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Re: S&P 500 Equal Weight Index

I believe the critique is Equal Weight Indices behave a lot like mid-cap cap-weighted indices, but with a meaningfully higher ER (0.4 vs 0.09). Using the forum search in the top right you can see the considerable discussion that has already been had on this topic. https://www.google.com/search?sites...
by Elbowman
Mon Aug 25, 2014 11:19 am
 
Forum: Investing - Theory, News & General
Topic: S&P 500 Equal Weight Index
Replies: 10
Views: 923

Re: 3.3% Vanguard 10 year CD

ArthurO wrote:I refuse to loose my purchasing power due to inflation.
ArthurO wrote:I refuse to loose even a penny
You refuse? You must be pretty important, the market doesn't ask for my permission when it sets risk/return curves.
by Elbowman
Sat Aug 09, 2014 4:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: 3.3% Vanguard 10 year CD
Replies: 98
Views: 9364

Re: Affording a 1.3 million home?

This is OT, but every personal finance book I've read implores you not to hold your employer's stock any longer than you have to.
by Elbowman
Wed Aug 06, 2014 8:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Affording a 1.3 million home?
Replies: 105
Views: 11048

Re: Taxable Accounts - Am I thinking about this the right wa

Am I missing something basic here? I admit I skimmed some of this, but I think so. Say this very high earner was in CA. His/her marginal tax bracket would be approaching 50%. For the sake of simplicity, say he/she had the choice to put everything in taxable or tax deferred. At retirement the differ...
by Elbowman
Tue Jul 22, 2014 9:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Taxable Accounts - Am I thinking about this the right way?
Replies: 30
Views: 2782

Re: Taxable Accounts - Am I thinking about this the right wa

Am I missing something basic here? I admit I skimmed some of this, but I think so. Say this very high earner was in CA. His/her marginal tax bracket would be approaching 50%. For the sake of simplicity, say he/she had the choice to put everything in taxable or tax deferred. At retirement the differ...
by Elbowman
Tue Jul 22, 2014 6:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Taxable Accounts - Am I thinking about this the right way?
Replies: 30
Views: 2782

Re: if savings rate is most important.....

+1 for time. I like to think of it like this: FinalAmount = SavingsRate * EverythingElse ^ Time . If I didn't know anything about those variables I would rank their importance as: Time > EverythingElse > SavingsRate . However, increasing your SavingsRate is easier than increasing your EverythingElse...
by Elbowman
Thu Jun 05, 2014 9:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: if savings rate is most important.....
Replies: 24
Views: 2326

Re: Trying to Understand Corporate Bond Risk in Wellesley

If 60% of the 78% equals 47% of the Wellesley fund, should I expect that 47% to lose 50% of its value if the equity markets lose 50% of their value? No, you should not expect corporate bonds to lose as much of their value as equities. If I were you I'd start by looking at Vanguard's Intermediate-Te...
by Elbowman
Fri May 30, 2014 9:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Trying to Understand Corporate Bond Risk in Wellesley
Replies: 44
Views: 2997

Re: Least tax efficient

REIT will probably incur the most taxes. Also, you can replace your nominal bonds with munis and your TIPS with I Bonds (slowly). I don't know of a tax efficient replacement for REIT.
by Elbowman
Wed May 21, 2014 10:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Least tax efficient
Replies: 8
Views: 1213

Re: Seeking Constructive Advice on Whole Life for High Incom

Hah, its been a while since I've seen one of these posts. "I've decided to shoot myself in the foot. Now I know there are a lot of foot shooting haters on this forum, and I've considered your arguments so you don't need to repeat them. As for the rest of you, what caliber and angle would you su...
by Elbowman
Fri May 16, 2014 2:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Seeking Constructive Advice on Whole Life for High Income Ea
Replies: 25
Views: 1642

Re: "Smart Beta" ?

