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Re: M* caution on emerging markets dividend ETFs

A dividend-weighted ETF such as WisdomTree's DEM (large-cap) or DGS (small-cap) thus has distorted allocations compared to the countries' market capitalization, and these allocations may not have economic significance. I don't understand your point. Are you saying that differing from market cap cou...
by Ketawa
Sun Apr 20, 2014 9:41 am
 
Forum: Investing - Theory, News & General
Topic: M* caution on emerging markets dividend ETFs
Replies: 15
Views: 1207

Re: Value & Growth - 20 Years In Style

There is still a puzzle here though. Why did Vanguard growth beat Vanguard value, especially over a period in which DFA large value beat Vanguard growth by a large margin? Both Vanguard value and DFA value claim to be passively managed funds that in some sense just buy all the value stocks in the r...
by Ketawa
Fri Apr 18, 2014 11:31 am
 
Forum: Investing - Theory, News & General
Topic: Value & Growth - 20 Years In Style
Replies: 14
Views: 1084

Re: New Amex EveryDay credit card

I'm not going to bother. The Points Guy has a breakdown here. http://thepointsguy.com/2014/03/american-express-introduces-new-everyday-cards-with-20-50-bonuses-and-full-membership-rewards-earning/ The points earning rates are pretty analagous to the AMEX Blue Cash cards, e.g. 3% points rate at groce...
by Ketawa
Thu Apr 17, 2014 9:50 am
 
Forum: Personal Consumer Issues
Topic: New Amex EveryDay credit card
Replies: 7
Views: 1125

Re: Paying car loan vs. Investing in Roth IRA

You aren't putting money into a depreciating asset by paying off a car loan. You already have $X in that depreciating asset regardless of whether you have a loan against it. The best option might be to refinance the car loan into a lower interest rate if you can find a lender where you will be eligi...
by Ketawa
Wed Apr 16, 2014 11:09 am
 
Forum: Personal Finance (Not Investing)
Topic: Paying car loan vs. Investing in Roth IRA
Replies: 6
Views: 356

Re: Why is mid-cap discussed so much less than large and sma

Why is there so much discussion of large- and small-cap investing, diversification, tilting, etc. - while mid-cap is hardly discussed at Why isn't there much discussion of the 8th stock decile, market-cap wise? I dunno, why isn't there much discussion of the 4th size decile? These are all bits of t...
by Ketawa
Tue Apr 15, 2014 1:33 pm
 
Forum: Investing - Theory, News & General
Topic: Why is mid-cap discussed so much less than large and small?
Replies: 19
Views: 1247

Re: Ugh, Another Mortgage Question - Help Me Decide

I would also go with the 5/5 ARM. It will save you ~$1100 in interest per year compared to the 15 year fixed. With the prorated $3200 closing costs, the break even is about 18 months. Add in the better cash flow and it seems like a good choice.
by Ketawa
Tue Apr 15, 2014 10:53 am
 
Forum: Personal Finance (Not Investing)
Topic: Ugh, Another Mortgage Question - Help Me Decide
Replies: 10
Views: 1068

Re: SCV premium is a history/math story, its not scientific

well I guess that it's purely a coincidence that A) After FF original study showing size and value premiums for 63-92, that we now have out of sample tests both before 63 and after 92 that show not only the same premiums but similar size. Best wishes Larry I'm not sure the data shows this after 92....
by Ketawa
Tue Apr 15, 2014 9:13 am
 
Forum: Investing - Theory, News & General
Topic: SCV premium is a history/math story, its not scientific
Replies: 46
Views: 2267

Re: 79% of bachelors degree in tax deductions/credits

You can only take one of the AOC, LLC, and the Tuition and Fees Deduction in a given year. AOC is always better than LLC. The LLC may or may not be better than the Tuition and Fees Deduction depending on the taxpayer's marginal tax rate. From Pub 970: No Double Benefit Allowed You cannot do any of t...
by Ketawa
Mon Apr 14, 2014 11:51 am
 
Forum: Personal Finance (Not Investing)
Topic: delete this(edited)
Replies: 17
Views: 1544

Re: Need Ear Bud Recommendation

Skullcandy 50/50 earbuds work really well for me. Another nice thing is they have a lifetime warranty. My earbuds inevitably stop working correctly since I wear them working out. The headphone jack gets messed up, or the in-line controls stop working correctly. Skullcandy makes it easy to replace th...
by Ketawa
Mon Apr 14, 2014 10:40 am
 
Forum: Personal Consumer Issues
Topic: Need Ear Bud Recommendation
Replies: 27
Views: 1428

