Search found 422 matches

by zuma
Tue Dec 18, 2018 6:24 am
Forum: Investing - Help with Personal Investments
Topic: Investing a lump sum in today's market climate
Replies: 16
Views: 2188

Re: Investing a lump sum in today's market climate

Here's what I trot out in these. Absent taxes, there's difference between holding cash and not buying stocks and selling stocks. So each day that the market is open, I "lump sum" close to 400k into the market because I don't sell what is in my IRAs and 401(k). Yes. This is the crux of it. "Lump sum...
by zuma
Tue Dec 18, 2018 5:18 am
Forum: Investing - Help with Personal Investments
Topic: Future Investments as We Ready For Retirement
Replies: 2
Views: 310

Re: Future Investments as We Ready For Retirement

If you can agree on an overall asset allocation, why not just stick to that? For example: you might want to retire with 60% stocks, 30% bonds, and 10% cash (money market). In the next two years, invest so that your allocation stays on target. When you retire, take withdrawals from stocks if they're ...
by zuma
Mon Dec 17, 2018 1:26 pm
Forum: Investing - Help with Personal Investments
Topic: 3-8 year investments
Replies: 9
Views: 770

Re: 3-8 year investments

Just looked at some balanced funds. Fees are a bit higher than index funds. Better to buy the funds separately and create your own allocation? The expense ratio for VTINX is 0.13%, which is higher than Vanguard's cheapest funds, but it's still cheap. For a short-term investment it's not a meaningfu...
by zuma
Mon Dec 17, 2018 12:43 pm
Forum: Investing - Help with Personal Investments
Topic: 3-8 year investments
Replies: 9
Views: 770

Re: 3-8 year investments

What about putting the money into the bond market? Less returns than stocks but not as volatile? It really depends on your approach to risk/return. If you think you'll need the money in 3 years, then stocks are probably too risky; a short-term bond fund would be more appropriate. But if you have th...
by zuma
Mon Dec 17, 2018 10:43 am
Forum: Investing - Theory, News & General
Topic: What type of bond investor are you?
Replies: 31
Views: 2028

Re: What type of bond investor are you?

There isn't a single approach to investing. Some people would like to fit every human into a pre-labelled box (figuratively). But, humans are complex beings. Sometimes, using broad categories can be helpful, but not always. I haven't figured out, yet, what goal the proposed a-to-d categorization (w...
by zuma
Mon Dec 17, 2018 9:42 am
Forum: Personal Finance (Not Investing)
Topic: Airbnb as side gig
Replies: 44
Views: 2890

Re: Airbnb as side gig

I've done this for the past year in a major European city where I have a spare bedroom. I have never been afraid of my guests and I don't think it's a particularly dangerous thing to do. So far I've had only good experiences and I've met some interesting travelers. Sure, there's a risk when you allo...
by zuma
Mon Dec 17, 2018 6:32 am
Forum: Investing - Help with Personal Investments
Topic: What is a good very safe Vanguard fund?
Replies: 17
Views: 2278

Re: What is a good very safe Vanguard fund?

I would use a Vanguard money market account. No need to overcomplicate things.
by zuma
Mon Dec 17, 2018 6:22 am
Forum: Investing - Theory, News & General
Topic: What type of bond investor are you?
Replies: 31
Views: 2028

Re: What type of bond investor are you?

I'm a mix of A, B, and D.

I don't care about bond "income" in isolation. The portfolio as a whole should generate enough total return to support my withdrawal rate.
by zuma
Fri Dec 14, 2018 12:36 pm
Forum: Investing - Help with Personal Investments
Topic: Imminent retirees & sequence fear
Replies: 64
Views: 3450

Re: Imminent retirees & sequence fear

Diver4242 wrote:
Fri Dec 14, 2018 10:54 am
But anyway, that's why being 'out' makes us nervous, and we're anxious to get back in. It's not a good position to be in, which led to my post.
Why not 20/80 or 30/70? Still very conservative, but at least you have some exposure to stocks.
by zuma
Fri Dec 14, 2018 11:13 am
Forum: Investing - Help with Personal Investments
Topic: Imminent retirees & sequence fear
Replies: 64
Views: 3450

