Asset Allocation Investing using US ETF, Basic approach to asset Allocation ETF
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 Nov 28 2014, 04:31 PM
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Senior Member
1,820 posts Joined: May 2010 From: Kuala Lumpur  
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QUOTE(inchvbeam @ Nov 26 2014, 06:46 PM) Hi may I know why would u be vested in only US bonds? I thought for the bonds portion, we should be tilting the allocation to home country? This depends where "home country" is I've been in Malaysia for 4-5 years, will I stay here for another 5-10 years, will I retire here? I have no idea. As such I mix it up by holding different currencies and adjust once I'm closer to retirement age (some time away, unfortunately!) |
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Nov 28 2014, 09:24 PM
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Elite
15,855 posts Joined: Jan 2003
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QUOTE(the99percent1 @ Nov 28 2014, 12:01 PM) » Click to show Spoiler - click again to hide... « You enter the stock market at its HIGHEST. Lets say your bond level starts to drops and so u top up. But then quickly, your stock position also starts to drop.. » Click to show Spoiler - click again to hide... « I DO NO THINK that you get IT. Let's say that the ratio is 50/50 and you are putting $1,000 into your asset allocation every month. How could ANYTHING that you said will happen?? Show us... <Asset location does not make sense. At what point do you adjust your ratios? One day? a week? a month? >> If you READ the whole thread, you will know that it is either A) Once a year or B) Based on the 5/25 re-balancing rule. << A better way of doing this is to time your ETF investment at a good entry point and leave it 100% as Stock.. When markets begin to shift, then switch some to Bonds or buy up cheaper ETFS..>> This is BASED a BIG ASSUMPTION. A person know when to TIME the MARKET. 99+% of the people DO NOT KNOW. MAJORITY of the fund managers DO NOT KNOW either. Dreamer This post has been edited by dreamer101: Nov 28 2014, 09:24 PM |
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Dec 1 2014, 08:36 PM
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Junior Member
9 posts Joined: Jun 2010
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QUOTE(dreamer101 @ Nov 28 2014, 10:24 PM) the99percent1, may i know wad does dreamer101 thinks abt investment in bond funds?I DO NO THINK that you get IT. Let's say that the ratio is 50/50 and you are putting $1,000 into your asset allocation every month. How could ANYTHING that you said will happen?? Show us... <Asset location does not make sense. At what point do you adjust your ratios? One day? a week? a month? >> If you READ the whole thread, you will know that it is either A) Once a year or B) Based on the 5/25 re-balancing rule. << A better way of doing this is to time your ETF investment at a good entry point and leave it 100% as Stock.. When markets begin to shift, then switch some to Bonds or buy up cheaper ETFS..>> This is BASED a BIG ASSUMPTION. A person know when to TIME the MARKET. 99+% of the people DO NOT KNOW. MAJORITY of the fund managers DO NOT KNOW either. Dreamer |
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Dec 1 2014, 09:51 PM
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Elite
15,855 posts Joined: Jan 2003
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QUOTE(inchvbeam @ Dec 1 2014, 08:36 PM) may i know wad does dreamer101 thinks abt investment in bond funds? inchvbeam,I use BND / VBTLX / AGG as part of Asset Allocation. Dreamer |
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Dec 1 2014, 11:13 PM
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All Stars
11,954 posts Joined: May 2007  
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US red down today
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Dec 2 2014, 05:16 AM
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Elite
15,855 posts Joined: Jan 2003
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QUOTE(MNet @ Dec 1 2014, 11:13 PM) US red down today MNet,And, WHY does that matters?? If STOCK and / or BOND do not go down in price, how do investor "BUY LOW SELL HIGH"?? Aka, make money?? By the way, as per my asset allocation model, I had been buying bond for the last few months. Dreamer |
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Dec 2 2014, 10:05 PM
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Junior Member
9 posts Joined: Jun 2010
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wow Dreamer, u r a US resident?
