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Re: First I Bond Purchase

Carl53 wrote:With 5 year tips likely to go for north of 0.3% real and Ibonds at 0.0% real, I decided to go with todays tips auction.


You are really comparing apples to oranges. Is this for a taxable account?
by Call_Me_Op
Thu Dec 18, 2014 10:53 am
 
Forum: Investing - Theory, News & General
Topic: First I Bond Purchase
Replies: 10
Views: 1200

Re: How much personal umbrella insurance should you get?

I am looking to bump up my umbrella policy (personal excess liability) coverage. Is there a simple to way to estimate the required amount of coverage? Somewhere I read it should be your net worth plus the present value of your future earnings. It is not clear if the retirement accounts should be in...
by Call_Me_Op
Thu Dec 18, 2014 6:40 am
 
Forum: Personal Finance (Not Investing)
Topic: How much personal umbrella insurance should you get?
Replies: 3
Views: 622

Re: Umbrella Liability Insurance - Need it or not?

A coworker of mine retired with a $1M umbrella policy. He was sued and lost $2.8M in the lawsuit which was exactly equal to his total liquid net worth + the umbrella policy. It appears that the lawyers from the other side knew exactly how much to go after. Maybe that's where the guideline of 2X (at...
by Call_Me_Op
Mon Dec 15, 2014 5:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Umbrella Liability Insurance - Need it or not?
Replies: 49
Views: 4335

Re: Split Assets Between Two Firms?

But help me understand a little better pls: What risk(s) does this help mitigate? Theft from your account. It reduces your max loss from any incident but actually increases the chance of a loss happening (not that it's high enough for me to worry about). Yes, but twice a small number is still a sma...
by Call_Me_Op
Sat Dec 13, 2014 7:41 am
 
Forum: Investing - Help with Personal Investments
Topic: Split Assets Between Two Firms?
Replies: 28
Views: 2420

Re: Umbrella Liability Insurance - Need it or not?

However, what if you weren't liable, but were being sued anyway? Some idiot screeches to a stop in the middle of the Interstate for no reason, and there's a six-car pileup. Your car is number 4 in the pile. The different ambulance chasers representing drivers 1, 2 and 3 research all the drivers and...
by Call_Me_Op
Sat Dec 13, 2014 7:31 am
 
Forum: Personal Finance (Not Investing)
Topic: Umbrella Liability Insurance - Need it or not?
Replies: 49
Views: 4335

Re: Split Assets Between Two Firms?

Gaston wrote: But help me understand a little better pls: What risk(s) does this help mitigate?


Theft from your account.
by Call_Me_Op
Thu Dec 11, 2014 5:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Split Assets Between Two Firms?
Replies: 28
Views: 2420

Re: Why Vanguard Total Stock Market isn’t the best fund

Json wrote:As mentioned in other posts he seems to have a 'bit' of a conflict with regards to his involvement with DFA advisor. However I was under the impression that TSM was truly a total market fund and he argues it isn't.


He argues no such thing.
by Call_Me_Op
Thu Dec 11, 2014 12:11 pm
 
Forum: Investing - Theory, News & General
Topic: 10 Reasons why Merriman dislikes Total Stock Mkt
Replies: 155
Views: 17367

Re: 'Might Jack Bogle Be Wrong for a Change?' [Int'l holding

For me, it's a no-brainer because I am risk averse. Spreading my equity investments across many countries eliminates the possibility that my portfolio will be devastated if the stock of a single country remains underwater for decades.
by Call_Me_Op
Thu Dec 11, 2014 8:46 am
 
Forum: Investing - Theory, News & General
Topic: 'Might Jack Bogle Be Wrong for a Change?' [Int'l holdings]
Replies: 49
Views: 4156

Re: Is the Boglehead Consensus on Long Bonds still Negative?

