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  1. Yes, hire someone hourly to advise you. Using your numbers of $20,641 with and advisor and $26,452 from Vanguard giving you 28 percent more after 15 years, you'd have paid the advisor 387.4/yr; $7.45/wk or the GRAND SUM OF $0.186/hr. That assumes that the amount is equally amortized over the 15 years. It doesn't account for the measly amount in the first years or the amount that you made b/c your advisor convinced you to increase your payroll deduction so he/she could make more money or your advisor convinced you to open a Roth. Isn't it marvelous what we can do with numbers.
  2. Larry is a broker selling DFA funds. The ACADEMIC study on asset allocation is by Brinson. It only talks about equities/fixed income. calpers doesn't worry about small/large/growth/value. It worries about equities/fixed.
  3. Joe, I did the same "" sectors you did using active funds. I also used high yield bonds, commodities and TIPS funds - also actively managed. Going forward, I'm adding a lot more dividend producers and large cap, both value and growth. Just finished running financial engines and the worksheets with a "retirement planner" from fidelity. Advise - keep doing what we're doing and the high equity/bond allocation is fine. Numbers can be made to do whatever you want. C is an average grade. Can you identify the students who will outperform?
  4. Here are the morningstar fund category returns for your brother-in-laws portfolio. Group: Members Posts: 37 Member No.: 419 Joined: 16-May 04 Here are the morningstar category fund returns. The YTD are the 12/31 returns and should correspond to Steve's numbers. nd Category Performance: Total Returns ( % ) Category Name 1 Month YTD 3 Month 1 Year 3 Year 5 Year Domestic Stock Funds Specialty-Real Estate 2.79 31.71 15.81 31.71 23.70 21.49 Small Value 2.07 20.46 12.39 20.46 15.48 15.78 Large Blend 1.93 9.94 9.35 9.94 2.96 -1.76 International Stock Fund If I was your brother-in-law, I'd be upset at not getting the category averages, at least. By the way, run your so-called DIVERSIFIED portfolio by the people at M*
  5. Rick and Larry are in the business of selling DFA funds. They're brokers. Duh!
  6. Joe, Here from M* diehard forum - a name you'll recognize Conversations # 37543 of 38818 Jump to # 1. The 4-Fund Portfolio Taylor Larimore| 10-30-04 | 03:26 PM Hi Gus: THE 4-FUND PORTFOLIO: A Money-Market Fund Total Stock Market Fund Total International Fund Total Bond Market Fund
  7. I couldn't find any link to verify your data. I selected one I knew I had seen returns for My Monday morning newspaper lists the 12/30 results of janus aspen mid cap growth (aggressive) return as 25.84. Subract 1.25 m&e fee 24.59. Vanguard midcap index - 15.64. You continue to make assertions w/o data. You cut and paste, but you don't provide us with links.
  8. Your replies show that you seem to have bought the broker version of asset allocation rather than read the actual academic studies. Asset allocation works and is necessary. If those who lost tons of money in the tech wreck had practiced asset allocation, they would have lost some but not like they did. The asset allocations studies talk about rebalancing on an annual basis between EQUITIES and FIXED INCOME assets. This nonsense about dividing up between large and small, growth and value is broker, sales driven b/c people hate any kind of losses and b/c it increases sales. The Callan charts, do indeed, show that there is sector rotation. This can last several years. The studies verify that momentum persists. One MUST balance (take profits) annually and put it in the opposite class - equity/fixed. This has significant tax implications and thus requires adequate tax sheltered assets. This is not day trading or chasing funds. The people over on the Vanguard board who practice this with Vanguard funds call it dynamic asset allocation. As Taylor says, there are many roads to Dublin. Except on the 403b board.
  9. detailgal, You should be able to move 10% of your assets annually w/o paying the withdrawal fees. At 4% with a 1.25 m&e, it would take 3.2 years to get your load back. The big question and thing that needs to be determined is how do they figure the fees. Many of the insurance companies compute the 10 years from the date of each individual deposit. Some compute it from the date of starting and/or annually. The thing you need to figure out is what you're going to do about ongoing/future 403b monies or even if you're going to do them.
  10. I find it interesting that you're using the 9/30 results when the last quarter was the one that zoomed this year.
  11. Or you could put major amounts in the " or ter" asset classes annually and increase your returns significantly. Oh, that would increase your risk! Yes, folks, take a choice. Increased risk DOES increase return. Which is more important to you? It really does differ folks. If your primary concern is risk, then index funds are for you.
