Search found 72 matches

by joshnluv
Sat Nov 06, 2010 12:38 pm
Forum: Personal Investments
Topic: How long does VGTBM fluctuate with interest rate rise?
Replies: 1
Views: 593

How long does VGTBM fluctuate with interest rate rise?

Dear Bogleheads, I tried searching this topic in the forum but for some reason the search fails. I recently read Valuethinker's explanation about how bond funds fluctuate with rising interest rates. His example showed that the bond fund price drops by (bond duration) times (%age interest rate rise)....
by joshnluv
Fri Nov 05, 2010 1:19 pm
Forum: Personal Investments
Topic: How to pick a bond fund?
Replies: 40
Views: 9033

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by joshnluv
Thu Nov 04, 2010 10:59 am
Forum: Personal Investments
Topic: How to pick a bond fund?
Replies: 40
Views: 9033

Re: How to pick a bond fund?

I am building my portfolio. The stock part seems easy - there have been multiple studies that show stock index funds beats most managed funds. When it comes to bonds, the picture appears to be less clear. Should I pick a total market bond index, a GNMA fund, or something else? What factors should I...
by joshnluv
Wed Nov 03, 2010 12:29 pm
Forum: Personal Investments
Topic: How to pick a bond fund?
Replies: 40
Views: 9033

Re: How to pick a bond fund?

I am building my portfolio. The stock part seems easy - there have been multiple studies that show stock index funds beats most managed funds. When it comes to bonds, the picture appears to be less clear. Should I pick a total market bond index, a GNMA fund, or something else? What factors should I...
by joshnluv
Wed Nov 03, 2010 11:23 am
Forum: Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6364

Jacotus and noobvester, I have done this kind of charting before and understand the basic difference between stocks and bonds. The reason why I consider them both risky is because I could lose my principal in either of them, right? Agreed, not as easily with good bonds but still, the risk is there. ...
by joshnluv
Wed Nov 03, 2010 11:04 am
Forum: Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6364

[I still have one question. Landy indicated that your percentage of taxable actually went up in the last year. Are you maxing out all of your tax-advantaged space? Two 401/403s (if both have one)? Two IRAs? You could even use the space in the 529s if you want (or maybe they are already filled up wi...
by joshnluv
Tue Nov 02, 2010 7:44 pm
Forum: Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6364

Josh, the reality is you are 18/82. You don't have to agree with me or anyone else but I think the majority of educated investors would agree with this statement.* *Alternatively, you can say you are 43/57 but have a portfolio of only $420,000 rather than $1,000,000. They are equivalent. What's wei...
by joshnluv
Tue Nov 02, 2010 7:37 pm
Forum: Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6364

Jacotus wrote:I think the main problem here is that the OP does not understand the difference in risk (volatility) between equities, bonds, and CDs. We need some of nisiprius's trademark graphs in here!
Yes, I swear that's who I thought of just now :) I hope he/she sees this.
by joshnluv
Tue Nov 02, 2010 7:36 pm
Forum: Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6364

Sorry, I still don't get why it is necessary to club bonds+CD+cash as fixed income when considering the stocks/bonds ratio. On one hand, people here talk about how CDs/savings are the only instruments offering guaranteed income. On the other hand, they get confused when I separate out bonds from th...
by joshnluv
Tue Nov 02, 2010 7:17 pm
Forum: Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6364

Sorry, I still don't get why it is necessary to club bonds+CD+cash as fixed income when considering the stocks/bonds ratio. It is by definition, plus a little sloppiness. When you plan a portfolio, it is generally divided into stocks, bonds, and cash. An example would be 60% stocks/35% bonds/5% cas...
by joshnluv
Tue Nov 02, 2010 3:56 pm
Forum: Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6364

Re: So near yet so far, please help!

Taxable (65%) 30.0% Total Stock Admiral (VTSAX) 20.0% FTSE ex US Large (VFWIX) 15.0% California Intermediate-Term Tax-Exempt Admiral (VCADX) This is similar to what everyone had in mind I think. As it turns out, the original poster was not including his cash as part of the asset allocation. He was ...
by joshnluv
Tue Nov 02, 2010 3:52 pm
Forum: Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6364

Taxable (65%) 30.0% Total Stock Admiral (VTSAX) 20.0% FTSE ex US Large (VFWIX) 15.0% California Intermediate-Term Tax-Exempt Admiral (VCADX) This is similar to what everyone had in mind I think. As it turns out, the original poster was not including his cash as part of the asset allocation. He was ...
by joshnluv
Tue Nov 02, 2010 3:48 pm
Forum: Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6364

Sorry, I still don't get why it is necessary to club bonds+CD+cash as fixed income when considering the stocks/bonds ratio. On one hand, people here talk about how CDs/savings are the only instruments offering guaranteed income. On the other hand, they get confused when I separate out bonds from th...
by joshnluv
Tue Nov 02, 2010 3:44 pm
Forum: Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6364

Re: re: So near yet so far, please help!

