Left Advisory Portfolio to do it myself and fear I made mess of things

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anniegrace
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Left Advisory Portfolio to do it myself and fear I made mess of things

Post by anniegrace » Sun Jun 10, 2018 4:04 pm

Hi, if I didn't find this site, I'm afraid I might be back at hiring an advisor. I am 57. Single with 12 year mortgage. I have always hired advisors to manage my IRA and individual account separate from my work 401K which I manage myself at Fidelity. So I have 3 accounts:

135k in individual account
87k in IRA
426k in 401k

Edward Jones (ED) had me in 100% stock. Dec, 2017 I transferred all the stock out of ED to Fidelity to have all accounts in one place and to manage myself. I took a 14 day course from early to late at night studying investing which I know is not enough. I was not aware of bogle heads until today. I sold almost all my stock and purchased mutual funds. I kept some stock due to capital gains and because some were doing so poorly, I hated losing that much.

Now I think I made a mess of things and am getting frightened and would welcome any advise please. I don't know how to use the Portfolio Visualizer to see how my allocation would perform in a 2008/2009 downturn. All my mutual funds were purchased Dec, '17 or January, '18 (short term) and the stock is long term. I didn't sell all stock in Dec, 2017 due to capital gains or because loss would be too great. Now I wonder if I should sell all funds and stock except Amazon and Berkshire and move my entire IRA and individual account to Vanguard and purchase these funds:

20% US large cap - Vanguard Total Stock Market Index Fund Admiral Shares VTSAX (VTI is ETF version)<
9% US mid/small cap - Vanguard Total Stock Market Index Fund Admiral Shares VTSAX (same as above)
19% international - Vanguard Total International Stock Index Fund Admiral Shares VTIAX<br/>
possibly 12% individual sector stock - keep Amazon, Berkshire and maybe another but not sure<br/>

40% bonds:
11% US short term bond
Vanguard Short-Term Investment-Grade Fund Admiral Shares VFSUX and
Vanguard Total Bond Market Index Fund Admiral Shares VBTLX
14% us intermediate term bond
Vanguard Intermediate-Term Investment-Grade Fund Admiral Shares VFIDX 8%
Vanguard Total Bond Market Index Fund Admiral Shares VTBLX 6<br/>
3% US Long Term bond - Vanguard Total Bond Market Index Fund Admiral Shares VBTLX
12% International Bond - Vanguard Total International Bond Index Fund Admiral Shares VTABX

Below is the mess I made of things in regards to funds I've purchased. YTD Return on individual account is +3.35 and IRA is 6.91| 76% Stock, 7% Foreign Stock, 4% Bonds, 10% short term

Individual account:
Symbol Description Amount invested
CASH 23,000.00
AEGFX AMERICAN EUROPACIFIC GROWTH CLASS F1 6820.00
AFIFX AMERICAN FUNDAMENTAL INVESTORS CL F1 3415.00
BRKB BERKSHIRE HATHAWAY INC DEL CL B NEW 6067.00
COST COSTCO WHOLESALE CORP 7132.00
DLSNX DOUBLELINE LOW DURATION CL N - BOND FUND 5010.00
ESRX EXPRESS SCRIPTS HLDG CO COM 6114.00
FCNTX FIDELITY CONTRAFUND 4710.00
FDX FEDEX CORP COM 5203.00
FIVFX FIDELITY INTL CAP APPRECIATION FUND 2592.00
FSEAX FIDELITY EMERGING ASIA FUND 2563.00
FSMEX FIDELITY SELECT MED TECHNOLOGY & DEVICES 4153.00
FUSVX FIDELITY 500 INDEX PREMIUM CLASS 10464.00
HSBC HSBC HLDGS PLC SPON ADR NEW 49.38
KSS KOHLS CORP COM 11,741.00
MCD MCDONALDS CORP 3378.00
PG PROCTER AND GAMBLE CO COM 2315.00
PRSVX T ROWE PRICE SMALL CAP VALUE FUND 2924.00
SPG SIMON PPTY GRP INC 4961.00
TRBCX T ROWE PRICE BLUE CHIP GROWTH INC 4847.00
TRULX T ROWE PRICE US LARGE CAP CORE FUND 9150.00
V VISA INC COM CL A 8084.00

IRA Below
CASH 12,000.00
AMERICAN FUNDAMENTAL INVESTORS CL F1 $10984.38
AMAZON.COM INC $11787.93
DOUBLELINE LOW DURATION CL N BOND FUND $5010.38
FIDELITY SMALL CAP GROWTH $5457.63
FIDELITY EMERGING ASIA FUND $3892.78
FIDELITY SELECT MED TECHNOLOGY & DEVICES $3476.73
GRAINGER W W INC COM STK USD0.50 $6606.39
MONDELEZ INTL INC COM $3222.18
MERCK & CO INC NEW COM $3629.64
PRIMECAP ODYSSEY STO CK FUND $5041.09
T ROWE PRICE BLUE CHIP GROWTH INC $5254.08
VANGUARD EQUITY INCOME INVESTOR CL $4664.34
V F CORP $6024.2

Thank you so much for being here and encouraging everyone to not hire an advisor. I have had a bad sense all these years.

livesoft
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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by livesoft » Sun Jun 10, 2018 4:47 pm

Since you are at Fidelity, I would not bother with any Vanguard products.

See also: https://www.bogleheads.org/wiki/Fidelity
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dharrythomas
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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by dharrythomas » Sun Jun 10, 2018 5:07 pm

Yes, you've got a mess in your portfolio. On the other hand, with investable assets of approximately $650K, you are far ahead of the median household. If your spending requirement in retirement is not outsized and you plan to work until 67, any place but here you are on track.

Now for the mess. I didn't see anything in you account that equaled more than 2% of you total assets. Even if you got outsized returns from Amazon, it will be overwhelmed by the other 98% of your portfolio. You need to simplify. There are some folks here that will offer some more complex solutions, but if you simplify and continue to invest, you will be fine.

I'd take everything in the IRA and put it in LifeStrategy Moderate Growth.

I'd take the 401(K) and put it in whatever Target Date Fund is available (preferably Vanguard, but the concept is better than the mess you've got now in your other accounts, even though Fidelity is too oriented towards active management and growth stocks). One of the Fidelity 60/40 balanced funds is not awful. But pick one option for your 401(K).

