Search found 279 matches

by Pangloss
Tue May 01, 2007 6:46 pm
Forum: Investing - Theory, News & General
Topic: International Bond Fund?
Replies: 10
Views: 4026

International Bond Fund?

I'm curious about what percentage of us own an international bond fund(s), and which funds.
by Pangloss
Sat Apr 28, 2007 6:55 pm
Forum: Investing - Theory, News & General
Topic: REITS 47 PE ratio too high? Market timing?
Replies: 56
Views: 27735

more on REITs

I apologize in advance if some one has already pointed this out, and I may be wandering off topic, but it seems to me that the whole point of a portfolio is to own different asset classes with as little correlation to one another as possible and then rebalance. Asset classes like REITS and Emerging Market seem to me to have more volatility, but rebalancing is simply a method to transform that volatility into higher long term returns. Did anyone read Paul Ferrell's article on Marketwatch.com on Jan 16 of this year? He compared several of the portfolios we frequently discuss here. Swenson's model portfolio gets a lot of it's diversification from the large real estate portion. All other US stocks are lumped into Total Market and international ...
by Pangloss
Sat Apr 28, 2007 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Computer Security Question
Replies: 14
Views: 5226

McAfee Quick Clean

I use McAfee Quick Clean. It has a "shredder" that will erase old files beyond recovery. Basically, the program writes over the part of the disk where the erased file was with nonsense data. I'm not sure how many times you can set it to overwrite, but I know that it'll go to at least 30. It will also erase cookies, internet related files, recycle bin contents and a couple of other things. I've been using it for several years, and I have no plans to change. I should also mention that it has a Windows Explorer type interface that will let you work with specific folders and files.
by Pangloss
Fri Apr 27, 2007 7:53 pm
Forum: Personal Investments
Topic: Credit Score Question.
Replies: 10
Views: 3271

credit cards

I was in my mid-twenties when I got my first card, and I think the credit limit at first was around $300 (year 2002 dollars). I was in grad school and it was a student card. Anyway, I just used the card and paid it off in full every month. The credit company quickly raised my limit. I would simply use the card regularly and responsibly and your limit will probably go up quickly. Also, I think that if you come close to reaching the limit, they'll raise it faster, but I'm not positive. Good luck.
by Pangloss
Sat Apr 14, 2007 10:27 pm
Forum: Investing - Theory, News & General
Topic: European Bond Fund on Vanguard?
Replies: 14
Views: 4775

Everbank and T. Rowe Price

If you simply want currency exposure, you can open a savings account or CD that is denominated in another currency at Everbank. I opened a euro based savings account there a few years ago and by time I needed the money, I'd lost several hundred dollars. That cured me of trying to guess currency trends.

I would still like to hold some unhedged foreign bond funds, but my total bond exposure is only 10%, so I can't quite justify it yet--though maybe after my portfolio grows a little more and I up the bond percentage a little more. T. Rowe Price has such a fund (ticker symbol RPIBX) with a $2500 minimum. I would take a good look at that one. Expense ratio is 0.86% though.

I just checked and the PIMCO unhedged expense ratio is 0.95%
by Pangloss
Thu Apr 12, 2007 8:13 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 38815

Roth

I opened a Roth IRA several years ago while I was in grad school, and it was definitely the best decision for me. I had a roommate and watched expenses and was actually able to save a bit (thanks to my stipend) and be in school at the same time. You might want to consider the Vanguard Target Retirement funds. Good luck with your decision.
by Pangloss
Sun Apr 08, 2007 4:37 pm
Forum: Personal Investments
Topic: Dilemma: sell active funds if lose ROTH IRA contribution?
Replies: 8
Views: 2691

thanks for the correction, adrift and tfb

Thanks, adrift and tfb. I looked over the fairmark link and also did some reading on the IRS website, and I have it straight now. Charitable contributions definitely don't affect Roth eligibility. I feel reaffirmed in my decision to hire an accountant this year.
by Pangloss
Sun Apr 08, 2007 2:13 pm
Forum: Personal Investments
Topic: Dilemma: sell active funds if lose ROTH IRA contribution?
Replies: 8
Views: 2691

charitable contributions?

Between the choices you outlined, I'd be inclined to hold onto the funds in exchange for being able to get more money into your Roth accounts.