Re: Imminent retirees & sequence fear

OP in the long run you'll need some equity to outpace inflation. Consider keeping things simple and choose say the Vanguard LifeStrategy Conservative Growth Fund (VSCGX) at 40% equity and 60% bonds. Looks like it dipped about 8% in 2008 so if you are worried about market risk, this could satisfy yo...
by zuma
Thu Dec 13, 2018 3:13 am
Forum: Investing - Theory, News & General
Topic: So Much Red [in cost basis of taxable accounts]
Replies: 26
Views: 2512

Re: So Much Red

US stock market is basically flat for the year. If this is troubling you, you might want to reconsider your risk tolerance. Reconsidering your risk tolerance isn't going to help when both stocks and bonds have awful returns. Your only option at that point is to accept it or choose an investment tha...
by zuma
Wed Dec 12, 2018 5:41 pm
Forum: Investing - Theory, News & General
Topic: Recession Coming
Replies: 49
Views: 6084

Re: Recession Coming

I was just wondering if I deploy my newly aquired powder which is in Vanguard Money Market and is equivalent to 15x expenses. This "dry powder" concept makes no sense to me. If you were already fully invested, would you be thinking about withdrawing 15x expenses (assuming no tax consequences) and t...
by zuma
Wed Dec 12, 2018 12:24 pm
Forum: Investing - Theory, News & General
Topic: So Much Red [in cost basis of taxable accounts]
Replies: 26
Views: 2512

Re: So Much Red

If you have cash to invest, and your AA is in balance more or less, would you invest or hold right now, like today. I just bought bought into VG 500 instead of VTSAX which is where most of our money goes in taxable. Mostly because it is a bargain right now and 100% qualified. Unless that cash is be...
by zuma
Wed Dec 12, 2018 12:04 pm
Forum: Investing - Theory, News & General
Topic: So Much Red [in cost basis of taxable accounts]
Replies: 26
Views: 2512

Re: So Much Red

US stock market is basically flat for the year. If this is troubling you, you might want to reconsider your risk tolerance. Reconsidering your risk tolerance isn't going to help when both stocks and bonds have awful returns. Your only option at that point is to accept it or choose an investment tha...
by zuma
Wed Dec 12, 2018 11:05 am
Forum: Investing - Theory, News & General
Topic: So Much Red [in cost basis of taxable accounts]
Replies: 26
Views: 2512

Re: So Much Red

US stock market is basically flat for the year. If this is troubling you, you might want to reconsider your risk tolerance.
by zuma
Wed Dec 12, 2018 7:19 am
Forum: Investing - Theory, News & General
Topic: Is there any market that is not inflated?
Replies: 58
Views: 3619

Re: Is there any market that is not inflated?

You realize that (A) "nobody knows nothin", but you also want to know (B) what is "expected" to do well in the future.

If you really believe A, you wouldn't worry about B.
by zuma
Wed Dec 12, 2018 5:28 am
Forum: Investing - Help with Personal Investments
Topic: VTSAX or VLXVX?
Replies: 4
Views: 479

Re: VTSAX or VLXVX?

At your age, with so many years of investing in front of you, I would go 100% stocks and then reassess after 5-10 years. Since you're investing in tax-advantaged accounts, it'll be easy to change your strategy later without worrying about tax consequences. VTSAX (Total US Market) is a very good choi...
by zuma
Wed Dec 12, 2018 4:14 am
Forum: Investing - Theory, News & General
Topic: What Happened to you during the Financial crisis of 2007–2008
Replies: 231
Views: 17816

Re: What Happened to you during the Financial crisis of 2007–2008

I had a good job, thankfully, and just continued to invest regularly in a target date fund in my 401k all the way through the crisis.
by zuma
Tue Dec 11, 2018 3:52 pm
Forum: Investing - Theory, News & General
Topic: VG ETF ? ... VT not = VTI+VXUS
Replies: 8
Views: 615

Re: VG ETF question -

jainn wrote:
Tue Dec 11, 2018 3:30 pm
Why would VT be up LESS than what is made up of...?
VT is not exactly the same as VTI+VXUS.

Number of stocks:

VTI: 3641
VXUS: 6383
VT: 8126
by zuma
Tue Dec 11, 2018 10:18 am
Forum: Investing - Theory, News & General
Topic: Low need to take risk - decrease allocation to stocks?
Replies: 42
Views: 3119

Re: Low need to take risk - decrease allocation to stocks?

