Need Help/advice with Financial Adviser Questions

[PeteW]

At the risk of confusing the issue, do you have any idea what you'd like to do with your assets? Do you want to hold individual stocks, mutual funds (passive or active), ETFs? Do you have a sense of what kind of asset allocation you'd be comfortable with? IOW, your risk tolerance? You're safe with Vanguard or Fidelity, but they are not one in the same, they have slightly different strengths/characteristics based on my experience with both. A few days or weeks isn't going to make much difference, it might serve you well to do a little research/reading.

We've given a few suggestions for books, here's another online source Bogleheads FWIW...

Not confusing in the least. I intend to pursue the suggested reading and to look into my options as I become more informed including looking at Vangard, Fidelity, etc. I agree that a few more weeks won't make a critical difference. I consider all of the suggestions I've received invaluable, And I intend to at least explore them.

For years I've been used to a portfolio largely comprised of stocks and ETFs so changing to MFs may not be the direction I ultimately chose to go, but I get a sense of the benefits that the right MFs represent.

Mostly I want to know that I'm seeing a reasonable return based on the condition of the market at any given time without having to constantly check on my holdings. We like to wilderness camp and that does not lend itself well to cell phones and internet.

All that said, I realize I need to understand all of this in order to make the most informed decision so I guess I better start with the reading.

I'll still have questions to be sure, but at least now I know where I can get some good help.

Thanks,
Pete

 

[pb4uski]

.....We have some rental property, and we partially financed the sale of our business which provides us monthly payments, so, we have income that allows us to leave our portfolio alone at this point.

Really all the more reason to get it into a much less expensive form of maintenance. .....

.....Mostly I want to know that I'm seeing a reasonable return based on the condition of the market at any given time without having to constantly check on my holdings. We like to wilderness camp and that does not lend itself well to cell phones and internet.......

MFs and ETFs are pretty similar - in fact many of Vanguard's most popular index funds have mutual fund and ETF versions that are substantively the same for long term investors.

If you're really interested in low maintenance.......
psst.....Wellesley

(or Wellington or Star, depending on your risk appetite).

[Inside joke - hand around here long enough and you'll understand].

 

[urn2bfree]

Check out Rick Ferri and his Portfolio Solutions or Evanson Asset Management

 

[Midpack]

Not confusing in the least. I intend to pursue the suggested reading and to look into my options as I become more informed including looking at Vangard, Fidelity, etc. I agree that a few more weeks won't make a critical difference. I consider all of the suggestions I've received invaluable, And I intend to at least explore them.

For years I've been used to a portfolio largely comprised of stocks and ETFs so changing to MFs may not be the direction I ultimately chose to go, but I get a sense of the benefits that the right MFs represent.

Mostly I want to know that I'm seeing a reasonable return based on the condition of the market at any given time without having to constantly check on my holdings. We like to wilderness camp and that does not lend itself well to cell phones and internet.

All that said, I realize I need to understand all of this in order to make the most informed decision so I guess I better start with the reading.

I'll still have questions to be sure, but at least now I know where I can get some good help.

Thanks,
Pete

Occurs to me this Lazy Portfolios - Bogleheads might be an excellent place to start also. Good optimization of risk vs return, very low expenses, and requiring very little knowledge/maintenance. Many of the members here have portfolios that resemble one of these.

I'd also recommend you consider staying entirely with mutual funds or ETFs. After reading your posts, I'm not sure you should be picking individual stocks. But don't take that wrong, individual stock picking takes more effort than funds and there's far more risk (upside and downside) - and Vanguard & Fidelity really aren't well equipped to advise you on individual stock picking. And many folks here no longer hold any individual stocks.

Best of luck Pete...

 

[target2019]

Lots of insight is found in Trev's Backtest S/S.

There is a Lazy Portfolios tab in the workbook. I am surprised at the spread of returns. The 3-fund approach had a terrible year in 2011.

 

[Midpack]

Lots of insight is found in Trev's Backtest S/S.

There is a Lazy Portfolios tab in the workbook. I am surprised at the spread of returns. The 3-fund approach had a terrible year in 2011.

And beat all others in some years.

 

[target2019]

And beat all others in some years.

The tab that compares the portfolios from 1985 onward does not show that. Maybe we are on different data sets?

 

[PeteW]

Occurs to me this Lazy Portfolios - Bogleheads might be an excellent place to start also. Good optimization of risk vs return, very low expenses, and requiring very little knowledge/maintenance. Many of the members here have portfolios that resemble one of these.

I'd also recommend you consider staying entirely with mutual funds or ETFs. After reading your posts, I'm not sure you should be picking individual stocks. But don't take that wrong, individual stock picking takes more effort than funds and there's far more risk (upside and downside) - and Vanguard & Fidelity really aren't well equipped to advise you on individual stock picking. And many folks here no longer hold any individual stocks.

Best of luck Pete...

Hahaha, I do not take it the wrong way. Sometimes you just gotta call em like you see em. BTW, I think you're right.

Pete

 

[Fodus]

Occurs to me this Lazy Portfolios - Bogleheads might be an excellent place to start also. Good optimization of risk vs return, very low expenses, and requiring very little knowledge/maintenance. Many of the members here have portfolios that resemble one of these.

