Search found 715 matches

by 3funder
Sat Oct 20, 2018 8:05 am
Forum: Investing - Help with Personal Investments
Topic: Education Savings Account
Replies: 6
Views: 516

Re: Education Savings Account

Without question, I recommend 100% VMMXX.
by 3funder
Sat Oct 20, 2018 7:37 am
Forum: Investing - Help with Personal Investments
Topic: Help me understand
Replies: 16
Views: 1636

Re: Help me understand

We look at bonds and see a loss year to date. Don't base investing decisions on short term results. You need to take the long view. Bond funds make money. Take a look at a total return chart for FSITX like http://performance.morningstar.com/fund/performance-return.action?t=FSITX Bonds are higher ri...
by 3funder
Sat Oct 20, 2018 7:35 am
Forum: Personal Finance (Not Investing)
Topic: Where would you go for financial guidance if you win the Megamillions?
Replies: 139
Views: 10939

Re: Where would you go for financial guidance if you win the Megamillions?

1. Don't tell a soul. 2. Refuse the lump sum option; instead, choose the annuity. 3. Consult a fee-only financial advisor. 4. Consult an attorney who deals with estates and taxes. 5. Whatever portion you choose to invest, invest it in low-cost index funds. 6. Donate to charity. 7. As the years pass,...
by 3funder
Sat Oct 20, 2018 7:28 am
Forum: Investing - Theory, News & General
Topic: The End of Indexing?
Replies: 33
Views: 3936

Re: The End of Indexing?

I was wondering of anyone here had read, and has opinions about a new book, called The End of Indexing by Niels Jensen. Because I'm lazy, here's the synopsis from Amazon: "Index-tracking is the flavour of the day - it accounts for around one-third of the total US mutual fund market, and is still gr...
by 3funder
Sat Oct 20, 2018 7:27 am
Forum: Investing - Help with Personal Investments
Topic: New early retiree, looking to start this off correctly
Replies: 4
Views: 1003

Re: New early retiree, looking to start this off correctly

Guys, longtime off and on reader, but first time question. Single, no heirs, 61yo, totally debt free, ===newly retired=== tiny old pension ~20k/yr and fully VG investments, primarily Wellesley at this point, which can easily take care of my lifestyle with 3 or 4% draw from here to my own private et...
by 3funder
Sat Oct 20, 2018 7:24 am
Forum: Investing - Help with Personal Investments
Topic: What if your risk tolerance is lower than what's best for your portfolio?
Replies: 51
Views: 3617

Re: What if your risk tolerance is lower than what's best for your portfolio?

TravelforFun, HEDGEFUNDIE, and SoAnyway...WOW. I can't think of a better wrap-up to this thread of great ideas and insights. SoAnyway, believe it or not, I reread Nisiprius's awesome post a couple weeks ago, when I started thinking again about selling equities. I was getting jittery, but didn't sel...
by 3funder
Fri Oct 19, 2018 12:29 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation heading into retirement
Replies: 8
Views: 1071

Re: Asset Allocation heading into retirement

Sorry, this is just my U.S. equity portion I am asking about. I should have mentioned that. My mistake. I have 40% bonds (BND) and 15% of my equity portion is in international (VXUS). My bond allocation has been age - 13 all the way through, but will stay at 60/40 indefinitely. Very good. Your 33/3...
by 3funder
Fri Oct 19, 2018 12:22 pm
Forum: Investing - Help with Personal Investments
Topic: What if your risk tolerance is lower than what's best for your portfolio?
Replies: 51
Views: 3617

Re: What if your risk tolerance is lower than what's best for your portfolio?

If you need a certain asset allocation to provide sufficient growth to your portfolio and you are not a panic seller, it would be unwise to choose an AA that varies dramatically from the appropriate AA, even if it means you have some trouble sleeping at night. At your age, your AA is pretty conserva...
by 3funder
Sun Oct 14, 2018 7:43 am
Forum: Investing - Help with Personal Investments
Topic: Home Depot Stock
Replies: 16
Views: 1730

Re: Home Depot Stock

Thanks for your input, everyone. If it were me, I'd sell it all immediately if it kept me in the same tax bracket; otherwise, I'd sell gradually with the purpose of eventually unloading my entire position. I will provide my friend with this link for his own edification.
by 3funder
Sat Oct 13, 2018 8:31 am
Forum: Investing - Help with Personal Investments
Topic: Home Depot Stock
Replies: 16
Views: 1730

