Search found 257 matches

by zuma
Tue May 09, 2017 10:18 am
Forum: Investing - Theory, News & General
Topic: Why Does The 60/40 Work So Well?
Replies: 72
Views: 9441

Re: Why Does The 60/40 Work So Well?

To be clear, this was based on the assumption we know 80/20 was financially better for you than 60/40, and in fact we don't know that. But my point is that the orthodoxy seems to treat something like going from an all-in-one fund to a more tax-efficient DIY portfolio as a casual decision, whereas g...
by zuma
Tue May 09, 2017 7:58 am
Forum: Investing - Theory, News & General
Topic: Why Does The 60/40 Work So Well?
Replies: 72
Views: 9441

Re: Why Does The 60/40 Work So Well?

Again, though, I agree that everyone is an individual. But if you are starting with the basic framework of a person who is anxious about losses beyond their practical implications--and it is certainly a common attribute--then addressing that problem through asset allocation might be both costly and...
by zuma
Tue May 09, 2017 3:04 am
Forum: Investing - Theory, News & General
Topic: Why Does The 60/40 Work So Well?
Replies: 72
Views: 9441

Re: Why Does The 60/40 Work So Well?

I think this AA is widely used mostly because it fits the risk tolerance level of many investors. A 50% decline in equities is roughly the worst that an investor has had to deal with in a single year (multiple years of negative returns can happen though; look at the Great Depression). Such a declin...
by zuma
Mon May 08, 2017 6:08 pm
Forum: Investing - Help with Personal Investments
Topic: Solid justification for including all stocks & NO bonds?
Replies: 143
Views: 6432

Re: Solid justification for including all stocks & NO bonds?

knpstr, OP is not adding to this investment from his annual saving. So, you cannot say that he is in the accumulation phase. KlangFool One can reinvest dividends and still be accumulating -- especially when looking at a long investment period. zuma, Yes, but that does not change the fact that A) A ...
by zuma
Mon May 08, 2017 5:58 pm
Forum: Investing - Help with Personal Investments
Topic: Solid justification for including all stocks & NO bonds?
Replies: 143
Views: 6432

Re: Solid justification for including all stocks & NO bonds?

KlangFool wrote:knpstr,

OP is not adding to this investment from his annual saving. So, you cannot say that he is in the accumulation phase.

KlangFool

One can reinvest dividends and still be accumulating -- especially when looking at a long investment period.
by zuma
Mon May 08, 2017 1:39 pm
Forum: Investing - Help with Personal Investments
Topic: How much risk do I need?
Replies: 21
Views: 1584

Re: How much risk do I need?

I would suggest 60/40.
by zuma
Mon May 08, 2017 7:17 am
Forum: Investing - Help with Personal Investments
Topic: Solid justification for including all stocks & NO bonds?
Replies: 143
Views: 6432

Re: Solid justification for including all stocks & NO bonds?

Question: Is there any solid reason NOT to invest 100% in stocks, perhaps a balance of large cap, TSM, and TISM? You should design a portfolio to meet your specific investing goals. If your goals can realistically be met with a 60/40 portfolio (for example), that's a solid reason to not invest 100%...
by zuma
Sun May 07, 2017 12:05 pm
Forum: Personal Consumer Issues
Topic: Where to Live on $60K or Less a Year?
Replies: 242
Views: 24695

Re: Where to Live on $60K or Less a Year?

What's that saying? "No matter where you go, there you are." Moving to a new place will not make you a happier person. Maybe you can become a happier person and stay where you are. What's good about where you live now? What would you miss about it? Do you have a social support network? Ch...
by zuma
Fri May 05, 2017 6:06 am
Forum: Investing - Help with Personal Investments
Topic: First portfolio critiques (US Expat)
Replies: 18
Views: 1274

Re: First portfolio critiques (US Expat)

Thanks for the replies! I want exposure to value stocks as well--apologies--I'm very new to investing and I have a lot to learn. What would be a good mix, that would include us and intl value stocks as well? VTI and VXUS will provide exposure to value stocks at market-cap weights. A 3-fund approach...
by zuma
Fri May 05, 2017 3:35 am
Forum: Investing - Help with Personal Investments
Topic: Tax Efficient Allocation
Replies: 8
Views: 883

