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by Call_Me_Op
Tue May 19, 2015 5:59 am
Forum: Investing - Theory, News & General
Topic: The Benefits of Active Management for Investors
Replies: 17
Views: 1485

Re: The Benefits of Active Management for Investors

cheese_breath wrote:On any given day a monkey throwing darts at the newspaper's stock pages might outperform a benchmark. But how many monkeys will be that lucky, or how many days?


And how can you identify those monkeys beforehand?
by Call_Me_Op
Sun May 17, 2015 6:36 am
Forum: Personal Finance (Not Investing)
Topic: Divorce and Marriage
Replies: 21
Views: 2541

Re: Divorce and Marriage

As someone who is not married (a couple of very long relationships, however), but who has observed two successful marriages that lasted over 50 years (my parents and grandparents), the key is to see divorce as a non-option. I am afraid that with the changed attitudes today, I think you take a huge c...
by Call_Me_Op
Sat May 16, 2015 6:38 am
Forum: Investing - Theory, News & General
Topic: Vanguard live video webcast: the case for a global portfolio
Replies: 3
Views: 486

Re: Vanguard live video webcast: the case for a global portfolio

It has taken Vanguard a long time to catch-on to something that has seemed obvious to me and many others here. I know that some disagree.
by Call_Me_Op
Fri May 15, 2015 8:47 am
Forum: Investing - Help with Personal Investments
Topic: Talk me out of Timing the Market!
Replies: 30
Views: 2990

Re: Talk me out of Timing the Market!

You need to keep educating yourself. The fed interest rate only impacts very short-term rates, but in addition to that, consensus is already factored into today's prices. Nobody can predict future interest rates. If you don't like bond funds, you can use CD's or even park some money in cash until yo...
by Call_Me_Op
Fri May 01, 2015 6:55 am
Forum: Personal Finance (Not Investing)
Topic: The Engineer's Guide to Investing
Replies: 32
Views: 3067

Re: The Engineer's Guide to Investing

Engineer for over 30 years, Key is to participate in the retirement plan from day 1. Second, invest heavily in stocks in the early years (which I did not do). We had terrible investing options (back then) compared to today.
by Call_Me_Op
Thu Apr 30, 2015 8:46 am
Forum: Investing - Help with Personal Investments
Topic: VFSUX or 2 year CD?
Replies: 4
Views: 578

Re: VFSUX or 2 year CD?

Is this a trick question? I would of course choose the CD.
by Call_Me_Op
Tue Apr 28, 2015 5:32 am
Forum: Investing - Theory, News & General
Topic: Cap Weighting for International
Replies: 22
Views: 1751

Re: Cap Weighting for International

Cap weighting makes absolute sense within a distinct market, such as US equities. The rationale being that the US equities market is very close to being a perfectly efficient market and as such, it is hard to beat the cap-weighted index of that market. Untrue; that's not what it means to have an ef...
by Call_Me_Op
Mon Apr 27, 2015 8:32 am
Forum: Investing - Theory, News & General
Topic: "Purposely and exuberantly" unbalanced?
Replies: 3
Views: 489

Re: "Purposely and exuberantly" unbalanced?

I think this is largely "mental accounting" since a so-called balanced portfolio typically consists of high-risk and low-risk assets anyway. You could employ asymmetric rebalancing of a balanced portfolio and achieve a similar objective.
by Call_Me_Op
Mon Apr 27, 2015 8:29 am
Forum: Personal Consumer Issues
Topic: How far away from a freight railroad track should you live?
Replies: 51
Views: 3326

Re: How far away from a freight railroad track should you li

So using 110 db sound pressure level at 100 feet, at 5 miles through an open window we get 62 db (cheating with an Inverse Square Law calculator ), or louder than conversational speech at 3 feet, and much louder than a quiet bedroom at night (30 db) . "A volume increase of 6 to 10 db in gain l...
by Call_Me_Op
Sun Apr 26, 2015 8:28 am
Forum: Investing - Theory, News & General
Topic: Kitces on Asset Location
Replies: 21
Views: 1604