So my Vanguard SCV fund means I have a stake in the Strategic Beta universe? I guess I need to start going to some cocktail parties!
by Elbowman
Wed May 14, 2014 4:18 pm
 
Forum: Investing - Theory, News & General
Topic: "Smart Beta" ?
Replies: 12
Views: 1153

Re: The Importance of Sequencing in Withdraw Plans

I don't know what index fund you are using, but assuming it's a stock fund, I'd rerun your numbers using the various Vanguard lifecycle funds in place of the stock fund. This will check if the reduced losses of the active funds are just from reduced risk.
by Elbowman
Mon May 12, 2014 8:18 am
 
Forum: Investing - Theory, News & General
Topic: The Importance of Sequencing in Withdraw Plans
Replies: 9
Views: 1141

Re: Poll: Would you EVER recommend 100% equity?

No. With most of the experts I've read recommending no more than 80/20, I'd feel irresponsible recommending 100/0. Perhaps people are focusing too much on "ever" and not enough on "recommend". I can imagine situations where I'd go 100/0, but I still wouldn't be comfortable sugges...
by Elbowman
Fri Apr 25, 2014 9:36 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: Would you EVER recommend 100% equity?
Replies: 136
Views: 26952

Re: Help with a put option, can i exercise it?

If you take the title of this thread, and enter it in Google, the first result will tell you want you need to know.
The advise you got from Ladygeek, when judged by its long term impact, is probably the best investing advise you have received thus far in life.
by Elbowman
Tue Apr 15, 2014 9:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with a put option, can i exercise it?
Replies: 13
Views: 381

Re: Available Funds in 401K - Opinions please

The most important information for this decision is the expense ratio your plan is charging for each of those funds. If you can find those, we can help you :) .
by Elbowman
Tue Apr 15, 2014 2:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Available Funds in 401K - Opinions please
Replies: 8
Views: 721

Re: 20+ Year Treasury Bond

I think some people who use the Permanent Portfolio might hold that. But they are expecting volatility from it, not safety. With a duration that long you really could see a stock like crash if interest rates increased just a couple of percent, and holding for the long term is easier said than done.
by Elbowman
Thu Apr 10, 2014 9:42 pm
 
Forum: Investing - Theory, News & General
Topic: 20+ Year Treasury Bond
Replies: 6
Views: 723

Re: How to invest my "Emergency Fund"

+1 to b4nash's suggestion, particularly the I Bonds (careful though, you must wait a year before withdrawing) and FDIC insured CDs. Basically things with no risk of loss of principal. Also you mentioned that the biggest emergency you foresee is needing to get a new car. Two things about that... 1) E...
by Elbowman
Wed Apr 09, 2014 10:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to invest my "Emergency Fund"
Replies: 20
Views: 2543

Re: 401k Investment Options

Your current 401(k) elections are not great, but you are fortunate to have a great US stock option (VINIX) and a pretty good bond option (BMOIX). If you use your Roth IRA to hold the Extended US Stock Market (VEXMX, a 4:1 ratio of Institutional index to Extended index recreates the "total"...
by Elbowman
Wed Apr 09, 2014 3:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401k Investment Options
Replies: 12
Views: 541

Re: Random Walk Down Wall Street

The less history you know, the more susceptible you are to the idea that "this time it's different".
by Elbowman
Fri Mar 14, 2014 12:40 pm
 
Forum: Investing - Theory, News & General
Topic: Random Walk Down Wall Street
Replies: 27
Views: 2423

Re: Why is index investing better considering these funds

You're going to spend tens of thousands of hours, perhaps a hundred thousand hours of your life working to make money. You need to take the tiniest fraction of that, perhaps five to ten hours, and read a book to find out what you should do with the money you are working so hard to make. I suggest &q...
by Elbowman
Tue Mar 11, 2014 10:39 pm
 
Forum: Investing - Theory, News & General
Topic: Why is index investing better considering these funds
Replies: 23
Views: 3099

Re: 25 YR Old Just Starting Out-Help with 401K/Investing

Watch the fixed income allocation. You could easily live to 100. I strongly encourage you to move to 100% equity allocation ASAP. You will certainly--certainly--thank me in 50 years. Look at any DJIA chart for the last 100 years if you doubt me. And research the number of ten year periods in which ...
by Elbowman
Tue Mar 04, 2014 2:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: 25 YR Old Just Starting Out-Help with 401K/Investing
Replies: 11
Views: 1650

Re: Private Equity Individual Stock Holdings

Are there papers suggesting a single Private Equity firm's holdings will mirror the total distribution of Private Equity holdings much better than the stock market?
by Elbowman
Mon Dec 30, 2013 6:27 pm
 
Forum: Investing - Theory, News & General
Topic: Private Equity Individual Stock Holdings
Replies: 4
Views: 272

Re: Poll: "Bonds are for safety (True or False)".

