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JR8
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Postby JR8 » Mon, 18 Feb 2013 3:11 am

http://boards.fool.co.uk/FAQ-the-purpos ... 48855.aspx

A DIY pension: The Motley Fool's 'High Yield Share Strategy'.

Very simple to follow (given even the vaguest waft of understanding and, an hour or so a week (if you wish!) just to keep an eye on things).

I looked on the US Fool site to find if they had a similar site and was surprised to find that they appear to have no equivalent.

In an case, the principles carry over exactly the same. So, if you take an hour of reading and consideration, that will set you up for a lifetime, in which ever market/s are most appropriate to you.

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Postby PNGMK » Thu, 10 Jul 2014 9:20 am

Thanks JR8.

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Postby JR8 » Thu, 10 Jul 2014 10:01 am

No problemo.
I was discussing it earlier in another topic, here, ftopic102033-30.html - just in case this is something you're currently researching.

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Postby zzm9980 » Thu, 10 Jul 2014 12:15 pm

I've been trying to figure out how to diversify my major holding (a single company stock) and all I came up with was to buy SPY:
https://www.google.com/finance?q=SPY

Probably not the worst move,but hardly the best. I'll definitely take the time to review the FAQ. thanks JR8.

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Postby Beeroclock » Thu, 10 Jul 2014 1:22 pm

zzm9980 wrote:I've been trying to figure out how to diversify my major holding (a single company stock) and all I came up with was to buy SPY:
https://www.google.com/finance?q=SPY

Probably not the worst move,but hardly the best. I'll definitely take the time to review the FAQ. thanks JR8.

Just a quick check on the respective factsheets, Vanguard VOO expense ratio 0.05% vs SPDR SPY at 0.095% (and a footnote indicating it will likely increase to 0.11% in Feb'15). Vanguard is second largest asset manager in the world after BlackRock, with SPDR in 4th position. I guess at this level the fees are small anyway, but I would opt for the VOO.

You really need to decide your risk appetite, how actively you want to be involved in managing the portfolio, and how much time/energy you actually have to do this (and to keep doing it for the long-term).

As is often quoted by the index tracker/ETF fans, Warren Buffett disclosed his Will instruction to leave 90% in a low cost S&P index fund and 10% in US Govt bonds, for his surviving wife. So even the world's greatest investor appears to endorse this passive approach if you do not have the interest/ discipline to DIY.

As a simple first step, without much thought at all, perhaps it would be wise to switch half your holdings into a S&P index ETF. This will still leave you with a large exposure to this one stock, so you will still be happy if it outperforms the market. But it also hedges your risk to this single company, if they should be hit by an unexpected scandal/problem/crisis, your equity portfolio will only be crunched by half as much.....

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Postby JR8 » Thu, 10 Jul 2014 9:25 pm

zzm9980 wrote:I've been trying to figure out how to diversify my major holding (a single company stock) and all I came up with was to buy SPY: https://www.google.com/finance?q=SPY
Probably not the worst move,but hardly the best. I'll definitely take the time to review the FAQ. thanks JR8.


I understand, many of my previous colleagues were thrilled to get their bonuses largely in discounted restricted stock options etc., and some of them built up significant holdings. Wretched for many when that Wall street bank went tits-up! I wrote off US$50k of sweated-for stock, earned over years, what a crying shame... Diversification is not just good, you HAVE to.

What I was mentioning, the HYP (High Yield Portfolio) takes some time to research and set up . Once it's up and running it's low sweat, and low fees. Some people want to stay hands on, others not, (I've spent a good part of today researching and trading, taking my positions back up from 16 to 22, as a result of selling a UK property). I understand this kind of 'direct approach' is not everyone's cup of tea, and fair enough. Horses for courses as they say. For me once I've got the positions I want in place, all I do is track the dividends, to ensure I'm paid what is due and on time. For alerts on that I have a 'shadow portfolio' on www.digitallook.com [free]. The latter alerts me to a div due, and the £/$ sum, then I just check at my broker to see it's been physically paid. Simple...

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Postby GSM8 » Thu, 10 Jul 2014 11:44 pm

earthfriendly wrote:I am going to research a little bit on Vanguard funds. There is a nice independent forum about the Vanguard offerings and some gurus propose a 3 fund portfolio. No spectacular return but more about staying the course, being realistic about the kind of return and not trying to time the market. I like Jack Bogle's philosophy.

"I can think of no one in the mutual fund industry with a greater combination of practical experience, inventive genius, literary ability, perseverence, kindness, modesty, desire to help others and impecible character."



http://www.bogleheads.org/forum/viewtop ... 10&t=88005

Vanguard, Fidelity and most other US investment companies have begun strictly enforcing a policy of not letting US citizens living abroad invest in mutual funds if they truthfully declare their foreign address. Of course, one could try giving a relative's US address but that would not be completely legal and raises exposure to various liabilities

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Postby zzm9980 » Fri, 11 Jul 2014 1:10 am

JR8 wrote:
zzm9980 wrote:I've been trying to figure out how to diversify my major holding (a single company stock) and all I came up with was to buy SPY: https://www.google.com/finance?q=SPY
Probably not the worst move,but hardly the best. I'll definitely take the time to review the FAQ. thanks JR8.