Re: Tax Efficient Allocation

I'm looking to create a portfolio that is tax efficient and would have an annualized return of 7%. I'm on the conservative side with a 10 year time horizon. I like to sleep at night without​ worrying! I I have about 200K to invest. 7% annual return (real or nominal) is not a realistic expectation f...
by zuma
Fri May 05, 2017 2:11 am
Forum: Personal Finance (Not Investing)
Topic: Convince me that I'm holding too much cash
Replies: 62
Views: 8007

Re: Convince me that I'm holding too much cash

How many years of annual spending does 15% represent? If more than 3, invest it with your desired overall asset allocation. Virtually all of it is at Ally @1.05%. Cash could cover ~3-5 years of expenses. I would probably keep 2 or 3 years of expenses in the savings account and invest the remainder ...
by zuma
Fri May 05, 2017 1:46 am
Forum: Investing - Help with Personal Investments
Topic: First portfolio critiques (US Expat)
Replies: 18
Views: 1274

Re: First portfolio critiques (US Expat)

I think it's too complicated. :) Why not stick with a three-fund portfolio ? What reasoning led you to choose those 8 funds? If you want to deviate from the 3-fund approach by adding a REIT or small-cap value, that would be reasonable, but otherwise just keep it simple. For bonds, BND is a good defa...
by zuma
Thu May 04, 2017 6:28 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio review, new to investing.
Replies: 8
Views: 951

Re: Portfolio review, new to investing.

I appreciate the advice. I have definitely been looking into the three fund portfolio for the fidelity equivalent. so far I am thinking to just do the 48/12/40 fidelity FSTVX domestic stock 48% .045 exp ratio fidelity FTPIX international stock 12% .045 exp ratio fidelity FSITX Bond Index Fund 20% G...
by zuma
Wed May 03, 2017 12:54 pm
Forum: Investing - Help with Personal Investments
Topic: If you had 30,000 dollars to invest in your future, how would you do it?
Replies: 49
Views: 5105

Re: If you had 30,000 dollars to invest in your future, how would you do it?

... i am still stumped on what exactly i should do with the money.... I want to be able to live comfortable for the rest of my life,... I want to invest it in a way that i will be set for the near and distant future... ...If you had 30,000 dollars at 19 years old, what would you do with it?.. Hi Tr...
by zuma
Wed May 03, 2017 12:11 pm
Forum: Personal Finance (Not Investing)
Topic: have you accepted a lower cost lifestyle to retire early?
Replies: 71
Views: 9107

Re: have you accepted a lower cost lifestyle to retire early?

I'd look into small midwestern college towns like Oberlin, Ohio or Ames, Iowa.

Even larger towns like Ann Arbor or Madison could be cheap enough for you and would offer much more.
by zuma
Wed May 03, 2017 7:23 am
Forum: Investing - Help with Personal Investments
Topic: My dad needs my help.
Replies: 50
Views: 4920

Re: My dad needs my help.

1. Leaving the money with the financial advisor group - they charge 1% fees and are pushing some annuities pretty hard. 2. Financial advisory services with Vanguard (appointment set for Monday so will see what they offer) 3. One of the robo-services (Betterment, Wealthfront, etc.) 4. Finding a fidu...
by zuma
Wed May 03, 2017 3:41 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio review, new to investing.
Replies: 8
Views: 951

Re: Portfolio review, new to investing.

Fidelity 500 Index Fund - Premium Class/FUSVX $32,774.80 Invesco Diversified Dividend A/LCEAX $32,774 waivered transaction fee and load. .8 exp ratio JHancock International Growth A/GOIGX $32,774.80 Parnassus Endeavor Investor/PARWX $43,699.74 Champlain Mid Cap Adv/CIPMX $10,924.93 Guggenheim Total...
by zuma
Tue May 02, 2017 3:11 pm
Forum: Investing - Theory, News & General
Topic: Bitcoin Purchase
Replies: 99
Views: 9989

Re: Bitcoin Purchase

Flymore wrote:The cover of IBD 12/26 had a good article on Bitcoin, you may want to check it out.
The technology underlying bitcoin is Blockchain, this will replace much of the transaction based technology in use today.

On that topic, A Brief History of Blockchain by Vinay Gupta is a good place to start.
by zuma
Mon May 01, 2017 3:08 pm
Forum: Investing - Theory, News & General
Topic: Should we treat investors' tolerance for volatility as fixed?
Replies: 121
Views: 4076

Re: Should we treat investors' tolerance for volatility as fixed?

