Search found 472 matches

by zuma
Tue Apr 02, 2019 3:14 am
Forum: Investing - Theory, News & General
Topic: Which Vanguard Dividend Fund to pick?
Replies: 47
Views: 3465

Re: Example of Diworsification

Bogleheads: Diworsification: Five years ago the financial industry was urging us to add a Small Cap Value fund to Total Stock Market Index Fund. Let's look at the results: According to Morningstar, Total Stock Market had a 5-year annualized return of 10.57%. Meanwhile, Small Cap Value stocks had a ...
by zuma
Sat Mar 30, 2019 1:50 am
Forum: Investing - Theory, News & General
Topic: Bogle: problem with index funds
Replies: 3
Views: 1113

Re: Boggle: problem with index funds

This has been discussed previously.

Jack Bogle commented: viewtopic.php?f=10&t=265063&p=4242279#p4242279
by zuma
Wed Mar 27, 2019 4:40 am
Forum: Personal Consumer Issues
Topic: Anyone disenchanted with retirement?
Replies: 217
Views: 32267

Re: Anyone disenchanted with retirement?

The traditional notion of 'retirement' doesn't resonate with me at all. Being financially independent, on the other hand, absolutely does. Being financially independent means that I can spend my time doing what I want. This might include having a job.
by zuma
Wed Mar 27, 2019 4:04 am
Forum: Investing - Theory, News & General
Topic: I hate bonds
Replies: 116
Views: 13114

Re: I hate bonds

The beauty of the three-fund portfolio is that it's cheap, diversified, and good enough, which means I don't have to agonize over decisions like which bond fund to buy.
by zuma
Tue Mar 26, 2019 6:11 am
Forum: Personal Consumer Issues
Topic: International bank transfers
Replies: 4
Views: 339

Re: International bank transfers

legio XX wrote:
Tue Mar 26, 2019 6:04 am
I have to do a transfer to their bank account using the IBAN.
I use TransferWise for exactly this.

https://transferwise.com/
by zuma
Thu Mar 21, 2019 4:04 am
Forum: Personal Finance (Not Investing)
Topic: BofA is improving their autopay
Replies: 15
Views: 1424

Re: BofA is improving their autopay

The way I understand it, you can set up e-bills and/or you can create a recurring payment. It seems like it's possible to have both of these enabled. I agree that it's confusing (and I hope they improve it), but it's definitely possible to pay the statement balance automatically if you've set up e-b...
by zuma
Wed Mar 20, 2019 11:14 am
Forum: Personal Investments
Topic: How to realistically FIRE?
Replies: 310
Views: 21941

Re: How to realistically FIRE?

The definition of "middle class", "upper-middle class", etc. has to be relative to the local economy. Why can't it be relative to the US as a whole? Why can't it be relative to the world as a whole? It doesn't make sense because we don't live in the world as a whole, or the US as a whole. We live i...
by zuma
Wed Mar 20, 2019 10:59 am
Forum: Personal Investments
Topic: How to realistically FIRE?
Replies: 310
Views: 21941

Re: How to realistically FIRE?

visualguy wrote:
Wed Mar 20, 2019 10:50 am
The definition of "middle class", "upper-middle class", etc. has to be relative to the local economy.
Why can't it be relative to the US as a whole?
by zuma
Sun Mar 10, 2019 4:53 am
Forum: Personal Investments
Topic: Thoughts on VNQ? [Vanguard Real Estate ETF]
Replies: 39
Views: 3932

Re: Thoughts on VNQ?

I held VNQ a couple years ago and it was 5% of my portfolio overall.

I decided that 5% wasn't enough to make a difference, so I sold it.
by zuma
Thu Mar 07, 2019 4:25 am
Forum: Personal Investments
Topic: Vanguard platform is a mess ... UX-wise [User eXperience]
Replies: 69
Views: 5759

Re: Vanguard platform is a mess ... UX-wise [User eXperience]

... As for the "conservativeness" of the Vanguard platform's UX, I think that it is partially or significantly because they want people who have not been exposed to modern / fancy IT platforms (a large percentage of their users, I assume, and arguably with highest net worth, compared to the rest) f...
by zuma
Tue Mar 05, 2019 12:32 pm
Forum: Personal Investments
Topic: Bonds in taxable accounts?
Replies: 6
Views: 757

Re: Bonds in taxable accounts?