In the taxable account, sell everything you've got that shows a tax loss. Put it in either the Vanguard Tax-Managed Balanced Fund or the Total World Stock Index Fund. Put all new investments into those funds. The only change is if you notice a stock with a tax loss, sell immediately and add the balance to your mutual fund.

The best thing you can do at this point is set up something simple, keep contributing, and try to pay off your mortgage by the time you retire.

delamer
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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by delamer » Sun Jun 10, 2018 5:17 pm

Nothing you sell within the IRA will trigger any current taxes. You will only pay taxes on the IRA money when you make withdrawals.

For now, move all your IRA funds into the Fidelity Freedom 2025 Fund: https://fundresearch.fidelity.com/mutua ... /315792663

Or you can buy the equivalent Vanguard fund (you don’t need to leave Fidelity to do so): https://investor.vanguard.com/mutual-fu ... file/VTTVX

Leave the individual account alone except to figure out how large your capital gains are for each investment in the taxable account, and whether each is long or short term.

Finally, get a list of your current investments in your 401(k).

Post all of the above information here and you’ll get better advice. It may be that your IRA holding will need to change again, but it will be in a good fund until that can be determined.

Jablean
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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by Jablean » Sun Jun 10, 2018 5:20 pm

Absolutely no reason to leave Fidelity, find the matching funds there. Many bogleheads do Fidelity or even both. You seem to be panicking even though you are doing fine. Is there something wrong with a 3% or 6% gain in half a year?

I would suggest a gradual approach - this month I'm going to consolidate three of my funds or stock that are <$5000 into one fund (maybe even one you already own), I'm going to live with that for a month see if my gut thinks that was good. Next month I'm going to look at my stock (you have one with $50?) and decide keepers if any and put the rest into index funds. I'm sure you'll get lots of advice to just move everything now and that's fine but are you going to second guess yourself the next day. Some are comfortable being hares and others like the turtle approach so take your personality into account.

Remember to offset stocks with lost Capital Gains against your winners with high Capital Gains - great for tax harvesting in your individual account.

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FiveK
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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by FiveK » Sun Jun 10, 2018 6:03 pm

delamer wrote:
Sun Jun 10, 2018 5:17 pm
For now, move all your IRA funds into the Fidelity Freedom 2025 Fund....
I suspect the intended fund is the Fidelity Freedom® Index 2025 Fund.

Whether that stock/bond ratio fits one's desire is another question.

anniegrace
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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by anniegrace » Mon Jun 11, 2018 2:21 pm

Thanks so much for your comments. 650k could be nothing if we have a downturn and since I'm so high in equity, I could get hit worse. My 401K has to be taken out of the picture because I am still working and I only have funds offered by my company to allocate it to and not Fidelity funds. It is only housed at Fidelity. I am aware that there are no capital gains with the IRA account which is separate from my 401k (inherited IRA).

I fear everything in one fund like the Fidelity Freedom® Index 2025 Fund or the LifeStrategy Moderate Growth fund even though those funds allocate between equities and bonds. I don't know why I don't lean more towards those. When I did my research, I studied them but didn't give them much consideration. Maybe I should based on your input. I have been reading bogle heads and people seem to recommend at least 3 or 4 funds rather than one target fund but agreeably less than what I have.

I am definitely considering Total World Stock Index Fund with Vanguard as one of my funds and don't think I found one like this at Fidelity.

Jablean, I like your approach of doing it gradually and appreciate your comforting words. I needed to hear that. I am panicking since I've never done it on my own and have no bonds. Bonds scare me because I could never understand them even if I tried and they seem like they go down more than they could ever go up and have no clue on what bonds to buy.

Delamar, thank you for this site: https://www.bogleheads.org/wiki/Fidelity. I will read through it. Before I purchased my funds part of the 14 day research I did was comparing all the index funds at Vanguard with Fidelity as well as trading prices. Since I only had about 80 different stocks to sell, I could not have done that at Vanguard with their fees being higher which is why I put it at Fidelity in the first place. Now I have like 10 stocks which I will sell as well except AMZ and maybe 2 others.

I wish someone could say something like, "I have all my funds in these 3 or 4 Vanguard funds or these 3 or 4 Fidelity funds based on a 70/30 (equity/bond) or 60/40 approach and leave them alone" That would be so much easier and I've been looking all over boglehead for this sort of allocation but can't find it. Having it all in one fund is even easier than 3 or 4 I know but I'm just not sure.

I will do some more research. Do you think I'm okay not having anyone even if we hit a serious downturn

totesmagotes
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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by totesmagotes » Mon Jun 11, 2018 2:31 pm

anniegrace wrote:
Mon Jun 11, 2018 2:21 pm

I fear everything in one fund like the Fidelity Freedom® Index 2025 Fund or the LifeStrategy Moderate Growth fund even though those funds allocate between equities and bonds. I don't know why I don't lean more towards those. When I did my research, I studied them but didn't give them much consideration. Maybe I should based on your input. I have been reading bogle heads and people seem to recommend at least 3 or 4 funds rather than one target fund but agreeably less than what I have.

I wish someone could say something like, "I have all my funds in these 3 or 4 Vanguard funds or these 3 or 4 Fidelity funds based on a 70/30 (equity/bond) or 60/40 approach and leave them alone" That would be so much easier and I've been looking all over boglehead for this sort of allocation but can't find it. Having it all in one fund is even easier than 3 or 4 I know but I'm just not sure.
The target date funds (and the LifeStrategy-style funds) are funds of funds. In other words, although the Fidelity Freedom Index 2025 fund is one fund, it consists of many individual funds (see the actual composition HERE). The Vanguard Target Date retirement funds contain four separate funds (US equity, international equity, US bond, and international bond). The LifeStrategy fund is similar (see HERE for the breakdown of the four funds that comprise the LifeStrategy Conservative Growth Fund). The benefit of these funds is that they are easy for you to maintain (just put your money into one of them, and you don't need to worry buying or selling a bunch of individual funds). In addition, they will handle rebalancing for you.
Last edited by totesmagotes on Mon Jun 11, 2018 10:10 pm, edited 1 time in total.

Jack FFR1846
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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by Jack FFR1846 » Mon Jun 11, 2018 2:37 pm

Easy to fix.

Here's all the funds you need:

US Stock: FSTVX
Total US bond: FSITX
International equity: FSIVX

Dump everything else.
Bogle: Smart Beta is stupid

pkcrafter
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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by pkcrafter » Mon Jun 11, 2018 3:05 pm

Jack FFR1846 wrote:
Mon Jun 11, 2018 2:37 pm
Easy to fix.

