Search found 196 matches

by Mode32
Fri Apr 03, 2020 1:18 pm
Forum: Personal Investments
Topic: Move away from Small and Mid-Caps?
Replies: 23
Views: 1713

Move away from Small and Mid-Caps?

Hello Bogleheads, I have an over 10 year investment horizon for my 529 Plan and a 30 year investment horizon for retirement. My current 401K and 529 Plan portfolio's consist of below: 401K: 90% S&P500 Index Fund 10% Small Cap Index fund 529 Plan (note: No stand alone S&P 500 or Total Stock M...
by Mode32
Thu Apr 02, 2020 12:27 am
Forum: Personal Investments
Topic: REIT Index Funds (VGSLX) worth it?
Replies: 2
Views: 895

REIT Index Funds (VGSLX) worth it?

I am thinking about buying VGSLX (no more than 8-10% of total portfolio) in my IRA (Roth) which currently consists of 100% VTSAX; I have over a 25 year investment horizon. I understand that VTSAX has some REIT exposure, but I was interested in overweighting REITS in excess of this market cap for pot...
by Mode32
Wed Apr 01, 2020 7:21 pm
Forum: Personal Investments
Topic: Buying the S&P when market low: VFIAX vs VOO?
Replies: 4
Views: 737

Re: Buying the S&P when market low: VFIAX vs VOO?

Is there a reason why you went with VFIAX, instead of VTSAX (total stock market index)? I'm only curious because it was a toss up between the two for me, and I ended up choosing VTSAX for my taxable account.
by Mode32
Wed Apr 01, 2020 10:09 am
Forum: Personal Investments
Topic: SP500 Index fund will outperform total stock market?
Replies: 51
Views: 5967

Re: SP500 Index fund will outperform total stock market?

Mode: Although I’ve been investing for a while, I’m fairly new at critically reviewing investment articles. Above is a recent article from MarketWatch.com. Simple answer - Don't read Marketwatch. Their goal is to get you to sign-up for something they are promoting. If you read lots of investment ar...
by Mode32
Sat Mar 28, 2020 10:40 pm
Forum: Personal Investments
Topic: Any high bracket investors dumping munis?
Replies: 127
Views: 9672

Re: Any high bracket investors dumping munis?

By "dumping munis", are we all talking about just bonds? I have a municipal money market account, and do the issues mentioned on this thread affect a municipal money market as well? The Fed is now effectively backstopping municipal mm same as other mm, and they are very safe. However, no ...
by Mode32
Sat Mar 28, 2020 10:22 pm
Forum: Personal Investments
Topic: Any high bracket investors dumping munis?
Replies: 127
Views: 9672

Re: Any high bracket investors dumping munis?

By "dumping munis", are we all talking about just bonds? I have a municipal money market account, and do the issues mentioned on this thread affect a municipal money market as well?

I am a fairly novice investor with what is likely a basic question. Appreciate the clarification.
by Mode32
Fri Mar 27, 2020 2:20 pm
Forum: Personal Investments
Topic: SP500 Index fund will outperform total stock market?
Replies: 51
Views: 5967

Re: SP500 Index fund will outperform total stock market?

The S&P 500 represents approximately 80% of the market capitalization of the total US stock market. Therefore, they will track each other closely. If you want to outperform the total US stock market, on a capitalization-weighted basis, you'll have to deviate from it much more than just the S&am...
by Mode32
Thu Mar 26, 2020 4:36 pm
Forum: Personal Investments
Topic: SP500 Index fund will outperform total stock market?
Replies: 51
Views: 5967

Re: SP500 Index fund will outperform total stock market?

But wouldn’t the S&P 500 index fund have a larger % of the top 10 companies (at whatever time/companies in future)compared with a Total stock market fund, and therefore perform slightly better?
by Mode32
Thu Mar 26, 2020 4:07 pm
Forum: Personal Investments
Topic: SP500 Index fund will outperform total stock market?
Replies: 51
Views: 5967

Re: SP500 Index fund will outperform total stock market?