Re: Tax Managed International

I own VEA. I predict that going forward, VEA will have 100% qualified dividends. If that is true, would that satisfy the folks who are speculating? What is the basis for that prediction? As I pointed out, the former Developed Markets Index (VDMIX) did not have 100% qualified dividend income. Vangua...
by Ketawa
Fri Apr 11, 2014 8:01 pm
 
Forum: Investing - Theory, News & General
Topic: Tax Managed International
Replies: 23
Views: 1181

Re: Tax Managed International

Tax-managed international has always sought to track the index. This is from an SEC filing back in 2005: The Fund purchases stocks included in the Morgan Stanley Capital International/(R)/ Europe, Australasia, Far East (MSCI/(R)/ EAFE/(R)/)Index, which is made up of approximately 1,066 common stock...
by Ketawa
Fri Apr 11, 2014 7:04 pm
 
Forum: Investing - Theory, News & General
Topic: Tax Managed International
Replies: 23
Views: 1181

Re: Best option for high interest earning no fee checking?

Care to explain how **you** do this? I just looked at the santander bank account... 20$ a month paid to you, for 2 billpayments, and a direct deposit? Wat? I use my USAA checking account segregated from my main checking account to make things simpler. $5000 stays on Mango savings account $5000 stay...
by Ketawa
Fri Apr 11, 2014 6:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Best option for high interest earning no fee checking?
Replies: 19
Views: 1638

Re: Best option for high interest earning no fee checking?

If you're willing try something complex, you could use a combination of Mango, Union Plus, and Santander accounts. You have to jump through a bunch of hoops, but once you set it up it is automatic. I tie up $12.5k in them for over 6% composite yield in FDIC insured accounts for my emergency fund. Se...
by Ketawa
Fri Apr 11, 2014 3:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Best option for high interest earning no fee checking?
Replies: 19
Views: 1638

Re: taxes - grad student - to claim as dep or not

Re: whether you file separate 1040s...I'm not familiar with this subject, but why would it ever make sense to include a child's income on your own return? Your marginal tax rate is almost certainly higher. Plus your son would get practice with filing his own taxes. Edit -- oh wait, you can't report ...
by Ketawa
Fri Apr 11, 2014 3:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: taxes - grad student - to claim as dep or not
Replies: 4
Views: 353

Re: taxes - grad student - to claim as dep or not

Use IRS Pub 17 to determine if he is actually your dependent. If you can claim him as a dependent, you should, since he is barred from taking a personal exemption if you can claim him as a dependent regardless of whether you actually claim him as a dependent. Whether or not he needs to file a separa...
by Ketawa
Fri Apr 11, 2014 2:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: taxes - grad student - to claim as dep or not
Replies: 4
Views: 353

Re: Tax Managed International

Murray Boyd wrote:It always bugged me that Tax-Managed International excluded Canada, so there's that at least.


So does the new version of the fund. It follows the FTSE Developed ex North America Index.
by Ketawa
Thu Apr 10, 2014 11:33 pm
 
Forum: Investing - Theory, News & General
Topic: Tax Managed International
Replies: 23
Views: 1181

Re: Tax Managed International

The QDI has been reduced from 100 to 75 using latest figures, not some mythical future event. Got link? As far as I can tell, the information is no longer available on the standard Vanguard QDI pages. Tax-Managed International has been wiped from the tables and Developed Markets Index shows 100% si...
by Ketawa
Thu Apr 10, 2014 1:59 pm
 
Forum: Investing - Theory, News & General
Topic: Tax Managed International
Replies: 23
Views: 1181

Re: emerging markets should they be in your portfolio

Since I don't believe I can get any advantage by rebalancing to an arbitrarily determined fixed percentage of EM instead of using market cap weights, I use VSS for all my international small cap exposure.
by Ketawa
Thu Apr 10, 2014 12:35 pm
 
Forum: Investing - Theory, News & General
Topic: emerging markets should they be in your portfolio
Replies: 14
Views: 1506

Re: Netflix & Red Box

House of Cards is overrated IMO. The second season especially goes downhill after the fourth episode. Parks & Rec is one of the best comedies on TV and the first 5 seasons are available streaming. Arrested Development is another excellent comedy. Top of the Lake is a little different, kind of a ...
by Ketawa
Wed Apr 09, 2014 9:55 am
 
Forum: Personal Consumer Issues
Topic: Netflix & Red Box
Replies: 26
Views: 1498

Re: Why shouldn't i invest mostly in value funds?

avalpert wrote:
Ketawa wrote:I do (VBR, PXSV, and VSS).

