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Re: *poor* Bogleheads

VictoriaF wrote:I can't speak for people of color.

Yet you chose to do so anyway.

Whatever.
by Jack
Fri Apr 18, 2014 3:50 pm
 
Forum: Forum Issues and Administration
Topic: *poor* Bogleheads
Replies: 78
Views: 4961

Re: *poor* Bogleheads

A long time ago, I decided that I would be better off assimilating into the American social circles rather than clinging to a Russian-speaking community, and I have never regretted my choice. The rewards are far greater than the challenges. The same is hopefully true for those who are breaking the ...
by Jack
Fri Apr 18, 2014 3:38 pm
 
Forum: Forum Issues and Administration
Topic: *poor* Bogleheads
Replies: 78
Views: 4961

Re: Let's compare 2013 effective tax rates

I assume the OP wants to know the % of tax we paid on our income. Perhaps that isn't the definition of effective tax rate, but it sounds like that's what the OP wants. My effective tax rate (based on this definition) was 15.48%. This is the tax I paid (both Fed & State) divided by my taxable in...
by Jack
Wed Apr 16, 2014 2:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Let's compare 2013 effective tax rates
Replies: 46
Views: 2115

Re: the President's savings rate

Why would he save anything at all? Probably because he truly has nothing to spend it on at the moment. Actually the President is billed monthly for personal expenses -- food, clothing, toiletries -- but not salaries for butlers, maids and chefs, which are considered White House employees. The Secre...
by Jack
Sun Apr 13, 2014 4:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: the President's savings rate
Replies: 19
Views: 2615

Re: the President's savings rate

You can inspect the President's tax return here: http://www.whitehouse.gov/sites/default/files/image/2013_potus_tax_returns.pdf It indicates that the $20,681 savings mentioned in the article pertains only to his SEP contribution for self-employment income from book royalties. He is contributing the ...
by Jack
Sun Apr 13, 2014 2:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: the President's savings rate
Replies: 19
Views: 2615

Re: Why does Vanguard use average return iso compound annual

I think if the SEC and mutual fund companies are using geometric returns they should not call them average annual returns. I guess I would say, if you think about for a moment, why would anyone assume it means arithmetic return? Arithmetic return is a pretty useless metric that tells you nothing ab...
by Jack
Sat Apr 12, 2014 5:45 pm
 
Forum: Investing - Theory, News & General
Topic: Why does Vanguard use average return iso compound annual?
Replies: 99
Views: 4078

Re: Why does Vanguard use average return iso compound annual

The SEC instructions are this: calculate the Fund's average annual total return by finding the average annual compounded rates of return This is mixing up two different definitions, so it's confusing. They are not different definitions, they are first the general and then the specific. They are jus...
by Jack
Sat Apr 12, 2014 4:05 pm
 
Forum: Investing - Theory, News & General
Topic: Why does Vanguard use average return iso compound annual?
Replies: 99
Views: 4078

Re: Why does Vanguard use average return iso compound annual

I maintain that the vast majority of people would define average as the arithmetic mean, even if they wouldn't know the term arithmetic mean. I don't know why you would think that. Have you taken a poll? To me arithmetic mean makes no sense in this context. It tells you nothing useful. The geometri...
by Jack
Sat Apr 12, 2014 1:21 pm
 
Forum: Investing - Theory, News & General
Topic: Why does Vanguard use average return iso compound annual?
Replies: 99
Views: 4078

Re: Do you think the biotech sector will be hurt long term?

livesoft wrote:I liked this report about a certain flu drug:

"Millions wasted …"
http://www.bbc.com/news/health-26954482

Turns out that Gilead was the developer of Tamiflu and receives royalties from Roche. The royalties for Tamiflu amounted to more than half of Gilead's revenue in some years.
by Jack
Sat Apr 12, 2014 11:41 am
 
Forum: Investing - Theory, News & General
Topic: Do you think the biotech sector will be hurt long term?
Replies: 32
Views: 1646

