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In the new Vanguard iPhone app, how do you just buy $1000 of a fund with money transferred from a bank account? This is the only thing I do and I can’t figure out how to do it one step. It looks like now it wants you to do the funds transfer into your settlement account separately from buying the fund. Not a big deal and you don’t have to wait in between but seems dumb.
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Nov 6, 2021 14:25
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Paul MaudDib posted:is there a recommended algorithm for when to rebalance your investments? I get the whole "have a strategy, don't do it just cuz you think the market's high or whatever", but I haven't rebalanced since I last posted in 2019 and my 87/13 ongoing investment strategy has become 91/9 actual mix due to the tear stocks are on. I think the general answer is "have one" (as opposed to timing the market by leaving it to your whim). If you keep it simple (e.g. annually on the same date each year), it doesn't much matter what frequency you pick (monthly/quarterly/annually/every two years) as they all win over different timeframes. You can also go by threshold, e.g. "if both asset types are 5% or more off their target, rebalance". This tends to be more work and doesn't always provide superior results. As mentioned, using inflows to lazily rebalance can be very convenient. Here’s a handy calculator and explanation. If you really wanna get into the weeds, you can rig up a spreadsheet to tell you when you are far enough out of balance to profitably rebalance, like this person did. Dollar cost averaging works the same as always: you're best off with a strategy you'll stick to, and if that still gives you options then you're usually better off doing it once as a lump sum. Finally, if you find yourself comfortable with the out-of-balance allocation you're at now, that might be a sign that you could change your target allocation. I would make a mental note and not make any rash decisions there, but then again it takes me six months to buy new headphones when my old ones are uncomfortable, so maybe I'm the weirdo.
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Nov 6, 2021 15:14
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smackfu posted:In the new Vanguard iPhone app, how do you just buy $1000 of a fund with money transferred from a bank account? This is the only thing I do and I can’t figure out how to do it one step. I’ve always transferred money into my settlement account before buying. Although, I think once you have enough in your account or you’ve been buying enough, it doesn’t seem like you need to do that anymore? I could be wrong, but the last time I dropped some money into a fund, it was instantaneous.
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Nov 6, 2021 18:56
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People on the Bogleheads forum are also saying the updated Vanguard app sucks and that it doesn't let you directly buy funds anymore. It only lets you pull money from your bank into the settlement fund first.
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Nov 6, 2021 19:02
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GEMorris posted:Since you are the expert, how about providing some useful feedback on this plan then? You seem to want to be aggressively unhelpful. the number one problem with your investment strategy is between your ears but here you go: 1) you have zero international exposure. lots of debate on this but imo you should have at least some international exposure provided you can get it cheaply. yes US equities have historically outperformed but I'm not sure you want to make that bet over the next 30-60 years. 2) an emergency fund is for emergencies, I know it's hot/cool/whatever to protect principle through IBonds but my general opinion is that you should be holding cash in a FDIC insured bank account for emergencies. The I-Bonds can be part of your bond allocation so you can get rid of some BND. 3) you are very heavily weighted to small/midcap with that Russel 1000 tracker. Something like VTSAX will better weight you across the broad stock market. you should honestly target date set and forget, you're far less likely to self sabotage that than you are a three fund portfolio. the expense ratios are higher but still quite low. vanguard ERs on target date funds are like 15bps if you have them available to you.
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Nov 6, 2021 19:57
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KYOON GRIFFEY JR posted:Stuff Thanks, this was helpful.
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Nov 6, 2021 20:14
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KYOON GRIFFEY JR posted:vanguard ERs on target date funds are like 15bps if you have them available to you. Vanguard did a press release and said they're consolidating the institutional and investor target date funds in February and the combined funds will average 8bps instead of 15bps. That's a win for IRA holders.
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Nov 6, 2021 20:41
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If you don't trust yourself, then setting up automatic contributions to target date funds and never looking at it is probably the safest thing to do.
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Nov 6, 2021 20:46
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I know "Rich Dad, Poor Dad" has fallen out of favor as suggested reading by now, and that's good. Let's make sure to keep it that way. https://finance.yahoo.com/news/robert-kiyosaki-just-warned-giant-130000215.html quote:In September, he told Kitco News that “the biggest crash in world history” would hit in October. While that prediction didn’t even come close being right — the S&P 500 climbed 6.9% last month — Kiyosaki isn’t backing down from his ultra-bearish stance.