VSS is most certainly not a value fund


You're right, I'm going off how it looked a couple years ago on Morningstar, I think. In the past it showed up a little more in the value style boxes. Now it is right in the middle of blend.
by Ketawa
Tue Apr 08, 2014 10:08 pm
 
Forum: Investing - Theory, News & General
Topic: Why shouldn't i invest mostly in value funds?
Replies: 22
Views: 1487

Re: Why pay off your house?

Another question no one has addressed.... Where is this big tax deduction everyone is talking about with a mortgages??? Specifically... How much money are you saving on your taxes? And how much interest are you paying? No one that talks tax deduction ever answers this question when I pose it. Is th...
by Ketawa
Tue Apr 08, 2014 9:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why pay off your house?
Replies: 119
Views: 8619

Re: Why shouldn't i invest mostly in value funds?

I do (VBR, PXSV, and VSS).
by Ketawa
Tue Apr 08, 2014 8:30 pm
 
Forum: Investing - Theory, News & General
Topic: Why shouldn't i invest mostly in value funds?
Replies: 22
Views: 1487

Re: Why pay off your house?

It's interesting to me that as often as this topic comes up, people continually conflate paying off a mortgage vs. paying down a mortgage. These two things are not the same. A mortgage has both a cost and a risk. The cost is the amount of interest you pay. The risk is a type of liquidity risk--if y...
by Ketawa
Tue Apr 08, 2014 1:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why pay off your house?
Replies: 119
Views: 8619

Re: What's a good credit score?

I have been applying for lots of new credit cards for the signup bonuses. Four of them now show up on my credit report. My Credit Karma score went down 46 points from December to March. Over the same time period, my official FICO score reported through Barclaycard went down only 11 points. The Vanta...
by Ketawa
Mon Apr 07, 2014 10:46 pm
 
Forum: Personal Consumer Issues
Topic: What's a good credit score?
Replies: 25
Views: 2069

Re: Advice for [Religious Investor]

An FDIC insured 0% checking account seems like the best conventional choice to me. This would serve the role of reducing portfolio risk to an acceptable level. If acceptable, the investor might want to consider a tilt to value and/or small caps to compensate for the fact that the only source of retu...
by Ketawa
Mon Apr 07, 2014 10:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice for [Religious Investor]
Replies: 39
Views: 3165

Re: 15 year vs 30 year fixed

Actually, a $25k 401k loan probably puts the OP close to having 20% in equity. OP should strongly consider this since taking a $25k loan from the 401k has the ability to save massive amounts in interest costs over the life of the loan. The rates given for 15 year and 30 year fixed are higher than no...
by Ketawa
Mon Apr 07, 2014 2:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: 15 year vs 30 year fixed
Replies: 62
Views: 5805

Re: 15 year vs 30 year fixed

Since you are putting only 10% down, the PenFed ARM isn't an option. If you have eligibility to join NFCU through a family member, they also have 5/5 ARMs with similar conditions as the PenFed, but they do not have the closing cost promotion. NFCU loans are available at 90% LTV with no PMI.
by Ketawa
Mon Apr 07, 2014 2:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: 15 year vs 30 year fixed
Replies: 62
Views: 5805

Re: Student Loans -- a surcharge on your job?

At the very least, send PenFed your car title and convert that interest rate to 2.49%. :sharebeer
by Ketawa
Sun Apr 06, 2014 12:09 am
 
Forum: Investing - Help with Personal Investments
Topic: Student Loans -- a surcharge on your job?
Replies: 26
Views: 1627

Re: 15 year vs 30 year fixed

I would second the suggestion for an ARM. The 5/5 ARM from PenFed is currently 2.875%, can only rise by up to 2% for a max of 4.875% when the rate resets the first time, the closing cost promotion is back, and you get the benefit of a 30-year amortization. 5 or 10 years from now, if it makes sense, ...
by Ketawa
Sun Apr 06, 2014 12:05 am
 
Forum: Personal Finance (Not Investing)
Topic: 15 year vs 30 year fixed
Replies: 62
Views: 5805

Re: Gordon equation-stock buybacks

A stock buyback is a risky market-timing, stock-picking exercise. Rather than allow the shareholder to re-invest dividends efficiently in the diversified total stock market, the CEO makes a decision for you to take all of your dividends and invest them all in one stock and at a price of his timing....
by Ketawa
Sat Apr 05, 2014 11:57 pm
 
Forum: Investing - Theory, News & General
Topic: Gordon equation-stock buybacks
Replies: 11
Views: 758

Re: somoene filed a return with my spouses SSN?