Larry has explained (in this thread ) that need to take risk can be determined by a variety personal factors and can be defined as the rate of return one needs to achieve a particular goal. And as to desire, to me that determines the need. Whatever word you want to put on it, it is the same, what re...
by zuma
Tue Dec 11, 2018 7:46 am
Forum: Investing - Help with Personal Investments
Topic: Total International Stock Market in a three fund portfolio?
Replies: 12
Views: 1018

Re: Total International Stock Market in a three fund portfolio?

My concern is, putting 10-20% of my savings long term into the total int’l market might be effectively regulating a considerable chunk of my portfolio to mediocre performance without any offsetting benefit. Or it might not. There is no consensus on this topic. Choose a percentage that works for you.
by zuma
Mon Dec 10, 2018 2:35 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Bucket in Tax Free?
Replies: 2
Views: 286

Re: Bond Bucket in Tax Free?

I don't think I understand your goal here. I would simply take RMDs from my Wellesley/Wellington funds and my maintain my overall asset allocation. If you don't need to spend the distribution, then reinvest in a taxable account, again maintaining your overall risk profile.
by zuma
Mon Dec 10, 2018 2:03 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Wellesly Income
Replies: 45
Views: 5724

Re: Vanguard Wellesly Income

Some index fund advocates claim that: (1) Wellington and Wellesley Income aren't diversified enough; and (2) Wellington and Wellesley Income's long-term record is irrelevant, because past performance is not necessarily a predictor of future performance. But the fact of the matter is that Wellington...
by zuma
Mon Dec 10, 2018 12:14 pm
Forum: Investing - Help with Personal Investments
Topic: Should I rebalance?
Replies: 6
Views: 530

Re: Should I rebalance?

PC shows our total portfolio allocation as 42.5% US equities, 21% int’l, 20% US bonds, 4% int’l bonds, 10.5 % cash, 2% alternatives Does this look fairly well-balanced, or should I reallocate? We generally seek moderate growth, but our risk tolerance is about 65/35. 63% equities is very close to yo...
by zuma
Mon Dec 10, 2018 11:38 am
Forum: Investing - Help with Personal Investments
Topic: 3/4/5 Fund Portfolio?
Replies: 12
Views: 1575

Re: 3/4/5 Fund Portfolio?

I basically agree with galeno. The number of funds you hold is essentially irrelevant; there's nothing special about having 3-5 funds. If you want 100% stocks, I would put everything in Vanguard Total World and keep it simple with global cap-weight exposure. Add a 10-20% slice of Total Bond if you w...
by zuma
Mon Dec 10, 2018 7:53 am
Forum: Investing - Help with Personal Investments
Topic: Rebalance or wait?
Replies: 5
Views: 675

Re: Rebalance or wait?

Whatever is happening in the market "at the moment" should not prevent you from investing according to your preferred allocation.
by zuma
Fri Dec 07, 2018 10:33 am
Forum: Investing - Help with Personal Investments
Topic: Non-Retirement: VUG vs. VASGX vs. ?
Replies: 10
Views: 621

Re: Non-Retirement: VUG vs. VASGX vs. ?

Any good links for understanding the pros/cons of short/mid/long-term bonds? The wiki is a good place to start: https://www.bogleheads.org/wiki/Bond_basics I use a Total Bond Market fund to keep things simple and diversified. It includes short, intermediate, and long-term bonds with an average dura...
by zuma
Fri Dec 07, 2018 10:13 am
Forum: Investing - Theory, News & General
Topic: Ignored Risks of Factor Investing
Replies: 104
Views: 5180

Re: Ignored Risks of Factor Investing

The "you aren't diversified if you don't use factors tilts" claim by factor proponents is the real scare mongering. I admit that I don't follow these factor threads closely (I'm a total market investor), but I've never seen a claim that "you aren't diversified if you don't use factors". Who is sayi...
by zuma
Fri Dec 07, 2018 8:51 am
Forum: Investing - Theory, News & General
Topic: Ignored Risks of Factor Investing
Replies: 104
Views: 5180

Re: Ignored Risks of Factor Investing

The "you aren't diversified if you don't use factors tilts" claim by factor proponents is the real scare mongering. I admit that I don't follow these factor threads closely (I'm a total market investor), but I've never seen a claim that "you aren't diversified if you don't use factors". Who is sayi...
by zuma
Fri Dec 07, 2018 6:42 am
Forum: Investing - Help with Personal Investments
Topic: Retiring in 2 weeks, Traditional 401k
Replies: 99
Views: 6930