For all practical purposes the TSM is the S&P 500. By definition, the top 5 or 10 stocks always dominate. That’s how market cap works. The difference between the S&P 500 and a TSM fund is essentially noise over the last 100 years. Currently the top 10 represent about 21% of an S&P 500 i...
by Mode32
Thu Mar 26, 2020 3:40 pm
Forum: Personal Investments
Topic: SP500 Index fund will outperform total stock market?
Replies: 51
Views: 5967

SP500 Index fund will outperform total stock market?

https://www.marketwatch.com/story/coronavirus-isnt-stopping-the-rich-from-getting-even-richer-on-wall-street-2020-03-26?mod=home-page Although I’ve been investing for a while, I’m fairly new at critically reviewing investment articles. Above is a recent article from MarketWatch.com. It basically say...
by Mode32
Wed Mar 18, 2020 11:52 am
Forum: Personal Investments
Topic: A Little Confused if I Should be Taking More Action
Replies: 16
Views: 1582

Re: A Little Confused if I Should be Taking More Action

My current scenario has me contributing to my company 401k bi-monthly and funding $500 to my Roth IRA once a month. I have protected some of my cash by getting several CD's so I am good with my current cash on hand and EF. Would now be a good time to up my 401k contributions? I could fully fund my ...
by Mode32
Tue Mar 17, 2020 3:59 pm
Forum: Personal Investments
Topic: Need help weighting Vanguard S&P 500 and MidCap (VIMAX) to approximate Total Stock Market Index
Replies: 3
Views: 289

Re: Need help weighting Vanguard S&P 500 and MidCap (VIMAX) to approximate Total Stock Market Index

I would think hard about whether it's worth adding a Mid-Cap and/or Small Cap funds if their expense ratio's are higher than the S&P 500 Index fund (VFIAX). My understanding is that the value of Mid/Small Caps is debatable (as are most things) and it can take a long time to possibly outperform t...
by Mode32
Tue Mar 17, 2020 3:38 pm
Forum: Personal Investments
Topic: What does a recession mean for stock prices?
Replies: 13
Views: 1064

Re: What does a recession mean for stock prices?

Thanks for the simplified version of what happens during recession. Excellent graph!
by Mode32
Mon Mar 16, 2020 4:48 pm
Forum: Personal Investments
Topic: What does a recession mean for stock prices?
Replies: 13
Views: 1064

What does a recession mean for stock prices?

This may be a basic question, but for those that have experienced other recessions, what happens to stock prices during a recession (ie, increased volatility, but generally depressed)? Although the markets did a deep nose-dive today, do the markets generally stay decreased throughout a recession?
by Mode32
Sat Mar 14, 2020 3:36 pm
Forum: Personal Investments
Topic: Total Stock Market Index or S&P 500 Index Fund?
Replies: 7
Views: 811

Total Stock Market Index or S&P 500 Index Fund?

This may be splitting hairs to choose between a Total Stock Market Index or S&P500 Index Fund, but I am wondering what people think is ultimately the best fund as a core holding in a tax-advantaged and/or taxable account (basically, any account)? I personally went with VTSAX which nearly resembl...
by Mode32
Sat Mar 14, 2020 3:26 pm
Forum: Personal Investments
Topic: Pay off mortgage?
Replies: 19
Views: 1657

Re: Pay off mortgage?

We paid off our 3.375% mortgage two weeks ago and feeling terrific about it. Objectively, we've done a lot better in our time aggressively paying it down/off vs. buying bonds. And with the current bad news, it's nice to know that we actually own the roof over us. Objectively, paying for a mortgage ...
by Mode32
Sat Mar 14, 2020 8:14 am
Forum: Personal Investments
Topic: Pay off mortgage?
Replies: 19
Views: 1657

Re: Pay off mortgage?

We paid off our 3.375% mortgage two weeks ago and feeling terrific about it. Objectively, we've done a lot better in our time aggressively paying it down/off vs. buying bonds. And with the current bad news, it's nice to know that we actually own the roof over us. Objectively, paying for a mortgage ...
by Mode32
Fri Mar 13, 2020 7:10 pm
Forum: Personal Investments
Topic: Pay off mortgage?
Replies: 19
Views: 1657

Re: Pay off mortgage?

@ Watty and lakpr, thank you both for great info and reasoning!

It's starting to become clearer that my mom will be better off with the mortgage paid down earlier, and then investing more heavily until retirement.