Another possibility is to make a charitable contribution of the portion of the holdings with the greatest unrealized capital gains equal to the total capital gains of the rest of the holdings and then sell what's left. This way your charitable contribution off sets your capital gains income and shouldn't push you over the limit for Roth eligibility. (At least I think this would be the case. I'm not an accountant, so I could very well be mistaken.) Good luck.
by Pangloss
Fri Apr 06, 2007 5:52 pm
Forum: Personal Finance (Not Investing)
Topic: what is your job/occupation?
Replies: 84
Views: 46978

occupation

Immunologist.
by Pangloss
Fri Apr 06, 2007 8:16 am
Forum: Personal Investments
Topic: Roth 401(k) "Conversion"
Replies: 21
Views: 6211

perhaps i should clarify...

While Vanguard is keeping up with which dollars go where, I can pick which dollars I want to move within the account. For example, I can direct my traditional dollars in bond funds and Roth dollars in equities. I can also view my contributions records by "source," meaing pre or post-tax. I think that once a dollar goes it, that dollar and all the dollars the grow from it remain either traditional or Roth, depending on the original contribution type. This is the part where tracking the basis get's complicated. After a couple of transactions, how many dollars where actual contributions and how many dollars were return on investments and then how many were traditional and how many were Roth? I have no clue. I guess this one account a...
by Pangloss
Wed Apr 04, 2007 7:18 pm
Forum: Personal Investments
Topic: My wife's portfolio - wow.
Replies: 18
Views: 7503

thoughts on risk assessment

While I very much agree with the recommendation to consolidate smaller holdings into new larger ones that fit your allocation plan, you might want to consider first getting rid of the holdings that pose the greatest risk given your circumstances. It seems to me that the broadcasting related stocks in combination with your wife's job is definitely the basket with the most eggs in it. I think I would try to trim back in that area first.

Also, to make the transition psychologically easier for your wife, you might want to start by directing new money into better investments to give her time to adjust and then begin moving existing assets after a couple of months (give or take). Good luck with everything!
by Pangloss
Wed Apr 04, 2007 6:31 pm
Forum: Personal Investments
Topic: Advice on possible switch to Vanguard
Replies: 8
Views: 3938

decisions

Hi. When my wife and I married, she had a Roth account at AXA and another one at Smith Barney. We agreed that I would manage the finances, and the first thing I did was move both holdings to Vanguard and set up a tidy 4 fund portfolio (International, Large Cap, Extended Market, and Total Bond). I would do it again in a heartbeat. The AXA funds were terrible and Smith Barney was only slightly better. I'm still delighted to rid of them!
by Pangloss
Wed Apr 04, 2007 6:15 pm
Forum: Personal Investments
Topic: Roth 401(k) "Conversion"
Replies: 21
Views: 6211

Roth 403(b)

Hi. My employer uses Vanguard Retirement and began offering a Roth 403(b) option last fall. I switched from traditional as soon as I was allowed and promptly looked into converting my previous traditional contributions to Roth. Vanguard's retirement people told me that it's impossible to convert. The way our plan works is that 2% of our pre-tax salary is taken out as a mandatory retirement contribution and that has to continue to flow into the traditional funds. Everything I choose to take out above 2% can be either Roth (after tax) or Traditional (pre-tax) but I can only choose one. Anyway, Vanguard keeps up with which dollars are traditional and which are Roth. I try not to think about it too much because it all dumps into the same accoun...
by Pangloss
Wed Apr 04, 2007 5:56 pm
Forum: Investing - Theory, News & General
Topic: Post your bond allocation
Replies: 60
Views: 29504

bond allocation

I'm 31 years old with a 90% equities and 10% bonds allocation. Here are my allocations within the bond portion of the portfolio:
70% Vanguard Short Term Index
30% Vanguard Long Term Index

When my portfolio grows more I'll adjust to:
50% Vanguard Short Term Index
25% Vanguard Long Term Index
25% Vanguard TIPS

I like the idea of the inflation sensitive long term bonds paired with the TIPS fund to balance the inflation risk.
by Pangloss
Tue Mar 27, 2007 9:25 pm
Forum: Investing - Theory, News & General
Topic: REIT vs Small Value for adding to 4-fund portfolio
Replies: 54
Views: 26876

I think REIT is better.

