Search found 1411 matches

by galeno
Wed Dec 12, 2018 8:04 pm
Forum: Investing - Help with Personal Investments
Topic: Corporate Bond Investing Strategy
Replies: 18
Views: 605

Re: Corporate Bond Investing Strategy

VCIT (Interm term) or VCSH (Short term) are the ETFs I would use for corporate bonds.

I HOPE you KNOW what you're doing. It sounds pretty crazy to me.
by galeno
Wed Dec 12, 2018 7:57 pm
Forum: Investing - Help with Personal Investments
Topic: I'm going to do it?
Replies: 11
Views: 1039

Re: I'm going to do it?

I suggest 35/65 for less stress. KISS. 35% VTWSX + 65% VBMFX is your ticket to success.

VTWSX: https://investor.vanguard.com/mutual-fu ... file/VTWSX
by galeno
Wed Dec 12, 2018 7:04 pm
Forum: Investing - Help with Personal Investments
Topic: I'm going to do it?
Replies: 11
Views: 1039

Re: I'm going to do it?

I suggest 35/65 for less stress. KISS. 35% VGWSX + 65% VBMFX is your ticket to success.
by galeno
Wed Dec 12, 2018 1:36 pm
Forum: Investing - Theory, News & General
Topic: Our mentor [Jack Bogle] advises to "buy bonds" for protection in current market
Replies: 42
Views: 3040

Re: Our mentor advises to "buy bonds" for protection in current market

We hold a conservative "age in bonds" retirement portfolio. We're stress free using the 4% rule. We'll "hold the course" and rebalance annually if necessary.
by galeno
Mon Dec 10, 2018 8:57 pm
Forum: Investing - Help with Personal Investments
Topic: High Fee 401(k) - How to Handle?
Replies: 11
Views: 706

Re: High Fee 401(k) - How to Handle?

If the OP does not have a cheap SP500 fund and a SVF available could he put his first retirement contributions into an IRA and the rest into his 401K? I understand that there are income limits for this.
by galeno
Mon Dec 10, 2018 6:27 pm
Forum: Investing - Help with Personal Investments
Topic: Is this a reasonable AA for someone retiring in 5 to 10 years?
Replies: 8
Views: 719

Re: Is this a reasonable AA for someone retiring in 5 to 10 years?

Age in bonds = conservative

Age -10 in bonds = moderate

Age - 20 in bonds = aggressive

You should be 55/45 at your ages. If you want to stay conservative.
by galeno
Mon Dec 10, 2018 6:19 pm
Forum: Investing - Help with Personal Investments
Topic: Is this a reasonable AA for someone retiring in 5 to 10 years?
Replies: 8
Views: 719

Re: Is this a reasonable AA for someone retiring in 5 to 10 years?

30/70 has the best risk/return efficiency and thus it's the favorite AA for retirees.

Why don't you hold your "age in bonds" and glide towards retirement? It's an easy no-brainer.
by galeno
Mon Dec 10, 2018 5:24 pm
Forum: Investing - Help with Personal Investments
Topic: High Fee 401(k) - How to Handle?
Replies: 11
Views: 706

Re: High Fee 401(k) - How to Handle?

Second look for the super cheap equity fund in your list. It's usually an SP500 index choose that one and only that one for your equities. Look for the super cheap bond fund in your list. If none then use the SVF (Stable Value Fund) that your 401K may have for bonds. So your 401K portfolio will look...
by galeno
Mon Dec 10, 2018 5:20 pm
Forum: Investing - Help with Personal Investments
Topic: High Fee 401(k) - How to Handle?
Replies: 11
Views: 706

Re: High Fee 401(k) - How to Handle?

First accept the following: Assume USA domicled investor who wishes to rebalance manually once per year. He does not want to think about US vs non-US allocation. Pick one of the three 2-fund ports below. For globalists: VT (World Stocks) + BNDW (World Bonds) For US-centric: VTI (US Stocks) + BND (US...
by galeno
Mon Dec 10, 2018 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: 3/4/5 Fund Portfolio?
Replies: 7
Views: 1048

Re: 3/4/5 Fund Portfolio?

The below portfolio is an overlapping and unnecessarily complicated mess. It looks like a beginner rookie's portfolio. Much better would be: 100% VT or VTWSX. If you want some bonds add BND or VBTLX. 32% VFIAX Index 500 [$35k long term gain] 24% VSMAX Small Cap Index [$28k long term gain] 16% VWIAX ...
by galeno
Mon Dec 10, 2018 1:33 pm
Forum: Investing - Help with Personal Investments
Topic: Can US investor buy non-distributing mutual funds?
Replies: 8
Views: 360

Re: Can US investor buy non-distributing mutual funds?

