Search found 44 matches

by simplesauce
Mon May 22, 2017 6:59 am
Forum: Investing - Theory, News & General
Topic: Home Country Bias...makes sense?
Replies: 235
Views: 8340

Re: Home Country Bias...makes sense?

Can someone address this comment from earlier? "We also have shareholder protections that can be taken for granted. Outside of the U.S., you can be very disappointed. I think it was in Malaysia a few years ago--you couldn't get your money out. Korea is a bit fragile in that regard. Heaven knows...
by simplesauce
Thu May 18, 2017 6:00 am
Forum: Investing - Help with Personal Investments
Topic: Is the Vanguard Balanced Index Fund all you need?
Replies: 58
Views: 8830

Re: Is the Vangaurd Balanced Index Fund all you need?

The only potential issue I see with the Balanced Index fund is lack of international exposure. That has been a net benefit to those who did not partake in the lower international returns. Someone who had held 100% AAPL for the last two years would also have seen a net benefit over holding SP500 but...
by simplesauce
Sun May 14, 2017 9:57 pm
Forum: Investing - Theory, News & General
Topic: Home Country Bias...makes sense?
Replies: 235
Views: 8340

Re: Home Country Bias...makes sense?

I really enjoyed reading "Global equities: Balancing home bias and diversification" paper from Vanguard Research. The paper concludes for many investors between 20% to 40% international is appropriate for various reasons such as volatility, currency risks, diversification and cost. Just f...
by simplesauce
Sun May 14, 2017 8:57 pm
Forum: Investing - Theory, News & General
Topic: Home Country Bias...makes sense?
Replies: 235
Views: 8340

Re: Home Country Bias...makes sense?

Hawaiishrimp wrote:
simplesauce wrote:
Hawaiishrimp wrote:My AA is: 40% US, 30% International because I believe it's more diversified. I'm just keeping it simple and avoid over-thinking it too much. :wink:

This equals only 70%?


Yea, 30 % Bonds


Ok so you're about 57% US/43% Int'l.
by simplesauce
Sun May 14, 2017 8:40 pm
Forum: Investing - Theory, News & General
Topic: Home Country Bias...makes sense?
Replies: 235
Views: 8340

Re: Home Country Bias...makes sense?

Hawaiishrimp wrote:My AA is: 40% US, 30% International because I believe it's more diversified. I'm just keeping it simple and avoid over-thinking it too much. :wink:

This equals only 70%?
by simplesauce
Sun May 14, 2017 7:02 am
Forum: Investing - Theory, News & General
Topic: Home Country Bias...makes sense?
Replies: 235
Views: 8340

Re: Home Country Bias...makes sense?

Great replies. As my original post states, I'm not too interested in discussing long term returns, our predictions, comparing charts, etc. Great posts discussing that. But I'm more interested in reviewing the concerns about political risk, inflationary risk, accounting concerns, currency risk, etc. ...
by simplesauce
Sat May 13, 2017 11:50 am
Forum: Investing - Theory, News & General
Topic: Home Country Bias...makes sense?
Replies: 235
Views: 8340

Re: Home Country Bias...makes sense?

But not often enough do we address the above. Thank you. Are you kidding? It gets discussed literally every single week on Bogleheads. Someone posts "Bogle said this on CNBC" or "Buffet said that in his shareholder letter" or "What should my international allocation be"...
by simplesauce
Sat May 13, 2017 7:55 am
Forum: Investing - Theory, News & General
Topic: Home Country Bias...makes sense?
Replies: 235
Views: 8340

Home Country Bias...makes sense?