Re: Home Depot Stock

Bogleheads, I have a friend who invested in Home Depot stock via its employee stock purchase plan back in 1996. These are common shares; he wasn't high up the food chain. As you can imagine, the modest amount he invested has grown quite a bit since then. I'm helping him simplify and improve his inv...
by 3funder
Sat Oct 13, 2018 8:29 am
Forum: Investing - Help with Personal Investments
Topic: Home Depot Stock
Replies: 16
Views: 1730

Re: Home Depot Stock

jhwkr542 wrote:
Sat Oct 13, 2018 7:53 am
How much of a tax hit are we talking? Any chance he'll be able to take out without paying capital gains taxes soon?
My guess? $10,000 tax hit.
by 3funder
Sat Oct 13, 2018 7:37 am
Forum: Investing - Help with Personal Investments
Topic: Which bond holding in Taxable?
Replies: 7
Views: 362

Re: Which bond holding in Taxable?

Hello, fellow Bogleheads. I have a question regarding options for relatively safe funds in taxable. Debating between VWITX (Intermediate term tax-exempt fund) vs VMSXX (Muni MMF) to put in 15k. VWITX has an SEC yield of 2.6% and VMSXX of 1.47%. I am unclear if/how that would change with the fed cha...
by 3funder
Sat Oct 13, 2018 7:35 am
Forum: Investing - Theory, News & General
Topic: Psychological vs. Real Risk
Replies: 21
Views: 1507

Re: Psychological vs. Real Risk

1. I don't think so. Almost every time someone loses big money, they worry a little bit or at least get a little bit uncomfortable. So if they set their AA to the lower of Psych or Real, then they will still feel the desire or wish not to lose money. And there is another side to this. It is not jus...
by 3funder
Sat Oct 13, 2018 7:32 am
Forum: Investing - Help with Personal Investments
Topic: Fidelity 401k and Hello
Replies: 20
Views: 1011

Re: Fidelity 401k and Hello

There are some very good options here for a three-fund portfolio. I'd choose the Vanguard Institutional Index fund (which is an S&P500 index fund) for domestic stock, the Vanguard Total International Stock fund for my international allocation (assuming one was desired) and the Vanguard Total Bond f...
by 3funder
Sat Oct 13, 2018 7:20 am
Forum: Investing - Help with Personal Investments
Topic: Buying opportunity? Invest my emergency fund??
Replies: 9
Views: 1481

Re: Buying opportunity? Invest my emergency fund??

Any money that you have should be invested based on your goal for that money. So money for a house downpayment in 3 years should be invested differently than money for college tuition in 10 years which should be invested differently than money for retirement in 20 years. Which is a long way of sayi...
by 3funder
Sat Oct 13, 2018 7:18 am
Forum: Investing - Help with Personal Investments
Topic: Does Timing Matter? 3 Fund Portfolio
Replies: 39
Views: 2705

Re: Does Timing Matter? 3 Fund Portfolio

Age 31 I was in the process of restructuring my portfolio that I rolled over from my previous employer. My plan was to put 30% in total bond fund, 55% in Total Market Index Fund and 15% in Total International Index. However, the stock market has exploded the last few days so I am hesitant to make a...
by 3funder
Sat Oct 13, 2018 7:12 am
Forum: Investing - Help with Personal Investments
Topic: Home Depot Stock
Replies: 16
Views: 1730

Home Depot Stock

Bogleheads, I have a friend who invested in Home Depot stock via its employee stock purchase plan back in 1996. These are common shares; he wasn't high up the food chain. As you can imagine, the modest amount he invested has grown quite a bit since then. I'm helping him simplify and improve his inve...
by 3funder
Fri Oct 12, 2018 9:02 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Federal Money Market compared to Prime Money Market
Replies: 19
Views: 2083

Re: Vanguard Federal Money Market compared to Prime Money Market

Both are pretty safe. My wife and I have selected Prime.
by 3funder
Fri Oct 12, 2018 8:31 am
Forum: Investing - Help with Personal Investments
Topic: What did you buy today
Replies: 108
Views: 7508

Re: What did you buy today

VTIAX.
by 3funder
Fri Oct 12, 2018 8:08 am
Forum: Investing - Theory, News & General
Topic: Unfortunate Near Real-Time Test of Sequence of Returns Risk v Probability of Retirement Success
Replies: 19
Views: 1746

