My portfolio

[timemoveson]

This has been somewhat entertaining to read, sure, but is quickly coming up on painful to continue with. And I'm a very tolerant reader.

Like nails on a chalkboard.

[pb4uski]

Yup... your screen name is very appropriate to this thread.

[Boho]

I'll add US treasury bonds, I guess. I didn't like the performance of the small caps I looked at. They dropped way too low a few years ago, so I'll not worry about those. I have way too much cash that I have to put somewhere so there will be a change.

[Whisper66]

Quote:

Originally Posted by Boho Are those Vanguard managed funds that Vanguard now says outperform their index funds (there's a recent thread on that) cheaper than my managed funds?

Here's a link to the list of funds at Vanguard (link). Browse the funds that look similar to yours and compare their fees and returns. I use two managed funds, expenses run 0.32% with no load fees. I think that is pretty typical for Vanguard managed funds. I only use managed funds for areas I didn't have a Vanguard Index fund to go to.

BTW - Vanguard was built on low fee funds so everything should be low fee. I hear from comments on this board that Fidelity has adjusted to the market and offers some low fee funds (as well some not so low). So if looking for lower fee funds, they can probably be found at either place.

[nun]

Quote:

Originally Posted by Boho Are those Vanguard managed funds that Vanguard now says outperform their index funds (there's a recent thread on that) cheaper than my managed funds? I read that Fidelity lowered costs to compete at some point. I guess you have to have accounts with both so you can just choose the best fund but I've been avoiding that.

I own some Wellesley with an ER of 0.15%, but the rest is in Admiral Class Indexes with ERs from 0.12% to 0.05%.

I have no real interest in the "best" fund. I keep costs low and I index. I stopped worrying about funds and AA a long time ago. Hopefully you'll reach that point one day.

[Boho]

Index funds vs a diversified portfolio of medium to low cost (<=1%) managed funds. That's what I'd like to know. I got the 1% from the article With fund expenses, how high is too high? which says "For mutual funds that invest in large U.S. companies, look for an expense ratio of no more than 1%."

[nash031]

I have a feeling this portfolio is a disaster waiting to happen. Buying now, "extensive research" that doesn't lead to discovery of a fund minimum... When/if this takes a dip with the rest of the market, and underperforms because of fees and loads, I predict a bad sell and an individual who is going to end up disappointed.

The quote "I have way too much cash that I have to put somewhere" is just alarming. Strikes me as someone who is craving action, which is in line with other threads about speculative positions. Interesting reads, but man, lots of red flags.

[harley]

Quote:

Originally Posted by Boho Index funds vs a diversified portfolio of medium to low cost (<=1%) managed funds. That's what I'd like to know.

Don't forget that each of the funds within your diversified portfolio of medium to low cost funds has it's own management costs, too. So you're likely paying somewhere in the vicinity of double what you would pay just owning the funds outright. And that could easily be 10-20 times more (or even more) than the cost of owning the index.

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I got the 1% from the article With fund expenses, how high is too high? which says "For mutual funds that invest in large U.S. companies, look for an expense ratio of no more than 1%."

Absolutely completely unbiased reporting too. Pay no attention to the companies who buy all the ads paying for the magazine. There's a reason these mags are called financial porn.

If you think you have found/can find an actively managed fund that can consistently beat it's index by more than the difference in their management costs and other add on costs, go for it. I, and I believe most of the people here, freely admit we don't have that skill, so our best bet is to minimize costs and just ride along with the market ups and downs. But you need to do whatever makes you happy.

[Boho]

Quote:

Originally Posted by nash031 I have a feeling this portfolio is a disaster waiting to happen. Buying now, "extensive research" that doesn't lead to discovery of a fund minimum...

I'm not sure what that even means. You're responding to a post where I linked to a CNN article that says what's expensive for a fund. Yes, I trust CNN, the New York Times, the Washington Post, the Wall Street Journal (on financial matters only), etc. over something said on Bogleheads or Vanguard about their own funds.