Here's all the funds you need:

US Stock: FSTVX
Total US bond: FSITX
International equity: FSIVX

Dump everything else.
Yes, Jack's recommendation is based on this well-known Bogleheads portfolio: The 3-fund. Vanguard uses a 4- fund version (international bond added) of this in their target date funds and lifestrategy funds. Fidelity Freedom Index (target date) funds will also work, but Fidelity makes theirs look more complex to look important. :happy The 3 funds Jack suggested are equivalent to Vanguard's 3 fund. You should have no fears about all-in-one funds as the funds within are separate. The main thing you must do is choose one with the allocation you want. Don't choose them by date. Or, choose the individual funds if that seems better. With separate funds you can choose the allocations to total market, international, and bonds.

viewtopic.php?f=10&t=88005


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When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

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Taylor Larimore
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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by Taylor Larimore » Mon Jun 11, 2018 3:16 pm

anniegrace:


Welcome to the Bogleheads Forum!
I wish someone could say something like, "I have all my funds in these 3 or 4 Vanguard funds or these 3 or 4 Fidelity funds based on a 70/30 (equity/bond) or 60/40 approach and leave them alone" That would be so much easier and I've been looking all over boglehead for this sort of allocation but can't find it.
Look no further: The Three-Fund Portfolio.

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

retiredjg
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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by retiredjg » Mon Jun 11, 2018 3:29 pm

Anniegrace, it is a mess. But it is a fixable mess. :D You have come to the right place.

There will be a tax cost to fix the taxable account (individual account). The rest can be fixed with no tax cost.

The place to start unwinding all this, believe it or not, is your 401k. We need to know how your 401k is currently invested and what funds are available in that plan. For the list of funds, we need the fund name, the ticker if one is given, and the ER (expense ratio) for each fund. It must be the ER that is associated with your 401k plan. Just getting that number from the retail internet will not do.

You can add that information to your original post using the little pencil like button at the top.

Now I wonder if I should sell all funds and stock except Amazon and Berkshire and move my entire IRA and individual account to Vanguard and purchase these funds:
There is no need to move this money again. Fidelity has many funds that are just as good as Vanguard's funds. And their customer service can be better. However, do not buy Vanguard funds at Fidelity. The transaction costs are too high and nothing is gained.

20% US large cap - Vanguard Total Stock Market Index Fund Admiral Shares VTSAX (VTI is ETF version)<
9% US mid/small cap - Vanguard Total Stock Market Index Fund Admiral Shares VTSAX (same as above)
19% international - Vanguard Total International Stock Index Fund Admiral Shares VTIAX<br/>
possibly 12% individual sector stock - keep Amazon, Berkshire and maybe another but not sure<br/>

40% bonds:
11% US short term bond
Vanguard Short-Term Investment-Grade Fund Admiral Shares VFSUX and
Vanguard Total Bond Market Index Fund Admiral Shares VBTLX
14% us intermediate term bond
Vanguard Intermediate-Term Investment-Grade Fund Admiral Shares VFIDX 8%
Vanguard Total Bond Market Index Fund Admiral Shares VTBLX 6<br/>
3% US Long Term bond - Vanguard Total Bond Market Index Fund Admiral Shares VBTLX
12% International Bond - Vanguard Total International Bond Index Fund Admiral Shares VTABX
This is a decent idea (except you should use Fidelity index funds instead of Vanguard funds) except you can cut the bond funds down to only a couple of funds. There is no need to have this many bond funds.

This is why we need to know about the 401k - some of the things you want here are available there. Then you build the rest of the portfolio around that.
Below is the mess I made of things in regards to funds I've purchased. YTD Return on individual account is +3.35 and IRA is 6.91| 76% Stock, 7% Foreign Stock, 4% Bonds, 10% short term

Individual account:
Symbol Description Amount invested
CASH 23,000.00
AEGFX AMERICAN EUROPACIFIC GROWTH CLASS F1 6820.00
AFIFX AMERICAN FUNDAMENTAL INVESTORS CL F1 3415.00
BRKB BERKSHIRE HATHAWAY INC DEL CL B NEW 6067.00
COST COSTCO WHOLESALE CORP 7132.00
DLSNX DOUBLELINE LOW DURATION CL N - BOND FUND 5010.00
ESRX EXPRESS SCRIPTS HLDG CO COM 6114.00
FCNTX FIDELITY CONTRAFUND 4710.00
FDX FEDEX CORP COM 5203.00
FIVFX FIDELITY INTL CAP APPRECIATION FUND 2592.00
FSEAX FIDELITY EMERGING ASIA FUND 2563.00
FSMEX FIDELITY SELECT MED TECHNOLOGY & DEVICES 4153.00
FUSVX FIDELITY 500 INDEX PREMIUM CLASS 10464.00
HSBC HSBC HLDGS PLC SPON ADR NEW 49.38
KSS KOHLS CORP COM 11,741.00
MCD MCDONALDS CORP 3378.00
PG PROCTER AND GAMBLE CO COM 2315.00
PRSVX T ROWE PRICE SMALL CAP VALUE FUND 2924.00
SPG SIMON PPTY GRP INC 4961.00
TRBCX T ROWE PRICE BLUE CHIP GROWTH INC 4847.00
TRULX T ROWE PRICE US LARGE CAP CORE FUND 9150.00
V VISA INC COM CL A 8084.00
There is only one fund here worth keeping - the Fidelity 500 index - and I'm not sure I'd even keep that.

You should sell everything here (except the 500 index). This does not mean you have to sell it all now, but I would not take more than a calendar year (two tax years) to get it done.

Sell anything at a loss or just a small gain immediately. Then we can look into what else you can sell to offset those losses. Do you know about how capital gains are taxed?

Do you know your tax bracket?