Re: Kitces on Asset Location

Stocks in tax-deferred helps to grow asset-protected space.
by Call_Me_Op
Sun Apr 26, 2015 7:25 am
Forum: Investing - Help with Personal Investments
Topic: Losing Sleep, Help with portfolio
Replies: 20
Views: 3128

Re: Losing Sleep, Help with portfolio

Guardyourheart wrote:Scottrade has given me a great deal, lots of free trades, I was planning on moving to Vanguard both I also like to purchase individual stocks. I know that's a losers game but so far it hasn't been for me.
Jeff


It's apparently affecting your health, so perhaps it is a loser's game for you too.
by Call_Me_Op
Sun Apr 26, 2015 7:13 am
Forum: Investing - Help with Personal Investments
Topic: Investing on Margin
Replies: 74
Views: 4913

Re: Investing on Margin

oinkyboinky wrote:Is it ever a good idea to invest on margin?


no
by Call_Me_Op
Sat Apr 25, 2015 2:44 pm
Forum: Investing - Help with Personal Investments
Topic: Why the big difference in my intl managed vs index funds
Replies: 8
Views: 672

Re: Why the big difference in my intl managed vs index funds

Style drift. Typically, when a managed fund outperforms it's because they either have been lucky (like a foreign fund having US investments in the past several years) or have tilted toward risk factors.
by Call_Me_Op
Sat Apr 25, 2015 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: Is the 1% Cost of Managing Money Worth It?
Replies: 53
Views: 4748

Re: Is the 1% Cost of Managing Money Worth It?

I am trying to better understand the argument for the significant, 1% or so (of your portfolio) cost charged by the money managers. Argument? Why does there need to be an argument? They can get away with it. 1% sounds like a small number, and many people (apparently) do not understand that it equat...
by Call_Me_Op
Sat Apr 25, 2015 7:58 am
Forum: Investing - Theory, News & General
Topic: Rick Ferri looking to internationalize his portfolio
Replies: 357
Views: 49488

Re: Rick Ferri looking to internationalize his portfolio

Market timing is adjusting your asset allocation based upon what you think will happen with the economy. That's exactly what Rick is doing. I am not criticizing, just sayin....
by Call_Me_Op
Fri Apr 24, 2015 6:54 am
Forum: Investing - Help with Personal Investments
Topic: Low Cost Adviser with Vanguard as Custodian?
Replies: 9
Views: 832

Re: Low Cost Adviser with Vanguard as Custodian?

Why not just put the money in a Lifestrategy fund (at Vanguard) and be done with it. That's what i did for my mom (age = 78). She doesn't even have to think about it, it's broadly diversified, automatically rebalanced, and costs are very low.
by Call_Me_Op
Fri Apr 24, 2015 6:48 am
Forum: Investing - Theory, News & General
Topic: Age in Bonds Poll
Replies: 72
Views: 3919

Re: Age in Bonds Poll

I don't believe "age in bonds" is necessarily a good rule of thumb, but 100-age in stocks is pretty good.
by Call_Me_Op
Fri Apr 24, 2015 6:46 am
Forum: Investing - Help with Personal Investments
Topic: I am torn about AT&T stock
Replies: 19
Views: 2027

Re: I am torn about AT&T stock

I have some AT&T stock that has been around 32-33 dollars a share for a while now. I am thinking about selling them and put $$ into index. But the dividend has been good (around 5%). I won't incur significant gains or loss if I sell them. They are not a significant part of my portfolio (around ...
by Call_Me_Op
Fri Apr 24, 2015 6:41 am
Forum: Personal Finance (Not Investing)
Topic: 2 million dollar mistake meeting with MIL's financial guy
Replies: 23
Views: 5198

Re: 2 million dollar mistake meeting with MIL's financial gu

Not sure why you wasted your time sitting down with him in the first place.
by Call_Me_Op
Thu Apr 23, 2015 7:12 am
Forum: Investing - Help with Personal Investments
Topic: Recommended stock to bond ratio??
Replies: 15
Views: 1716

Re: Recommended stock to bond ratio??

