Bogleheads.org

rickster52fl

In view of the confusion caused by mixed interpretations of the wording and varying online experiences, it might be wise to wait a few days to see if the "systems issue" is resolved by Vanguard and clarified for all.
Rick

rickster52fl

TC101:
VINEX (Int'l Explorer fund) was reopened a few months ago. No guarantee it will remain open, so you might want to keep your account active by leaving a balance in it.
Rick

rickster52fl

The minimum initial investment for Vanguard FTSE All-World ex-US Small-Cap Index Fund is $3,000 for Investor Shares and $5 million for Institutional Shares. There will be 0.75% fees on purchases and redemptions of the Investor and Institutional Shares to help defray the transaction costs associated ...

rickster52fl

Sidney,
I believe the OP was referring to the Short Term Investment-Grade Bond fund, not the Short Term Bond Fund, which indeed holds 2/3 Treasuries and Agency bonds.
Rick

rickster52fl

Thanks PiperWarrior for your hard work!

It would seem that many people may be underestimating the %REITS they hold in their portfolios if they only count the allocation to a separate REIT fund (e.g., VGSIX).

Rick

rickster52fl

Landy, Thanks for the information and link; VEXMX looks very tax efficient. I have a small portion of VISVX in an old 403b and TM-SC in taxable which I've held for a few years; but since my Total Stock (VTSAX) increased in size, I want to add more small/midcap to maintain proportions. My options are...

rickster52fl

[addition to previous post]

In fact, equal amounts of VISVX (small value) in tax-deferred + VEXMX in taxable gives you a nice small value tilt and 40% midcap exposure.

0 0 3
13 14 13
26 20 10

rickster52fl

Landy, I read your posts here regarding VEXMX with great interest as I too have considered using it as an alternative to TM-Small Cap (which also includes some midcap) in taxable to tilt Total Market towards mid/small cap without having the 5 year holding restriction of the tax-managed fund. Is it a...

rickster52fl

Livesoft,

I believe VEIEX (Emerging Markets) has an initial minimum of $3000, not $25,000.

Rick

rickster52fl

Goolsbee is currently Obama's head economic advisor. One of his quotes may take on an ironic and prophetic meaning should his candidate win the presidential election: Future increases in tax rates potentially threaten to significantly reduce the value of your retirement savings and may even mean tha...

rickster52fl

ChosenGSR, It's virtually impossible to predict the low for any stock or mutual fund; if a muni bond fund is appropriate for your asset allocation, this is a very good (some, like Bill Gross, say historic!) time to buy, or "average in" due to the overdone recent selloff. If interest rates ...

rickster52fl

Hiredgun,
The key issue is fund location; the tax managed SC fund is best suited for your taxable account, while the other small cap funds are less tax efficient and should be located in tax-deferred account if there's room. Hope this helps.
Rick

rickster52fl

Rick
I agree that this is an incredible buying opportunity for munis and am looking to add to my position. Of the Vanguard (national) muni funds,do you have any preference and duration? I current own shares of both Limited Term and Intermediate funds.Thanks
Rick

rickster52fl

I often wonder why so many sympathetic onlookers have one set of standards for others and a different [higher] one for themselves? Would anyone here have taken this loan or not read the details before signing? There is no constitutional 'right' to own a home and certainly no disgrace in renting unti...

rickster52fl

...and he called the current muni bond market a "license to steal' (~6% taxable equivalent yield with less than 1% historic default rate), mentioning the two Vanguard LT muni bond funds specifically.

rickster52fl

Rogers has been predicting gloom and doom for the US and a commodities boom for what seems to be decades! As they say, even a broken clock is correct 2x day. He's packed his bags and moved to China to be where he feels the action is going to be...buh-bye.

rickster52fl

Glad you had time to do all the things you enjoy on your well-deserved vacation...welcome back!

Rick

rickster52fl

I am not sure about the Fidelity fund, but the Vanguard TIPs fund distributed a dividend yesterday of .11/shr (which accounted for part of the .20 loss in NAV yesterday).
Rick

rickster52fl

My VTSAX distribution was also more than a third higher than the estimate announced on December 6. No big deal, but I expected Vanguard would have had a more accurate projection a mere 2 weeks ago for one of its most popular funds. Don't get me wrong: I am pleasantly surprised but still a bit perple...

rickster52fl

and tomorrow is ex-dividend date for many popular Vanguard funds (including Total Stock Market, Small Cap Value, and REIT funds)...heads up!

rickster52fl

Jeffy, Good idea...another option would be to take a % each year, and if one's needs + wants are less, then rollover (bank away) the excess into savings for those years when one's expenses might exceed the combined pension+soc sec+withdrawal amount. Bob, Using models based on static methods may look...

rickster52fl

...and/or hold some munis in taxable in sufficient quantity to either supplement other sources of income (pension,soc sec) or so that you won't need to sell as much of your equity held in taxable. Much of all this advice depends on how much room you have in tax advantaged vs taxable...for some brack...

rickster52fl

Jeffy, Yes I'm aware of rule 72t (equal periodic payments) for 401k's prior to 59 1/2 . Actually in my case, I have a 403(b) which I can access without penalty as of age 55 as long as I've terminated employment, without having to take equal payments. I could access them in 'the worst case scenario' ...

rickster52fl

Nick, I agree, diversification beyond domestic equities is an important dimension to portfolio construction at all life stages including retirement. I have a suspicion that some asset classes are no longer as uncoupled as they used to be. Days like this past Friday are becoming more commonplace, and...

rickster52fl

Bob, Exactly! That's my current plan. Thanks for sharing your experience retiring during a rough period. I guess there's always a light (bull?) at the end of the tunnel; it's surviving till then, since we just don't know how long that tunnel is! [I wasn't aware the Larry advised 10 years of cash res...