Re: Wife to work as a Contractor - Advice needed

She will not be able to deduct commuting expenses unless she has a home office. If she is not working from home, then her place of business is the place she works. You can't deduct commuting expenses to your place of work, the same as a regular employee, although she can deduct travel expenses if sh...
by Jack
Sat Apr 12, 2014 1:37 am
 
Forum: Personal Finance (Not Investing)
Topic: Wife to work as a Contractor - Advice needed
Replies: 30
Views: 2040

Re: Why does Vanguard use average return iso compound annual

The SEC has apparently decided to do away with logic and redefine the meaning of average and investment companies apparently have caved in ... I speak up when the SEC, against all logic, redefines average to mean anything but, and I would like to see the investment industry do the same. The SEC isn...
by Jack
Sat Apr 12, 2014 1:14 am
 
Forum: Investing - Theory, News & General
Topic: Why does Vanguard use average return iso compound annual?
Replies: 99
Views: 4078

Re: Tax deductions from charities

You are responsible for your tax return and its claimed deductions, not what some third party web site tells you. The IRS is very clear that the exemption for benefits received is limited to annual memberships of $75 or less. Perhaps some organizations are considering that to be $75 per person and i...
by Jack
Fri Apr 11, 2014 2:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax deductions from charities
Replies: 31
Views: 1620

Re: Tax deductions from charities

I don't know. It's common practice among non profit museums for the entire basic family membership to be 100% tax deductible. Perhaps it's like synagogue or church dues? That is not the case. The IRS only allows you to deduct the portion that is not a direct benefit to the donor. For example, you c...
by Jack
Fri Apr 11, 2014 2:36 am
 
Forum: Personal Finance (Not Investing)
Topic: Tax deductions from charities
Replies: 31
Views: 1620

Re: Do you think the biotech sector will be hurt long term?

I am sure there are other avenues that could be pursued. If you gave the same subsidy to a life saving drug that you give to a luxury electric sports car, that would help the price by $7500 or so... The pharmaceutical industry is already the most subsidized business in the world. Setting aside for ...
by Jack
Thu Apr 10, 2014 7:31 pm
 
Forum: Investing - Theory, News & General
Topic: Do you think the biotech sector will be hurt long term?
Replies: 32
Views: 1646

Re: Expensive med. test not covered by insurance

$5 huh? The sample has to be shipped to the testing facility, handled by a technician, who is probably under management, there are secretaries, insurance costs for malpractice, reports to be generated, disposal costs of the blood/urine and container. If all of that is contained in the $5 I would ha...
by Jack
Wed Apr 09, 2014 1:48 pm
 
Forum: Personal Consumer Issues
Topic: Expensive med. test not covered by insurance
Replies: 74
Views: 3540

Re: Expensive med. test not covered by insurance

As is typical in the U.S. medical system, you are being gouged. As indicated in this article, http://www.nytimes.com/2013/05/21/opinion/the-outrageous-cost-of-a-gene-test.html the true cost of genetic testing is about a nickel a gene. They could sequence all 20,000 of your genes for about $1000. But...
by Jack
Wed Apr 09, 2014 1:19 am
 
Forum: Personal Consumer Issues
Topic: Expensive med. test not covered by insurance
Replies: 74
Views: 3540

Re: Help me understand Michael Lewis' "Flash Boys"

Again, once you make a choice to have fragmented markets (which can be defended) under continuous trading (good luck outlawing it), there's no stopping the speed race. That's true, but you are assuming your conclusion, otherwise known as begging the question. Your assumption is that continuous trad...
by Jack
Tue Apr 08, 2014 5:38 pm
 
Forum: Investing - Theory, News & General
Topic: Help me understand Michael Lewis' "Flash Boys"
Replies: 164
Views: 8297

Re: The Unthinkable Disaster: What If Your Account Disappear

Mutual fund assets are held by a custodian, a separate firm. Vanguard uses JP Morgan Chase, which is in that business. Would that be the same JP Morgan Chase who illegally removed money from customer accounts in the MF Global case? Customers are still fighting to get their money back. They may neve...
by Jack
Mon Apr 07, 2014 2:15 am
 
Forum: Investing - Help with Personal Investments
Topic: The Unthinkable Disaster: What If Your Account Disappeared?
Replies: 43
Views: 4398

Re: Best ways to show daily news to 9 year old

Exposing your child to TV news should be considered child abuse. Don't afflict your child with your own bad habits.