I agree with the comments re Nisi's posts. FWIW, I am not a big fan of glide paths once you get to the point where you have more-or-less enough. At that point and beyond, pick a stock allocation that will allow you to sleep at night and keep it about there. For me, that's considerably lower than 65%...
by Call_Me_Op
Mon Apr 20, 2015 6:26 am
Forum: Personal Finance (Not Investing)
Topic: Single best piece of personal finance advice ever received?
Replies: 90
Views: 7091

Re: Single best piece of personal finance advice ever receiv

marshallv wrote:So, what is your single best piece of advice ever received?
Marshall


Educate yourself.
by Call_Me_Op
Sun Apr 19, 2015 6:29 am
Forum: Investing - Help with Personal Investments
Topic: Coming to terms with low risk tolerance
Replies: 46
Views: 3571

Re: Coming to terms with low risk tolerance

There's nothing wrong with that allocation. It is close to mine and has done fine historically. I am somewhat older than you, but I chose that allocation when I was in my 40's and have stuck with it. People tend to forget that in 2008, we didn't know that the market would recover - and it may not ha...
by Call_Me_Op
Fri Apr 17, 2015 6:47 am
Forum: Investing - Theory, News & General
Topic: How much riskier are munis than treasuries?
Replies: 32
Views: 3907

Re: How much riskier are munis than treasuries?

While the Vanguard ratings are helpful they don't explain what the source of the risk is. For instance the Extended Duration Treasury ETF has a risk grade of 5--all interest rate risk. The high yield corporate fund, by contrast has a grade of 3--mostly credit risk. Vanguard is probably defining ris...
by Call_Me_Op
Fri Apr 17, 2015 6:40 am
Forum: Investing - Theory, News & General
Topic: NY Times Article - Active Mutual Funds
Replies: 25
Views: 3086

Re: NY Times Article - Active Mutual Funds

Same old story; with investing, you get what you don't pay for.
by Call_Me_Op
Thu Apr 16, 2015 7:16 am
Forum: Personal Finance (Not Investing)
Topic: Should I purchase an Umbrella policy?
Replies: 54
Views: 5635

Re: Should I purchase an Umbrella policy?

With umbrella policies, I generally view them as desirable because they provide you coverage for liabilities in excess of your regular limits on various policies. They are generally VERY cheap, which is why I carry one myself. I already have the limits required to purchase an umbrella policy, along...
by Call_Me_Op
Thu Apr 16, 2015 7:13 am
Forum: Personal Consumer Issues
Topic: noise-blocking headphones
Replies: 39
Views: 3172

Re: noise-blocking headphones

Ear plugs block low-frequency noise much better than ear muffs.
by Call_Me_Op
Thu Apr 16, 2015 6:44 am
Forum: Investing - Theory, News & General
Topic: Retirement expenditure concept
Replies: 46
Views: 3683

Re: How many baskets for your eggs?

I am not yet retired and I currently have a lot of baskets. When retired, I'd like to be down to 3. That's a number I think I can live with.
by Call_Me_Op
Thu Apr 16, 2015 6:37 am
Forum: Investing - Theory, News & General
Topic: How much riskier are munis than treasuries?
Replies: 32
Views: 3907

Re: How much riskier are munis than treasuries?

But, are they really that much riskier in terms of the odds of "losing your shirt" or the munis dropping 20-50% while the treasuries do not [again, in a diversified fund of hundreds/thousands of issuers]? I find that highly unlikely. It is highly unlikely but not impossible. Both muni's a...
by Call_Me_Op
Thu Apr 16, 2015 6:29 am
Forum: Personal Finance (Not Investing)
Topic: Can't Just Do Nothing
Replies: 45
Views: 6275

Re: Can't Just Do Nothing

Does anyone else feel the same way? What do you do to satisfy the urge to do something in the financial realm while "staying the course" and "ignoring the noise" when it comes to your investments? I certainly do not. I have a good job and thinking about schemes would distract me...
by Call_Me_Op
Wed Apr 15, 2015 7:01 am
Forum: Personal Finance (Not Investing)
Topic: Raising well-adjusted children when you're "rich"?
Replies: 43
Views: 3588

Re: Raising well-adjusted children when you're "rich"?