Did someone mention Homo Economicus? :happy https://www.linkedin.com/pulse/homo-economicus-non-existent-species-richard-thaler-ramana-c-v- http://blog.acton.org/archives/78448-the-myth-of-homo-economicus.html Richard Thaler's book Misbehaving is a great read on this subject. One of my favorites on ...
by zuma
Mon May 01, 2017 2:30 pm
Forum: Investing - Theory, News & General
Topic: Asset allocation tools for investors around the world
Replies: 4
Views: 619

Re: Asset allocation tools for investors around the world

Thanks for the update and keep up the great work. Cheers.
by zuma
Mon May 01, 2017 12:47 pm
Forum: Investing - Theory, News & General
Topic: Should we treat investors' tolerance for volatility as fixed?
Replies: 121
Views: 4076

Re: Should we treat investors' tolerance for volatility as fixed?

Thanks for the elaboration, alex_686. I think I need to read a few more books on the topic. :)
by zuma
Mon May 01, 2017 12:28 pm
Forum: Investing - Help with Personal Investments
Topic: What is the purpose of bonds?
Replies: 20
Views: 1066

Re: What is the purpose of bonds?

For example, if you go to Vanguards "asset mix" it will say that a portfolio of 100% bonds has averaged a 5.4% return. How? That's the average yearly return for the period between 1926 and 2015. Interest rates fluctuated a lot during that period. Sorry if Im coming off like a doofus! Im j...
by zuma
Mon May 01, 2017 12:15 pm
Forum: Investing - Help with Personal Investments
Topic: What is the purpose of bonds?
Replies: 20
Views: 1066

Re: What is the purpose of bonds?

jb1 wrote:For example, if you go to Vanguards "asset mix" it will say that a portfolio of 100% bonds has averaged a 5.4% return. How?

That's the average yearly return for the period between 1926 and 2015. Interest rates fluctuated a lot during that period.
by zuma
Mon May 01, 2017 11:43 am
Forum: Investing - Help with Personal Investments
Topic: What is the purpose of bonds?
Replies: 20
Views: 1066

Re: What is the purpose of bonds?

They dont really fluctuate much That is the whole purpose actually. To reduce the risk thus reduce overall fund fluctuation, and make your "roller coaster ride" is more tolerable. But how do you make money off them then? I have 8k in VBMFX, about 800 shares. VBMFX pays about .02 per share...
by zuma
Mon May 01, 2017 11:39 am
Forum: Investing - Theory, News & General
Topic: Should we treat investors' tolerance for volatility as fixed?
Replies: 121
Views: 4076

Re: Should we treat investors' tolerance for volatility as fixed?

Well, this brings us back to the study of behavioral finance, which attempts to understand the degree to which investors (or humans in general) do not always act as pure rational agents. This is subtle wrong. Behavioral economics is too look for ways that homo sapiens differ from homo economicus. M...
by zuma
Mon May 01, 2017 10:21 am
Forum: Personal Consumer Issues
Topic: buying dining table is hard
Replies: 55
Views: 3442

Re: buying dining table is hard

What is your budget?
by zuma
Mon May 01, 2017 10:15 am
Forum: Investing - Help with Personal Investments
Topic: Where to park 200k cash for 2-5 years
Replies: 24
Views: 3452

Re: Where to park 200k cash for 2-5 years

All of these recommendations are missing the fact the OP is in California. CDs and corporate bonds get double doses of taxes. I think 10-20% should be invested in stocks (limiting the downside while providing real diversification) and the rest is a mix of short term TVA bonds (near CD rates and sta...
by zuma
Mon May 01, 2017 8:40 am
Forum: Investing - Theory, News & General
Topic: Should we treat investors' tolerance for volatility as fixed?
Replies: 121
Views: 4076

Re: Should we treat investors' tolerance for volatility as fixed?

knpstr wrote:Brings us back? That is what we've been talking about this whole time, haha.

We've been talking more about our opinions rather than the research itself.
by zuma
Mon May 01, 2017 8:08 am
Forum: Investing - Theory, News & General
Topic: Should we treat investors' tolerance for volatility as fixed?
Replies: 121
Views: 4076

Re: Should we treat investors' tolerance for volatility as fixed?