Hi all. When Taylor Larimore (much respect) was asked "why not market weights?" by someone trying to pick their US vs International allocation, Taylor replied with this list of concerns: Several reasons: * Higher costs * Approximately half the sales of our 500 largest companies are to fore...
by simplesauce
Wed May 10, 2017 6:37 am
Forum: Investing - Theory, News & General
Topic: Please explain Gap insurance on a car
Replies: 11
Views: 777

Please explain Gap insurance on a car

Hello. I am getting a brand new 2017 car. Approx $27,000. If I put a 25% down payment on the car, ($6,750), and then finance the rest (I found a rate of 2.75%, not bad right?), then do I need Gap insurance? Also, is there anything I need to watch out for the auto loan? I found 2.75% financing from W...
by simplesauce
Mon May 08, 2017 8:56 am
Forum: Personal Consumer Issues
Topic: How do Bogleheads buy cars?
Replies: 71
Views: 7219

Re: How do Bogleheads buy cars?

Great post, thank you. I am a Real Estate agent and I need a nice looking car. If I were to buy 2017, I am looking at Buick or Kia. I haven't test driven yet....not interested if they feel cheap on the inside. I also found a few used cars like a 2012 Lexus or 2015 Infiniti that look very nice and c...
by simplesauce
Mon May 08, 2017 7:40 am
Forum: Personal Consumer Issues
Topic: How do Bogleheads buy cars?
Replies: 71
Views: 7219

Re: How do Bogleheads buy cars?

Can you be more specific about what "my job calls for expensive looking car" means ? Buick's are really not that expensive or upscale (Ive had a couple as rentals and frankly the interiors felt cheap) and if you job is in law, finance or something like that the people who set this expecta...
by simplesauce
Sun May 07, 2017 4:21 pm
Forum: Personal Consumer Issues
Topic: How do Bogleheads buy cars?
Replies: 71
Views: 7219

How do Bogleheads buy cars?

I'm in the market for a new car. Looking at a newer Buick or something similar. My job calls for a nice looking "expensive" car. Anyway, brand new cars are off the table (yes?) because they are not a good value. Better to buy 1-2 years old, certified from the dealer with solid warrantys. D...
by simplesauce
Mon May 01, 2017 8:44 am
Forum: Investing - Theory, News & General
Topic: Are we all forgetting our taxable accounts?
Replies: 79
Views: 9682

Re: Are we all forgetting our taxable accounts?

Quick thought. Every investing book I read talks about retirement. They advise on building an IRA or 401k, etc. Very rarely do they discuss taxable accounts. I think if someone is saving $5,000 per year in their late 20's for example, maybe 2/3 can go into retirement accounts, and 1/3 can go into a...
by simplesauce
Mon May 01, 2017 7:33 am
Forum: Investing - Theory, News & General
Topic: Are we all forgetting our taxable accounts?
Replies: 79
Views: 9682

Are we all forgetting our taxable accounts?

Quick thought. Every investing book I read talks about retirement. They advise on building an IRA or 401k, etc. Very rarely do they discuss taxable accounts. I think if someone is saving $5,000 per year in their late 20's for example, maybe 2/3 can go into retirement accounts, and 1/3 can go into a ...
by simplesauce
Mon Apr 17, 2017 10:13 pm
Forum: Investing - Theory, News & General
Topic: What does John Bogle think of TIPS?
Replies: 6
Views: 1783

Re: What does John Bogle think of TIPS?

from this article "...This time, we see that Jack is moving into TIPS (Treasury Inflation Protected Securities). "In fact, the only investment change I've made in the past few years is a move of about 6% of combined assets from Vanguard Intermediate-Term Bond Index (VBILX) to Vanguard Inf...
by simplesauce
Sun Apr 16, 2017 6:18 pm
Forum: Investing - Theory, News & General
Topic: Is it necessary to diversify across Factors?
Replies: 123
Views: 6887

Re: Is it necessary to diversify across Factors?

Necessary, no. Smart, yes. The case for factor investing is as strong as the case for equity investing IMO (which you've apparently already accepted). But of course, it isn't strictly necessary to invest your savings in anything. I wonder how strong the case is. Many of my favorite authors are not ...
by simplesauce
Sat Apr 15, 2017 7:17 pm
Forum: Investing - Theory, News & General
Topic: Is it necessary to diversify across Factors?
Replies: 123
Views: 6887

Re: Is it necessary to diversify across Factors?

