Bob Brinker Free Discussion Site 59,820+

Top 859. Dec 24, 2005 4:21 AM

» SteveT - Re: Re: asset allocation

In response to Re: asset allocation posted by allancoleman:

allan I agree with you about asset allocation being the single most important factor in determining investing success. As to the subject of this thread, I think brinker knows that too but he has newsletters to sell. bob learned long ago in the entertainment business you have to be different in order to stand out from the crowd. His gimmick involves “market timing”. He puts all his focus and effort into that and trying to convince others he can do it successfully and consistently. Heck if he had decided to become a surgeon he would most likely promote himself as the only doctor that can successfully perform an appendix transplant. The reason no one else is doing it is because it is not worth doing. But that wouldn’t prevent old bob from patting himself on the back.

-- posted by SteveT

Top 860. Dec 24, 2005 9:53 AM

» bob90245 - Re: Re: asset allocation

In response to Re: asset allocation posted by allancoleman:

Thanks for the update, Allan. And congratulations on your good year! Keep us posted on your next entry into the market. 2006 will be an "off-presidential election year." So history is on your side for a better entry point.

-- posted by bob90245

Top 861. Dec 24, 2005 12:29 PM

» allancoleman - Re: asset allocation

In response to Re: Re: asset allocation posted by bob90245:

10-4 bob . feel letting people know when you make the move removes all thought about weither someone is making up their numbers or not . sometimes it's easy to say later that one got out or in at the ' exact ' right time . smile

my performance thus far year to date are :

9.05% in my Invested portfolio

9.17% in my Total portfolio , which counts my personally owned real estate using conservative tax assessed valuations and my bucket number # one that counts my personal living expenses year to date .

my numbers at year's end aren't likely to stray far from the above numbers cause getting out of the market pretty much guarantees my keeping my gains year to date .

as for weither next year is good or not , it really won't effect me much as my critical mass is already well above my needs . althought i would like to see others less fortunate do well too .

also thanks to you too bob in assisting me with your input on your feelings about the market . any and all input / data is welcome . i always appreciate your respect of other investing methods here , like my own brand of ' market timing ' , even though they don't agree with yours . hope your holiday is safe .

-- posted by allancoleman

Top 862. Dec 24, 2005 9:27 PM

» Happy_2 - Re: Re: asset allocation

In response to Re: asset allocation posted by allancoleman:
Were these changes made in tax deferred accounts?

-- posted by Happy_2

Top 863. Dec 24, 2005 10:09 PM

» allancoleman - Re: asset allocation

In response to Re: Re: asset allocation posted by Happy_2:

yes . i'm fortunate in that with one click of the mouse in one single account , i can change my asset allocation that much . it took alittle bit of planning and thought to be able to do so .

-- posted by allancoleman

Top 864. Dec 24, 2005 10:15 PM

» Happy_2 - Re: Re: asset allocation

In response to Re: asset allocation posted by allancoleman:
Well, I can change my asset allocation with one click of a mouse too, but I would pay taxes BIG time.

-- posted by Happy_2

Top 865. Dec 24, 2005 10:36 PM

» allancoleman - Re: asset allocation

In response to Re: Re: asset allocation posted by Happy_2:

. sad .

-- posted by allancoleman

Top 866. Dec 25, 2005 7:09 AM

» dirwin00 - Re: Re: asset allocation

In response to Re: asset allocation posted by Kirk:

i would recommend Unconventional Success .... by David F Swensen. he makes a very strong case for keeping a fixed percentage in each asset allocation and rebalancing. he uses index funds and pretty much trashes the mutual fund industry as J Bogle does. he recommends 20% real estate, 20% inflation protected securities, 20% international and 40% domestic. it's very good reading.

another is What Wall Street Doesn't Want You To Know ... by Larry Swedroe. reiterates by Swenson says about the mutual fund industry.

another is Bloood In The Streets by ? Galisprano (sp) and Bull by Maggie Mahar (sp). both of this deal with the internet craze in the late 90's, henry bloggett, mary meeker, merrill lynch, etc. it's good to remind yourself that these people are really out for YOUR money.

i just finished 4 Pillars of Wisdom by William Bernstien. good book. if after reading the above books you still want to use active managers go ahead.

on the MSN Money website you can compare the performance of any mutual fund versus the vanguard index fund. i was amazed at how poorly some of these "outstanding" portfolio managers have under preformed their index.

there are some that do, but most of them are closed to new investors. when taxes are taken in to account then the performance is truly dismal.

also, scott burns has a couch potatoe portolio of 50% total stock and 50% total bond index. it has done very well. go to www.scottburns.com for more.

if i had to do things over i would have used index funds for all of my taxable stock funds.

note how the media is giving coverage to B Millar for 14 years of outperforming the S&P. why isn't this commom place?

-- posted by dirwin00

Top 867. Dec 25, 2005 11:30 PM

» Happy_2 - Re: Re: asset allocation

In response to Re: asset allocation posted by allancoleman:
Allan, no reason to frown.
Unlike a tax deferred account,my heirs will inherit all my assets with a full step up in basis. In other words, if I live off the dividends, no one will ever have to pay tax on the capital gains. To date, over the past 23 years, I have a gain of about 1300% in the Vanguard SP500 fund.

-- posted by Happy_2