Search found 183 matches

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: 129
Views: 14751

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...
by Gauntlet
Tue Aug 28, 2018 9:25 am
Forum: Personal Finance (Not Investing)
Topic: TSP Max Paycheck % contribution
Replies: 8
Views: 780

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: 13863

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. Wh...
by Gauntlet
Fri Jun 01, 2018 6:51 am
Forum: Investing - Theory, News & General
Topic: Investment money is "Fungible"
Replies: 82
Views: 6186

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: Investing - Help with Personal Investments
Topic: Total Bond Market
Replies: 12
Views: 2114

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...
by Gauntlet
Thu May 10, 2018 8:18 am
Forum: Investing - Theory, News & General
Topic: Why International again?
Replies: 224
Views: 25714

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...
by Gauntlet
Wed May 09, 2018 9:28 am
Forum: Investing - Theory, News & General
Topic: Why International again?
Replies: 224
Views: 25714

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 diversifi...
by Gauntlet
Wed May 09, 2018 8:10 am
Forum: Investing - Theory, News & General
Topic: Why International again?
Replies: 224
Views: 25714

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 diversific...
by Gauntlet
Fri Jan 12, 2018 1:02 pm
Forum: Investing - Help with Personal Investments
Topic: 100% VTSAX (Vanguard Total Stock Mkt Idx Adm)??
Replies: 70
Views: 7719

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 thei...
by Gauntlet
Thu Dec 28, 2017 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: Affect of Rising Interest Rates on Vanguard Total Bond Index
Replies: 43
Views: 8882

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

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 re...
by Gauntlet
Tue Dec 05, 2017 2:49 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation across accounts: Twist?
Replies: 23
Views: 1909

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 ha...
by Gauntlet
Mon Oct 23, 2017 8:35 am
Forum: Investing - Help with Personal Investments
Topic: Is it ok to have 100% stocks, 15 years+
Replies: 97
Views: 11168

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% ...
by Gauntlet
Thu Apr 20, 2017 7:41 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe says "Goodbye."
Replies: 336
Views: 50626

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: Investing - Help with Personal Investments
Topic: Is anyone decreasing % of bonds this year?
Replies: 91
Views: 9707

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 pl...
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: 4788

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 ...
by Gauntlet
Tue Feb 21, 2017 8:24 am
Forum: Investing - Help with Personal Investments
Topic: VBILX vs VBTLX [Vanguard Intermediate-Term vs. Total Bond]
Replies: 49
Views: 10249

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 togeth...
by Gauntlet
Wed Feb 15, 2017 9:05 am
Forum: Investing - Theory, News & General
Topic: Tsp contribution question (contribute bi-monthly)
Replies: 12
Views: 1669

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 8:58 am
Forum: Investing - Theory, News & General
Topic: TSP?
Replies: 13
Views: 1979

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. Sho...
by Gauntlet
Thu Jan 26, 2017 8:54 am
Forum: Investing - Theory, News & General
Topic: Dow hits 20,000. What next? Share your strategy
Replies: 107
Views: 11100

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: 2649

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...
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: 6301

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 i...
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: 9812

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 pos...
by Gauntlet
Tue Nov 24, 2015 10:38 am
Forum: Investing - Theory, News & General
Topic: Slicing, Dicing, Tilting, Factoring, etc-ing -- my take
Replies: 100
Views: 11607

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 tilt...
by Gauntlet
Thu Aug 13, 2015 8:24 am
Forum: Investing - Theory, News & General
Topic: Active or Passive bond funds?
Replies: 7
Views: 975

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 manag...
by Gauntlet
Tue Aug 04, 2015 11:28 am
Forum: Investing - Help with Personal Investments
Topic: Total Bond Market vs. Interm-Term Treasury
Replies: 42
Views: 6985

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 ...
by Gauntlet
Tue Jul 28, 2015 7:57 am
Forum: Investing - Theory, News & General
Topic: Another look at dividend paying stocks
Replies: 57
Views: 7902

Re: Another look at dividend paying stocks

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 poorl...
by Gauntlet
Thu Feb 26, 2015 10:14 am
Forum: Investing - Theory, News & General
Topic: International increase in Target Retirement & LifeStrategy
Replies: 235
Views: 38597

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 fu...
by Gauntlet
Mon Dec 15, 2014 9:55 am
Forum: Investing - Theory, News & General
Topic: 3-funds, annual rebalancing, and then what??
Replies: 17
Views: 1667

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 t...
by Gauntlet
Wed Dec 03, 2014 11:57 am
Forum: Investing - Theory, News & General
Topic: to rebalance or not to rebalance
Replies: 63
Views: 4503

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: Investing - Help with Personal Investments
Topic: POLL: Are You Re-Balancing?
Replies: 70
Views: 6860

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: 8002

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. ...
by Gauntlet
Tue Jun 17, 2014 4:29 pm
Forum: Investing - Theory, News & General
Topic: The Death of Savings Bonds
Replies: 33
Views: 4353

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 be...
by Gauntlet
Fri Mar 21, 2014 9:34 am
Forum: Investing - Help with Personal Investments
Topic: Talk me out of my TSP L2050 choice
Replies: 20
Views: 4368

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 ...
by Gauntlet
Thu Mar 13, 2014 11:01 am
Forum: Investing - Help with Personal Investments
Topic: 529 Plan Allocations
Replies: 3
Views: 482

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 9:27 am
Forum: Investing - Theory, News & General
Topic: Would you invest an emergency fund?
Replies: 30
Views: 3969

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 ...
by Gauntlet
Thu Feb 20, 2014 10:34 am
Forum: Investing - Theory, News & General
Topic: Bonds go in taxable (whitecoatinvestor aka EmergDoc article)
Replies: 155
Views: 21971

