Search found 196 matches

by Gauntlet
Mon Jan 29, 2024 12:11 pm
Forum: Personal Investments
Topic: Total Bond (BND) vs Intermediate-Term Index (BIV)
Replies: 9
Views: 1354

Re: Total Bond (BND) vs Intermediate-Term Index (BIV)

OP, I had this debate with myself several years ago. I have owned both bond funds for many years. My conclusion is that it doesn't matter much which one you use. The returns of each fund have been very similar. Like you said, BIV and BND have similar interest rate risk (duration). I suppose BIV has slightly more credit risk because it has more corporate bonds than BND. BND has mortgage backed securities and BIV does not. I favor BIV because it does not include mortgage backed securities.
by Gauntlet
Wed Aug 23, 2023 7:28 am
Forum: Personal Investments
Topic: The bond conundrum: Taxable vs retirement
Replies: 15
Views: 1672

Re: The bond conundrum: Taxable vs retirement

OP, there are many different ways to locate your assets. What I decided to do years ago is to hold bonds in both my retirement and taxable accounts and stop viewing my money in buckets. My money is no longer "retirement" money, "business" money, or "vacation" money etc. Money is fungible and my money is just money. I mirror my desired asset allocation in my 401k, Roth IRA, and taxable brokerage (for me that is about 60% stocks and 40% bonds). This is likely not the most tax efficient but it works for me. The bonds I use in my brokerage are short-term so if I did have an emergency I could sell them and then rebalance later. I am fortunate to have very good investment options in all my accounts.
by Gauntlet
Mon Jan 02, 2023 2:38 pm
Forum: Personal Finance (Not Investing)
Topic: Max 2023 TSP contribution?
Replies: 13
Views: 894

Re: Max 2023 TSP contribution?

The max is the total. Even if you did some Roth and some traditional, the total maximum amount is $22,500.
by Gauntlet
Sat Dec 10, 2022 7:22 am
Forum: Personal Investments
Topic: Do You Diversify Bond Portion of Three-Fund Portfolio? (Bond Health Check)
Replies: 21
Views: 1593

Re: Do You Diversify Bond Portion of Three-Fund Portfolio? (Bond Health Check)

OP, I think that is perfectly fine bond allocation (maybe because I do something similar 8-) . My personal bond allocation is about 50% G and 50% total bond. The I Bonds that you own are basically a better versions of TIPs. I would buy more IBonds before I added an additional fund to your portfolio.
by Gauntlet
Thu Oct 20, 2022 2:17 pm
Forum: Personal Investments
Topic: Fixed Income Placement Dilema - High Networth Situation
Replies: 33
Views: 3980

Re: Fixed Income Placement Dilema - High Networth Situation

How about the Vanguard short-term bond fund? It is about 2/3 treasuries and 1/3 corporate. Compared with BND, it has less interest rate risk with about the same yield and you could hold it forever.

The thing I learned from the last year is that when I enter retirement I will shorten the duration of my fixed income.
by Gauntlet
Thu Oct 13, 2022 9:01 am
Forum: Personal Investments
Topic: Another sad day for bonds
Replies: 138
Views: 10611

Re: Another sad day for bonds

Another way to look at it is that the future of BND looks much better than it did 9 months ago. You are now getting about a 4% yield compared to 1.5%. That is the irony in all this bond craziness. Half my fixed income is in intermediate-term bonds and I feel better about that portion of my portfolio now than I did. Although, the haircut does hurt.
by Gauntlet
Tue Aug 16, 2022 6:59 am
Forum: Personal Investments
Topic: Asset Allocation for College Savings
Replies: 29
Views: 2946

Re: Asset Allocation for College Savings

OP, I suggest incorporating college savings into your overall portfolio. This is what I have done. I have a 60/40 portfolio. The portfolio includes 401ks, IRAs, taxable, and 529s. It is all one big pot of money. When it comes time to pay for college I plan to use the money in the 529 first, then taxable account if needed.
by Gauntlet
Fri May 27, 2022 7:58 am
Forum: Personal Investments
Topic: 60/40 [Asset allocation]
Replies: 41
Views: 7028

Re: 60/40 [Asset allocation]

I'm a 60/40 person. The irony is that 6 months ago my 60/40 was not looking good (dead?). Sure my portfolio was at an all time high but stocks had gone up and up for 10 years and my bonds were yielding a low 1.25%. Now? Well, 60/40 is looking better. Stocks have come back down to earth and my bonds are yielding 3.5%. Personally, I feel better about the old 60/40 today than I did in 2022.
by Gauntlet
Tue Mar 22, 2022 8:20 am
Forum: Investing - Theory, News & General
Topic: The Continued Success of 60/40
Replies: 36
Views: 4737

Re: The Continued Success of 60/40

So if you are worried about 60/40 setting a new historic low, then you have two main types of choices. You could try to take more risk. Or, you could change your work-income/retirement-spending ratio, either by planning to work more, spending less in retirement, or both.