Why would anything have changed? I don't know. Maybe treasuries look safe in an environment in which one is hesitant to invest in bond funds (many threads on that). And, while I don't care about the yield, maybe the yield on long bonds looks attractive to some considering the yields of shorter-term...
by Call_Me_Op
Thu Dec 11, 2014 7:31 am
 
Forum: Investing - Theory, News & General
Topic: Is the Boglehead Consensus on Long Bonds still Negative?
Replies: 29
Views: 3137

Re: "Why Retirement at 65 is a Fairy Tale"

I don't buy any of this. My parents (and their parents) retired comfortably on small pensions and small Social Security checks. The amount of money needed to retire and live reasonably is too often exaggerated.
by Call_Me_Op
Wed Dec 10, 2014 1:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: "Why Retirement at 65 is a Fairy Tale"
Replies: 117
Views: 11461

Re: Fundamental Theory of Index Investing

I am puzzled by one particular aspect of Index investing. Active fund managers, and also individual stock buyers, will bid up, or sell down, the shares of a company’s stock based upon its performance, and also based upon its future prospects. This concept has been the backbone of the equities marke...
by Call_Me_Op
Tue Dec 09, 2014 10:52 am
 
Forum: Investing - Theory, News & General
Topic: Fundamental Theory of Index Investing
Replies: 16
Views: 1372

Re: Is the Boglehead Consensus on Long Bonds still Negative?

Will future editions of The Bogleheads Guide to Investing still advise against holding long bonds, or have things changed? Obviously, long-term treasury bonds have done well this year, but gold also did well for ten years, quite recently, and of course performance alone is not a reason to hold an i...
by Call_Me_Op
Tue Dec 09, 2014 10:50 am
 
Forum: Investing - Theory, News & General
Topic: Is the Boglehead Consensus on Long Bonds still Negative?
Replies: 29
Views: 3137

Re: To Tilt or Not To Tilt, that's the question

Here is a different way of looking at things. How about considering those who primarily invest in U.S. are TILTED or those who invest in TSM are TILTED. TSM is 70% large cap and I would say that is a pretty significant bet on large cap. It's not considered a bet, because the market is dominated by ...
by Call_Me_Op
Tue Dec 09, 2014 10:18 am
 
Forum: Investing - Theory, News & General
Topic: To Tilt or Not To Tilt, that's the question
Replies: 52
Views: 2387

Re: To Tilt or Not To Tilt, that's the question

I would think that the difference is tax efficiency is relatively minor. I assume we are referring to the fact that value stocks have slightly more of their return in dividend form. This is a small effect.
by Call_Me_Op
Tue Dec 09, 2014 9:17 am
 
Forum: Investing - Theory, News & General
Topic: To Tilt or Not To Tilt, that's the question
Replies: 52
Views: 2387

Re: To Tilt or Not To Tilt, that's the question

We argue endlessly about this. There is no definitive conclusion, nor can there be. We know what happened in the past - but do not know what will happen in the future. Investing is not a hard science, like physics.
by Call_Me_Op
Tue Dec 09, 2014 8:40 am
 
Forum: Investing - Theory, News & General
Topic: To Tilt or Not To Tilt, that's the question
Replies: 52
Views: 2387

Re: Suspicious House Odor

I had an odor like that in my basement last year. It persisted for about 2 months.
by Call_Me_Op
Tue Dec 09, 2014 8:11 am
 
Forum: Personal Consumer Issues
Topic: Suspicious House Odor
Replies: 21
Views: 2464

Re: How to Think About Risk in Retirement - Bernstein

I like the approach of holding a fixed AA and spending a fixed percentage of the portfolio each year.
by Call_Me_Op
Mon Dec 08, 2014 8:33 am
 
Forum: Investing - Theory, News & General
Topic: How to Think About Risk in Retirement - Bernstein
Replies: 64
Views: 7695

Re: Bogle Advises Investing No More Than 20% Outside U.S.

I see the problem with international investing as one where the lack of transparency and rule of law interfere with the ability to participate in many of the markets outside the US with any degree of comfort. China for example is the largest economy in the world now, yet investing in China is a ver...
by Call_Me_Op
Sun Dec 07, 2014 9:06 am
 
Forum: Investing - Theory, News & General
Topic: Bogle Advises Investing No More Than 20% Outside U.S.
Replies: 106
Views: 11211

Re: How did brokered CDs fare in the Great Recession?