Re: Unfortunate Near Real-Time Test of Sequence of Returns Risk v Probability of Retirement Success

85% equity allocation in retirement is quite aggressive. With 3.5 million in assets it seems, without further information, not necessary. The recent days of bad markets is a bit scary but not that unusual, when corrections often reach 20% and more with some frequency. I would look to your need to b...
by 3funder
Fri Oct 12, 2018 7:46 am
Forum: Investing - Help with Personal Investments
Topic: Time to sell international funds in 401k
Replies: 10
Views: 1478

Re: Time to sell international funds in 401k

Buy low, sell high. That is how you win at investing. What you propose doing is the exact opposite of that. Unless you have a crystal ball that tells you international will go lower. Where were you going to move the proceeds of the sale? Into something "safe" like a MM that "safely" earns 2% or a h...
by 3funder
Wed Oct 10, 2018 11:43 pm
Forum: Investing - Theory, News & General
Topic: When will you backup the truck on stocks
Replies: 95
Views: 8275

Re: When will you backup the truck on stocks

VTI around 100 would probably cause me to do something irregular, or maybe VXUS around 35. VWO at 32-34 or so would make me a little jittery to buy a lot more too. Today's drop was nothing though. I can easily remember, say, VTI up at 125 and buying it then thinking it was a little frothy. Until VT...
by 3funder
Wed Oct 10, 2018 3:18 pm
Forum: Investing - Help with Personal Investments
Topic: Taking advantage of the current correction
Replies: 28
Views: 3583

Re: Taking advantage of the current correction

I bought more international stock today. I didn't throw all my savings at it or anything, though. Yes, buy if you'd like; just don't pretend it's March 2009 and everything is on sale at a once-in-a-generation price.
by 3funder
Wed Oct 10, 2018 3:16 pm
Forum: Investing - Theory, News & General
Topic: S&P 500 RBD?
Replies: 28
Views: 2063

Re: S&P 500 RBD?

It's a really bad day for stocks. That said, US stocks are still very expensive. I bought international stocks today. Much better value proposition right now.
by 3funder
Mon Oct 08, 2018 2:55 pm
Forum: Investing - Help with Personal Investments
Topic: Investing in total bond funds now?
Replies: 8
Views: 1760

Re: Investing in total bond funds now?

aristotelian wrote:
Mon Oct 08, 2018 2:27 pm
Yields are higher than they have been in 6-7 years. Should be a fine time to buy.

They could go higher still, but then again, stocks could crash and you will be very glad you have some of your portfolio in bonds.
+1.
by 3funder
Sun Oct 07, 2018 3:01 pm
Forum: Investing - Theory, News & General
Topic: 40-60% drawdown in bonds
Replies: 42
Views: 3752

Re: 40-60% drawdown in bonds

I get it, but, in my mind, there are two wise asset classes in which to invest: stocks and bonds. Since I don't wish to bet the entire farm, so to speak, on either one, I invest in both. It is what it is, and it will be what it will be.
by 3funder
Wed Oct 03, 2018 9:58 am
Forum: Investing - Theory, News & General
Topic: Why does Vanguard reccomend 60:40 US:International ratio?
Replies: 52
Views: 7668

Re: Why does Vanguard reccomend 60:40 US:International ratio?

tmcc wrote:
Mon Oct 01, 2018 6:35 pm
International and emerging are total dogs so far this year.
Indeed; it makes me want to invest more money in them.
by 3funder
Wed Oct 03, 2018 9:56 am
Forum: Investing - Theory, News & General
Topic: Why does Vanguard reccomend 60:40 US:International ratio?
Replies: 52
Views: 7668

Re: Why does Vanguard reccomend 60:40 US:International ratio?

I'm 50/50. I used to be 60/40, and I still would be if US stocks weren't currently so expensive, but alas, they are. Both AA and future contributions are 50/50, and if I ever allocate even more to international stocks, it would never be to the tune of more than an additional 10%. 40/60 - 60/40 US/In...
by 3funder
Wed Oct 03, 2018 9:48 am
Forum: Investing - Help with Personal Investments
Topic: Long or medium bonds
Replies: 88
Views: 5520

Re: Long or medium bonds

PFInterest wrote:
Wed Oct 03, 2018 7:45 am
Total bond is the default, so intermediate term.
Short term if you have a known event coming up.
I remember something about not being adequately compensated for longer term bonds.
+1
by 3funder
Tue Oct 02, 2018 9:20 am
Forum: Investing - Help with Personal Investments
Topic: Adding Reat Estate and International to my portfolio
Replies: 13
Views: 1383

Re: Adding Reat Estate and International to my portfolio

vineviz wrote:
Mon Oct 01, 2018 12:14 am
My suggestion is to NOT treat REITS as a distinct asset class: they are merely stocks from one industry.

