Search found 234 matches

by Steadfast
Tue Nov 10, 2020 10:04 am
Forum: Investing - Theory, News & General
Topic: High frequency rebalancing (Swensen)
Replies: 19
Views: 1216

Re: High frequency rebalancing (Swensen)

By the title of this post I mean that the fund managed by Swensen for Yale rebalances on a daily basis. I learnt this from the book 'Unconventional success' which is changing my outlook on some things. One thing I learnt is that (at least according to Swensen) letting your allocations drift is a fo...
by Steadfast
Thu Nov 05, 2020 1:55 pm
Forum: Personal Investments
Topic: Who has something good to say about Tax exempt State Munis
Replies: 16
Views: 1406

Re: Who has something good to say about Tax exempt State Munis

I’ve been kicking the tires on putting a tax exempt muni fund in my taxable account moving forward. The fund I am looking at is DUALX...which holds high quality Alabama munis. Expenses are a little rich at .70...but the return overall return has been rock solid for years. Background: High earner, A...
by Steadfast
Wed Oct 28, 2020 10:35 am
Forum: Investing - Theory, News & General
Topic: first million [in your retirement portfolio]
Replies: 170
Views: 24027

Re: first million

1) what age did you hit your first million in your retirement portfolio? 2) what age did you start? 3) was some of this savings inherited? self made? combination of both? Studies show that around 75% millionaires are self made; took about 2-3 decades to hit millionaire mark I understand many of us ...
by Steadfast
Mon Oct 26, 2020 2:12 pm
Forum: Investing - Theory, News & General
Topic: If you have a sizable portfolio, you don't need an emergency fund
Replies: 260
Views: 25778

Re: If you have a sizable portfolio, you don't need an emergency fund

If you have a sizable enough portfolio, you don't have to worry about the "inefficiencies" of having a nice big helping of cash laying around either.
by Steadfast
Mon Oct 26, 2020 12:11 pm
Forum: Investing - Theory, News & General
Topic: Shouldn't a Boglehead hold VTWAX instead of some arbitrary (and therefore active) allocation of VTSAX + VTIAX?
Replies: 69
Views: 4552

Re: Shouldn't a Boglehead hold VTWAX instead of some arbitrary (and therefore active) allocation of VTSAX + VTIAX?

The most tax-efficient way to do this for most people is VTWAX in tax-sheltered accounts (IRA) and the appropriate split of VTI/VXUS in taxable. It's what we do.
by Steadfast
Fri Oct 23, 2020 5:51 pm
Forum: Personal Investments
Topic: Windfall & ETFs
Replies: 2
Views: 398

Re: Windfall & ETFs

Hi new here and first post. Received a windfall of 70k. Debt free besides mortgage (I do not plan to pay it off anytime soon/may rent it out at some point if needed), IRA maxed, 401 maxed, and absolutely no idea where to go from here. Long term goal is to buy real estate and manage rentals, but for...
by Steadfast
Thu Oct 22, 2020 3:25 pm
Forum: Investing - Theory, News & General
Topic: Pimco Ca. Muni....PCK
Replies: 15
Views: 893

Re: Pimco Ca. Muni....PCK

I can't imagine a CA muni fund I would want to own less than PCK. Run away! It pays well because it takes more risk . Duration of >14 years! Huge interest rate risk. Expense ratio > 1.18%! Wow! Why on earth would you pay that!? If you want a long-term CA municipal bond fund, look at Vanguard Califo...
by Steadfast
Thu Oct 22, 2020 1:35 pm
Forum: Investing - Theory, News & General
Topic: Pimco Ca. Muni....PCK
Replies: 15
Views: 893

Re: Pimco Ca. Muni....PCK

I can't imagine a CA muni fund I would want to own less than PCK. Run away! It pays well because it takes more risk . Duration of >14 years! Huge interest rate risk. Expense ratio > 1.18%! Wow! Why on earth would you pay that!? If you want a long-term CA municipal bond fund, look at Vanguard Califo...
by Steadfast
Thu Oct 22, 2020 1:29 pm
Forum: Investing - Theory, News & General
Topic: VXUS sideways... why hold it?
Replies: 62
Views: 4310

Re: VXUS sideways... why hold it?

