Search found 158 matches

by 272 Sheep
Tue May 05, 2020 8:54 am
Forum: Investing - Theory, News & General
Topic: What if the market is 100% passive?
Replies: 27
Views: 2439

Re: What if the market is 100% passive?

What % of the market needs to be passive for it to "stop working"? Just to clarify, it's not the percentage of passive market assets that matters for price discovery, it's the percent of active trading — and what's crucial is the difference in turnover ratios between active and passively assets. To illustrate this point, the chart below assumes there are two categories of assets, active and passive, and the turnover ratio is 100% annually for active assets and 10% annually for passive assets (both conservative assumptions). https://i.imgur.com/DIRYn0z.jpg NOTE: Assumes active turnover is 100% annually and passive is 10%. Chart adapted from S&P-Dow Jones . Under these assumptions, if half of the market is indexed (in red above...
by 272 Sheep
Mon May 04, 2020 9:56 pm
Forum: Investing - Theory, News & General
Topic: What if the market is 100% passive?
Replies: 27
Views: 2439

Re: What if the market is 100% passive?

Aren't Institutions and individual investors already actively trading passive ETFs?
Some at very high rates? I think many people are always trying to figure out ways
to beat the market and will use passive to do it, if they have to. I don't think you
have to worry about the lack of people to do the price discovery.
by 272 Sheep
Mon Apr 20, 2020 10:21 pm
Forum: Investing - Theory, News & General
Topic: A downside to target retirement funds?
Replies: 47
Views: 5814

Re: A downside to target retirement funds?

Thanks for the informed feedback. All I could come up with is a description (no ticker) from 12/31/2007 statement "Life Cycle 2020 Fund (PDF file)**" Confident it was Barkley Global with ER = $0.38/100. Its been awhile since having the fund as I took the golden handshake and rolled over into an IRA in Nov. 2008. Most likely the fund was managed or advised by "Barclays Global Investors", which as purchased by BlackRock in 2009. This is how BlackRock acquired their iShares ETF business, since that line of products was originated by Barclays. For sure, it was Barkley Global Advisors. The company I worked for entered some kind of branding arrangement. I believe and best guess is the 2020 fund I owned is one in the same as t...
by 272 Sheep
Mon Apr 20, 2020 11:54 am
Forum: Investing - Theory, News & General
Topic: A downside to target retirement funds?
Replies: 47
Views: 5814

Re: A downside to target retirement funds?

One of the lessons I learned from owning a Barkley Global Target 2020 fund 55/45 in my 401k was only so-so performance in a crisis. At the end of 2008 it had a 38% loss, much higher than I expected. I called their office in San Francisco to ask how often they rebalanced the fund. They said monthly. Now, this not a problem under normal conditions because the fund uses new contribution money to rebalance with. The problem happens when the new contribution money dries up, especially in a panic, like in 2008. Some significant amount of people stopped their automatic contributions and sold their funds. Thus, the fund was forced to sell existing appreciated shares within the fund to meet redemptions. This somewhat accelerated the loss of what it...
by 272 Sheep
Sun Apr 19, 2020 10:52 pm
Forum: Investing - Theory, News & General
Topic: A downside to target retirement funds?
Replies: 47
Views: 5814

Re: A downside to target retirement funds?

One of the lessons I learned from owning a Barkley Global Target 2020 fund 55/45 in my 401k was only so-so performance in a crisis. At the end of 2008 it had a 38% loss, much higher than I expected. I called their office in San Francisco to ask how often they rebalanced the fund. They said monthly. Now, this not a problem under normal conditions because the fund uses new contribution money to rebalance with. The problem happens when the new contribution money dries up, especially in a panic, like in 2008. Some significant amount of people stopped their automatic contributions and sold their funds. Thus, the fund was forced to sell existing appreciated shares within the fund to meet redemptions. This somewhat accelerated the loss of what it ...
by 272 Sheep
Sun Jan 12, 2020 8:56 pm
Forum: Personal Investments
Topic: Early retirement without taxable assets?
Replies: 14
Views: 2367

Re: Early retirement without taxable assets?