I read a statistic the other day stating that the average American child receives something like 70+ new toys yearly. That's interesting, since I typically received 1 toy per year. I don't think it's good for kids to be given everything they want. They should be taught to fend for themselves; it bu...
by Call_Me_Op
Tue Apr 14, 2015 7:02 am
Forum: Personal Finance (Not Investing)
Topic: Does your family know about your net worth (ball park)?
Replies: 98
Views: 11536

Re: Does your family know about your net worth (ball park)?

From looking at the recent annual income poll result, I think most BHs are already millionaires or will become one. Q1. Does your family (parents, siblings) know about your net worth (ball park figure)? Q2. Do you know their net worth? Q3. How does knowing one's net worth affect family relationship...
by Call_Me_Op
Tue Apr 14, 2015 6:28 am
Forum: Investing - Help with Personal Investments
Topic: Inflation Protected Securities Fund
Replies: 10
Views: 1053

Re: Inflation Protected Securities Fund

I would expect stocks to be a much better long-term inflation hedge than TIPS purchased at a real yield of about zero.
by Call_Me_Op
Mon Apr 13, 2015 6:27 am
Forum: Investing - Help with Personal Investments
Topic: Best investment in a Taxable Account ?
Replies: 11
Views: 1323

Re: Best investment in a Taxable Account ?

Hello Everyone .I am new to the forum I am glad that I came across it . I started investing late but I have a high income so I am thinking of investing heavily in Taxable account after I Max out 401k , Roth IRA . What is the most tax efficient investment I should have ? Just because an investment i...
by Call_Me_Op
Sat Apr 11, 2015 7:21 am
Forum: Investing - Theory, News & General
Topic: WSJ: You may need less than 80% in retirement
Replies: 98
Views: 9261

Re: WSJ: You may need less than 80% in retirement

What you make from your job has little to do with it. It's what you normally spend that is relevant.
by Call_Me_Op
Fri Apr 10, 2015 8:00 am
Forum: Investing - Theory, News & General
Topic: Concerns about not tilting to certain sectors
Replies: 10
Views: 763

Re: Concerns about not tilting to certain sectors

Do you ever worry about "missing out" by not tilting to a specific sector? It seems like health care and small caps are worthy of a tilt.. No, because I do tilt. Why do I tilt? It's not because I am a daredevil. It is because I want the most return per unit of risk, and the historical rec...
by Call_Me_Op
Fri Apr 10, 2015 7:56 am
Forum: Personal Finance (Not Investing)
Topic: How to know if I am saving enough?
Replies: 25
Views: 2725

Re: How to know if I am saving enough?

45% is way more than most people save. I would stop worrying about it. If you are living comfortably and saving 45%, you are in great shape.
by Call_Me_Op
Fri Apr 10, 2015 7:52 am
Forum: Investing - Help with Personal Investments
Topic: Should My Parents Switch Their Bond Funds?
Replies: 10
Views: 798

Re: Should My Parents Switch Their Bond Funds?

No, probably not. If this money is in a tax-deferred account, then definitely not.

Long-term tax-exempt has more risk than Total Bond - in the form of both credit risk and duration risk. If the money is in taxable, then considering intermediate tax-exempt is reasonable as a substitute.
by Call_Me_Op
Fri Apr 10, 2015 7:49 am
Forum: Investing - Help with Personal Investments
Topic: CD question
Replies: 2
Views: 420

Re: CD question

Don't let the tax tail wag the dog. If you have a choice, hold is tax-deferred. But otherwise, holding in taxable is fine. The benefits of CD's, especially bank CD's, can outweigh tax concerns.
by Call_Me_Op
Fri Apr 10, 2015 7:18 am
Forum: Investing - Theory, News & General
Topic: How does a retired person mitigate a Bond Bubble?
Replies: 46
Views: 5884

Re: How does a retired person mitigate a Bond Bubble?