I'm in a 65/35 portfolio. Core holdings are VTi/VXUS/BND. VXUS and VWO seem to trade in a sideways pattern over the years, mostly sideways vs. S&P. While its nice to collect & reinvest the dividend, little to no growth. I wish I would have listened to Jack B that US Stocks have enough INTL ...
by Steadfast
Thu Oct 22, 2020 12:40 pm
Forum: Investing - Theory, News & General
Topic: Pimco Ca. Muni....PCK
Replies: 15
Views: 893

Re: Pimco Ca. Muni....PCK

I can't imagine a CA muni fund I would want to own less than PCK. Run away! It pays well because it takes more risk . Duration of >14 years! Huge interest rate risk. Expense ratio > 1.18%! Wow! Why on earth would you pay that!? If you want a long-term CA municipal bond fund, look at Vanguard Califor...
by Steadfast
Thu Oct 22, 2020 11:43 am
Forum: Investing - Theory, News & General
Topic: VXUS sideways... why hold it?
Replies: 62
Views: 4310

Re: VXUS sideways... why hold it?

This is why I hold international:

Image
by Steadfast
Wed Oct 21, 2020 11:00 am
Forum: Investing - Theory, News & General
Topic: Global Market Portfolio as a single ETF?
Replies: 42
Views: 5034

Re: Global Market Portfolio as a single ETF?

RNJ wrote: Tue Oct 31, 2017 1:51 pm 50% VT
25% BND
25% BNDX

Not a perfect match, but not too shabby.
Why split the bond funds when there is BNDW available?
by Steadfast
Wed Oct 21, 2020 10:59 am
Forum: Investing - Theory, News & General
Topic: Global Market Portfolio as a single ETF?
Replies: 42
Views: 5034

Re: Global Market Portfolio as a single ETF?

You can use VT & BNDW.

That's how I would do it.
by Steadfast
Tue Oct 20, 2020 2:05 pm
Forum: Personal Investments
Topic: How much do you allocate to international equity?
Replies: 73
Views: 4701

Re: How much do you allocate to international equity?

About 43% - because that is the global market cap weight. We use Vanguard Total World Stock Index Fund which automagically adjusts U.S./Int'l holdings in accordance with the market. We never have to do anything except stay the course.
by Steadfast
Tue Oct 20, 2020 11:44 am
Forum: Investing - Theory, News & General
Topic: Best way to mitigate the top heaviness of Total Stock Market Funds
Replies: 118
Views: 8619

Re: Best way to mitigate the top heaviness of Total Stock Market Funds

What I love about holding a single, total-market fund (Total World in our case) is that if one or more of the big heavyweights at the top of the index falls - or even if all of them did, entire industries or dominant sectors - the market stands ready to carry out the ruthless calculus about their ne...
by Steadfast
Wed Oct 14, 2020 11:45 am
Forum: Investing - Theory, News & General
Topic: Seriously, what is going on with international?
Replies: 277
Views: 25913

Re: Seriously, what is going on with international?

I'm just going to leave this here. Again. https://www.mymoneyblog.com/wordpress/wp-content/uploads/2017/11/us_intl_cycle-720x268.gif Could you post a "growth of $10,000" chart to go with it? According to the Simba backtesting spreadsheet, from 1969-2019, real returns for the U.S. were 5.9...
by Steadfast
Wed Oct 14, 2020 11:07 am
Forum: Investing - Theory, News & General
Topic: Seriously, what is going on with international?
Replies: 277
Views: 25913

Re: Seriously, what is going on with international?