There's no reason you can't own both, which gives you multiple options and possibilities. In the worst case scenario, what are the odds you'll not be able to get decent prices for the CD early in the crisis, then burn through all the T's before the next CD matures? That's an end of the world scenar...
by Call_Me_Op
Sun Dec 07, 2014 8:50 am
 
Forum: Investing - Theory, News & General
Topic: How did brokered CDs fare in the Great Recession?
Replies: 11
Views: 1218

Re: I'm scared - online hacking

In my opinion, the number one thing you can do to reduce the possibility of a devastating loss is to diversify custodians. This is, of course, not fool proof but I think goes a long way. You can also put a lock on one or more accounts so that nobody (not even you) can transfer money out online.
by Call_Me_Op
Sun Dec 07, 2014 8:45 am
 
Forum: Personal Consumer Issues
Topic: I'm scared - online hacking
Replies: 44
Views: 4842

Re: Why do target date funds get so bond heavy?

In addition to Richard's comment, you need to consider the behavioral (or emotional) aspect of investing. How would you feel as an 80 year-old with no human capital left, with 80% in equities during a replay of 2008-2009 - and not knowing if or when the losses will stop? Will you be able to enjoy li...
by Call_Me_Op
Sun Dec 07, 2014 8:37 am
 
Forum: Investing - Theory, News & General
Topic: Why do target date funds get so bond heavy?
Replies: 39
Views: 2693

Re: Why do target date funds get so bond heavy?

A large loss in your portfolio shortly after retirement can devastate the probability of portfolio survival.
by Call_Me_Op
Sun Dec 07, 2014 8:03 am
 
Forum: Investing - Theory, News & General
Topic: Why do target date funds get so bond heavy?
Replies: 39
Views: 2693

Re: Disadvantages of not investing in bonds

Are you asking "why bonds" or why "stuff safer than stocks?"
by Call_Me_Op
Sun Dec 07, 2014 7:22 am
 
Forum: Investing - Help with Personal Investments
Topic: Disadvantages of not investing in bonds
Replies: 29
Views: 2520

Re: Bogle Advises Investing No More Than 20% Outside U.S.

John3754 wrote:
Call_Me_Op wrote:Japan


What about Japan?


Demonstrates the downside risk of concentrating investments in one country.
by Call_Me_Op
Sat Dec 06, 2014 2:05 pm
 
Forum: Investing - Theory, News & General
Topic: Bogle Advises Investing No More Than 20% Outside U.S.
Replies: 106
Views: 11211

Re: Bogle Advises Investing No More Than 20% Outside U.S.

I don't agree with him on this. I am 50-50.
by Call_Me_Op
Fri Dec 05, 2014 10:36 am
 
Forum: Investing - Theory, News & General
Topic: Bogle Advises Investing No More Than 20% Outside U.S.
Replies: 106
Views: 11211

Re: Merriman's Perspective on VG TSM

I believe that Merriman has a hidden agenda for his piece against Vanguard and TSM that has its roots in either financial or ego driven motivation. It may be Vanguard's and TSMs growth in popularity, prominence, and assets under management in contrast to the ever lowering pubic confidence and dimin...
by Call_Me_Op
Thu Dec 04, 2014 12:48 pm
 
Forum: Investing - Theory, News & General
Topic: 10 Reasons why Merriman dislikes Total Stock Mkt
Replies: 155
Views: 17367

Re: Share your networth progression

I retired in 2003, age 52, but I don't have good records going back that far. 2005 - $742,201 2006 - $824,859 2007 - $894,782 2008 - $614,095 (Recession) 2009 - $1,539,940 (Home Sale) 2010 - $1,674,272 2011 - $1,697,002 2012 - $1,869,612 2013 - $2,200,708 2014 - $2,350,585 (YTD) Also note that I've...
by Call_Me_Op
Thu Dec 04, 2014 12:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: Share your networth progression
Replies: 132
Views: 24097

Re: Merriman's Perspective on VG TSM

pkcrafter wrote:Does Merriman think total market funds should overweight certain asset class? :confused


No, he thinks we should invest beyond total market funds (tilts toward small & value).
by Call_Me_Op
Thu Dec 04, 2014 11:59 am
 
Forum: Investing - Theory, News & General
Topic: 10 Reasons why Merriman dislikes Total Stock Mkt
Replies: 155
Views: 17367

Re: Merriman's Perspective on VG TSM

1210sda wrote:Interesting that he did not take a total portfolio view.....adding international stocks and bonds. He talks about the increased returns but not the increased risk.


