Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 11-25-2013, 08:27 PM   #21
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,438
Quote:
Originally Posted by RunningBum View Post
That's usually reserved for trivial complaints, and the OP wasn't complaining about anything, just asking for advice, so that comment seems pretty unwarranted. And pretty much anything on this forum is a first world problem, isn't it?
Calmloki was just joking, as he himself has too much cash that he does not know what to do with.

I also have some stinkin' cash that earns barely enough to keep up with inflation if even that, so have been thinking about getting back into bonds. EM sovereign bonds, anyone? I thought I read somewhere that EM country governments have lower debt loads than developed countries, hence the default risk is not as high as people would fear.
__________________

__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-26-2013, 06:45 PM   #22
Recycles dryer sheets
galeno's Avatar
 
Join Date: Nov 2002
Location: Alajuela, Costa Rica
Posts: 220
From Jan 2006-Oct 2012 30% of port was in intermediate bonds. We sold them and put the proceeds into 5% div stocks and 25% laddered CDs.

Our div stocks have gained over 30%. So it was a good move. We are slowly moving back into intermediate bonds and will complete the transition over the next 4 years.

Quote:
Originally Posted by NW-Bound View Post
I also have some stinkin' cash that earns barely enough to keep up with inflation if even that, so have been thinking about getting back into bonds. EM sovereign bonds, anyone? I thought I read somewhere that EM country governments have lower debt loads than developed countries, hence the default risk is not as high as people would fear.
__________________

__________________
AA = 60/35/5. Expected CAGR = 5.7%. GSD (5y) = 7.8%. USD inflation (10 y) = 1.8%. AWR = 3.0%. TER = 0.5%. Net Port Yield = 1.7%. Term = 36 yr. FI Duration = 4.9 yr. Portfolio survival probability = 86%.
galeno is offline   Reply With Quote
Old 11-29-2013, 10:34 AM   #23
Recycles dryer sheets
 
Join Date: Aug 2013
Posts: 270
Thanks for all of the feedback. The 401K to IRA transfer date was on Nov 19th so I have not been siting on the 401K cash that long. Here is what I'm considering based on the feedback. Any additional feedback is welcomes ...

1) For the Fidelity IRA account I will put 50% of the cash balance to work right away into stocks/bonds funds and then DCA the remaining 50%. I will double down on a 3-5% dips in S&P/DOW.

2) For the Schwab account I will DCA all the cash into stock funds (no bonds in taxable account). I will double down on a 3-5% dips in S&P/DOW.

3) Since the short term future yields on Bonds is "fuzzy" I think I'll keep my Bond/Cash AA to 10% Bonds (intermediate?) and 25% cash for now. I will move more cash into bonds (intermediate and/or short) later in 2014/2015 if it make sense to do so at that time.

More questions for you all:
1) Should I DCA over 12 or 18 months?
2) Does the doubling down on 3-5% dips make sense?
2) Any feedback on the Fidelity Index funds below and % exposure I should have:
FUSVX U.S. Large CAP
FSEVX U.S. Mid CAP
FSSVX U.S Small CAP
FSIVX International large CAP
FPMAX Emerging markets.
3) Any feedback on the Schwab ETF funds below and % exposure I should have:
SCHX U.S Large CAP
SCHM U.S Mid CAP
SCHA U.S Small CAP
SCHF International large CAP
SCHE Emerging markets.
4) Bond funds are very confusing to me and I'm still educating myself. Sounds like Intermediate Bond funds is the way to go right now and then possible move into short term Bond funds in 2014 pending how interest rate go. Sounds like I should stay away from long term bond funds? Any guidance on Bond fund types and/or specific funds would be much appreciated.

My goal is to be at my desired AA (65% stock, 20% bonds and 15% cash) after I finish my DCA timeline ends.

Thanks again for all the feedback...
__________________
bradaz2488 is offline   Reply With Quote
Old 11-29-2013, 01:31 PM   #24
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 2,933
It's not clear to me if you were at your target AA just before the rollover, but if you were and since the rollover is so recent, it looks to me that the S&P500 is only up 1.5% or so since then so you could just go to your target AA if you wanted.
__________________

__________________
kaneohe is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 12:22 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.