You’ve gone long-term the S&P 500 and you think you’re diversified. Lots of luck. Others of you are smug because you opted instead for a total market fund. At least you guys had the right idea. Truth is, neither of you is adequately spread out. Why not? Because you are horribly underinvested in small cap stocks
 
The S&P has absolutely zero small stocks represented, according to Morningstar’s definition. And small companies make up only 8% of the broad market alternative’s holdings.

I was an independent advisor for Charles Schwab but have always entrusted my money to Fidelity. I’ve been spoiled by the elite service, very knowledgeable telephone reps and emphasis on mutual funds.  I see Schwab more as a bunch of swashbuckling stock enthusiasts offering mutual funds merely to have a presence.
I’ve snubbed Vanguard despite its reputation as the hands-down low-cost provider because of its notorious service shortcomings—insufficient online tools, limited telephone hours, poorly trained agents and no local branches.

SUPPOSE YOU WANTED to construct as simple an investment portfolio as possible. What would it look like?
Many argue that, for stock market exposure, you could go with a single fund, one that tracks the S&P 500 index. The S&P index offers broad diversification and tax efficiency, plus it includes the largest and most successful companies, making it a popular choice. But it’s not perfect.
The S&P 500, like many market indexes, holds stocks in proportion to their size,

The new kid’s back in town and he’s a bully. Remember active mutual funds? Get ready because here come active ETFs. In 2019, there were only about 350 of those guys, but now that number has ballooned to almost 1,500. Remarkably, active ETFs gobbled up over 20% of the net asset flow into stock ETFs in the first half of this year.
According to one active ETF advocate, actively management has become more popular as heavyweight asset managers have entered the fray.

Anticipating that I would soon be starting the decumulation phase, I recently set up a five year CD ladder, using brokerage CDs bought through Vanguard. Yesterday I ran Vanguard’s Portfolio Watch. Aside from finding that my stock percentage had gone from 50% to 54%, and my international stock percentage from 20% to 10%, I found that Vanguard counted my CDs as bonds, not as “short term reserves”. Can anyone explain that?
Also, since I need to do some rebalancing,

Years ago I bought some Gold Eagles. Now with gold trading at near historic highs, I figure it may be a good time to sell. If you have sold your gold, I’d be very interested to hear your thoughts on the process, especially in regards to maximizing the sales price.

A NEW TYPE OF MUTUAL fund has captured investors’ attention. Known as buffer funds, they’re so appealing that one industry analyst has referred to them as “candy.” Why? As The Wall Street Journal describes them, buffer funds offer investors “the chance to chase stock returns while also protecting against a potential market slide”—a seemingly ideal combination, especially for those in or near retirement.
But funds like this are complicated—they rely on options strategies.

Like many of you I have read Jonathan writings  from WSJ to Humble Dollar . I have been content to just enjoy reading without comment. After Jonathan health news and his  hopes Humble Dollar will continue I decided to get off the sidelines and have started to add my 2 cents worth (which is only worth about half a cent these days) on some of the posts. This is my first post. What first got you interested in investing?

In two previous posts (“The Morningstar Experience” and “Your Morningstar Freebee”), we looked at how readers considering investment in a Vanguard fund can consult the helpful information in Morningstar’s esteemed advisory service. We demonstrated how they might consult this resource to monitor their investments and evaluate their performance. Today, we’ll illustrate how to decide whether the holdings of the fund meet the reader’s objective. Once again, the fund examined is Vanguard’s Small-Cap ETF (symbol VB, or VSMAX for the mutual fund alternative).

Morningstar, that indispensable fund advisory service, has a freebee, but it’s missed by many folks who could benefit mightily from its wisdom and data. True, to monitor your holdings via the invaluable Portfolio Manager, you’ll have to pony up the $249 admission price. But many investors are unaware they can pull up comprehensive analyses—both quantitative and qualitative—of their individual mutual funds and ETFs without a subscription.
Why would Morningstar allow you to squeeze in without paying for its coveted fund reviews?

In yesterday’s post, “Navigate Your Portfolio in Morningstar in 20 Minutes,” we introduced the highly respected advisory service and walked through how to enter your funds into its Portfolio Manager platform.  We put special emphasis on Morningstar’s hallmark 5-Star Ratings, enumerating some of the system’s strengths and weaknesses. You have access to the Stars without a subscription by simply searching for your fund, but other information on Portfolio Manager and the invaluable X-Ray tool we will navigate today does require one ($249 annually).

When it comes to managing my fund investments, Morningstar has been my crème de la creme for about 25 years.  It’s comprehensive, hugely informative and reasonably user friendly. It is one of the most responsible and ethical services around, periodically evaluating its usefulness both quantitatively and quantitatively.
Another thumbs up—Morningstar neatly complements Humble Dollar. It encompasses both traditional topics of personal finance like saving for retirement and sophisticated treatment of how to clear long-term investing hurdles like an unlucky sequence of returns.

“I can’t believe that the great mass of investors are going to be satisfied with an ultimate goal of just achieving average returns.” That’s what Fidelity Investments Chairman Edward C. Johnson III told The Boston Globe in 1976, the year Jack Bogle helped launch the index-fund revolution by opening Vanguard Group’s S&P 500 fund to investors.
Since then, of course, indexing has enjoyed stupendous growth, and today investors have more money in index mutual funds than in actively managed funds.

I wrote recently about my attempts to improve my asset location. Now, I’ve even consulted an AI chatbot, Perplexity, on the subject, and it produced a surprisingly good answer—it even knew I was asking about taxes when I forgot to use the word tax in my question.
As part of the plan I wrote about, I’m preparing to buy another stock ETF for my taxable account from the proceeds of a Treasury bill maturing soon. I will sell an identical amount of a stock holding in a Traditional IRA and place the proceeds in bonds.

THE YEAR’S MIDPOINT is here, with the stock market on track for its second consecutive year of above-average gains. This has many investors asking about rebalancing. Below are some commonly asked questions.
What is rebalancing? Let’s say that, to get the right mix of risk and return, you’ve settled on an asset allocation of 50% stocks and 50% bonds. Now, suppose the stock market rises 10%. This would lift stocks to some 52% of your total portfolio,