Bogleheads.org

I'm checking them out now and all appears good. To qualify for membership, one only has to have bought an appliance sometime during their lifetime.

Alain, I'm surprised at the bit of sarcasm at the end of your last 2 responses to my posts. I simply am stating why IMO I think your article is biased based on a small portfolio sample which you state was only aged a few months. You still haven't addressed why LC should mark to market their delinqu...

Please re-read the article. The point wasn't that I extrapolated my small sample size and lack of experience. It was that the reporting from lending club included the full value of principal and interest from delinquent loans. You stand by your statement that my piece was inaccurate yet fail to poi...

My point is the same as that as EmergDoc- the article seemed to be biased against LC because of Allan's inexperience of using the site. Admittedly LC is not for all investors, but can provide a good alternative investment while diversifying the risk of this type of lending across many loans (instea...

I wouldn't do it myself. Here's a recent blog from Allan Roth: http://www.cbsnews.com/8301-505123_162-57582124/the-lending-club-a-critical-review/ P.S. It would appear that I'm a better active manager than Mr. Roth. :) http://whitecoatinvestor.com/tag/lending-club/ I would certainly agree that, as ...

With all due respect to Allan Roth, I don't feel the slant of his article is accurate towards LC. If you say I'm inaccurate can you at least tell me what is either factually inaccurate or what you feel you don't agree with? If you re-read my piece, you'll see I say when the note is taken out of the...

But we can let experts, like the ones at Vanguard, decide "active" things like how to buy Facebook once it becomes public and part of the index. I agree that this is technically active but I also agree "so what?"

Admiral shares have the same expense ratio as ETFs but have several key advantages: no commission, no bid-ask spread, and no premium or discount paid. They are also easier to work with in that you can buy an exact amount. With an ETF, you must buy whole shares and the price is always changing so you...

Both banks were taken over and it took me about 15 minutes to get a check (they were local). If I have to worry about FDIC insurance, I will be out of all bonds, equities, and CD's and loaded up with gold and maybe wheat (and perhaps ammo). Good to hear about getting your money back quickly. I agre...

Interesting point, and it still strikes me as useful if this information was in prospectuses rather than just buried in the SAI. Even if it will be used to mislead investors? I agree that this is a debatable point. I agree with Edelman's point to disclose costs but challenging without providing a m...

Remember the downside of reporting brokerage fees. If a fund say had 0.20% in brokerage fees and had to put it as part of the expense ratio or the prospectus, it would have the incentive to arrange private transactions where the market-making firm would make its money on bid-ask spreads rather an br...

Sounds like Ric Edelman could be sued for slander. Anyway, his ignorant comments have not slowed down asset growth at Vanguard. He doesn't hide it, but let's look at his sites EMAP Fee Schedule: EMAP clients pay no commissions, trading costs, brokerage fees or other administrative charges. Instead,...

Alan, Lets say US is +5% real. That's probably a bit low, considering that the book-to-market ratio on US LC stocks is about 25% cheaper today (0.5) than it was 10 years ago (0.4) (YE 2012 vs YE 2002) and US TSM still managed to earn about 5.4% real over this period, but lets go with the lower #. W...

Incidentally, equally as silly is this comment at the end of the article: Any investor willing to pay one percent annually in total fees is likely giving away most of their real (after inflation) returns and is merely taking on all of the risk for little or none of the expected reward. This is true...

IMHO, it's just another way of saying that one should invest in tax-efficient funds - which implies using low-cost index/passive funds. Because there is no free lunch. RM There is certainly no free lunch (or I wouldn't be working for a living) and of course tax-efficient, along with LOW COST and DI...

This sounded nuts to me also at first. But maybe it makes sense. Thanks for giving it some thought grayfox and pkcrafter. This isn't a easy concept and takes some thought - simple and easy are too different things. It would be big if Wall Street could charge a lot for it. It is, however, based on s...

kenyan wrote:
I think you mean to say a less diversified and more expensive dividend fund.

Thanks - corrected now.

Maybe I'm missing something, but this "strategy" seems to boil down to liquidating a certain percentage of your equity holdings for income according to an arbitrary rule based on share buybacks. What is unique about that? It's not arbitrary. It's based on the total amount of cash companie...

I think you should have made that statement in your article. Those who may be less skeptical and knowledgeable than most on this forum could easily interpret you to be saying that this is a superior strategy to having a well diversified portfolio and making more conservative withdrawals. Okay - I c...

Great piece, Rick. My "second grader" equity portion of the portfolio is 2/3 Total US and 1/3 Total International while the Vanguard Target Date funds are 70% US and 30% international. Which will do better is anyone's guess and I doubt one will do better than the other. When it comes to as...

That may be so, but that doesn't mean that a 5% withdrawal rate will be sustainable over a long retirement. There is nothing in the article implying that the 5.08% is a safe withdrawal rate or even that it will increase with inflation. In fact, in 2009, companies drastically cut stock buy backs and...

Browser wrote:This sounds completely nuts.

Why? Details please.

silly article! he doesn't know what he is talking about. The fact that this product is not useful for him doesn't mean it is the case for everybody. Enlighten me since I don't know what I'm talking about. Why would you rather have a $100 gift card than: A $100 bill plus a five dollar bill plus a qu...

allsop wrote:What about withholding taxes on interests?