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Nov 7, 2021 00:24
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KYOON GRIFFEY JR posted:the number one problem with your investment strategy is between your ears but here you go: Not OP but I am a 31yo in an 87/13 strategy. What would be the recommended mix with international?
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Nov 7, 2021 00:52
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10-30%
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Nov 7, 2021 00:59
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This may have been missed during the earlier discussion but if anyone has any feedback on my mix I'd love to hear it  Sorry for the bump! Thank you! Bearinabox posted:So, I have about AUD 70,000 to put in an investment portfolio (after a 12 month emergency fund and my superannuation (retirement) contributions are taken care of). This is a long-term portfolio, I have no real need for the money in the foreseeable future but I also don't want to pursue risky gains.
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Nov 7, 2021 01:11
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Nobody here knows how anything in Australia works. Don't you guys pay like $300 for Call of Duty and internet speed from 1994.
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Nov 7, 2021 01:45
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This is absolute perfection.
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Nov 7, 2021 05:21
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Make that the new thread title.
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Nov 7, 2021 05:51
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Paul MaudDib posted:Not OP but I am a 31yo in an 87/13 strategy. What would be the recommended mix with international? There are reasonable arguments for anywhere from 0% to about 50% international (as a portion of your equity allocation) for a US investor. Here's an argument on the lower side - https://earlyretirementnow.com/2017/08/23/how-useful-is-international-diversification/ The argument on the higher side is basically just "cap-weighting." Bogleheads bicker about this and 20% seems to be a fairly common number.
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Nov 7, 2021 07:35
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Is putting any spare cash I get into SPY and just setting it to reinvest dividends and not thinking about it anymore a decent plan? I'm finally debt free and I'm self-employed so I don't get any fancy employer matched 401k contributions or anything, so this seems like a better approach from what I'm reading so far. I was originally looking at just sticking it in an index fund pegged to the S&P 500, but I don't really have the spare cash yet to meet the minimum deposit for the popular / low fee index funds, and it seems like an ETF performs pretty much identically over the long term but allows me to buy in with considerably less money. I've got an emergency fund already (though I'm going to beef that up a bit too) and the plan is to just invest what I can spare and not worry about it for a couple decades, but I've never been in a position to do anything except live paycheck to paycheck before and I don't know if I'm being dumb / missing anything obvious.
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Nov 7, 2021 07:50
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Grizzled Patriarch posted:Is putting any spare cash I get into SPY and just setting it to reinvest dividends and not thinking about it anymore a decent plan? I'm finally debt free and I'm self-employed so I don't get any fancy employer matched 401k contributions or anything, so this seems like a better approach from what I'm reading so far. I was originally looking at just sticking it in an index fund pegged to the S&P 500, but I don't really have the spare cash yet to meet the minimum deposit for the popular / low fee index funds, and it seems like an ETF performs pretty much identically over the long term but allows me to buy in with considerably less money. There are multiple options for tax advantaged accounts. I think the most common is a SEP IRA, but the other two I know are a Solo 401k and a Defined Benefit Plan. It's generally highly advantageous to have tax advantaged accounts even without an employer match so I'd look into that and see what works best for your situation.
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Nov 7, 2021 09:09
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KYOON GRIFFEY JR posted:2) an emergency fund is for emergencies, I know it's hot/cool/whatever to protect principle through IBonds but my general opinion is that you should be holding cash in a FDIC insured bank account for emergencies. The I-Bonds can be part of your bond allocation so you can get rid of some BND. Is it wrong to think of I bonds as a highly liquid asset that can be part of your e-fund? After one year. It seems like a 50/50 mix of cash and ibonds can make sense. Cash to access on a short term basis, ibonds you can liquidate as needed.
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Nov 7, 2021 18:45
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I would like to express my gratitude to this thread for teaching me about I bonds over the past couple months. Thank you kindly.