Thank you for the replies! I have been so focused on the accumulation phase and retirement is just so far away that I really had never paid much attention to all of the different ways for early access to tax-sheltered funds. I guess I can put this recent taxable concern to bed. There are good options! I don''t disagree with the advice offered, but that doesn't mean OP's desire to have assets other than 401(k)/IRA is misguided. There are lots of reasons to have significant assets in taxable accounts. You don't want to break into a 401(k) to come up with a down payment for a home, for example. If that concern doesn't happen to be applicable in OP's case, some other hypothetical does apply or will apply. So as it becomes feasible, I'd encoura...
by 272 Sheep
Thu Nov 28, 2019 12:18 pm
Forum: Personal Investments
Topic: Vanguard vs. Fidelity
Replies: 62
Views: 7140

Re: Vanguard vs. Fidelity

I have accounts at both Vanguard and Fidelity and am thinking of consolidating into just one. Which of the two would you recommend? Thanks Dennis Welcome to the Bogleheads! For us, moving to Vanguard was the best decision we ever made. Vanguard is client owned. That is, the individual funds own Vanguard, and by extension, the fund shareholders own the funds. I agree. Effectively, Vanguard and Fidelity may appear to be about equal but they are significantly different. One is a mutually owned company and the other is privately owned. So why should that make any difference to you? Perhaps if you are just investing in Index Funds it doesn't matter. But potential conflict of interest, might matter if an investment company's interests do not ali...
by 272 Sheep
Sat Jun 08, 2019 10:29 pm
Forum: Investing - Theory, News & General
Topic: Are market downturns & crashes really driven by fear?
Replies: 23
Views: 2327

Re: Are market downturns & crashes really driven by fear?

Its easy to be brave when the sun is shining. But when after losing a large portion of your money that you worked hard for,
will you stay brave?
by 272 Sheep
Mon May 27, 2019 1:18 pm
Forum: Investing - Theory, News & General
Topic: Actual Experience as true measure of risk tolerance
Replies: 83
Views: 9086

Re: Actual Experience as true measure of risk tolerance

Training and education can trump experience in stressful stiuations. If you educate yourself about market history, you will be prepared to psychologically weather a bear market . Police and fire departments train their first responders for all sorts of crisis situations. These first responders almost always perform well in the face of their first crisis. You can find other professions where people are faced with life and death decisions and these professions use various types of training to enable people to perform well under stress the first time they encounter that stress. Of course, there are cops, firemen and others who, despite their training, fail at the moment of truth. You may not be able to know for sure that you will be able to w...
by 272 Sheep
Sun May 26, 2019 6:46 pm
Forum: Investing - Theory, News & General
Topic: Vanguard - Luck or Skill?
Replies: 30
Views: 4808

Re: Vanguard - Luck or Skill?

This so called skill came back to bite Vanguard hard in the you know where when Total Bond Index lagged it's index by 2% in one year. Anyone interested can check the back performance for that fund, and a quick search of the archives on orignal forum will show related threads. The year was 2002, here is the data: VBMFX: 8.26% Index: 10.25% VBMFX lagged the index by 2% because of the "skill" employed by Vanguard. Was that from taking counter-party risk or from varying from the index? The first time I met Jack Bogle, he complained about this performance. IIRC, Alan, It was because they varied from the index. They apologized to their shareholders and vowed that would never happen again. Hi Mel and Hi Allan, My wife and I had the plea...
by 272 Sheep
Sun May 26, 2019 4:17 pm
Forum: Investing - Theory, News & General
Topic: What kind of jobs do people who have SEP IRAs do?
Replies: 32
Views: 3510

Re: What kind of jobs do people who have SEP IRAs do?