I understand, many of my previous colleagues were thrilled to get their bonuses largely in discounted restricted stock options etc., and some of them built up significant holdings. Wretched for many when that Wall street bank went tits-up! I wrote off US$50k of sweated-for stock, earned over years, what a crying shame... Diversification is not just good, you HAVE to.

What I was mentioning, the HYP (High Yield Portfolio) takes some time to research and set up . Once it's up and running it's low sweat, and low fees. Some people want to stay hands on, others not, (I've spent a good part of today researching and trading, taking my positions back up from 16 to 22, as a result of selling a UK property). I understand this kind of 'direct approach' is not everyone's cup of tea, and fair enough. Horses for courses as they say. For me once I've got the positions I want in place, all I do is track the dividends, to ensure I'm paid what is due and on time. For alerts on that I have a 'shadow portfolio' on www.digitallook.com [free]. The latter alerts me to a div due, and the £/$ sum, then I just check at my broker to see it's been physically paid. Simple...


Given this company's performance over the past number of years (it's value today is 9-10x its low ~6 years ago and pays one of the biggest dividends out there), most people do the same and leave everything in it. My plan is to diversify at least half of everything I've held long enough to reach long-term capital gains rates. I still will have enough to reap gains if the company continues to perform and get a good dividend.

I fully intend to read your HYP post and start research onto that. I just haven't had time... Soon I hope.

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Postby zzm9980 » Fri, 11 Jul 2014 1:23 am

Beeroclock wrote:
zzm9980 wrote:I've been trying to figure out how to diversify my major holding (a single company stock) and all I came up with was to buy SPY:
https://www.google.com/finance?q=SPY

Probably not the worst move,but hardly the best. I'll definitely take the time to review the FAQ. thanks JR8.

Just a quick check on the respective factsheets, Vanguard VOO expense ratio 0.05% vs SPDR SPY at 0.095% (and a footnote indicating it will likely increase to 0.11% in Feb'15). Vanguard is second largest asset manager in the world after BlackRock, with SPDR in 4th position. I guess at this level the fees are small anyway, but I would opt for the VOO.


Silly reason, but Vanguard annoyed me in the past. I had an issue with an account I was locked out of, followed by poor customer service. The fees are so small, Id rather not give it to them. Of course as I put more money into it (or something else) I'll probably get over it and re-evaluate. :)

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Postby PNGMK » Fri, 11 Jul 2014 8:13 am

zzm9980 wrote:
Beeroclock wrote:
zzm9980 wrote:I've been trying to figure out how to diversify my major holding (a single company stock) and all I came up with was to buy SPY:
https://www.google.com/finance?q=SPY

Probably not the worst move,but hardly the best. I'll definitely take the time to review the FAQ. thanks JR8.

Just a quick check on the respective factsheets, Vanguard VOO expense ratio 0.05% vs SPDR SPY at 0.095% (and a footnote indicating it will likely increase to 0.11% in Feb'15). Vanguard is second largest asset manager in the world after BlackRock, with SPDR in 4th position. I guess at this level the fees are small anyway, but I would opt for the VOO.


Silly reason, but Vanguard annoyed me in the past. I had an issue with an account I was locked out of, followed by poor customer service. The fees are so small, Id rather not give it to them. Of course as I put more money into it (or something else) I'll probably get over it and re-evaluate. :)


You can buy Vanguard on other stock plattforms - Saxo for example. VAS:xasx is for Vanguard ASX Index.

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zzm9980
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Postby zzm9980 » Fri, 11 Jul 2014 11:55 am

PNGMK wrote:
zzm9980 wrote:
Beeroclock wrote:
zzm9980 wrote:I've been trying to figure out how to diversify my major holding (a single company stock) and all I came up with was to buy SPY:
https://www.google.com/finance?q=SPY

Probably not the worst move,but hardly the best. I'll definitely take the time to review the FAQ. thanks JR8.

Just a quick check on the respective factsheets, Vanguard VOO expense ratio 0.05% vs SPDR SPY at 0.095% (and a footnote indicating it will likely increase to 0.11% in Feb'15). Vanguard is second largest asset manager in the world after BlackRock, with SPDR in 4th position. I guess at this level the fees are small anyway, but I would opt for the VOO.


Silly reason, but Vanguard annoyed me in the past. I had an issue with an account I was locked out of, followed by poor customer service. The fees are so small, Id rather not give it to them. Of course as I put more money into it (or something else) I'll probably get over it and re-evaluate. :)


You can buy Vanguard on other stock plattforms - Saxo for example. VAS:xasx is for Vanguard ASX Index.


Right, but since Vanguard manages the ETF they still make money off it if I buy it.

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Postby JR8 » Fri, 11 Jul 2014 12:12 pm

> What would Warren Buffett do?

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Postby zzm9980 » Fri, 11 Jul 2014 12:40 pm

JR8 wrote:> What would Warren Buffett do?


90% SP500, 10% Bonds. He already said as much :D

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Postby JR8 » Fri, 11 Jul 2014 12:48 pm

So why don't you do the same, rather than paying him fees so he can send his grandchildren to posh schools :wink:

-- Difference is he's obviously maintaining a 'physical' portfolio that tracks the S+P .... whereas most everyone else has to pay a fund manager to do that for them...

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Postby BillyB » Fri, 11 Jul 2014 2:09 pm

Another option if you want to follow Buffet is to mirror his Berkshire portfolio - you can find it online - simply buy all the stocks and weight them accordingly.

Easy!


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