I am not an expert in the areas you are investigating; however, one thing I know with confidence is that you can immediately sell the shares in the IRA, and reinvest them in equities, bonds, balanced funds (if interested, take a look at Balanced Index).
And Mullins makes a good point, i.e., if you gift the non-IRA shares, you could be setting up future taxes for heirs that is greater than the loss of a black swan event for the LLY shares in the brokerage account--this, of course, is a guess, as Nate79 points out.
Finding out how the dividends are being handled will add valuable information re the shares in the brokerage account.
peace
Search found 486 matches
- Thu Mar 21, 2024 5:08 pm
- Forum: Personal Investments
- Topic: Highly Concentrated Position In Zero Cost Basis Holding
- Replies: 23
- Views: 1444
- Tue Feb 27, 2024 1:19 pm
- Forum: Personal Investments
- Topic: Feel like I won the "game" at 41---Thoughts on Future Asset Allocation
- Replies: 21
- Views: 3998
Re: Feel like I won the "game" at 41---Thoughts on Future Asset Allocation
Given the following:
-the description of your family's current financial allocation and your satisfaction with it,
-the fact that you are obviously cautious,
-the fact that a massive financial/cultural transition is occurring and will continue to occur in your lifetime,
-the current fully priced tech stock sector,
-the fact that you are inclined not to sell current investments in order to add to equity, you might want to consider the Vanguard Tax-managed Balanced Fund for your additional investments, or a risker combination of equal investments in the Balanced Fund and the Total Stock Market Index Fund (or, if you want international exposure, the Total World Stock Index Fund).
Peace
-the description of your family's current financial allocation and your satisfaction with it,
-the fact that you are obviously cautious,
-the fact that a massive financial/cultural transition is occurring and will continue to occur in your lifetime,
-the current fully priced tech stock sector,
-the fact that you are inclined not to sell current investments in order to add to equity, you might want to consider the Vanguard Tax-managed Balanced Fund for your additional investments, or a risker combination of equal investments in the Balanced Fund and the Total Stock Market Index Fund (or, if you want international exposure, the Total World Stock Index Fund).
Peace
- Tue Feb 27, 2024 1:04 pm
- Forum: Personal Investments
- Topic: Quality Factor ETFs: QUAL vs. VFQY
- Replies: 12
- Views: 1229
Re: Quality Factor ETFs: QUAL vs. VFQY
Vanguard Dividend Appreciation Fund/ETF (VIG) does not advertise as a 'quality' factor investment; however, among its screens there is one which is not theoretical: a company must have increased its dividend for ten consecutive years before being considered for the portfolio. (Only last year did it add Apple to the portfolio.) Only then are other screens applied. VIG is not a high yield investment. The yield is slightly above the S&P 500 yield. VIG's average annual 10 year total return is modestly below the S&P 500, and QUAL ETFS. No 10-year info on VFQY; its 5 yr return is higher than VIG. I have held VIG since it opened. I would have had better results with the S&P 500; however, I already own Total Stock Market Index ETF (VTI)...
- Mon Jan 22, 2024 11:14 pm
- Forum: Personal Finance (Not Investing)
- Topic: Psychological Aversion to Decumulation Phase
- Replies: 73
- Views: 7446
Re: Psychological Aversion to Decumulation Phase
Catchinup, Your aversion is normal in my circle of family and friends, including myself. You are wise to name it and ask for feedback. Without knowing your financial statement (especially debt service), your current health status, your insurance coverage, and your immediate family's take on your 'panic,' I offer the following generic suggestions, which likely you have already done. I suggest you (and spouse or power-of attorney) meet with someone knowledgeable about finance, professional perhaps but not necessarily. Mainly knowledgeable ad trustworthy. Make a prudent calculation of your foreseeable annual spending in retirement. Review your asset allocation for peace of mind in the decumulation phase. Estimate how much you will need to with...
- Tue Jan 02, 2024 9:48 pm
- Forum: Personal Investments
- Topic: Is There Any Reason For Or Against Keeping Money In Settlement Fund Instead of VMFXX?
- Replies: 11
- Views: 1571
Re: Is There Any Reason For Or Against Keeping Money In Settlement Fund Instead of VMFXX?
When I switched from the old platform to the brokerage platform, I ended up with a settlement MM in the brokerage account, and a regular MM in the mutual fund account.
The V rep informed me that it is OK to use both MM funds, that they are the same Federal MM fund, BUT should I purchase stocks I would need to transfer the money needed to pay for the stocks from the regular MM into the settlement brokerage MM account (if there is not sufficient money already available).
For simplicity, I transferred all cash in my regular MM account to the brokerage MM fund.
My regular MM account remains open to receive all cash dividends paid by my other funds.
peace
The V rep informed me that it is OK to use both MM funds, that they are the same Federal MM fund, BUT should I purchase stocks I would need to transfer the money needed to pay for the stocks from the regular MM into the settlement brokerage MM account (if there is not sufficient money already available).