My mom is age 65 and retired. Her pension + SS pays her monthly expenses. Her entire IRA ($300k) is in Vanguard's Target Retirement Income fund (30% stocks/70% Bonds). Would the bond bubble bursting kill her IRA? If not, why not since it's 70% bonds? If so, how to mitigate it? Why isn't she in bank...
by Call_Me_Op
Mon Apr 06, 2015 11:34 am
Forum: Investing - Help with Personal Investments
Topic: Total bond vs. intermediate treasury
Replies: 8
Views: 667

Re: Total bond vs. intermediate treasury

Tough to answer. Really a matter pf preference. Total bond carries more types of risk factors, but has higher expected return and higher expenses. I'd probably choose treasury because it has lower correlation to equities and lower expenses.
by Call_Me_Op
Mon Apr 06, 2015 7:06 am
Forum: Investing - Help with Personal Investments
Topic: Institutional Diversification???
Replies: 10
Views: 950

Re: Institutional Diversification???

I am in the camp that believes in custodial diversification. I am sure you remember 2008, and things were happening then that people thought could never happen. The additional work associated with having multiple custodians is trivial; just use a simple spreadsheet to track investments.
by Call_Me_Op
Mon Apr 06, 2015 6:49 am
Forum: Investing - Theory, News & General
Topic: Why are Bonds expensive?
Replies: 24
Views: 2379

Re: Why are Bonds expensive?

Bond yields are so low for 2 reasons: 1.) Expectations are that inflation will remain low. 2.) There is still a lot of residual fear associated with the 2008-2009 melt-down. Many investors are still gun shy, and this will be the case for some time (think children of the Depression). This increases d...
by Call_Me_Op
Sun Apr 05, 2015 9:20 am
Forum: Investing - Theory, News & General
Topic: Do you think Ric Edelman is correct, never pay down mortgage
Replies: 257
Views: 23505

Re: Do you think Ric Edelman is correct, never pay dow mortg

Let's say I decided to follow this advice in 1928. I own my home outright after many years and I am now comfortably retired, having depleted my human capital. However, I decide to take out a mortgage for the value of my home and invest the loan amount in the stock market. The following year, the ma...
by Call_Me_Op
Sun Apr 05, 2015 8:30 am
Forum: Investing - Theory, News & General
Topic: Do you think Ric Edelman is correct, never pay down mortgage
Replies: 257
Views: 23505

Re: Do you think Ric Edelman is correct, never pay dow mortg

Anyway, 'never' is a strong word but there are not many scenarios in a low rate environment where paying off the mortgage makes sense from a spreadsheet point of view. The above example with the retiree who buys a bunch of stocks after selling their home is a straw man. I don't think anyone recomme...
by Call_Me_Op
Sun Apr 05, 2015 7:22 am
Forum: Investing - Theory, News & General
Topic: Do you think Ric Edelman is correct, never pay down mortgage
Replies: 257
Views: 23505

Re: Do you think Ric Edelman is correct, never pay dow mortg

Let's say I decided to follow this advice in 1928. I own my home outright after many years and I am now comfortably retired, having depleted my human capital. However, I decide to take out a mortgage for the value of my home and invest the loan amount in the stock market. The following year, the mar...
by Call_Me_Op
Sat Apr 04, 2015 7:29 am
Forum: Investing - Theory, News & General
Topic: Role of Nominal Governent Bonds
Replies: 20
Views: 1459

Re: Role of Nominal Governent Bonds

Nominal bonds provide better return (than TIPS) if inflation is below expectations. They also tend to do better during market dislocations.
by Call_Me_Op
Fri Apr 03, 2015 5:36 am
Forum: Investing - Theory, News & General
Topic: The Detriments of Rebalancing
Replies: 67
Views: 5964

Re: The Detriments of Rebalancing

Rebalancing is intended to control risk, not to enhance return.
by Call_Me_Op
Thu Apr 02, 2015 5:29 am
Forum: Investing - Theory, News & General
Topic: If long-term, why not just go really high risk?
Replies: 49
Views: 5113

Re: If long-term, why not just go really high risk?

Hi everyone, If someone wants to invest in a security and let it sit for 50 years, why should they even care about volatility? Wouldn't it behoove the person to just buy a risky index fund composed 100% of stocks? Thanks! It's never a sure thing. That is what risk means. Defining risk strictly as v...
by Call_Me_Op
Wed Apr 01, 2015 6:31 am
Forum: Investing - Theory, News & General
Topic: My Strategy For A Market Crash
Replies: 54
Views: 9570

Re: My Strategy For A Market Crash

My strategy for a market crash; Stay the course.

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