IRA Below
CASH 12,000.00
AMERICAN FUNDAMENTAL INVESTORS CL F1 $10984.38
AMAZON.COM INC $11787.93
DOUBLELINE LOW DURATION CL N BOND FUND $5010.38
FIDELITY SMALL CAP GROWTH $5457.63
FIDELITY EMERGING ASIA FUND $3892.78
FIDELITY SELECT MED TECHNOLOGY & DEVICES $3476.73
GRAINGER W W INC COM STK USD0.50 $6606.39
MONDELEZ INTL INC COM $3222.18
MERCK & CO INC NEW COM $3629.64
PRIMECAP ODYSSEY STO CK FUND $5041.09
T ROWE PRICE BLUE CHIP GROWTH INC $5254.08
VANGUARD EQUITY INCOME INVESTOR CL $4664.34
V F CORP $6024.2
I'd sell all of this now and put it into the Fidelity Freedom Index (2020 I believe) fund that has about a 60% stock/40% bond allocation. This is a temporary destination probably.

soccerrules
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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by soccerrules » Mon Jun 11, 2018 3:38 pm

Welcome to BH.
I would keep reading and not rush to make any more changes until YOU understand "why" you are making the changes. It appears you have 60/40 portfolio of Stocks and Bonds (AA) now -- that is within reason for someone that is 57. The market is likely to have a larger adjustment in the months/years to come- but no one really knows. It could keep going up. If it drops -- then keep investing in your 401K and if you have cash on the "sidelines" it might be a good time to put it in the market. You need to figure out what your "sleep at night" AA is.

I was like you in that I had an FA up until the last year and didn't really know much about investing. I didn't feel like I needed too, because that was what I was paying them to do. :oops: You did not say much more about your plan for the future. I would read at least one all-inclusive book on your financial life (not just investments, wiki has suggestions). Then keep researching the board and reading others posts and the very helpful advice.

When do you want to have "financial freedom" to not work - or retire ?
What do you think your annual spending will be in retirement ?
Expect a Pension ? Social Sec ?
Pay off mortgage before retire ?
Healthcare coverage prior to 65 ?
Essentially do you have a goal or plan ?-- the reading will help you figure out how investing plays into to your plan.

Once you have a little more idea of what you want to do it will make more sense. With the stocks/mutual funds that you have in your taxable brokerage account and capital gains considerations, you may decide to sell some (more) in 2018 and then some in 2019 to minimize the tax impact. If you had an account online with EJ you might still have access to report etc. Look for the unrealized capital gains report.

Great FREE advice here and people are a great support for the DIY'rs. Don't panic.
Don't let your outflow exceed your income or your upkeep will be your downfall.

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vineviz
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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by vineviz » Mon Jun 11, 2018 3:48 pm

Jack FFR1846 wrote:
Mon Jun 11, 2018 2:37 pm
Easy to fix.

Here's all the funds you need:

US Stock: FSTVX
Total US bond: FSITX
International equity: FSIVX

Dump everything else.
I agree with Jack.

Seriously, this mess is easy to clean up.

I'm going to assume that the 60% stock/40% bond allocation you mentioned is the one you want. I'm also assuming the individual account is meant as retirement savings.
  • In both your IRA and your 401k get rid of your current holdings. In those accounts, invest 50% in FSITX, 25% in FSIVX, and 25% in FSTVX.
  • In your individual account, pay attention to taxes but sell everything and buy 100% FSTVX
This will put the bonds in the tax-advantaged accounts, where they probably belong. It gives you an overall 60/40 portfolio (which you said you wanted). And it give you a simple strategy that is easy to follow going forward.
Last edited by vineviz on Mon Jun 11, 2018 5:00 pm, edited 1 time in total.
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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by oldcomputerguy » Mon Jun 11, 2018 4:18 pm

delamer wrote:
Sun Jun 10, 2018 5:17 pm
Or you can buy the equivalent Vanguard fund (you don’t need to leave Fidelity to do so): https://investor.vanguard.com/mutual-fu ... file/VTTVX
On the contrary, do NOT buy this fund at Fidelity. They will tack on a $75 purchase fee for buying a Vanguard mutual fund in a Fidelity account. I'd suggest rather the Fidelity equivalent FQIFX (Fidelity Freedom Index 2025 Fund).
It’s taken me a lot of years, but I’ve come around to this: If you’re dumb, surround yourself with smart people. And if you’re smart, surround yourself with smart people who disagree with you.

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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by oldcomputerguy » Mon Jun 11, 2018 4:24 pm

vineviz wrote:
Mon Jun 11, 2018 3:48 pm
I agree with Jack.

Seriously, this mess is easy to clean up.

I'm going to assume that the 60% stock/40% bond allocation you mentioned is the one you want. I'm also assuming the individual account is meant as retirement savings.
  • In both your IRA and your 401k get rid of your current holdings. In those accounts, invest 50% in FSITX, 25% in FSIVX, and 25% in FSTVX.
  • In your individual account, pay attention to taxes but sell everything and buy 100% FSITX
This will put the bonds in the tax-advantaged accounts, where they probably belong. It gives you an overall 60/40 portfolio (which you said you wanted). And it give you a simple strategy that is easy to follow going forward.
Are you suggesting that the OP fill her individual (taxabe?) account with FSITX U.S. Bond Index??
It’s taken me a lot of years, but I’ve come around to this: If you’re dumb, surround yourself with smart people. And if you’re smart, surround yourself with smart people who disagree with you.

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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by delamer » Mon Jun 11, 2018 4:53 pm

oldcomputerguy wrote:
Mon Jun 11, 2018 4:18 pm
delamer wrote:
Sun Jun 10, 2018 5:17 pm
Or you can buy the equivalent Vanguard fund (you don’t need to leave Fidelity to do so): https://investor.vanguard.com/mutual-fu ... file/VTTVX
On the contrary, do NOT buy this fund at Fidelity. They will tack on a $75 purchase fee for buying a Vanguard mutual fund in a Fidelity account. I'd suggest rather the Fidelity equivalent FQIFX (Fidelity Freedom Index 2025 Fund).

The Fidelity fund has a .66% ER and the Vanguard fund has a .14%.

So the $75 would be well spent in most cases.

Given that the OP might not keep the fund based on what she determines about her other investments, however, it probably does not make sense to spend the $75.

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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by vineviz » Mon Jun 11, 2018 5:02 pm

oldcomputerguy wrote:
Mon Jun 11, 2018 4:24 pm
Are you suggesting that the OP fill her individual (taxabe?) account with FSITX U.S. Bond Index??
That was a good catch. I confused the tickers, but it should be fixed now.
"Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves." ~~ Peter Lynch

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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by FiveK » Mon Jun 11, 2018 5:02 pm

delamer wrote:
Mon Jun 11, 2018 4:53 pm
The Fidelity fund has a .66% ER and the Vanguard fund has a .14%.
It appears there is confusion between FFTWX - Fidelity Freedom ® 2025 Fund | Fidelity Investments for FQIFX - Fidelity Freedom ® Index 2025 Fund - Investor Class | Fidelity Investments.

