September 18, 2014

Voting to Stay or Go

Voters in Scotland today are deciding whether to seek independence from the United Kingdom. The polls are too close to call, and results won't come in until tomorrow, but even if Scotland votes to separate, given its small size, I wouldn't expect this to disrupt the global economy. Whichever way the vote breaks, as Dan and I discussed in last month's issue, trying to trade around geopolitical events can be hazardous to your returns. Read More »

September 10, 2014

Vanguard's Million-Dollar Decision Is the Industry's Billion-Dollar Problem

Vanguard is facing a multi-million dollar decision. Its competitors are facing the same decision, but for them it’s measured in billions. The decision: To allow money fund yields to rise as the Fed begins raising interest rates, or to begin paying themselves back for years of self-imposed fee waivers. You can be sure that fund marketers at Vanguard and elsewhere are debating “Which comes first, the chicken or the egg?” right now. Read More »

September 2014 PDF

Turbulent Times

In this month's issue, Research Director Jeff DeMaso and I have put together a package of items that we hope will address some of the questions at the top of your mind. For instance, with the markets at all-time highs and near-zero interest rates, is cash trash or king? Get my take in this month's Funds Focus: Money Market Funds, along with several potential money market fund alternatives. But before you try to time the market, take a look at the powerful effect compounding can bring when you stick to a long-term investment plan through thick and thin. With little more than time and discipline, you can reach a tipping point when you make more money off your gains than your principal. That said, don't simply set and forget your portfolio. No one cares as much about your money as you do, and you should keep a close eye on your accounts to protect yourself from Vanguard service errors like those one investor told me he had to deal with this year. And while I do think Vanguard's push to consolidate mutual fund accounts into a brokerage umbrella makes sense, some headaches are bound to pop up. The better prepared you are, the easier they will be to deal with. Read More »

Most Recent Forum Threads
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Re: Slow or quick transition to model portfolio

WSM111 (09-21-2014) wrote: OP I took your original question to mean, should you cash in all of your existing holdings, and switch to one of Dan's model portfolios in one swoop, or do so gradually. When I first subscribed, I had a stock/bond ratio of 52/48. The portfolio I wanted to... Read More »


Re: Slow or quick transition to model portfolio

bruno (09-21-2014) wrote: ButWait, Nero What a great idea to use a balanced fund in your short term bucket. If you set up your withdrawals on a monthly basis, you will be dollar cost averaging OUT of the market. I am so accustomed to thinking about dollar cost averaging in the accumulation phase, that... Read More »


Re: Meta trends

butwait (09-21-2014) wrote: Chuck An exception: With Wall Street and Washington DC in bed together, we on Main Street need to be kept abreast of measures to confiscate even more of our money. ButWait Read More »

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"America's leading expert on investing in Vanguard funds"

Daniel P. Wiener is editor of The Independent Adviser for Vanguard Investors, a monthly newsletter that keeps abreast of recent developments at Vanguard, and the annual FFSA Independent Guide to the Vanguard Funds. Through his newsletter and guide book, Dan helps tens of thousands of Vanguard investors choose wisely among more than 100 Vanguard mutual funds. The Adviser is a five-time winner of the Newsletter Publishers Foundation's Editorial Excellence Award. View More »

Vanguard Funds Correlation
What's This?
Model Portfolio Performance
Models August YTD
Growth 4.1% 8.3%
Conservative Growth 3.7% 8.4%
Income 2.9% 8.1%
Growth Index 4.3% 7.8%
The average
Vanguard investor
2.6% 7.4%
Past Performance »