Thanks for the replies. I put the poll up because I often see that statement as if it were dogma. Of course, I like to challenge it then! ;) My opinion is that while bonds are indeed a safer part of my portfolio, they are not "for" safety. That's what bank accounts and CDs are for. Vangua...
by Elbowman
Thu Dec 26, 2013 4:14 am
 
Forum: Investing - Theory, News & General
Topic: Poll: "Bonds are for safety (True or False)".
Replies: 63
Views: 4116

Re: Order by tax efficiency: VWO, VSS, VBR

Thank you everyone for your responses, they are very helpful! You've confirmed that my VWO in taxable is probably OK, shown me how to compute this for myself in the future, and the numbers you've found are close enough to reaffirm my belief that decisions like this will probably be lost in the noise...
by Elbowman
Tue Dec 24, 2013 3:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Order by tax efficiency: VWO, VSS, VBR
Replies: 8
Views: 908

Order by tax efficiency: VWO, VSS, VBR

Hi Bogleheads, So I have five funds in my portfolio: total stock market (VTI), small-cap value (VBR), international small-caps (VSS), emerging markets (VWO), and total bond market (BND). My question is which order to place them in my taxable account. I assume TSM first and TBM last, and after TSM I ...
by Elbowman
Mon Dec 23, 2013 1:42 am
 
Forum: Investing - Help with Personal Investments
Topic: Order by tax efficiency: VWO, VSS, VBR
Replies: 8
Views: 908

Re: Portfolio Help: 26 and Pregnant

Congratulations! 1) Utah does seem to be one of the favorites on this board. And if you choose the age based plan you can just put everything in that, and don't have to worry about I Bonds, etc. 2) If you have a proper IPS you should never really be confused as to what to do with extra cash. Just in...
by Elbowman
Wed Dec 18, 2013 1:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help: 26 and Pregnant
Replies: 14
Views: 1235

Re: 28 y/o Investor With 1M Portfolio Needs Advice

pkcrafter wrote:No, 100% equity is not a good idea, especially after the current market run-up.
+1. I'd be 70/30 max, 60/40 maybe.
by Elbowman
Fri Dec 13, 2013 3:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: 28 y/o Investor With 1M Portfolio Needs Advice
Replies: 31
Views: 4855

Re: Good article on style premium investing & AQR new fund

Finally, assume behavioral stories go away--then you want to be the first to exploit them, capturing big one time gains as spreads narrow. Just don't want to be the last one. I know this is only one of many many arguments you made, but... isn't that terrible investing advice? Doesn't that imply tim...
by Elbowman
Wed Dec 11, 2013 2:10 am
 
Forum: Investing - Theory, News & General
Topic: Good article on style premium investing & AQR new fund
Replies: 62
Views: 6126

Re: Bond question

Their argument was that they are young and can take the risks. Yes, you are young and you can afford to take risks. That is why it is reasonable to put 70-80% of your portfolio into an asset class that can lose 50% of its value in a year. However, at no point in your investing life do you want to t...
by Elbowman
Fri Nov 15, 2013 8:50 pm
 
Forum: Investing - Theory, News & General
Topic: Bond question
Replies: 28
Views: 1359

Re: Another note from my brother, the armchair economist

Riverstwo wrote:As for me Im just gonna
watch it unfold in time, a little taper here and add in some derivatives with smoke and mirrors and sham-wow.
While most of his advice is sound, I would avoid purchasing a ShamWow.
by Elbowman
Mon Nov 11, 2013 4:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Another note from my brother, the armchair economist
Replies: 24
Views: 2582