Recently performance for the S&P indexes for the prior 10 year period was : 7% - 500 9% - mid-cap 9% - small-cap So the smaller funds appear to be efficient at various times in the business cycle. There are good companies in the smaller cap funds. Bogle's 5 fund portfolio invested in them. What...
by simplesauce
Sat Apr 15, 2017 5:42 pm
Forum: Investing - Theory, News & General
Topic: Is it necessary to diversify across Factors?
Replies: 123
Views: 6887

Is it necessary to diversify across Factors?

Larry Swedroe says to diversify across factors. The traditional Bogle advice is to diversify by owning a market-cap weighted index fund, and a bond fund. Is there evidence to say that Bogle has missed the research on diversifying across factors? Or is Swedroe relying on specific data that may not co...
by simplesauce
Sat Apr 15, 2017 6:08 am
Forum: Investing - Theory, News & General
Topic: [Vanguard Is Growing Faster Than Everybody Else Combined]
Replies: 34
Views: 2326

Re: NYT article on Vanguard

This paragraph concerned me, any thoughts? "Up and down Wall Street, where the sum of a firm’s assets under management has become a badge of power and sway, Vanguard’s ability to attract and run so much money with so few people has been a cause for envy and disbelief. Some have even warned that...
by simplesauce
Sat Apr 15, 2017 5:57 am
Forum: Investing - Theory, News & General
Topic: Is Bogle's investment style too aggressive?
Replies: 13
Views: 2667

Re: Is Bogle's investment style too aggressive?

I continue to be amazed that there is even a discussion in existence about these things. For detail read the excellent post above by nisi. I also agree that what Mr. Bogle is really talking about completely escapes me, and he is a far more knowledgeable and thoughtful individual than I am about all...
by simplesauce
Fri Apr 14, 2017 6:51 am
Forum: Investing - Theory, News & General
Topic: Is Bogle's investment style too aggressive?
Replies: 13
Views: 2667

Is Bogle's investment style too aggressive?

The title is slightly sarcastic :D In all seriousness, I just finished reading David Swensen's work. He says NO to corporate bonds and municipal bonds. He says a bond portfolio should be 50% TIPS and 50% Treasuries. However Bogle and many others recently have talked about increasing an allocation to...
by simplesauce
Sun Apr 02, 2017 10:14 pm
Forum: Investing - Theory, News & General
Topic: David Swensen's Bond Portfolio
Replies: 8
Views: 1394

Re: David Swensen's Bond Portfolio

KyleAAA wrote:Nothing at all wrong with that. I use 50% intermediate term bond index and 50% TIPS.


I keep hearing TIPS concerns. Any of them concern you?
by simplesauce
Sun Apr 02, 2017 5:53 pm
Forum: Investing - Theory, News & General
Topic: David Swensen's Bond Portfolio
Replies: 8
Views: 1394

David Swensen's Bond Portfolio

50% US Treasuries 50% US TIPS Anything wrong with that? Let it ride for the long haul? His book was written a while back, when bonds had some nice interest payments. Would this still be his advice today? He explains in his book how corporate bonds, municipal bonds, international bonds, mortgage bac...
by simplesauce
Tue Mar 28, 2017 10:24 pm
Forum: Investing - Theory, News & General
Topic: Are TIPS flawed, untested products?
Replies: 12
Views: 1574

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: 102
Views: 5608

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: 1051

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: 1051

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: 7143

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: 1054

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: 1872

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: 5219

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: 3234

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: 9057

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: 9057

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: 9057

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: 3225

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: 3225

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: 764

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: 764

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: 15
Views: 1747

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: 15
Views: 1747

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: 3819

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: 3819

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: 2665

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...

Go to advanced search