As a USA-NRA (USA Non-Resident Alien) Boglehead I've been trying to invest like a USA Boglehead for 13 years. We pay higher ER (Expense Ratios) and higher TR (Tax Ratios) compared to USA Bogleheads. It's getting better but the USA investor still has the advantage. Why would you even CONSIDER investi...
by galeno
Mon Dec 10, 2018 11:24 am
Forum: Investing - Help with Personal Investments
Topic: 3/4/5 Fund Portfolio?
Replies: 7
Views: 1048

Re: 3/4/5 Fund Portfolio?

If you want max capital appreciation go 100% equity. Use 100% TSM (Total US Stock Market) or 100% TWSM (Total World Stock Market).

So 100% in VTI or VT. Your portfolio would have one fund instead of two.
by galeno
Mon Dec 10, 2018 11:00 am
Forum: Investing - Help with Personal Investments
Topic: Managing my own portfolio
Replies: 20
Views: 2233

Re: Managing my own portfolio

If one holds a stock and bond portfolio of at least 30% stocks and the rest in INVESTMENT GRADE bonds then YES. The 4% rule can be applied BLINDLY and it will work as advertised. If you're REALLY worried about the 4% rule you can take an additional step. No "inflation raises" when the market goes do...
by galeno
Sun Dec 09, 2018 3:35 pm
Forum: Investing - Help with Personal Investments
Topic: 3/4/5 Fund Portfolio?
Replies: 7
Views: 1048

Re: 3/4/5 Fund Portfolio?

Build your portfolio like this:

viewtopic.php?f=10&t=263930

You do not need TIPS until you get to 40% equities.
by galeno
Sun Dec 09, 2018 3:30 pm
Forum: Investing - Help with Personal Investments
Topic: Managing my own portfolio
Replies: 20
Views: 2233

Re: Managing my own portfolio

The 4% SWR is CONSERVATIVE.
by galeno
Fri Dec 07, 2018 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: [non-US] Which MSCI World Small Cap ETF?
Replies: 5
Views: 487

Re: [non-US] Which MSCI World Small Cap ETF?

What does your (non-US) port look like? Ours is currently: 40% VWRD + 20% VDCP + 20% VDTY + 15% ITPS + 5% CASH. We'd sell 25% of VWRD and put it into WSML which would make it 5% of port. 5% of port is the MINIMUM position we will take. I'd prefer 10%. Do you think 5% of WSML is worth the bother? In ...
by galeno
Fri Dec 07, 2018 2:47 pm
Forum: Investing - Help with Personal Investments
Topic: [non-US] Which MSCI World Small Cap ETF?
Replies: 5
Views: 487

[non-US] Which MSCI World Small Cap ETF?

I want our equity allocation to look like the FTSE all cap all world equity index which is USA Vanguard's ETF "VT". It has 5% SC. The only equity ETF we use right now is Ireland Vanguard's FTSE all world equity index ETF "VWRD". It has 0% SC. To make VT I need to combine 88.5% VWRD with 12.5% MSCI W...
by galeno
Fri Dec 07, 2018 1:28 pm
Forum: Investing - Help with Personal Investments
Topic: What are the upsides / downsides of these two portfolios? (European Investor)
Replies: 16
Views: 1157

Re: What are the upsides / downsides of these two portfolios? (European Investor)

KISS. Start with: X% VWRL (equities) and IUAG (bonds). If you want VWRL to look more like VT (0% SC vs 5% SC) you'll want to use 12.5% WSML + 88.5% VWRL as your equity allocation. If you want to tilt to smaller use 25% WSML + 75% VWRL (11% SC). Instead of WSML which is denominated in USD you can use...
by galeno
Fri Dec 07, 2018 12:42 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Understanding TIPS
Replies: 36
Views: 3349

Re: Larry Swedroe: Understanding TIPS

We hold 15% of port in a TIPS ETF (duration = 7.8 yr). Its purpose is to protect 25% of our 60% of port FI allocation against unexpected inflation.
by galeno
Fri Dec 07, 2018 12:11 pm
Forum: Investing - Help with Personal Investments
Topic: All Weather Portfolio - Ray Dalio during slow growth/ downturn? How to balance bonds in low yield w/ rising rates?
Replies: 14
Views: 1392

Re: All Weather Portfolio - Ray Dalio during slow growth/ downturn? How to balance bonds in low yield w/ rising rates?

