Search found 181 matches

by Fundhunter
Wed Jun 15, 2011 10:54 pm
Forum: Personal Investments
Topic: at what age do you start changing your AA?
Replies: 37
Views: 4134

Everybody has a different opinion. I am more agressive than most and think that zero fixed income makes sense if you are really far away from retirement. Most people here disagree with that. But a good guide might be to go to the Vanguard site and look at their list of mutual funds. Then look to the...
by Fundhunter
Wed Jun 15, 2011 10:31 pm
Forum: Personal Investments
Topic: Move to VG or stay at Fido
Replies: 10
Views: 1707

FSIIX has an annual expense ratio of .10%. Nobody beats that and it is a Morningstar Pick as an index mutual fund. This isn't like putting together a baseball team- nothing wrong with having investments from both excellent fund families. My recently retired wife has both in her retirement portfilio,...
by Fundhunter
Wed Apr 13, 2011 8:28 pm
Forum: Personal Investments
Topic: Best book for investing DURING retirement
Replies: 27
Views: 6861

Well the book is a lot shorter if you don't spend time on the graphs and equations! Book is actually short when you take all that out. I like his suggestion that if you think you don't have enough to really retire with a very good chance of outliving your income you should buy a lifetime annuity and...
by Fundhunter
Fri Apr 01, 2011 8:58 pm
Forum: Personal Investments
Topic: Best book for investing DURING retirement
Replies: 27
Views: 6861

Otar's book is somewhat technical. If I was in my 70's, I would feel that I already had it all figured out and would not want to read a book to show me what I was doing wrong. I think the book is best for folks on the cusp of not being accumulators anymore. An early thread on the book with reviews ...
by Fundhunter
Fri Apr 01, 2011 7:38 pm
Forum: Personal Investments
Topic: Best book for investing DURING retirement
Replies: 27
Views: 6861

This excerpt from Otar's book was cited in an earlier post by pastafarian and may be helpful to you. Rule #1: Allocate two years’ of withdrawals to a money market fund as part of the fixed income portion of the portfolio. The money market fund is for immediate–term liquidity. All periodic withdrawa...
by Fundhunter
Thu Mar 31, 2011 8:52 pm
Forum: Personal Investments
Topic: Best book for investing DURING retirement
Replies: 27
Views: 6861

Thanks :D : Ordered the Otar book ($50 for a paperback-ouch!) tonight and I will read the other internet stuff. I hope Otar isn't too much harder to read than the Boglehead Guide was.
by Fundhunter
Wed Mar 30, 2011 9:24 pm
Forum: Personal Investments
Topic: Why does a person under age 35 need to own bonds?
Replies: 77
Views: 9673

This question comes up periodically on this forum, with plenty of disagreement. I tend to agree that for very long time horizons, like a young person's retirement plan, they are not necessary with a diversified global equity portfolio, including emerging markets, until the person is closer to retire...
by Fundhunter
Wed Mar 30, 2011 9:10 pm
Forum: Personal Investments
Topic: Best book for investing DURING retirement
Replies: 27
Views: 6861

Best book for investing DURING retirement

I have read a lot of the recommended books and I like the Bogelhead Guide, but it is a little light on the retirement/withdrawal stage. I feel competant doing my own investment planning while we both are working, but that is about to change. Wife will retire in a few months and we plan a combination...
by Fundhunter
Thu Mar 10, 2011 12:06 am
Forum: Investing - Theory, News & General
Topic: Asset Allocation for BHs in their early 30s
Replies: 49
Views: 7674

If you go back 80 years or so and select almost any 20 year period, it is almost never than bonds outperform stocks- the opposite is almost always true, as the VG Target Retirement Fund managers well know. Kulac, assuming he gets more conservative when he gets closer to retirement, will have the bi...
by Fundhunter
Wed Mar 09, 2011 10:39 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation for BHs in their early 30s
Replies: 49
Views: 7674

Age 34, 100% stocks, about 1/3 U.S. and 2/3 foreign, with large slices of SV and EMV. I'd have ISV too, if not for 401(k) menu constraints. My target AA is something like the equity portion of Larry's portfolio, but with a heavy anti-"home bias" and without any bonds. I have zero fear of ...
by Fundhunter
Wed Mar 09, 2011 10:08 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation for BHs in their early 30s
Replies: 49
Views: 7674