I believe there is a third option: increase ones savings rate. This is the option I have made with my 60/40 portfolio. This option is not easy and I realize that some families can't do it but it is the least riskiest option to meet one's financial goals in my opinion.
by Gauntlet
Fri Feb 18, 2022 7:46 am
Forum: Investing - Theory, News & General
Topic: Anyone use a multi-Asset Allocation strategy?
Replies: 16
Views: 1385

Re: Anyone use a multi-Asset Allocation strategy?

What you basically are describing is a portfolio of 80% equities 20% fixed income that is tilted to small cap value. If this is what you want maybe just go with that. You are just mentally dividing up your portfolio into smaller parts. Money is fungible. I have a friend that thinks he is 100% in equities but he also has a lot of cash. He is probably like 80/20. See what I mean?
by Gauntlet
Thu Dec 17, 2020 11:58 am
Forum: Investing - Theory, News & General
Topic: Bitcoin @ 23K, why am I anti-Bitcoin?
Replies: 404
Views: 26088

Re: Bitcoin @ 23K, why am I anti-Bitcoin?

bg5 wrote: Thu Dec 17, 2020 11:12 am Indexing is gambling....there is no guarantee in anything.....look at Japan

Whether you invest in Bitcoin or Indexes its all the same thing.....dont fool yourself.


This is not the correct way to look at it.

gambling = poker, black jack, powerball
speculating = gold, silver, currencies, art
investing = stocks, bonds, CDs

Folks should feel free to put their money where they want but to say investing in the stock market is the same as purchasing bitcoin is wrong.
by Gauntlet
Wed Aug 28, 2019 8:52 am
Forum: Personal Investments
Topic: VTIAX International fund - should I give up on it?
Replies: 297
Views: 44220

Re: VTIAX International fund - should I give up on it?

The great thing about diversification is that it works. The bad thing about diversification is that it works. :D
by Gauntlet
Fri Mar 22, 2019 8:16 am
Forum: Investing - Theory, News & General
Topic: Finance Books sequence
Replies: 14
Views: 1374

Re: Finance Books sequence

"The Four Pillars of Investing" by William Bernstein is the best finance book I have read. All the other books people listed are also good.
by Gauntlet
Mon Oct 01, 2018 8:52 am
Forum: Investing - Theory, News & General
Topic: Should we stay in Crazytown because there's no where to run?
Replies: 148
Views: 22401

Re: Should we stay in Crazytown because there's no where to run?

I hold a diverse portfolio of domestic stocks, international stocks, domestic bonds, and treasuries. While domestic stocks have had a great year, my other holdings have not. In fact, my portfolio is not up my much this year. I guess my point is that if you are diversified things are not looking like crazy town, just a typical year.
by Gauntlet
Tue Aug 28, 2018 9:25 am
Forum: Personal Finance (Not Investing)
Topic: TSP Max Paycheck % contribution
Replies: 8
Views: 1035

Re: TSP Max Paycheck % contribution

To my knowledge, there is no maximum % of paycheck that can be contributed to the TSP. They removed that rule years ago. The only maximum is the federal tax limit of $18,500 per year.
by Gauntlet
Tue Aug 07, 2018 10:41 am
Forum: Investing - Theory, News & General
Topic: "Age in Bonds" fails almost everyone
Replies: 217
Views: 33761

Re: "Age in Bonds" fails almost everyone

For most investors, people in their 20s starting at zero dollars, the first 10-15 years of one's allocation doesn't matter much. During this first 1/3 of one's investing timeline, what matters is savings rate. In another words, the first 1/3 of all these graphs shown over and over doesn't matter. What matters is your allocation for the last 2/3rds of time. During this time, "age in bonds" and "expert allocations" are much closer together anyway. I think this thread is making a mountain out of a mole hill. Anyone going 50% bonds and 50% stocks form day one to death would be fine.
by Gauntlet
Fri Jun 01, 2018 6:51 am
Forum: Investing - Theory, News & General
Topic: Investment money is "Fungible"
Replies: 82
Views: 8136