So in doing some reading in the Boglehead Wiki and other sources in regards to tax efficiency for taxable accounts, I came across this statement (from another site)... ...A total bond fund is less than optimal in a taxable brokerage account. Bond funds typically spin off more dividends than stock f...
by zuma
Tue Mar 05, 2019 7:23 am
Forum: Investing - Theory, News & General
Topic: Why does Vanguard use a 40% allocation to International in their Balanced Funds?
Replies: 60
Views: 6651

Re: Why does Vanguard use a 40% allocation to International in their Balanced Funds?

If a US investor puts a quarter of their equities abroad, you’ll probably not have a high level of regret. Putting 0 or full market cap abroad both give you a good shot at being pretty wrong and regretfuI. I like to avoid extremes, so that factors heavily for me. To each their own, of course. Thank...
by zuma
Mon Mar 04, 2019 8:05 am
Forum: Investing - Theory, News & General
Topic: Why does Vanguard use a 40% allocation to International in their Balanced Funds?
Replies: 60
Views: 6651

Re: Why does Vanguard use a 40% allocation to International in their Balanced Funds?

Gufomel wrote:
Mon Mar 04, 2019 7:56 am
I’ve noticed that Vanguard’s Balanced Funds (target date and target risk) all have 40% of their stock allocation in International. Does anyone know the research behind this decision?
https://www.vanguard.com/pdf/ISGGEB.pdf
by zuma
Mon Mar 04, 2019 5:17 am
Forum: Personal Investments
Topic: Question about investing in bonds
Replies: 29
Views: 3056

Re: Question about investing in bonds

"Age in bonds" is a conservative rule of thumb.

"Age minus 20 in bonds" is a less conservative rule of thumb.

Neither is meant to be a replacement for assessing your own situation and making an informed decision.
by zuma
Fri Mar 01, 2019 1:34 pm
Forum: Investing - Theory, News & General
Topic: Vanguard research paper on global diversification
Replies: 21
Views: 2073

Re: Vanguard research paper on global diversification

The vast, deep expertise of the Vanguard Group is also moving towards including a much larger percentage of international bonds. In fact, Vanguard is regularly offering new ex-United States bond funds and ETFs. It appears to be much easier to dismiss this aspect of global diversification, for many,...
by zuma
Fri Mar 01, 2019 8:22 am
Forum: Personal Investments
Topic: Total Bond ETF or Mutual Fund in Taxable?
Replies: 8
Views: 885

Re: Total Bond ETF or Mutual Fund in Taxable?

Does this wiki page help you understand? https://www.bogleheads.org/wiki/ETFs_vs_mutual_funds Or these threads? https://www.bogleheads.org/forum/viewtopic.php?t=240097 https://www.bogleheads.org/forum/viewtopic.php?t=113036 https://www.bogleheads.org/forum/viewtopic.php?t=226898 https://www.boglehea...
by zuma
Wed Feb 27, 2019 2:56 pm
Forum: Personal Investments
Topic: Vanguard platform is a mess ... UX-wise [User eXperience]
Replies: 69
Views: 5759

Re: Vanguard platform is a mess ... UX-wise

Or possibly have the money in your account when you make a purchase. Good idea. I totally disagree. Vanguard let's you purchase now at today's price, and pull the funds from your linked bank account, and you don't even have to worry about transit times. It just works, and lots of people here do it....
by zuma
Wed Feb 27, 2019 12:26 pm
Forum: Investing - Theory, News & General
Topic: Vanguard research paper on global diversification
Replies: 21
Views: 2073

Re: Vanguard research paper on global diversification

https://www.vanguard.com/pdf/ISGGEB.pdf Global equity investing: The benefits of diversification and sizing your allocation Vanguard Research February 2019 ■ Regardless of where they live, investors have a significant opportunity to diversify their equity portfolios by investing outside their home m...
by zuma
Wed Feb 27, 2019 12:22 pm
Forum: Investing - Theory, News & General
Topic: "You're More Internationally Diversified Than You (Probably) Realize"
Replies: 139
Views: 9882

Re: "You're More Internationally Diversified Than You (Probably) Realize"

Vanguard disagrees. From their Feb 2019 paper [ Global equity investing: The benefits of diversification and sizing your allocation ]: Can multinational corporations provide enough exposure? One common question about exposure to stocks outside one’s home market is whether domestic multinational comp...
by zuma
Tue Feb 26, 2019 2:10 am
Forum: Personal Investments
Topic: Vanguard platform is a mess ... UX-wise [User eXperience]
Replies: 69
Views: 5759

Re: Vanguard platform is a mess ... UX-wise

You're right. It's bad.
by zuma
Thu Feb 21, 2019 3:42 am
Forum: Personal Consumer Issues
Topic: Do others dislike Vanguard's new website as much as me?
Replies: 205
Views: 12085

Re: Do others dislike Vanguard's new website as much as me?