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Nov 7, 2021 19:15
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CubicalSucrose posted:There are reasonable arguments for anywhere from 0% to about 50% international (as a portion of your equity allocation) for a US investor. Putting some investments in pure foreign markets or companies should help reduce correlations of one's portfolio components, though one would have to first check the correlations of the foreign investment against particular US indexes one already has exposure to. nnnotime fucked around with this message at 19:40 on Nov 7, 2021 |
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Nov 7, 2021 19:35
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I do international indexes because I want money from companies like Samsung, Toyota, Tencent, Nestle, Unilever and a thousand other companies missing from VTSAX.
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Nov 7, 2021 19:50
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I do 75% S&P and 25% international because it's easy and I don't give a poo poo
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Nov 8, 2021 00:01
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hobbez posted:Is it wrong to think of I bonds as a highly liquid asset that can be part of your e-fund? After one year. It seems like a 50/50 mix of cash and ibonds can make sense. Cash to access on a short term basis, ibonds you can liquidate as needed. I'm at a 90% Ibond/10% cash split for my efund at this point, with the 10% being less for actual emergencies and more for just having a monthly budget buffer.
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Nov 8, 2021 14:44
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I can't think of many situations which would require immediate access to thousands of dollars in cash. A business day or two to redeem some I bonds and ACH them to your checking account seems like reasonable access for when you need to dip into your emergency fund.
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Nov 8, 2021 14:50
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SamDabbers posted:I can't think of many situations which would require immediate access to thousands of dollars in cash. me neither but they all suck real loving bad so I keep thousands of dollars in cash
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Nov 8, 2021 16:15
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please knock Mom! posted:me neither but they all suck real loving bad so I keep thousands of dollars in cash I can't think of any where credit cards couldn't fill the gap personally, outside of like "family member kidnapped" type poo poo that isn't realistic. If I could I probably would keep more cash.
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Nov 8, 2021 19:46
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College fund options for babies? Preferably something that keeps up with inflation and is tax advantaged
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Nov 9, 2021 05:22
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Hadlock posted:College fund options for babies? Preferably something that keeps up with inflation and is tax advantaged
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Nov 9, 2021 05:43
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TLDR: Is there a shorter/better value-based lazy investing book than the intelligent investor? The OP of the thread is from 2008 so I thought there might be newer suggestions. Context: My wife and I have maxed our 401(k) contribs and have a 3.5% interest rate on our home. A decade ago I read most of the intelligent investor but now I barely remember any of it and I dont wanna try to make it through 600 dry pages again. Just now I was trying to remember what the "less-taxable-event mutual fund" was. (This is what my brain calls ETFs) Is there a book I can listen to on audible to get me up to speed on set-and-forget portfolios that I only update 1-2 times per year? We've got a money manager that came recommended by others and whose credentials check out but I'd like to make a "counter portfolio" to see if the fees and what not are worth it and also to more easily move our excess cash from a bank account into something more worthwhile.
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Nov 9, 2021 20:37
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CarForumPoster posted:TLDR: Is there a shorter/better value-based lazy investing book than the intelligent investor? The OP of the thread is from 2008 so I thought there might be newer suggestions. By "money manager" you mean salesperson. The fees won't be worth it. Look at any target date retirement fund makeup for allocation ideas, and/or read about the Bogleheads 3 fund portfolio. Target date funds are even less work than 1-2 times per year.
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Nov 9, 2021 23:29
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Any updates in the last 6 months? I took a bit of a forum hiatus.
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Nov 9, 2021 23:34
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crazypeltast52 posted:Any updates in the last 6 months? I took a bit of a forum hiatus. We figured out the key to successfully timing the market but had to remove it from the thread. Sucks you missed it.
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Nov 9, 2021 23:45
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spwrozek posted:We figured out the key to successfully timing the market but had to remove it from the thread. Sucks you missed it. I’ll troll pchem on discord for it if that was the case.
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Nov 10, 2021 00:32
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CarForumPoster posted:TLDR: Is there a shorter/better value-based lazy investing book than the intelligent investor? The OP of the thread is from 2008 so I thought there might be newer suggestions.