For simplicity, I transferred all cash in my regular MM account to the brokerage MM fund.
My regular MM account remains open to receive all cash dividends paid by my other funds.
peace
- Fri Dec 29, 2023 3:31 pm
- Forum: Personal Investments
- Topic: Balanced fund?
- Replies: 15
- Views: 2454
Re: Balanced fund?
I suggest you enter: VBIAX Why Not? in the search engine. Read the communications you find there. You will be amazed, especially at what NisiPrius writes in a couple of responses. The Vanguard Balanced Index Fund over intermediate and long term periods has been amazing in its investment results, without the panic that can be induced by 100% stock portfolios. Moreover, the Admiral shares are cheap, not inexpensive, I mean cheap. I have not found a cheaper balanced fund--0.07 basis points per annum. I have compared VBIAX over long term periods with Dodge and Cox, Rowe Price, Fidelity and American Group managed balanced funds. VBIAX matches or surpasses all those managed funds. VBIAX rarely distributes capital gains, which are small when they ...
- Wed Dec 27, 2023 5:49 am
- Forum: Personal Investments
- Topic: Large Cap Value Fund
- Replies: 3
- Views: 494
Re: Large Cap Value Fund
For indexed higher dividend yield, consider High Dividend Yield Fund/etf
for a bit broader diversification, Value Indexed Fund/etf,
for managed version, Equity Income Fund
Happy New Year
for a bit broader diversification, Value Indexed Fund/etf,
for managed version, Equity Income Fund
Happy New Year
- Mon Oct 23, 2023 9:13 am
- Forum: Investing - Theory, News & General
- Topic: Which version of 60/40 is less risky?
- Replies: 23
- Views: 2866
Re: Which version of 60/40 is less risky?
If you use Vanguard's 'compare' tool, you will see that the Wellington Fund managed 65-35 portfolio, and the Balanced Index 60-40 portfolio yield, over 10 years, very similar capital growth and dividend yields. Wellington does not rebalance automatically on a daily basis as Balanced Index does.
Wellington will produce more taxable capital gains distributions than Balanced Index, but the 10 year chart shows that results after taxes on distributions and sale of shares, the two funds perform in a similar way.
I know this is not a reply to the question you asked, but it offers a real time comparison between moderately conservative balanced funds, one indexed with daily rebalancing, the other managed with flexible rebalancing.
peace
Wellington will produce more taxable capital gains distributions than Balanced Index, but the 10 year chart shows that results after taxes on distributions and sale of shares, the two funds perform in a similar way.
I know this is not a reply to the question you asked, but it offers a real time comparison between moderately conservative balanced funds, one indexed with daily rebalancing, the other managed with flexible rebalancing.
peace
- Fri Jun 30, 2023 3:59 pm
- Forum: Personal Investments
- Topic: Need some BH guidance for my next move.
- Replies: 25
- Views: 3148
Re: Need some BH guidance for my next move.
Topic Author,
You are being asked important questions and offered quality opinions.
Peace
You are being asked important questions and offered quality opinions.
Peace
- Thu May 11, 2023 5:10 pm
- Forum: Investing - Theory, News & General
- Topic: Need few sentence rationale for why people should avoid financial advisors
- Replies: 187
- Views: 15966
Re: Need few sentence rationale for why people should avoid financial advisors
If a person truly wants to invest in stock and bonds, and is at the beginning of a career,
BUT does not have time, interest and/or skill needed, and does not intend to make time, nor develop interest, nor acquire skills,
why not consider opening an account at Vanguard and use the Balanced Index Fund for all your accounts: taxable, and deferred tax, and tax free Roth?
What would be simpler? More prudent? Remember, we are talking about someone who wants to invest in markets, who wants to avoid an advisor, and who does not want to learn anything about personal investing.
This approach is far more promising than using CDs for lifetime investments, or doing nothing and let money evaporate in a checking account.
Comments welcomed.
Peace
BUT does not have time, interest and/or skill needed, and does not intend to make time, nor develop interest, nor acquire skills,
why not consider opening an account at Vanguard and use the Balanced Index Fund for all your accounts: taxable, and deferred tax, and tax free Roth?
What would be simpler? More prudent? Remember, we are talking about someone who wants to invest in markets, who wants to avoid an advisor, and who does not want to learn anything about personal investing.
This approach is far more promising than using CDs for lifetime investments, or doing nothing and let money evaporate in a checking account.
Comments welcomed.
Peace
- Tue Apr 04, 2023 3:16 pm
- Forum: Personal Investments
- Topic: Trouble logging into Vanguard
- Replies: 8
- Views: 756
Re: Trouble logging into Vanguard
Yes, I tried three times to secure a code, none ever arrived.
I did business by telephone.
peace
I did business by telephone.
peace
- Fri Mar 31, 2023 1:33 pm
- Forum: Personal Investments
- Topic: Pan
- Replies: 42
- Views: 4796
Re: Investing in VT
From your self-description, i.e., up-to-now a saver, not an investor, it surprises me that you want to invest $100,000 for 10+ years in 100% global equity.