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 logi...
by Gauntlet
Thu Feb 06, 2014 4:27 pm
Forum: Investing - Help with Personal Investments
Topic: Thoughts on putting emergency funds into vanguard muni fund
Replies: 20
Views: 2622

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 ...
by Gauntlet
Wed Feb 05, 2014 3:01 pm
Forum: Personal Consumer Issues
Topic: Amazon Prime Increase
Replies: 185
Views: 14589

Re: Amazon Prime Price Increase

I have seen a couple threads on this. I can't see why someone using prime and paying $80 a year would instantly drop it for and extra 20 or 40 bucks a year. I mean this equals a couple trips to Starbucks. I consider myself to be pretty cheap but I can't for the life of me see what the fuss is about.
by Gauntlet
Thu Jan 30, 2014 4:12 pm
Forum: Investing - Theory, News & General
Topic: Bonds - Throw it all on the table!!!
Replies: 222
Views: 39331

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

1) List the bond funds, individual bonds, CD's, etc. that you invest in Total Bond and G Fund 2) In which account TSP, 401k, IRA, 529 3) Allocation as a percentage of Fixed Income about 50/50 4) Allocation to bonds overall (i.e. age in bonds, etc.) about 30% 5) Any other plans such as adding more bo...
by Gauntlet
Mon Jan 27, 2014 2:17 pm
Forum: Investing - Theory, News & General
Topic: Which bond fund is best?
Replies: 83
Views: 8396

Re: Which bond fund is best?

I'm not sure which is better. For years I have thought about changing my total bond to Vanguard's intermediate-term bond index fund. Mainly because my plan calls for intermediate-term bonds and the intermediate-term bond index fund "feels" like the more accurate choice. I still have not made the cha...
by Gauntlet
Fri Jan 03, 2014 11:06 am
Forum: Investing - Help with Personal Investments
Topic: Should I opt out of my bond allocation?
Replies: 47
Views: 5522

Re: Should I opt out of my bond allocation?

All the reasons given so far to hold bonds are great but here is another reason to hold bonds that I think is very practical. It is important to hold some bonds, even at a young age, if for no other reason than to learn how they work. There is no better way to learn how an asset works than to own it...
by Gauntlet
Tue Dec 17, 2013 2:12 pm
Forum: Investing - Help with Personal Investments
Topic: Can TSP G fund be used as liability matching portfolio?
Replies: 4
Views: 580

Re: Can TSP G fund be used as liability matching portfolio?

Personally, I think the short answer is yes. It is not tied to inflation but here is the objective of the fund from TSP.gov: "The G Fund's investment objective is to produce a rate of return that is higher than inflation while avoiding exposure to credit (default) risk and market price fluctuations....
by Gauntlet
Mon Dec 16, 2013 9:54 am
Forum: Investing - Help with Personal Investments
Topic: Bond index funds vs cash
Replies: 49
Views: 7072

Re: Bond index funds vs cash

Julieta wrote:It seems that cash is a safer investment these days than a bond index fund.
Also, a good argument could be made that cash as an asset class is always "safer" (less risk) than bonds as an asset class. These days are no different.
by Gauntlet
Wed Dec 04, 2013 3:16 pm
Forum: Personal Consumer Issues
Topic: Thoughts on having kids?
Replies: 101
Views: 5774

Re: Thoughts on having kids?

Wow. This is an emotional thread. I'll make my opinion short and sweet. Kids are amazing. If you are fortunate enough to have the opportunity to have some, you should.
by Gauntlet
Wed Nov 20, 2013 11:23 am
Forum: Investing - Help with Personal Investments
Topic: investment with after tax money or pay off mortgage?
Replies: 29
Views: 2663

Re: investment with after tax money or pay off mortgage?

OP, I am in a similar situation. I decided to put most if the taxable money towards our mortgage and a small amount in the taxable account. No real good reason except I enjoy investing but also love the idea of being debt free. Also, it is nice to have some liquid assets outside the retirement accou...
by Gauntlet
Thu Nov 07, 2013 9:20 am
Forum: Investing - Theory, News & General
Topic: Estimated outcome of Boglehead Contest
Replies: 16
Views: 1086

Re: Estimated outcome of Boglehead Contest

I'm in the game! Sitting pretty at 21 with less than a 1% chance of winning :)
by Gauntlet
Mon Sep 16, 2013 7:41 am
Forum: Investing - Help with Personal Investments
Topic: Short Term Bond Fund
Replies: 21
Views: 3100

Re: Short Term Bond Fund

Note: longer term rates have already gone up, short term rates have yet to go up. Beware market timing. +1 To jump on this market timing point, bond funds have already gone down. Some long-term funds are down double digits YTD. Granted, they could easily go down further but much of the damage could...
by Gauntlet
Fri Sep 13, 2013 9:05 am
Forum: Investing - Help with Personal Investments
Topic: TIPS - Going Down with the Ship?
Replies: 112
Views: 15839

Re: TIPS - Going Down with the Ship?

At the end of the day, for us bonds are for safety and income. The Intermediate Term TIPS fund is paying next to nothing and has dropped over 9% this year. We just can not pull the trigger on this fund and get back into it. There is more than one road to Rome. This is true but also a little mislead...
by Gauntlet
Thu Sep 12, 2013 7:27 am
Forum: Investing - Theory, News & General
Topic: Allocation to international stocks
Replies: 21
Views: 2599

Re: Allocation to international stocks

More food for thought. If an investor's human capital and house are both in her home country, it might make some sense to diversify some net worth outside the home country. One way to do this is through international stocks. In other words, it helps avoid having one's entire net worth (human capital...