I chose the SEP IRA route because of the simplicity of rules and lack of paperwork many years ago. As my W2 from my S-Corp. exceeds the minimum to contribute the maximum and I’m the sole employee and shareholder as well it doesn’t impact me other then the Roth issue. At the time, I hadn’t even realized the back door Roth was a thing. As my expenses in retirement (therefore taxes) will be many times smaller by almost 80% for various reasons and the current desire to minimize any extra taxes, I believe that a Roth may not be as much benefit right now for me although I certainly could be wrong. Hi Ferdinand2014 Roth may not be much benefit right now but could be in the future. If having very large tax-deferred (SEP IRA) it will trigger mandat...
by 272 Sheep
Sat May 25, 2019 9:28 pm
Forum: Personal Investments
Topic: NOOB trying to learn (yes im a tad late age 52)
Replies: 9
Views: 8145

Re: NOOB trying to learn (yes im a tad late age 52)

Its never too late and never too late to learn.
Additionally, I have found what has worked for me, is reading a few good books by good people to give yourself knowledge, perspective
which will build confidence.
https://www.bogleheads.org/RecommendedReading.php
by 272 Sheep
Sat May 25, 2019 6:07 pm
Forum: Personal Investments
Topic: Total US Market vs 1/3 Large, Mid, Small
Replies: 15
Views: 2304

Re: Total US Market vs 1/3 Large, Mid, Small

I don't think there is anything wrong with it per se. So long as you have the discipline to see it through, long-term.
Perhaps your taking a tad more risk. More complicated, for sure.
Time will tell if it performs better than TSM. Perhaps by taking more than average risk, it will.
Not sure its worth all the trouble to make the point.
If you do, good luck.
Carl W.
by 272 Sheep
Sat May 25, 2019 10:51 am
Forum: Investing - Theory, News & General
Topic: "Investing in Total Markets"
Replies: 45
Views: 7831

Re: "Investing in Total Markets"

Hi Taylor,
Total Stock Market Index Funds are the core of wife's and my portfolio. An important item that we can take for granted.
Jack Bogle, I believe, was its first proponent. Your post is a good reminder of why we have it.
Few weeks ago, my wife sent me this:
https://www.youtube.com/watch?v=w0ZRkM5uszI

It seems, that the idea of holding onto Total Stock Market has been catching on by many!
Carl W.
by 272 Sheep
Sat May 25, 2019 10:24 am
Forum: Investing - Theory, News & General
Topic: just a general comment about "too conservative" investors here
Replies: 220
Views: 34471

Re: just a general comment about "too conservative" investors here

This board has a few collective biases (IMO) but too being "too conservative" in asset allocation to equity relative to some overall norm is not one of them. I think most people don't have a good feel for what happens if you are 80%, 90% stock when we hit a bear market. Just see some of Nisiprius's posts about what happens if you are 60/ 40 when the stock market takes a hit. I don't think people are ready for that, mentally. And 2008-09 taught a "lesson" that bear markets are short and followed by fast recoveries - but that's not at all a given. About all I'm getting from this thread is that it's a nice example of belief superiority - especially when someone starts throwing around the "people" word as though t...
by 272 Sheep
Fri May 24, 2019 9:24 am
Forum: Personal Investments
Topic: Evaluate my choices
Replies: 13
Views: 1391

Re: Evaluate my choices

Asking about business cycles and dabbling in oil CCF is not a good start to investing. My advice just focus on these 5 aspects of investing and you will be fine... 1. Make as much as you can so you can save as much as you can 2. Asset allocation is king (stocks/ bonds/ cash) 3. Avoid active management (security selection and market timing) 4. Be cognizant of fees, taxes, and inflation as the eat into long term returns 5. Stay the course. A good plan that you can stick to is better then a seemingly perfect plan that you may bail. For me, after hours of reading, discussing, and arguing on this site the above 5 points is all you need to be successful. Good luck. +2 Personally, i don't think there is any problem with your AA. Ultimately, you a...
by 272 Sheep
Thu May 23, 2019 9:12 pm
Forum: Investing - Theory, News & General
Topic: How to "lie" with Personal Finance
Replies: 28
Views: 5721