I'm just going to leave this here. Again. https://www.mymoneyblog.com/wordpress/wp-content/uploads/2017/11/us_intl_cycle-720x268.gif Could you post a "growth of $10,000" chart to go with it? According to the Simba backtesting spreadsheet, from 1969-2019, real returns for the U.S. were 5.9...
by Steadfast
Wed Oct 14, 2020 10:54 am
Forum: Investing - Theory, News & General
Topic: Seriously, what is going on with international?
Replies: 277
Views: 25913

Re: Seriously, what is going on with international?

I'm just going to leave this here. Again.

Image
by Steadfast
Mon Sep 28, 2020 3:45 pm
Forum: Investing - Theory, News & General
Topic: What fund(s) are in your taxable account?
Replies: 138
Views: 9952

Re: What fund(s) are in your taxable account?

VTI, VXUS, and VCADX. Tax efficient.
by Steadfast
Mon Sep 21, 2020 10:28 am
Forum: Investing - Theory, News & General
Topic: Is anyone waiting until after the election?
Replies: 380
Views: 31258

Re: Is anyone waiting until after the election?

Loandapper wrote: Sun Sep 20, 2020 3:29 pm I know, I know: Time in the market, not timing the market.

BUT:

I have some new cash (about 6% of total portfolio) and I'm curious whether anyone else is waiting until after the US election in 45 days?
Why would anyone do that?
by Steadfast
Mon Sep 14, 2020 12:39 pm
Forum: Investing - Theory, News & General
Topic: For those concerned about International Stocks...
Replies: 227
Views: 22835

Re: For those concerned about International Stocks...

Hold VTWAX, a decent bond fund, some cash for emergencies and walk away. I've seen Rick Ferri recommend VTWAX several times. I don't even see US and international indexes as a separate asset class. Most of the time the bickering between international and US is about personal ideologies and performa...
by Steadfast
Thu Sep 10, 2020 2:33 pm
Forum: Personal Investments
Topic: Gripes with VT (Vanguard Total-World ETF, ER .08)?
Replies: 34
Views: 3319

Re: Gripes with VT (Vanguard Total-World ETF, ER .08)?

One big disadvantage to VT in taxable account is the % of international stocks is currently below the threshold to receive the foreign tax credit, which makes VT less efficient than a combination of VTI/VXUS. This is my only gripe with VT. Therefore, we hold VT in tax-advantaged accounts, and the V...
by Steadfast
Thu Sep 03, 2020 2:31 pm
Forum: Investing - Theory, News & General
Topic: Need Help Breaking Through a Mental Accounting Block
Replies: 25
Views: 1964

Re: Need Help Breaking Through a Mental Accounting Block

Our IPS specifies: 1. Money for monthly bills covering about 2-3 months sits in our checking accounts, plus any cash specifically designated for an identified needed near-term purchase or expenditure (vacation, new car, property tax payment, whatever). 2. Cash to cover approximately 6-8 months of ex...
by Steadfast
Sat Apr 04, 2020 7:30 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Intermediate California Muni
Replies: 9
Views: 978

Re: Vanguard Intermediate California Muni

hoops777 wrote: Thu Apr 02, 2020 6:33 pm Any thoughts on this fund and how it will be effected by this crisis?
This fund is our only bond fund. A bit choppy lately, but staying the course.
by Steadfast
Fri Mar 27, 2020 11:38 am
Forum: Investing - Theory, News & General
Topic: Is the 2 Fund Portfolio the new "3 Fund portfolio"?
Replies: 59
Views: 4726

Re: Is the 2 Fund Portfolio the new "3 Fund portfolio"?

I recently re read Jack Bogles thoughts on international investing and essentially, his belief due to the international component of all US stocks now, that an international portion may be unnecessary. With the recent market roller coaster, i am seeing that when a black swan occurs, there really is...
by Steadfast
Mon Mar 16, 2020 4:38 pm
Forum: Investing - Theory, News & General
Topic: Coronavirus and the market
Replies: 4077
Views: 321253

Re: Coronavirus and the market

CT-Scott wrote: Mon Mar 16, 2020 4:22 pm The Dow had its worst point drop ever as stocks tumbled again
Welcome news for long term investors. I'm buying, all the way down.
by Steadfast
Mon Mar 16, 2020 4:34 pm
Forum: Investing - Theory, News & General
Topic: <deleted>
Replies: 85
Views: 7920

Re: Its going to get really bad, so I am Hedging - reducing stock exposure

guyinlaw wrote: Sat Mar 14, 2020 11:42 pm I am hedging, and am reducing my stock exposure significantly..
Thank you - I'm buying.