I just checked the correlation tables in chapter 12 of Bogleheads' Guide to Investing. Small Cap Value Index has a correlation of 0.67 with total market index fund, 0.72 with total international index fund, and 0.04 with total bond index fund. REIT correlations are 0.15 with total market index fund, 0.24 with total international index fund, and 0.04 with total bond market. So to answer your question, REIT is a better diversifier. Personally, I own REIT and not small value, but I also own more than four funds. Good luck with your decision.
by Pangloss
Tue Mar 27, 2007 6:52 pm
Forum: Personal Investments
Topic: To 529 or not to 529?
Replies: 29
Views: 11458

529

My wife and I each opened a 529 account in our names with the expectation of eventually having children. We went with the Vanguard Nevada plan even though we live in N. Carolina. The Nevada plan allows quite a few choices in designing custom portfolios that you can rebalance yearly.
by Pangloss
Tue Mar 27, 2007 5:56 pm
Forum: Investing - Theory, News & General
Topic: Use of Long Term Bond Index
Replies: 6
Views: 2579

bond allocations

Hi Jeff. I think you've brought up a very good point, and I've actually meant to start a similar thread for a while. I'm very much in the minority here because as you noted, most folks hold short and intermediate term bonds. Currently, the Vanguard Long Term Bond Index fund makes up 30% of my bond holding. On the old forum, some one wrote David Swensen with a question about bond allocations and he recommened owning a bond portfolio with an average maturity equal to the total bond market. The easiest way to do this is with an intermediate term fund or the total bond market index fund. The maturity on Vanguard's Intermediate Index fund is currently at 7.5 and the total bond index fund is at 6.9. However, I think that there may be some benefit...
by Pangloss
Sat Mar 24, 2007 10:17 pm
Forum: Personal Investments
Topic: Help a young investor allocate his ROTH contribution
Replies: 9
Views: 4227

my opinion

I would go with the Target Retirement also. However, if you don't want to do that think about changing your TSP to 100% domestic market and change the Roth IRA to 66% total international or FTSE all world ex-US and 33% total stock market. Taken together, this arrangement stays with your 50-50 US-Int allocation with your 401K, limits the number of funds you own, and gives you more control over the percent of foreign equities. It's also easy to shift the domestic-foreign balance if you want to trim your foreign holdings. I would really try to own no more than two funds in the Roth with your current balance and the above suggestion will give you the most diversification possible with just two funds. I don't own any ETFs because I contribute mo...
by Pangloss
Sat Mar 24, 2007 8:04 pm
Forum: Personal Investments
Topic: How to choose a short term bond fund
Replies: 11
Views: 3624

I own VBISX, but I doubt there's really much difference. I believe Berstein in The Intelligent Asset Allocator recommends going with short term corporate bonds, but Swensen in Unconventional Success likes government issues for "alignment of interests" reasons. I figure VBISX is the compromise fund.
by Pangloss
Sat Mar 24, 2007 7:54 pm
Forum: Personal Investments
Topic: slice and dice methods question
Replies: 9
Views: 2903

thanks

Thanks very much for the input and the return data. Tax consequences and limited fund choices are something I failed to consider. 100% of my investments are tax sheltered and both my Roth and 403(b) are at Vanguard, so the limitations that everyone mentioned are not something I have to worry about yet. I'll remember your responses for when my circumstances change. Thanks again.
by Pangloss
Sat Mar 24, 2007 6:26 pm
Forum: Personal Investments
Topic: Advice or Suggestions Welcomed
Replies: 5
Views: 1904

I think what you suggest looks good. My only comment is that as you add to your portfolio, the assets in your Roth will probably begin to fall below the target allocations you've set for them, since you won't be adding to that account. You might want to hold the international fund in more than one account like so it'll be easier to rebalance across accounts and maintain your desired allocation as your portfolio grows.

But I just noticed that you've taken care of this by holding the total stock market fund in multiple accounts.
by Pangloss
Sat Mar 24, 2007 6:16 pm
Forum: Personal Investments
Topic: slice and dice methods question
Replies: 9
Views: 2903

slice and dice methods question

I've noticed that most people who slice and dice their portfolios start with a market fund as a base and then give their portfolio a value tilt by holding another value fund for that asset class (S&P 500 + large cap value, for example). Currently I have 20% of my stock holdings in Vanguard Large Cap Value and 10% in Vanguard Large Cap Growth for a total of 30% large cap. I feel like this gives me a better hold on exactly which asset class is in which fund and more opportunity for a rebalancing bonus. However, since I've noticed that most people go for market + value rather than growth + value, I wonder if I'm missing something. I'd like to hear people's thoughts on the advantages and disadvantages to each approach. Thanks, everyone.
by Pangloss
Tue Mar 20, 2007 7:10 pm
Forum: Personal Investments
Topic: Bond Portfolio Advice
Replies: 1
Views: 1641

bonds for charity

Hi Jazzman.