Re: How to "lie" with Personal Finance

I stumbled across this "Early Retirement Now" blog post How To “Lie” With Personal Finance (by "Karsten" aka "Big ERN") and thought it would be interesting -- and important -- to those in the process of planning for retirement. I found it to be a good read. It does make one re-think "will I (or do I, in my case) have enough?" In case you are worried about me, I still think I am OK! How about you? The discussion is about how popular retirement math and statistics (e.g. the 4% rule) are misleading. Major headings ("lies") are: 1: Using arithmetic, non-compounded average returns Some of those get into areas I hadn't thought about. There are lots of details, but each section includes a paragrap...
by 272 Sheep
Thu May 23, 2019 4:11 pm
Forum: Investing - Theory, News & General
Topic: Regression to the Mean - and our money
Replies: 16
Views: 1950

Re: Regression to the Mean - and our money

When it comes to Active vs. Passive, a financial planner, (now deceased) explained it to me very simply:
1. Before costs are deducted, Active funds, as a whole, make the market average.(Half win, half lose.)
2. Before costs are deducted, Passive funds, as a whole, make the market average. (Most, whose objective is to "match" the market.)
3. Because Active funds have much higher fees than Passive funds, Passive funds wins!

My take on it is this:
Sometimes Active funds can only narrow the gap of how much they lose to Passive.
I can imagine, sometimes, they can even narrowly win in some (very) few years.
In other years, Active funds can get beat by allot!
It is near a mathematical certainty! :happy

Carl W.
by 272 Sheep
Wed May 22, 2019 9:04 pm
Forum: Investing - Theory, News & General
Topic: just a general comment about "too conservative" investors here
Replies: 220
Views: 34471

Re: just a general comment about "too conservative" investors here

Great rant Op!
Quote I like is: "Good decisions come from experience...and experience mostly comes from from bad decisions. :D
(From restroom stall at "Airport Diner")
Carl W.
by 272 Sheep
Mon May 20, 2019 11:51 pm
Forum: Investing - Theory, News & General
Topic: Vanguard ETFs, ranked by diversification benefit
Replies: 66
Views: 8363

Re: Vanguard ETFs, ranked by diversification benefit

OP, In likely rising interest rate environment, not sure that having (especially significant amount) of long bonds is a good idea, especially a person like me who is early in his retirement. Sharp rate climb will give significant and proportional loss to long-bond value. Aren't long-bonds closely correlated with equities so they act very similarly in a portfolio? I want my bonds to act differently (if possible) than my stocks. Swedroe always says, take risk in stocks, safety in bonds. If you are a younger investor (have time on your side) and confident and have the discipline to follow through with your strategy, that "could" work very well for you . Especially, that you are likely holding far lower percentage of bonds. I (have le...
by 272 Sheep
Mon May 20, 2019 9:09 am
Forum: Personal Consumer Issues
Topic: If you liked “They Shall Not Grow Old” - “Cold Blue” coming May 23
Replies: 13
Views: 2421

Re: If you liked “They Shall Not Grow Old” - “Cold Blue” coming May 23

Did see "They Shall Not Grow Old". Very good, different, almost entirely from the British soldier's perspective.
May check out "Cold Blue" as well.
Thanks.
Carl W.
by 272 Sheep
Sat May 18, 2019 8:58 pm
Forum: Personal Finance (Not Investing)
Topic: Rent or Buy?
Replies: 10
Views: 1364

Re: Rent or Buy?

