Search found 21 matches

by simplesauce
Tue Mar 28, 2017 10:24 pm
Forum: Investing - Theory, News & General
Topic: Are TIPS flawed, untested products?
Replies: 4
Views: 571

Are TIPS flawed, untested products?

When I look at my portfolio, I love it. Vanilla index funds. Not making any strong bets. Just letting it ride. I know I can stick with this allocation for a very long time. That said, the only portion that lingers any doubt in my mind is my TIPS allocation. And not at all because of muted returns or...
by simplesauce
Sun Mar 19, 2017 11:31 pm
Forum: Personal Consumer Issues
Topic: Best way to expand my vocabulary?
Replies: 79
Views: 3255

Best way to expand my vocabulary?

I've tried books, using Vocab apps on my phone, etc. I would like to know more words to sound more intelligent and express myself better. What do you suggest I use to expand my vocabulary? Thank you.
by simplesauce
Fri Feb 03, 2017 8:11 am
Forum: Investing - Theory, News & General
Topic: Schwab lowers expense ratios. Time to transfer?
Replies: 6
Views: 958

Re: Schwab lowers expense ratios. Time to transfer?

Call_Me_Op wrote:What are you going to do when Vanguard lowers their expense ratio to 0.04% - switch back?


Sure, it's easy enough. Has Vanguard hinted at lower their ERs again?
by simplesauce
Fri Feb 03, 2017 7:12 am
Forum: Investing - Theory, News & General
Topic: Schwab lowers expense ratios. Time to transfer?
Replies: 6
Views: 958

Schwab lowers expense ratios. Time to transfer?

I use Vanguard's TIPS fund (VAIPX) for half of my bond portfolio. I have admiral shares which cost 0.10% in expense ratio. Schwab just announced their cuts. SCHP (Schwab TIPS ETF) is moving to an expense ratio of 0.05%. Half the cost of Vanguard. However, I have heard that an "actively managed&...
by simplesauce
Wed Feb 01, 2017 9:47 pm
Forum: Investing - Theory, News & General
Topic: Just watched Warren Buffett's new HBO Documentary
Replies: 50
Views: 6893

Just watched Warren Buffett's new HBO Documentary

Incredible life story. My question is about his stock selection strategy. The name of the game for him was to buy stocks that were cheap. And ignore the noise. Why wouldn't this work today? I guess some people say it does, and they invest in only value stocks. If Buffett was an indexer, he would pro...
by simplesauce
Sat Jan 28, 2017 8:12 pm
Forum: Investing - Theory, News & General
Topic: Market Timing question
Replies: 12
Views: 970

Market Timing question

I have a question about market timing. It seems most Bogleheads stay the course, ignoring the news. I think it's fair to say that we're going through a wild time right now. If one were to weight their portfolio more towards international due to their negative short-term views of US stocks, is this a...
by simplesauce
Sat Jan 28, 2017 6:19 pm
Forum: Personal Finance (Not Investing)
Topic: What is it like to be wealthy?
Replies: 7
Views: 1759

What is it like to be wealthy?

My dream is to retire comfortably. But I am aware that many Bogleheads are more than comfortable. They are truly "wealthy" (however you define that.) I would like to know what that is like, from several different angles: 1. How has that changed your relationships with friends and family? 2...
by simplesauce
Sat Jan 28, 2017 7:46 am
Forum: Investing - Theory, News & General
Topic: Try and hit it big with 25% of your portfolio?
Replies: 51
Views: 5027

Try and hit it big with 25% of your portfolio?

I'd like some advice on how to respond to a friend of mine who is young, roughly late 20's. My friend's opinion is if he tries to pick a few companies with a slice of his portfolio, trying to hit it big, 1 of 3 things may happen: 1. He hits it big. 2. Not much happens. 3. He loses everything. But hi...
by simplesauce
Sat Jan 28, 2017 7:25 am
Forum: Investing - Theory, News & General
Topic: Reasons to Deviate from the Global Market Portfolio
Replies: 31
Views: 3070

Re: Reasons to Deviate from the Global Market Portfolio

William F. Sharpe touched on this recently when discussing his idea of the optimal portfolio: global market portfolio + inflation protected portfolio (riskless). One additional factor may be investor age. He said that young investors may want to hold more stocks than the global portfolio. (Also, yo...
by simplesauce
Thu Jan 26, 2017 4:55 pm
Forum: Investing - Theory, News & General
Topic: Swedroe's guidelines to Bonds
Replies: 113
Views: 8619

Re: Swedroe's guidelines to Bonds

Since this thread started I have reread most of Larry's book. At page 145, it is recommended that currency-hedged foreign bonds be held as part of fixed income, but that they be short to intermediate term and highly rated, like his recommendation for US Bonds. I do not see either a Vanguard or a Fi...
by simplesauce
Thu Jan 26, 2017 7:30 am
Forum: Investing - Theory, News & General
Topic: Swedroe's guidelines to Bonds
Replies: 113
Views: 8619

Re: "The Three-Fund Portfolio"