The website isn't very good. It's also not very bad, and it's far from the worst I've seen. Basically, I have no strong opinions about it.

Re: the grammar debate, language is fluid and arguing over what's "correct" when the meaning of the title was always perfectly clear seems like a waste of time.
by zuma
Thu Feb 21, 2019 3:22 am
Forum: Personal Investments
Topic: Is VSBSX too risky for 6 months?
Replies: 41
Views: 4267

Re: Is VSBSX too risky for 6 months?

Ok, upside (5500) vs unlikely but possible downside (25000) established. And why do you need the principal? To buy a house. Seems like an unnecessary risk. VUSXX is currently earning 2.34%. VSBSX is currently earning 2.50% with significantly more downside risk. Why not just buy a 6 month T-bill fro...
by zuma
Mon Feb 18, 2019 6:49 am
Forum: Investing - Theory, News & General
Topic: Two-Fund & Three-Fund Not Diversified Enough for Large Investments?
Replies: 26
Views: 3261

Re: Two-Fund & Three-Fund Not Diversified Enough for Large Investments?

I agree, in a way. At 20million USD it is no longer enough to cover all global stocks and global bonds with one account in one country. As someone said on AA and safe withdrawal rat: Even if you had 1 billion in bonds, in the Weimar republic your wealth would have gone to zero. At 20mill USD it is ...
by zuma
Sat Feb 16, 2019 4:28 am
Forum: Personal Investments
Topic: Time to pull the plug?
Replies: 15
Views: 2938

Re: Time to pull the plug?

Five-Oh wrote:
Sat Feb 16, 2019 4:22 am
If you didn't have the fund today, would you purchase it?

There is your answer.
I agree and would add that the performance of your entire portfolio is what matters, not the performance of individual funds in isolation. Especially when we're talking about 3% overall.
by zuma
Sat Feb 16, 2019 4:00 am
Forum: Personal Investments
Topic: Theory: NOW is the Best Time for Total World Stock
Replies: 139
Views: 16051

Re: Theory: NOW is the Best Time for Total World Stock

Sure, but if I have 2 million, I'll have an extra $72,000 at the end of 10 years. That's a ton of money. Seems pretty good to me. It's about one third of one percent extra per year, and that's assuming big out-performance by ex-US over that decade (80% vs 50%). Seems marginal to me, and not worth t...
by zuma
Fri Feb 15, 2019 3:48 pm
Forum: Personal Investments
Topic: vanguard managed payout fund
Replies: 19
Views: 2506

Re: vanguard managed payout fund

Thanks zuma. I bought Michael McClungh's book ( Living Off Your Money: The Modern Mechanics of Investing During Retirement with Stock and Bonds ) to try and get a better idea of withdrawal strategies. But it wound up confusing me even more! Let me also ask you a question: are you currently withdraw...
by zuma
Fri Feb 15, 2019 3:23 pm
Forum: Personal Investments
Topic: vanguard managed payout fund
Replies: 19
Views: 2506

Re: vanguard managed payout fund

If my entire $100k was invested in cash this would be a simple transfer. But since I own mutual funds it's complicated. Presumably I don't reinvest distributions, so I have some cash there. Let's say $100 a month. Then I need to sell $233 of shares. Which funds? I guess I do it in a way that keeps ...
by zuma
Fri Feb 15, 2019 12:52 pm
Forum: Personal Investments
Topic: vanguard managed payout fund
Replies: 19
Views: 2506

Re: vanguard managed payout fund

Like the OP, I've occasionally looked at the managed payout fund and been interested in it. Despite all my research on investing and retirement, I still haven't figured out a good way to turn my assets into a steady investment stream. The easiest method (stop reinvesting distributions) comes up wit...
by zuma
Thu Feb 14, 2019 8:25 am
Forum: Investing - Theory, News & General
Topic: Two-Fund & Three-Fund Not Diversified Enough for Large Investments?
Replies: 26
Views: 3261

Re: Two-Fund & Three-Fund Not Diversified Enough for Large Investments?