I disagree. Every single one of those 150 ports are UNNECESSARILY complicated. 70% VT + 30% BND does everything the 150 ports do WITHOUT duplication or tilting. The minimum position we will take with our port is 5%. And I have a hard time justifying THAT. 10% is more like it. The smallest position w...
by galeno
Thu Dec 06, 2018 10:06 pm
Forum: Investing - Help with Personal Investments
Topic: Irish domiciled version of BND/VTI/VXUS lazy portfolio
Replies: 3
Views: 444

Re: Irish domiciled version of BND/VTI/VXUS lazy portfolio

For equities use VWRD. For bonds use SUAG. KISS. X% VT + Y% SUAG.

If you want to mirror USA Vanguard's VT use 88.5% VWRD + 12.5% WSML.

Instead of SUAG (ER=0.25%) we use 33% VDCP + 33% VDTY + 25% ITPS + 9% CASH (ER=0.14%) as our FI allocation.
by galeno
Thu Dec 06, 2018 9:55 pm
Forum: Investing - Help with Personal Investments
Topic: Managing my own portfolio
Replies: 20
Views: 2233

Re: Managing my own portfolio

70-80% VT + 20-30% BND is all you need. KISS.
by galeno
Thu Dec 06, 2018 9:51 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation during retirement and Safe Withdrawal Rates
Replies: 22
Views: 4048

Re: Asset Allocation during retirement and Safe Withdrawal Rates

Wife and I are 61 and retired. We use "age in bonds" as our conservative AA. We're 40/60. We use a 4% AWR.
by galeno
Thu Dec 06, 2018 9:46 pm
Forum: Investing - Help with Personal Investments
Topic: 20M Inheritance - What is best option for small/no risk on principal?
Replies: 93
Views: 11769

Re: 20M Inheritance - What is best option for small/no risk on principal?

The best risk adjusted return portfolio would be 30/70.

30% VT + 50% BND + 20% TIPS would be ideal for you.
by galeno
Thu Dec 06, 2018 9:10 pm
Forum: Investing - Help with Personal Investments
Topic: Long term market cap tilt with simple ratios
Replies: 11
Views: 828

Re: Long term market cap tilt with simple ratios

I'm thinking along the same lines. Right now we use ONE FTSE all world equity ETF (VWRD:LSE): 52% Giant + 34% LC + 14% MC + 0% SC. To mirror the FTSE all cap all world equity index (VT) we would have to use 88.5% VWRD + 12.5% WSML (MSCI World Small Cap Index): 46% Giant + 30% LC + 19% MC + 5% SC. If...
by galeno
Thu Dec 06, 2018 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: All Weather Portfolio - Ray Dalio during slow growth/ downturn? How to balance bonds in low yield w/ rising rates?
Replies: 14
Views: 1392

Re: All Weather Portfolio - Ray Dalio during slow growth/ downturn? How to balance bonds in low yield w/ rising rates?

Where is the other 20%? It should be in bonds (BND). Gold/silver is unnecessary as an inflation hedge. Especially if you own RE. Put the gold into foreign equities for 30%. 40% US/ S&P etc (VTI vanguard indexes0 10% gold/silver (GLD, SIL) 20% foreign (vanguard ex US and some BLDRs index funds/ FXI) ...
by galeno
Thu Dec 06, 2018 1:30 pm
Forum: Investing - Help with Personal Investments
Topic: [non-US] 7/8 VWRD + 1/8 WSML = VT
Replies: 3
Views: 200

Re: [non-US] 7/8 VWRD + 1/8 WSML = VT

It's an equivalent value swap. I like the concept of mirroring VT. WSML would be 5% of port (12.5% or 1/8th of the 40% equity allocation). VWRD 3 yr CAGR = 8.2% vs WSML 3 yr CAGR = 6.9%. VWRD went down less YTD vs WSML. VWRD PE = 14.6 vs WSML PE = 14.7. Pretty even here. Do I REALLY want to do this ...
by galeno
Thu Dec 06, 2018 10:25 am
Forum: Investing - Help with Personal Investments
Topic: [non-US] 7/8 VWRD + 1/8 WSML = VT
Replies: 3
Views: 200

[non-US] 7/8 VWRD + 1/8 WSML = VT

I love the portfolio of USA Vanguard's VT. It is the FTSE all world ALL CAP equity index. As USA-NRAs we use Ireland Vanguard's VWRD which is FTSE all world equity index. It's weak on small caps. However If I mix 87.5% VWRD + 12.5% WSML I get an almost identical capitalization mix as VT. VWRD: 52% G...
by galeno
Thu Dec 06, 2018 9:44 am
Forum: Investing - Theory, News & General
Topic: Which Bond ETF: TBM, TBM-exUS, or TWBM?
Replies: 4
Views: 347

Re: Which Bond ETF: TBM, TBM-exUS, or TWBM?

