I want to avoid keeping money in the CP bank sweep due to concerns about possible bank failures. So, I move money into VUSXX (98.7% Treasury Bills) right away, but it has a $3k minimum.
Bill Bernstein alludes to this in "Four Pillars": Favoring Treasuries over bank cash for maximum preservation.
Search found 2309 matches
- Tue Mar 19, 2024 2:57 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
- Mon Mar 18, 2024 7:51 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
Re: Vanguard Cash Plus Account
They have moved 43% of the money to my bank (or somewhere), but the rest remained behind in my brokerage (taxable) settlement fund. The reason I'm discussing this is that the problems began when I initially attempted to move the money into CP.pascalwager wrote: ↑Sat Mar 16, 2024 9:29 pm I've been trying to move money from my Vanguard Brokerage Account Settlement Fund to Cash Plus, but gave up after two days of trying everything.
In the end, I resorted to (initiating) moving the money to my bank checking account by ACH and will then move it to Cash Plus sometime next week by ACH.
- Sun Mar 17, 2024 3:49 pm
- Forum: Investing - Theory, News & General
- Topic: Great news! No more [fixed real estate] agent commission
- Replies: 163
- Views: 15111
Re: Great news! No more [fixed real estate] agent commission
I've had realtors offer to sell my home for a 1% realtor fee.
- Sun Mar 17, 2024 1:26 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
Re: Vanguard Cash Plus Account
New here. Interested in the Vanguard Cash Plus account for parking lots of money (75k+) to sit and earn 4.7% interest, while still having the funds within a couple days access. I previously was using Discover Bank at 4.3, and while there was nothing wrong with it, decided to go for a higher rate with Wealthfront. That only lasted a week. I did not feel comfortable having my money with Wealthfront. Too many things went wrong. Seems like the company is run by a dude in his parents basement. Anyway, as I was looking at new HYSAs such as Marcus and LendingClub, I stumbled upon Vanguard’s CP. I recently transferred my Roth IRA from Schwab to Vanguard, so I like the idea of using Vanguard in multiple ways. My checking is with USAA. - How are the...
- Sat Mar 16, 2024 10:08 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
Re: Vanguard Cash Plus Account
No, just me--Individual.retiringwhen wrote: ↑Sat Mar 16, 2024 10:03 pmTaxable brokerage? Does it have different ownership (joint vs. individual?) Is it a trust account? I cannot move money from an Inherited IRA to a joint CP account, but can move from an individual brokerage account to a joint CP account.pascalwager wrote: ↑Sat Mar 16, 2024 9:29 pm I've been trying to move money from my Vanguard Brokerage Account Settlement Fund to Cash Plus, but gave up after two days of trying everything.
In the end, I resorted to (initiating) moving the money to my bank checking account by ACH and will then move it to Cash Plus sometime next week by ACH.
- Sat Mar 16, 2024 9:29 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
Re: Vanguard Cash Plus Account
I've been trying to move money from my Vanguard Brokerage Account Settlement Fund to Cash Plus, but gave up after two days of trying everything.
In the end, I resorted to (initiating) moving the money to my bank checking account by ACH and will then move it to Cash Plus sometime next week by ACH.
In the end, I resorted to (initiating) moving the money to my bank checking account by ACH and will then move it to Cash Plus sometime next week by ACH.
- Sat Mar 16, 2024 12:01 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
Re: Vanguard Cash Plus Account
New here. Interested in the Vanguard Cash Plus account for parking lots of money (75k+) to sit and earn 4.7% interest, while still having the funds within a couple days access. I previously was using Discover Bank at 4.3, and while there was nothing wrong with it, decided to go for a higher rate with Wealthfront. That only lasted a week. I did not feel comfortable having my money with Wealthfront. Too many things went wrong. Seems like the company is run by a dude in his parents basement. Anyway, as I was looking at new HYSAs such as Marcus and LendingClub, I stumbled upon Vanguard’s CP. I recently transferred my Roth IRA from Schwab to Vanguard, so I like the idea of using Vanguard in multiple ways. My checking is with USAA. - How are the...