As pointed out above, ten years does not guarantee a capital gain.
Investing seems like a reasonable option for a lifetime saver; however, you may want to look at one of the Life Strategy funds, with four levels of global equity exposure and corresponding bond exposure. Even the 80% equity/20% bond allocation would provide a bit of relief during stock bear markets.
peace
As pointed out above, ten years does not guarantee a capital gain.
Investing seems like a reasonable option for a lifetime saver; however, you may want to look at one of the Life Strategy funds, with four levels of global equity exposure and corresponding bond exposure. Even the 80% equity/20% bond allocation would provide a bit of relief during stock bear markets.
peace
- Fri Mar 31, 2023 1:30 pm
- Forum: Personal Investments
- Topic: Pan
- Replies: 42
- Views: 4796
Re: Investing in VT
From your self-description, i.e., up-to-now a saver, not an investor, it surprises me that you want to invest $100,000 for 10+ years in 100% global equity.
As pointed out above, ten years does not guarantee a capital gain.
Investing seems like a reasonable option for a lifetime saver; however, you may want to look at one of the Life Strategy funds, with four levels of global equity exposure and corresponding bond exposure. Even the 80% equity/20% bond allocation would provide a bit of relief during stock bear markets.
peace
As pointed out above, ten years does not guarantee a capital gain.
Investing seems like a reasonable option for a lifetime saver; however, you may want to look at one of the Life Strategy funds, with four levels of global equity exposure and corresponding bond exposure. Even the 80% equity/20% bond allocation would provide a bit of relief during stock bear markets.
peace
- Tue Jan 17, 2023 6:47 pm
- Forum: Personal Investments
- Topic: Investing for elderly mother-in-law--opinions please?
- Replies: 75
- Views: 6226
Re: Investing for elderly mother-in-law--opinions please?
You wrote that she "is reluctantly turning over the reins" to you, and did not share her financial information with you prior to the current situation.
Yes, assist her.
However, before you make the move to invest her assets, ask an attorney if your investment plan meets the 'prudent person' rule. Get his response in writing.
Remember, you are liable, in your role, for her well-being.
peace
maj
Yes, assist her.
However, before you make the move to invest her assets, ask an attorney if your investment plan meets the 'prudent person' rule. Get his response in writing.
Remember, you are liable, in your role, for her well-being.
peace
maj
- Sat Jan 14, 2023 7:00 pm
- Forum: Investing - Theory, News & General
- Topic: WSJ: The Case Against Frequent Rebalancing of Portfolios
- Replies: 177
- Views: 17123
Re: WSJ: The Case Against Frequent Rebalancing of Portfolios
Cocoa Beach Bum, Beensabu,
Thanks much.
Peace
maj
Thanks much.
Peace
maj
- Sat Jan 14, 2023 4:06 pm
- Forum: Investing - Theory, News & General
- Topic: WSJ: The Case Against Frequent Rebalancing of Portfolios
- Replies: 177
- Views: 17123
Re: WSJ: The Case Against Frequent Rebalancing of Portfolios
Can anyone summarize what Jason Zweig recently wrote in the WSJ about the 60-40 portfolio?
Thanks
maj
Thanks
maj
- Thu Nov 17, 2022 3:12 pm
- Forum: Personal Investments
- Topic: How to invest 600k?
- Replies: 24
- Views: 4383
Re: How to invest 600k?
I must have missed something.
How old are you?
Are you healthy?
Are these investments in a tax-deferred account? Or Taxable?
If you are middle-aged or in poor health, or both, and fearful of losing a lot in a bear market but still want to have equity investments, put the $600,000 in the Balanced Index Fund, 60% total USA stock market, 40% total USA bond market.
Your alternatives imply more risk than you currently bear, or demand time you don't readily have.
peace
How old are you?
Are you healthy?
Are these investments in a tax-deferred account? Or Taxable?
If you are middle-aged or in poor health, or both, and fearful of losing a lot in a bear market but still want to have equity investments, put the $600,000 in the Balanced Index Fund, 60% total USA stock market, 40% total USA bond market.
Your alternatives imply more risk than you currently bear, or demand time you don't readily have.
peace
- Wed Aug 24, 2022 5:00 pm
- Forum: Personal Investments
- Topic: I have 500k to invest but keep procrastinating
- Replies: 290
- Views: 51483
Re: I have 500k to invest but keep procrastinating
I suggest you respect both your emotions and reality. Been down this road with many folks over the years. Respect your hesitancy for risk and volatility -and- equally respect reality: one must invest assets. I second the remarks already made which focus on a balanced fund. Yes, indeed, a balanced fund denies you the ability to take losses and gains at your own leisure. So what? You have stated you are not interested in that leisure as it would increase your anxiety. Respect that anxiety! Depending on your tax status, I suggest you consider investing in either the Vanguard Balanced Index Fund (60% US stock market + 40% US bond market) -or- the Vanguard Tax-Managed Balanced Fund (50% US stock market + 50% US Tax Free Bonds). Balanced Index i...