Re: Retiring in 2 weeks, Traditional 401k

Hi and thank you for your contribution. If I want to better insulate his 401k against lets say a 60-70% correction which is rumored to occur within the next year or two, would 20 percent in stocks and 80 percent in bonds insulate them the most? But then I read also that if the fed rate raises, bond...
by zuma
Thu Dec 06, 2018 5:39 pm
Forum: Investing - Theory, News & General
Topic: Three Funds for Retirement Years
Replies: 8
Views: 1177

Re: Three Funds for Retirement Years

Related newbie question - does asset allocation change from say your 30s to later in life? Or is it personal preference and other factors? It depends on your, need, ability, and willingness to take risk. Each investor is different. Retirees typically don't have a need to take a lot of risk, so gene...
by zuma
Thu Dec 06, 2018 4:36 pm
Forum: Investing - Theory, News & General
Topic: Three Funds for Retirement Years
Replies: 8
Views: 1177

Re: Three Funds for Retirement Years

The three-fund portfolio is fine for retirement. Focus on total return, not income or yield. As Vanguard says: The current low-yield environment is leading many investors to focus on only one piece of their portfolio’s total return, namely, the income return. This focus may be encouraging investors ...
by zuma
Thu Dec 06, 2018 3:38 pm
Forum: Investing - Help with Personal Investments
Topic: Non-Retirement: VUG vs. VASGX vs. ?
Replies: 10
Views: 621

Re: Non-Retirement: VUG vs. VASGX vs. ?

I noticed that in non-retirement investment accounts many people are picking municipal funds that aren't taxed in their state but the returns are around 1-1.2% which is almost half of other short-term accounts/funds. I live in NY - what would be a fund or advantage of getting a tax-free account but...
by zuma
Wed Dec 05, 2018 2:31 pm
Forum: Investing - Help with Personal Investments
Topic: Non-Retirement: VUG vs. VASGX vs. ?
Replies: 10
Views: 621

Re: Non-Retirement: VUG vs. VASGX vs. ?

Assuming a non-specific timeframe, I would invest the money according to my overall asset allocation plan. Then I'd withdraw money from my taxable account if and when I need it, and then rebalance accordingly (probably in my tax-advantaged accounts). However, it sounds like you want to consider this...
by zuma
Wed Dec 05, 2018 1:53 pm
Forum: Investing - Help with Personal Investments
Topic: Non-Retirement: VUG vs. VASGX vs. ?
Replies: 10
Views: 621

Re: Non-Retirement: VUG vs. VASGX vs. ?

I would recommend keeping all your information in one thread. This question seems very similar to your previous one.
by zuma
Sat Dec 01, 2018 3:25 am
Forum: Investing - Theory, News & General
Topic: The five-fund portfolio
Replies: 12
Views: 1840

Re: The five-fund portfolio

Cash is usually covered by an emergency fund My point is that the EF should be part of the portfolio as a whole. Based on the number of threads asking specifically about that, I think it’d help to explicitly clarify to cash allocation in a more comprehensive five-fund portfolio model. My point is t...
by zuma
Sat Dec 01, 2018 2:51 am
Forum: Investing - Theory, News & General
Topic: The five-fund portfolio
Replies: 12
Views: 1840

Re: The five-fund portfolio

There's nothing wrong with your portfolio, but I don't agree that it's a better baseline starting point for most investors than a standard 3-fund. Cash is usually covered by an emergency fund, and a small allocation to TIPS is not going to make or break you, so I don't think "most portfolios actuall...
by zuma
Thu Nov 29, 2018 7:17 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 412
Views: 47234

Re: U.S. stocks continue to soar!

you're jumping from one concept to another. I claimed that people here say, "I know nothing therefore do xyz," then have the brass to say things like "what drop! lol!" when staring at 15% index movements. that is a behavioral fact and not subject to your interpretation. that behavior is child like ...
by zuma
Wed Nov 28, 2018 5:52 am
Forum: Investing - Theory, News & General
Topic: What is your allocation to U.S. and International?
Replies: 120
Views: 7258

Re: What is your allocation to U.S. and International?

Stocks : Bonds — 60 : 40

US stocks : Ex-US stocks — 80 : 20

US bonds — 100

Some days I think I should switch to Total World (VT) for all my equities. Other days I'm satisfied with my original 20% ex-US allocation. Most of the time I tell myself that it probably doesn't matter much.
by zuma
Tue Nov 27, 2018 12:26 am
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 754
Views: 99114

Re: How much international stock? A suggestion.

