Search found 310 matches

by zuma
Sat Jul 15, 2017 3:47 pm
Forum: Investing - Help with Personal Investments
Topic: How to invest 300K
Replies: 33
Views: 2843

Re: How to invest 300K

You can read my second post. By doing so you will leave on the table 1-year worth of expected return. At the same time you will reduce your future volatility (and possibly be liable for a tax bill and transaction costs). In short, why not, if you think it would be better for you ? Alternatively, yo...
by zuma
Sat Jul 15, 2017 3:29 pm
Forum: Investing - Help with Personal Investments
Topic: How to invest 300K
Replies: 33
Views: 2843

Re: How to invest 300K

Dollar cost averaging is statistically superior. But if you are going to regret it if the market crashed the next day, it could psychologically could harm you from investing how you want to for the rest of your life and hurt you more in the end. Choose the safest AA where you won't regret a crash w...
by zuma
Sat Jul 15, 2017 1:47 am
Forum: Investing - Help with Personal Investments
Topic: Income from investments, have 200k to use.
Replies: 8
Views: 1290

Re: Income from investments, have 200k to use.

I would invest accordingly to my investing policy statement , which takes into account my long-term as well as short-term investing goals. Then I would periodically withdraw money (by selling shares, taking dividends as cash, or both) at a sustainable rate in order to meet my income needs. If you do...
by zuma
Sat Jul 15, 2017 12:29 am
Forum: Investing - Help with Personal Investments
Topic: How to invest 300K
Replies: 33
Views: 2843

Re: How to invest 300K

Dollar cost averaging is statistically superior. But if you are going to regret it if the market crashed the next day, it could psychologically could harm you from investing how you want to for the rest of your life and hurt you more in the end. Choose the safest AA where you won't regret a crash w...
by zuma
Fri Jul 14, 2017 4:14 pm
Forum: Investing - Help with Personal Investments
Topic: How to invest 300K
Replies: 33
Views: 2843

Re: How to invest 300K

I would suggest to the OP to first come up with appropriate asset allocation. Take your time doing this and consider adding bonds to the mix. This AA should match your long-term investing goals as well as your need/ability/willingness to take risk. After you figure out your target AA, ask yourself:...
by zuma
Fri Jul 14, 2017 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: How to invest 300K
Replies: 33
Views: 2843

Re: How to invest 300K

I would suggest to the OP to first come up with appropriate asset allocation. Take your time doing this and consider adding bonds to the mix. This AA should match your long-term investing goals as well as your need/ability/willingness to take risk. After you figure out your target AA, ask yourself: ...
by zuma
Fri Jul 14, 2017 11:38 am
Forum: Investing - Help with Personal Investments
Topic: How to invest 300K
Replies: 33
Views: 2843

Re: How to invest 300K

Assuming you have an asset allocation that is appropriate for your investment goals and risk tolerance, I would put it all in now. Vanguard has a paper on this topic, btw. Their conclusion: Clearly, if markets are trending upward, it’s logical to implement a strategic asset allocation as soon as pos...
by zuma
Thu Jul 13, 2017 2:42 am
Forum: Investing - Help with Personal Investments
Topic: What is a portfolio?
Replies: 8
Views: 737

Re: What is a portfolio?

My portfolio is a collection of funds that I hold at Vanguard. These investments are divided in a way that matches my target asset allocation . For example, I don't consider real estate, bitcoin, or emergency cash as part of my portfolio. I think most Bogleheads would answer A or D. This is not a wo...
by zuma
Wed Jul 12, 2017 3:10 pm
Forum: Investing - Help with Personal Investments
Topic: Where to put 65k cash
Replies: 64
Views: 5592

Re: Where to put 65k cash

amateurnovice wrote: Is OP looking to minimize risk? Or maximize gain?
In either case OP can eliminate diversifiable risk by holding a broad TSM fund without reducing expected return, as already noted several times. This is not a controversial view.
by zuma
Wed Jul 12, 2017 2:21 pm
Forum: Investing - Help with Personal Investments
Topic: Where to put 65k cash
Replies: 64
Views: 5592