Where can I find any articles regarding the "hedge return"?

Frankly I don't understand how non-USD bonds (lower SEC Yield and weaker currencies) can beat USD bonds regarding total return.
by galeno
Wed Dec 05, 2018 7:43 pm
Forum: Investing - Theory, News & General
Topic: Which Bond ETF: TBM, TBM-exUS, or TWBM?
Replies: 4
Views: 347

Which Bond ETF: TBM, TBM-exUS, or TWBM?

We are USD investors. Theoretically we'd like to use world bonds (BNDW) for diversification. 1.24% less SEC Yield and 0.7 yr more duration seems like "diworsification". The credit quality for non-USA bonds is worse vs USA bonds also. Can anybody make a case for us to consider world bonds (BNDW) inst...
by galeno
Mon Dec 03, 2018 4:40 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on Which Indexes to Track
Replies: 8
Views: 533

Re: Advice on Which Indexes to Track

For equities I follow the TWSM, TSM, Non-US Developed Market, and EM.

For bonds I follow the TWBM, and TBM.

I use US Vanguard or Schwab ETFs as proxies.
by galeno
Sun Dec 02, 2018 1:20 pm
Forum: Investing - Theory, News & General
Topic: Is Ireland taxing dividends on Accumulating ETF share classes UK domiciled for non Irish people?
Replies: 27
Views: 1718

Re: Is Ireland taxing dividends on Accumulating ETF share classes UK domiciled for non Irish people?

Read the thread.
ICH wrote:
Sat Dec 01, 2018 11:20 pm
galeno wrote:
Sat Dec 01, 2018 2:32 pm
No. Go for 100% AGGU or 50/50 AGGU/AGGH if you MUST hold bonds hedged to Euro.
Why? :shock:
by galeno
Sun Dec 02, 2018 12:57 pm
Forum: Investing - Help with Personal Investments
Topic: Should I move to a more conservative AA? 80/20 to 60/40?
Replies: 67
Views: 4454

Re: Should I move to a more conservative AA? 80/20 to 60/40?

Again. Go "age in FI". Why? You want to retire in 10 years. Your savings rate is massive. Why suffer the stress of 80/20 when you don't have too?
by galeno
Sat Dec 01, 2018 5:55 pm
Forum: Investing - Help with Personal Investments
Topic: Should I move to a more conservative AA? 80/20 to 60/40?
Replies: 67
Views: 4454

Re: Should I move to a more conservative AA? 80/20 to 60/40?

Why not hold a conservative portfolio and "keep your age in fixed income (FI)"?

You should be at 70/30 right now. When you both get to 35 to 65/35. Do it in chunks of 5% when your average ages round up or down.
by galeno
Sat Dec 01, 2018 2:37 pm
Forum: Investing - Theory, News & General
Topic: The five-fund portfolio
Replies: 12
Views: 1833

Re: The five-fund portfolio

We do the exact same thing with 3 ETFs plus CASH:

40% TWSM + 40% TBM + 15% TIPS + 5% CASH
by galeno
Sat Dec 01, 2018 2:07 pm
Forum: Investing - Help with Personal Investments
Topic: [28 yo French living in Singapore] iShares Bond ETF: Hedged Euro, Hedged USD or Unhedged USD ?
Replies: 43
Views: 2254

Re: [28 yo French living in Singapore] iShares Bond ETF: Hedged Euro, Hedged USD or Unhedged USD ?

Pick 100% USD hedged bond ETF. Or go 50/50. Don't go 100% Euro hedged bond ETF.

AGGU will hedge your non-USD interest income from the non-USD bonds into USD.

AGGH will hedge your non-Euro interest income into from the non-Euro bonds into Euro.
by galeno
Fri Nov 30, 2018 3:23 pm
Forum: Investing - Theory, News & General
Topic: 2 Fund Ports: Everything You NEED?
Replies: 32
Views: 3789

Re: 2 Fund Ports: Everything You NEED?