Merely saying "(Fill in the blank) said to do X" is an appeal to an authority. You did not discuss their logic at all in recommending a certain percentage be allocated to international, only who said it. This is so pedantic. :-) I think we can assume that Dulocracy made a decision based on the argu...
by zuma
Wed Nov 21, 2018 2:46 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 754
Views: 99114

Re: How much international stock? A suggestion.

vineviz, in your opinion, how much ex-US stock should a US investor hold in order to be sufficiently diversified? Where is the line?
by zuma
Wed Nov 14, 2018 7:05 am
Forum: Investing - Theory, News & General
Topic: Opportunity Cost or Loss.
Replies: 8
Views: 600

Re: Opportunity Cost or Loss.

I don't understand the question. Is there a question?
by zuma
Thu Nov 01, 2018 6:34 am
Forum: Investing - Theory, News & General
Topic: Bonds vs CDs
Replies: 39
Views: 4438

Re: Bonds vs CDs

Welcome. Yes, CDs are fine as an alternative to bonds. This topic has been discussed often. :) https://www.bogleheads.org/forum/viewtopic.php?t=241460 https://www.bogleheads.org/forum/viewtopic.php?t=238034 https://www.bogleheads.org/forum/viewtopic.php?t=259300 https://www.bogleheads.org/forum/view...
by zuma
Sat Oct 27, 2018 2:38 am
Forum: Investing - Help with Personal Investments
Topic: Starting to smell like buying season?
Replies: 72
Views: 10197

Re: Starting to smell like buying season?

amateurnovice wrote:
Fri Oct 26, 2018 3:42 pm
You'll own a mutual fund that has them in it but pretend not to know the symbols? LOL sometimes I really think the Boglehead mentality is a cult.
Yes, of course. I invest in index funds and don't care about individual stock ticker symbols.
by zuma
Sat Oct 06, 2018 6:19 am
Forum: Personal Consumer Issues
Topic: U.S. mailing address/forwarding for expats
Replies: 25
Views: 2279

Re: U.S. mailing address/forwarding for expats

Zuma - Is there any risk California might want to consider you a state resident for local income tax purposes, due to your U.S. mailing address there? I suppose that's a possibility, but I wouldn't worry about it if you're filing as a Mexico resident and can prove that to the CA tax board if they c...
by zuma
Fri Oct 05, 2018 2:29 am
Forum: Personal Consumer Issues
Topic: U.S. mailing address/forwarding for expats
Replies: 25
Views: 2279

Re: U.S. mailing address/forwarding for expats

I've been living in Europe for five years and I've had no problems using Virtual Post Mail for my mail forwarding needs. They provide a California address.
by zuma
Mon Oct 01, 2018 5:09 am
Forum: Investing - Help with Personal Investments
Topic: How much should I keep in cash ?
Replies: 7
Views: 1148

Re: How much should I keep in cash ?

I think it's prudent to keep an emergency fund to cover 3 to 6 months of expenses.

So if your monthly expenses are roughly $2,300, then $7-14k would be a good savings target.

https://www.bogleheads.org/wiki/Emergency_fund
by zuma
Sat Sep 29, 2018 4:28 am
Forum: Investing - Help with Personal Investments
Topic: David Swensen Portfolio Critique.
Replies: 28
Views: 2498

Re: David Swensen Portfolio Critique.

kadibex1 wrote:
Fri Sep 28, 2018 6:29 pm
Do you have any better fund recommendations?
For your TIPS holding, you might want to consider Schwab's ETF which is cheaper at 0.05%.

https://www.etf.com/SCHP
by zuma
Wed Sep 12, 2018 7:49 am
Forum: Investing - Theory, News & General
Topic: How to respond when your index fund drifts?
Replies: 5
Views: 664

Re: How to respond when your fund changes?

For all of the long-time BHs who originally invested in bond index funds like this or TBM back in the day, what were the original government to credit allocations and have you taken any action to get back to the portfolio allocation you originally invested in? I'm not a long-time Boglehead, but I c...
by zuma
Tue Sep 11, 2018 3:11 am
Forum: Investing - Help with Personal Investments
Topic: Where to invest
Replies: 31
Views: 1044

Re: Invest 100k

More info needed.

As suggested in your earlier thread, consider using the recommended format. Also, consolidate all your information in one post to make it easier for others to help you.