- Fri Apr 08, 2022 9:51 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard Customer Service Mega-thread
- Replies: 1514
- Views: 169525
Re: Vanguard Customer Service Mega-thread
"Going Up"
Thank you for this info re checking service.
I do not recall 'opting in.' It may be my fault for not catching the email from V.
Appreciate your assist.
maj
Peace
Thank you for this info re checking service.
I do not recall 'opting in.' It may be my fault for not catching the email from V.
Appreciate your assist.
maj
Peace
- Fri Apr 08, 2022 8:04 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard Customer Service Mega-thread
- Replies: 1514
- Views: 169525
Re: Disappointed in Vanguard
For Vanguard's sake, I will add a chorus. (I assume V management checks Boglehead comments about the company.) I am 40 years a Vanguard customer (and have brought many family members, friends, and our pension plan to V). About two months ago I was notified that a check I wrote on my MM account, as a gift, had been rejected by Vanguard. I found this only because I occasionally check my account for Messages. I should have been sent a direct email when this error was discovered by V. I called, explained the issue, and asked to have the check cancelled and asked if I can write another check without it being rejected. I was put on hold 3 times, for a total of 57 minutes. The last hold was 22 minutes, until I finally hung up. The reps with whom I...
- Thu Mar 03, 2022 9:28 am
- Forum: Investing - Theory, News & General
- Topic: What is the logic behind a 60:40 portfolio
- Replies: 161
- Views: 18550
Re: What is the logic behind a 60:40 portfolio
I agree with Taylor, i.e., allocation should be made on the basis of individual tolerance, and adjusted as circumstances require. I find 60/40 is helpful, as follows: 1. Personally, when I am confounded by long-term market possibilities and simultaneously prudence tells me I ought to invest. 2. Organizationally, when trying to set an allocation, by a board of trustees, for an endowment, pension, trust, which provides for multiple individuals with varying needs with a 'forever' timeline. The pro-stock and the pro-bond trustees will usually grunt, moan and compromise with a 60/40 allocation for many reasons: it appears to be a prudent decision (supported by history); it frees the trustees from liability for mismanagement; it both takes profit...
- Fri Jan 28, 2022 8:35 am
- Forum: Investing - Theory, News & General
- Topic: Jeremy Grantham (Jan 26, 2022) being asked a lot of tough questions about his super bubble call...
- Replies: 601
- Views: 72807
Re: Jeremy Grantham (Jan 26, 2022) being asked a lot of tough questions about his super bubble call...
These brutally candid observations, which appear here at times, are most helpful in reminding me of the basics of stock market investment following John Bogle's lead.
Clinically, I have learned that situational depressions are often successfully treated by this simple suggestion: "Lower your expectations."
Freud called it 'reality testing.'
In English grammar it is the difference between the declarative mood ('what is') and the subjunctive mood ('what if').
Thanks to you all.
peace
Clinically, I have learned that situational depressions are often successfully treated by this simple suggestion: "Lower your expectations."
Freud called it 'reality testing.'
In English grammar it is the difference between the declarative mood ('what is') and the subjunctive mood ('what if').
Thanks to you all.
peace
- Fri Jan 14, 2022 11:33 am
- Forum: Investing - Theory, News & General
- Topic: Is there a safe amount of money for retirement?
- Replies: 120
- Views: 12574
Re: Is there a safe amount of money for retirement?
Depends on whether or not you have a safe budget for retirement.
peace
peace
- Fri Jan 07, 2022 3:36 pm
- Forum: Personal Investments
- Topic: LifeStrategy vs Four Fund approach
- Replies: 16
- Views: 2641
Re: LifeStrategy vs Four Fund approach
I understand that Vanguard is soon to reduce the management fee for LS funds to around .08%.
An investment split of 50% LS Growth
and 50% Balanced Index
reduces the international exposure to about 16%.
peace
An investment split of 50% LS Growth
and 50% Balanced Index
reduces the international exposure to about 16%.
peace
- Tue Dec 14, 2021 2:36 pm
- Forum: Investing - Theory, News & General
- Topic: Could a dividend portfolio make sense?
- Replies: 98
- Views: 8505
Re: Could a dividend portfolio make sense?
PNWpilot,
I suspect you do not know the whole story of your friend's investment history.
Nor that you know much about his investment advisor.
Please, be careful.
Half of my investments are in two Vanguard dividend funds, High Dividend Yield Index, and Dividend Appreciation Index. Owned them since the day they were offered, never sold during bear markets, have gradually growing stream of dividend income and market growth in principal.
The other half is in Vanguard total market index funds.
And I rest easy since SEC registration of these funds assures me they are not Ponzi schemes.
Be careful, please.
peace
I suspect you do not know the whole story of your friend's investment history.