Get a couple of tablets and read together with your child from more selective news sites, including local news.
by Jack
Sun Apr 06, 2014 9:53 pm
 
Forum: Personal Consumer Issues
Topic: Best ways to show daily news to 9 year old
Replies: 28
Views: 1909

Re: Do I need an accountant? Small business with 55 k in rev

Lafder wrote:Any home office deductions will be recaptured when you sell your home. So it may or may not be worth the hassle to declare them.

The new simplified home office deduction option for 2013 allows $5 per square foot up to 300 square feet. No depreciation and no recapture involved.
by Jack
Sun Apr 06, 2014 9:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do I need an accountant? Small business with 55 k in revenue
Replies: 8
Views: 412

Re: Gordon equation-stock buybacks

The Modigliani-Milller response to that is if the shareholder sells stock in proportion to the buyback, and reinvests the money received in a diversified portfolio , that's the same as having received a dividend. That is not what M&M say. You keep misrepresenting M&M's work. In fact, approp...
by Jack
Sun Apr 06, 2014 2:50 pm
 
Forum: Investing - Theory, News & General
Topic: Gordon equation-stock buybacks
Replies: 11
Views: 747

Re: Help me understand Michael Lewis' "Flash Boys"

Asynchronous does not mean that there is no timing involved. In an asynchronous design, the timing is quite complex and subject to design errors. That is why almost all digital circuits use synchronous logic today. Asynchronous just means that independent computational units run at independent speed...
by Jack
Sun Apr 06, 2014 1:10 pm
 
Forum: Investing - Theory, News & General
Topic: Help me understand Michael Lewis' "Flash Boys"
Replies: 164
Views: 8297

Re: Gordon equation-stock buybacks

You should be aware that Modigliani and Miller amongst others have pretty much answered your objections. Modigliani and Miller is a toy model with some important simplifying assumptions suitable for Econ 101. It assumes that there is only one stock in the universe, that stock buybacks occur at fair...
by Jack
Sat Apr 05, 2014 4:44 pm
 
Forum: Investing - Theory, News & General
Topic: Gordon equation-stock buybacks
Replies: 11
Views: 747

Re: Help me understand Michael Lewis' "Flash Boys"

From NASDAQ: The NASDAQ Opening Cross process means that all investors have access to the same information and their orders get the same treatment. This brings fairness and transparency into the marketplace and that can be a highly active time of the trading day. Gee, why can't we have fairness and ...
by Jack
Sat Apr 05, 2014 2:55 pm
 
Forum: Investing - Theory, News & General
Topic: Help me understand Michael Lewis' "Flash Boys"
Replies: 164
Views: 8297

Re: Why is Joe Brennan defending high frequency trading?

Gus Sauter said this a couple years ago “We’ve measured our transaction costs and over the past 15 years, they’ve been cut by about 60 percent,” Sauter said. “That results in hundreds of millions of dollars a year in savings to investors in our funds.” Fifteen years ago quotes were fractional in wh...
by Jack
Sat Apr 05, 2014 1:48 am
 
Forum: Investing - Theory, News & General
Topic: Why is Joe Brennan defending high frequency trading?
Replies: 54
Views: 3501

Re: Why is Joe Brennan defending high frequency trading?