This is another excellent reason to adjust your withholding so you don't get a refund. JW I don't think that makes a difference since the fraudster can just fudge the numbers to give big returns. It's too bad the IRS isn't cracking down on this more. The idea is that if you are owed a refund and so...
by Ketawa
Sat Apr 05, 2014 11:51 am
 
Forum: Personal Finance (Not Investing)
Topic: somoene filed a return with my spouses SSN?
Replies: 22
Views: 1779

Re: Paying student loans vs Losing compounding interest

No matter what the dollar might be worth in the future, the more of them you have, the more stuff you will be able to buy and the more bills you will be able to pay. So the investment plan that has the best prospects to give you the most dollars for retirement is still the best plan. Do you also re...
by Ketawa
Thu Apr 03, 2014 5:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Paying student loans vs Losing compounding interest
Replies: 41
Views: 2605

Re: Thought experiment: a "diversification" joke

This is why I don't buy the arguments for holding separate Europe and Pacific funds or overweighting Emerging Markets. For Europe/Pacific, I see no reason to expect constant percentages to outperform a broad Developed Markets fund. For Emerging Markets, why not just hold them at market weight and in...
by Ketawa
Thu Apr 03, 2014 1:45 pm
 
Forum: Investing - Theory, News & General
Topic: Thought experiment: a "diversification" joke
Replies: 8
Views: 1026

Re: "Investing" in gift cards

the 200$ signup bonus on a card isn't tax free usually Do you have a source for this? Everything I have read indicates that as long as the bonus is in exchange for some kind of purchase on the card, the bonus isn't taxable. Example here. This is how the credit cards signup bonuses always operate. Y...
by Ketawa
Thu Apr 03, 2014 9:18 am
 
Forum: Personal Finance (Not Investing)
Topic: "Investing" in gift cards
Replies: 32
Views: 2645

Re: Higher Returns at Lower Risk - please comment

Right now, since inception (1998) VG Small Value has returned 8.77%/yr; small growth has returned 8.92%/yr. A *portion* of the value underperformance was due to the exact timing of VG's switch from using S&P indices to using MSCI for these funds. The result was that the growth fund outperformed...
by Ketawa
Thu Apr 03, 2014 12:30 am
 
Forum: Investing - Theory, News & General
Topic: Higher Returns at Lower Risk - please comment
Replies: 55
Views: 5255

Re: Total International vs Pacific & European

Most portfolio's (especially non-Boglehead) have some sort of tilt whether it's small caps, value stocks, junk bonds...etc regardless of funds used (active or passive). Be assured that this is an "active" bet. Go ahead and call it "active", but here's a big difference between di...
by Ketawa
Wed Apr 02, 2014 9:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Total International vs Pacific & European
Replies: 17
Views: 1247

Re: Total International vs Pacific & European

Well, livesoft and ogd, forgive me for having an opinion based on actual data - results. I wasn't aware I needed qualifications to have an opinion and be foolish enough to post to actually ask for input. This board serves an extremely useful purpose until the occasional useless biased condescending...
by Ketawa
Wed Apr 02, 2014 9:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: Total International vs Pacific & European
Replies: 17
Views: 1247

Re: "Investing" in gift cards

I don't think it's worth it to stock up on them. Instead, get the AMEX Blue Cash Preferred and buy them at the grocery store. 6% back year round. All my Amazon purchases are with gift cards. The $75 annual fee is justified if you average over $208 per month. 6% cash back maxes out after $6000 in gro...
by Ketawa
Wed Apr 02, 2014 3:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: "Investing" in gift cards
Replies: 32
Views: 2645

Re: Total International vs Pacific & European

Having both Vanguard Pacific Index Fund Admiral and Vanguard European Index Fund Admiral as international exposure versus Vanguard Total International Admiral seems less risky with better results. As I am currently moving to an all Vanguard Admiral five fund portfolio, I am looking on what my inter...
by Ketawa
Wed Apr 02, 2014 2:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Total International vs Pacific & European
Replies: 17
Views: 1247

Re: Paying student loans vs Losing compounding interest

You are vastly overstating the case for investing in equities expected to return 8% when the option is available to earn 6.8% guaranteed. If there was a 1 year CD paying 6.8%, Bogleheads would be backing up the truck! All my fixed income would be in that CD. Do you also recommend investors be 100% e...
by Ketawa
Wed Apr 02, 2014 2:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: Paying student loans vs Losing compounding interest
Replies: 41
Views: 2605

Re: best vacuum cleaner

I have a Hoover bagless vacuum cleaner from my days with a carpeted apartment. It works very well and I have not experienced any issues. However, it rarely gets used now because I have... A Neato! It's an competitor to the Roomba. I love it. My condo has wood floors throughout and I couldn't stand t...
by Ketawa
Wed Apr 02, 2014 9:16 am
 
