Investing, Stock Market and Retirement Planning Thread

[columbia]

[dodint]

I'm 99% invested in TSP L-2040 https://www.tsp.gov/InvestmentFunds/Fun ... L2040.html

Mainly because I'm a lazy ****.

I guess I asked because the supposed advantage to the TSP is that it has low administration fees, was curious if that was objectively true.

So here is my completely baseless review:

Good - indeed super, super cheap - that's awesome (your fees seem to be even lower than my Vanguard or previously Fidelity index fund combination)

Somewhat of an issue - no exposure to riskier international (emerging markets) stocks. I don't see that as a big deal. I used to have emerging markets with Fidelity, but ever since this year my employer gutted the number of available funds, I simply have "just" the developed international stocks. Any "loss" due to insufficient diversification would be very limited, I think.

Definitely an issue - A super conservative allocation of funds. Both G (that one in particular) and F funds limit your return potential a lot. Vanguard 2040 has less than 14% of bonds (and that includes even riskier international bonds), your TSP L2040 has over 27% of bonds - and vast majority of that in ultra-conservative non-marketable short-term governmental bonds. Anytime the market will go up (and the odds are that during the ~20+ year long investment horizon it will go up a LOT), you will miss on those movements significantly.

This article is actually quite informative:

http://news.morningstar.com/articlenet/ ... ?id=694560

Thanks Tomas, appreciate the look and resource. For now I've shifted everything to the L2050, it gets me away from the government securities fund and more into the common stock fund. Still lazy but I think for now it will get me better returns than what I was doing. I may be more hands on in the future but for now this will do.

[columbia]

Nothing wrong with letting (ethical) pros doing the gravy lifting.

[dodint]

I'm far removed from my days of buying and selling individual stocks.

[columbia]

*heavy

I lifted too much gravy...

[NTP66]

Index investing is perfect for lazy bums like you.

[shafnutz05]

This is total fan boy stuff, but I'm pretty geeked to have recently received a very nice PM from the esteemed Taylor Larimore.
http://money.cnn.com/galleries/2012/pf/ ... mag/2.html

He was a paratrooper and fought in the Battle of the Bulge....he's 93.

That's pretty damn cool...the man that started it all. Is he still really active on the board?

[columbia]

Yep. Every day.

[shafnutz05]

Yep. Every day.

I just made an account...I guess I'll begin lurking

[NTP66]

The latest trend is apparently to invest in Bitcoin. I know a few people who really shouldn't be playing with their money at all suddenly invest in it because of its recent spike (above $10k now).

[shafnutz05]

The latest trend is apparently to invest in Bitcoin. I know a few people who really shouldn't be playing with their money at all suddenly invest in it because of its recent spike (above $10k now).

Still kicking myself for not getting in way back when

[columbia]

@Tomas

Thoughts on these low cost quant funds?
https://pressroom.vanguard.com/news/Pre ... 12817.html

Mr. Bogle says "smart beta is stupid."

[mac5155]

I should've bought/mined Bitcoin back in 13...

[Tomas]

Thoughts on these low cost quant funds?
https://pressroom.vanguard.com/news/Pre ... 12817.html

Mr. Bogle says "smart beta is stupid."

I see them as "neutral mutations." Even though Vanguard calls them "actively managed", I presume they will really just apply some relatively simple filters on all companies, and keep everything that passes through the filters. I guess funds like "minimum volatility" will allow people to invest in low-beta stock portfolios (something that Vanguard does not precisely have at this point). As far as the funds utilizing filters based on perceived mispricing - given that Vanguard primarily caters to long-term investors, I don't think it matters much.

Ultimately, I think it's just the matter of marketing. Vanguard wants simply investors to believe that they now have a whole range of funds - both index and managed. And the "managed" funds are still quite cheap...

[mikey]

I am gonna cash out a piece of my bitcoin tonight...

[mac5155]

I am gonna cash out a piece of my bitcoin tonight...

Better rethink that, you missed prime time this morning.

[mikey]

It's at ~$10,000 - I got it when it was ~$800...I'm gonna be fine with the result haha

[Troy Loney]

It's at ~$10,000 - I got it when it was ~$800...I'm gonna be fine with the result haha

I would get out of that. Some pretty wild speculation out there and for money to have value as a medium of exchange there has to be some price stability.

[columbia]

One coin was going for ~ $1 at this point:
http://www.letsgopens.com/scripts/phpBB ... &p=1735254

I still think Blockchain will be super/duper important...

[NTP66]

“Avoid bitcoin like the plague. Did I make myself clear?” -Jack Bogle

[Tomas]

“Avoid bitcoin like the plague. Did I make myself clear?” -Jack Bogle

"...doesn't serve any social useful function" - Joseph Stiglitz
https://www.msn.com/en-gb/money/video/b ... vi-BBFUrS5

[NTP66]

He went straight to another level, and his points are all good [and scary if you’re an ‘investor’ of bitcoin].

[columbia]

I'd sooner buy gold (and I'll never do that).

[columbia]

Since we're getting more action in this thread, let's have some portfolio holdings talk

Roth:
Vanguard Total US Stock Market
Vanguard Wellington
Vanguard Wellesley Income

403b:
Vanguard S&P 500
TIAA Traditional

Taxable:
iShares Currency Hedged MSCI ACWI ETF (global stock)

[NTP66]

Our portfolio is relatively simple, and all Vanguard funds:

VTSAX (Total US Stock)
VTIAX (Total Int’l Stock)
VBTLX (Total Bond)
VTTHX (Target 2035)

We have multiple 5-year CDs (2.5-3.04%) that we use as our emergency fund.