Frank2012 wrote:
Thu Feb 14, 2019 8:15 am
I'm wondering if the Two and Three Fund portfolios are diversified enough when investing a large sum of money.
The short answer is yes, the fundamentals are the same with $1m or $20m. But with a larger portfolio I'd be extra careful with tax management and estate planning.
by zuma
Thu Feb 14, 2019 4:06 am
Forum: Personal Investments
Topic: Opening MMA at Vanguard
Replies: 30
Views: 2473

Re: Opening MMA at Vanguard

It looks like you’re confused about how Vanguard works. You only create a single Vanguard account in which you can invest in as many funds as you want, including VMMXX. I don't think the OP is confused. You can open multiple investment accounts (such as a Roth IRA or an individual brokerage account...
by zuma
Thu Feb 07, 2019 9:04 am
Forum: Personal Consumer Issues
Topic: Best app for foreign money transfers?
Replies: 7
Views: 582

Re: Best app for foreign money transfers?

I use Transferwise for USD to EUR transfers. No complaints. They have been reliable and fast, and they have iOS/Android apps.
by zuma
Wed Feb 06, 2019 3:13 am
Forum: Forum Issues and Administration
Topic: "Subscribe Topic" toggle
Replies: 2
Views: 376

Re: "Subscribe Topic" toggle

The "checkbox" is just an icon.

I agree that the unchecked icon should probably be visible when you aren't subscribed (and vice versa).

However, this is a phpBB design issue and probably won't get changed.
by zuma
Sat Feb 02, 2019 4:47 am
Forum: Investing - Theory, News & General
Topic: Small-Cap Value Funds: Then And Now
Replies: 29
Views: 4017

Re: Small-Cap Value Funds: Then And Now

What does the performance of the past 5 years have to do with asset allocation 'stay the course' decisions? Answer: absolutely NOTHING. One can make a perfectly reasonable argument to stick to total-market. One can make an equally reasonable argument to use a Small-Cap-Value tilt in their portfolio...
by zuma
Thu Jan 31, 2019 8:33 am
Forum: Personal Consumer Issues
Topic: Please share some lifestyle creep you regret.
Replies: 130
Views: 11142

Re: Please share some lifestyle creep you regret.

mega317 wrote:
Wed Jan 30, 2019 11:58 pm
livesoft wrote:
Wed Jan 30, 2019 3:17 pm
I am not adverse to eating strawberries
Sorry I can't resist linking here
viewtopic.php?t=236970
Amazing. Thank you.
by zuma
Mon Jan 21, 2019 4:06 am
Forum: Personal Investments
Topic: Stay the course is hard
Replies: 74
Views: 8007

Re: Stay the course is hard

I think I want to ask, what gives you a confidence to purchase a declining asset class? In the short term, stocks go up and down. Market downturns are normal events and shouldn't be feared if you have an AA that matches your need, ability, and willingness to take risk. Over long periods, stocks ten...
by zuma
Sat Dec 29, 2018 4:32 pm
Forum: US Chapters
Topic: My favorite Boglehead posters
Replies: 142
Views: 8880

Re: My favorite Boglehead posters

grabiner
Valuethinker
dbr
Nisiprius

(But really, I appreciate everyone here who contributes their knowledge and time.)
by zuma
Sat Dec 29, 2018 5:29 am
Forum: Investing - Theory, News & General
Topic: Annuities objectively considered
Replies: 111
Views: 7772

Re: Annuities objectively considered

...In reading this forum as well as investment advice published by various "experts," it is rare that I see an objective evaluation of annuities as a component of a portfolio. I suspect that a major reason is that most annuities are "insurance products" rather than "securities," and as such are ina...
by zuma
Fri Dec 28, 2018 11:49 am
Forum: Investing - Theory, News & General
Topic: [Vanguard Founder Jack Bogle Says It’s Time to Play It Safe]
Replies: 153
Views: 14160

Re: Vanguard Founder Jack Bogle Says It’s Time to market time

For the two of you who don't have a subscription to Barron's, just search the article title in Bing (Bing it?) and the search results bypass the paywall. Thanks, this worked for me. This link from Marketwatch works for me: https://www.barrons.com/articles/vanguard-founder-jack-bogle-on-the-stock-ma...
by zuma
Fri Dec 28, 2018 9:12 am
Forum: Personal Consumer Issues
Topic: Shoes to wear with jeans to the office?
Replies: 87
Views: 5876

Re: Shoes to wear with jeans to the office?

