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Comments On Proposed Investments
Old 05-31-2008, 09:23 AM   #1
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Comments On Proposed Investments

I asked this some time back and got a couple of good suggestions, particularly a foreign bond suggestion from Brewer, but it is now closer to the time I can make changes in my retirement fund accounts and also as the market has changed I want to check back in and get up to date. I have initiated a transfer of about 1/3 of my tax deferred funds from my TSP ( Fed Govt 401k type) fund to a Wells Fargo IRA/trading account. This could take at least a month to complete but I'm trying to get my plans developed for when it the funds arrive in the WFB IRA. The funds in the TSP were allocated 85% target retirement fund and 15% total international index. I generally like the TSP but am doing this transfer for two reasons; one is to diversify beyond the assets held in the target retirement fund and I need to have some funds in an actual IRA if I want to transfer funds into a Roth IRA in 2010. DW's IRA is in Wellesley.
Now other asset classes not included in the target retirement fund don't look so great right now; I am not sure I have the cajones to buy REITs, commodities and foreign bonds right now.

My plan is to buy the following EFTs/stocks:

VIG 4.5% VG Div Appreciation
VYM 4.5 VG High Div Index
VBR 4.5 VG Small Cap value
VPU 4.5 VG Utility
VTV 9.1 VG Value
VOE 9.1 VG Midcap Value
VEU 18 VG Intl
DLS 9.1 Small Cap Div Index
VWO 4.5 VG Emrg Mkts

BRKB 4.5
MMM 4.5
PEP 4.5
EMR 4.5
JNJ 4.5
ABT 4.5
IP 4.5

Any comments on stock/ETF selection. I expect to hold these for the long term, some will be liquidated in 2010 to transfer to my Roth IRA. Others will be liquidated when/if I need to bolster the pension. If my kids are lucky they will get some eventually if not withdrawn at RMD time. Oh, I did also think about adding BWX which would increase my foreign assets and maybe restore the bond/stock ratio disturbed by moving funds from the target retirement account.

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Old 05-31-2008, 10:48 AM   #2
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I am no expert in investing by any stretch of the imagination, but gee, that sure looks like a lot of different investments! 16 that you listed, and then whatever else you already have in other accounts. I am thinking that rebalancing would be awful with that portfolio. But then, I am not really a slice-and-dice'r right now.

Should be interesting to hear what others think.

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Old 05-31-2008, 11:21 AM   #3
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I am with Want2Retire, that seems like a lot of investments, for what is a portion of your retirement income. Since this 1/3 of your retirement nest egg, it looks like you have 7 mostly blue chip stocks with 1.5% each or 10.5% in mad money trading account. I think this is fine.

The remaining 20+% is spread among 9 index funds, which have some duplication among themselves and lots of duplication with TSP holdings. For example VEU is pretty much a superset of VWO holdings. If you have some conviction that some sectors are going outperformed stick somewhere between 1/3 to all of your money in it. Other than putting 20% of your money in VWO, I doubt any proposed allocation is going to effect your returns by more than 1%. We are after all talking about buying between 100 and 5000 individual issues for any of the ETFs. I think you are slice to thin.
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Old 05-31-2008, 01:20 PM   #4
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I use four websites to begin my research. For example: for Vanguard's Emerging Market ETF (VWO):


Vanguard Emerging Markets ETF (VWO) MUTUAL FUND RESEARCH

54 out of 100 with a -12% Outlook Low ER - 0.30%

Index Universe

Data - IndexUniverse - News, data and research on ETFs, Indexes, and Index Funds

Since enception - up 26.9% YTD - -3.17%


Morningstar: VWO Quote | Vanguard Emerging Markets Stock ETF Report

52 week range - 117.28 - 82.40

ETF Connect

ETFConnect - Fund Quick Facts - Vanguard Emerging Markets ETF - VWO

for the most data.

There are, of course, many other sites but this is where I start.

I also use Quantext Portfolio Planner for AA.

Quantext Portfolio Planner

QPP may be helpful since -- as has been pointed out -- you are spreading things quite thinly and, consequently, could be increasing your risk level rather than lowering it as intended.
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