Nor that you know much about his investment advisor.
Please, be careful.
Half of my investments are in two Vanguard dividend funds, High Dividend Yield Index, and Dividend Appreciation Index. Owned them since the day they were offered, never sold during bear markets, have gradually growing stream of dividend income and market growth in principal.
The other half is in Vanguard total market index funds.
And I rest easy since SEC registration of these funds assures me they are not Ponzi schemes.
Be careful, please.
peace
- Tue Nov 30, 2021 12:49 pm
- Forum: Personal Finance (Not Investing)
- Topic: 2.75M nest egg, 84K expenses: Can we take a break/slow down?
- Replies: 44
- Views: 9013
Re: 2.75M nest egg, 84K expenses: Can we take a break/slow down?
Be careful.
Two young children. One of you are approaching entry into middle age.
Have sufficient life insurance in the event one of you die, leaving the other to rear and educate young children?
Have long-term care health insurance?
Define mini-retirement. Both of you? Will one of you have access to employer sponsored health insurance?
What percent of reduction in salaried income will you experience in mini-retirement?
Do you have tax-deferred investments in your assets? You are years away from penalty free access to IRA/401k.
You are wise to ask for the opinions of others.
eace
Two young children. One of you are approaching entry into middle age.
Have sufficient life insurance in the event one of you die, leaving the other to rear and educate young children?
Have long-term care health insurance?
Define mini-retirement. Both of you? Will one of you have access to employer sponsored health insurance?
What percent of reduction in salaried income will you experience in mini-retirement?
Do you have tax-deferred investments in your assets? You are years away from penalty free access to IRA/401k.
You are wise to ask for the opinions of others.
eace
- Sat Nov 20, 2021 6:13 am
- Forum: Investing - Theory, News & General
- Topic: Would it be dumb for someone who is about 30 years old to go 100% into Vanguard Total World?
- Replies: 109
- Views: 6203
Re: Would it be dumb for someone who is about 30 years old to go 100% into Vanguard Total World?
Given a few of the suggestions above, you might consider the LifeStrategy Growth Fund--80/20.
You will miss the last froth of a bull market and you will modestly lessen the regret of a bear market.
My point is more protective of emotions than financials.
peace
You will miss the last froth of a bull market and you will modestly lessen the regret of a bear market.
My point is more protective of emotions than financials.
peace
- Wed Nov 10, 2021 8:15 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard Personal Advisor Services Introduces Five-Fund Active Equity Offer
- Replies: 168
- Views: 15105
Re: Vanguard Personal Advisor Services Introduces Five-Fund Active Equity Offer
Alas, as old folks know, 'nothing lasts.'
We have to know that eventually top management at Vanguard, far removed from John Bogle, will suggest that Vanguard de-mutualize, offer shares to current investors, and become a for-profit commercial corporation--paying 'dividends,' of course.
The current 'mutual' nature of Vanguard's incorporation provides us with major untaxed 'dividends' via at-cost investment services; however, there is lurking a 'true' capitalist, one of the "I am the smartest guy in the room" heroes who will stack the Board of trustees with his (yes, it will be a male) buddies and, voila!, Vanguard is now a blue chip stock.
Nothing lasts.
Peace, good and helpful friends.
We have to know that eventually top management at Vanguard, far removed from John Bogle, will suggest that Vanguard de-mutualize, offer shares to current investors, and become a for-profit commercial corporation--paying 'dividends,' of course.
The current 'mutual' nature of Vanguard's incorporation provides us with major untaxed 'dividends' via at-cost investment services; however, there is lurking a 'true' capitalist, one of the "I am the smartest guy in the room" heroes who will stack the Board of trustees with his (yes, it will be a male) buddies and, voila!, Vanguard is now a blue chip stock.
Nothing lasts.
Peace, good and helpful friends.
- Wed Nov 03, 2021 4:28 pm
- Forum: Investing - Theory, News & General
- Topic: Why did LifeStrategy Conservative Growth lose about twice as much as Wellesley in 2008 when they are both 40/60 funds?
- Replies: 5
- Views: 1654
Re: Why did LifeStrategy Conservative Growth lose about twice as much as Wellesley in 2008 when they are both 40/60 fund
Which of the funds recovered better after 2008?
Their equity components are significantly different.
peace
Their equity components are significantly different.
peace
- Wed Sep 29, 2021 1:11 pm
- Forum: Personal Consumer Issues
- Topic: Would you buy a new car if [old car] runs well but has cosmetic issues?
- Replies: 69
- Views: 5907
Re: Would you buy a new car if [old car] runs well but has cosmetic issues?
