Bogleheads.org

Call_Me_Op

If we were in the midst of a market down-turn, you would not be at your target AA. Your bond value will be well over target, and you could trim those to generate cash. That said, most Bogleheads hold some cash for living expenses and emergencies.

Call_Me_Op

Rick,

How fortunate we are that you were able to interview Jack for this podcast series - and fitting that he was featured in the very first episode.

Call_Me_Op

"This environment" has nothing to do with what AA you should have. I don't think we can give you a responsible recommendation unless we know why you are now all cash.

Call_Me_Op

Bottom line is that SIPC insurance will never be used for an FDIC-insured asset. SIPC is used for securities that cannot be accounted for. If a holding is covered by FDIC, SIPC will not be needed to cover it.

Call_Me_Op

Has anyone ever asked if using an Asset Allocation is mental accounting? I mean you are obviously obfuscating the actual dollar amount and only seem to view risk in percentage terms instead of in relation to something concrete like the possible loss in dollars. TheTimeLord, Not to me. My AA is both...

Call_Me_Op

It is unfortunate that some see Bogleheads as a homogeneous group of dogmatic followers of Jack Bogle. Speaking for myself, I am attracted to the forum because it consists generally of people who believe in following the truth - wherever it may lead. The world is unfortunately filled with misinforma...

Call_Me_Op

As a correlate to the recent post on Jack Bogle recommending a small allocation to gold for a long-term portfolio, I started to wonder about holding gold in ETF form and whether there are any assurances that (in a time of crisis) an ETF holder (of GLD, for example) can liquidate his or her gold posi...

Call_Me_Op

Jack said that the 5% allocation to gold would be "a hedge against some kind of catastrophe." 5% seems low for the purposes of doing much good, but OTOH, it's unlikely to do much harm if the catastrophe never manifests itself either. This makes me feel a little better about our physical gold holdin...

Call_Me_Op

Investors have lost their best friend. Condolences to all Bogleheads, and especially to Jack's family and close friends.

Call_Me_Op

JoMoney wrote: ↑
Sat Jan 12, 2019 9:16 pm
I wonder how unified and quickly they would be if it got to the point congress had to actually formally act to appropriate money to bail out FDIC.

Pretty quick, I would think, if you consider the consequences of allowing grandma to lose her life savings tucked away in that bank CD.

Call_Me_Op

Past performance is not an indicator to future results - but how far do you take this? US vs INTL https://i.imgur.com/sXZg0J1.png Suggests to me a higher likelihood of international out-performance over the next decade. BTW, I have been 50-50 and plan to stay the course. I chose 50-50 because it is...

Call_Me_Op

It's a pure speculation (it's a shiny metal that just sits there), but holding 5% can't do much harm. Beware of backtesting, as it may include the huge run-up after the US went off the gold standard in 1971.

Call_Me_Op

One reason that we are told to take risk on equity side is that upside is theoretically unlimited.

In any case, I find it very helpful to dichotiomize portfolio into safe and risky assets. Doing so allows transparency with respect to the risk you are taking.

Call_Me_Op

https://www.advisorperspectives.com/articles/2019/01/07/does-the-bucket-approach-destroy-wealth?bt_ee=FTU%2FsBNf%2FLUiHMmWwiQ4s%2FPvcHZiqdidGGmLKie5LRuYO378o7HycRIbJqe0nQFi&bt_ts=1546956764657 In this article Larry goes into significant depth on retirement planning with Monte Carlo Simulation. MCS ...

Call_Me_Op

Talking to Vanguard PAS financial advisor. He wants to liquidate everything and go to 40:60 equity/bond fund with enough cash for emergencies. Currently I have taxable individual bonds in my profit sharing account and lattered single state muni bonds in my taxable account. It seems that I will not ...

Call_Me_Op

Highly unlikely to be a problem.

Call_Me_Op

anhedonia wrote: ↑
Mon Jan 07, 2019 8:56 pm
I've been a buy and hold investor on and off my entire life. I started out when I was 19 and have done so the last 205+ years.

That would make you..let's see......224+ years old. Congrats!

Call_Me_Op

Yes, too good to be true.

Call_Me_Op

No limit. If you can afford it, go for it.

Call_Me_Op

Before you can intelligently discuss something, much less quantify it, it must be defined. What is your definition of "risk"?

Call_Me_Op

Sounds like you didn't understand why you were investing in the things you were investing in. That is a sure path for not being able to stick with a portfolio through the inevitable times when tracking error is negative.

Call_Me_Op

2737.48

Call_Me_Op

Of course, what happens over 1 year is really of little importance to the long-term investor.

Call_Me_Op

My view on this is we can spend all day arguing about how harmful Radon is or is not, but the fix is cheap and effective. My depressurization motor has been running constantly for 15 years with no problems. I would rather be safe than sorry. When someone gets cancer, we never can prove (or even know...

Call_Me_Op

I do not distinguish between bonds and cash - I want a year’s spending in something FDIC insured, and as for the fixed income/bond allocation, I have a mix of treasuries, cds, corporates, TBM, and munis, with a duration ranging from a year to 7-ish. Someday, I may consolidate back down to a simpler...