Current portfolio – Just hit 7 figures Taxable 24.68% cash 33.69% CDs 4.89% - VG International 13.02% - VG TotalStockMarket Index --------------------------------------------- Josh, I include the previous suggestion I made a year ago for reference. Taxable (65%) 30.0% Total Stock Admiral (VTSAX) 20...
by joshnluv
Tue Nov 02, 2010 3:32 pm
Forum: Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6364

wouldn't a TIPS ladder (if in a tax-advantaged account) be expected to outperform cash over time? It would eliminate inflation risk, reinvestment risk, and price risk, while offering a higher expected return. The OP could switch his cash to TIPS, then invest the residual as per suggestions above. H...
by joshnluv
Tue Nov 02, 2010 3:31 pm
Forum: Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6364

Josh, you said all of that money is set aside for retirement. By definition, that is your retirement portfolio. Therefore, your retirement portfolio is 18% stocks/82% fixed income. When you said before you wanted 50% stocks/50% bonds, you were thinking about what is "invested" rather than what you ...
by joshnluv
Mon Nov 01, 2010 11:57 pm
Forum: Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6364

Just a thought. . Wondering if your 401k has a stable value option. If so, you may want to consider utlizing it for some of you "safe" money. (I know they are not absolutely safe, but they're pretty safe.) While they are considered bond like, your principal should not run the risk of falling like t...
by joshnluv
Mon Nov 01, 2010 11:19 pm
Forum: Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6364

You don't really need any equities in your retirement portfolio at all. However, if you choose to be that risk-averse, then you will need a larger pile to start with or spend less in retirement or work longer. Nothing wrong with any of that. You may enjoy following a Zvi Bodie style retirement plan...
by joshnluv
Mon Nov 01, 2010 11:08 pm
Forum: Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6364

I never set out to have a stocks/bonds/cash portfolio. It just so happened because while bonds are fixed income they are still volatile unlike CDs/savings. At least, that's how I see it. and then ... I am not sure about the reasoning of 18% stocks & 82% fixed income. The way I see it, I am willing ...
by joshnluv
Mon Nov 01, 2010 11:01 pm
Forum: Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6364

Was wondering if the current 20/80-50/50 stock/bond allocators were like that pre 2007? Does recency play a factor. Also, when stocks start booming for years on end, will you really be able to keep 20/80? Really? Will recency play a factor again? Of course, no one here is subject to recency bias......
by joshnluv
Mon Nov 01, 2010 10:45 pm
Forum: Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6364

Probably *not* what you are looking for if you dislike semi-extreme individual-asset swings (since gold, for one, goes way up and down!), but you may want to take a glance at the Permanent Portfolio threads around here ... if nothing else, the standard PP has 25% cash and 25% gold which lets you ke...
by joshnluv
Mon Nov 01, 2010 7:56 pm
Forum: Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6364

I agree with the other posters that right now you are 18% stocks and 82% fixed income. You appear very risk adverse, which is fine, but I think you should bite the bullet and put some of that cash into stocks and increase your stock allocation to at least 25% and maybe even up to 40%. That would st...
by joshnluv
Mon Nov 01, 2010 7:45 pm
Forum: Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6364

Sounds like rather than a stock/fixed-income allocation you want to have a stocks/bonds/cash allocation. Do you want a fixed amount of cash, or a percentage of your portfolio in cash? Either way, seems to me that you should specify that in your target AA statement. Alternately, you could consider c...
by joshnluv
Mon Nov 01, 2010 7:38 pm
Forum: Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6364

Newer investor here, tossing in my two cents on top of what is already great advice. You are 100% right to wait if you don't feel comfortable ... the 'cash' risk is a long-term one, by and large, and not a short-term one. It is that evil sinister hidden force of inflation. So, I agree: it is better...
by joshnluv
Mon Nov 01, 2010 4:36 pm
Forum: Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6364

Thank you all for looking into my post and answering questions. Some of you seemed confused about the large amount of cash in my portfolio. Yes, it is ALL towards retirement and I have not included emergency fund in it. It is in cash because of our unwillingness to take any risk with it and also due...
by joshnluv
Mon Nov 01, 2010 2:15 pm
Forum: Personal Investments
Topic: So near yet so far, please help!
Replies: 56
Views: 6364

So near yet so far, please help!