Cheers.
by Steadfast
Thu Mar 05, 2020 6:02 pm
Forum: Investing - Theory, News & General
Topic: Be fearful when others are greedy. Be greedy when others are fearful.
Replies: 129
Views: 9377

Re: Be fearful when others are greedy. Be greedy when others are fearful.

StormShadow wrote: Thu Mar 05, 2020 5:31 pm People are terrified!
Friend, if you think that this market looks terrifying then you had best find a different hobby. A student of stock market history should find this market to be child's play.
by Steadfast
Mon Mar 02, 2020 2:16 pm
Forum: Investing - Theory, News & General
Topic: Suppose you founded a company like Microsoft or Amazon & have accumulated tremendous wealth. How would you invest?
Replies: 52
Views: 3772

Re: Suppose you founded a company like Microsoft or Amazon & have accumulated tremendous wealth. How would you invest?

Suppose you founded a company like Microsoft or Amazon and accumulated tremendous wealth. You might have an exchange fund (swap fund) to reduce the concentration of your own company in your portfolio. You might also have a charitable or philanthropic foundation. How would you invest? How would you ...
by Steadfast
Wed Feb 26, 2020 9:52 am
Forum: Investing - Theory, News & General
Topic: Total World vs. U.S. plus Ex-US
Replies: 13
Views: 1036

Re: Total World vs. U.S. plus Ex-US

I set my taxable with my US and international indexes to world market cap. It will float by itself according to world market cap as the markets move. When I contribute to taxable I just allocate that money to whatever the taxable allocation is at the time. My tax deffered accounts are in VTWAX. Thi...
by Steadfast
Wed Feb 19, 2020 1:32 pm
Forum: Investing - Theory, News & General
Topic: If you used multiple investment strategies, which would you use and why?
Replies: 271
Views: 11784

Re: If you used multiple investment strategies, which would you use and why?

For the purpose of this discussion, I would like to only discuss situations where investors would (or currently do) limit the 3-fund strategy to no more than 50% of their total portfolio. This is an example portfolio David Swensen (Yale endowment) recommended for individual investors in his excelle...
by Steadfast
Tue Feb 18, 2020 4:26 pm
Forum: Investing - Theory, News & General
Topic: GMO: Total Bond VBTLX Too Risky Now?
Replies: 38
Views: 2969

Re: GMO: Total Bond VBTLX Too Risky Now?

I don't like Total Bond either, because what the total bond market is doing may or may not be what I want my bond portfolio to do. So instead of total bond I use high credit quality intermediate-duration bond funds, because that's the risk profile I want.
by Steadfast
Tue Feb 18, 2020 2:20 pm
Forum: Investing - Theory, News & General
Topic: Are there any sensible alternatives to the globally weighted equity portfolio? [UK investor]
Replies: 23
Views: 1652

Re: Are there any sensible alternatives to the globally weighted equity portfolio?

This is one of the most debated topics on the website. Please use the search function to read the hundreds of threads about it. Meanwhile, I'll just leave this here: https://www.mymoneyblog.com/wordpress/wp-content/uploads/2017/11/us_intl_cycle-720x268.gif Full disclosure: My equity portfolio is equ...
by Steadfast
Tue Feb 11, 2020 5:24 pm
Forum: Investing - Theory, News & General
Topic: How are you buying?
Replies: 12
Views: 955

Re: How are you buying?