Forum: Personal Consumer Issues
Topic: best vacuum cleaner
Replies: 23
Views: 1653

Re: Paying student loans vs Losing compounding interest

We don't really know that it isn't feasible for them to max at least the equivalent of one 401(k) – possibly some in her SIMPLE and some in IRAs. We do know that it isn't feasible, since the OP said so. Freeing up the after-tax loan payment makes pre-tax money available for investing. Your example ...
by Ketawa
Wed Apr 02, 2014 2:21 am
 
Forum: Personal Finance (Not Investing)
Topic: Paying student loans vs Losing compounding interest
Replies: 41
Views: 2605

Re: Paying student loans vs Losing compounding interest

The example you posted is true for someone who maxes tax-advantaged savings. Relatively few people are in a position to do this, and the OP is not. Since we're talking about scenarios where investors aren't maxing their 401k, the freed-up payment in your example would be $245.70 pre-tax, which grows...
by Ketawa
Wed Apr 02, 2014 2:05 am
 
Forum: Personal Finance (Not Investing)
Topic: Paying student loans vs Losing compounding interest
Replies: 41
Views: 2605

Re: [High-frequency trading hurts regular customers]

Can someone clarify or provide a link to a good tutorial on how best to execute a trade to (a) get the optimal price and (b) avoid being front run by HFT. Someone said to use limit orders and someone else said not to. I'm confused. As an individual investor buying ETFs, don't worry about it. HFT wi...
by Ketawa
Tue Apr 01, 2014 3:37 pm
 
Forum: Investing - Theory, News & General
Topic: [High-frequency trading hurts regular customers]
Replies: 107
Views: 6263

Re: Accident in a rental car on government credit card

First, I didn't think the government would let one rent and drive a rental car unless they had taken a 3 week course in Rental Vehicle Renting and Driving Certification and then passed the test, too. So they should already know what to do. Second, look in the glove compartment and find the brochure...
by Ketawa
Tue Apr 01, 2014 2:28 pm
 
Forum: Personal Consumer Issues
Topic: Accident in a rental car on government credit card
Replies: 24
Views: 1314

Re: Changes to composition of TSP Lifecycle - More G Fund

I don't think the TSP Board predicts rising rates, so much as they recognize that investing in the F Fund is taking uncompensated risk compared to the G Fund. I wrote this last week. Go to the web site for each L Fund (for example, L 2020 ), and you can go into the past to view the allocations for L...
by Ketawa
Tue Apr 01, 2014 1:49 pm
 
Forum: Investing - Theory, News & General
Topic: Changes to composition of TSP Lifecycle - More G Fund
Replies: 3
Views: 218

Re: Paying student loans vs Losing compounding interest

When you're paying extra, you'll save the most interest and time in debt by paying off the higher rate debts first. However, when you take away the taxes that you're paying instead of investing that money for yourself, and lose the time for earning compound interest for the rest of your life on the...
by Ketawa
Tue Apr 01, 2014 12:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Paying student loans vs Losing compounding interest
Replies: 41
Views: 2605

Re: Paying student loans vs Losing compounding interest

For one thing, you should be using guaranteed returns on fixed income for the comparison, since the debt repayment is a guaranteed return. While I think you're right in theory, I don't think that matches how people make this choice in real life. People are always going to invest at some AA regardle...
by Ketawa
Tue Apr 01, 2014 12:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Paying student loans vs Losing compounding interest
Replies: 41
Views: 2605

Re: Paying student loans vs Losing compounding interest

Ketawa No 401k. And you are right. I won't be maxing tax advantaged accounts anytime soon. So you're saying get match from simple and then all extra money that would be going to high rate loans and once those are paid off then continue to put money into Tira/Roth? Yup! Once your high-rate loans are...
by Ketawa
Tue Apr 01, 2014 11:42 am
 
Forum: Personal Finance (Not Investing)
Topic: Paying student loans vs Losing compounding interest
Replies: 41
Views: 2605

Re: Paying student loans vs Losing compounding interest

Here's an example to illustrate the problem. The stock market has historically averaged around 10% or more over long periods of time. I'll use a much more conservative 8% to illustrate that the rate is not really as important as the Time lost. And we'll look at your highest student loan rate. 8% is...
by Ketawa
Tue Apr 01, 2014 11:39 am
 
Forum: Personal Finance (Not Investing)
Topic: Paying student loans vs Losing compounding interest
Replies: 41
Views: 2605
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