There are hundreds of ways to slice, dice, tilt, and complicate the basic 2 fund ports I presented. The point of this thread is SIMPLICITY and LAZINESS. Start from what you NEED (2 fund port) and modify the stock and bond allocations for what you WANT. Many investors like to use back testing. And ma...
by galeno
Fri Nov 30, 2018 1:40 pm
Forum: Investing - Theory, News & General
Topic: 2 Fund Ports: Everything You NEED?
Replies: 32
Views: 3789

Re: 2 Fund Ports: Everything You NEED?

There is lots of discussion about the components of the TBM. Basically they are US treasuries, investment grade US corporate bonds, and MBS (mortgage backed securities). Opinions are all over the place about these components. Which usually means that the discussions, while intelectually interesting,...
by galeno
Fri Nov 30, 2018 11:45 am
Forum: Investing - Theory, News & General
Topic: 2 Fund Ports: Everything You NEED?
Replies: 32
Views: 3789

Re: 2 Fund Ports: Everything You NEED?

You get what you NEED by holding one bond fund/ETF and one stock fund/ETF.

You get what you WANT by slicing, dicing, and tilting.
by galeno
Thu Nov 29, 2018 2:11 pm
Forum: Investing - Theory, News & General
Topic: Model Portfolios
Replies: 5
Views: 1026

Re: Model Portfolios

An ever better way to portfolio bliss: viewtopic.php?f=10&t=263930
by galeno
Thu Nov 29, 2018 1:42 pm
Forum: Investing - Help with Personal Investments
Topic: [28 yo French living in Singapore] iShares Bond ETF: Hedged Euro, Hedged USD or Unhedged USD ?
Replies: 43
Views: 2254

Re: [28 yo French living in Singapore] iShares Bond ETF: Hedged Euro, Hedged USD or Unhedged USD ?

The OP is in a situation very similar to ours. We live in a small country dominated by a hegemon named the USA. So we "count in USD". He lives in a small country dominated by two hegemons: USA and China. Eventually he will want to "count in Chinese Yuan" but at this time the Chinese currency is not ...
by galeno
Wed Nov 28, 2018 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: [28 yo French living in Singapore] iShares Bond ETF: Hedged Euro, Hedged USD or Unhedged USD ?
Replies: 43
Views: 2254

Re: [28 yo French living in Singapore] iShares Bond ETF: Hedged Euro, or Hedged USD (accumulating) or USD (distributing)

You should use AGGU because it's hedged to USD which is the currency you should use. As a Singapore domicile it really doesn't matter if it's accumulating or distributive. Hedged is important because it reduces your portfolio's volatility. We Bogleheads like bonds as ballast. Your port is easy: X% V...
by galeno
Wed Nov 28, 2018 12:48 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Are Corp Bonds Worth Risk?
Replies: 59
Views: 4965

Re: Larry Swedroe: Are Corp Bonds Worth Risk?

Before we retired we were 60/40. For retirement we went 40/60. The 20% of equities was reallocated into an interm term corp bond ETF. Our FI allocation is 33% interm term US treasuries + 33% interm term corp bonds + 25% USD TIPS + 9% CASH. If we were to go to 30/70. That 10% of equity would be reall...
by galeno
Wed Nov 21, 2018 1:32 pm
Forum: Personal Consumer Issues
Topic: The Expert's Dilemma - How can I know I'm getting a good physician without being one myself?
Replies: 199
Views: 13884

Re: Physician Credentials: Offshore vs. American Medical Schools

Best 2 quotes I've ever heard.

"Graduating medical school gets you a "union card". This "union card" gets you into residency (a specialty training program) where you REALLY learn how to be a doctor."

"Recently graduated medical students know just enough to be dangerous."
by galeno
Tue Nov 20, 2018 1:15 pm
Forum: Investing - Help with Personal Investments
Topic: Can someone explain what's going on [with the stock market]?
Replies: 96
Views: 13093

Re: Can someone explain what's going on [with the stock market]?

The whole idea of being a Boglehead is that it should not matter. Stick with your plan.
by galeno
Tue Nov 20, 2018 12:56 pm
Forum: Investing - Theory, News & General
Topic: Non-USA person investing: AGG vs IUAG yields
Replies: 8
Views: 1120

Re: Non-USA person investing: AGG vs IUAG yields

It's close enough. This is an old thread. I assumed a 15% tax on INTEREST INCOME for Ireland domiciled FI ETFs. You are correct. It is zero. And there lies the answer.