Re: 100 Percent Equity Asset Allocation

Question: Given high risk tolerance for young investors, is there any non-psychological reason not to adopt a full equity AA for their retirement accounts? Yes. Call it "expected utility". Here is the classic example: say some billionaire offered you a choice; he will either give you $10,...
by Elbowman
Wed Nov 06, 2013 9:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: 100 Percent Equity Asset Allocation
Replies: 36
Views: 4548

Re: Maximizing ROI - Three Fund Portfolio

Risk is not an issue with me in the slightest. Interesting. Here is a question: say you met some eccentric billionaire who wanted to toy with your emotions, and he offered you either a guaranteed $10,000,000, or a coin flip where you win $25,000,000 on heads, and get nothing on tail. Which would yo...
by Elbowman
Fri Oct 18, 2013 9:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Maximizing ROI - Three Fund Portfolio
Replies: 12
Views: 980

Re: Maximizing ROI - Three Fund Portfolio

Some people may disagree, but here is what I believe to be a basic tenet underlying Boglehead investing theory: When in doubt, assume you are close to average, and then adopt a strategy that would work well for the average person. A priori you more likely to be average than anything else in particul...
by Elbowman
Fri Oct 18, 2013 9:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Maximizing ROI - Three Fund Portfolio
Replies: 12
Views: 980

Re: 26 year old - looking for advice

The recommendation for emergency funds is 6-12 months worth of expenses. I would total up necessary monthly expenses (rent + car + insurance + basic living expenses + minimum student loan payments) and keep six times that amount in your emergency fund. I doubt your current EF is unnecessarily high.
by Elbowman
Mon Sep 09, 2013 3:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: 26 year old - looking for advice
Replies: 9
Views: 698

Re: bad time for bonds?

In general, its a bad idea to change your investments based on current events. A Three Fund Portfolio is going to do a find job over your lifetime, and your biggest risk is you will mess it up through tinkering. That being said, it wont be the end of the world if you use a stable value fund, short ...
by Elbowman
Thu Sep 05, 2013 11:12 pm
 
Forum: Investing - Theory, News & General
Topic: bad time for bonds?
Replies: 37
Views: 3829

Re: bad time for bonds?

In general, its a bad idea to change your investments based on current events. A Three Fund Portfolio is going to do a fine job over your lifetime, and your biggest risk is you will mess it up through tinkering. That being said, it wont be the end of the world if you use a stable value fund, short t...
by Elbowman
Thu Sep 05, 2013 10:59 pm
 
Forum: Investing - Theory, News & General
Topic: bad time for bonds?
Replies: 37
Views: 3829

Re: I just don't get this rise in interest rates

dbc47 wrote:but it is hard to be happy when bond NAVs are dropping almost daily.
If you are actually checking the NAV price of your funds on a daily basis, you should probably stop. It doesn't really do any good, can make people emotional (surprise!), and emotional people tend to make bad financial decisions.
by Elbowman
Thu Sep 05, 2013 4:18 pm
 
Forum: Investing - Theory, News & General
Topic: I just don't get this rise in interest rates
Replies: 104
Views: 7173

Re: Another fun 'help me with the 401k' thread...

BR S&P index INV A Class (MDSRX) .56 That's basically a large-cap SP500 fund with a reasonable expense ratio. In your position I would probably put most of the 401k assets into this fund and then use your Roth IRA to cover bonds and international. +1. In reality S&P 500 is fairly well diver...
by Elbowman
Thu Sep 05, 2013 2:32 am
 
Forum: Investing - Help with Personal Investments
Topic: Another fun 'help me with the 401k' thread...
Replies: 14
Views: 1288

Re: Tilting to value/small

Does anyone slice their domestic equities into Large Growth, Large Value, Small Growth, and Small Value? No, most people who choose this "four corners" type slice and dice choose Large Blend , Large Value, Small Blend , Small Value. Rick Ferri argued in All About Asset Allocation that the...
by Elbowman
Tue Sep 03, 2013 6:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tilting to value/small
Replies: 25
Views: 2633