I'd also recommend you consider staying entirely with mutual funds or ETFs. After reading your posts, I'm not sure you should be picking individual stocks. But don't take that wrong, individual stock picking takes more effort than funds and there's far more risk (upside and downside) - and Vanguard & Fidelity really aren't well equipped to advise you on individual stock picking. And many folks here no longer hold any individual stocks.

Best of luck Pete...

Hi, I am PeteW's wife and reading the posts, I was wondering what the consensus is on the Rational Investing plan which is covered in Bob Clyatt's book, "Work Less, Live More"? It seems very straightforward and an "easier, softer way" to me since it is all laid out for you. Is anyone following his program and if so, satisfied with the results?

 

[REWahoo]

I have no personal experience with it but Clyatt's Rational Investing portfolio has been discussed several times on the forum. You'll find many threads on the subject if you put Rational Investing in the Google search box up near the top of the page.

You might also search for Clyatt's posts on the forum. He posts here as ESRBob.

 

[travelover]

Hi, I am PeteW's wife and reading the posts, I was wondering what the consensus is on the Rational Investing plan which is covered in Bob Clyatt's book, "Work Less, Live More"? It seems very straightforward and an "easier, softer way" to me since it is all laid out for you. Is anyone following his program and if so, satisfied with the results?

Welcome to the forum. There is no such thing as consensus on this forum.

We may mostly all agree that driving makes more sense than walking for a 100 mile trip, but will argue for pages on the relative merits of pickup trucks, motorcycles, Japanese cars, recumbent bicycles, the merits of subsidizing electric cars ...etc etc.

Investing strategy is the same way - you really have to find good enough and call it a day.

 

[FinanceDude]

At the risk of confusing the issue, do you have any idea what you'd like to do with your assets? Do you want to hold individual stocks, mutual funds (passive or active), ETFs? Do you have a sense of what kind of asset allocation you'd be comfortable with? IOW, your risk tolerance? You're safe with Vanguard or Fidelity, but they are not one in the same, they have slightly different strengths/characteristics based on my experience with both. A few days or weeks isn't going to make much difference, it might serve you well to do a little research/reading.

We've given a few suggestions for books, here's another online source Bogleheads FWIW...

+1

 

[T-bird]

Welcome to the forum. There is no such thing as consensus on this forum.

We may mostly all agree that driving makes more sense than walking for a 100 mile trip, but will argue for pages on the relative merits of pickup trucks, motorcycles, Japanese cars, recumbent bicycles, the merits of subsidizing electric cars ...etc etc.

Investing strategy is the same way - you really have to find good enough and call it a day.

I really wish I had said that. Take your best educated shot at a risk level you are happy with allocation wise and go and live your life and have some fun.

T-bird
Class of 2013
DW Class of 2012 (May, a done deal)

 

[Midpack]

Hi, I am PeteW's wife and reading the posts, I was wondering what the consensus is on the Rational Investing plan which is covered in Bob Clyatt's book, "Work Less, Live More"? It seems very straightforward and an "easier, softer way" to me since it is all laid out for you. Is anyone following his program and if so, satisfied with the results?

I may get shot down, but I think the majority of members here subscribe to:

• establish an asset allocation, stock:bond:cash according to age & risk tolerance (there are all sorts of online references & quizzes). 50%:50% ± 20% might include a lot of the members here.
• hold few if any individual stocks or bonds, rather select a collection of low expense index mutual funds (Vanguard & Fidelity funds are popular). Typically 3 to 10 mutual funds, but could be more or less.
• rebalance periodically (annually at a minimum) to maintain target asset allocation. Don't chase returns/attempt to 'time the market.'

Clyatt's philosophy is (generally) consistent with the above, but there are many others (see Lazy Portfolio link in earlier post). His method also incorporates aspects of generating income from the nest egg. Why not look at several before deciding?

There are certainly some more sophisticated/capable/aggressive investors here, but I believe they're in the minority. That takes more effort and knowledge than most people can or want to put into it, especially in the general population at large.

It's worth educating yourself to some extent vs just finding a method and blindly deploying it. You'll sleep better at night if you understand why you own each holding, and how the market naturally flucuates.

 

[easysurfer]

I may get shot down, but I think the majority of members here subscribe to:

• establish an asset allocation, stock:bond:cash according to age & risk tolerance (there are all sorts of online references & quizzes). 50%:50% ± 20% might include a lot of the members here.
• hold few if any individual stocks or bonds, rather select a collection of low expense index mutual funds (Vanguard & Fidelity funds are popular). Typically 3 to 10 mutual funds, but could be more or less.
• rebalance periodically (annually at a minimum) to maintain target asset allocation. Don't chase returns/attempt to 'time the market.'

Clyatt's philosophy is (generally) consistent with the above, but there are many others (see Lazy Portfolio link in earlier post). His method also incorporates aspects of generating income from the nest egg. Why not look at several before deciding?

There are certainly some more sophisticated/capable/aggressive investors here, but I believe they're in the minority. That takes more effort and knowledge than most people can or want to put into it, especially in the general population at large.

It's worth educating yourself to some extent vs just finding a method and blindly deploying it. You'll sleep better at night if you understand why you own each holding, and how the market naturally flucuates.

+1. I bet if a poll was to survey the forum members, the majority of the folks here follow the three points mentioned.