He does talk about adding international stocks. He doesn't see benefit in international bonds.
by Call_Me_Op
Thu Dec 04, 2014 8:44 am
 
Forum: Investing - Theory, News & General
Topic: 10 Reasons why Merriman dislikes Total Stock Mkt
Replies: 155
Views: 17367

Re: "Small-Cap Performance Edge on the Wane"

...Now if you say that riskier assets don't have higher expected returns, then why not? Are investors collectively oblivious to how risky an asset is in deciding how much they are willing to pay for it? It's the same principal as when people quote that they don't like individual stocks, because the...
by Call_Me_Op
Thu Dec 04, 2014 7:51 am
 
Forum: Investing - Theory, News & General
Topic: "Small-Cap Performance Edge on the Wane"
Replies: 99
Views: 7191

Re: Paul Merriman

Merriman is just saying that a tilt to Value, possibly Small Value, is likely to outperform pure TSM. A lot of folks here agree with that... He admits that he is basing this on past data - but 80 years worth of it. I think the only worthwhile arguments we can have are over whether his data are accu...
by Call_Me_Op
Wed Dec 03, 2014 2:47 pm
 
Forum: Investing - Theory, News & General
Topic: 10 Reasons why Merriman dislikes Total Stock Mkt
Replies: 155
Views: 17367

Re: "Small-Cap Performance Edge on the Wane"

Data from the past 80 years says that small beats large and value trumps growth - for the disciplined, long-term investor. Yes, financial engineering of past data has suggested all sorts of investments were viable in the past. As far as I am aware, small company stocks have been around for a long t...
by Call_Me_Op
Wed Dec 03, 2014 2:39 pm
 
Forum: Investing - Theory, News & General
Topic: "Small-Cap Performance Edge on the Wane"
Replies: 99
Views: 7191

Re: P/E ratios

I've read a number of Jack Bogle's books and articles and he mentions P/E ratios quite a bit when talking about returns, such as how large stocks were overvalued because they had P/E ratios of 40 back in the late 90s. Not knowing much about P/E ratios, are they mainly used to estimate the value of ...
by Call_Me_Op
Wed Dec 03, 2014 9:50 am
 
Forum: Investing - Theory, News & General
Topic: P/E ratios
Replies: 3
Views: 326

Re: "Small-Cap Performance Edge on the Wane"

It's the idea that a passive investor should expect persistent excess returns that doesn't seem to mesh with the idea of open markets that compete to essentially arbitrage out any excess profits. Really? So should we expect the higher returns of stocks compared to bonds to be arbitraged away? I hav...
by Call_Me_Op
Wed Dec 03, 2014 7:38 am
 
Forum: Investing - Theory, News & General
Topic: "Small-Cap Performance Edge on the Wane"
Replies: 99
Views: 7191

Re: "Small-Cap Performance Edge on the Wane"

Data from the past 80 years says that small beats large and value trumps growth - for the disciplined, long-term investor.
by Call_Me_Op
Wed Dec 03, 2014 7:34 am
 
Forum: Investing - Theory, News & General
Topic: "Small-Cap Performance Edge on the Wane"
Replies: 99
Views: 7191

Re: Fidelity's retirement savings guideline-Only need 8x sal

What does annual salary have anything to do with? This guideline makes no sense to me.
by Call_Me_Op
Tue Dec 02, 2014 11:54 am
 
Forum: Personal Finance (Not Investing)
Topic: Fidelity's retirement savings guideline-Only need 8x salary?
Replies: 45
Views: 5097

Re: Understanding why we market weight

g$$ wrote:It's been a while since my classes, but I believe this is a direct result of the Capital Asset Pricing Model (CAPM). Basically, the "market portfolio" produces the highest expected reward for the lowest expected risk.


That certainly has not been borne-out in the historical data.
by Call_Me_Op
Tue Dec 02, 2014 7:24 am
 
Forum: Investing - Theory, News & General
Topic: Understanding why we market weight
Replies: 18
Views: 1628

Re: FDIC vs. NCUA

wish2bCFP wrote:Please help me settle an argument with my brother-in-law. Are funds invested in a NCUA member credit union insured equally to funds invested in a FDIC bank in both amounts covered and quality of coverage?