Wow. Aside from the mistakes regarding Jack Brennan and Joe Brennan, this strikes me as quite political. Sorry about the name confusion. As cfs kindly pointed out above, McNabb actually replaced Brennan a while back. But aside from that, pointing out facts is now considered political? It is well do...
by Jack
Fri Apr 04, 2014 11:31 pm
 
Forum: Investing - Theory, News & General
Topic: Why is Joe Brennan defending high frequency trading?
Replies: 54
Views: 3501

Re: Why is Vanguard defending high frequency trading?

manwithnoname wrote:I think its John Brennan not Joe Brennan.

Sorry about the confusion. Joe Brennan is cited from the Bloomberg article in the original post talking about HFT. He is the head of the Equity Index Group at Vanguard overseeing 80 funds. John Brennan is the CEO.
by Jack
Fri Apr 04, 2014 7:39 pm
 
Forum: Investing - Theory, News & General
Topic: Why is Joe Brennan defending high frequency trading?
Replies: 54
Views: 3501

Re: Why is Vanguard defending high frequency trading?

Why is Vanguard defending high frequency trading? Vanguard is not defending high frequency trading. Joe Brennan, CEO of Vanguard, is defending high frequency trading (albeit with some reservations). Joe Brennan also defends enormous compensation packages for CEOs (he just happens to be one). He als...
by Jack
Fri Apr 04, 2014 6:54 pm
 
Forum: Investing - Theory, News & General
Topic: Why is Joe Brennan defending high frequency trading?
Replies: 54
Views: 3501

Re: Help me understand Michael Lewis' "Flash Boys"

Another tactic co-located high frequency traders use is quote stuffing. To do this, they flood the exchange with phony orders that they will later withdraw, maybe milliseconds later. The idea is that lots of orders at the same price make the price "sticky", giving them a few more milliseco...
by Jack
Fri Apr 04, 2014 3:11 pm
 
Forum: Investing - Theory, News & General
Topic: Help me understand Michael Lewis' "Flash Boys"
Replies: 164
Views: 8297

Re: Help me understand Michael Lewis' "Flash Boys"

Here is one way it works. Let's say the guy across the street from your house is selling his car. He has a sign on it that says "First one to show up with cash in hand gets it." You decide to take up that offer and head for his door, but your next door neighbor, a high frequency car trader...
by Jack
Fri Apr 04, 2014 1:53 pm
 
Forum: Investing - Theory, News & General
Topic: Help me understand Michael Lewis' "Flash Boys"
Replies: 164
Views: 8297

Re: Separate Health Insurance For 19 Year Old

It's perhaps worth mentioning that insurance brokers don't get commissions on student health plans.
by Jack
Sun Mar 09, 2014 4:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Separate Health Insurance For 19 Year Old
Replies: 41
Views: 1599

Re: Separate Health Insurance For 19 Year Old

http://www.uhs.wisc.edu/ship/faqs.shtml#1 How is SHIP affected by the Affordable Care Act (ACA)? SHIP coverage already equals or exceeds the level of coverage for student health plans under the ACA and satisfies the individual mandate. Don't know how it can satisfy the mandate when it has a pre-ex ...
by Jack
Sun Mar 09, 2014 2:55 am
 
Forum: Personal Finance (Not Investing)
Topic: Separate Health Insurance For 19 Year Old
Replies: 41
Views: 1599

Re: second part of the series on preference for cash dividen

Keep in mind that the interests of taxable and non-taxable investors may differ on this issue. About 70% of shares are held in tax-deferred acccounts but a vocal taxable minority strongly prefer corporate dividend policies that are favorable to themselves. Some insist that there is zero, zip, nada, ...
by Jack
Sat Mar 08, 2014 11:59 pm
 
Forum: Investing - Theory, News & General
Topic: second part of the series on preference for cash dividends
Replies: 13
Views: 1089

Re: OMG, There Goes Coinstar?