One has a .66% ER and the other has a .15% ER. The one with the 0.15% ER would be recommended.

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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by oldcomputerguy » Mon Jun 11, 2018 5:07 pm

delamer wrote:
Mon Jun 11, 2018 4:53 pm
oldcomputerguy wrote:
Mon Jun 11, 2018 4:18 pm
delamer wrote:
Sun Jun 10, 2018 5:17 pm
Or you can buy the equivalent Vanguard fund (you don’t need to leave Fidelity to do so): https://investor.vanguard.com/mutual-fu ... file/VTTVX
On the contrary, do NOT buy this fund at Fidelity. They will tack on a $75 purchase fee for buying a Vanguard mutual fund in a Fidelity account. I'd suggest rather the Fidelity equivalent FQIFX (Fidelity Freedom Index 2025 Fund).

The Fidelity fund has a .66% ER and the Vanguard fund has a .14%.

So the $75 would be well spent in most cases.

Given that the OP might not keep the fund based on what she determines about her other investments, however, it probably does not make sense to spend the $75.
You're thinking of the non-index Freedom Fund. The index version (which was the specific fund I cited) has a 0.15% ER.
It’s taken me a lot of years, but I’ve come around to this: If you’re dumb, surround yourself with smart people. And if you’re smart, surround yourself with smart people who disagree with you.

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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by delamer » Mon Jun 11, 2018 5:24 pm

oldcomputerguy wrote:
Mon Jun 11, 2018 5:07 pm
delamer wrote:
Mon Jun 11, 2018 4:53 pm
oldcomputerguy wrote:
Mon Jun 11, 2018 4:18 pm
delamer wrote:
Sun Jun 10, 2018 5:17 pm
Or you can buy the equivalent Vanguard fund (you don’t need to leave Fidelity to do so): https://investor.vanguard.com/mutual-fu ... file/VTTVX
On the contrary, do NOT buy this fund at Fidelity. They will tack on a $75 purchase fee for buying a Vanguard mutual fund in a Fidelity account. I'd suggest rather the Fidelity equivalent FQIFX (Fidelity Freedom Index 2025 Fund).

The Fidelity fund has a .66% ER and the Vanguard fund has a .14%.

So the $75 would be well spent in most cases.

Given that the OP might not keep the fund based on what she determines about her other investments, however, it probably does not make sense to spend the $75.
You're thinking of the non-index Freedom Fund. The index version (which was the specific fund I cited) has a 0.15% ER.
Thanks.

This is the second time this week that I’ve confused two funds with very similar names.

I take some responsibility, but why do these fund companies make the names so similar? :x

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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by Jack FFR1846 » Mon Jun 11, 2018 5:37 pm

delamer wrote:
Mon Jun 11, 2018 5:24 pm


This is the second time this week that I’ve confused two funds with very similar names.

I take some responsibility, but why do these fund companies make the names so similar? :x
And of course Fidelity went and clean sweep changed all the former "spartan" funds to some other new names. Expect another trendy name in a few years. :D
Bogle: Smart Beta is stupid

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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by anniegrace » Mon Jun 11, 2018 7:47 pm

I had a reply and clicked submit but I don't see it now. The information you have taken so much of your precious time to share has been perfect and this site is very helpful in finding Vanguard comparisons: https://www.bogleheads.org/wiki/Fidelity

I would prefer to not leave Fidelity so soon because I just transitioned everything over and would have to sell most all the funds because some Fidelity funds aren't offered at Vanguard and vice versa without fees like the 75.00 fee mentioned.

There are work force adjustments going on within my organization each quarter and I fear retirement may be forced upon me sooner than desired. I want to be in a position to work only because I want to as opposed to having to (don't we all).

My goal here is to get more secure and what I actually have is 3-4% only in bonds.

I did not know target funds invest in mutual funds so in knowing this, it becomes an ER upon ER. ER for the target fund + ER for the mutual funds they buy. It sort of reminds me of FidelityGo (https://www.fidelity.com/managed-accoun ... o/overview) which seems to be managed more by algorithms. The target fund managers (if there really are personal managers) do all the selling and buying and there are managers of each fund that do the same It is multi-layered tier system and I lose even more control. I believe I know how to reallocate funds and why and how you can become heavier in equity vs fixed income funds in time. I also know about capital gains (short term, long term and different tax rates) since I sold about 70 stocks to buy funds and broke even with the loss being = to the gains. The target funds seem too much of a loss of control when I just moved away from that.

Here is what I will do per Jack FFR1846 and vineviz. I feel more comfortable with this and a 70/30 or 75/25 ratio.

US Stock: FSTVX 42%
Total US bond: FSITX - 25% or 30%
International equity: FSIVX - 28%
+ invest in 1/3rd of the 30% of bonds in Vanguard Total International Bond Index Fund Admiral Shares VTABX if possible or find a Fidelity equivalent.

That would be so much simpler and less unnerving. For some reason I cannot understand bonds and fear them but everyone says they are safe (fixed income fund) yet you can lose more than you can gain it seem.

Thank you all very much. I am still reviewing everyone's comments before making a move.

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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by anniegrace » Mon Jun 11, 2018 8:00 pm

Oh I forgot to say that my 401k does not have any funds that are symbols. I am only offered funds offered by my employer AT&T (e.g., AT&T International Stock Fund, A&T Large Index Fund, etc.) I'm not investing in AT&T stock in these funds but the funds are just called that and the ER is .01. I cannot take my 401k and invest it in Fidelity funds or take my Fidelity funds and invest it in my 401k funds. AT&T hires Fidelity to "house it". I'm not sure of the correct term. It is separate from the IRA and my individual account. All 3 together sum to 650k as it is today but that isn't real money. It's not actually mine. It is just a figure on a screen. We know what 2008/2009 was like. The 401k is also 3% bonds and the rest equity funds so I will change it to be more safe as well.

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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by ReadyOrNot » Mon Jun 11, 2018 8:23 pm

You can look at the advisory portfolios on www.401411.com/att for reasonable examples of how to get close to recommended index funds in your 401K.
The low-cost stock index fund which is mostly large cap stocks is close enough to SP500 which is close enough to the total stock market index for all practical purposes. I guess the bond fund is supposed to be an approximation of an index bond fund which should be OK. Just go for the low-cost and simple stuff.