Age 34, 100% stocks, about 1/3 U.S. and 2/3 foreign, with large slices of SV and EMV. I'd have ISV too, if not for 401(k) menu constraints. My target AA is something like the equity portion of Larry's portfolio, but with a heavy anti-"home bias" and without any bonds. I have zero fear of ...
by Fundhunter
Mon Feb 21, 2011 11:51 pm
Forum: Investing - Theory, News & General
Topic: Why not pay off house?
Replies: 57
Views: 7844

We are contemplating the same thing with about 70K owed on the house in the last 4 years of a 15 year fixed mortgage at 4 5/8 %. Wife will retire from teaching in May with just 403(b) and some taxable- no pension. I will remain working for several years, but she will start to withdraw from her nest ...
by Fundhunter
Sat Feb 19, 2011 6:25 pm
Forum: Investing - Theory, News & General
Topic: Do you split equities equally between US and the rest?
Replies: 61
Views: 5743

25-30% international here, but I think that it is important to make sure that part of that international is in Emerging Markets, which is likely to give a better diversification than just western Europe, for example. Vanguard's fund (VEIEX) is good and if you have over $ 10,000 invested you can do A...
by Fundhunter
Sun Feb 13, 2011 9:00 pm
Forum: Investing - Theory, News & General
Topic: VMSXX- Risk with tax-free MMkt fund?
Replies: 9
Views: 1326

natureexplorer wrote:Why not use a high-yield online savings account?
Like what? Can you give me an example?
by Fundhunter
Sun Feb 13, 2011 8:44 pm
Forum: Investing - Theory, News & General
Topic: VMSXX- Risk with tax-free MMkt fund?
Replies: 9
Views: 1326

Well to be more precise, my wife may retire in May and will start cashing in periodically. A lot of advisors suggest to have a fund set up with a certain amount of money to protect against having to cash in equities in the middle of a terrible bear market. So it might not be a lot of extra yield, bu...
by Fundhunter
Sun Feb 13, 2011 6:51 pm
Forum: Investing - Theory, News & General
Topic: VMSXX- Risk with tax-free MMkt fund?
Replies: 9
Views: 1326

VMSXX- Risk with tax-free MMkt fund?

I know there is a lot of wringing of hands over possible defaults in tax-free government bonds because states generally cannot deficit spend like Uncle Sam does, but is there much greater risk for the tax-free money market fund? I am used to the tax-free stuff paying a lower yield because of the tax...
by Fundhunter
Mon Jan 31, 2011 9:48 pm
Forum: Investing - Theory, News & General
Topic: Why so much cash in VG bond funds?
Replies: 12
Views: 2365

I wouldn't bother factoring this cash into my portfolio allocation. Take an example, a 60/40 stock/bonds portfolio with 25% in Short Term Investment grade or 10% of the total portfolio. 4% in cash is 0.4% of the total portfolio. That's not an amount worth tracking or worrying about in my opinion. Y...
by Fundhunter
Sat Jan 29, 2011 11:28 pm
Forum: Investing - Theory, News & General
Topic: Why so much cash in VG bond funds?
Replies: 12
Views: 2365

STIG is a managed bond fund and probably holds the bonds in it's portfolio to full maturity.M* may consider bonds with less than a year to maturity as "cash". Bonds with less than 1 year to maturity still pay the same coupon amount, so I will look exclusively to the portfolio descriptions...
by Fundhunter
Sat Jan 29, 2011 10:21 pm
Forum: Investing - Theory, News & General
Topic: Why so much cash in VG bond funds?
Replies: 12
Views: 2365

I-G funds at VG are managed funds and the manager probably holds some cash to avoid having to sell off corporate bonds at unfavorable prices if there is an uptick in redemptions. Another plus for index funds in my view- just don't like that much cash with almost no yield at all now. But I agree wit...
by Fundhunter
Sat Jan 29, 2011 11:21 am
Forum: Investing - Theory, News & General
Topic: Why so much cash in VG bond funds?
Replies: 12
Views: 2365

Why so much cash in VG bond funds?

My wife's Fidelity 403(b) has an option to purchase Vanguard Short Term Investment Grade (VFSTX) and she has a significant position in it. It's the only Vanguard bond fund available to her in the plan. We are close enough to retirement that we hold a fair amount of fixed incomne in our retirement pl...
by Fundhunter
Tue Jan 25, 2011 7:54 pm
Forum: Investing - Theory, News & General
Topic: Why long term treasury bonds?
Replies: 20
Views: 4216

http://www.bogleheads.org/forum/viewtopic.php?t=39600.