There must come a point that you can understand the reasons for doing something so well that it overrides your emotions. I appreciate what you're saying, but we're humans, not robots. Every investor is different and we should all do our best to understand ourselves -- and act accordingly. I may be ...
by zuma
Mon May 01, 2017 7:36 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice After Year 1
Replies: 9
Views: 1383

Re: Portfolio Advice After Year 1

One note on your percentages: they should add up to 100% across the entire portfolio, not within each account. Doing that will give everyone a better picture of your whole portfolio.
by zuma
Mon May 01, 2017 7:17 am
Forum: Investing - Theory, News & General
Topic: Should we treat investors' tolerance for volatility as fixed?
Replies: 121
Views: 4076

Re: Should we treat investors' tolerance for volatility as fixed?

knpstr wrote:There must come a point that you can understand the reasons for doing something so well that it overrides your emotions.

I appreciate what you're saying, but we're humans, not robots.

Every investor is different and we should all do our best to understand ourselves -- and act accordingly.
by zuma
Mon May 01, 2017 6:59 am
Forum: Investing - Theory, News & General
Topic: Best source for investment news?
Replies: 52
Views: 4346

Re: Best source for investment news?

Perhaps in keeping with the idea to stay simple, I prefer economic news to investing news, and I prefer Reuters for breaking economic news, which I use to inform my search for deeper analysis and diverging viewpoints. Days to months after it done been broke is a good time to find that sort of thing...
by zuma
Sun Apr 30, 2017 12:40 pm
Forum: Investing - Help with Personal Investments
Topic: Where to park 200k cash for 2-5 years
Replies: 24
Views: 3452

Re: Where to park 200k cash for 2-5 years

Most Bogleheads will recommend avoiding stocks if you'll need the money in less than 5 years. That is good advice, but it sounds like you're willing to take some extra risk because of your flexible timeframe. You might consider the LifeStrategy Income fund. It's 20% stocks and 80% bonds. If that's n...
by zuma
Sun Apr 30, 2017 9:12 am
Forum: Investing - Theory, News & General
Topic: Should we treat investors' tolerance for volatility as fixed?
Replies: 121
Views: 4076

Re: Should we treat investors' tolerance for volatility as fixed?

When looking at your investing goals, you should consider all the options available. Saving as much as possible is almost always a prudent choice. Although this is a heterodox view, I want to push back a little on that. I think for many people here, "saving as much as possible" is just a ...
by zuma
Sun Apr 30, 2017 3:53 am
Forum: Investing - Theory, News & General
Topic: Should we treat investors' tolerance for volatility as fixed?
Replies: 121
Views: 4076

Re: Should we treat investors' tolerance for volatility as fixed?

When looking at your investing goals, you should consider all the options available. Saving as much as possible is almost always a prudent choice. Taking neither too little nor too much risk is also a good idea. The question is, what if I've done all I can (in terms of saving, paying debt, etc.) but...
by zuma
Sat Apr 29, 2017 4:19 pm
Forum: Investing - Theory, News & General
Topic: Why aren't small cap indices a major portion of recommended stock allocations?
Replies: 49
Views: 3748

Re: Why aren't small cap indices a major portion of recommended stock allocations?

Some investors (myself included) prefer the simplicity of a cap-weighted total market fund.

If I want more risk in exchange for more expected return, I'll change my AA to include more stocks.
by zuma
Sat Apr 29, 2017 2:14 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Suggestion
Replies: 14
Views: 868

Re: Portfolio Suggestion

bluehawk91 wrote:I'm learning about stocks, and I do not have enough knowledge yet to pick stocks/bonds/etfs on my own. For simplicity at the moment, I can allocate all accounts in Target Date Funds.

Thank you!

:thumbsup

Good luck!
by zuma
Sat Apr 29, 2017 11:46 am
Forum: Personal Finance (Not Investing)
Topic: calculating best house value across US markets
Replies: 18
Views: 1912

Re: calculating best house value across US markets

Numbeo might be helpful. https://www.numbeo.com Numbeo provides a tool to see, share and compare information about cost of living worldwide, by providing online software which: - provides to a reader of a website prices for free - uses wisdom of the crowd to get as reliable data as possible - provid...
by zuma
Sat Apr 29, 2017 10:07 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Suggestion
Replies: 14
Views: 868

Re: Portfolio Suggestion

I'm considering 50% of S&P500 because of the rate of return. I have been tracking it and it has done very well over time. Choosing funds based on past returns is a poor way to build a portfolio. It's better to think about your desired asset allocation and then decide on funds to realize that al...
by zuma
Sat Apr 29, 2017 9:33 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Suggestion
Replies: 14
Views: 868

Re: Portfolio Suggestion

So, my portfolio would look like this: 1) 401K - Target Date Fund 2) Roth IRA - VFFVX 3) TIRA - VFFVX Looks good. Is VFFVX going to be aggressive? I'd like something aggressive in the portfolio. I was thinking about 50% VFFVX and 50% S&P500 for TIRA. I'll not be putting more funds into TIRA tha...
by zuma
Sat Apr 29, 2017 8:25 am
Forum: Investing - Help with Personal Investments
Topic: Does Portfolio Size Influence Stock/Bond Allocation?
Replies: 43
Views: 4381

Re: Does Portfolio Size Influence Stock/Bond Allocation?