Thank you!
by Mode32
Fri Mar 13, 2020 3:03 pm
Forum: Personal Investments
Topic: Pay off mortgage?
Replies: 19
Views: 1657

Re: Pay off mortgage?

To me, the 1-year cash savings is the emergency fund. You don't use an EF for anything other than an emergency, and pay off of the mortgage is NOT an emergency. I would not touch it. By the same token, a Stable Value Fund is the most equivalent to paying off a mortgage. You get the same GUARANTEED ...
by Mode32
Fri Mar 13, 2020 2:38 pm
Forum: Personal Investments
Topic: Pay off mortgage?
Replies: 19
Views: 1657

Re: Pay off mortgage?

What interest rate is the mortgage? It's hard to say in general what the right move is but depending on the entire situation it might make sense. Mortgage rate is 2.75%. I was just thinking that using money from either her Stable Value Fund in 401K or cash in savings account to pay off the $32K lef...
by Mode32
Fri Mar 13, 2020 1:44 pm
Forum: Personal Investments
Topic: Which fixed income, stood up to the test this month
Replies: 6
Views: 622

Re: Which fixed income, stood up to the test this month

Naturally, cash, anything FDIC insured, and Savings Bonds didn't even notice that anything happened, if that's what you mean. You can add money market funds to the list, for the time being . What is your reasoning for saying “for the time being” in relation to money markets? I’m not well versed in ...
by Mode32
Fri Mar 13, 2020 12:47 pm
Forum: Personal Investments
Topic: Pay off mortgage?
Replies: 19
Views: 1657

Pay off mortgage?

My mom has about $32K left on her mortgage which she finishes paying off in Oct 2022. She is 69 yrs old and plans to fully retire in 3-4 years (currently works part-time). The majority of her retirement savings is in her old employer 401K and she contributes about 5% (no match) into her current 401K...
by Mode32
Thu Mar 12, 2020 12:52 pm
Forum: Personal Investments
Topic: What does your Crystal Ball say?
Replies: 96
Views: 4991

What does your Crystal Ball say?

Looking to see how people think about the market dynamics currently. I keep reading about how the "market experts" believe the framework of our economy is good, and these intermittent strains (ie, covid-19, oil conflict, elections..etc) cause transient dips in market performance which brin...
by Mode32
Thu Mar 12, 2020 10:37 am
Forum: Personal Investments
Topic: How many people with 7 figure portfolios are”rejoicing ?”
Replies: 169
Views: 14603

Re: How many people with 7 figure portfolios are”rejoicing ?”

For all the ones who have experienced economic down turns like this (or worse), is it a foolish idea to purchase more stocks when you are 3-4 years away from retirement and currently have 57% SP 500 index fund/43% Stable Value fund (basically, a money market). I feel comfortable with 55-60%/40-45% ...
by Mode32
Thu Mar 12, 2020 10:19 am
Forum: Personal Investments
Topic: How many people with 7 figure portfolios are”rejoicing ?”
Replies: 169
Views: 14603

Re: How many people with 7 figure portfolios are”rejoicing ?”

For all the ones who have experienced economic down turns like this (or worse), is it a foolish idea to purchase more stocks when you are 3-4 years away from retirement and currently have 57% SP 500 index fund/43% Stable Value fund (basically, a money market). I feel comfortable with 55-60%/40-45% A...
by Mode32
Wed Mar 11, 2020 5:55 pm
Forum: Personal Investments
Topic: Are Bonds still worth buying right now?
Replies: 6
Views: 1244

Re: Are Bonds still worth buying right now?

I admit to selling some bonds (actually bond funds) recently and going to cash and stocks. My view is that interest rates dropped to a point where holding cash seems less risky than bonds. While I’ll miss the dividends, I already did so well with the bond funds as interest rates declined that zero ...
by Mode32
Wed Mar 11, 2020 3:24 pm
Forum: Personal Investments
Topic: Are Bonds still worth buying right now?
Replies: 6
Views: 1244

Are Bonds still worth buying right now?

Bogleheads, I am requesting some basic understanding of bonds as I have a very elementary idea of how they work and it's utility in retirement . This is all in the context of me trying to help my mom with her old employer 401K (which she no longer contributes to) as she will be retiring within the n...
by Mode32
Wed Mar 11, 2020 2:21 pm
Forum: Personal Investments
Topic: Fixed Income Assets in Retirement
Replies: 4
Views: 536

Re: Fixed Income Assets in Retirement

@ dbr, willthrill81, Thesaints---Thank you!