This is a link given to me in another thread. It is Larry Swedroe's opinion about long bonds and is different than what he originally put in his book.
by Fundhunter
Mon Jan 24, 2011 4:35 pm
Forum: Personal Investments
Topic: 100% Total Stock Index. Am I Being Reckless?
Replies: 131
Views: 15070

marco: A few things. I don't know why you wish me "good luck". I am near retirement and I DO have fixed income. But if I were 40, I wouldn't have fixed income till I got closer to retirement. If you bet on a horse at the track, you win if the horse wins, if not, you lose your bet. In the v...
by Fundhunter
Sun Jan 23, 2011 6:38 pm
Forum: Personal Investments
Topic: 100% Total Stock Index. Am I Being Reckless?
Replies: 131
Views: 15070

OK, this is from Chapter Twelve (entitled Summary) of "The Only Guide To a Winning Boind Strategy You'll Ever Need" by Larry E. Swedroe and Joseph H. Hempen: Page 213, second to last paragraph: "Purchase assets with maturities that are short to intermediate in term, avoiding long ter...
by Fundhunter
Sun Jan 23, 2011 2:47 pm
Forum: Personal Investments
Topic: 100% Total Stock Index. Am I Being Reckless?
Replies: 131
Views: 15070

Marco: I don't think what you posted are relevant analogies at all. We are talking about a 40 year old with $250,000 in 100% equities. Unless the coin is so unbalanced that it comes up heads 99% of the time (like stocks have done vs. bonds, and to a lesser degree stocks vs. 80/20), your analogy is m...
by Fundhunter
Sun Jan 23, 2011 2:27 pm
Forum: Personal Investments
Topic: 100% Total Stock Index. Am I Being Reckless?
Replies: 131
Views: 15070

OK, this is from Chapter Twelve (entitled Summary) of "The Only Guide To a Winning Bond Strategy You'll Ever Need" by Larry E. Swedroe and Joseph H. Hempen: Page 213, second to last paragraph: "Purchase assets with maturities that are short to intermediate in term, avoiding long term ...
by Fundhunter
Sun Jan 23, 2011 12:08 am
Forum: Personal Investments
Topic: 100% Total Stock Index. Am I Being Reckless?
Replies: 131
Views: 15070

There is data way back to show that there has never been a 20 year period where bonds outperformed stocks ???? I think that data is indeed "way back," i.e. compiled prior to 2008. Here is a 20 year period in which Vanguard Total Bond Market Index and Vanguard Long-Term Bond Index Funds (l...
by Fundhunter
Sat Jan 22, 2011 11:13 pm
Forum: Personal Investments
Topic: 100% Total Stock Index. Am I Being Reckless?
Replies: 131
Views: 15070

I think the odds are extremely good however that a stock + bond mix will underperform a 100% stock portfolio for the next 20 years. That's not the question. The question is, what are the odds that an actual young worker, who is saving for retirement, who plans to hold 100% stocks up to retirement, ...
by Fundhunter
Sat Jan 22, 2011 10:35 pm
Forum: Personal Investments
Topic: 100% Total Stock Index. Am I Being Reckless?
Replies: 131
Views: 15070

I think the odds are extremely good however that a stock + bond mix will underperform a 100% stock portfolio for the next 20 years. That's not the question. The question is, what are the odds that an actual young worker, who is saving for retirement, who plans to hold 100% stocks up to retirement, ...
by Fundhunter
Sat Jan 22, 2011 10:28 pm
Forum: Personal Investments
Topic: 100% Total Stock Index. Am I Being Reckless?
Replies: 131
Views: 15070

There is data way back to show that there has never been a 20 year period where bonds outperformed stocks, including the period of the Great Depression. That may be true however there has been times in the past where an 80/20 portfolio outperformed an all stock portfolio. 1929-1950 - 80/20 4.79%, 1...
by Fundhunter
Sat Jan 22, 2011 10:15 pm
Forum: Personal Investments
Topic: 100% Total Stock Index. Am I Being Reckless?
Replies: 131
Views: 15070