Re: Investment money is "Fungible"

Although, the concept of money being fungible makes total logical sense to me, I still can't stop having a few buckets. My kids' college and emergency savings are in different buckets than the rest of my portfolio. Mentally I just can't combine them.
by Gauntlet
Tue May 22, 2018 8:15 am
Forum: Personal Investments
Topic: Total Bond Market
Replies: 12
Views: 2620

Re: Total Bond Market

OP, the pro is what all good short or intermediate-term bond funds provide to a portfolio. When needed, total bond market fund will provide your portfolio stability. If you were buying TBM in 2017 then I don't see any reason to stop buying it now. You are getting a better yield now than you did last year. Interest rate risk has finally showed up but it is not that bad. I own the intermediate term bond fund which is down about 3.5% so far this year but the yield has gone up to 3.5%.
by Gauntlet
Thu May 10, 2018 8:18 am
Forum: Investing - Theory, News & General
Topic: Why International again?
Replies: 224
Views: 43948

Re: Why International again?

The inception date of Vanguard Total Stock U.S. Stock Market Index Fund ( VTSMX ) was 4/27/1992. The inception date of Vanguard Total International Stock Index Fund ( VGTSX ) was 4/29/1996. Per Morningstar , as of 5/8/2018, if you had invested $10,000 in both funds on 4/29/1996, you would currently have $61,948 in your Total Stock U.S. Stock Market Index Fund, which would be more than double as much as the $29,654 in your Total International Stock Index Fund. Of course, past performance does not indicate future performance. https://i.imgur.com/AploH87.png The problem with this debate is that facts don't help. One person can look at this chart and say, "The US has done better in the past and therefore is likely to do better in the futu...
by Gauntlet
Wed May 09, 2018 9:28 am
Forum: Investing - Theory, News & General
Topic: Why International again?
Replies: 224
Views: 43948

Re: Why International again?

By adding international diversification an investor gets an additional 6,000 companies including great companies like Samsung and Toyota, and companies in economies that will likely be the largest in the world during this century (China and India). Not to mention that adding international diversification has become very inexpensive and convenient. Why fight it? Gauntlet, What do you need the additional 6,000 companies for? You're highly diversified if you invest in the U.S. I would argue that if I only owned U.S. companies that I am not "highly" diversified because I would be missing half of the world's companies. As is often said on this board, there are many roads to Dublin and one would probably be fine investing in nothing bu...
by Gauntlet
Wed May 09, 2018 8:10 am
Forum: Investing - Theory, News & General
Topic: Why International again?
Replies: 224
Views: 43948

Re: Why International again?

By adding international diversification an investor gets an additional 6,000 companies including great companies like Samsung and Toyota, and companies in economies that will likely be the largest in the world during this century (China and India). Not to mention that adding international diversification has become very inexpensive and convenient. Why fight it?
by Gauntlet
Fri Jan 12, 2018 12:02 pm
Forum: Personal Investments
Topic: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??
Replies: 70
Views: 11515

Re: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??

Since we are currently in a bull market that has lasted for 9 years, I suppose we will have more and more threads and posts of people that are 100% stocks. I think it is a bad idea. As an aside, I work with several people that have never lived through a bear market market and are bragging about their 401k accounts. No rocket science statement here but at some point the market will go down. It could go down by a lot and stay there. I lived through 2000-2002 and 2007-2009. I for one would not have made it without having some safe bonds to lean on and to draw from to buy stocks on the cheap.
by Gauntlet
Thu Dec 28, 2017 12:34 pm
Forum: Personal Investments
Topic: Affect of Rising Interest Rates on Vanguard Total Bond Index
Replies: 43
Views: 10775

Re: Affect of Rising Interest Rates on Vanguard Total Bond Index

Copernicus wrote: Tue Dec 26, 2017 7:51 pm nisiprius,
Thank you for the amazing clarity and detailed explanation of the hidden facts! Always a pleasure to lean from your posts! Happy New Year to you, and all!