You should increase your international allocation, which I’d do by adding exposure to emerging markets. Vanguard has a great. ETF in VWO.
+1
by 3funder
Tue Oct 02, 2018 8:08 am
Forum: Investing - Help with Personal Investments
Topic: VASGX + VSTMX Hybrid?
Replies: 9
Views: 574

Re: VASGX + VSTMX Hybrid?

asif408 wrote:
Mon Oct 01, 2018 2:56 pm
Probably overcomplicating, stick with VASGX and call it a day, or just make your own 3 fund portfolio.
+1
by 3funder
Tue Oct 02, 2018 8:02 am
Forum: Investing - Theory, News & General
Topic: Why TIPS only for unexpected inflation?
Replies: 27
Views: 2557

Re: Why tips only for unexpected inflation?

For what it's worth (and it may be worth nothing), I don't think inflation is going much higher from here for a good while. Over the long-term, a reasonable mix of stocks and bonds beats inflation handily.
by 3funder
Mon Oct 01, 2018 8:25 pm
Forum: Investing - Help with Personal Investments
Topic: My biggest mistake - market timing
Replies: 62
Views: 8967

Re: My biggest mistake - market timing

OP, What stage of life are you and what age? I am wondering what compelled your flight from risk? Especially if < 50 yrs old. The right answer isabouve my response. Put most in now and DCAin the rest. I am in mid 30's and DH is early 40s. My risk tolerance is relatively high. Due to the pressure fr...
by 3funder
Sun Sep 30, 2018 10:53 am
Forum: Investing - Help with Personal Investments
Topic: Early Retirement Portfolio Suggestions
Replies: 7
Views: 852

Re: Early Retirement Portfolio Suggestions

I'm 34; however, I think I'd go with something like 1/3 Total US Stock Index, 1/3 Total International Stock Index, 1/3 Total US Bond Index and call it a day. Maybe glide down to 1/4 Total US Stock Index, 1/4 Total International Stock Index, 1/2 Total US Bond Index by the time I'm 70. As blasphemous ...
by 3funder
Sat Sep 29, 2018 12:43 pm
Forum: Investing - Help with Personal Investments
Topic: Warren Buffet Portfolio Critique
Replies: 56
Views: 4520

Re: Warren Buffet Portfolio Critique

If you're young, it's a fine portfolio. It's simple and cheap. One could do a whole lot worse than this.
by 3funder
Tue Sep 25, 2018 6:28 am
Forum: Investing - Theory, News & General
Topic: Why do we expect TSM to keep growing?
Replies: 77
Views: 8744

Re: Why do we expect TSM to keep growing?

TSM invests in real companies with real earnings. The leadership of these companies will continue to deliver goods and services in new and innovative ways, increasing the value of the companies. If you don't believe that business case, I don't know what to buy. Government bonds won't work because t...
by 3funder
Tue Sep 25, 2018 6:16 am
Forum: Investing - Help with Personal Investments
Topic: Emotional Investor - I'm a mess and need help!
Replies: 83
Views: 6364

Re: Two suggestions

Taylor Larimore wrote:
Sun Sep 23, 2018 10:19 pm
sruliz:

The suggestion to use low-cost Vanguard Personal Advisor Service free of conflict-of-interest was a good one.

It may help to read my "Simplicity" link below.

Best wishes.
Taylor
+1
by 3funder
Tue Sep 25, 2018 6:07 am
Forum: Investing - Help with Personal Investments
Topic: Emotional Investor - I'm a mess and need help!
Replies: 83
Views: 6364

Re: Emotional Investor - I'm a mess and need help!

KlangFool wrote:
Sun Sep 23, 2018 12:48 pm
OP,

Put all your money into an all-in-one fund like Wellington fund or Vanguard LifeStrategy Moderate Growth Fund.