- Thu Mar 14, 2024 6:08 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
Re: Vanguard Cash Plus Account
My personal emphasis is on providing my spending (checking) account with adequate money (pension direct-deposit) to be able to use my debit card and checkbook freely, without concern of overdrafts. Also, I want to have my credit card linked with my checking account for a quick transfer each month to pay my last CC statement balance. All of this is what I've had at my local bank for a long time. Recently, my financial situation changed, and I may begin to have more monthly unspent cash in my checking account. I recently funded my new Cash Plus account with this unspent cash and will soon move the money into the Treasury MMF. This is how I expect to use the Cash Plus account. I don't particularly want to keep my cash account at an investment...
- Thu Mar 14, 2024 1:27 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
Re: Vanguard Cash Plus Account
My personal emphasis is on providing my spending (checking) account with adequate money (pension direct-deposit) to be able to use my debit card and checkbook freely, without concern of overdrafts. Also, I want to have my credit card linked with my checking account for a quick transfer each month to pay my last CC statement balance. All of this is what I've had at my local bank for a long time. Recently, my financial situation changed, and I may begin to have more monthly unspent cash in my checking account. I recently funded my new Cash Plus account with this unspent cash and will soon move the money into the Treasury MMF. This is how I expect to use the Cash Plus account. I don't particularly want to keep my cash account at an investment ...
- Wed Mar 13, 2024 11:35 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
Re: Vanguard Cash Plus Account
1) Are the "other" checking accounts ACH'd directly from Cash Plus?Vulcan wrote: ↑Mon Mar 11, 2024 10:27 pmI never write checks or use debit card from the main checking account as a security precaution.pascalwager wrote: ↑Mon Mar 11, 2024 9:21 pm I need check-writing and a debit card, so I'll need to keep my existing bank checking account and linked, bank credit card (instantaneous transfers).
That CP makes it impossible is a nice security feature for me, not a bug.
I do have several other checking accounts with minimal balances for checks/ATM use.
2) Do you have a screen that shows all of your current cash system account totals, and even an overall system diagram?
- Wed Mar 13, 2024 11:11 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
Re: Vanguard Cash Plus Account
List of institutions where forum members report Cash Plus routing/account number pair is invalid: Treasury Direct Bank of America - some customers with both a credit card and a checking account cannot pay by ACH from another bank Comcast/Xfinity Target Red Card Internal Revenue Service (routing number not recognized by Direct Pay) Add to the list PSE&G Thanks for the addition I will add it. You are the first to report it. PSE&G is an electric and gas utility serving New Jersey correct? I can confirm PSE&G does not currently accept Vanguard Cash Plus routing/account number. PSE&G provides service in parts of NJ and NY. They may also have an alternative automatic payment credit card setting: Comcast/xfinity, for example. One ...
- Mon Mar 11, 2024 11:35 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
Re: Vanguard Cash Plus Account
I get it. I'll think about the security angle.Vulcan wrote: ↑Mon Mar 11, 2024 10:27 pmI never write checks or use debit card from the main checking account as a security precaution.pascalwager wrote: ↑Mon Mar 11, 2024 9:21 pm I need check-writing and a debit card, so I'll need to keep my existing bank checking account and linked, bank credit card (instantaneous transfers).
That CP makes it impossible is a nice security feature for me, not a bug.
I do have several other checking accounts with minimal balances for checks/ATM use.
- Mon Mar 11, 2024 9:21 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
Re: Vanguard Cash Plus Account
Why would someone put their savings into a 4.7% cash savings account when they could put it into a 5.3% MMF? I think the answer is you cannot ACH out of the brokerage account to pay bills. So Cash Plus offers a decent solution for Vanguard folks. Yes. For us, the use case for CP is as a main cash flow (checking) account: direct deposits come in and all monthly payments come out of it via ACH pulls. Previously, we used Ally for this purpose, and the APR differential between Ally Checking and Ally Savings/Vanguard MMFs would induce the urge to micromanage cash balances. With CP APR > Ally Savings and nearly as high as VMFXX, I no longer feel compelled to micromanage, while still getting attractive yield on cash. We have not encountered any b...