With the stock market rise, the allocations made couple of years ago are now out-of-whack. I wonder whether members are now making rebalancing adjustments to the portfolio to buy more bonds, in spite of the rising rates?
For me the answer is a resounding yes. In fact, my portfolio has grown so much that I am thinking about making a permanent allocation change towards an increased percentage in fixed income.
by Gauntlet
Tue Dec 05, 2017 1:49 pm
Forum: Personal Investments
Topic: Asset allocation across accounts: Twist?
Replies: 23
Views: 2722

Re: Asset allocation across accounts: Twist?

Now the question, do you account for taxes at all in the relative valuation of your taxable and tax-favored locations? That is to say, if you are systematically locating one asset (stocks) in taxable and another (bonds) in tax-favored, is your AA really what you think it is? This is the reason I have my 401k money have the same allocation as my roth ira and taxable money. I still look at all my accounts as one portfolio but since some of the money in my 401k is the governments (taxes) it doesn't seem right to pretend it is all mine. For example, if I want my overall portfolio to be 50/50 and I have 50k bonds in my 40k and 50k stocks in my roth ira, am I really 50/50? I would argue no because some of the 50k bonds is owed to the government....
by Gauntlet
Mon Oct 23, 2017 8:35 am
Forum: Personal Investments
Topic: Is it ok to have 100% stocks, 15 years+
Replies: 97
Views: 14582

Re: Is it ok to have 100% stocks, 15 years+

OP, in my opinion, if you did not experience the bear of 2009, which I believe you are alluding to, then I don't believe that you should be 100% stocks. We have had a 9-year-bull market which makes it easy to think that the party will last forever. I am about 20 years from retirement and I have 65% equity. Of course, I lived through 2000-2002 and 2008-2009.

As an aside, and this could totally in my head, but I feel like during the last 2 years I have seen more and more people going very heavy in stocks. I can't help but think it is because people have forgotten 2009 or were not invested at that time. Also, I suppose anyone in their 20s has never experienced a bear market.
by Gauntlet
Thu Apr 20, 2017 7:41 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe says "Goodbye."
Replies: 445
Views: 79745

Re: Larry Swedroe says "Goodby."

Larry, I would like to add another huge thank you. The academic approach to investing you brought to this forum was always informative. You changed the way I thought about fixed-income for the better. You will be missed but fortunately for me, I read your books.
by Gauntlet
Tue Apr 04, 2017 1:55 pm
Forum: Personal Investments
Topic: Is anyone decreasing % of bonds this year?
Replies: 91
Views: 11646

Re: Is anyone decreasing % of bonds this year?

I guess I'm going against the grain a little here but after the 8-year-bull market, it turns out I'm making great progress on my retirement number. The result is that I don't need to take as much risk to reach my retirement goal and I will therefore increase my bond allocation this year. I have a plan and I stick with it but at some points along the way a retirement saver needs to step back and see how they are doing. If we have fallen behind, maybe we need more equities or save more and if we find ourselves getting ahead of our goal then the opposite.
by Gauntlet
Fri Mar 31, 2017 7:56 am
Forum: Investing - Theory, News & General
Topic: EE bonds vs F or G Fund vs Total Bond
Replies: 57
Views: 6558

Re: EE bonds vs F or G Fund vs Total Bond

In my opinion, you have to really love savings bonds to stick with them. I had a treasury direct account years ago and it just couldn't keep up with my other accounts (TSP etc.) and became a smaller and smaller percentage of my overall portfolio. When my savings bonds holding became less than 3% of my portfolio, I sold them all (one less account to deal with) and took the tax hit. I guess what I'm trying to say is that your TSP will likely be your main savings vehicle and the the G fund your main fixed-income. Whether you invest in EE bonds or not probably won't make much difference in the long run.
by Gauntlet
Tue Feb 21, 2017 7:24 am
Forum: Personal Investments
Topic: VBILX vs VBTLX [Vanguard Intermediate-Term vs. Total Bond]
Replies: 49
Views: 19726

Re: VBILX vs VBTLX [Vanguard Intermediate-Term vs. Total Bond]

One more opinion here. I agree that it doesn't matter much. Personally, I like VBILX. Mainly, because I don't want to own Mortgage-backed or long-term bonds. I like to keep my fixed-income as simple as possible and I don't completely understand how asset-backed bonds work. How they are pooled together, when they can be paid off early, etc.? And like many here, I don't like taking much risk with my fixed income so I don't like long-term bonds. Having said that, when you look at the past results, total bond as done great in all kinds of market swings.
by Gauntlet
Wed Feb 15, 2017 8:05 am
Forum: Investing - Theory, News & General
Topic: Tsp contribution question (contribute bi-monthly)
Replies: 12
Views: 2127

Re: Tsp contribution question (contribute bi-monthly)

I think you are over thinking it. Personally, if I wanted my TSP allocation to be 15% I fund, 15% S fund, 25% G fund, and 45% C fund than I would contribute (add new money) using the same percentages: 15% I fund, 15% S fund, 25% G fund, and 45% C fund. This would result in less need to re balance.
by Gauntlet
Thu Jan 26, 2017 7:58 am
Forum: Investing - Theory, News & General
Topic: TSP?
Replies: 13
Views: 2416

Re: TSP?