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Dec 2 2014, 10:45 PM
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All Stars
11,954 posts Joined: May 2007
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i have been shorting equities since last month
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Dec 23 2014, 12:56 AM
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Junior Member
68 posts Joined: May 2011
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QUOTE(dreamer101 @ Jun 9 2013, 03:25 PM) Folks, Glad to see another Boglehead in here. I'm surprised people don't take this approach. The costs of the MF/UT's in Malaysia are ridiculous. 5.75% front-load fees? 1.5 - 2% expense ratios? LOL f*** that shit! Vanguard/Fidelity/Schwab all the way!In this thread, I provide the basic step to step approach on how to use US ETF to do asset Asset Allocation investing. The ETF to be used in this illustration are VT and BND. If a person is convinced that they can time the market to buy and sell, this is not the approach that you want. This thread is for people that want a simple low maintenance approach to investing. Dreamer Personally, I felt that if I were in the situation of many working Malaysians where they are restricted to the high cost UT's from crap places like Public Mutual or OSK, I'd rather take 3 months to read up intensely and buy individual stocks to build my own index fund. |
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Dec 23 2014, 12:58 AM
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Elite
15,855 posts Joined: Jan 2003
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QUOTE(dylanw @ Dec 23 2014, 12:56 AM) Glad to see another Boglehead in here. I'm surprised people don't take this approach. The costs of the MF/UT's in Malaysia are ridiculous. 5.75% front-load fees? 1.5 - 2% expense ratios? LOL f*** that shit! Vanguard/Fidelity/Schwab all the way! dylanw,Personally, I felt that if I were in the situation of many working Malaysians where they are restricted to the high cost UT's from crap places like Public Mutual or OSK, I'd rather take 3 months to read up intensely and buy individual stocks to build my own index fund. They just need to buy ETF. It is equivalent to index fund. I had explained on this thread. Dreamer |
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Dec 23 2014, 01:08 AM
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Junior Member
68 posts Joined: May 2011
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QUOTE(dreamer101 @ Dec 22 2014, 09:58 AM) dylanw, Yup, I read that. Sound advice. Could you explain how to set up a brokerage account in SG/HK? And is there a currency requirement (like only purchases in SGP/HKG)? I would imagine that they restrict sign-ups to people with a SG/HK address.They just need to buy ETF. It is equivalent to index fund. I had explained on this thread. Dreamer This post has been edited by dylanw: Dec 23 2014, 01:09 AM |
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Dec 23 2014, 01:35 AM
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Elite
15,855 posts Joined: Jan 2003
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QUOTE(dylanw @ Dec 23 2014, 01:08 AM) Yup, I read that. Sound advice. Could you explain how to set up a brokerage account in SG/HK? And is there a currency requirement (like only purchases in SGP/HKG)? I would imagine that they restrict sign-ups to people with a SG/HK address. dylanw,I do not know. But, I believe someone had done this in this forum. Just post a new thread and ask. Dreamer |
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Dec 27 2014, 10:08 PM
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All Stars
11,954 posts Joined: May 2007
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monthly paid out divided etf ok?
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Dec 27 2014, 10:08 PM
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All Stars
11,954 posts Joined: May 2007
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monthly paid out divided etf ok?
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Jan 13 2015, 11:41 PM
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Elite
15,855 posts Joined: Jan 2003
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http://www.capitalspectator.com/major-asse...ormance-review/
http://www.capitalspectator.com/wp-content...i.03feb2014.gif  Folks, Check out above URL... Asset allocation works... In any point of time, some asset class will do well while other don't. If you keep a FIXED asset allocation ratio, you will "Buy Low, Sell High". Dreamer |
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Jan 14 2015, 09:54 AM
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Senior Member
4,081 posts Joined: Aug 2005 
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guys, its actually pretty easy to invest in oversea. doesnt need to use our local bank to invest. jus use wire transfer / telegraphic transfer to oversea investment bank / broker. jus make sure its regulated.
jus need to fill in few forms n photocopy utilities bill n ID n etc. but usualy there is certain minimum capital needed in order to open acc. |
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Jan 14 2015, 10:10 AM
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Senior Member
16,872 posts Joined: Jun 2011
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In the mood to prove some old man wrong
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Jan 14 2015, 10:33 PM
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Elite
5,608 posts Joined: May 2011 From: Here, There, Everywhere
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QUOTE(low yat 82 @ Jan 14 2015, 09:54 AM) guys, its actually pretty easy to invest in oversea. doesnt need to use our local bank to invest. jus use wire transfer / telegraphic transfer to oversea investment bank / broker. jus make sure its regulated. true jus need to fill in few forms n photocopy utilities bill n ID n etc. but usualy there is certain minimum capital needed in order to open acc. AND also make sure your FINAL (unsure when, but sure to happen) exit plans are in place - imagine one's beneficiaries getting hit by estate / death taxes which wipes out nearly half of the value held in a particular country  |
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Jan 15 2015, 12:53 AM
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Elite
15,855 posts Joined: Jan 2003
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QUOTE(wongmunkeong @ Jan 14 2015, 10:33 PM) true wongmunkeong,AND also make sure your FINAL (unsure when, but sure to happen) exit plans are in place - imagine one's beneficiaries getting hit by estate / death taxes which wipes out nearly half of the value held in a particular country Come on.... As long as the beneficiaries has the user id and password, he / she can wire / transfer the money back to some where else before declaring someone is death. Dreamer |
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Jan 15 2015, 08:38 AM
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Elite
5,608 posts Joined: May 2011 From: Here, There, Everywhere
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QUOTE(dreamer101 @ Jan 15 2015, 12:53 AM) wongmunkeong, True.. however, technically U do know that's illegal right? Come on.... As long as the beneficiaries has the user id and password, he / she can wire / transfer the money back to some where else before declaring someone is death. Dreamer And the world is getting more connected every day (information/data linkages) right? Anyhow, IMHO, best to have "proper" exit plans where possible - if peanuts ok lar but if substantial amount, say 20% to 25% of net worth... |
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