Re: Where to put 65k cash

amateurnovice, I suggest you read up on the topic of unsystematic risk . https://www.bogleheads.org/wiki/Risk_and_return:_an_introduction#Diversification Diversification Risk can be reduced through diversification. The risk of investing in a single risky security, such as a stock or corporate bond, ...
by zuma
Wed Jul 12, 2017 2:07 pm
Forum: Investing - Help with Personal Investments
Topic: Where to put 65k cash
Replies: 64
Views: 5592

Re: Where to put 65k cash

First off, I'm not going sway anyone's thinking here so I'm not going to open myself up for ad hominems. I'll give my brief assessment which is easily eviscerated by boglehead "stay the course" logic because, honestly, there isn't much to that argument and every deviation from it is flat out wrong,...
by zuma
Wed Jul 12, 2017 1:22 pm
Forum: Investing - Help with Personal Investments
Topic: Where to put 65k cash
Replies: 64
Views: 5592

Re: Where to put 65k cash

What if you were to accomplish that diversification by buying a fund like Total Stock Market? Sounds like a solid plan to me. Sounds like putting all the eggs in one basket, which isn't a great idea if you've ever bought any eggs. Could you elaborate? How would you describe the risks of the TSM bas...
by zuma
Wed Jul 12, 2017 1:01 pm
Forum: Investing - Help with Personal Investments
Topic: Buying Admiral shares vs VTI
Replies: 7
Views: 643

Re: Buying Admiral shares vs VTI

VTI and VTSAX are equivalent investments in different containers. So it's a matter of preference, convenience, and fees. If VTI is the cheapest and most convenient option, and you don't mind the trading mechanics of ETFs (when compared to mutual funds), then there's no need to switch.
by zuma
Wed Jul 12, 2017 2:27 am
Forum: Investing - Help with Personal Investments
Topic: Where to put 65k cash
Replies: 64
Views: 5592

Re: Where to put 65k cash

Plenty of good individual stocks to put that in and reinvest the dividends without worrying about which fund or why. Funds are so high right now, you'd be getting in and possibly staying at a plateau for a while. I'd look at some individual companies that are competing against others and have grown...
by zuma
Wed Jul 12, 2017 2:19 am
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 16781

Re: Dividend Misunderstandings & Only Spend Return

snarlyjack wrote:Here is another interesting article/video from
Professor Jeremy Siegel. About 1 year old.

"Were in the first inning of dividend stock investing".
I have no idea what that means.
by zuma
Mon Jul 10, 2017 12:47 pm
Forum: Investing - Help with Personal Investments
Topic: Where to put 65k cash
Replies: 64
Views: 5592

Re: Where to put 65k cash

Should I go index with TR2055 or mutual fund with Wellington admiral? Neither of those funds match your desired allocation, which you just said would ideally be 50/50 to 60/40. I would stop looking at funds for a moment. Think hard about what asset allocation is right for you. What you've written s...
by zuma
Mon Jul 10, 2017 12:29 pm
Forum: Investing - Help with Personal Investments
Topic: Where to put 65k cash
Replies: 64
Views: 5592

Re: Where to put 65k cash

I like the Wellington just dont know if I should choose Vanguard Wellington or Vanguard Target Retirement 2055. Wellington is 65/35 TR2055 is 90/10 but TR has more diversity with international and will hopefully lower such risk but Wellington has the track history. Both good funds but which one is ...
by zuma
Mon Jul 10, 2017 12:12 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 16781

Re: Dividend Misunderstandings & Only Spend Return

dbr & others, Here is my plan... Being a young guy. What would happen if I never sold the portfolio & just lived off of the dividends and passed it down to my kids/charity at death someday? $1.0 million x 3% = $30,000 per year. $2.0 million x 3% = $60,000 per year. $3.0 million x 3% = $90,000 per y...
by zuma
Mon Jul 10, 2017 7:31 am
Forum: Personal Consumer Issues
Topic: Background Jazz
Replies: 5
Views: 741

Re: Background Jazz

by zuma
Mon Jul 10, 2017 4:40 am
Forum: Personal Finance (Not Investing)
Topic: Does it really matter? [Savings APR on <10k)
Replies: 2
Views: 389

Re: Does it really matter? [Savings APR on <10k)

