chipmunk - All Comments

Re: Break time

Django — Thu, 04 Feb 2010 21:25:33 GMT

Have a good break. I enjoy reading your posts, so I hope it is a short one.

Re: Break time

Lucas_McCain08 — Thu, 04 Feb 2010 21:32:51 GMT

I'd just like to share this with my fellow Morningstar posters. I need a break from posting for a while. There have been times when posting here has been, shall we say, an obsession, and I need to step back for a while. Hi Dan. A few years ago, I posted very much the same thoughts as you. (and I was railroaded out of town! :-)) I compared all this Morningstar stuff to having an "addiction." Well, I would like to reclassify that as being a "passionate interest or hobby" for most of these folks; and a sincere desire for some to pass along their investing knowledge and try and help people.

I think there are many older and retired people here, possibly some handicapped people, and posting in the M* forums is entertainment for them. Nothing wrong with that, and I mean no offense to anyone. In fact, I now find myself in a couple of those categories!

These forums become a way of networking with people, an educational and discussion platform, and friendships develop over time. I think that's great, and I no longer think it's strange if a person chooses to spend a large amount of time here. Whatever brings joy and pleasure to their life.

There are more important things in life. Yes, it is important to pay attention to personal finances, saving, and investing, and these are necessary for day-to-day life, but they should not be the focus of one's life. An occasional basic question answered here is fine. True, and like anything else in life, it is best to have some balance. (Frankly, I would never choose to spend all day arguing in the Politics forum. But that's just me.)

The older I get, the more I think that an all-in-one balanced or target retirement fund or even just CDs in the bank might just be the best way to go. Let's face it. None of us can outguess the direction of the markets, no matter how hard we try to hedge or perform market timing. We can spend countless hours here researching, and still get no where. Stocks, bonds, currencies, commodities, precious metals, and real estate can all fail, even after we make informed decisions, and there is nothing we can do about it. I couldn't agree more! Simplicity is the way to go (for me). But again, lots of investors enjoy the "hands on" investing approach, doing the research, buying & selling, exploring and discussing alternatives, making bets, keeping abreast of new exotic things, trying to eek out the best return possible... To each his own.

For me, all that stuff becomes "information overload" and I just get more confused and frustrated with it. I have most of my money in one conservative balanced fund, and am very content that way.

I enjoy watching the world news, and the financial events unfolding, and how all that affects my retirement and my children's future. I find it very interesting. But even with that, I always remind myself that "there is much more to life than having money." And, "money does not buy happiness."

I remain the same humble, reserved, and conservative guy today... as I was before I became a millionaire. ;-)

Take care.

Re: Break time

hurleyhuckster — Thu, 04 Feb 2010 21:40:10 GMT

Your words certainly ring true, Dan.

Its a tough balance to strike and is even harder if your not working fulltime (retired or whatever). It can be very addicting.

Take it easy and hope to see you around. Always enjoyed your posts.

Go spend some money :o)

Brian

Re: Re: Break time

chipmunk — Fri, 05 Feb 2010 00:35:45 GMT

Thank you, Django, Lucas and Brian. Let me add that I have not been totally honest with everyone here, and I am sorry.

I do think balance in life is important. Also, I agree that for some, this is a good hobby and a place to network. I just think I lost my balance. I'll return soon...

Dan

Re: Break time

retired at 48 — Fri, 05 Feb 2010 04:18:01 GMT

Dan...you were a gentlemanly poster.

We differed on lots, but also agreed on very much. But its no fun discussing things we agree on!!!

The number one admired poster on Bogleheads.Org has said to me, in private memo's, that one day he will simply "just stop." Even now, he takes periodic breaks.

We all have some of your feelings in us...

And my wife calls it an addiction, too.

I await your return...

R48

Re: Q&A for chipmunk's Chipmunk's 2010 Mutual Fund Contest portfolio

chipmunk — Fri, 01 Jan 2010 17:59:24 GMT

Okay, a few thingies:

First, the name '2010 Mutual Fund Contest' can only be used once. So, I added my username in front to distinguish mine, even though the username gets repeated.

Second, my unusual picks made the percentage numbers get unusually messed up, and I will try to fix this.

Third, Wind_Reaver used a group, an excellent idea, which I will try to join (Edit: I saw your request on the M* forum, I'll wait to see what M* says, thanks!).