The G fund is a bond fund and in my opinion should be considered a bond in a portfolio. According to TSP.gov, the G Fund invests exclusively in a nonmarketable short-term U.S. Treasury security that is specially issued to the TSP. The earnings consist entirely of interest income on the security. Short-term U.S. Treasury security = bonds/fixed income.
by Gauntlet
Thu Jan 26, 2017 7:54 am
Forum: Investing - Theory, News & General
Topic: Dow hits 20,000. What next? Share your strategy
Replies: 107
Views: 13447

Re: Dow hits 20,000. What next? Share your strategy

Well, if the stock market keeps going up, I'll be purchasing bonds this year to get my AA back on track :beer
by Gauntlet
Fri Oct 14, 2016 8:39 am
Forum: Investing - Theory, News & General
Topic: 39 Years Old; 50/50 Asset Allocation Reasonable?
Replies: 19
Views: 5033

Re: 39 Years Old; 50/50 Asset Allocation Reasonable?

Just one guy's opinion, but if you really don't plan to work anymore by age 40, I would consider going even more conservative until you reach an age where you can draw on SS. At 50/50, if your portfolio is your only source of income, and If the stock market goes down 50% while you are in your 40s, I think you might get into trouble. Full disclosure, I'm about your age and my portfolio is about half the size of yours.
by Gauntlet
Mon Mar 21, 2016 4:07 pm
Forum: Investing - Theory, News & General
Topic: What bond funds do you use, and why?
Replies: 55
Views: 7988

Re: What bond funds do you use, and why?

I have about a 1/3 of my portfolio in fixed income; split 50/50 in 2 bond funds.I own these funds because I want my fixed income to provide safety.

Vanguard Total Bond: Like others have said, it does the job. I don't like the mortgage back securities in it but in the 15 years I have owned the fund it has been very steady.

G Fund (Government Securities Investment Fund): I think this is the best bond fund to own. Backed by the U.S. and has no interest rate risk. The G fund helps me sleep when the market is going down the tubes (like in 2009).
by Gauntlet
Mon Mar 21, 2016 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: $1 Million+ Nest Egg From Less Than $100k Yearly Income
Replies: 45
Views: 10953

Re: $1 Million+ Nest Egg From Less Than $100k Yearly Income

When I started investing I made well under 100k (I now make more). My approach to getting to the infamous $1 million mark was extremely boring but it can work for almost anyone.

1) Get a college degree.
2) Marry someone with a college degree
3) Work very hard to get pay raises
4) Save as much as possible in tax-advantaged accounts (401k and IRA)
5) Make good choices in those tax-advantaged accounts (index funds)
6) Stay the course during market's ups and downs, addition of children, new job, etc.

We started with $0 and reached $1 million in 15 years using this approach. Unless a person sells a company or is given money, I believe it is all about saving habits to reach the first million. good luck.
by Gauntlet
Tue Nov 24, 2015 9:38 am
Forum: Investing - Theory, News & General
Topic: Slicing, Dicing, Tilting, Factoring, etc-ing -- my take
Replies: 100
Views: 13047

Re: Slicing, Dicing, Tilting, Factoring, etc-ing -- my take

Here is why I decided not to tilt. If you don't go all in on the tilt, it doesn't make much difference to your overall portfolio's return. For example, take a 60% stocks/40% bond portfolio. Say an investor tilts 1/3 of her stock allocation to value. That means a total of 20% of her portfolio is tilted. Even if that 20% of the portfolio beats the total stock market by 2% each year for 20 years, I just don't think it will make much difference. And obviously, the closer one gets to retirement, the more bond heavy one's portfolio gets, the less it matters (because one's tilt becomes a smaller and smaller percentage of the overall portfolio). I came to the same conclusion with REITs. I often see a recommendation of 10% REITS. In the big scheme o...
by Gauntlet
Thu Aug 13, 2015 8:24 am
Forum: Investing - Theory, News & General
Topic: Active or Passive bond funds?
Replies: 7
Views: 1182

Re: Active or Passive bond funds?