There is value in having a simple portfolio that is easy to maintain, so your approach sounds like a reasonable tradeoff to me, particularly because (as you mention) this is not a large amount of cash. Don't overthink it.
by zuma
Sun Jul 09, 2017 3:48 pm
Forum: Personal Consumer Issues
Topic: can't logon to vanguard account [Website Down]
Replies: 92
Views: 3692

Re: can't logon to vanguard account [Website Down]

I don't think those not in the tech sector realize how basic this is. It's not about my making critical transactions at 10 am on Sunday. It's a symptom of a much deeper problem. If vanguard can't roll out routine upgrades without taking the site down- something your average blogger can now do easil...
by zuma
Sun Jul 09, 2017 2:25 pm
Forum: Personal Consumer Issues
Topic: How to compromise on moving
Replies: 10
Views: 1115

Re: How to compromise on moving

I agree with others -- take a longer (1-3 months) vacation somewhere nice and rent a home with a pool in the backyard. Your wife can get a taste of the lifestyle she's craving and you can get a feel for what it might be like to leave your comfort zone permanently. Seems like a win-win to me. :)
by zuma
Sun Jul 09, 2017 1:09 pm
Forum: Personal Consumer Issues
Topic: can't logon to vanguard account [Website Down]
Replies: 92
Views: 3692

Re: Is Vanguard down this AM (7/9/17)?

How many times have you seen 'site down for maintainence' on google, amazon, etc? It happens. Rarely, but it happens. Google and Amazon are also two of the most sophisticated tech companies in the world, so the comparison isn't exactly fair. :) I agree that unexpected downtime can be disconcerting,...
by zuma
Sun Jul 09, 2017 12:54 pm
Forum: Personal Consumer Issues
Topic: September short trip ideas
Replies: 32
Views: 2486

Re: September short trip ideas

What kinds of activities are you interested in?
by zuma
Sun Jul 09, 2017 1:30 am
Forum: Investing - Help with Personal Investments
Topic: Starting my first index fund
Replies: 8
Views: 1010

Re: Starting my first index fund

No one knows what the market will do. The fact that we're near an all-time high is not an uncommon situation. There will almost certainly be another crash at some point in the future, but there's no guarantee that prices will ever fall below today's level. So if you have a long-term investment horiz...
by zuma
Sun Jul 09, 2017 1:00 am
Forum: Investing - Help with Personal Investments
Topic: What Vanguard International Index Fund?
Replies: 10
Views: 1139

Re: What Vanguard International Index Fund?

"How much international" is probably the most debated topic around here at the moment. There is no consensus -- you'll have to consider the various arguments and come up with a percentage that makes sense to you. I hold 20% of my stocks in VXUS but I think anything from 20% to 50% is fine and honest...
by zuma
Sat Jul 08, 2017 10:36 am
Forum: Investing - Theory, News & General
Topic: "Bond wipeout has just begun"???
Replies: 84
Views: 12364

Re: "Bond wipeout has just begun"???

So is this "really" the end of the multi-year bond rally? And if bonds/bond funds are in for a long period of declining prices, and stocks are pricey, what do you do? Sit it out in a money market fund making nothing (and actually losing money to inflation)? https://www.bloomberg.com/news/articles/2...
by zuma
Fri Jul 07, 2017 8:28 am
Forum: Investing - Theory, News & General
Topic: Asset Allocation Precluding DCA
Replies: 25
Views: 1305

Re: Asset Allocation Precluding DCA

I am guessing that OP's equity portion of the portfolio is growing fast enough that they need to direct all new dollars to bonds in order to stay closer to the 60/40 target. Therefore, no new dollars are getting added to stocks (and therefore no dollar cost averaging happening). Yes, this is what I...
by zuma
Fri Jul 07, 2017 7:18 am
Forum: Investing - Theory, News & General
Topic: Asset Allocation Precluding DCA
Replies: 25
Views: 1305

Re: Asset Allocation Precluding DCA

Why wouldn't you simply add new contributions in a way that brings you back to your target AA? Why is buying every asset class when you add new money preferable to maintaining your overall asset allocation? I intentionally used the word 'like' in my post. It is more emotional than factual, but I ve...
by zuma
Fri Jul 07, 2017 7:08 am
Forum: Investing - Theory, News & General
Topic: Asset Allocation Precluding DCA
Replies: 25
Views: 1305