If I were really cranky I'd save all my post-1982 pennies ('cause they're mostly zinc) for years and years hoping someday I'd have to pay some unjust charge, solely so I could pile all those worthless little metal disks on the hapless county clerk's, who personally would have had nothing to do with...
by Jack
Sat Mar 08, 2014 7:18 pm
 
Forum: Personal Consumer Issues
Topic: OMG, There Goes Coinstar?
Replies: 38
Views: 3834

Re: OMG, There Goes Coinstar?

If I were really cranky I'd save all my post-1982 pennies ('cause they're mostly zinc) for years and years hoping someday I'd have to pay some unjust charge, solely so I could pile all those worthless little metal disks on the hapless county clerk's, who personally would have had nothing to do with...
by Jack
Sat Mar 08, 2014 7:08 pm
 
Forum: Personal Consumer Issues
Topic: OMG, There Goes Coinstar?
Replies: 38
Views: 3834

Re: OMG, There Goes Coinstar?

I can't fathom that anyone would pay nearly 10% for this service - but then I'm a Frugal Investor. :wink: If you exchange your coins for gift cards, there is no fee. For example Home Depot, Staples, Sears, JCPenny, Amazon, iTunes, etc. May be handier than finding a bank that will take your coins.
by Jack
Sat Mar 08, 2014 6:44 pm
 
Forum: Personal Consumer Issues
Topic: OMG, There Goes Coinstar?
Replies: 38
Views: 3834

Re: second part of the series on preference for cash dividen

[OT comments removed by admin LadyGeek]
by Jack
Sat Mar 08, 2014 4:59 pm
 
Forum: Investing - Theory, News & General
Topic: second part of the series on preference for cash dividends
Replies: 13
Views: 1089

Re: Paying $1,000/yr to Vanguard ! Please Help Me

Mazz wrote:[OT comments removed by admin LadyGeek]

There already is one called the Thrift Savings Plan that is almost free, only 0.027%, but you have to work for the federal government to get access.
by Jack
Sat Mar 08, 2014 4:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Paying $1,000/yr to Vanguard ! Please Help Me
Replies: 40
Views: 6693

Re: second part of the series on preference for cash dividen

I believe that total return strategies when properly executed will outperform over the long haul in after tax dollars which is why I do it. But you are in a distinct minority as a taxable shareholder. Up to 70% of shares are held in tax-deferred accounts such as pensions, 401(k)s, IRAs, and endowme...
by Jack
Fri Mar 07, 2014 4:03 pm
 
Forum: Investing - Theory, News & General
Topic: second part of the series on preference for cash dividends
Replies: 13
Views: 1089

Re: S-Corp worth it given my financial situation?

As an S-Corp your W-2 salary would be subject to employee and employer sides of FICA. If your combined compensation exceeds the FICA max, I believe you can get the excess employee social security taxes back but not the excess employer taxes. Your medicare payments will be limited to your W-2 salary...
by Jack
Thu Mar 06, 2014 3:25 am
 
Forum: Personal Finance (Not Investing)
Topic: S-Corp worth it given my financial situation?
Replies: 16
Views: 972

Re: Adventurous Grand Canyon Trip

You can still jump into Colorado if you hike to the bottom of the Canyon, but you'll probably either die of hypothermia or drown in the swift current. How much do you know about this anyway? Huh? What? I've spent weeks in the Canyon at a time and traveled its length hundreds of miles and swam in it...
by Jack
Thu Mar 06, 2014 12:41 am
 
Forum: Personal Consumer Issues
Topic: Adventurous Grand Canyon Trip
Replies: 18
Views: 1081

Re: Get ready for the Dow at 6,000 by 2016: Pro

What happens if I take the mean of Harry Dent Dow 6000 and Kevin Hasset Dow 36,000?

Should I use the arithmetic mean or the geometric mean or the weighted mean?