Often it is said a house will be your best investment. While there are pluses there are also minuses.
House, to me, is essentially a liability:
Roof-over, new roof
New furnace
Bad lawn that need fixing
High Property Taxes
Home insurance
Termites
Mice (3 yrs ago chewed thru my furnace elec, wire in middle of winter)
Flood in basement (Live on hill, driveway not to code -water poured in.)
Deck ( Nearly collapsed when family and extended family having cookout -was not flashed properly)
Wife also wanting this or that improvement.
Whew!
I'm nearly exhausted from just recalling past episodes! I'm sure, I missed some!
Again? You want to do what?
Carl W.
by 272 Sheep
Sat May 18, 2019 8:23 pm
Forum: Personal Investments
Topic: Retirement Portfolio For the Early Years? Appreciate Advice
Replies: 5
Views: 1932

Re: Retirement Portfolio For the Early Years? Appreciate Advice

Have you considered delaying S.S. to 70 yrs old?
Carl W.
by 272 Sheep
Sat May 18, 2019 7:59 am
Forum: Investing - Theory, News & General
Topic: Actual Experience as true measure of risk tolerance
Replies: 83
Views: 9086

Re: Actual Experience as true measure of risk tolerance

Can I ask you? Do you get it right after the first bear market experience? Or it takes time to get a AA that allows you to stay the course. alexfoo39: It took me (and my family) a long time to invest in stocks again. I think members of the Boglehead Forum have a much better chance to stay-the-course because of Jack Bogle and topics such as this. Best wishes Taylor Hi Taylor, I didn't grow up in the Great Depression but I did grow up with my mother and father who were right in the middle of it. Inevitably or eventually any and all of their life stories ended up there or colored by it. I think, no one can really know unless they've been there. The words "horrifying" and "despair" are only a few of the apt words to describ...
by 272 Sheep
Sat May 18, 2019 7:21 am
Forum: Personal Investments
Topic: RMD taxes
Replies: 9
Views: 1170

Re: RMD taxes

Is this just your normal RMD or did you take out extra? Or 2 RMDs in one year?
If just normal, situation will only get worse in future years.
Do you have cash available to convert to Roth IRA(s)?
All I can think of.
Carl W.
by 272 Sheep
Fri May 17, 2019 10:41 pm
Forum: Personal Investments
Topic: Novice question re: modifying portfolio for tax efficiency
Replies: 5
Views: 875

Re: Novice question re: modifying portfolio for tax efficiency

Your bond fund and other fixed income assets are normally best placed in a tax-deferred account such as a traditional IRA, 401k, or TSP account. If you don't have one of these tax-deferred savings accounts then it might make sense to move bonds to the Roth account. Or it may make more sense to leave things as they are. Allowing VTSAX to grow unfettered in the Roth account may result in more after-tax wealth. Without more details it's hard to know what your best path forward might be. If you take the time to present your portfolio information in the format suggested in this thread then you will get much better advice that takes into acocunt all the other factors that affect this decision. Keep VTSAX in Roth. Add Bonds to Roth. If not enough...
by 272 Sheep
Fri May 17, 2019 10:08 pm
Forum: Personal Investments
Topic: Am I being ripped off?
Replies: 42
Views: 5429

Re: Am I being ripped off?

Take the plunge. You are already doing 2/3 of the portfolio.
Say good-bye and thanks to Morgan Stanley and do it yourself.
Carl W.
by 272 Sheep
Thu May 16, 2019 3:56 pm
Forum: Investing - Theory, News & General
Topic: Did you buy the 600+ dip last week ?
Replies: 129
Views: 10636

Re: Did you buy the 600+ dip last week ?

To OP,
Nope. I guess I just missed it.
by 272 Sheep
Thu May 16, 2019 8:00 am
Forum: Investing - Theory, News & General
Topic: I can't believe I am thinking this [Panic and Survival 2008-09]
Replies: 526
Views: 467862

Re: I can't believe I am thinking this [Panic and Survival 2008-09]

Much like when expecting a Nor'easter.
Before it hits:
1. Go to store and buy goodies.
2. Pull down all the shades in the house.
3. Eat goodies during storm.
4. Storm over.
Why some of us weigh a little more than we should! :shock:
Carl W.
by 272 Sheep
Wed May 15, 2019 9:17 pm
Forum: Personal Investments
Topic: Criticism of my portfolio, please?
Replies: 9
Views: 1461

Re: Criticism of my portfolio, please?