There is data way back to show that there has never been a 20 year period where bonds outperformed stocks ???? I think that data is indeed "way back," i.e. compiled prior to 2008. Here is a 20 year period in which Vanguard Total Bond Market Index and Vanguard Long-Term Bond Index Funds (l...
by Fundhunter
Sat Jan 22, 2011 10:01 pm
Forum: Personal Investments
Topic: 100% Total Stock Index. Am I Being Reckless?
Replies: 131
Views: 15070

And in response to the post about the huge 1 day drop in the market in 1987, do you remember how long it took to recover? You don't LOSE unless you sell. Well, duh, of course. And you only sell if you have taken on more risk at the start than you can tolerate in the real world. Then what is your po...
by Fundhunter
Sat Jan 22, 2011 9:12 pm
Forum: Personal Investments
Topic: 100% Total Stock Index. Am I Being Reckless?
Replies: 131
Views: 15070

rogov4321 wrote:Have you considered Vanguard Total World Stock Index (VTWSX)? Still all stocks, but you at least get international exposure.
That isn't a bad idea at all.
by Fundhunter
Sat Jan 22, 2011 9:10 pm
Forum: Personal Investments
Topic: 100% Total Stock Index. Am I Being Reckless?
Replies: 131
Views: 15070

"Risk" also includes the risk of a portfolio that is so conservative that it significantly underperforms the market over a 20 year period. To my way of thinking, a large bond % is quite "risky" over that long a period. I think a lot of the recommendations have more to do with an...
by Fundhunter
Sat Jan 22, 2011 6:53 pm
Forum: Personal Investments
Topic: 100% Total Stock Index. Am I Being Reckless?
Replies: 131
Views: 15070

"Risk" also includes the risk of a portfolio that is so conservative that it significantly underperforms the market over a 20 year period. To my way of thinking, a large bond % is quite "risky" over that long a period. I think a lot of the recommendations have more to do with an...
by Fundhunter
Sat Jan 22, 2011 6:40 pm
Forum: Investing - Theory, News & General
Topic: International % ?
Replies: 31
Views: 5124

Been reading everything I can about Mr Bogle. Also, reading wonderfully crafted thoughts on investing in this forum. I am absolutely convinced that the SP500 Index or Total US Stock Index gives any Regular Joe all the international equity exposure needed in a portfolio...with less expense. 40% VIII...
by Fundhunter
Sat Jan 22, 2011 6:17 pm
Forum: Personal Investments
Topic: 100% Total Stock Index. Am I Being Reckless?
Replies: 131
Views: 15070

"Risk" also includes the risk of a portfolio that is so conservative that it significantly underperforms the market over a 20 year period. To my way of thinking, a large bond % is quite "risky" over that long a period. I think a lot of the recommendations have more to do with an ...
by Fundhunter
Sat Jan 22, 2011 5:36 pm
Forum: Investing - Theory, News & General
Topic: International % ?
Replies: 31
Views: 5124

The convention is, when 2 total strangers meet in the elevator for the 1st time, and one turns to the other and says "30% of my portfolio is in international", that he means his stock portfolio. Don't argue with me. I've studied this. :lol: What difference does it make anyhow since there ...
by Fundhunter
Sat Jan 22, 2011 5:16 pm
Forum: Investing - Theory, News & General
Topic: Vanguard recommends international bonds!
Replies: 72
Views: 13335

There might be another simpler reason to avoid doing this. The VG Total Bond Market Fund has a .22% ER. The Intermediate Treasury Fund is at .25%. Wanna bet that if they come up with a hedged international bond fund that it will be a lot more expensive than that? The existing ones mentioned in this ...
by Fundhunter
Sat Jan 22, 2011 3:53 pm
Forum: Personal Investments
Topic: 100% Total Stock Index. Am I Being Reckless?
Replies: 131
Views: 15070

Seem to remember either Bogle or Malkiel saying that a broad based index of U.S. companies will give you more than enough international exposure. But I could be wrong? Bogle holds the minority view that international investing is unnecessary, but most financial advisors disagree. Bogle did say in a...
by Fundhunter
Sat Jan 22, 2011 3:18 pm
Forum: Personal Investments
Topic: 100% Total Stock Index. Am I Being Reckless?
Replies: 131
Views: 15070

I agree with the posters who say you are OK at your age in 100% equities, as long as you stay the course and don't panic in a severe downturn (not everybody is comfortable that they can do that, and not everybody sleeps well after their portfolio has done a nose dive like that). But there certainly ...
by Fundhunter
Sat Dec 25, 2010 2:35 pm
Forum: Investing - Theory, News & General
Topic: How global should you go?
Replies: 127
Views: 14446