How do you take a "weighted" mean of two airheads? Is it zero?
by Jack
Tue Mar 04, 2014 3:00 pm
 
Forum: Investing - Theory, News & General
Topic: Get ready for the Dow at 6,000 by 2016: Pro
Replies: 46
Views: 4498

Re: Paying IRS taxes with a credit card when e-filing

If your credit card charges a 1.87% fee but rewards are 2.00%, then you save 13 basis points by using your card. On a $10,000 tax bill this earns you $13. How much do you value your time? I would be inclined to just write a check.
by Jack
Sun Mar 02, 2014 6:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Paying IRS taxes with a credit card when e-filing
Replies: 7
Views: 631

Re: Stocks that Don't Pay Dividends - Greater Fool Driven?

So we agreed, buybacks have exactly the same effect as dividends in terms of returning cash to shareholders? No, as I stated above, I don't agree with that at all, which is why I prefer dividends to buybacks. Modigliani-Miller, in particular Dividend Irrelevance Theory, is a useful first order appr...
by Jack
Sun Mar 02, 2014 2:03 pm
 
Forum: Investing - Theory, News & General
Topic: Stocks that Don't Pay Dividends - Greater Fool Driven?
Replies: 73
Views: 4283

Re: Stocks that Don't Pay Dividends - Greater Fool Driven?

Buybacks move the share price up ... No wonder people seem to be obsessed with buybacks, they believe buybacks increase share price. Presumably they get equally excited about stock splits. Ceterus paribus, a buyback does increase the stock price because it increases the EPS. One cannot simultaneous...
by Jack
Sun Mar 02, 2014 12:51 pm
 
Forum: Investing - Theory, News & General
Topic: Stocks that Don't Pay Dividends - Greater Fool Driven?
Replies: 73
Views: 4283

Re: Stocks that Don't Pay Dividends - Greater Fool Driven?

ogd wrote: Buybacks move the share price up ...

No wonder people seem to be obsessed with buybacks, they believe buybacks increase share price. Presumably they get equally excited about stock splits.
by Jack
Sat Mar 01, 2014 1:53 pm
 
Forum: Investing - Theory, News & General
Topic: Stocks that Don't Pay Dividends - Greater Fool Driven?
Replies: 73
Views: 4283

Re: Stocks that Don't Pay Dividends - Greater Fool Driven?

In the absence of tax effects (such as a difference between dividend tax rates and capital gains) then share buybacks have an identical effect as dividends ... Also they increase the share price This is incorrect. They don't have identical effects and buybacks don't increase share price. Dividends ...
by Jack
Sat Mar 01, 2014 1:11 pm
 
Forum: Investing - Theory, News & General
Topic: Stocks that Don't Pay Dividends - Greater Fool Driven?
Replies: 73
Views: 4283

Re: Stocks that Don't Pay Dividends - Greater Fool Driven?

But you didn't answer my question as how to get dividends out of Apple if Apple is hoarding dividends. No. I answered your question. Again, you are confusing your cash flow with the company's cash flow. Personal income to you is not the same as distributing dividends from the company. You wish to o...
by Jack
Sat Mar 01, 2014 12:50 am
 
Forum: Investing - Theory, News & General
Topic: Stocks that Don't Pay Dividends - Greater Fool Driven?
Replies: 73
Views: 4283

Re: Are 20 somethings handicapped bc of inflation and little

newbogleb wrote:For every $1 of Social Security tax paid this year, the benefit that will be paid in the future is $0.75. Source: social security report sent to me a few years ago.

You might want to refresh your memory. That is not what the social security report said at all.
by Jack
Fri Feb 28, 2014 12:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Are 20 somethings handicapped bc of inflation and little SS?
Replies: 162
Views: 10275

Re: Stocks that Don't Pay Dividends - Greater Fool Driven?

All things being equal - I would rather realize taxable income or gains based on my preferred schedule by selling shares. Rather than be forced to pay taxes on a regular schedule through dividends. Why - precisely - would someone NOT want control over when they realize taxable income-gains from the...
by Jack
Thu Feb 27, 2014 11:50 pm
 
Forum: Investing - Theory, News & General
Topic: Stocks that Don't Pay Dividends - Greater Fool Driven?
Replies: 73
Views: 4283
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