Do passive emerging markets bond funds beat the actively managed ones? For example, VWOB (Passive) vs EMCB (Active). Thank you. ajacobs6: I believe that Nobel Laureate, William Sharpe's arithmetic, applies to bond funds as well as stock funds. He wrote: Properly measured, the average actively managed dollar must underperform the average passively managed dollar, net of costs. The Arithmetic of Active Management The S&P Dow Jones SPIVA Scorecard (Report 11) , appears to confirm Professor Sharpe's statement for bonds: Best wishes. Taylor Thank you Taylor, that settles it. But I also just learned that Jack Bogle himself uses the actively managed Vanguard Municipal Bond Funds. Would I be better off with the passive muni ETF? It's a tough d...
by Gauntlet
Tue Aug 04, 2015 11:28 am
Forum: Personal Investments
Topic: Total Bond Market vs. Interm-Term Treasury
Replies: 42
Views: 8912

Re: Total Bond Market vs. Interm-Term Treasury

Timboktoo, I have had a similar debate with myself over the last 5 years or so. My main concern with the TBM is the large amount of mortgage-backed securities (MBS) in the fund/index. For this reason, each year, I think about moving to the Vanguard intermediate-term index fund. However, each year I stay put because the TBM seems to do the job. Even during 2008-20009, the TBM held up nicely. I don't like the idea of holding MBSs but so far it hasn't seemed to hurt me. Some smart folk don't like TBM for different reason. Swedroe doesn't like it because of the corporates and MBSs and Bogle doesn't like it because it does not hold enough corporates. Then again, several like, Ferri, do. Like you said, in the end it probably doesn't matter much. ...
by Gauntlet
Tue Jul 28, 2015 7:57 am
Forum: Investing - Theory, News & General
Topic: Another look at dividend paying stocks
Replies: 57
Views: 8682

Re: Another look at dividend paying stocks

larryswedroe wrote: And btw I would never buy TBM either!!! why would I want to own bonds with the optionality of mortgages, that always works in wrong direction at wrong time? And I also personally don't want in general corporate credit risks with their optionality as well (as well as credit risk which has been poorly rewarded).
Larry, you have said this many times and I understand your reasoning. TBM holds roughly 25% mortgage-backed securities, I believe. I know that you like short-term treasuries but do you think Vanguard's Interm-Bond index (VBIIX) is a better option than TBM? I know this question is a little off topic.
by Gauntlet
Thu Feb 26, 2015 9:14 am
Forum: Investing - Theory, News & General
Topic: International increase in Target Retirement & LifeStrategy
Replies: 235
Views: 52048

Re: International increase in Target Retirement & LifeStrate

I think I'll stick with my current allocation of 1/3 international and 2/3 domestic. With zero international bonds. Having said that, I do think increasing the international bonds allocation makes sense. It always seemed like a waste of time having such a small percentage of the target retirement funds in international bonds. More than half of Vanguard Target retirement funds had less then 5% in international bonds which basically means it made no difference if it was there or not. If you are going to go with an asset, you might as well make it matter. If that makes any sense.
by Gauntlet
Mon Dec 15, 2014 8:55 am
Forum: Investing - Theory, News & General
Topic: 3-funds, annual rebalancing, and then what??
Replies: 17
Views: 1984

Re: 3-funds, annual rebalancing, and then what??

OP, I'm not sure about your life situation but here is some food for thought. I have a 4-fund portfolio. 6-7 years ago, I wanted it to be more complicated because I read more and thought about it more. Now, I have 2 kids, and I am very happy with my simple 4-fund portfolio because I have almost no time to follow the market or my portfolio anymore.
by Gauntlet
Wed Dec 03, 2014 10:57 am
Forum: Investing - Theory, News & General
Topic: to rebalance or not to rebalance
Replies: 63
Views: 5310

Re: to rebalance or not to rebalance

I rebalance once per year. I have stuck with this strategy for 15 years. I'm anal. And for one day a year at least, my allocation perfectly matches my AA:)
by Gauntlet
Tue Jul 15, 2014 11:00 am
Forum: Personal Investments
Topic: POLL: Are You Re-Balancing?
Replies: 70
Views: 8225

Re: POLL: Are You Re-Balancing?