All I might add is I would change VBLIX to Tax-exempt intermediate-term bond fund.
Even though you do not have RMDs to be concerned about, you might think of adding a Roth IRA.
Why? For the sole purpose of having some tax-diversification. You, otherwise, are paying taxes everything else.
In the future, nice to know that you'll have a tax "refuge" you can call upon that is tax-free.
Good having no debt!
Carl W.
by 272 Sheep
Wed May 15, 2019 8:42 pm
Forum: Investing - Theory, News & General
Topic: Should one diversify into annuities and not bonds?
Replies: 18
Views: 2673

Re: Should one diversify into annuities and not bonds?

bikechuck wrote: Wed May 15, 2019 2:01 pm
272 Sheep wrote: Wed May 15, 2019 9:19 am I think delaying S.S. to 70 yrs old is like buying a short-range deferred annuity which has COLA built in which my wife and I are doing.
Carl W.
I am deferring until 70 as well, however with the sad shape of the SS Trust Fund I am not so sure that it is a great decision.
I am betting that there is too much politics (either side of the aisle) built into S.S. to allow it to fail.
It usually takes a mad crisis at 5 min. to midnight of deadline (what is it, 2034?) before all sides agree and then fix it! :D
by 272 Sheep
Wed May 15, 2019 6:01 pm
Forum: Personal Investments
Topic: How am I doing so far???
Replies: 15
Views: 1720

Re: How am I doing so far???

Welcome!
You've laid the foundation for bigger and better!
Congrats, keep going! :happy
by 272 Sheep
Wed May 15, 2019 1:33 pm
Forum: Personal Investments
Topic: Sell I-Bond just to re Buy at fixed interest?
Replies: 5
Views: 592

Re: Sell I-Bond just to re Buy at fixed interest?

I like getting the 0.5% fixed interest instead of 0%. Using my 0% I-bonds as income suppiement as they get past 5 yr.
Replacing them so to maintain an additional emergency fund.
by 272 Sheep
Wed May 15, 2019 9:48 am
Forum: Personal Investments
Topic: New to investment
Replies: 6
Views: 477

Re: New to investment

Welcome.
While safe-guarding your $50k and if having a 401k savings plan where you work, you could start contributing with a small percentage deducted from your paycheck. I would recommend starting small. Hopefully, the plan would have matching money. :happy
Carl W.
by 272 Sheep
Wed May 15, 2019 9:19 am
Forum: Investing - Theory, News & General
Topic: Should one diversify into annuities and not bonds?
Replies: 18
Views: 2673

Re: Should one diversify into annuities and not bonds?

I'd suggest diversity in fixed-income sources (admittedly at the expense of simplicity). Here's why. 1. Annuities are contracts with insurance companies. The post 2009 regulations restraining large insurance company behavior are apparently about to be rescinded. This may (or may not) be a red flag to you. 2. Annuities are fixed according to the terms of the original contract. The rates don't change. They cannot be cashed in. Bonds can be cashed in and if interest rates rise, your bond holdings ought to be able to adjust up over time. 3. If you want explicit inflation protection it will cost plenty if you buy a COLA feature for an annuity. Inflation protected bonds are backed by the government and (I'm not an expert but believe) at much low...
by 272 Sheep
Tue May 14, 2019 10:12 pm
Forum: Investing - Theory, News & General
Topic: Another Warren Buffett S&P 500 Recommendation
Replies: 109
Views: 20154