Dear Bogleheads, Some of the best minds here helped me revamp my portfolio a few months back. I've made some progress in the right direction but still, there are areas in which I need help. So, here goes.. Emergency funds = yes, have this in checking/savings Debt: None , home paid for. Tax Filing St...
by joshnluv
Wed Mar 31, 2010 1:12 pm
Forum: Personal Investments
Topic: Coverdell ESA
Replies: 6
Views: 1291

Hi Bogleheads, Continuing previous post as the questions are related. I have decided to go with VG for the Coverdell. Will be using up most of the invested money($4000) for school fees by Dec 31st 2010. Which is a good fund to invest in for such a short term and get a yield better than savings or mo...
by joshnluv
Sat Mar 27, 2010 10:07 am
Forum: Personal Investments
Topic: Coverdell ESA
Replies: 6
Views: 1291

Thanks for the input guys! Appreciate it...
by joshnluv
Fri Mar 26, 2010 12:28 pm
Forum: Personal Investments
Topic: Coverdell ESA
Replies: 6
Views: 1291

Coverdell ESA

Hi Bogleheads, I would like to open 2 Coverdell ESA accounts for my 2 kids and use it for private middle & high school tuition. I have read that the bill that allows tax-free distributions for primary/secondary education could expire in Dec 2010. So, I may have to withdraw or transfer to 529 by then...
by joshnluv
Fri Mar 05, 2010 8:00 pm
Forum: Personal Investments
Topic: Lots of capital gains = license to gamble?
Replies: 16
Views: 2356

Opponent Process wrote:you should just do whatever got you $1,000,000 in capital gains again.
And also perhaps share with us the info :)
by joshnluv
Fri Mar 05, 2010 7:56 pm
Forum: Personal Investments
Topic: Feedback re: Vanguard Financial Plan
Replies: 30
Views: 3926

Just wanted to share with everyone...had our consult with the VG planner this afternoon. I asked some of the questions you raised when reviewing their recommended portfolio and here was her response. Re: Putting the Total Bond Market Index in the taxable portion of our portfolio. She is going to re...
by joshnluv
Wed Mar 03, 2010 5:44 pm
Forum: Personal Investments
Topic: Penfed still best CD rates?
Replies: 7
Views: 2145

But, this prompts a question of my own which is, aren't ratings of how sound the bank is important when checking for CD rates? How come most members here seem not to care? Because FDIC insurance makes banking failures painless for the CD holder. At least in the past. And that's assuming you are und...
by joshnluv
Wed Mar 03, 2010 1:08 pm
Forum: Personal Investments
Topic: Penfed still best CD rates?
Replies: 7
Views: 2145

Hi, Most members here suggest Ally bank which has a 3-star bankrate.com rating. So does Penfed. I prefer Discover bank because of it's 5 star rating and comparable CD rates. But, this prompts a question of my own which is, aren't ratings of how sound the bank is important when checking for CD rates?...
by joshnluv
Sun Feb 28, 2010 2:32 pm
Forum: Personal Investments
Topic: VG recommendation
Replies: 22
Views: 4516

Hi Josh, Vanguard's own study shows the optimal diversification for international begins around 20% equity. See fig 9 in the linked article. This means portfolio volatility is less with 20% international than with 10%. This excellent comprehensive study covers many aspects of investing including ma...
by joshnluv
Sun Feb 28, 2010 2:09 pm
Forum: Personal Investments
Topic: How to rebalance
Replies: 13
Views: 2657

Re: How to rebalance

global wrote:
YDNAL wrote:
Do you want to get technical and read some crazy stuff?
http://www.tdainstitutional.com/pdf/Opp ... yanani.pdf
Very interesting doc YDNAL.
oooh, heavy stuff! I'll just be posting to this forum when my portfolio needs rebalancing :)
by joshnluv
Sat Feb 27, 2010 6:31 pm
Forum: Personal Investments
Topic: VG recommendation
Replies: 22
Views: 4516

Re: VG advice and asset location comments

I am a flagship client for a couple of years now. I am supposed to get a free financial plan, but have not taken advantage. I find my Flagship benefits are only useful to get more polite service for administrative issues, not substantive questions, and for free turbotax ! VG will give you the formu...
by joshnluv
Sat Feb 27, 2010 6:23 pm
Forum: Personal Investments
Topic: Total Int'l Stock Index vs Tax Managed Int'l
Replies: 18
Views: 3091

Re: Total Int'l Stock Index vs Tax Managed Int'l

I will be adding an International Stock fund to my taxable acct in order to maintain proper asset allocation after adding some bond funds in my tax advantaged account. Im trying to choose between Total Int'l Stock Index fund and Tax Managed Int'l fund. The After Tax returns over a 10 yr period slig...
by joshnluv
Fri Feb 26, 2010 11:48 pm
Forum: Personal Investments
Topic: Quicken Premier software
Replies: 21
Views: 5251