Re: Funding IRA and "Minimum Investments"

I know my 10% stake in my company stock (Wells Fargo) is a bit beyond the percentage of the "fun money" recommended by Bogle (he recommends no more than 5%). But I'm young, feel moderately aggressive, enjoy the company I work for, and believe long-term that Wells Fargo is a pretty good st...
by Elbowman
Tue Aug 27, 2013 4:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Funding IRA and "Minimum Investments"
Replies: 14
Views: 433

Re: Pulling Trigger - Portfolio Holdings & Allocation

Your costs are low, and you are reasonably diversified. If you invest early and often, and stay the course, you will be fine.
by Elbowman
Tue Aug 27, 2013 3:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: Pulling Trigger - Portfolio Holdings & Allocation
Replies: 12
Views: 749

Re: Help needed for high anxiety w/ new MF picks

You seem to believe that active managers with good past returns can be counted on to overcome their expenses and beat the market. The data does not support that idea. But I doubt I will be able to convince you of that by myself, and you probably shouldn't be making million dollar decisions based on ...
by Elbowman
Fri Aug 23, 2013 7:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help needed for high anxiety w/ new MF picks
Replies: 19
Views: 1151

Re: WisdomTree as a proxy for value

Well I can't answer your question directly, but since no one else is responding, I can tell you why I chose VSS over DLS. When it comes to tilting, especially towards value, I've decided that my foremost concern is costs. My reasoning is: what would happen if the value premium disappeared? I'm fairl...
by Elbowman
Thu Aug 15, 2013 5:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: WisdomTree as a proxy for value
Replies: 5
Views: 884

Re: Finally Consolidating - Evaluate My 100k Portfolio

Tebowed wrote:3.82% ECON (Emerging Markets Consumer Titans Index) (0.85%)
IMO 0.85% is too expensive.
by Elbowman
Wed Aug 14, 2013 12:40 am
 
Forum: Investing - Help with Personal Investments
Topic: Finally Consolidating - Evaluate My 100k Portfolio
Replies: 9
Views: 881

Re: Car Worth Repairing?

Thank you everyone for you time and experience! I find the idea that the repair cost is already lost because a broken car has little resale value particularly interesting. On the other hand, the car does go through oil fast. We will look into a compression test. mike143, can I ask the source of your...
by Elbowman
Wed Aug 07, 2013 1:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Car Worth Repairing?
Replies: 20
Views: 1634

Re: Tax Implications of Gift to Siblings?

Thanks again everyone for your time and thoughts! You have thoroughly answered my questions :D
by Elbowman
Wed Aug 07, 2013 12:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Implications of Gift to Siblings?
Replies: 16
Views: 1048

Re: Car Worth Repairing?

Thanks for all the replies! The car has a gasoline engine. Auto transmission, with the quote from the mechanic (not the dealer, but I don't think they specialize in transmissions). The timing belt and water pump have been replaced. She has owned the car from the beginning, and I believe the oil has ...
by Elbowman
Tue Aug 06, 2013 3:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Car Worth Repairing?
Replies: 20
Views: 1634

Re: Tax Implications of Gift to Siblings?

Thank you all very much!
by Elbowman
Tue Aug 06, 2013 1:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Implications of Gift to Siblings?
Replies: 16
Views: 1048

Tax Implications of Gift to Siblings?

Hi Folks, My parents were able to pay for most of my undergrad before they realized they would be unable to do the same for my younger siblings. Now I am doing quite well (as are my parents, after moving for a new job), and I would like to give each of my three siblings $25,000 to pay down their stu...
by Elbowman
Tue Aug 06, 2013 1:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Implications of Gift to Siblings?
Replies: 16
Views: 1048

Car Worth Repairing?

Hi Folks, My GF has a 2002 VW Golf with 130,00 miles. Recently the transmission broke, and the mechanic says it will cost about $2600 to repair, including labor. We are trying to decide if it is worth repairing, or if she should get a new (used) car. If we could repair her current car and get anothe...
by Elbowman
Tue Aug 06, 2013 1:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: Car Worth Repairing?
Replies: 20
Views: 1634
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