- Mon Mar 11, 2024 12:53 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
Re: Vanguard Cash Plus Account
Yes, confirmed, but the transfers between the two accounts are instantaneous, and the checking account includes a debit card and the ability to link with other banks, etc.pascalwager wrote: ↑Sun Mar 10, 2024 10:48 amThe 5.21% APY may be for a separate account called Performance Savings rather than checking. It's not clear to me.pascalwager wrote: ↑Sat Mar 09, 2024 7:31 pm upgrade has a 5.21% APY checking account with FDIC coverage through a satellite banks sweep mechanism. For bill pay you need to use Apple Pay or Google Pay. I don't know if that introduces additional expenses.
The 5.21% APY in the savings account requires a minimum $1,000 direct deposit in the checking account.
- Mon Mar 11, 2024 1:14 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
Re: Vanguard Cash Plus Account
Do the Vanguard MMFs have a minimum amount rule when writing a check?
- Sun Mar 10, 2024 10:48 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
Re: Vanguard Cash Plus Account
The 5.21% APY may be for a separate account called Performance Savings rather than checking. It's not clear to me.pascalwager wrote: ↑Sat Mar 09, 2024 7:31 pm upgrade has a 5.21% APY checking account with FDIC coverage through a satellite banks sweep mechanism. For bill pay you need to use Apple Pay or Google Pay. I don't know if that introduces additional expenses.
- Sun Mar 10, 2024 3:59 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
Re: Vanguard Cash Plus Account
I don't really know how Bill Pays work. My bank has a free version, but I don't use it.
Several years ago, I simply visited all of my payee websites and entered my bank checking account routing/account numbers on their payment screens. In a few cases, I needed to enter my credit card number, instead.
Using Cash Plus, I certainly would not pay for a Bill Pay function and I don't think I would need to.
Several years ago, I simply visited all of my payee websites and entered my bank checking account routing/account numbers on their payment screens. In a few cases, I needed to enter my credit card number, instead.
Using Cash Plus, I certainly would not pay for a Bill Pay function and I don't think I would need to.
- Sun Mar 10, 2024 1:26 am
- Forum: Investing - Theory, News & General
- Topic: What Role/Purpose Do Bonds Play in Your Portfolio
- Replies: 55
- Views: 5372
Re: What Role/Purpose Do Bonds Play in Your Portfolio
My bond funds may reduce the drawdowns of a 100% stock funds portfolio.
- Sun Mar 10, 2024 12:17 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
Re: Vanguard Cash Plus Account
Vanguard writes: "Is this part of my settlement fund? No. The settlement fund in your Vanguard Brokerage Account holds money for making trades. It can be a good place for cash you're waiting to invest, since money moves out of the settlement fund to cover investment purchases. The Vanguard Cash Plus Account is different. It's designed as an alternative to your savings account—a place where you hold money you're intentionally saving." Why would someone put their savings into a 4.7% cash savings account when they could put it into a 5.3% MMF? I guess for the FDIC insurance, but Vanguard seems to be sending a mixed-message by including the MMFs in the savings account. Still, Vanguard seems to consider the MMFs to be mere investment t...
- Sat Mar 09, 2024 7:31 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
Re: Vanguard Cash Plus Account
upgrade has a 5.21% APY checking account with FDIC coverage through a satellite banks sweep mechanism. For bill pay you need to use Apple Pay or Google Pay. I don't know if that introduces additional expenses.
- Sat Mar 09, 2024 7:27 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
Re: Vanguard Cash Plus Account
Unfortunately, Comcast is my internet provider and I also pay my Federal taxes online. I suppose the routing number recognition problem will finally be resolved--maybe one payee at a time, though.stan1 wrote: ↑Sat Mar 09, 2024 6:24 pmThe routing number problems are only associated with a few billers: Xfinity/Comcast, B of A credit cards, US Treasury, and Target Red Card. No one has reported any others.pascalwager wrote: ↑Sat Mar 09, 2024 12:43 pm If the routing number problems are resolved, I may reconsider Cash Plus.