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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by LadyGeek » Mon Jun 11, 2018 8:30 pm

^^^ Caution, the bottom section says "You should try to invest in as many of these asset classes as possible..." which is not what the OP should do. It may be confusing.
anniegrace wrote:
Mon Jun 11, 2018 8:00 pm
Oh I forgot to say that my 401k does not have any funds that are symbols.
Welcome! Symbols are for funds that are publicly traded. Many companies build their own funds which are "private" and can't have a ticker symbol. However... the fund's fact sheet will have a benchmark that it will track. Just supply the benchmark's name, such as "S&P 500", and we'll figure it out.
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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by nedsaid » Mon Jun 11, 2018 8:48 pm

anniegrace wrote:
Sun Jun 10, 2018 4:04 pm
Hi, if I didn't find this site, I'm afraid I might be back at hiring an advisor. I am 57. Single with 12 year mortgage. I have always hired advisors to manage my IRA and individual account separate from my work 401K which I manage myself at Fidelity. So I have 3 accounts:

135k in individual account
87k in IRA
426k in 401k

NedsaId: Well, you have managed to amass $648,000 in assets in these accounts and that isn't bad. Most people have not been able to do what you have done and you should congratulate yourself on this achievement. Could you have done better? Probably. But at least you sought advice and hopefully learned things along the way.

Edward Jones (ED) had me in 100% stock. Dec, 2017 I transferred all the stock out of ED to Fidelity to have all accounts in one place and to manage myself. I took a 14 day course from early to late at night studying investing which I know is not enough. I was not aware of bogle heads until today. I sold almost all my stock and purchased mutual funds. I kept some stock due to capital gains and because some were doing so poorly, I hated losing that much.

Now I think I made a mess of things and am getting frightened and would welcome any advise please. I don't know how to use the Portfolio Visualizer to see how my allocation would perform in a 2008/2009 downturn. All my mutual funds were purchased Dec, '17 or January, '18 (short term) and the stock is long term. I didn't sell all stock in Dec, 2017 due to capital gains or because loss would be too great. Now I wonder if I should sell all funds and stock except Amazon and Berkshire and move my entire IRA and individual account to Vanguard and purchase these funds:

20% US large cap - Vanguard Total Stock Market Index Fund Admiral Shares VTSAX (VTI is ETF version)<
9% US mid/small cap - Vanguard Total Stock Market Index Fund Admiral Shares VTSAX (same as above)
19% international - Vanguard Total International Stock Index Fund Admiral Shares VTIAX<br/>
possibly 12% individual sector stock - keep Amazon, Berkshire and maybe another but not sure<br/>

40% bonds:
11% US short term bond
Vanguard Short-Term Investment-Grade Fund Admiral Shares VFSUX and
Vanguard Total Bond Market Index Fund Admiral Shares VBTLX
14% us intermediate term bond
Vanguard Intermediate-Term Investment-Grade Fund Admiral Shares VFIDX 8%
Vanguard Total Bond Market Index Fund Admiral Shares VTBLX 6<br/>
3% US Long Term bond - Vanguard Total Bond Market Index Fund Admiral Shares VBTLX
12% International Bond - Vanguard Total International Bond Index Fund Admiral Shares VTABX

Nedsaid: Why not buy a Target Date Fund for your IRA? What is available for your 401k? Seeing that your 401k is at Fidelity, perhaps you can get access to the Freedom Index Funds. For you, it would be the 2025 Target Date Fund. Fidelity offers these, they are called Fidelity Freedom Index Funds. They have a version that uses index funds and another version that uses active funds. Choose the index version.

Below is the mess I made of things in regards to funds I've purchased. YTD Return on individual account is +3.35 and IRA is 6.91| 76% Stock, 7% Foreign Stock, 4% Bonds, 10% short term

Individual account:
Symbol Description Amount invested
CASH 23,000.00
AEGFX AMERICAN EUROPACIFIC GROWTH CLASS F1 6820.00
AFIFX AMERICAN FUNDAMENTAL INVESTORS CL F1 3415.00
BRKB BERKSHIRE HATHAWAY INC DEL CL B NEW 6067.00
COST COSTCO WHOLESALE CORP 7132.00
DLSNX DOUBLELINE LOW DURATION CL N - BOND FUND 5010.00
ESRX EXPRESS SCRIPTS HLDG CO COM 6114.00
FCNTX FIDELITY CONTRAFUND 4710.00
FDX FEDEX CORP COM 5203.00
FIVFX FIDELITY INTL CAP APPRECIATION FUND 2592.00
FSEAX FIDELITY EMERGING ASIA FUND 2563.00
FSMEX FIDELITY SELECT MED TECHNOLOGY & DEVICES 4153.00
FUSVX FIDELITY 500 INDEX PREMIUM CLASS 10464.00
HSBC HSBC HLDGS PLC SPON ADR NEW 49.38
KSS KOHLS CORP COM 11,741.00
MCD MCDONALDS CORP 3378.00
PG PROCTER AND GAMBLE CO COM 2315.00
PRSVX T ROWE PRICE SMALL CAP VALUE FUND 2924.00
SPG SIMON PPTY GRP INC 4961.00
TRBCX T ROWE PRICE BLUE CHIP GROWTH INC 4847.00
TRULX T ROWE PRICE US LARGE CAP CORE FUND 9150.00
V VISA INC COM CL A 8084.00

IRA Below
CASH 12,000.00
AMERICAN FUNDAMENTAL INVESTORS CL F1 $10984.38
AMAZON.COM INC $11787.93
DOUBLELINE LOW DURATION CL N BOND FUND $5010.38
FIDELITY SMALL CAP GROWTH $5457.63
FIDELITY EMERGING ASIA FUND $3892.78
FIDELITY SELECT MED TECHNOLOGY & DEVICES $3476.73
GRAINGER W W INC COM STK USD0.50 $6606.39
MONDELEZ INTL INC COM $3222.18
MERCK & CO INC NEW COM $3629.64
PRIMECAP ODYSSEY STO CK FUND $5041.09
T ROWE PRICE BLUE CHIP GROWTH INC $5254.08
VANGUARD EQUITY INCOME INVESTOR CL $4664.34
V F CORP $6024.2

Nedsaid: Don't despair, most of the investments you own are good stuff. For example, the fund groups American, Fidelity, and T Rowe Price are all very good. The stocks you own are mostly stocks I wouldn't mind owning. It isn't that you have screwed things up but that you can have a simpler and easier to manage portfolio without sacrificing returns. Having individual stocks greatly complicates managing a portfolio. Of course, when you sell in a taxable account, you have to take into account any taxes on capital gains. In an IRA or 401(k), capital gains taxes are not an issue.