Call_Me_Op

I don't think you can confidently expect anything. I think 3% is conservative and I would expect 5%. But there are no guarantees.

Call_Me_Op

This depends upon your definition for cash. Cash is really a special type of bond - one with a duration of zero. But if one insists on separating the two assets, CDs are a better fit in the bond category because they are not completely liquid in general.

Call_Me_Op

Just speculating (as to the precise answer to your question), but there are factors beyond turnover that determine tax efficiency - such as offsetting of gains and holding period for stocks that produce dividends.

Call_Me_Op

I had 20 in basement, 10 on first floor, Had system installed many years ago - down below 0.5.

Call_Me_Op

OP,

Your AA looks fine to me. Congratulations on building such a large portfolio at a fairly young age.

Call_Me_Op

YoungBogle wrote: ↑
Fri Dec 28, 2018 3:57 am
What are some critiques of passive investing/or which critiques do you find most warranted?

None I have seen are warranted in terms of effects on the individual investor. You must always consider the source.

Call_Me_Op

Never mind the NAV. What is important is total return, which includes reinvested dividends. That should be much higher in 10 years.

Call_Me_Op

I feel like this is a very basic question I should already know the answer to. When a bank advertises things such as "2% APY on Money Market" or "3.10% APY on 5-yr CD", what makes these rates move up or down? Is it the Federal Funds Rate, the current yields on Treasuries, or what exactly? In other ...

Call_Me_Op

I reinvest them in tax-deferred but in taxable, I have them paid into sweep account. The latter makes tax-loss harvesting less prone to unintended wash sales.

Call_Me_Op

If you had instead purchased a 5 year individual bond, it would also have been down by 2% in value after 1 year.

You need to spend more time understanding how bonds work. They are actually quite simple.

Call_Me_Op

retiredwrench wrote: ↑
Thu Dec 27, 2018 10:33 am
Thanks Op sounds like the best option. I guess I would have to wait a month to buy the intermediate muni fund?

Why?

Call_Me_Op

As a side note I recall reading that the National muni contains a large amount of Illinois debt. From what I understand to be the riskiest in the country. Also being single and being on the cusp of 24% and 32% keeps me leaning towards a muni. The Vanguard Intermediate Tax-Exempt fund is mostly AAA ...

Call_Me_Op

Right on call me, sounds like the most reasonable option. I think I am allowing emotion and recency bias to keep me attached. This was a nice check every month for a long time. Another facet, 2.1B assets? Doesn't sound like a lot of investors willing to to take this risk considering I am into it fo...

Call_Me_Op

I want to switch because I am no longer a resident of NJ and the finances of the state scare me. I believe only 1% of the the state pension is funded. I would rather spread the risk a little more. Not looking to sell low, I want to take advantage of the tax loss. Even though there is principal loss...

Call_Me_Op

Does anybody have any idea what is going on in the market right now and can explain? I'm not convinced it has much to do with trade and government shut down at all. I've heard rumors of hedgefunds selling off at the end of the year, what other theories are there? Why does it matter? Will you change...

Call_Me_Op

Jesteroftheswamp wrote: ↑
Thu Dec 27, 2018 4:00 am
Let’s say, hypothetically speaking of course, that there is a good chance stocks will fall in the next few weeks/months.

There's the issue. How do you know there is a "good chance stocks will fall in the next few weeks/months." What does that even mean?

Call_Me_Op

Even though you still may own the shares, it is reasonable to consider loss of value of those shares as "losses" since the shares are worth less. If you convert those shares into dollars you will get fewer dollars.

Call_Me_Op

So now that it is generating a higher rate of interest, you are going to sell it?

My suggestion is to learn about bonds. A bond mutual fund is nothing more than a basket of bonds.

Call_Me_Op

Tax-exempt bonds are certainly not crazy risky, but the are somewhat riskier than taxable bonds... Do you really mean this as written? I would agree that they are riskier than treasuries, but not riskier than taxable investment grade bonds (as suggested by the lower default rate of munis). Yes, I m...

Call_Me_Op

I didn't know that people were anguished by the performance of bonds this year. Strange...

Call_Me_Op

I logged-in an hour ago as well - no problemo.

Call_Me_Op

Hmmm...that looks like a typo to me.

Call_Me_Op

retiredjg wrote: ↑
Tue Dec 25, 2018 9:02 am
Tax-exempt bonds are certainly not crazy risky, but the are somewhat riskier than taxable bonds...

Do you really mean this as written? I would agree that they are riskier than treasuries, but not riskier than taxable investment grade bonds (as suggested by the lower default rate of munis).

Call_Me_Op

At what age, or life expectancy, do you become too old for buy and hold investing? Should one be 100% in short-term, investment grade bond fund if life expectancy is less than 5 years? Or 100 minus age in bonds? Fixed annuities? CDs? Or something else? One issue is you can have a life expectancy of...

Call_Me_Op

I pointed out in the Free-Fall thread that the Utilities sector has fallen lately while the total bond market is up slightly. This make absolutely no sense to me. Has this happened before? I thought that these were roughly correlated. Say what? What gave you that idea? There is a reason that Bogleh...

Search found 7117 matches