Re: Asset Allocation Precluding DCA

This will continue until things get back into balance. I don't like shutting off buying an entire asset class so I am trying this method first. If it starts to get really out of whack I may tweak it further. Why wouldn't you simply add new contributions in a way that brings you back to your target ...
by zuma
Fri Jul 07, 2017 6:36 am
Forum: Investing - Theory, News & General
Topic: Asset Allocation Precluding DCA
Replies: 25
Views: 1305

Re: Asset Allocation Precluding DCA

I'm also not really understanding the question. It sounds like your target AA is 60/40, and your stock allocation is already at 60% or more, so you can't buy more of the stock fund -- correct? Couldn't you also DCA into bonds as well so you maintain your AA?
by zuma
Fri Jul 07, 2017 5:42 am
Forum: Investing - Theory, News & General
Topic: "Bond wipeout has just begun"???
Replies: 84
Views: 12364

Re: "Bond wipeout has just begun"???

oldcomputerguy wrote:
nbseer wrote:So is this "really" the end of the multi-year bond rally? And if bonds/bond funds are in for a long period of declining prices, and stocks are pricey, what do you do?
Rebalance.
This is the correct answer. :)
by zuma
Fri Jul 07, 2017 3:10 am
Forum: Investing - Theory, News & General
Topic: Nominal Returns
Replies: 15
Views: 1332

Re: Forecasting stock and bond returns?

I am a Boglehead stay-the-course investor so forecasts are almost meaningless. One exception is that we need to guess on long-term stock and bond returns to help us decide how much to save. Agreed 100%. If you're still accumulating and you need a rough guide for determining a savings rate, then for...
by zuma
Fri Jul 07, 2017 2:41 am
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 16781

Re: Dividend Misunderstandings & Only Spend Return

Personally, as a young person, no one ever told me that it was wise to spend only portfolio dividends and interest — nor do I recall ever reading this advice in a book — but it was certainly a strong, unconscious aspect of financial lore that I absorbed from somewhere growing up in America. I think...
by zuma
Thu Jul 06, 2017 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: Can you buy a house with little or no income?
Replies: 24
Views: 2329

Re: Can you buy a house with little or no income?

Angelus359 wrote:Banks want income.

You could buy in cash however
Yes, in my experience lenders don't care about your assets. They want to see steady and adequate income.
by zuma
Thu Jul 06, 2017 12:33 pm
Forum: Investing - Help with Personal Investments
Topic: Shifting Allocation
Replies: 5
Views: 576

Re: Shifting Allocation

Choosing an appropriate AA is a matter of assessing your need, ability, and willingness to take risk in order to meet your investment goals. "Current market conditions" should be irrelevant when making that decision if you have a 20 year horizon. Even if we have a crash like 2008-2009 which creates...
by zuma
Thu Jul 06, 2017 8:54 am
Forum: Investing - Help with Personal Investments
Topic: Shifting Allocation
Replies: 5
Views: 576

Re: Shifting Allocation

Choosing an appropriate AA is a matter of assessing your need, ability, and willingness to take risk in order to meet your investment goals. "Current market conditions" should be irrelevant when making that decision if you have a 20 year horizon.
by zuma
Thu Jul 06, 2017 3:50 am
Forum: Personal Finance (Not Investing)
Topic: Do you keep a balance in your settlement fund?
Replies: 30
Views: 3182

Re: Do you keep a balance in your settlement fund?

No, I keep cash in my high-yield savings account, not my settlement fund. But I see no harm in keeping a small balance of $1,000 in your settlement fund if you think it would give you extra flexibility in the case of an emergency.
by zuma
Thu Jul 06, 2017 2:57 am
Forum: Personal Finance (Not Investing)
Topic: Should I move abroad to minimize health care costs?
Replies: 80
Views: 6834

Re: Should I move abroad to minimize health care costs?

