile, but over time it will go up. Put a predetermined cap on the max percentage of equities you think you should hold and if you exceed that, transfer to a second holding in the Roth. Transfer enough so you are 10% or 20% under your targe...

pkcrafter

Redtrees, I think you would benefit from posting your portfolio and see what posters think. Here's the posting format https://www.bogleheads.org/forum/viewtopic.php?t=6212 What asset allocation do you have now? How much will you need from your retirement accounts? Vanguard's asset allocation suggest...

pkcrafter

One more suggestion. Fill a Roth or IRA each year for motif and invest the rest in a BH style portfolio.[/quote] *Is the motif account going to be in taxable or an IRA? The first 5,500 per year will be invested directly into the ROTH IRA, Very good. Following the maxing out of the Roth IRA, all addi...

pkcrafter

I think the article makes generally good points, but there's nothing in the article that anyone who's hung around Bogleheads for awhile doesn't already know. In one of my early blog posts, in February 2010, I wrote about why we should ignore daily news reports about changes in the Dow, S&P 500 ...

pkcrafter

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pkcrafter

Can't forget this short online read as a good starter

https://www.etf.com/docs/IfYouCan.pdf

Paul

pkcrafter

I'm suspecting the match was supposed to be provided, but someone saw no pretax employee contribution and therefore did not provide the match because they didn't realize a Roth contribution counts, but the match goes in the pretax side.

I think you will get it straightened out.

Paul

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