Re: Another Warren Buffett S&P 500 Recommendation

According to below article he hasn't beat S&P 500 in 15 years. https://www.marketwatch.com/story/no-one-will-ask-this-one-question-hanging-over-berkshire-hathaways-annual-meeting-2019-05-03 I don't think Buffett's accomplishments are a statistical outlier. I think Buffett is a great and genuinely talented, brilliant investor who has a record second to none and over a very long period of time. He and Munger along with Berkshire-Hathaway have matured. In a sense B-H, due to its very large size, has become like the S&P 500 itself! When B-H was smaller and nimbler and Buffett, younger and hungrier is when they made outsized gains. Its inevitable that superb long-term records will eventually come to an end. Joe DiMaggio's 56 game hitting...
by 272 Sheep
Tue May 14, 2019 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: Cash - Throw it all on the table!!!
Replies: 282
Views: 58237

Re: Cash - Throw it all on the table!!!

Correction: Delaying S.S. to 70. Forgive me, I must have "70-1/2" on the brain! :oops:
by 272 Sheep
Tue May 14, 2019 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: Cash - Throw it all on the table!!!
Replies: 282
Views: 58237

Re: Cash - Throw it all on the table!!!

I treat I-bonds as cash, does that count? Delaying S.S. to 70-1/2.
Have enough to get past the milestone, scheduled to avoid dreaded "last 3-month interest penalty".
Plus, near 3% of portfolio is in Prime MM.
Don't do anything fancy with buckets. Just make sure I have plenty cash, I-bonds. :happy
Carl W.
by 272 Sheep
Tue May 14, 2019 5:24 pm
Forum: Personal Investments
Topic: Delete
Replies: 18
Views: 4100

Re: 30 years old, What should I do with all this cash?

Welcome to forum.
Do you fully fund your Roth IRA every year?
Do you have cash outside of what you have shown?
If not, you might put some in a money market fund, for emergencies, future purchases etc.
Carl W
by 272 Sheep
Tue May 14, 2019 5:05 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Long Term Bond Index to charge 0.50% fee on purchases
Replies: 65
Views: 7992

Re: Vanguard Long Term Bond Index to charge 0.50 fee on purchases

Thanks anyway but have no need of Long-term bond fund whether it be MF or ETF.
If I was, it would be the ETF.
Carl W.
by 272 Sheep
Tue May 14, 2019 9:33 am
Forum: Investing - Theory, News & General
Topic: "Fund groups challenged over securities lending practices"
Replies: 12
Views: 1670

Re: "Fund groups challenged over securities lending practices"

I interpret it like this:
1, Vanguard returns 95% of securities lending back to shareholders.
2. Maybe, costs Vanguard 5% to do it.
Sure looks like it is consistent with, that Vanguard is aligned with shareholder interests, (much) more so than those others are.
Was it Morningstar that gave Vanguard best fiduciary award?
by 272 Sheep
Tue May 14, 2019 8:44 am
Forum: Personal Investments
Topic: What's my next step? (Edited / Updated with portfolio details)
Replies: 15
Views: 2060

Re: What's my next step? (Edited / Updated with portfolio details)

One more thing.
When your interviewing your "3" fee-only advisers, don't fall-in-love with the first and second right away. See all 3.
After comparing, you'll get a good idea of who you will want.
In all 3 cases, the first hour is for free!
by 272 Sheep
Tue May 14, 2019 7:23 am
Forum: Personal Investments
Topic: Asset Allocation in 60s
Replies: 19
Views: 3596

Re: Asset Allocation in 60s

retiredjg wrote: Mon May 13, 2019 3:11 pm I'd consider 60% stock/40% bonds while working and about 50/50 after that.
+2
While working, you can take more risk, if you want to. Saving more than spending. Or at least mitigating the effects of spending.
Once you've stopped working, you are now spending entirely instead of saving. How can you make up for a market calamity?
Or how long are you willing to wait in recovery for it to subside? Go back to work?
by 272 Sheep
Mon May 13, 2019 10:31 am
Forum: Personal Investments
Topic: Moving from Edward Jones to Vanguard
Replies: 16
Views: 2342