Drive it a while longer (assuming it is safe), see if the stock market bubble bursts, and the chip shortage vanishes, and cars become less expensive,
then give your car to charity and pay cash for a modest car--year end model.
peace
then give your car to charity and pay cash for a modest car--year end model.
peace
- Sun Sep 19, 2021 4:22 pm
- Forum: Personal Investments
- Topic: Income investment strategy
- Replies: 20
- Views: 3213
Re: Income investment strategy
If you want income, and agree that earning 6-10% at this time is too risky, are you able to settle for a reasonably safe stock investment, highly diversified, like Vanguard High Dividend Yield Fund. If you can stomach bear markets , you can--long term--reasonably assume you have a quality income stock investment.
peace
peace
- Tue Aug 24, 2021 3:19 pm
- Forum: Personal Investments
- Topic: Everything in VBIAX - Vanguard Balanced Index Fund
- Replies: 24
- Views: 9234
Re: Everything in VBIAX - Vanguard Balanced Index Fund
Balanced Index, with all its negatives, is an amazing investment over the decades.
You are buying low and selling high with a cheap management fee. While many others are buying high and selling low.
Very little capital gains realized when selling.
If you want modest international exposure, split your money 50-50 between Balanced Index Admiral and Life Strategy Growth Fund or Life Strategy Moderate Growth Fund. Then let it be!
In your 40's? When you retire, folks will ask you, who is your financial advisor?
peace
You are buying low and selling high with a cheap management fee. While many others are buying high and selling low.
Very little capital gains realized when selling.
If you want modest international exposure, split your money 50-50 between Balanced Index Admiral and Life Strategy Growth Fund or Life Strategy Moderate Growth Fund. Then let it be!
In your 40's? When you retire, folks will ask you, who is your financial advisor?
peace
- Fri Aug 20, 2021 7:33 am
- Forum: Investing - Theory, News & General
- Topic: What has Vanguards Total Bond Fund Returned as of late?
- Replies: 33
- Views: 5101
Re: What has Vanguards Total Bond Fund Returned as of late?
Morningstar posted an in-depth analysis of V Total Bond Index this morning, as a lead article.
peace
peace
- Sat May 22, 2021 11:20 am
- Forum: Personal Investments
- Topic: Is there a "reasonably safe" 100% stock mutual fund?
- Replies: 43
- Views: 7335
Re: Is there a "reasonably safe" 100% stock mutual fund?
Keeping in mind the above issues and questions re your total financial situation:
If you still want a reasonably safe market investment in a taxable account, consider the Balanced Index Fund Admiral Shares. It is 60% USA total stock market, and 40% USA total bond market.
If you want a bit of international equity, then split the money between the Balanced Index Fund and the LifeStrategy Moderate Growth Fund, which will give you a modest exposure to the Total International Stock Fund.
Tax issues aside, these funds are cheap, highly diversified, and automatically balance the asset allocations.
peace
If you still want a reasonably safe market investment in a taxable account, consider the Balanced Index Fund Admiral Shares. It is 60% USA total stock market, and 40% USA total bond market.
If you want a bit of international equity, then split the money between the Balanced Index Fund and the LifeStrategy Moderate Growth Fund, which will give you a modest exposure to the Total International Stock Fund.
Tax issues aside, these funds are cheap, highly diversified, and automatically balance the asset allocations.
peace
- Thu May 20, 2021 10:51 am
- Forum: Investing - Theory, News & General
- Topic: Wellington Fund
- Replies: 83
- Views: 13008
Re: Wellington Fund
I may have missed this point while reading the above.
Investment results which are before-taxes, and which are after-taxes, are important if investing in a taxable account.
Sometime ago I roughly estimated that after-taxes, Balanced Index is a bit superior to Wellington on a very long term basis.
In either case, I have, for years, been impressed how closely matched Balanced and Wellington are to one another.
peace
Investment results which are before-taxes, and which are after-taxes, are important if investing in a taxable account.
Sometime ago I roughly estimated that after-taxes, Balanced Index is a bit superior to Wellington on a very long term basis.
In either case, I have, for years, been impressed how closely matched Balanced and Wellington are to one another.
peace
- Mon May 17, 2021 2:00 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard to Open New Office in Dallas
- Replies: 23
- Views: 3825
Re: Vanguard to Open New Office in Dallas
Today ATT admitted its big mistake and is spinning off part of its conglomerate to focus on its core.
Is Vanguard headed down the same path?
With increasing problems being reported re poor customer service and long telephone waits, why expand an elite service for the benefit of only a tiny percent of customers?
Put the money where it is most needed--an abundance of 'perfectly' trained reps.
peace
Is Vanguard headed down the same path?
With increasing problems being reported re poor customer service and long telephone waits, why expand an elite service for the benefit of only a tiny percent of customers?
Put the money where it is most needed--an abundance of 'perfectly' trained reps.
peace
- Mon May 10, 2021 2:36 pm
- Forum: Personal Finance (Not Investing)
- Topic: How to convert solo 401(k) Roth to regular Roth?
- Replies: 6
- Views: 439
Re: How to convert solo 401(k) Roth to regular Roth?
I called Vanguard, was forwarded to Retirement Rep, who walked me through the process.