I don't have much advice on selling the bonds, but if it's going to be a while before you give any to charity, you might think about opening a donor advised fund and transferring the bonds to that account immediately. The minimum to open at Vanguard is $25K, but Fidelity has a $5K minimum, I think. The transfer is irrevocable, and the bonds will be sold by the donor advised fund after you make the transfer. You get to pick how the proceeds from the bond sale are invested until you decide to make the charitable contribution, but you get to count it as a tax deduction as soon as the bonds get to the donor advised fund. It might be worth looking into. Good luck.
by Pangloss
Sat Mar 17, 2007 9:31 pm
Forum: Investing - Theory, News & General
Topic: Excel, what functions do you use?
Replies: 21
Views: 8864

asset allocation spreadsheet

My setup sounds similar to 4th&goal's. However, I used the MSN stock quote plug-in for Excel to update the prices each day and then multiply that by the number of shares I own to give me my allocation breakdown. I also use conditional formatting to shade boxes for asset classes that drift pass their target allocation. I like the arrangement because I only have to click "update quotes," and I never have to type prices in by hand. I also carry the calculations out for one iteration to show the effects of money I move in and out of asset classes. For example, if I add $500 to one fund and transfer $500 from a second to a third fund, the new dollar value for all funds and the new % allocations are displayed in columns to the right...
by Pangloss
Sat Mar 17, 2007 7:18 pm
Forum: Personal Investments
Topic: "Intelligent Asset Allocator" for investing newbie
Replies: 13
Views: 6253

book choice

To the best of my memory, I've loaned The Intelligent Asset Allocator to five people, and I'm pretty sure that none of them finished it. Currently a friend has my copy of Four Pillars and it seems to be slow going for that title as well. I completely agree about IAA being the best book I've read on the topic, but it's just too much for most people. Recently I bought a copy of The Random Walk Guide to Investing for another friend. Most people don't care for reading about investing as much as the folks on this forum do, so I looked for the shortest, easist read I could find that still had excellent advice. The Random Walk Guide fits the bill pretty well.
by Pangloss
Tue Mar 13, 2007 7:03 pm
Forum: Investing - Theory, News & General
Topic: Wall St Journal Smart Money Fund Screen for March 13
Replies: 0
Views: 1134

Wall St Journal Smart Money Fund Screen for March 13

Below is an exceprt from the Wall St. Journal's Smart Money Fund Screen for March 13, 2007. The article is a plug for load funds: "But investing only in funds with low costs means forgoing a lot of well-respected funds that are stellar performers simply because they charge a load. Of the open 6,000 load funds and share classes Lipper tracks, 2,200 are in the top half of their peer groups over the trailing three-year period." The numbers in the article state that just over one-third of load funds were in the top half of their peer group. From a randomly chosen group of funds you'd expect half of the group to be in the top half of their peer group, so this article is really a testament (though certainly unintentional) to the importa...
by Pangloss
Thu Mar 08, 2007 8:45 pm
Forum: Investing - Theory, News & General
Topic: Correlation of Energy Fund to Stock & Bond Indices
Replies: 10
Views: 3169

energy fund correlations

Hi Jazztonight. The Bogleheads' Guide to Investing has some helpful tables of correlation coefficients in chapter 12. R-squred for Vanguard Energy vs Total Stock Market is 0.26 and Energy vs Total Bond Market is 0. Those values are for a 5 year period, but I don't know the exact dates.

I have allocated 10% of my equity portfolio to the Vanguard Energy Fund, and it has served me quite well. I made this decision about 4 years ago with the idea that high oil prices are a drag on the rest of the economy. I didn't consider the potential downside of recession leading to reduced energy demands though. I guess that's where Opec comes into play.
by Pangloss
Thu Mar 08, 2007 8:27 pm
Forum: Investing - Theory, News & General
Topic: Allocation and rebalancing across multiple accounts
Replies: 16
Views: 7510

rebalancing

Hi HFC. I'm in the minority here, but I treat my wife's holdings as a separate portfolio from my own holdings. I made this decision after helping my parents with their investments. Between the two of them, they have 6 different accounts at three different investment companies (80% of net value at Vanguard), and rebalancing has been more trouble than I'd like. Laura's suggestion about owning the same fund in more than one account is definitely the best way to go about arranging all the assets into one portfolio. I've started to adjust my parents' holdings to that arrangement and rebalancing is getting easier. Having said that, I'm quite happy treating my wife's funds as a separate porftolio from what I own. The allocations are very similar, ...
by Pangloss
Sun Mar 04, 2007 9:03 pm
Forum: Personal Investments
Topic: Is the Time Travel Fund a good investment? Why or why not?
Replies: 15
Views: 7918

expenses are too hi

Hi everyone. I read the old forum for a while, and just registered here at the new one. This time travel fund thread has finally inspired me to post. I read a bit about the time travel fund, and only $1 of the ten is actually invested in the fund. The other $9 are used to cover various expenses. I think I'll stay away from any fund with a 90% expense ratio!