- Sat Mar 09, 2024 7:21 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
Re: Vanguard Cash Plus Account
Yes, I've been doing that the last few years, but was afraid to test the CC function because someone else, not on the trips, also uses my card.3000 wrote: ↑Sat Mar 09, 2024 6:44 pmCan you alert them to your travel on their website? That might help.pascalwager wrote: ↑Sat Mar 09, 2024 1:13 am When I travel in the U.S., I like to have both a debit and credit card in case the credit card gets locked; so, I'll probably keep my present bank arrangements and avoid Cash Plus and it's enticing 4.7% interest. In the past, my credit card got locked every time I left my home area. Now I don't even try to use it away from home.
So I'll keep my no-interest checking account and it's direct-deposit, bill-pay, check-writing and connected credit and debit cards.
- Sat Mar 09, 2024 12:43 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
Re: Vanguard Cash Plus Account
When I travel in the U.S., I like to have both a debit and credit card in case the credit card gets locked; so, I'll probably keep my present bank arrangements and avoid Cash Plus and it's enticing 4.7% interest. In the past, my credit card got locked every time I left my home area. Now I don't even try to use it away from home. So I'll keep my no-interest checking account and it's direct-deposit, bill-pay, check-writing and connected credit and debit cards. My bank had a travel declaration in the past that I wasn't aware of and that may have caused the locking. Recently they eliminated the travel declaration, and that might eliminate my problem. I need to pay more attention to the bank website info. A debit card allows avoiding high proce...
- Sat Mar 09, 2024 1:13 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
Re: Vanguard Cash Plus Account
When I travel in the U.S., I like to have both a debit and credit card in case the credit card gets locked; so, I'll probably keep my present bank arrangements and avoid Cash Plus and it's enticing 4.7% interest. In the past, my credit card got locked every time I left my home area. Now I don't even try to use it away from home.
So I'll keep my no-interest checking account and it's direct-deposit, bill-pay, check-writing and connected credit and debit cards.
So I'll keep my no-interest checking account and it's direct-deposit, bill-pay, check-writing and connected credit and debit cards.
- Sat Mar 09, 2024 12:29 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account
- Replies: 458
- Views: 61960
Re: Vanguard Cash Plus Account
All you get with Cash Plus is a routing number, account number, and decent interest. Compare those abilities with your Fidelity account.manlymatt83 wrote: ↑Fri Mar 08, 2024 7:33 pm So correct me if I’m wrong, but is the best way to do auto investing in the brokerage account still to just pull from an external bank? Is there actually any realistic use for the cash plus account at this point other than the 4.7% APY if I already have my paycheck going into a Fidelity Brokerage @ 5%?
- Fri Mar 08, 2024 12:40 pm
- Forum: Investing - Theory, News & General
- Topic: Emerging Markets Stocks have been a complete disaster
- Replies: 170
- Views: 15854
Re: Emerging Markets Stocks have been a complete disaster
Using EM as a bond?
The Stdev of VEIEX is 22.05% since 1995 with a 62.7% max drawdown. It's really a very volatile stock--not at all bond-like.
The Stdev of VEIEX is 22.05% since 1995 with a 62.7% max drawdown. It's really a very volatile stock--not at all bond-like.
- Fri Mar 08, 2024 12:27 pm
- Forum: Investing - Theory, News & General
- Topic: Age 60+ AND retired? What's your asset allocation? What type of bonds/Fixed Inc instruments do you use?
- Replies: 57
- Views: 8538
Re: Age 60+ AND retired? What's your asset allocation? What type of bonds/Fixed Inc instruments do you use?
Retired
Stocks/Bonds 60/40
Bonds: 50% VFSUX / 48% LTPZ / 2% SCHP
The bonds are duration-matched. I gradually reduce LTPZ and increase SCHP as time passes. VFSUX is a fixed 50%.
I wanted to go with 100% TIPS, but VFSUX was the most appropriate bond fund (short-term credit risk) in one account.