Above all, a Direct Rollover. You do not want to have that check in your hands.
peace
Above all, a Direct Rollover. You do not want to have that check in your hands.
peace
- Sat May 08, 2021 8:03 am
- Forum: Personal Investments
- Topic: Tips to convince my Dad about Index Funds?
- Replies: 57
- Views: 5897
Re: Tips to convince my Dad about Index Funds?
If you want to show him the difference between conservative managed and indexed funds, just create at Vanguard the 10 year comparison between the admiral classes of Wellington and Balanced Index.
In each category Balanced outperformed Wellington by a small margin--with less burden of paying capital gains taxes, and far less worry about management error.
This is not an investment suggestion for your dad.
peace
In each category Balanced outperformed Wellington by a small margin--with less burden of paying capital gains taxes, and far less worry about management error.
This is not an investment suggestion for your dad.
peace
- Fri Apr 30, 2021 1:43 pm
- Forum: Personal Investments
- Topic: Self management of retirement funds
- Replies: 30
- Views: 3334
Re: Self management of retirement funds
I suggest you call Vanguard's 800 number, and remain on the line for a rep rather than leave your telephone number.
Every institution has problems at various times. I would not reject Vanguard until you have had a conversation with a rep.
peace
Every institution has problems at various times. I would not reject Vanguard until you have had a conversation with a rep.
peace
- Thu Apr 15, 2021 6:46 am
- Forum: Investing - Theory, News & General
- Topic: For a 40/60 Allocation, what would you choose ?
- Replies: 33
- Views: 4588
Re: For a 40/60 Allocation, what would you choose ?
If 40% allocation to international stock is too much, it can be reduced by investing 50% in Balanced Index Fund and 50% in LifeStrategy Moderate Growth Fund. And maybe rebalance annually. Or maybe not rebalance.
peace
peace
- Mon Jan 18, 2021 2:00 pm
- Forum: Personal Investments
- Topic: Investment Advice for Son
- Replies: 19
- Views: 1638
Re: Investment Advice for Son
The advice given above is healthy--study, do not hire money manager, put in a treasury or federal MM fund, etc. If he insists on being invested before doing the healthy things, at age 25, employed, saving money, then suggest that he split $400,000 between Vanguard Balanced Index Fund and Vanguard LifeStrategy Growth Fund, reinvest all dividends and capital gains until he needs to take dividends to pay for kids' college educations in about 20 years. Between these two funds, he begins his investments with a 70% stock, 30% bond allocation indexed globally, with no decisions to make. I hope he understands just how fortunate he is. That leaves him $100,000 to buy and sell stocks until he weeps with regret, or buy a Tesla, or go travel the world,...
- Mon Dec 28, 2020 9:41 am
- Forum: Personal Consumer Issues
- Topic: Tips for Frugal Living
- Replies: 284
- Views: 33278
Re: Tips for Frugal Living
If you know who you are you will reality-test.
If you do not know who you are, nothing matters.
If you do not know who you are, nothing matters.
- Mon Sep 28, 2020 1:55 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard's Wellesley Income fund is incredible
- Replies: 716
- Views: 177713
Re: Vanguard's Wellesley Income fund is incredible
Use index funds for many years, still do in taxable accounts. Beginning to take withdrawals from tax-deferred accounts. I have 45% in Wellesley and 45% in LifeStrategy Income Wellesley is managed 65-35% quality corporate bonds - quality dividend paying stocks LS Income is indexed 80-20% quality gov't & corp. bonds - total usa and international stock indexes 10% in very short-term managed bond fund, from which mandatory withdrawals are taken. (I replenish from which ever of the other two funds has outperformed.) Keeps my tax-deferred portfolio in about 25% in equities. Why use managed Wellesley fund? Because I cannot find equivalent 65%-35% index income fund. If there were a Vanguard fund composed of 60% High Dividend Yield Fund and 40% ...
- Thu Sep 17, 2020 3:32 pm
- Forum: Personal Finance (Not Investing)
- Topic: What one Book to read about personal finance?
- Replies: 40
- Views: 3471
Re: What one Book to read about personal finance?
The Only Investment Guide You will Ever Need
Andrew Tobias
Andrew Tobias
- Fri Jul 24, 2020 3:26 pm
- Forum: Non-US Investing
- Topic: I'm 30. Should I diversify or stay 100% in equities?
- Replies: 34
- Views: 6081
Re: I'm 30. Should I diversify or stay 100% in equities?
I may have missed the type of stocks in which you currently invest. I hope it is a global index fund. I will share this with you. I am old, really old. Done lots of investing in stocks for decades: individual stocks, mutual funds, managed, indexed, sector and diversified. Have done OK over the long term but have not beat the USA stock market. About 25 years ago Vanguard (USA) opened the LifeStrategy Funds, four of them: 80/20, 60/40, 40/60, 20/80. I was tired of trying to do it myself. so I invested a major assets in the LifeStrategy Growth Fund (80/20) when it opened. Over time it has become invested in 4 index funds: Total USA stock index 48%; Total International stock index 32%; Total USA bond index 14%; Total International bond index 6%...