So, the questions: ⋅ Should I replace the TBM with something else? ⋅ If so, what? ⋅ Can I keep it in the Vanguard family? bertilak: Diversified TBM (Vanguard Total Bond Market Index Fund) is now the largest bond fund in the world for good reasons. Stay-the-course with ...
by simplesauce
Tue Jan 24, 2017 8:11 am
Forum: Investing - Theory, News & General
Topic: Swedroe's guidelines to Bonds
Replies: 113
Views: 8619

Swedroe's guidelines to Bonds

I was just reading Larry Swedroe's bonds book. He summarizes some general guidelines to follow. I'm wondering how many Bogleheads follow some of these. Here are a few: -Avoid any bonds longer than 10-years -Avoid bonds with ratings under AA -Favor Treasuries and TIPS -Municpals are OK if using the h...
by simplesauce
Sun Jan 22, 2017 11:42 pm
Forum: Investing - Theory, News & General
Topic: David Swensen says No to Municipal Bonds
Replies: 21
Views: 3122

Re: David Swensen says No to Municipal Bonds

I have a lot of respect for David Swensen and was very fortunate to be able to attend one of his investment lectures. I would like to see Unconventional Success updated. I'd be surprised if he is now in favor of municipal bonds. In Unconventional Success he does speak somewhat favorably of tax-exem...
by simplesauce
Sun Jan 22, 2017 7:04 pm
Forum: Investing - Theory, News & General
Topic: David Swensen says No to Municipal Bonds
Replies: 21
Views: 3122

David Swensen says No to Municipal Bonds

In Unconventional Success, David Swensen writes that Tax-Exempt Bonds (Munis) have many negative characteristics including call options, trading costs, misaligned interested between the bondholder and debtor, tax-rate uncertainty, credit quality, and general lack of portfolio protection. Is he sugge...
by simplesauce
Sun Jan 22, 2017 10:30 am
Forum: Investing - Theory, News & General
Topic: Short-Term Investment Grade or Short-Term Corporate Index?
Replies: 6
Views: 634

Re: Short-Term Investment Grade or Short-Term Corporate Index?

I don't think it will matter that much so don't agonize over the choice. The thing that made the decision for me is that one has lower initial minimum for admiral shares. Also one has an ETF share class. Those features may be more important than the choice of fund. Or buy both. Thanks livesoft. Lov...
by simplesauce
Sun Jan 22, 2017 10:24 am
Forum: Investing - Theory, News & General
Topic: Short-Term Investment Grade or Short-Term Corporate Index?
Replies: 6
Views: 634

Short-Term Investment Grade or Short-Term Corporate Index?

Hello. I am comparing the two funds VFSUX (Vanguard Short-Term Investment Grade) and VSCSX (Vanguard Short-Term Corporate Bond Index). I am looking to compliment my bond portfolio, currently comprised of only Intermediate-Term Treasuries and TIPS. I follow the Swensen and Swedroe way of thinking, th...
by simplesauce
Fri Jan 20, 2017 7:12 pm
Forum: Investing - Theory, News & General
Topic: What are the global market cap weights today?
Replies: 10
Views: 782

Re: What are the global market cap weights today?

As mentioned, the weightings of the Vanguard Total World stock index funds are reasonably accurate and easy to find, and so are the weightings for the only other such fund I know, the iShares MSCI ACWI ETF, symbol ACWI. As you see they're in pretty good agreement. https://s28.postimg.org/ys3u7iwxp/...
by simplesauce
Fri Jan 20, 2017 6:21 pm
Forum: Investing - Theory, News & General
Topic: What are the global market cap weights today?
Replies: 10
Views: 782

What are the global market cap weights today?

For stocks, how much of the world is US, Developed, and Emerging? Similarly, how much of the bond market is US and international? Vanguard recommends 60/40 (US/Int'l) for stocks and 70/30 (US/Int'l) for bonds. I would like to follow the market weightings so I don't make any biases or bets. However, ...
by simplesauce
Thu Jan 19, 2017 7:40 am
Forum: Investing - Theory, News & General
Topic: TIPS are great in "theory." But real world...
Replies: 34
Views: 3656

Re: TIPS are great in "theory." But real world...

On paper, TIPS seem like the best type of bond. I have read all of the wonderful characteristics. Protection in both inflation and deflation, no default risk, etc. Swedroe and Swensen are huge fans. However, in the real world, are they really as wonderful as they seem? I have read some worries from...
by simplesauce
Wed Jan 18, 2017 1:11 pm
Forum: Investing - Theory, News & General
Topic: TIPS are great in "theory." But real world...
Replies: 34
Views: 3656

TIPS are great in "theory." But real world...

On paper, TIPS seem like the best type of bond. I have read all of the wonderful characteristics. Protection in both inflation and deflation, no default risk, etc. Swedroe and Swensen are huge fans. However, in the real world, are they really as wonderful as they seem? I have read some worries from ...
by simplesauce
Tue Jan 17, 2017 12:42 pm
Forum: Investing - Theory, News & General
Topic: Deciding on types of bonds is harder than stocks!
Replies: 20
Views: 2419

Deciding on types of bonds is harder than stocks!

I decided my international stock allocation a long time ago. And have not wrestled with it much at all. And I use Total Market funds. Easy. But bonds....wow that is a complicated world. I used to hold Total Bond Market and called it a day. But after learning about the complexities and prepayment ris...

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