Investing
Books:
- A Random Walk Down Wall Street: The Best Investment Guide That Money Can Buy Thirteenth Edition by Burton G. Malkiel
- The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns by John C. Bogle
- The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life by JL Collins
- The Bogleheads’ Guide to Investing 2nd Edition by Mel Lindauer, Taylor Larimore, Michael LeBoeuf, John C. Bogle
- The Bogleheads’ Guide to the Three-Fund Portfolio: How a Simple Portfolio of Three Total Market Index Funds Outperforms Most Investors with Less Risk by Taylor Larimore, John C. Bogle
- The Bogleheads’ Guide to Retirement Planning by Taylor Larimore, Mel Lindauer, Richard A. Ferri, Laura F. Dogu, John C. Bogle
Websites and posts:
- Investopedia
- Bogleheads
- Three fund portfolio
- Optimized Portfolio
- Portfolio Asset Allocation by Age
- Lazy Portfolios
- The Best Total U.S. Stock Market Funds
- Morningstar State of Retirement Income
- Fidelity Planning and Guidance Center
My allocation (work in progress):
- 18 months of money in safe liquid instruments
- Question: is this money market?
- Bonds 30%
- 1/3 Certificate of Deposit and/or US Treasury bonds fund
- Question: how is this different from money market?
- 2/3 corporate bonds fund
- Question: how is this better than a bond index fund that combines treasury and investment grade corporate funds?
- some portion - high-yield (junk bonds)
- Question: what portion?
- 1/3 Certificate of Deposit and/or US Treasury bonds fund
- Stocks 60%
- 3/8 US grows stock fund
- 1/2 income (dividend) stock fund
- Question: why is this better than a whole-market US stock index fund?
- 1/8 international growth stock fund
Malkiel asset classes:
- Cash
- money-market fund or short-term bond fund (average maturity 1 to 1.5 years)
- Stocks
- 1/2 US stocks with good representation of smaller growth companies
- 1/2 international stocks, including emerging markets
- Bonds and bond substitutes:
- no-load high-grade corporate bond fund
- some Treasury inflation-protected securities (TIPS)
- foreign bonds
- dividend growth stocks
- Real Estate:
- portfolio of REITs
Malkiel allocation:
age | cash | bonds | stocks | real |
---|---|---|---|---|
mid-twenties | 5% | 15% | 70% | 10% |
late thirties to early forties | 5% | 20% | 65% | 10% |
mid-fifties | 5% | 27.5% | 55% | 12.5% |
late sixties and beyond | 10% | 55% | 40% | 15% |
Funds
It seems that I can buy Vanguard ETFs at Fidelity with no additional fees, but for mutual funds there are fees?
Money Market
non tax-exempt Vanguard VMFXX 0.11% 44 days Fidelity SPAXX 0.15% 37 days TFDXX 0.17%
tax-exempt Vanguard VMSXX 0.15% 11 days Fidelity FTEXX 0.16% 35 days
US Stocks
Vanguard VTSAX 0.04% (CRSP) Vanguard ETF VTI 0.03% (CRSP) Fidelity FSKAX FZROX - less coverage than FSKAX Fidelity FSTVX 0.04% (Dow Jones) - not good, price-weighted!
International Stocks
Vanguard VTIAX 0.11% (FTSE) Vanguard ETF VXUS/VEU 0.08% Fidelity FSPSX 0.04% (MSCI EAFE)
Corporate Bonds
Fidelity FCBFX 0.45%
Dividends
Vanguard VYM 0.06% Vanguard VDAIX 0.08% Vanguard VDIGX 0.26% Vanguard VEIRX 0.19%
Social Security
age | % |
---|---|
62 | 70 |
63 | 75 |
64 | 80 |
65 | 87 |
66 | 93 |
67 | 100 |
68 | 108 |
69 | 116 |
70 | 124 |