KlangFool
+1.
by 3funder
Mon Sep 24, 2018 4:08 pm
Forum: Investing - Theory, News & General
Topic: My CAPE10 based IPS
Replies: 103
Views: 6148

Re: My CAPE10 based IPS

Where is the evidence that CAPE10 is predictive of short-medium run stock prices? I suppose the worst that could happen is you are underinvested in equities during a long bull run. I definitely think CAPE 10 can be useful for getting a general sense of intermediate-term stock returns. Of course, an...
by 3funder
Mon Sep 24, 2018 2:50 pm
Forum: Investing - Theory, News & General
Topic: My CAPE10 based IPS
Replies: 103
Views: 6148

Re: My CAPE10 based IPS

Where is the evidence that CAPE10 is predictive of short-medium run stock prices? I suppose the worst that could happen is you are underinvested in equities during a long bull run. I definitely think CAPE 10 can be useful for getting a general sense of intermediate-term stock returns. Of course, an...
by 3funder
Mon Sep 24, 2018 2:10 pm
Forum: Investing - Help with Personal Investments
Topic: Personal Capital Target Allocation Tool - should I follow it?
Replies: 15
Views: 1172

Re: Personal Capital Target Allocation Tool - should I follow it?

No-one would pay Personal Capital .89% of their money annually to manage their funds in a three-fund portfolio. So they have to suggest something different to get people's attention like 10.5% in the mysterious "alternatives" box and fundamental weighting for domestic S%P sectors versus market cap ...
by 3funder
Sun Sep 23, 2018 8:50 am
Forum: Investing - Theory, News & General
Topic: Corporate debt bubble?
Replies: 20
Views: 2546

Re: Corporate debt bubble?

UpperNwGuy wrote:
Sun Sep 23, 2018 7:52 am
3funder wrote:
Sun Sep 23, 2018 7:28 am
Investment-grade corporate debt accounts for 30% of my bond allocation; I sleep like a baby.
Sounds to me like you own Total Bond. Me too.
Indeed.
by 3funder
Sun Sep 23, 2018 7:49 am
Forum: Personal Finance (Not Investing)
Topic: 0 - 0.99% APR on auto... would you finance?
Replies: 35
Views: 3740

Re: 0 - 0.99% APR on auto... would you finance?

Purchase outright (assuming you don't have to dip into your emergency fund).
by 3funder
Sun Sep 23, 2018 7:28 am
Forum: Investing - Theory, News & General
Topic: Corporate debt bubble?
Replies: 20
Views: 2546

Re: Corporate debt bubble?

Investment-grade corporate debt accounts for 30% of my bond allocation; I sleep like a baby.
by 3funder
Sun Sep 23, 2018 7:24 am
Forum: Investing - Help with Personal Investments
Topic: Should we pay off $90K mortgage with idle cash or not?
Replies: 46
Views: 5805

Re: Should we pay off $90K mortgage with idle cash or not?

bpersm wrote:
Sun Sep 23, 2018 5:42 am
It depends on the spread between the interest rate you are paying on the loan and the interest rate you are receiving on the money you are loaning out. If you are borrowing at a much higher rate than you are lending it makes little sense to keep the mortgage.
+1
by 3funder
Wed Sep 19, 2018 7:43 am
Forum: Investing - Theory, News & General
Topic: Robert Shiller interview: "Market could get a lot higher"
Replies: 28
Views: 4638

Re: Robert Shiller interview: "Market could get a lot higher"

People give Shiller quite a hard time, but I've never interpreted any of his comments as specific predictions or market-timing recommendations. He's not wrong; quite literally, the higher the market is at any given point in time, the lower the forward returns will be for a fixed period of time (end ...
by 3funder
Mon Sep 17, 2018 3:01 pm
Forum: Investing - Help with Personal Investments
Topic: Can I have an oversized emergency savings account?
Replies: 19
Views: 2211

Re: Can I have an oversized emergency savings account?

I vote for Money Money Account or Money Market Fund. Life happens. It's nice to have greenbacks at the ready.
by 3funder
Sat Sep 15, 2018 12:24 pm
Forum: Investing - Help with Personal Investments
Topic: How real is cyber risk?
Replies: 176
Views: 10006

Re: How real is cyber risk?

VictoriaF wrote:
Fri Sep 14, 2018 6:06 pm
3funder wrote:
Fri Sep 14, 2018 5:24 pm
I don't lose sleep over it.
Losing sleep is not a recommended mitigation for cyber risk. 2FA and other methods recommended above are.

Victoria
I only use 2FA when required. That said, I agree that 2FA is a reasonable mitigation tool.