Quote:

When/if this takes a dip with the rest of the market, and underperforms because of fees and loads, I predict a bad sell and an individual who is going to end up disappointed.

I think I try to sell high and buy low more than anyone on this forum. If the market is dropping at a certain rate, yes, I'll start thinking "it will probably keep going for a while" but I wouldn't be sure what to do. I'd really like some solid information on that. What rate and extent of dropping indicates it will keep going and that you should sell? I think if I asked I'd just get a lot of cop outs and stories about people selling when they should have waited for it to bounce back up. I don't believe that's always the right thing to do but I won't claim to know exactly when it is.

Quote:

The quote "I have way too much cash that I have to put somewhere" is just alarming. Strikes me as someone who is craving action, which is in line with other threads about speculative positions. Interesting reads, but man, lots of red flags.

I have over $6,000 in savings, which is almost 6 months expenses, plus $8000 cash in a brokerage account (it was $20,000 until yesterday). I think that's too much by most people's standards. I'm still working on what to do with the $8000.

[Boho]

Quote:

Originally Posted by nash031 I have a feeling this portfolio is a disaster waiting to happen. Buying now, "extensive research" that doesn't lead to discovery of a fund minimum...

Oh, I figured it out. Yeah, I bought a bond fund a couple of days ago. I think it was my only fund that gained yesterday. With the fund minimum issue, that's not a fund quality issue and it wasn't on my mind. It takes care of itself. If I try buying too little, I can't buy. I tend to look now but that information still isn't always available. For example, I don't see a minimum for IJJ on Fidelity's or iShare's website and it's not worth looking at more pages.

[nash031]

Quote:

Originally Posted by Boho Yes, I trust CNN, the New York Times, the Washington Post, the Wall Street Journal (on financial matters only), etc. over something said on Bogleheads or Vanguard about their own funds.

To each their own. Those news outlets are looking to sell advertising, too.

Quote:

I think I try to sell high and buy low more than anyone on this forum. If the market is dropping at a certain rate, yes, I'll start thinking "it will probably keep going for a while" but I wouldn't be sure what to do. I'd really like some solid information on that. What rate and extent of dropping indicates it will keep going and that you should sell? I think if I asked I'd just get a lot of cop outs and stories about people selling when they should have waited for it to bounce back up. I don't believe that's always the right thing to do but I won't claim to know exactly when it is.

Don't you think that if there was a good answer to your question, literally everyone would know it and act on it? Call it a cop out if you want, but there are a lot of smart people here, many of whom are millionaires several times over from frugality and intelligent investing, who are telling you you're better served not worrying about it.

Quote:

I have over $6,000 in savings, which is almost 6 months expenses, plus $8000 cash in a brokerage account (it was $20,000 until yesterday). I think that's too much by most people's standards. I'm still working on what to do with the $8000.

I have more than double that amount. It makes up less than 1% of my overall portfolio, so no, I don't consider that "too much cash". In fact, I'm purposefully sitting on it for the next the the broad market presents an opportunity to buy. I'm not putting extra money into this market right now. I believe it is overvalued. Point is, talking in absolutes makes little sense. I have no idea how much $8000 represents for you, but for me it would not be nearly "too much cash".

[Boho]

Quote:

Originally Posted by nash031 there are a lot of smart people here, many of whom are millionaires several times over from frugality and intelligent investing, who are telling you you're better served not worrying about it.

The millionaire indexers here probably had exceptionally good income from their jobs.

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In fact, I'm purposefully sitting on it for the next the the broad market presents an opportunity to buy. I'm not putting extra money into this market right now. I believe it is overvalued.

Everyone has thought the market was overvalued for a long time. I'm waiting too but I thought that was frowned upon here. Fund managers need cash, but I've heard various things about investors needing cash (aside from savings and checking). As many people say to stay invested as say to wait for a dip. Some say waiting for a dip isn't market timing and some say it is.