- Tue Jun 30, 2020 11:20 am
- Forum: Investing - Theory, News & General
- Topic: Was Vanguard's LifeStrategy Funds ACTIVELY Managed in the Past?
- Replies: 13
- Views: 1607
Re: Was Vanguard's LifeStrategy Funds ACTIVELY Managed in the Past?
Sycamore, thanks for the correction. I should have been more careful.
Yes, at the time I made the move to split between the two funds, I noted the the international would be 16%. I decided that 16% was enough at my age, and I wanted the simplicity of a 50-50 re-balancing occasionally.
The two funds are in my IRA.
However, I have reached the conclusion that I will not worry about minor tax increases in my taxable allocations since bond yields are so low, and will likely remain low as long as I live.
peace
Yes, at the time I made the move to split between the two funds, I noted the the international would be 16%. I decided that 16% was enough at my age, and I wanted the simplicity of a 50-50 re-balancing occasionally.
The two funds are in my IRA.
However, I have reached the conclusion that I will not worry about minor tax increases in my taxable allocations since bond yields are so low, and will likely remain low as long as I live.
peace
- Tue Jun 30, 2020 9:51 am
- Forum: Investing - Theory, News & General
- Topic: Was Vanguard's LifeStrategy Funds ACTIVELY Managed in the Past?
- Replies: 13
- Views: 1607
Re: Was Vanguard's LifeStrategy Funds ACTIVELY Managed in the Past?
Nisi,
Your final remark re Balanced Index Fund pertains, I think, to management's decision to switch from holding the Total US Stock Index Fund as 60%, and Total US Bond Market Fund as 40%, to holding all the individual securities in both indexes.
Why Vanguard made that switch would be interesting know. Does it save on the expense ratio? Why wasn't that same switch made in the LS funds and the Target Date Funds?
peace
Your final remark re Balanced Index Fund pertains, I think, to management's decision to switch from holding the Total US Stock Index Fund as 60%, and Total US Bond Market Fund as 40%, to holding all the individual securities in both indexes.
Why Vanguard made that switch would be interesting know. Does it save on the expense ratio? Why wasn't that same switch made in the LS funds and the Target Date Funds?
peace
- Tue Jun 30, 2020 9:36 am
- Forum: Investing - Theory, News & General
- Topic: Was Vanguard's LifeStrategy Funds ACTIVELY Managed in the Past?
- Replies: 13
- Views: 1607
Re: Was Vanguard's LifeStrategy Funds ACTIVELY Managed in the Past?
Nisi,
Thanks for the history. I have owned LifeStrategy Growth (80-20) since it was opened about 25 years ago, and have done well while sleeping easy.
Recently, the equity portion of the LS funds increased international to 40%. I was uneasy with that, preferring a steady 20% international.
So I invest equally in Balanced Index (60-40) and LS Growth (80-20), giving me 20% international stock, at a combined expense ratio of about 11 basis points per annum.
And an over all bond allocation of 30%--just enough to take the froth off a global portfolio.
Any thoughts?
Thanks for all the information you so generously share.
peace
Thanks for the history. I have owned LifeStrategy Growth (80-20) since it was opened about 25 years ago, and have done well while sleeping easy.
Recently, the equity portion of the LS funds increased international to 40%. I was uneasy with that, preferring a steady 20% international.
So I invest equally in Balanced Index (60-40) and LS Growth (80-20), giving me 20% international stock, at a combined expense ratio of about 11 basis points per annum.
And an over all bond allocation of 30%--just enough to take the froth off a global portfolio.
Any thoughts?
Thanks for all the information you so generously share.
peace
- Fri May 08, 2020 11:51 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard U.S. Growth: Give me a reason
- Replies: 30
- Views: 8990
Re: Vanguard U.S. Growth: Give me a reason
You have good thoughts.
The loss is there for the taking.
And good choices for reinvestment such as Large Cap growth or Mega Cap Growth Index--if you want growth.
peace
The loss is there for the taking.
And good choices for reinvestment such as Large Cap growth or Mega Cap Growth Index--if you want growth.
peace
- Thu Apr 16, 2020 2:43 pm
- Forum: Investing - Theory, News & General
- Topic: Jack Bogle - Two Fund Portfolio
- Replies: 2645
- Views: 322201
Re: Jack Bogle - Two Fund Portfolio
Like so many on this thread--I have done it all over decades of investing and can now say that had there been a Balanced Index Fund when I started, and I had used only that fund all my life, I would have done better than I have by "doing it all."
And without doubt would have slept better, read more books, had more meals and conversations with friends and family.
Young investors have a unique choice before them with VBINX (or VBIAX).
peace
And without doubt would have slept better, read more books, had more meals and conversations with friends and family.
Young investors have a unique choice before them with VBINX (or VBIAX).
peace