Basically healthcare costs are two tiered, USA+Canada then the rest of the world. High quality healthcare is now widely available at "rest of the world" pricing. I recently stumbled upon this interesting paper on the history of the German health care system: Statutory health insurance in Germany: a...
by zuma
Mon Jul 03, 2017 12:32 pm
Forum: Personal Consumer Issues
Topic: Does anybody else out there still pay for an email address?
Replies: 73
Views: 8120

Re: Does anybody else out there still pay for an email address?

I've been a paying FastMail customer for more than 10 years. It's a VERY good product. They also provide reliable DNS hosting, some basic web hosting features, and solid calendar tools (CalDAV). It's a great company and I'm happy to support them.
by zuma
Mon Jul 03, 2017 7:27 am
Forum: Investing - Help with Personal Investments
Topic: Which total bond fund to go with?
Replies: 14
Views: 1741

Re: Which total bond fund to go with?

There are many older threads on this topic, e.g. viewtopic.php?t=169873

Short answer: it doesn't matter, especially if this is only 5–10% of your portfolio. The funds are very similar and you can't go wrong with either one. :)
by zuma
Mon Jul 03, 2017 2:19 am
Forum: Investing - Help with Personal Investments
Topic: Bonds or TIPS?
Replies: 46
Views: 4113

Re: Bonds or TIPS?

I agree that you need to think about why you hold bonds in the first place. Bonds are typically held to dilute the overall risk of a portfolio. If you are seeking more expected return from your portfolio, thus taking on more risk, then I would suggest you consider a higher allocation of stocks relat...
by zuma
Sun Jul 02, 2017 7:16 am
Forum: Personal Consumer Issues
Topic: Bogleheads: you should be buying 10-year old cars
Replies: 173
Views: 14582

Re: Bogleheads: you should be buying 10-year old cars

I envy you. Do you live in Brooklyn or New York? I live in Staten Island where a car is still necessary but if I had the money I would move to Brooklyn or New York City and get rid of my car ASAP. That has been a dream of mine since I was a kid, but my wife doesn't like the city and want's to move ...
by zuma
Sun Jul 02, 2017 5:59 am
Forum: Personal Consumer Issues
Topic: Bogleheads: you should be buying 10-year old cars
Replies: 173
Views: 14582

Re: Bogleheads: you should be buying 10-year old cars

Best solution: don't buy a car at all, live where public transportation is good, and use something like Zipcar for the rest. Agreed! However, most people here seem to live in areas where a car is necessary. I haven't owned a car in 15 years and I don't miss it at all. I will occasionally rent a car...
by zuma
Sat Jul 01, 2017 4:03 am
Forum: Personal Finance (Not Investing)
Topic: Should I move abroad to minimize health care costs?
Replies: 80
Views: 6834

Re: Should I move abroad to minimize health care costs?

You need to move TO something. Not AWAY from something. I think moving away from something can be a valid consideration! But yes, positive factors should be the primary force. Our decision to move abroad was informed by a combination of push/pull factors -- we were definitely moving away from some ...
by zuma
Sat Jul 01, 2017 3:32 am
Forum: Personal Finance (Not Investing)
Topic: Should I move abroad to minimize health care costs?
Replies: 80
Views: 6834

Re: Should I move abroad to minimize health care costs?

Even in places where English is widely spoken (Europe) you will be expected to be multilingual in the work force. Not necessarily. Many companies in the EU have a high percentage of international employees and it's common for those companies to do business in English (at least internally). Of cours...
by zuma
Sat Jul 01, 2017 3:14 am
Forum: Personal Finance (Not Investing)
Topic: Should I move abroad to minimize health care costs?
Replies: 80
Views: 6834

Re: Should I move abroad to minimize health care costs?

Don't let the naysayers keep you down. My wife and I moved abroad four years ago and it was one of the best decisions we've ever made. I think health care should be one of many factors to consider, but not the only one. In the US, health care is obviously a broken system -- or, more generously, a sy...
by zuma
Fri Jun 30, 2017 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: Work / life balance and overtime
Replies: 10
Views: 1149

Re: Work / life balance and overtime

Money is not a goal in and of itself. If I were you, I'd spend my extra time developing relationships, learning new hobbies, and traveling the world. You say you want a better balance -- what's stopping you?