  12. Here are the morningstar category fund returns. The YTD are the 12/31 returns and should correspond to Steve's numbers. nd Category Performance: Total Returns ( % ) Category Name 1 Month YTD 3 Month 1 Year 3 Year 5 Year Domestic Stock Funds Specialty-Real Estate 2.79 31.71 15.81 31.71 23.70 21.49 Specialty-Natural Res 1.65 28.47 4.74 28.47 17.87 14.48 Specialty-Utilities 3.18 23.43 11.89 23.43 4.85 0.45 Specialty-Communications 1.52 22.61 17.94 22.61 1.20 -12.24 Small Value 2.07 20.46 12.39 20.46 15.48 15.78 Small Blend 2.06 18.87 12.89 18.87 12.45 11.87 Mid-Cap Value 2.51 17.95 11.17 17.94 11.27 11.33 Mid-Cap Blend 2.45 16.03 11.86 16.03 9.82 7.21 Specialty-Financial 2.40 13.76 9.94 13.76 10.71 11.68 Mid-Cap Growth 2.47 12.93 12.97 12.93 3.70 -3.46 Large Value 2.24 12.82 9.23 12.82 5.59 4.35 Small Growth 2.23 12.09 13.92 12.09 4.96 -0.50 Large Blend 1.93 9.94 9.35 9.94 2.96 -1.76 Specialty-Health 3.97 9.25 7.70 9.25 0.68 7.96 Moderate Allocation 1.47 8.49 6.84 8.48 4.68 2.14 Convertibles 1.63 8.42 6.82 8.42 8.11 3.53 Large Growth 1.71 7.55 10.05 7.55 -0.02 -7.65 Conservative Allocation 0.92 5.76 4.07 5.76 5.09 3.80 Specialty-Technology 0.27 3.89 16.09 3.89 -2.95 -16.91 Bear Market -1.86 -14.21 -11.73 -14.21 -10.34 -1.27 International Stock Fund
  13. Joe McDonald - >Hi, Joel, I have all of my funds at Vanguard except for the one at TIAA-CREF where my new 403b funds go now. I pay an average of .25% for all of those funds. If I paid the average of 2.11% for annuities and 1.38% for mutual funds, I would be paying $5000 to $8000 more a year than I am now paying. That is year in and year out. That is serious money! I hope that Kim (if she is still reading this) takes notice that cost matter. Best Wishes. Joe Yoour absolutely correct and that's not the argument. How long did it take you to accumulate the $350,000 to generate those kinds of fees? How did you start contributing to your 403b? How did you know where to put your money? What led you to Vanguard and the issue of costs? How long did this "Dawning" of knowledge take? The issue is that the new teacher who walks into my building today and immediately signs up for a "bad" 403b for 6% of their salary will pay the "shark" $21 for his first year's accumulation which we know is worth much more than 13k put in by a 40 y.o. teacher. Is that teacher going to do it? Should the handholding option be open to those who desire it? How many years will it take for this teacher to generate the $400 to visit with an independent planner? How long will it take for them to accumulate the assets where an independent planner will deign to look at them? We certainly need changes to our current system. But the changes need to accomodate a variety of investing styles. To mandate one vision of investing as the end all and be all is as wrong as our current morass.
  14. My response was the same as French Teachers. It would take more than 3 years at the full amount (13k) [it may be higher now] to generate enough assets to have the commission (1%) equal what I paid the RIA. Furthrmore, how many years would it take me to overcome that additional expense? The other major point is that who is going to talk that beginning teacher, overwhelmed with expenses, to invest in the 403b; particularly in the early years when they can really take advantage of compounding? Where are all those charts that show dollars invested at 25 are worth bu coo dollars invested at 50. This is what the salesmen do! Later, we can transfer to no-loads and run it ourselves but it takes time to acquire an investing education.
  15. 1. No. The 403b will be taxed at your regular rate when it comes out. The taxable account will only be charged 15% on capital gains and stock dividends. This is a major change last year that made many of the old metrics obsolete. 2. You are correct 3. Most 403b particpants are not nearly as lucky as you. Most have a high cost insurance wrapper around their funds - an annuity. Make sure that your Vanguard funds don't have an annuity wrapper. We have a 401k in addition to the 403b that has Vanguard but it's within an annuity wrapper. 4. Your guess is as good as mine. Does anybody else have any ideas on the 4th item? If the Bush math on the pensions is as fraudulent as on social security.......
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