Hard to go wrong with a nice pair of Chelsea boots.
by zuma
Fri Dec 28, 2018 5:14 am
Forum: Personal Investments
Topic: Bear Market portfolios
Replies: 15
Views: 1889

Re: Bear Market portfolios

I'm a 100% disabled Army veteran. I'm going to do a VA home loan. My income will be enough. So I'm investing just for fun. :) You might want to edit your original post (click the pencil icon) to make this more clear. In the original post, you wrote that your goal is to "buy a house in 4-5 years". T...
by zuma
Thu Dec 27, 2018 9:30 am
Forum: Investing - Theory, News & General
Topic: What is really going on?
Replies: 39
Views: 4072

Re: What is really going on?

balbrec2 wrote:
Thu Dec 27, 2018 9:22 am
It doesn't really matter why things are the way they are as long as you
have a sound plan for dealing with it
One can be intellectually curious while also admitting that it doesn't matter.
by zuma
Thu Dec 27, 2018 6:02 am
Forum: Personal Investments
Topic: Where to park "House Purchase" savings?
Replies: 8
Views: 1384

Re: Where to park "House Purchase" savings?

Given a 5-10 year timeframe, I wouldn't use a money market account.

If it were me, I'd consider either Vanguard LifeStrategy Income (VASIX) which is 20% stocks, or a bond fund such as VBILX (Intermediate Term) or VBTLX (Total Bond).
by zuma
Thu Dec 27, 2018 5:29 am
Forum: Investing - Theory, News & General
Topic: Why call them "losses" when you still own the shares?
Replies: 103
Views: 5023

Re: Why call them "losses" when you still own the shares?

I've even compared this to home price fluctuation --- your home went, in one year, from $500k in "value" down to $300k the next year. But you still own it. The loss is when you sell at $300k. Mincing words perhaps but I think this misconception is more important to weaker hands than whether they ha...
by zuma
Mon Dec 24, 2018 5:39 am
Forum: Personal Investments
Topic: Savings and AA [Asset Allocation]
Replies: 6
Views: 644

Re: Savings and AA

You'll get a variety of answers to this question. There is no one "right" way to do it and ultimately your asset allocation is what it is, regardless of how you categorize it mentally. I keep a percentage of my fixed income allocation in a money market account. I consider it part of my overall AA an...
by zuma
Sun Dec 23, 2018 6:24 am
Forum: Personal Consumer Issues
Topic: Scissor recommendation
Replies: 11
Views: 1374

Re: Scissor recommendation

by zuma
Thu Dec 20, 2018 2:12 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 731
Views: 77542

Re: Fidelity as a one stop shop

b0B wrote:
Wed Dec 19, 2018 11:03 pm
There's absolutely no reason to want banking and investment in the same place. I find it interesting that people are willing to endure a significant financial cost for the illusion of simplification.
What "significant" cost are you talking about in the OP's case? Maybe I missed it.
by zuma
Wed Dec 19, 2018 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Is it time to increase the cash Emergency Fund?
Replies: 51
Views: 3672

Re: Is it time to increase the cash Emergency Fund?

I think people with considerable securities should not have an emergency fund. Old money has a family office to handle any and all situations. Only little people have "emergencies". :annoyed A "considerable" portfolio is already an emergency fund. You don't need a separate cash bucket. I think that...
by zuma
Wed Dec 19, 2018 4:27 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe Podcast On Reducing Risk Of Black Swans
Replies: 4
Views: 959

Re: Larry Swedroe Podcast On Reducing Risk Of Black Swans

It's a good presentation. Thanks for posting. I'm a total market investor and I'm still interested in learning about factor-based diversification. As much as the theory interests me, however, I'm not convinced that I'd be able to stick to the strategy through years of severe tracking error. So at th...
by zuma
Tue Dec 18, 2018 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: Mr. Money Mustache, SWR, and equity allocation
Replies: 524
Views: 40479

Re: Mr. Money Mustache, SWR, and equity allocation

Try a Monte Carlo simulation.

For a portfolio of $800k, 100% stocks, with a 5% withdrawal rate, Vanguard's nest egg calculator says:
Probability that savings will last 50 years: 68%
https://firecalc.com/ is another one to try.