Re: Research is the better way

Good article... That report is "© 2006 The Vanguard Group, Inc.". This report is "September 27, 2010", https://personal.vanguard.com/us/insights/article/fund-announcement-09272010 Vanguard also plans to increase the international equity exposure ... from approximately 20% to app...
by Fundhunter
Sat Dec 25, 2010 1:09 pm
Forum: Investing - Theory, News & General
Topic: How global should you go?
Replies: 127
Views: 14446

Re: Research is the better way

When faced with a question like "How much international?", a Boglehead does not rely on personal "hunches," anecdotes, media advertising or Wall Street's self-serving marketing machine. Bogleheads make investment decisions based on reliable research. This is Vanguard's recommend...
by Fundhunter
Fri Dec 24, 2010 5:59 pm
Forum: Investing - Theory, News & General
Topic: How 'risky' should a mid-20s investor be?
Replies: 91
Views: 8619

I agree that risk tolerance (and not panic selling in a down market) is a legitimate concern for a young inexperienced investor. But if a young investor is very confident that he/she won't panic sell in a bear market, how do you argue with the fact that equities have always kicked fixed income in t...
by Fundhunter
Wed Dec 22, 2010 8:06 pm
Forum: Investing - Theory, News & General
Topic: How 'risky' should a mid-20s investor be?
Replies: 91
Views: 8619

...how do you argue with the fact that equities have always kicked fixed income in the teeth for ANY 30 year period you choose (and I think almost any 20 year period)? I'll argue with it based purely on instinct. I have no numbers to back it up. Let's say you have a really big rock you want to move...
by Fundhunter
Wed Dec 22, 2010 6:31 pm
Forum: Investing - Theory, News & General
Topic: How 'risky' should a mid-20s investor be?
Replies: 91
Views: 8619

I agree that risk tolerance (and not panic selling in a down market) is a legitimate concern for a young inexperienced investor. But if a young investor is very confident that he/she won't panic sell in a bear market, how do you argue with the fact that equities have always kicked fixed income in th...
by Fundhunter
Tue Dec 21, 2010 9:58 pm
Forum: Investing - Theory, News & General
Topic: How 'risky' should a mid-20s investor be?
Replies: 91
Views: 8619

If you are in it for 30 years until retirement, and you have a strong stomach for downturns, then you need to know that there has never been any 30 year period when bonds outperformed stocks. Stocks have always significantly outperformed bonds for all periods that long. I say a lot of international ...
by Fundhunter
Wed Dec 01, 2010 11:30 pm
Forum: Investing - Theory, News & General
Topic: Bond Fund Basics: What Will Rate Increases *Really* Mean?
Replies: 25
Views: 3443

I got Larry's bond book when it came out and read (but didn't memorize) it. One thing that I specifically recall is his opinion that long term bonds' interest rate risk is not worth the higher yield. He also like treasuries, in spite of lower yield, as diversifiers (stocks get hammered and the fligh...
by Fundhunter
Sat Oct 30, 2010 1:35 pm
Forum: Investing - Theory, News & General
Topic: Bogle still not an international fan
Replies: 106
Views: 11428

Quote from Bogle on Mutual Funds

This is what Jack Bogle says at page 74 of his 1994 "Bogle on Mutual Funds": "Compelling arguments have been promulgated to support the notion that investing in foreign stocks will improve your cumulative total return while reducing the volatility of your annual return. However, I am ...
by Fundhunter
Sat Oct 30, 2010 11:42 am
Forum: Investing - Theory, News & General
Topic: Bogle still not an international fan
Replies: 106
Views: 11428

Please listen to the interview again - he is not talking to Bogleheads invested in Admiral shares - rather his message is for those who are invested in high cost funds who are reaching for yield by performance chasing international funds. What he is trying to say to them is: do not try to get an ex...
by Fundhunter
Fri Oct 29, 2010 7:22 pm
Forum: Investing - Theory, News & General
Topic: Bogle still not an international fan
Replies: 106
Views: 11428

Yeah I do 25% of equities in international, mostly in low cost Vanguard mutual funds. For me it's not an issue of trying to add return. I consider it more of a diversification to lessen the risk from being invested in only one country. I have never seen anything persuasive about the % that should be...