Stocks/Bonds 60/40
Bonds: 50% VFSUX / 48% LTPZ / 2% SCHP
The bonds are duration-matched. I gradually reduce LTPZ and increase SCHP as time passes. VFSUX is a fixed 50%.
I wanted to go with 100% TIPS, but VFSUX was the most appropriate bond fund (short-term credit risk) in one account.
- Fri Mar 08, 2024 12:01 pm
- Forum: Investing - Theory, News & General
- Topic: Has investing conservatively ever paid off over a career?
- Replies: 261
- Views: 32615
Re: Has investing conservatively ever paid off over a career?
I was 0/100 (T-bills) for 15 years before I was introduced to stocks and bonds investing at age 53. I'm in retirement now with a good-sized portfolio and no financial problems.
- Fri Mar 08, 2024 11:23 am
- Forum: Investing - Theory, News & General
- Topic: Maximum risk tolerance
- Replies: 45
- Views: 3906
Re: Maximum risk tolerance
Javier Estrada studied a reverse glidepath until retirement where it again reversed during retirement and got superior results. For example, starting at 20/80 when young and reaching 80/20 at retirement.
- Tue Mar 05, 2024 3:35 am
- Forum: Investing - Theory, News & General
- Topic: 90/10 stocks/bonds vs 100% stocks?
- Replies: 44
- Views: 5612
Re: 90/10 stocks/bonds vs 100% stocks?
Maybe you should just go 100% stocks and keep six months of EF cash on the side.
- Tue Mar 05, 2024 12:57 am
- Forum: Investing - Theory, News & General
- Topic: Emerging Markets Stocks have been a complete disaster
- Replies: 170
- Views: 15854
Re: Emerging Markets Stocks have been a complete disaster
EM was a bet that did not pay off because investors did not understand that rule of law underpins all valuations and the bulk of EM are not rule of law countries. The investable world is the Anglosphere, western Europe, Israel in the middle east, Japan, Korea and a few others. Most of the rest of the world is not investable since you are at risk that your assets will be confiscated. Though of course you can be lucky if you get in and out at the right times. Where did you get the facts. You will be surprised by which countries have a good and decent rule of law. The USA is not exactly on top. See.. https://www.theglobaleconomy.com/rankings/wb_ruleoflaw/ Do you think that theglobaleconomy.com is really a reputable source? Really? There is a ...
- Tue Mar 05, 2024 12:51 am
- Forum: Investing - Theory, News & General
- Topic: Emerging Markets Stocks have been a complete disaster
- Replies: 170
- Views: 15854
Re: Emerging Markets Stocks have been a complete disaster
EM has a lower correlation to the market, so I don't expect it to outperform. I include it only for diversification, and I'm not disappointed by it's long-term underperformance.
- Mon Mar 04, 2024 8:25 pm
- Forum: Investing - Theory, News & General
- Topic: Emerging Markets Stocks have been a complete disaster
- Replies: 170
- Views: 15854
Re: Emerging Markets Stocks have been a complete disaster
Seems like market timing.Bill Bernstein wrote: ↑Mon Mar 04, 2024 7:30 pm "Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell."
--John Templeton
- Sun Mar 03, 2024 12:27 am
- Forum: Investing - Theory, News & General
- Topic: High Yield Term Bond Ladder Crazy or Genius ?
- Replies: 52
- Views: 5576
Re: High Yield Term Bond Ladder Crazy or Genius ?
I understand the risk of default and all, but the diversification and fund management should help keeping these to a reasonable amount. Diversification and fund management are things that you don't get with a HY individual bond ladder. As long as you're not doing that, then have a HY allocation via a bond fund if you want one. As long as you're aware of how it's likely to behave in various market conditions. Also note that IBHF is an ETF that follows an index. I don't know if I would index HY. Myself, I use VWEHX. Very very little rated under B (and thus a lower average coupon and YTM than IBHF, but not too shabby at all). Lower expense ratio than IBHF. Active management. Some equity-oriented investors use a 50/50 HY/Treasury combo as thei...
