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Do a search on CCF in this sub-forum.

The answer is either yes or no, and is a topic of very active debate going back quite a while between Larry and Rick.

I have about 7% in emerging bonds. It is up 9.65% over the last 10 years. Down this year. Something is always winning in the short term and something is always losing. My domestic stocks are up this year. International not so much. Emerging bonds are down. US bonds are flat. Year to date annualized ...

When I get cash I generally get $100, and often because I am out and need some cash. Thus it immediately drops. Then it slowly gets spend on things over a couple of weeks. I often get to zero before I get more. Given the immediate drop and then average with zero, I'm guessing the average is somethin...

When it is known that the optimum asset allocation for a period can not be known except either in theory or in retrospect, isn't "tilt" or "splice and dice" portfolio just another form of active management? Back to your original question. The terms active management and passive ...

The efficacy of allocations with tilts is another topic altogether, and one debated many times on this forum. There's little point in another. The original question in this thread has likewise been beaten to death many times as well so little point in it either question. But both are zombie questio...

When it is known that the optimum asset allocation for a period can not be known except either in theory or in retrospect, isn't "tilt" or "splice and dice" portfolio just another form of active management? Back to your original question. The terms active management and passive ...

They define deviating from the market portfolio as "active management".

True and unfortunate as it leads to a definition almost devoid of usefulness.

Added, when used in the general press seems to always be used in a sloppy manner and so while used is not properly defined.

There is a wide range from pure passive to wildly active. The concern is not so much to use only pure passive, but to stay well away from wildly active. A pure passive strategy is one where you buy and then never tough the money (and no manager touches it for you). Cap weighted funds theoretically d...

My hat is off to you stay at home dads.

My wife stayed home many, but not all years. She's great with the kids, but she isn't so great at cooking, cleaning, scheduling, organizing. I do all that, and the groceries. I don't understand your question. LOL! Would your wife agree that you did all the cooking, cleaning, organizing, scheduling ...

Here's what I would like to add though. Do you know any families with a stay at home dad? How will your husband feel not contributing financially? How will he feel about taking on a unique role that has always been associated with the mother of the family? Perhaps he won't say anything about it but...

Excellent and very helpful responses! Thanks, everybody. I decided to go with the Marmot Precip on sale at REI through tomorrow for $65.73 including shipping (seems like quite a bargain- 31% off plus another $20 off if purchased by tomorrow, being returnable from a reputable company...just saying i...

New vehicle buying is quite exciting on this rotation - cars change a lot when your rotation period is around 12 years!

Yep, even buying a base or near base level car is a nice bump up.

Spend what you need to spend, not necessarily what you can afford to spend. By your calculation I can buy a very nice German luxury car. I bought a base model Subaru Forester which I will keep for at least 10 yeas. It does everything I need and does it reasonably well. The difference between the two...

I think right now our biggest concern is DH's transition from working to home life. He's great with the kids, but he isn't so great at cooking, cleaning, scheduling, organizing. Sometimes the issue is not that someone else is lacking in these areas but that they simply do things differently or have...

lindisfarne wrote: even better students are less well prepared When challenged you nit picked on the side issue of AP classes, rather than the substance of the challenge. When that failed you simply side stepped by changing your point to the non better students: The world may be flat at the top of t...

This isn't simply due to a higher % of the population going to college - even better students are less well prepared. That is a bit of an overly broad brush. Same for similar comments about kids getting out of college which we sometimes see. I'm a research scientist/engineer/mathematician depending...

I have for most of my life bought used cars. In the beginning as a student they were beaters. Then after college they were a few years old (did this twice, sold at 12 years old). Then one new one with a modest loan and large down payment. I would have continued with late model used, except that late...

FWIW: my daughter is about your age and bought a car about a year out of school. She is not in any position to work on her own car, does not understand how they work etc, and needed a reliable car for work. It was not terribly quick, but she found a dealer selling a one-year old Toyota Yaris with 10...

If you aren't absolutely sure that you are all set for retirement, I wouldn't save a nickel for college until retirement is completely taken care of. Remember, you can always get a college loan, but retirement loans are a lot harder to come by. :P But even beyond that, I wouldn't pay those prices f...

Anything else is suicidal speculation IMO

A little hyperbolic, no?

I can't say I'm excited about 1% real or so, but suicidal, really?

Just my take on this: you are making something simple more complicated than it needs to be. If you were making $25K a year, or if making $65K and had $200K in debt all this might be important. But as it is you are doing a lot of work for minimal benefit. At the rate you are going you can be done in ...

...sometimes parents paying full or nearly full price are paying for the discount. You will know if the government is paying. In the last two cases it looks like the school is paying but the funding can be a pass through from other parents to your kid. Also, low income students taking out six-figur...

People get all tangled up on the distinction between taking the existence of pensions and annuities into account (recommended) and taking them into account by capitalizing the income stream and counting that capitalization as a bond in the asset allocation (illogical)... We see that in a number of ...

I hear this a lot. My question is whether or not those students who pay less receive grants that pay a portion, or do the universities truly just lower the price for them? The bill lists the full price and a discount is also listed. The real price is then listed as the difference. In some cases the...

just_trailing wrote:How many of you follow this philosophy "Don't lock horns with knuckleheads"?

