Jonathan, I often hear that the currency risk makes investing in international less advantageous--something along the lines of, "If you plan on spending U.S. dollars, it's smarter to invest in companies doing business in U.S. dollars". But I have a hard time estimating the true impact of that. I invest roughly 20% in international, vs. the 40% that VT includes. I'm curious to get your perspective on whether or not the currency issue holds merit, and how much it really matters.
You might find Morgan Housel’s podcast this week worth a listen. https://podcasts.apple.com/us/podcast/the-morgan-housel-podcast/id1675310669?i=1000677122750
Jonathan, re: your #6, are you a fan of selling bonds to pay off a mortgage, if the mortgage interest rate is higher than the expected return of the bonds? If so, is it worthwhile to do so even if it means one's stock/bond ratio gets completely out of whack due to the selling of the bonds? (I suppose one could always rebalance right afterward and reset the asset allocation.)
I’ve actually told a slimy car salesman—as I was walking out—that I’m actually willing to pay more for a car if the salesman is honest. He lost the sale because to me, my satisfaction is higher—even if I pay $500 more—when dealing with someone who is honest and ethical.
Mr. Abramowitz, thank you for this article. In your final paragraph, you mention VT as an ETF alternative, although I think you probably should have inserted VXUS instead. VT is "Total World", whereas VXUS is the ETF alternative to VTIAX (Total International). Its expense ratio is 0.08%.
People who mindlessly click "reply all". This happens in military emails all the time. Someone sends an email to hundreds of people about the unit's hamburger picnic Friday afternoon, and Airman Snuffy replies to all saying he can't make it.
Are you sure you'd want to divert from what you're calling the "old" 3-fund portfolio simply due to one decade of under-performance compared to the "new" version? If anything, I would think that might lend toward sticking w/ the "old" portfolio in anticipating reversion to the mean, if nothing else.
Thanks Ken, this was such a peaceful read. I want to move to a place like this when I and my family (wife and 5 kids) retire from the Air Force. The question is: can someone in his early 50s move to a place like this where he didn't grow up, and achieve the same small-town connections with people who, unlike him, have lived there for years? Or would I and my family always feel like outsiders? I'm hopeful whatever community we settle on will welcome us as friends and neighbors, with open arms. Yours sounds very nice.
Comments
Jonathan, I often hear that the currency risk makes investing in international less advantageous--something along the lines of, "If you plan on spending U.S. dollars, it's smarter to invest in companies doing business in U.S. dollars". But I have a hard time estimating the true impact of that. I invest roughly 20% in international, vs. the 40% that VT includes. I'm curious to get your perspective on whether or not the currency issue holds merit, and how much it really matters.
Post: Stuck at Home
Link to comment from November 23, 2024
You might find Morgan Housel’s podcast this week worth a listen. https://podcasts.apple.com/us/podcast/the-morgan-housel-podcast/id1675310669?i=1000677122750
Post: What You Can Do
Link to comment from November 16, 2024
Jonathan, re: your #6, are you a fan of selling bonds to pay off a mortgage, if the mortgage interest rate is higher than the expected return of the bonds? If so, is it worthwhile to do so even if it means one's stock/bond ratio gets completely out of whack due to the selling of the bonds? (I suppose one could always rebalance right afterward and reset the asset allocation.)
Post: Advice for the Kids
Link to comment from November 9, 2024
I’ve actually told a slimy car salesman—as I was walking out—that I’m actually willing to pay more for a car if the salesman is honest. He lost the sale because to me, my satisfaction is higher—even if I pay $500 more—when dealing with someone who is honest and ethical.
Post: Car Quest
Link to comment from August 3, 2024
Rayan, have you had success buying any cars on FB Marketplace? I’ve always been curious.
Post: Car Quest
Link to comment from August 3, 2024
Mr. Abramowitz, thank you for this article. In your final paragraph, you mention VT as an ETF alternative, although I think you probably should have inserted VXUS instead. VT is "Total World", whereas VXUS is the ETF alternative to VTIAX (Total International). Its expense ratio is 0.08%.
Post: Is Vanguard International Index Fund Too Expensive?
Link to comment from June 25, 2024
"When it comes to financial advisors, you get what you don't pay for." -- Bogle
Post: What’s your favorite financial quote?
Link to comment from June 24, 2024
People who mindlessly click "reply all". This happens in military emails all the time. Someone sends an email to hundreds of people about the unit's hamburger picnic Friday afternoon, and Airman Snuffy replies to all saying he can't make it.
Post: Monday is a good day for a rant. Let’s talk everything annoying. People, money, people
Link to comment from June 24, 2024
Are you sure you'd want to divert from what you're calling the "old" 3-fund portfolio simply due to one decade of under-performance compared to the "new" version? If anything, I would think that might lend toward sticking w/ the "old" portfolio in anticipating reversion to the mean, if nothing else.
Post: Invested in My Opinion
Link to comment from June 15, 2024
Thanks Ken, this was such a peaceful read. I want to move to a place like this when I and my family (wife and 5 kids) retire from the Air Force. The question is: can someone in his early 50s move to a place like this where he didn't grow up, and achieve the same small-town connections with people who, unlike him, have lived there for years? Or would I and my family always feel like outsiders? I'm hopeful whatever community we settle on will welcome us as friends and neighbors, with open arms. Yours sounds very nice.
Post: Didn’t Make the List
Link to comment from May 5, 2024