Stonebr wrote:No. I don't fuss with this stuff until December.
+1
by Gauntlet
Wed Jul 09, 2014 1:30 pm
Forum: Investing - Theory, News & General
Topic: Want international exposure? You already have it.
Replies: 65
Views: 8926

Re: Want international exposure? You already have it.

I think international diversification makes sense for several reasons but my opinion is not nearly as important as the numerous experts the bogleheads look up to that believe international diversification is important. The experts include Swedroe, Bernstein, Ferri, the Vanguard Group, among others. There doesn't seem to be much downside to investing some of your stock allocation to international. Especially now that expense ratios are just about as low as the domestic funds.
by Gauntlet
Tue Jun 17, 2014 4:29 pm
Forum: Investing - Theory, News & General
Topic: The Death of Savings Bonds
Replies: 33
Views: 4890

Re: The Death of Savings Bonds

I like Savings Bonds but I sold all of my Savings Bonds last year and don't plan on buying anymore. For me they kept becoming a smaller and smaller portion of my portfolio. Once they got down to 3% of my portfolio, I made the decision to get rid of them. Maybe a lame reason? It also had the added benefit of further simplifying things and it is one less account that have to deal with. The older I get, the less accounts and investments I want to deal with.
by Gauntlet
Fri Mar 21, 2014 9:34 am
Forum: Personal Investments
Topic: Talk me out of my TSP L2050 choice
Replies: 20
Views: 6226

Re: Talk me out of my TSP L2050 choice

OP, more opinions for you. 1) you need to look at your TSP in combination with the rest of your portfolio. 2) I too think that everyone should hold some bonds and the G fund is a great option. It has just about zero interest rate and default risk. I have been investing in the TSP for 15 years and I have never had less than 25% bonds. Even at age 22. And I can tell you that during 2009, I was extremely happy that some of my money was in the G fund and other lower risk bonds.
by Gauntlet
Thu Mar 13, 2014 11:01 am
Forum: Personal Investments
Topic: 529 Plan Allocations
Replies: 3
Views: 600

Re: 529 Plan Allocations

I like the Vanguard moderate-age based fund. When my children are 16 it turns very conservative. You probably can't go wrong with any of Vanguard's age-based options.
by Gauntlet
Fri Feb 21, 2014 8:27 am
Forum: Investing - Theory, News & General
Topic: Would you invest an emergency fund?
Replies: 30
Views: 4404

Re: Would you invest an emergency fund?

I use a savings account and some CDs. In my opinion, if you want to have some safe money that you can get quickly for an emergency, keep things simple. In the long run it probably won't make much difference to your overall portfolio because your emergency fund will become a smaller and smaller part of it as the years go by. Money market, savings accounts, CDs, and savings bonds are all good choices.
by Gauntlet
Thu Feb 20, 2014 9:34 am
Forum: Investing - Theory, News & General
Topic: Bonds go in taxable (whitecoatinvestor aka EmergDoc article)
Replies: 155
Views: 25570

Re: Bonds go in taxable (whitecoatinvestor aka EmergDoc arti

The rational solution, for me, is to admit that I can't guess future returns and tax law changes. My solution simplifies rebalancing and doesn't require any calculation to tax-adjust my asset allocation. I use a mirrored asset allocation across accounts. It is NOT a behavioral mistake; it is a logical solution to a problem without a known solution at the time of investment. Why can't many of you see this? Why the insistence on commiting bonds to a single location when you don't know, for sure, future returns and tax laws? This is where I ended up. Many on this board think that this makes things too complicated and there is some truth to that but it is still pretty simple. I have 13 funds over 6 accounts and rebalance once a year. However, ...
by Gauntlet
Thu Feb 06, 2014 3:27 pm
Forum: Personal Investments
Topic: Thoughts on putting emergency funds into vanguard muni fund
Replies: 20
Views: 2982

Re: Thoughts on putting emergency funds into vanguard muni f

OP, whether you put your emergency fund money in an intermediate fund, Savings Bonds, or in a Savings account it is not going to create much wealth or make much difference to your portfolio long term. If you are the type of person that likes the idea of a rainy day fund, I say put it in a very safe vehicle and don't give it anymore thought. Then put all of your new money into your AA. Personally, I using a Savings account and 1-2 CDs. Neither are paying much interest but I don't care. The money is there if I need it and each year it becomes a smaller and smaller part of my overall portfolio.