I have an interest in diversifying some small percentages into REIT and maybe some metals. I have been holding off until it seemed like a good time.
Reading posts about the importance of bond or bond fund total return versus CD or money market interest only return, I think that I should have more of my fixed income/cash in bond funds rather than in MM.
Given the current high prices of gold and silver, I think that it is probably not a good time to get into them and I am in no hurry.
With all of the bad press regarding the real estate meltdown, I am wondering if it makes sense to try to average into the REIT category. I have my eye on the Vanguard VNQ ETF. Is now a good time to be thinking about building a small position in REIT eventually reaching 5% of total assets?
My house which is paid for, is maybe worth 20% or 25% as much as my investment assets, which do not include the house. I saw some posts indicating that this might be enough real estate exposure without the REIT.
With regard to getting more bonds, I have my eye on the Vanguard BND ETF.
I currently am trying for 60% equity and 40% fixed. I have about 15% in I-Bonds (10% at good old rates, 5% at new crappy rates); 5% in FIDO bond index funds and 20% in MM or CD).
I would like to keep 5% in MM as a cushion, so that would mean I would need to buy about 15% or 20% for the BND ETF.
With everyone rushing to bonds, should I hold off and increase my bond vs MM ratio after the equities recover and bonds drop or interest rates go back up?
FYI - my account is with FIDO so if I buy Vanguard it is cheaper to buy ETF than funds and I don't want to open a Vanguard account.
FYI - I am still working and probably have at least 5 years to go before ER.
If I have to pay $15 for the ETF trades, what minimum amount makes sense? I am thinking that $10k is a good increment to average in with.
My sense is that it might be ok to average into the REIT ETF in five or six installments over the next 18 months.
I am thinking that I probably should hold off on the BND, but maybe averaging very slowly might be ok?
Any opinions?
Thanks for the input.
Reading posts about the importance of bond or bond fund total return versus CD or money market interest only return, I think that I should have more of my fixed income/cash in bond funds rather than in MM.
Given the current high prices of gold and silver, I think that it is probably not a good time to get into them and I am in no hurry.
With all of the bad press regarding the real estate meltdown, I am wondering if it makes sense to try to average into the REIT category. I have my eye on the Vanguard VNQ ETF. Is now a good time to be thinking about building a small position in REIT eventually reaching 5% of total assets?
My house which is paid for, is maybe worth 20% or 25% as much as my investment assets, which do not include the house. I saw some posts indicating that this might be enough real estate exposure without the REIT.
With regard to getting more bonds, I have my eye on the Vanguard BND ETF.
I currently am trying for 60% equity and 40% fixed. I have about 15% in I-Bonds (10% at good old rates, 5% at new crappy rates); 5% in FIDO bond index funds and 20% in MM or CD).
I would like to keep 5% in MM as a cushion, so that would mean I would need to buy about 15% or 20% for the BND ETF.
With everyone rushing to bonds, should I hold off and increase my bond vs MM ratio after the equities recover and bonds drop or interest rates go back up?
FYI - my account is with FIDO so if I buy Vanguard it is cheaper to buy ETF than funds and I don't want to open a Vanguard account.
FYI - I am still working and probably have at least 5 years to go before ER.
If I have to pay $15 for the ETF trades, what minimum amount makes sense? I am thinking that $10k is a good increment to average in with.
My sense is that it might be ok to average into the REIT ETF in five or six installments over the next 18 months.
I am thinking that I probably should hold off on the BND, but maybe averaging very slowly might be ok?
Any opinions?
Thanks for the input.