- Sat Mar 02, 2024 2:26 pm
- Forum: Investing - Theory, News & General
- Topic: How to prove that I am not losing money with bond funds?
- Replies: 118
- Views: 14641
Re: How to prove that I am not losing money with bond funds?
Bond funds often/always include a statement saying that you can lose money.
I use bonds not to preclude losses, but rather to limit losses compared to stocks, and still present an opportunity for gains.
If your bonds duration is too short for your investment horizon, you may "lose" to reinvestment risk. If too long, you may lose to price risk.
I use bonds not to preclude losses, but rather to limit losses compared to stocks, and still present an opportunity for gains.
If your bonds duration is too short for your investment horizon, you may "lose" to reinvestment risk. If too long, you may lose to price risk.
- Fri Mar 01, 2024 7:05 pm
- Forum: Investing - Theory, News & General
- Topic: Are We in a Stock Market Bubble? (Ray Dalio)
- Replies: 132
- Views: 15405
Re: Are We in a Stock Market Bubble? (Ray Dalio)
For me, as a buy-and-hold, passive investor--and not a market-timer--the question is irrelevant.
- Fri Mar 01, 2024 6:55 pm
- Forum: Investing - Theory, News & General
- Topic: Charles Ellis' suggested portfolios by age
- Replies: 61
- Views: 25059
Re: Charles Ellis' suggested portfolios by age
Ellis has been 100% stocks since Day 1 at $0.00.Charles Joseph wrote: ↑Fri Mar 01, 2024 1:03 pmI'm sure Charles Ellis's portfolio is many 10x that of mine, and as such his strategy would not apply to me.mangorunner wrote: ↑Thu Feb 29, 2024 4:44 pm 2021 Charlie Ellis update:
"I am 84 and own no bonds today—and certainly not 84% in bonds. I have never owned bonds and never expect to."
Except from "No Bonds for Me", Charles D. Ellis, Oct 30, 2021: https://humbledollar.com/2021/10/no-bonds-for-me/
- Thu Feb 29, 2024 12:40 am
- Forum: Investing - Theory, News & General
- Topic: Do cap-weighted funds strictly align with BH philosophy?
- Replies: 118
- Views: 8903
Re: Do cap-weighted funds strictly align with BH philosophy?
So are you saying we should be equal weight all 500 stocks in the S&P 500 (0.2% per stock) and always selling the winners to invest in the laggards to maintain that weighting so you never own more than 0.2% of the next Apple? Just trying to understand the mechanics of what you are suggesting. RPS begins at 0.2% per company at the beginning of each financial quarter and then rebalances at the end of that quarter back to 0.2% per company. Yes, RSP the S&P 500 Equal weight ETF, but my point how does anything ever become the needle or next Apple if it isn't allowed to grow. Their customers provide the growth by purchasing products. We're just trading shares with each other. The stock market is only a mechanism to enable the IPO. I was ...
- Wed Feb 28, 2024 7:53 pm
- Forum: Investing - Theory, News & General
- Topic: Do cap-weighted funds strictly align with BH philosophy?
- Replies: 118
- Views: 8903
Re: Do cap-weighted funds strictly align with BH philosophy?
+1nisiprius wrote: ↑Wed Feb 28, 2024 3:08 pmThank you! That's what I was trying to say. That's perfect.
- Wed Feb 28, 2024 7:48 pm
- Forum: Investing - Theory, News & General
- Topic: Do cap-weighted funds strictly align with BH philosophy?
- Replies: 118
- Views: 8903
Re: Do cap-weighted funds strictly align with BH philosophy?
A market cap fund is about as far away from stock "picking" as one can get... When 10 companies are weighted at 31% of 500, you are playing favorites. You are invested in frontrunners. You are choosing current winners and have only .03% invested in a company that could be the next Apple, so when it does soar, you won't have been invested in it properly until *after* it does. This, in essence, goes against BH philosophy. So are you saying we should be equal weight all 500 stocks in the S&P 500 (0.2% per stock) and always selling the winners to invest in the laggards to maintain that weighting so you never own more than 0.2% of the next Apple? Just trying to understand the mechanics of what you are suggesting. RPS begins at 0.2...