I gather the interest is ordinary income and the fund would be able to pass through a foreign tax credit for taxes paid in other countries. I don't know for sure exactly how it will work though.

This is very disappointing. I appreciate the post!

I interviewed Ken Volpert,Vanguard head of taxable bonds, and learned the hedging costs will about to between 0.05 and 0.10% annually. Thus the all in expenses should be about 0.25 to 0.30% annually for the Admiral and ETF share classes. http://www.cbsnews.com/8301-505123_162-57568306/new-internatio...

Rick Ferri wrote:Larry,

Bill Gross will get a "big call" right eventually through randomness allow, and of course, when that happens the media will not get enough of him.

Rick Ferri

I always say every guru has to be right eventually but have to admit that Harry Dent keeps proving me wrong.

Congrats to our own Rick Ferri for being chosen as one of 20 industry experts in a new section of the The Wall Street Journal on-line. He's in good company. Other experts include Burton Malkeil, Gus Sauter, Sheryl Garrett, Michele Kitches. http://online.wsj.com/public/page/journal-report-wealth.html...

Great piece you wrote Rick. I predict people will always want predictions no mater how much data shows these predictions are costly.

Hi Taylor. I so appreciate this. I've come to accept the hate mail and would also say I'd realize I was doing something wrong if it stopped. Happy Holidays and best wishes to you and Pat for a wonderful 2013!

second-guesser wrote:John Bogle has helped alleviate the stress of investing...

S-G

This is great! Thanks so much!

Thanks Rick - I appreciate it. Taylor - you are too kind but thank you. I've got to confess that I get a fair amount of hate mail - comes in email, voice-mail, and even snail mail. The most irate tends to be from the insurance side. Some people tell me I enjoy the hate mail but i don't. I understand...

Thanks a million, Rick! Happy 2013!

Why not include the entire panel from Bogleheads 11? I think it is important to note that not screwing your clients may be a viable business model. (Yes, I know. There is a nicer way to say that.) Jack created Vanguard and his philosophy. People like Ferri, Schultheis, Bernstein, Benz, Roth, ... ar...

Rick Ferri wrote:Does this include advisers? My business would not exist if it were not for John Bogle.

Rick Ferri

I'd be honored to have a submission from you, Rick! Thanks.

I appreciate the two great responses. I'd love to have more on what Jack Bogle has done for you if willing. Either post or send to me at allan_roth@hotmail.com. Between 200 - 300 words.

Thanks so much.

Wiley is going to publish a book on the Jack Bogle legacy, coordinated by The Institute for the Fiduciary Standard. I’m assisting with a small part on what Jack Bogle has done for people. I’m going to characterize money as a means to an end. Money is stored energy to allow us the freedom to do whate...

December's Money magazine has a pictorial of 40 people "MONEY has saluted over the past year for "improving others' finances..." The list includes Jack Bogle, Laura Dogu, Taylor Larimore, and Mel Lindauer. Congratulations for some well-deserved recognition for helping countless consum...

As a financial planner, I think this Wiki posting on the subject is outstanding!

http://www.bogleheads.org/wiki/Financial_planning

Mel Lindauer has a terrific new Forbes piece that reviews Jack Bogle's latest and tenth book. Naturally, I loved the book too!

http://www.forbes.com/sites/theboglehea ... eculation/

Tracerider wrote:I am looking forward to this resulting piece. I log into cbsnews.com for The Irrational Investor's advice column regularly, I don't want to miss a single one. Thanks Allan for all of your helpful work!

Thanks so much for the kind words. This one will be for another publication, however.

This is all really great stuff. I so appreciate it.

Taylor Larimore wrote:Allan:
When your article is published, please return with a link for us to read it.
Taylor

Will do Taylor - this one will take a few months though. Thanks.

gwrvmd wrote:Anything with the following words in the name:
Structured
Managed
Deferred
Derivative
Participation
Collateralized
Alternative
Guarenteed..............Gordon

Wow - this really captures it!

I'm going to write a piece some of the worst investments - typically easy to get into and hard to get out of. I've got my own list but wanted to enlist your thoughts on what investments you'd want to warn seniors to avoid.

Thanks!

In reading Mr. Roths article, he says that Dr. Bernstein contends that when one reachs 20 to 25 times their needs, after Social Security, that they have "won the game" and should take risk off the table. I thought the general consensus was 30 times ones need . There is , in my opinion, a ...

...and rightly so. http://www.rickferri.com/blog/strategy/boiler-room-tactics-for-fee-only-advisors/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+RickFerri+%28Rick+Ferri+Blog%29 I think this proves that, if someone has enough money, they can get a study done to show anything th...

Rick Ferri is quoted in today's Wall Street Journal noting the layers of fees one can have in an ETF model portfolio. Great comments Rick!

http://online.wsj.com/article/SB1000142 ... nance_PF14

Nice piece and well deserved!

My point instead is that I don't think this is an appropriate Forum to endorse RIA firms. Whether it is Ricks, yours, or any one else that is out there. The only way I could see it being acceptable is if someone actually has money invested with an RIA firm and they can specifically talk about their...