Re: Moving from Edward Jones to Vanguard

Place to start to determine AA. https://www.investor.gov/additional-resources/general-resources/publications-research/info-sheets/beginners%E2%80%99-guide-asset I would get from Vanguard, Fidelity and T.Rowe Price their "Asset-Allocation questionnaire" so you and spouse can determine what your own personal AA is. There is no perfect science here but a good beginning place. If not disposed to want to do this, you could pay a fee-only planner to help get you started. I have done several of those sites and I usually come out with a 60/40 split. I tend to think I'm more aggressive than that but when I answer the question truthfully 60/40 is the result. AA of 60/40 puts you around age -20 in bonds, which is actually pretty salty. Agre...
by 272 Sheep
Mon May 13, 2019 10:20 am
Forum: Investing - Theory, News & General
Topic: Another Warren Buffett S&P 500 Recommendation
Replies: 109
Views: 20154

Re: Another Warren Buffett S&P 500 Recommendation

Last 15 years, Berkshire-Hathaway has underperformed S&P 500!
by 272 Sheep
Mon May 13, 2019 9:22 am
Forum: Personal Investments
Topic: What's my next step? (Edited / Updated with portfolio details)
Replies: 15
Views: 2060

Re: What's my next step? (Edited / Updated with portfolio details)

I forgot to mention, that fee-only advisers are the only advisers which can be held accountable for their advice.
by 272 Sheep
Mon May 13, 2019 9:16 am
Forum: Personal Investments
Topic: What's my next step? (Edited / Updated with portfolio details)
Replies: 15
Views: 2060

Re: What's my next step? (Edited / Updated with portfolio details)

I would make sure, if looking for fee-only planner help, that the main knowledge is about taxes to go along with possible advice unwinding individual stock. (if necessary) thanks for the response! What should I be wary off with a fee-only planner if I decide to go that route? We've never used one. You ought to be wary of any financial adviser. You have to check their history. All provide ADV2 but not all volunteer ADV1. Adv1 is where any disciplinary records will be. If they won't provide, leave. Always interview "3" advisers and don't be afraid to negotiate hourly fee ($200 -$300/hr range) Used fee-only in 2008 concerning pension and wife and I were satisfied for that purpose. For your purpose, I would recommend a fee-only advis...
by 272 Sheep
Mon May 13, 2019 8:05 am
Forum: Investing - Theory, News & General
Topic: Bonds for growth Vs Bonds for rebalancing
Replies: 7
Views: 846

Re: Bonds for growth Vs Bonds for rebalancing

dbr wrote: Mon May 13, 2019 8:01 am Is this question about rebalancing or is it about optimizing portfolio efficiency, meaning specifically reducing volatility at same return or increasing return at same volatility (or both). It should be right that a portfolio fairly heavy in stock would best be paired with long bonds, but that is about return, volatility, and correlation. I don't think growth and rebalancing are some kind of opposites or that you select an asset allocation "for rebalancing."
+1
by 272 Sheep
Sun May 12, 2019 10:26 pm
Forum: Investing - Theory, News & General
Topic: Another Warren Buffett S&P 500 Recommendation
Replies: 109
Views: 20154

Re: Another Warren Buffett S&P 500 Recommendation

Hi FIREchief, My reponse below: So Buffett has instructed his wife's trustee to put 90% of his legacy into an S+P index fund? NOT Berkshire-Hathaway??? This is somewhat of a goof. I've only heard him quoted as "recommending" this to the trustee. If that's all it is, then I believe that most/all states' prudent investor laws would require the trustee to adopt a more diversified investment strategy. The only way around that is if the trust specifically requires that 90/10 allocation. Not a goof. Buffett has specifically said he will invest in Vanguard S&P 500 Index fund, 90%. Has said he will practice what he preaches. Buffett says he has great respect for Bogle who was invited and recognized at most recent Berkshire meeting. Be...