Are there people who at 45 are 100% stocks? I don't think I will go there, but I could see a way to rationalize it or close to it (maybe 10% fixed income/other) especially with both spouses working and covering current expenses. Some are, but that's not particularly relevant IMO. What are your inve...
by zuma
Sat Apr 29, 2017 3:48 am
Forum: Investing - Help with Personal Investments
Topic: Help with Investing for Elderly Parents
Replies: 14
Views: 1132

Re: Help with Investing for Elderly Parents

What do they want? Are there things on their bucket lists that they still want to do? That's where I would start. I am assuming and you know where that leads.... +1 What is their experience with investing? Will they get nervous when the market falls? Did they ask for your help? Are they both of sou...
by zuma
Sat Apr 29, 2017 2:42 am
Forum: Investing - Help with Personal Investments
Topic: Retirement income for 50+ years?
Replies: 167
Views: 14980

Re: Retirement income for 50+ years?

I agree that you shouldn't focus on dividends.

A total-return approach is generally recommended here, especially if you're a long-term investor.
by zuma
Fri Apr 28, 2017 5:54 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Suggestion
Replies: 14
Views: 868

Re: Portfolio Suggestion

Hi, welcome to the forum. Let me know if I can provide any further information. 1) What funds do you hold in your Roth IRA? 2) What funds do you hold in your TIRA? 3) I'm a little confused about the status of your 401k. Is it currently with ML or Vanguard? 4) For each fund that you hold, please ind...
by zuma
Fri Apr 28, 2017 10:36 am
Forum: Investing - Theory, News & General
Topic: Should we treat investors' tolerance for volatility as fixed?
Replies: 121
Views: 4076

Re: Should we treat investors' tolerance for volatility as fixed?

We need to use whatever strategy that works for us. KlangFool That's a good point. If you can achieve your investment objectives with a low-volatility strategy, then why not? Accepting more risk is not an end in itself. However, if an aversion to risk is preventing you from realizing your goals, th...
by zuma
Fri Apr 28, 2017 10:21 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Suggestion
Replies: 14
Views: 868

Re: Portfolio Suggestion

Hi, welcome to the forum. Let me know if I can provide any further information. 1) What funds do you hold in your Roth IRA? 2) What funds do you hold in your TIRA? 3) I'm a little confused about the status of your 401k. Is it currently with ML or Vanguard? 4) For each fund that you hold, please indi...
by zuma
Fri Apr 28, 2017 8:49 am
Forum: Investing - Help with Personal Investments
Topic: Beginner portfolio advice requested.
Replies: 4
Views: 346

Re: Beginner portfolio advice requested.

2. I know bonds are good, but I really don't understand them. I'm torn between BND and VCIT. Which would be better long term? Or just get both? You can't go wrong with BND. It's a fine default choice for a core bond holding. VCIT is 100% corporate bonds, which means more risk in exchange for more e...
by zuma
Fri Apr 28, 2017 6:54 am
Forum: Forum Issues and Administration
Topic: Why not add a "like" button to Boglehead posts?
Replies: 143
Views: 19341

Re: Why not add a "like" button to Boglehead posts?

pondering wrote:The pejorative term used was yours, not mine. Several of them have been used here, and if I have used any, I'll correct my posts. Leaving name calling in a thread like this is inappropriate on both sides.

Fair point. I've updated my post. :)
by zuma
Fri Apr 28, 2017 6:50 am
Forum: Investing - Theory, News & General
Topic: Should we treat investors' tolerance for volatility as fixed?
Replies: 121
Views: 4076

Re: Should we treat investors' tolerance for volatility as fixed?

Interesting question. I haven't read any of the research myself, but I would guess that one's emotional disposition toward risk is informed by a variety of factors both environment and genetic. I would also suspect that one's investing temperament -- and attitudes toward risk in general -- could cha...

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