Thank you so much for being here and encouraging everyone to not hire an advisor. I have had a bad sense all these years.

Nedsaid: At your age, you should be looking at about a 65% stock/35% bond portfolio. Look at the asset mixes for 2025 funds from Vanguard, Fidelity, and T Rowe Price and this should give you an idea of an age appropriate asset allocation. I recommend putting anywhere between 20% and 50% of your stocks in International, for bonds an International allocation is optional. Not rocket science here. Asset allocation is the biggest factor in your investment success.
A fool and his money are good for business.

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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by anniegrace » Mon Jun 11, 2018 10:50 pm

This is a great site that you provided: http://www.401411.com/att. ladygeek what do you mean by OP?

Thanks nedsaid on your comments.

Are target funds really a good idea which is what Fidelity Freedom Funds are (I will look at the index freedom funds as indicated). Are they really better than trying to piece together 3 or 4 funds? I'm seeing 2025 target funds with a 1% yield YTD or at least less than 2%. Is it that they are safer? So you sacrifice big gains and yet at the same time don't experience big losses? Is it like the tortoise and the hair? Target funds just slug along. And people like being entirely passive letting it all be managed sort of like a portfolio adviser would do but with less cost?

ok, I think I am convinced to do 35-40% bonds. Here I am hesitating on being conservative. My possibly distorted view is that I think bonds are less secure so if I move from equities to bonds, it feels as though I am taking more risk whereas the point is that you increase bonds to take less risk.

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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by FiveK » Mon Jun 11, 2018 11:09 pm

anniegrace wrote:
Mon Jun 11, 2018 10:50 pm
what do you mean by OP?
Original Post or Original Poster. See Abbreviations and Acronyms - Bogleheads.
Are target funds really a good idea which is what Fidelity Freedom Funds are (I will look at the index freedom funds as indicated). Are they really better than trying to piece together 3 or 4 funds? I'm seeing 2025 target funds with a 1% yield YTD or at least less than 2%. Is it that they are safer? So you sacrifice big gains and yet at the same time don't experience big losses? Is it like the tortoise and the hair? Target funds just slug along. And people like being entirely passive letting it all be managed sort of like a portfolio adviser would do but with less cost?
Better is subjective, but they are good. One pays a little compared with buying the underlying funds directly (less than ~0.1% if one picks the right fund) for the privilege of having someone else handle rebalancing and allocation changes over time. Don't pay much attention to the year associated with the target date funds. Instead, decide first what current and future asset allocation you want, and pick the fund that best matches your decision.
ok, I think I am convinced to do 35-40% bonds. Here I am hesitating on being conservative. My possibly distorted view is that I think bonds are less secure so if I move from equities to bonds, it feels as though I am taking more risk whereas the point is that you increase bonds to take less risk.
An individual bond, much like an individual stock, may be risky. Is that your concern, or something else? A bond fund, much like a large index fund, is much less risky

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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by MrPotatoHead » Tue Jun 12, 2018 2:33 am

I think at present the picture is incomplete. First of all, I would not panic, there really is nothing amiss you just got a bit mutual fund and stock crazy.

I think in your taxable individual account you need to list the ERs for each fund as well as your cost basis and evaluate how any losses might offset gains for tax purposes, and then focus on the ERs. That info may guide you to a liquidation strategy. You also need the cost basis on the stocks. I would tempted to simply hold Berkshire and MCD. MCD, like Berkshire is a breed apart. MCD is not really in the burger business, it is more a real estate empire with captive tenants and owns some of the most valuable properties in the country. You could do far worse in the long term than either of them. Berkshire is especially attractive in taxable - up to you.

Since you are at Fido I would then look at the commission free ishares with their low expense ratios and for tax efficiency.

https://www.fidelity.com/etfs/ishares

ITOT or IVV are the winners here with .03% ERs total stock market and S&P500 respectively). there are also low cost commission free ishare international and fixed income products, but I would think that through a bit in taxable in regard to your objective. My taxable is in ITOT and brokered CDs that serve as my emergency account and my 10 year expense buckets.

IN regard to your IRA, since there are no tax consequences I would debate if I wanted to sell Amazon and Merck, but other than that I would sell everything and consolidate in one of two ways:

01) choose the Fidelity Four in one fund with a .11% ER ( this is one stop shopping at a decent price compared to freedom funds)

02) Go with the FIDO commission free ishares:
ITOT (.03%) ER
IXUS (.10%) ER
and the ishares fixed income component that meets your comfort needs

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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by retiredjg » Tue Jun 12, 2018 5:11 am

anniegrace wrote:
Mon Jun 11, 2018 7:47 pm
I did not know target funds invest in mutual funds so in knowing this, it becomes an ER upon ER. ER for the target fund + ER for the mutual funds they buy.
I believe you are mistaken about "ER upon ER", at least at Fidelity. The ER of .15% for the Target Funds is the ER.

Here is what I will do per Jack FFR1846 and vineviz. I feel more comfortable with this and a 70/30 or 75/25 ratio.

US Stock: FSTVX 42%
Total US bond: FSITX - 25% or 30%
International equity: FSIVX - 28%
+ invest in 1/3rd of the 30% of bonds in Vanguard Total International Bond Index Fund Admiral Shares VTABX if possible or find a Fidelity equivalent.
This is a fine idea for your IRA although I don't believe Fidelity offers anything similar to Vanguard's International Bond Index.

It may or may not be a fine idea for your taxable account - depends on your tax bracket which I think we still don't know.

However, you may still need to address what is in your largest account - 401k.

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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by retiredjg » Tue Jun 12, 2018 5:13 am

anniegrace wrote:
Mon Jun 11, 2018 8:00 pm
We know what 2008/2009 was like. The 401k is also 3% bonds and the rest equity funds so I will change it to be more safe as well.
Yes. It is time to start thinking of preserving this account. It too needs to have a larger allocation to bonds or some other type of fixed income asset.