I'm waiting for either a broad market drop or a little market stabilization and for a particular fund to "randomly" drop in price consistently with its historic pattern, then I'll buy. I read more of A Random Walk Down Wall Street, 2015 edition (the paper and print is so bad that I wouldn't take it seriously if I didn't know it was a respected book), and on page 138 it shows a graph of a coin toss pattern. It's intended to show that the randomness of a coin toss produces a seemingly cyclical pattern, but the graph only shows like two peaks. That doesn't bother me because I look for a much longer term pattern before I decide that a fund is at a low point.

I think the book's chart shows about 100 coin tosses (I don't think it gives the number but I did a rough count from the graph). Here's a better chart made from 150 tosses. It doesn't provide a pattern I'd be comfortable with if I was looking to time a fund.

Coin Tosses and Stock Price Charts | TVMCalcs.com

[getwilde]

The Little Book of Common Sense Investing (by John C Bogle) completely changed how I view the market. In fact, I fired my financial advisor of 10+ yrs the day after I completed it.

I'm too new here to know how this community regards Bogle's advice, but I hear echoes in the posts about the importance of low fee funds.

It's an easy read and very informative. Highly recommended.

Quote:

Originally Posted by Boho The millionaire indexers here probably had exceptionally good income from their jobs.

The Millionaire Next Door is a fascinating book which challenges this notion. Its authors interviewed hundreds (?) of millionaires around the US and discovered that wealth (ie net worth) has little correlation to income.

[RobLJ]

Quote:

Originally Posted by MRG MTRAX has a 5.5% FE load and a .25% 12B1 fee. Who is your advisor?

My Fidelity brokerage 403b offers many load funds load and transaction fee waived. This is one--I do own several that I would not own were not the load waived.

It's worth a thought, Boho, if you are investing in load funds.

[Boho]

Quote:

Originally Posted by RobLJ My Fidelity brokerage 403b offers many load funds load and transaction fee waived. This is one--I do own several that I would not own were not the load waived. It's worth a thought, Boho, if you are investing in load funds.

Yeah, I noticed that and mentioned it a few posts later. I initially just looked at the "costs" rating and saw it was good and didn't look into loads. Turns out it was good. I even bought more MTRAX. I like bond/stock/us/foreign mixes because I feel like it's less limiting for the manager. I don't mind a pro deciding how to balance things. I figure a mixed fund will be "somewhat" balanced and that's good enough for me.

[nun]

Quote:

Originally Posted by Boho Yeah, I bought a bond fund a couple of days ago. I think it was my only fund that gained yesterday.

Why would you want to know how your funds perform with 24 hour resolution. This has all the indicators of a train wreck.

[Boho]

Quote:

Originally Posted by nun Why would you want to know how your funds perform with 24 hour resolution.

Why not?

I was criticized for buying by someone who didn't even know how the fund performed or what fund it is, just because the market is up, and that's OK?

[UnrealizedPotential]

Boho, why did you post your portfolio if you don't want advice? I like my portfolio, but I don't feel the need to post it as I am not looking for advice or feedback.

[OverThinkMuch]

Quote:

Originally Posted by Boho ... (the paper and print is so bad that I wouldn't take it seriously if I didn't know it was a respected book)...

So between a nice glossy investment brochure and an investment book in its 15th edition, you might make a judgement based on the "paper and print"?
I think your money is just waiting to be taken.

While you pursue this idea, track it against the S&P 500 index. See for yourself.

[Boho]

Quote:

Originally Posted by OverThinkMuch So between a nice glossy investment brochure and an investment book in its 15th edition, you might make a judgement based on the "paper and print"?

No, a brochure gets points deducted for not being a book.

I don't even see where it says 15th edition. I wanted a book required by colleges and I read that this one was but I'd have chosen another one based on a pathetic and misleading graph and lack of references if not for the poor paper quality and print.