Comments on: Model Portfolios Built with ETFs (I) — Couch Potato Portfolio http://www.thesunsfinancialdiary.com/investing/model-portfolios-built-with-etfs-i-couch-potato-portfolio/ Sat, 21 Nov 2009 20:14:32 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Model Portfolios Built with ETFs (III) - All About Asset Allocation - The Sun’s Financial Diary - Accumulating wealth is like building The Great Wall, one brick at a time http://www.thesunsfinancialdiary.com/investing/model-portfolios-built-with-etfs-i-couch-potato-portfolio/comment-page-1/#comment-4070 Model Portfolios Built with ETFs (III) - All About Asset Allocation - The Sun’s Financial Diary - Accumulating wealth is like building The Great Wall, one brick at a time Tue, 13 Mar 2007 17:43:50 +0000 http://www.thesunsfinancialdiary.com/2007/02/16/model-portfolios-built-with-etfs-i-couch-potato-portfolio/#comment-4070 [...] Model Portfolios Built with ETFs series. In the first two parts, I discussed two model portfolios, the Couch Potato Portfolio and the Bogel Head Portfolio, and considered possible choices to build these portfolios with ETFs [...] [...] Model Portfolios Built with ETFs series. In the first two parts, I discussed two model portfolios, the Couch Potato Portfolio and the Bogel Head Portfolio, and considered possible choices to build these portfolios with ETFs [...]

]]> By: Model Portfolios Built with ETFs (II) — The Boglehead’s Guide To Investing - The Sun’s Financial Diary - Accumulating wealth is like building The Great Wall, one brick at a time http://www.thesunsfinancialdiary.com/investing/model-portfolios-built-with-etfs-i-couch-potato-portfolio/comment-page-1/#comment-3093 Model Portfolios Built with ETFs (II) — The Boglehead’s Guide To Investing - The Sun’s Financial Diary - Accumulating wealth is like building The Great Wall, one brick at a time Wed, 21 Feb 2007 16:17:38 +0000 http://www.thesunsfinancialdiary.com/2007/02/16/model-portfolios-built-with-etfs-i-couch-potato-portfolio/#comment-3093 [...] Model Portfolios into all-ETF portfolios. In this part (the first part can be found here), I looked at the four example portfolios in The Bogleheads’ Guide to Investing [Amazon.com [...] [...] Model Portfolios into all-ETF portfolios. In this part (the first part can be found here), I looked at the four example portfolios in The Bogleheads’ Guide to Investing [Amazon.com [...]

]]> By: MossySF http://www.thesunsfinancialdiary.com/investing/model-portfolios-built-with-etfs-i-couch-potato-portfolio/comment-page-1/#comment-2714 MossySF Sat, 17 Feb 2007 17:27:07 +0000 http://www.thesunsfinancialdiary.com/2007/02/16/model-portfolios-built-with-etfs-i-couch-potato-portfolio/#comment-2714 We are currently at a point of inverse yield curves where online savings accounts/CDs return higher interest than bonds. This is an anomaly. Here are the numbers for the past 6 years using Vanguard's Prime Money Market versus Vangard's TIPS fund as proxies for average yields. YEAR CDs TIPS ---- ----- ----- 2006 4.88% 3.55% 2005 3.01% 5.44% 2004 1.11% 4.79% 2003 0.90% 3.86% 2002 1.65% 4.55% 2001 4.17% 4.32% In addition, TIPs can have capital gains/losses due to interest rate changes. Factor that in and you have: YEAR CDs TIPS ---- ----- ----- 2006 4.88% 0.43% 2005 3.01% 2.59% 2004 1.11% 8.27% 2003 0.90% 8.00% 2002 1.65% 16.61% 2001 4.17% 7.61% So the two extra benefits of TIPS is interest that increases with inflation and capital appreciation during deflation (federal reserve decreases interest rates to spur growth). We are currently at a point of inverse yield curves where online savings accounts/CDs return higher interest than bonds. This is an anomaly. Here are the numbers for the past 6 years using Vanguard’s Prime Money Market versus Vangard’s TIPS fund as proxies for average yields.

YEAR CDs TIPS
—- —– —–
2006 4.88% 3.55%
2005 3.01% 5.44%
2004 1.11% 4.79%
2003 0.90% 3.86%
2002 1.65% 4.55%
2001 4.17% 4.32%

In addition, TIPs can have capital gains/losses due to interest rate changes. Factor that in and you have:

YEAR CDs TIPS
—- —– —–
2006 4.88% 0.43%
2005 3.01% 2.59%
2004 1.11% 8.27%
2003 0.90% 8.00%
2002 1.65% 16.61%
2001 4.17% 7.61%

So the two extra benefits of TIPS is interest that increases with inflation and capital appreciation during deflation (federal reserve decreases interest rates to spur growth).

]]> By: Tab http://www.thesunsfinancialdiary.com/investing/model-portfolios-built-with-etfs-i-couch-potato-portfolio/comment-page-1/#comment-2645 Tab Sat, 17 Feb 2007 01:39:16 +0000 http://www.thesunsfinancialdiary.com/2007/02/16/model-portfolios-built-with-etfs-i-couch-potato-portfolio/#comment-2645 Opps, sorry Sun, hit the wrong key when spelling your name and didn't spell check. Opps, sorry Sun, hit the wrong key when spelling your name and didn’t spell check.

]]> By: Tab http://www.thesunsfinancialdiary.com/investing/model-portfolios-built-with-etfs-i-couch-potato-portfolio/comment-page-1/#comment-2637 Tab Sat, 17 Feb 2007 00:03:33 +0000 http://www.thesunsfinancialdiary.com/2007/02/16/model-portfolios-built-with-etfs-i-couch-potato-portfolio/#comment-2637 Sub, I am not even close to being very knowledgeable about investing although I have about 14 different funds, but I have always wondered why anyone would put a low earning fund into their portfolio like 'TIP' above when you can earn a consistent 5+% in a CD that is safe and insured. What gives with that? I am sure I am missing something but can't figure what it would be. Sub, I am not even close to being very knowledgeable about investing although I have about 14 different funds, but I have always wondered why anyone would put a low earning fund into their portfolio like ‘TIP’ above when you can earn a consistent 5+% in a CD that is safe and insured. What gives with that? I am sure I am missing something but can’t figure what it would be.

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