rickster52fl

Wow, lots of good ideas to consider. Keep 'em coming. A few comments: Jeffy--yes it is possible to withdraw from tax deferred accounts before 59.5 but this is what many (including myself) would hope not to have to do in order to maintain the tax advantaged status. Mine is filled with IT bonds and TI...

rickster52fl

Jeffy, Valid points. But it depends on age...if you're under 59.5 and cannot withdraw from tax-deferred, you won't be able to touch the dividends from the bonds for current income unless you have some bonds (ex, munis) in taxable account to ride out the 'bear' period, along with the stock distributi...

rickster52fl

Thanks Zig. If I recall correctly, TrevH or another of our resident back-testers researched past bear markets and found that none had lasted more than 7 years. Now no one can predict the duration of any future downturns, but this might serve as a 'worst case scenario' for discussion purposes. Most o...

rickster52fl

This thread is actually an outgrowth of another one which examined using Wellesley and other balanced funds for retirement income. The issue that prompted this current thread was to examine asset allocation strategies as one makes the transition to retirement, particularly surviving the early years ...

rickster52fl

OK I will. I'll call it "Strategies for transitioning into Retirement".
Rick

rickster52fl

Jeffy and Zig, This is a key concern for those of us transitioning to retirement. I am taking a similar approach (cash reserves + bonds + tips) to protect myself from a possible bear market during first few years. I believe there has never been a bear market lasting more than 7 years;and realistical...

rickster52fl

...reiterating his 75% estimation for a recession, due to lower projected consumer confidence and spending (and subprime mess)...and his advice to speculators ("get out, and get out now!") vs. investors ("stay the course"). [interesting tidbit: Erin Burnett (interviewer) disclose...

rickster52fl

Tim and Grok,

Same here. FWIW, on Friday, Bill Gross (Pimco) was interviewed and said muni fund yields are very attractive too at current rates compared to treasuries (due to flight to quality)

Rick

rickster52fl

I agree with all the above about the utility of the FTSE fund for a taxable account. One question though: many posters have speculated about the future possiblity of admiral shares + lowered fees as the fund grows. In your experience with Vanguard, how long does it usually take for a fund to 'go adm...

rickster52fl

Laura and Grok,

Is International Value a wise choice for a taxable account? Would it not be more tax efficient to place it in the tax-advantaged acct and use tax-managed small cap (VTMSX) in taxable instead of VISVX?

Rick

rickster52fl

C:

The fund manager for VFSTX, Robert F. Auwaerter, was interviewed on CNBC today and declared that the fund contains absolutely no exposure to subprime mtgs. It's an excellent fund.

Rick

rickster52fl

Interesting quote by Auwaerter (manager, Vanguard short-term investment grade fund VFSTX):

"We do not hold any subprime securities."

rickster52fl

Al,
Thanks for posting this. I had checked the website last night looking for this very information and wondered when Vanguard would release it.
Rick

rickster52fl

Valuethinker, Public colleges are accredited by regional regulatory associations which perform periodic inspections of curriculum, faculty credentials, program requirements, etc. These are quite rigorous--down to random inspections of course outlines, objectives, and faculty graduate transcripts! Fa...

rickster52fl

Don,

You can do it at any time...the dividend will be pro-rated up to the date and awarded to you upon redemption.

Rick

rickster52fl

If the current credit crunch is making it more difficult for some municipalities to raise new money, would that not also make the value of existing bonds rise (supply and demand)?

Rick

rickster52fl

Jack Bogle was the guest host on CNBC 'Squawk Box" this morning. As you might expect, the hosts pressed him on current issues and Mr. Bogle spoke his mind: -the current credit problems are just beginning to play out -there's a 75% chance of a recession in the next 12-18 months -oil prices are h...

rickster52fl

FYI:

Mr. Bogle will be Maria Bartiromo's guest on the Wall Street Journal Report next Sunday at 7:30pm (eastern time) CNBC

rickster52fl

Ted,

nature/nurture in finance: Yup...everywhere we bring our minds and brains

and also the places we lose 'em!

Rick

rickster52fl

brain scans show that people in their twenties get much more upset than older folks do when they expect to lose money

Taylor,

So perhaps there's a bit of biology in the wisdom of 'stay the course'!

Regards,

Rick

rickster52fl

As a psychologist and an investor, I found it interesting that Zweig pointed out how our approach to investing (and life!) as we age is not only influenced by experience but also by our biology, health, and changes in our brain functioning...dimensions we rarely pay attention to. It's rather ironic ...

rickster52fl

Larry,

..and many people don't have much room in their tax advantaged accounts as well (like myself: 35%total portfolio)and hence need to hold some fixed (munis) in taxable and have no room for equity (in tax-advantaged)...plenty of room in taxable but tax efficiency limits degree of value tilt.

rickster52fl

Interesting...FTSE recently decided to move Israel out of the 'emerging markets' category and starting in 2008 will include it in its developed markets indices:

http://www.marketwatch.com/news/story/f ... EC040FD%7D

rickster52fl

Paul,

thanks for posting that...I knew I had read it on another thread, and asked Larry about the TIPS and munis portion (scroll up here)...he strongly favors TIPS (obviously) but never addressed the intermediate-term muni question for taxable account portion.

Rick

rickster52fl

Larry,

Agreed...TIPS all the way...but in a taxable account?

Bogleheads.org

Search found 182 matches

Strategies for transitioning into Retirement

Jack Bogle on CNBC again...

Robert F. Auwaerter and Dan Fuss on CNBC re: subprime mess

Bogle on CNBC: Highlights

Jack Bogle to appear on WSJ Report next week