"Yes" on amount covered, "essentially" on quality of coverage.
by Call_Me_Op
Mon Dec 01, 2014 11:54 am
 
Forum: Personal Finance (Not Investing)
Topic: FDIC vs. NCUA
Replies: 7
Views: 827

Re: The Whole Ball Game Of Equity Investing As I See It

Considering that tilting means to concentrate more in small cap than is present in the cap weighted total market, I think starting with TSM and some indeterminate fraction to TISM is sufficient for most any investor. I think doing otherwise is fine for any investor that learns enough about how all ...
by Call_Me_Op
Fri Nov 28, 2014 11:09 am
 
Forum: Investing - Theory, News & General
Topic: The Whole Ball Game Of Equity Investing As I See It
Replies: 33
Views: 4470

Re: non US bonds - a new asset class?

stlutz wrote:
Is this an asset class which should be included.


They offer higher risk and lower yield than comparable US bonds. So, I say no.


Some may see this as analyzing an asset class in isolation.
by Call_Me_Op
Thu Nov 27, 2014 8:09 am
 
Forum: Investing - Help with Personal Investments
Topic: non US bonds - a new asset class?
Replies: 11
Views: 838

Re: Critique my investment security plan

Can you hypothesize on a specific scenario that you fear? You are proposing going-through a lot of trouble, so you must have an idea of exactly what you are trying to avoid.
by Call_Me_Op
Thu Nov 27, 2014 8:06 am
 
Forum: Investing - Theory, News & General
Topic: Critique my investment security plan
Replies: 11
Views: 1158

Re: Is there anything unhealthy about drinking tap water?

tc101 wrote:Is there anything unhealthy about drinking tap water? Is there any health benefit to drinking filtered water or spring water?


Depends of course on impurities picked-up in your plumbing, the most notorious being lead.
by Call_Me_Op
Wed Nov 26, 2014 2:21 pm
 
Forum: Personal Consumer Issues
Topic: Is there anything unhealthy about drinking tap water?
Replies: 17
Views: 1259

Re: "Two Key Lessons You Can Learn From Academic Research"

This is why I am slowly becoming less of a believer in factor investing, because if it truly is a risk-story which explains higher factor returns, I'm not sure I wouldn't be better of just reducing my bond allocation and adding more to an all-world stock index fund. Factor investing theoretically a...
by Call_Me_Op
Wed Nov 26, 2014 2:18 pm
 
Forum: Investing - Theory, News & General
Topic: "Two Key Lessons You Can Learn From Academic Research"
Replies: 10
Views: 2023

Re: Why it's important to understand risks and have discipli

Larry,

Those of us who invest according to world market cap are being tested (in this way) right now. I plan to stay the course. The biggest mistake would be to notice the recent out-performance of US markets and abandon the world-cap strategy.
by Call_Me_Op
Wed Nov 26, 2014 11:36 am
 
Forum: Investing - Theory, News & General
Topic: Why it's important to understand risks and have discipline
Replies: 11
Views: 1354

Re: Where to invest end of year bonus

joe1206 wrote:It's law firm bonus season and I am expecting $40k in a couple of weeks (pre-tax). Where would you dump this money?


What does your IPS say you should do with new money?
by Call_Me_Op
Wed Nov 26, 2014 11:27 am
 
Forum: Investing - Theory, News & General
Topic: Where to invest end of year bonus
Replies: 16
Views: 1491

Re: TIM HORTON AND BURGER KING MERGER

This is the wrong site to get responses related to speculating in individual stocks. Most here think it is a bad idea.
by Call_Me_Op
Tue Nov 25, 2014 1:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tim Horton shareholder - what to do about Burger King Merger
Replies: 14
Views: 2057

Re: Strategically not paying medical bills for 90 days for a

Must do wonders for one's credit score.
by Call_Me_Op
Tue Nov 25, 2014 12:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Strategically not paying medical bills for 90 days for a dis
Replies: 30
Views: 3930

Re: Been out of market since 2008 and can't get back in

If I were in your shoes, I would first choose an asset allocation with no greater than 50% in stocks. The remainder would be put into short and intermediate high-quality (AA or higher) bond funds, CD's, MM, or a combination. I would document the AA in an Investment Policy Statement. Then I would put...
by Call_Me_Op
Tue Nov 25, 2014 10:35 am
 
Forum: Investing - Help with Personal Investments
Topic: Been out of market since 2008 and can't get back in
Replies: 52
Views: 5267
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