- Wed Feb 28, 2024 7:42 pm
- Forum: Investing - Theory, News & General
- Topic: Do cap-weighted funds strictly align with BH philosophy?
- Replies: 118
- Views: 8903
Re: Do cap-weighted funds strictly align with BH philosophy?
If anyone is "playing favorites", it's the Wall Street stock pickers that determine the market proportions in the first place.
- Wed Feb 28, 2024 7:33 pm
- Forum: Investing - Theory, News & General
- Topic: Do cap-weighted funds strictly align with BH philosophy?
- Replies: 118
- Views: 8903
Re: Do cap-weighted funds strictly align with BH philosophy?
A market cap fund is about as far away from stock "picking" as one can get... When 10 companies are weighted at 31% of 500, you are playing favorites. You are invested in frontrunners. You are choosing current winners and have only .03% invested in a company that could be the next Apple, so when it does soar, you won't have been invested in it properly until *after* it does. This, in essence, goes against BH philosophy. So are you saying we should be equal weight all 500 stocks in the S&P 500 (0.2% per stock) and always selling the winners to invest in the laggards to maintain that weighting so you never own more than 0.2% of the next Apple? Just trying to understand the mechanics of what you are suggesting. RPS begins at 0.2...
- Wed Feb 28, 2024 1:01 am
- Forum: Investing - Theory, News & General
- Topic: Do cap-weighted funds strictly align with BH philosophy?
- Replies: 118
- Views: 8903
Re: Do cap-weighted funds strictly align with BH philosophy?
In VTI, Microsoft has largest market value.
- Mon Feb 26, 2024 9:55 pm
- Forum: Investing - Theory, News & General
- Topic: Newbie friendly NPR article summarizing Swensen and Boglehead approach
- Replies: 32
- Views: 4288
Re: Newbie friendly NPR article summarizing Swensen and Boglehead approach
The portfolio put forth is perfectly fine including 20% REITs. If someone actually stuck with it and contributed consistent sums on a regular basis with low-cost index funds and re-balanced as needed, they'd likely be at the top of their "class" in relation to their peers chasing cryptocurrency, individual tech stocks after a run-up, and so on. Maybe even top of their class compared to some Bogleheads that like to tinker too much after every market conditions presents itself. 30% in U.S. stocks. 15% in developed country stocks. 5% in emerging market stocks. 20% in domestic U.S. real estate. 15% in U.S. Treasury bonds. 15% U.S. Treasury Inflation Protected Securities. That is likely true. Personally I don't like implications that ...
- Sun Feb 25, 2024 5:30 pm
- Forum: Investing - Theory, News & General
- Topic: How to balance VTSAX?
- Replies: 22
- Views: 3001
Re: How to balance VTSAX?
If 32% tech doesnt concern people with VTI, then why not double down on tech and just replace VTI with Vanguard Growth and go for 58% tech in your holdings?? Same reason I don’t tilt away from tech. I’m not as smart as the market. In fairness, all of us who don't have a world market-cap weight (which would effectively be less tech-heavy than VTI) apparently believe we're "smarter than the market." And many of us are, for two reasons. If you live in the US, then foreign stocks have more risk than US stocks for you because of currency fluctuations; conversely, for European investors, US stocks are riskier than European stocks. Don't the currency fluctuations average out to zero over time? if you hold foreign stocks in an IRA/401(k)...
- Sun Feb 25, 2024 12:31 pm
- Forum: Investing - Theory, News & General
- Topic: How to balance VTSAX?
- Replies: 22
- Views: 3001
Re: How to balance VTSAX?