Very insightful and helpful advice. I
by Mode32
Tue Mar 10, 2020 1:29 pm
Forum: Personal Investments
Topic: Fixed Income Assets in Retirement
Replies: 4
Views: 536

Fixed Income Assets in Retirement

Looking to get some advice on the "Fixed Income" side of the retirement portfolio. Current asset allocation for my mom's 401K is 57% (S&P 500 Index Fund)/43% (Stable Value Fund), and she wants to retire in about 3-4 years. I don't have a good grasp of what funds should go into a proper...
by Mode32
Mon Mar 09, 2020 11:59 am
Forum: Personal Investments
Topic: Who are getting excited with the plummeting market?
Replies: 100
Views: 10200

Re: Who are getting excited with the plummeting market?

I am neither especially excited or concerned, but I think everyone should be careful about making posts that don't seem to recognize how close almost everyone is to potentially suffering from major downturns. Although I agree with buying when markets appear lower within the constraints of your IPS,...
by Mode32
Mon Mar 09, 2020 11:45 am
Forum: Personal Investments
Topic: Good day to buy?!
Replies: 31
Views: 3638

Re: Good day to buy?!

I'm looking to contribute a little more toward IRA than I normally would today
by Mode32
Mon Mar 09, 2020 10:15 am
Forum: Personal Investments
Topic: Good day to buy?!
Replies: 31
Views: 3638

Good day to buy?!

As the markets continue (on what appears to be) a significant downward slide today, I'm thinking today may be a good bet to buy (i.e., VTSAX)? Again, this would not change regular monthly contributions as always planned. Learning from this forum, I'm also not a fan of market timing, but the possibil...
by Mode32
Fri Mar 06, 2020 11:41 am
Forum: Personal Investments
Topic: 401k transfer
Replies: 6
Views: 308

Re: 401k transfer

I am retired I am just getting some feedback on weather it matters when I move 401k to Vang I was thinking of doing it this month. Direct Rollover of assets but with this crazy market should I wait or it doesn't much matter since I am not selling anything just moving ? Thanks all So, * IF * the acc...
by Mode32
Thu Mar 05, 2020 11:33 pm
Forum: Personal Investments
Topic: Keep prior employer 401K, or open Rollover IRA?
Replies: 7
Views: 476

Re: Keep prior employer 401K, or open Rollover IRA?

Really great insights and information (thank you!), and after considering potential risks associated with a roll over IRA in this volatile market, I am going to hang tight with the prior employer 401K (at least for now).
by Mode32
Thu Mar 05, 2020 5:12 pm
Forum: Personal Investments
Topic: Keep prior employer 401K, or open Rollover IRA?
Replies: 7
Views: 476

Re: Keep prior employer 401K, or open Rollover IRA?

If you are keeping the old employer's 401K and the plan is automatically undergoing fund changes (i.e.,one SP 500 Index fund for another) on a set date scheduled by the old employer, is there a risk they may sell at a loss and buy on a high, which would negatively impact the portfolio? Does the empl...
by Mode32
Thu Mar 05, 2020 1:53 pm
Forum: Personal Investments
Topic: Keep prior employer 401K, or open Rollover IRA?
Replies: 7
Views: 476

Keep prior employer 401K, or open Rollover IRA?

I don't know if I should be more concerned about this or not. Looking over the details of prior employer 401K recently, I noticed that the Company 401K Plan will be switching some funds I own to new identical funds (i.e., my old SP 500 Index fund will be replaced with another SP500 Index fund with a...
by Mode32
Thu Mar 05, 2020 11:09 am
Forum: Personal Investments
Topic: What do "Restrictions" on 401K Plan mean?
Replies: 10
Views: 385

Re: What do "Restrictions" on 401K Plan mean?

What happens if I decide to Sell (Contrafund)/Buy (SP 500 Index) concurrently (within the Plan) 20% at a time over the course of several weeks/months, would the 401K Plan restrict me from performing any and/or all transactions? We are no longer contributing to this 401K Plan because it is from a pre...
by Mode32
Thu Mar 05, 2020 10:57 am
Forum: Personal Investments
Topic: What do "Restrictions" on 401K Plan mean?
Replies: 10
Views: 385

Re: What do "Restrictions" on 401K Plan mean?