You can always login to your online account and download the Quicken data for your account: Tell me about downloading data from a financial institution into Quicken BTW, Quicken owns Mint.com. Looking Ahead: What's Next for Quicken Quicken stores your password info locally, so I'm not sure what you...
by joshnluv
Fri Feb 26, 2010 9:32 pm
Forum: Personal Investments
Topic: Quicken Premier software
Replies: 21
Views: 5251

Hi Bogleheads, Just bought and installed Quicken Premier. The main reason I didn't want to use mint.com was because it asked me to handover my username/password and I was worried about security on their servers. But, Quicken premier also asks for the same kind of access. Is there a way to manually d...
by joshnluv
Fri Feb 26, 2010 5:42 pm
Forum: Personal Investments
Topic: Where to put car fund money?
Replies: 23
Views: 2668

Ally bank has a rating of "performing" with 3 stars in bankrate.com. Discover bank is offering the same rate 3.15% for 5 years and has a 5 star rating.
by joshnluv
Fri Feb 26, 2010 5:21 pm
Forum: Personal Investments
Topic: How to rebalance
Replies: 13
Views: 2657

Thanks for the link metalman. Landy, I seem to be having information overload :D In my mind, I was thinking in terms of keeping bonds and stocks separate in tax-advantaged and taxable respectively and hence popped this question. But, yeah , you're right, if need be, I'll just have to mix the two as ...
by joshnluv
Fri Feb 26, 2010 4:09 pm
Forum: Personal Investments
Topic: How to rebalance
Replies: 13
Views: 2657

How to rebalance

Dear bogleheads, I have seen some posts on rebalancing but couldn't find any specifically answering my question. Say I choose to rebalance when the stock/bond %age is out of place by 5% and my 50/50 mix has now become 45%stocks/ 55%bonds. I have all my bonds in tax-deferred + tax-free IRAs and stock...
by joshnluv
Fri Feb 26, 2010 3:33 pm
Forum: Personal Investments
Topic: Dividends & capital gains
Replies: 6
Views: 1776

Thanks all and thank you for the detailed clarification Landy.
by joshnluv
Fri Feb 26, 2010 12:31 pm
Forum: Investing - Theory, News & General
Topic: Can a family of 3 live on 1.2M and never touch principal?
Replies: 43
Views: 11417

Livestrong,
Sorry, nothing to add except, my heartfelt wishes for a recovery for you so that you can spend many more healthy years with that wonderful family of yours. Keep up the spirit!
by joshnluv
Fri Feb 26, 2010 11:43 am
Forum: Personal Investments
Topic: Dividends & capital gains
Replies: 6
Views: 1776

Thanks for the reply fishndoc, but I didn't quite understand the answer to question 1. So, if I don't have a MM IRA account, I can open one and redirect dividends & CG to it without tax consequence?
by joshnluv
Fri Feb 26, 2010 1:15 am
Forum: Personal Investments
Topic: Dividends & capital gains
Replies: 6
Views: 1776

Dividends & capital gains

Dear bogleheads, I am moving forward implementing the suggested portfolio. While transfering funds into Vanguard, I came across some choices about dividends & capital gains and would like some advice on that. Basically, it asks to choose whether to reinvest them or transfer them to another fund or m...
by joshnluv
Sat Feb 20, 2010 1:40 pm
Forum: Personal Investments
Topic: One more Roth IRA conversion Question
Replies: 18
Views: 2913

Thank you all for your help. Now I just need to contact Vanguard and initiate the rollover when ever I am ready. After I transfer the existing rollover IRA to 401K, I will do Roth IRA conversion without paying any tax! Thanks again! Without starting a separate thread, I just want to clarify somethi...
by joshnluv
Thu Feb 18, 2010 8:45 pm
Forum: Personal Investments
Topic: VG recommendation
Replies: 22
Views: 4516

No. I never said that. Actually, VG seems to think that Roth IRA should hold stocks because at one point I was asking about conversions from rollover IRA to Roth IRA and VG told me that then all their bond suggestions for rollover IRA would change to TSM as they believe that in Roth IRA, the growth...
by joshnluv
Thu Feb 18, 2010 6:02 pm
Forum: Personal Investments
Topic: VG recommendation
Replies: 22
Views: 4516

Josh, I think your new suggestion is fine (other than that silly little bit of total bond market in taxable). It is certainly much better than what you had when you started. It is also better than what you posted as their first suggestion. I do think improvements could be made - by reducing or elim...
by joshnluv
Thu Feb 18, 2010 4:46 pm
Forum: Personal Investments
Topic: VG recommendation
Replies: 22
Views: 4516

Thanks for the suggestions Taylor.

1) Yes, the next step is to consolidate these IRAs into single VG IRA.

2) How do I get rid of 2.6% TBM in taxable? Should I use VG CA Int Tax exempt for this 2.6% also?

Thanks again!