Edit:

Okay, it looks like mine is now fixed to where I have 1/5 each: FXF, GLD, TEI, TMV, and TWM. Again, this is a very high risk portfolio, and I would never do this with real money. I'm still not sure how to add this to the new group.

Re: How bonds work

clwatt1950 — Sat, 25 Jul 2009 14:34:16 GMT

Hi Dan,

This helps me understand much more about bonds in general. I know I need to read up more about each type but this made is simple for us new bee's!! Thanks again for all your grweat post's.

Carlos

Re: How bonds work

chipmunk — Sat, 25 Jul 2009 14:00:00 GMT

Carlos, I think you already own it. I would say that Vanguard Total Bond Market Index (VBMFX) is just about the best all-in-one bond fund that exists. It includes the market weighting of the major bond sub-categories: (1) mortgage-backed securities (MBS), (2) treasuries and government agency (gov't guarantee), and (3) investment-grade corporates. This is a tough one to beat over long periods of time. It held up very well during the 2008 bear market, likely due to its average AAA/government quality, but is lagging a bit in 2009. It is a good core bond fund, and can be used as your only bond fund if you wish.

Vanguard Inflation-Protected Securities (VIPSX), or TIPS, is an excellent diversifier for those (like retirees) who need some inflation protection/insurance. Over the past year during deflation, this has not worked out so well, but that is the risk you take with TIPS.

Vanguard Intermediate-Term Treasury (VFITX) is an excellent diversifier to equities -- even better than other types of bonds -- but if you hold VBMFX, you already have exposure to these. Holding VFTIX means you want more than the market weight of treasuries, which is fine, but I would simplify to VBMFX/VIPSX. Adding a bit of international bonds like T.Rowe Price Int'l Bond (RPIBX) is not a bad idea for currency diversification.

With that said, after the financial collapse, I started buying corporates that were beaten down because I thought they were undervalued, and thus far I'm right (knock on wood), as they're slowly increasing in value as the spreads are being reduced and the panic subsides. So, I'm overweight corporates right now.

Just to reiterate, I am not a professional, and please do your own due diligence before making any decisions.

Dan

Re: How bonds work

clwatt1950 — Sat, 25 Jul 2009 14:45:39 GMT

Dan,

Today in my Index portfolio I have the following bond funds.

vipsx 5%

vfitx 9%

vbmfx 33%

My Question is do you know of an all in one type of Bond Fund for us that are trying to make our own pick's rather than useing an Adviser?

Thanks

Carlos

Re: How bonds work

clwatt1950 — Sat, 25 Jul 2009 15:07:43 GMT

Dan,

Thanks for the information. I must admit you made me feel good. I will look into RPIBX to replace VIPSX.

Thanks

Carlos

Re: How bonds work

hurleyhuckster — Sat, 25 Jul 2009 16:29:10 GMT

Dan,

Nice job, as usual.

Carlo, since your looking at TRP, take a look at Spectrum Income as well. It is a well diversified one stop bond fund. Keep in mind it does hold a slug of junk, as well as some equity income. I would not suggest this fund for someone strictly looking for muting of portfolio volatility, but it did not sound like that was your objective.

Finally, I highly rec'd two books to add to your wish list.

The Bond Book, by Annette Thau

Bonds: The Unbeaten Path to Secure Investment Growth, by Hidly & Stan Richelson

You dont necessarily need them both. These books are like one stop shopping bond books to go with your fund :o) You will learn the ins and outs of almost every bond out there. Simply precious books. I am due for a re-read myself.

Brian

Re: How bonds work

clwatt1950 — Sat, 25 Jul 2009 17:21:55 GMT

Thanks Brian,

Need all the help I can get.

Carlos

Re: How bonds work

hurleyhuckster — Sat, 25 Jul 2009 16:45:00 GMT

Yeah, you and me both, Carlos!

Keep in mind the Spectrum Income is an actively managed fund with allowable ranges of allocations to the underlying funds in which it invests, and does not maintain a static allocation.

If thats your cup o tea, the good news is you dont really pay for this management. The ER is typically, the weighted average of the underlying funds. It gets complicated due to the dynamic allocations, and I had my doubts about this. I did some analysis and was satisfied with the conclusion that there is no extra fees on top of the underlying funds.

So, if strictly indexing is your thing, or you want tight control over your allocations, this fund is not for you.

Disclosure: I do not hold this fund.

Good Luck

Brian