I don't expect to buy any more Contrafund, and I'm not looking to market time or day trade. Simply want to replace the higher ER Contrafund with lower ER SP500 Index fund within the same plan. But will the 401K Plan prevent/stop me from selling Contrafund and buying SP500 Index concurrently if I do ...
by Mode32
Thu Mar 05, 2020 10:41 am
Forum: Personal Investments
Topic: What do "Restrictions" on 401K Plan mean?
Replies: 10
Views: 385

What do "Restrictions" on 401K Plan mean?

I have a 401K Plan which I kept from a previous employer. I currently have about 55% in Fidelity Contrafund Pool Fund, and I'm looking to sell all of these shares and concurrently buy the S&P 500 Index fund offered in this plan because the expense ratio works out better. However, the Fidelity Co...
by Mode32
Wed Mar 04, 2020 5:56 pm
Forum: Personal Investments
Topic: Large Cap Value Index Fund and 529 Plan?
Replies: 4
Views: 199

Re: Large Cap Value Index Fund and 529 Plan?

Unfortunately, there is no SP500 Index Fund in this 529.

Given the way the market is recently performing, I can definitely see why some people may feel that 10 yr horizon is still limited.
by Mode32
Wed Mar 04, 2020 5:52 pm
Forum: Personal Investments
Topic: Large Cap Value Index Fund and 529 Plan?
Replies: 4
Views: 199

Re: Large Cap Value Index Fund and 529 Plan?

That's a good point about VTSAX having LCV. I think my concern for LCV as a stand alone fund in my portfolio comes from being a fairly new investor and lack of availabilty of good information (at least when I looked) about the role LCV can play in portfolios which makes it harder for me to reason wh...
by Mode32
Wed Mar 04, 2020 5:30 pm
Forum: Personal Investments
Topic: Large Cap Value Index Fund and 529 Plan?
Replies: 4
Views: 199

Large Cap Value Index Fund and 529 Plan?

My 529 is run by Vanguard which I like, but it doesn't offer a stand alone VTSAX Index fund, rather VTSAX comes with an International Index fund or some other fund groupings that I prefer to avoid. All funds have ER .13%, and I have an investment window of greater than 10 years before I need it (so ...
by Mode32
Wed Mar 04, 2020 4:23 pm
Forum: Personal Investments
Topic: Retirement asset allocation/Suggestions
Replies: 9
Views: 905

Re: Retirement asset allocation/Suggestions

If I am understanding this, when you are looking to replace one fund with another similar fund in your portfolio, it is important to sell the fund you don't want and purchase the fund you do want at the same time. So in my case, I should plan to sell the Contrafund and buy the SP500 Index fund concu...
by Mode32
Wed Mar 04, 2020 3:19 pm
Forum: Personal Investments
Topic: Retirement asset allocation/Suggestions
Replies: 9
Views: 905

Re: Retirement asset allocation/Suggestions

Very good points about concerns related to leaving 401K's in a Company you know longer work for. Reading through several other posts, someone also made a good point that some plans charge an Administrative fee (i.e., .25% annually) if you use the plan and are no longer with the Company (which is rid...
by Mode32
Mon Mar 02, 2020 10:00 pm
Forum: Personal Investments
Topic: Retirement asset allocation/Suggestions
Replies: 9
Views: 905

Re: Retirement asset allocation/Suggestions

Great insights and appreciate the information. My mother is 69 and wants to work another 2-3 years at least (she loves working). The 401K from her previous employer is her primary retirement source which she had been regularly contributing to throughout her working years and will be her primary reso...
by Mode32
Mon Mar 02, 2020 2:04 pm
Forum: Personal Investments
Topic: Retirement asset allocation/Suggestions
Replies: 9
Views: 905

Retirement asset allocation/Suggestions

I’m fairly new to becoming a more "aware" investor. In the past, I saved, but had default asset allocations without giving any thought. This forum and the invaluable advice/knowledge has really motivated me to become a more aware investor (thank you) over the last year. With that said, I a...