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Portfolio Allocation – Made Some Moves February 27, 2008

Posted by pf in Expenses and Savings, Portfolio Allocation.
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I finally acted on some of the portfolio allocations I had been considering the last couple of months. Of course, as is often the case, I wish I had gone ahead and made them sooner! In doing so, I actually made an unplanned allocation, which was to T Rowe Price Health Sciences (PRHSX). I had owned this fund in the past and dropped it at some point (do not recall the exact reasons, but suspect it was to allow me to allocate more to International funds). Longer term, I think being invested in the Health Sciences (ie drug makers, biotech, etc) is a sound investment (risks due universal healthcare, etc not withstanding).

Overall, my approach was to take some of the monies I had invested in my moderate allocation fund (PRWCX), which weathered the recent downturn fairly well, and push it into some other funds where I did not feel I had enough exposure.

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Maximize Returns on Cash Now! January 15, 2008

Posted by pf in Expenses and Savings.
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Recenly, the our Fed Chairman, Ben Bernanke had communicated very clearly that the Fed would cut interest rates further if the weak economy needs help:

“We stand ready to take substantive additional action as needed to support growth and to provide adequate insurance against downside risks, ” he said.

Many pundits are now suggesting that the market is gearing for as much as a half-point rate cut from the Fed at the end of January.  I strongly encourage everyone to take action now to maximize their returns on their excess cash NOW.  It’s very clear that interest rates are headed one way, and that’s down. 

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T Rowe Price versus Vanguard April 13, 2007

Posted by pf in Expenses and Savings, Portfolio Allocation.
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In my monthly net worth update for March, I had mentioned that I wanted to do some research on Vanguard to see if they might be a better “home” for my portfolio. Mainly, my interest was whether or not the lower expenses translated into better overall returns.

I must admit, I was not looking forward to this. The main reason is that I thought it would be very time consuming (I am a bit lazy). Also, (you aren’t going to believe this) I had this uneasy feeling that I would indeed find that it made more sense and would have to go through a whole process of switching my assets out of T Rowe Price to Vanguard. Isn’t that ridiculous?

So, why the “uneasy feeling”? Essentially, I have been investing with T Rowe Price for some years now and have become very familiar with their mutual fund products, tools, etc. Essentially, my unease was due to the fact I would have to spend time “learning the ropes” at Vanguard and leave my “comfort zone” at T Rowe Price. Yes, I realize this is silly. I suspect it has similar origins to why people don’t easily change their phone (not cell) or insurance company…you just don’t feel like messing with it. Also, of course, the inertia or lazy factor is ever present. Anyway, I overcame my irrational behavior and lazy tendencies and did it.

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