With a 75/25 AA what I find myself doing is putting all of my new money into bonds to maintain the AA. Is this the right way to do this? This is the approach I’m taking with my IRA. Or should I allocate my new money at the AA and balance at the end of the year? This is my 401K approach since it’s e...
by Steadfast
Tue Feb 11, 2020 12:40 pm
Forum: Investing - Theory, News & General
Topic: Does International investment still make sense?
Replies: 312
Views: 15963

Re: Does International investment still make sense?

This is a very frequent topic, use the search function to find the hundreds of threads about it. Meanwhile, I'll just leave this here... https://www.mymoneyblog.com/wordpress/wp-content/uploads/2017/11/us_intl_cycle-720x268.gif Full disclosure, I'm a U.S. investor and I invest at global market cap ...
by Steadfast
Mon Feb 10, 2020 3:20 pm
Forum: Investing - Theory, News & General
Topic: Does International investment still make sense?
Replies: 312
Views: 15963

Re: Does International investment still make sense?

This is a very frequent topic, use the search function to find the hundreds of threads about it. Meanwhile, I'll just leave this here... https://www.mymoneyblog.com/wordpress/wp-content/uploads/2017/11/us_intl_cycle-720x268.gif Full disclosure, I'm a U.S. investor and I invest at global market cap (...
by Steadfast
Thu Feb 06, 2020 12:06 am
Forum: Investing - Theory, News & General
Topic: Why are you holding bonds
Replies: 161
Views: 11910

Re: Why are you holding bonds

, (2) provide a second tier emergency fund, after cash (munis in taxable), Quickly, do you actually use muni's in a taxable account for emergency funds? Right now, I'm at Ally, but I am trying to learn about other options. Yes. 100% of our bonds are in Munis. California munis at that. Accessible if...
by Steadfast
Wed Feb 05, 2020 4:47 pm
Forum: Investing - Theory, News & General
Topic: Why are you holding bonds
Replies: 161
Views: 11910

Re: Why are you holding bonds

40-something accumulators, holding 30% of portfolio in bonds to (1) provide diversification from stocks, since bonds can outperform stocks during certain periods, (2) provide a second tier emergency fund, after cash (munis in taxable), (3) control overall portfolio risk -we don't want our exposure t...
by Steadfast
Wed Feb 05, 2020 2:18 pm
Forum: Investing - Theory, News & General
Topic: Well, I am market timing due to coronavirus... Wish me luck.
Replies: 1289
Views: 122302

Re: Well, I am market timing... Wish me luck.

I did it, I just could not help myself. With markets are all time highest and the coronavirus causing China to quarantine 50 million people, the USA stopping all flights to China and China basically putting their economy on hold for a few weeks I had to take some profits and rebalance my investment...
by Steadfast
Mon Feb 03, 2020 2:43 pm
Forum: Investing - Theory, News & General
Topic: A Simple Test In Your Belief In Market Efficiency
Replies: 228
Views: 11221

Re: A Simple Test In Your Belief In Market Efficiency

...how can a true believer in efficient markets be anywhere else than roughly world market cap weighting of their equity portfolio? They can't. Which is why I run equities at exactly global market capitalization. It hurts to do so lately, but I am comforted by the studies showing that international...
by Steadfast
Wed Jan 29, 2020 5:34 pm
Forum: Investing - Theory, News & General
Topic: Munis vs Swensen-style Treasuries in taxable account?
Replies: 14
Views: 1156

Re: Munis vs Swensen-style Treasuries in taxable account?