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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by retiredjg » Tue Jun 12, 2018 5:23 am

anniegrace wrote:
Mon Jun 11, 2018 10:50 pm
ok, I think I am convinced to do 35-40% bonds. Here I am hesitating on being conservative. My possibly distorted view is that I think bonds are less secure so if I move from equities to bonds, it feels as though I am taking more risk whereas the point is that you increase bonds to take less risk.
Yes, you do have a distorted view of bond funds. Many people do - it's just fear of the unknown.

As you mentioned earlier, you already know what happened in 2008/2009. You have seen how a portfolio can disappear when the market goes through gyrations.

The solution to that is adding more bonds or other fixed income assets (CDs, stable value fund). Your portfolio will still drop in value, but not as much.

Do you see or know of some solution other than bonds or some fixed income assets?

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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by delamer » Tue Jun 12, 2018 1:07 pm

Before you make any final decisions on your allocation, familiarize yourself with these charts:

https://personal.vanguard.com/us/insigh ... llocations

More stocks in a portfolio mean higher returns, higher risks, and higher volatility. People tend to overestimate their risk and volatility tolerance, especially if they have never held stocks during a correction or bear market.

Finally, if you are going to hold stocks don’t look at yesterday’s return or last week’s return or last month’s return or last year’s return. The long run is the only thing that matters. If you aren’t holding stocks for the long run then you shouldn’t be investing in them.

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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by nedsaid » Tue Jun 12, 2018 2:05 pm

anniegrace wrote:
Mon Jun 11, 2018 10:50 pm
This is a great site that you provided: http://www.401411.com/att. ladygeek what do you mean by OP?

Nedsaid: OP is Original Poster or the person who started the thread.

Thanks nedsaid on your comments.

Are target funds really a good idea which is what Fidelity Freedom Funds are (I will look at the index freedom funds as indicated). Are they really better than trying to piece together 3 or 4 funds? I'm seeing 2025 target funds with a 1% yield YTD or at least less than 2%. Is it that they are safer? So you sacrifice big gains and yet at the same time don't experience big losses? Is it like the tortoise and the hair? Target funds just slug along. And people like being entirely passive letting it all be managed sort of like a portfolio adviser would do but with less cost?

Nedsaid: Target funds do have their flaws but they are far better than what most investors can do on their own. As I see it, there are three relatively easy alternatives. First, you can just pick a Target Date Fund that will get more conservative as you get older. Second, you can elect to keep your risk level constant over time and pick something like a 60/40 balanced fund or a Moderate Risk Fund. Vanguard has both. Third, you can use a Target Date or a Target Risk fund as a model portfolio and just "bake your own" portfolio with your choice of funds. For example, if you liked LifeStrategy Moderate but didn't want International Bonds, you could just have more US Bonds in their place and go with three funds rather than four.

The advantage of a Target Date Fund or a Target Risk (like Vanguard LifeStrategy funds) is that the rebalancing is done for you and you get professional management. You get the best thinking of the mutual fund company at a relatively low cost. A lot of folks pay a portfolio manager 1% a year for pretty much doing the same thing, the Target Date or Target Risk fund does it for a fraction of the cost.

One criticism of Target Funds is that they fell more than what people expected during the 2008-2009 bear market. Diversification cushions losses but does not eliminate them altogether. A portfolio with 65% stocks will still experience big losses when the stock market drops by 50%. I would not get too hung up on yield, but in general a higher dividend yield should indicate a more conservative portfolio. One reason is that a more conservative portfolio will hold more bonds.


ok, I think I am convinced to do 35-40% bonds. Here I am hesitating on being conservative. My possibly distorted view is that I think bonds are less secure so if I move from equities to bonds, it feels as though I am taking more risk whereas the point is that you increase bonds to take less risk.

Nedsaid: I am almost 59 years of age and I still have 2/3 of my portfolio in stocks. One reason for me having a fairly aggressive portfolio at my age is that interest rates are still pretty low. A 3% return on bonds in not exiting to me. If bonds were yielding 6%, I would have a higher percentage in bonds than I do now. But that is just me, my personal choice. But I can see your reluctance to buy a lot of bonds here.
A fool and his money are good for business.

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Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Post by anniegrace » Tue Jun 12, 2018 4:19 pm

Nedsaid: Target funds do have their flaws but they are far better than what most investors can do on their own. As I see it, there are three relatively easy alternatives. First, you can just pick a Target Date Fund that will get more conservative as you get older. Second, you can elect to keep your risk level constant over time and pick something like a 60/40 balanced fund or a Moderate Risk Fund. Vanguard has both. Third, you can use a Target Date or a Target Risk fund as a model portfolio and just "bake your own" portfolio with your choice of funds. For example, if you liked LifeStrategy Moderate but didn't want International Bonds, you could just have more US Bonds in their place and go with three funds rather than four.[/code][/code]

Anniegrace - I called Fidelity and they confirmed that there are not expense ratios charged by each fund that the target fund invests in. If you click on each fund they invest in, there is an ER but it is not applied - only the ER of Target. I understand exactly what has been said. I can choose fund based on risk tolerance and not necessarily by retirement date or I can bake my own by mirroring the target fund and rebalance myself which is unnecessary otherwise. I can also start slow in a target fund and change to another target fund at later date if my risk tolerance changes.

Nedsaid- One criticism of Target Funds is that they fell more than what people expected during the 2008-2009 bear market.

Anniegrace- did they fall significently less though? I appreciate you understanding my bond issue. I know interest rates make a difference but the whole concept of them alludes me. I hear treasury bonds are better than corporate. Being in 1/3 bonds is better and I am looking now at switching that. At work on not a lot of time before market close

Delmar - Finally, if you are going to hold stocks don’t look at yesterday’s return or last week’s return or last month’s return or last year’s return. The long run is the only thing that matters. If you aren’t holding stocks for the long run then you shouldn’t be investing in them.

Anniegrace I agree and prefer to go back to 2008/2009 if I can. Thank you

Anniegrace to mrpotatoehead - thank you. I will watch for Capital gains, my funds were originally chosen based on ER plus a. Ultitude of other factors. I did sum all ER’s as well to see the overall cost but didn’t do as well as you bogleheads out there. I will keep AMZ, MCD, Berkshire, and FDX, I think.

I have great information to go on and have already started selling and reallocating to get to a nice manageable distribution or possibly even only 1 target fund.

Thanks to everyone

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