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Nov 10, 2021 00:38
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CubicalSucrose posted:By "money manager" you mean salesperson. The fees won't be worth it. Thanks! This was my suspicion. Re: Fund picking. Its been a while but back when I was at big defense co #1, the Lifepath target date funds always seemed to return significantly less than the 2 mutual funds (IIRC 1 stocks focused 1 bonds focused) I picked by going on morning star/TD and looking up each asking: "which made money consistently for the past 5 years and has reasonable fees?". That's done well and continues to do well in the 401K compared to my Lifepath which is targeted to 2040 and had had 5+ years to get its poo poo together. Any thoughts there? I'm willing to do a little bit of management. moana posted:The Investment Answer is the shortest good investing book I know of, it's basically the bogleheads wiki greatest hits. Sounds great! This one? CarForumPoster fucked around with this message at 00:53 on Nov 10, 2021 |
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Nov 10, 2021 00:47
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CarForumPoster posted:Thanks! This was my suspicion. Which bucket(s) of accounts are you investing in? If you have something like a 401k (sounds like you do) and you list all the fund options and expense ratios the thread can point out the best ones. If IRA(s) and/or taxable brokerage accounts, if you say where you have the accounts (Vanguard, Fidelity, Schwab, or... others, I guess) the thread can point out the appropriate low-expense ETF ticker symbols for those places for target date, broad equity, and broad bond funds. If you have significant holdings already in a taxable account, there could be tax consequences to switching, but it sounds like that might not be an issue and if it is it's an issue that can be addressed but we'd need a lot more info.
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Nov 10, 2021 03:39
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CarForumPoster posted:Sounds great! This one?
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Nov 10, 2021 05:10
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I read the op and scan this thread every few days and my brain melts every time. I took some advice a few pages ago and made initial contact with a fee-only financial advisor (something I didn't know about before today). I'm a public employee who is not yet vested in my state-funded pension. I've got an education session set up with the group who manages that thing to try and understand exactly how it works but it would seem I can't make any more contributions to it. I believe my next step is to start a ROTH IRA fund (or traditional IRA? Idk) through something like vanguard or fidelity. I want a set-it and forget-it strategy that is relatively risk-averse and gives me few opportunities to gently caress it up. Can anyone do some hand-holding with me? I'm married, we live off of one income and put the others directly into savings. We have almost 12 months of our total income in savings right now. No debt. It seems like it is ideal to take a chunk of that savings and create an investment fund and continue to split our money (1/2 to our current living, 1/4 to savings, 1/4 to retirement investment). Again, I keep reading all of the resources online and checking this thread but I still feel like I'm treading water.  Plz halp
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Nov 10, 2021 09:27
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I think a lot of people struggle because they don't have real goals. Money's just a tool, maaaan so in order to figure out how to manage it you need to figure out what you intend to do. For instance, in my case I made a couple decisions with my wife: 1) i want to buy a house at some point in the next 3-4 years. In my market that means coughing up roughly $200-300K down to avoid PMI and all that stuff. So I have a plan to save that amount of money within the next three years. the result of this decision is that a fair chunk of the monthly income gets diverted to a high yield savings account so that we have cash on hand when we want to buy. 2) we are gonna have kids and those fuckers are expensive, especially to educate, so we are putting money away towards the education of future children. we decided on a UGMA account because the restrictions on 529 plans will unnecessarily inhibit how the kids can use the money. they don't exist yet so we are going max flexibility for now; a 529 plan is always an option too. there is not much money being put to this because priority #1 takes precedence in time. 3) we figured out how much money we probably need to retire comfortably over a ~35 year time horizon and are trying to save this amount of money as much as possible Sequence of events is 1) what are my goals? and then 2) for each of my goals, what options are available to me to meet those goals? Framing this way makes the research a lot easier than "what do I do with my money?" because there are a billion answers to that latter question. Extremely simply: If you are married filing jointly, and you make a combined income under $204,000 year, both you and your spouse can contribute up to $6,000 annually (each) to (separate) Roth IRAs. You should do this, unless you are highly confident you are completely on track for retirement or you have other goals. To open a Roth IRA go to your financial provider of choice (vanguard is kind of a default) and open an account. Transfer money in. Invest that money in a target retirement date fund. Do the same thing for your spouse as they are individual retirement accounts.
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Nov 10, 2021 13:07
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