I like Swensen a lot and he raises some valid points worth considering. And, if I did not have high income taxes and was a mostly tax-advantaged investor, I would favor the 50% TIPS/50% Treasury bond portfolio he recommends in Unconventional Success . Which is a fantastic book. Alas, as a high incom...
by Steadfast
Wed Jan 29, 2020 4:27 pm
Forum: Investing - Theory, News & General
Topic: My Most Hated - and Favorite - IPS Rule
Replies: 24
Views: 3348

Re: My Most Hated - and Favorite - IPS Rule

If you've followed the rules to the letter, you probably have some history of proposals and the self-discussion/rationale/final result (after 90 days). Would you mind sharing? Would be fun to read through ... I have it in table format and it won't cut and paste, but here is a sampling. All the usua...
by Steadfast
Tue Jan 28, 2020 2:17 pm
Forum: Investing - Theory, News & General
Topic: My Most Hated - and Favorite - IPS Rule
Replies: 24
Views: 3348

Re: My Most Hated - and Favorite - IPS Rule

If you've followed the rules to the letter, you probably have some history of proposals and the self-discussion/rationale/final result (after 90 days). Would you mind sharing? Would be fun to read through ... I have it in table format and it won't cut and paste, but here is a sampling. All the usua...
by Steadfast
Mon Jan 27, 2020 3:08 pm
Forum: Investing - Theory, News & General
Topic: My Most Hated - and Favorite - IPS Rule
Replies: 24
Views: 3348

My Most Hated - and Favorite - IPS Rule

The final provision in my very simple IPS reads as follows: Subject changes to this IPS to a 90-day implementation delay (“cooling off period”). Write down the proposed change, the rationale for the change, and review this information after 90 days. Then make a decision to implement the change or no...
by Steadfast
Mon Jan 27, 2020 1:36 pm
Forum: Personal Investments
Topic: Using 100% Muni-Bonds for Bond AA?
Replies: 32
Views: 2722

Re: Using 100% Muni-Bonds for Bond AA?

OP, We are in your exact same tax brackets, and also in California. We run a 75% equity, 25% bond portfolio right now, about 60% of it in taxable. We have 100% of bonds in VCADX (Vanguard California Intermediate-Term Tax Exempt Munis). This sleepy, cheap, muni fund's distributions are tax exempt at ...
by Steadfast
Fri Jan 24, 2020 4:25 pm
Forum: Personal Investments
Topic: How do you deal with taxes?
Replies: 40
Views: 4011

Re: How do you deal with taxes?

I have around $9k in dividends for 2019 (on a portfolio size of half a million) and as my taxable account grows this tax liability at tax time is getting larger and larger. I unfortunately live in CA which has no special treatment for qualified dividends so the tax is 15% Fed + 9.3% CA state or a t...
by Steadfast
Tue Jan 21, 2020 12:59 pm
Forum: Investing - Theory, News & General
Topic: ETF to Hold for 50 Years
Replies: 118
Views: 11097

Re: ETF to Hold for 50 Years

Another vote for VT.
by Steadfast
Mon Jan 20, 2020 2:38 pm
Forum: Investing - Theory, News & General
Topic: Bonds in taxable
Replies: 65
Views: 4570

Re: Bonds in taxable

Vanguard California Intermediate-Term Tax Exempt (VCADX) makes good sense to me. We are fortunate to be in the highest tax brackets. Distributions from this fund are Federal and state tax free. This may make sense in your tax bracket but one has to be careful here... the SEC yield on this fund is 1...
by Steadfast
Sun Jan 19, 2020 10:48 am
Forum: Investing - Theory, News & General
Topic: Bonds in taxable
Replies: 65
Views: 4570

Re: Bonds in taxable

We hold our entire bond allocation in taxable (also hold much of our equity in taxable). Vanguard California Intermediate-Term Tax Exempt (VCADX) makes good sense to me. We are fortunate to be in the highest tax brackets. Distributions from this fund are Federal and state tax free. I’ll take it! The...
by Steadfast
Wed Jan 15, 2020 4:16 pm
Forum: Investing - Theory, News & General
Topic: Do you like CHEAP active funds? Which ones?
Replies: 21
Views: 1538

Re: Do you like CHEAP active funds? Which ones?

More than 75% of my bond allocation is in Vanguard's California Intermediate-Term Tax-Exempt Bond Fund (VCADX). It's actively managed but ER is 0.09%. As a California resident fortunate enough to be subject to the highest tax rates, I like it. There are passive, index alternatives that I pass on suc...