Over the last few years VTSAX has been considered by Morningstar to be a Large Blend fund, but last year that has shifted to a Large Growth. Is there a suggested fund that could be added to turn VTSAX into a more balanced fund within a tax advantage account? Some of the best options I found through VG are the following: VVIAX, VEIRX, VHYAX Does one appear to be a better option than the others? A fund outside of VG could be used too if there are any other recommendations. And for simplicity sake, assume there is $100 in the VTSAX now. What is the best way to split this $100 between VTSAX and the Value Fund of choice to roughly achieve something closer to balanced ? You can balance with a value fund for more diversity. In 24 years, Vang Valu...
- Fri Feb 23, 2024 12:14 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard Digital Advisor has "A proven track record with active"
- Replies: 16
- Views: 2242
Re: Vanguard Digital Advisor has "A proven track record with active"
I was curious about the active funds for this new option. Here they are: VHCAX, Capital Opportunity Fund Admiral Shares VADGX, Advice Select Dividend Growth Fund VZICX, International Core Stock Fund Admiral Shares VAGVX, Advice Select Global Value Fund VAIGX, Advice Select International Growth Fund VCOBX, Core Bond Fund Admiral Shares Source https://investor.vanguard.com/advice/robo-advisor#investment-options I then went through the steps to see what AA and funds it would recommend to me for my Roth IRA of $230,500. I'm 68, and based on how I answered the risk questionnaire, they suggested a 45/55 AA with the following funds: VTI $30,982.04 Vanguard Total Stock Market ETF BNDX $37,866.93 Vanguard Total International Bond ETF VAIGX $7,487.3...
- Thu Feb 22, 2024 10:39 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard Digital Advisor has "A proven track record with active"
- Replies: 16
- Views: 2242
Re: Vanguard Digital Advisor has "A proven track record with active"
I was curious about the active funds for this new option. Here they are: VHCAX, Capital Opportunity Fund Admiral Shares VADGX, Advice Select Dividend Growth Fund VZICX, International Core Stock Fund Admiral Shares VAGVX, Advice Select Global Value Fund VAIGX, Advice Select International Growth Fund VCOBX, Core Bond Fund Admiral Shares Source https://investor.vanguard.com/advice/robo-advisor#investment-options I then went through the steps to see what AA and funds it would recommend to me for my Roth IRA of $230,500. I'm 68, and based on how I answered the risk questionnaire, they suggested a 45/55 AA with the following funds: VTI $30,982.04 Vanguard Total Stock Market ETF BNDX $37,866.93 Vanguard Total International Bond ETF VAIGX $7,487.3...
- Thu Feb 22, 2024 11:59 am
- Forum: Investing - Theory, News & General
- Topic: Bill Sharpe's preferred portfolio
- Replies: 681
- Views: 156894
Re: Bill Sharpe's preferred portfolio
The "starting point" is irrelevant. The problem is to choose an asset allocation appropriate for one's situation. Sharpe does recognize that one's personal situation and not global market weight is what matters with respect to TIPS as he leaves TIPS out of the market cap allocation and just says "TIPS to taste". I think he views TIPS as a separate portfolio to deliver a fixed real return over some time period to align with some real liabilities as separate from a risk portfolio. The ability to use the WBS as a "base" (Sharpe's term in an interview) can be relevant, if you don't need to delete any of the 15 (or more) asset classes. Think of the ease of using a hypothetical, future Vanguard WBS etf and only need...
- Wed Feb 21, 2024 12:51 am
- Forum: Investing - Theory, News & General
- Topic: Newbie friendly NPR article summarizing Swensen and Boglehead approach
- Replies: 32
- Views: 4288
Re: Newbie friendly NPR article summarizing Swensen and Boglehead approach
Swensen has an important chapter on "non-core" asset classes that argues effectively against holding corporate bonds and foreign bonds (and some other assets).
I don't like his REIT sector bet, but he said that RE is an equity and provides inflation support. I suspect that the high 20% AA helped him keep to his desired 30% ceiling on US Total Stock Market. His range rule is 5% to 30% for any one asset class.
I don't like his REIT sector bet, but he said that RE is an equity and provides inflation support. I suspect that the high 20% AA helped him keep to his desired 30% ceiling on US Total Stock Market. His range rule is 5% to 30% for any one asset class.