This is what my situation is concluding to...

And you can't have a rational discussion with an irrational person.

Best of luck!

How does one find builders or fixer uppers that will buy houses that need work, refurbish them, and then resell them? Dick Around here you take a small or medium sized house on any lot, or even a fairly big house if on a large lot and put a For Sale sign up. Well, they don't refurb them, they knock...

"Reduce your equity risk, your liquidity risk, your credit risk. Those are the three to reduce," he added. To answer your question: I'm a bit confused - anyone care to apply/clarify El-Erian's CNBC comments (below) to a TSM/TBM 3-Fund Portfolio? Liquidity risk is low in this portfolio, bu...

EmergDoc wrote:Sounds like a good way to trash your investment.

I rented a place after the previous tenant ran a day care. Carpet had some interesting colors.

OP, Johnathan Clement often wrote about reaching "critical mass". I would say this probably is a division between EARLY accumulators vs. LATE accumulators. Critical mass is the point one is making more in return from the portfolio per year vs. how much one is contributing to the portfolio...

Accumulator is anyone who is not a Decumulator. A Decumulator is someone with annual withdrawals of money from their portfolio or net worth for any reason. The portfolio can gain in net value because of investment returns, but there are no more outside additions to the portfolio. I tend to agree wi...

Accumulator is anyone who is not a Decumulator. A Decumulator is someone with annual withdrawals of money from their portfolio or net worth for any reason. The portfolio can gain in net value because of investment returns, but there are no more outside additions to the portfolio. Sounds pretty good...

I was looking at a newly built home in a good neighborhood with good schools. Do not predict moving somewhere else in the near future, but who knows. Currently have a 3 year old and another on the way. Unfortunately live in a higher cost location, so if I were to throw some numbers out, I think ren...

I didn't answer the poll. It's OK to return it if you bought it in good faith that you would keep it, and only through use did you find it did not meet expectations. And it meets the store's condition requirements. Think about it. When you buy an item you usually buy a sealed box. You trust their d...

If as you stated, the extra $10K comes with some risk that you will spend a lot of money and in fact not realize a benefit. Off hand this must be some special situation where there are only a few special buyers, otherwise a year is way to long. If you wait that long you have simply overpriced the pr...

Except in my case XYZ happens to be a professionally managed portfolio only in existence since 2009. I probably should have been more specific. That is ok. I did not mean to literally add treasuries. Just do it on paper. A similar approach is to just compute the Sharpe Ratio of each. Unfortunately ...

No.

See responses in other threads.

I suggest you add enough short term treasuries to which ever has the highest standard deviation so that both have the same standard deviation. The idea is to get both to (about) the same risk. Then you can compare returns. (Could normalize returns instead and compare risk). SD is of course not reall...

Just yesterday in the Sunday paper there was an article where an "expert" said that rising bond rates were positive for stocks! He has a 50% chance of being right. Rick Ferri Yeah, just to be careful I think I'll sell $100K in stocks and buy bonds. And sell $100K of bonds to buy stocks. T...

Just yesterday in the Sunday paper there was an article where an "expert" said that rising bond rates were positive for stocks! The story went that rising rates are bad in the short-intermediate run for bond funds, so as rates rise people will pull out of bond funds and put the money into ...

Complicating things are that private sector DB/ Final Salary schemes are under huge threat I believe-- I think IBM was the poster child for moving everyone to 'cash balance' schemes at a significant loss to some employees? Whether one counts it as future income, annuity, "bonds" this is a...

(2) Setting up some type of trust or LLC that would allow us to buy out my in-law's ownership percentage in the house over time. Can you clarify this point? I have seen this work a couple of ways. Most often the parents make a simple loan, most often with some interest rate. They take no ownership ...

Unless you can tell me the future I can't answer based on financial considerations.

Likely it also depends on where you are looking and possibly on what specific property you are interested in.

The best time to buy a house is often when you desire to own a home.

It should be considered in your estimate of future income needs (ie it lowers the estimate for what needs to come from your portfolio). It may effect your risk tolerance and ability to take risk. It most certainly is not a bond. You can't trade it. You can't leave to your children or charity. I pers...

I have tried headlight kits but the lights themselves just [stink --admin LadyGeek] . I will not sell this car as it is only in fair condition with high mileage. Will likely donate to charity. Based on responses, I should keep the car longer like maybe another year and then look to buy either a new...

There have been many such studies. The answer is that one method to another the difference in performance is tiny and random. Which does better is really just a matter of what time you look at. Change the time, some other method comes out on top, by a tiny margin. Pick any more or less standard meth...

hicabob wrote:There are some like my ex-biz partner who swore off stocks after one of the crashes (2000 crash in his case) and since then just use cd's. The fellow has many millions in cd's.

Sounds like he has no need for stocks.

Assuming you're confident the pension will be there in the future*, MANY will likely suggest that the pension: - should be treated as a future source of retirement income that reduces the amount of income that your retirement portfolio will need to generatee - could reduce your need to take risk, t...

Vanguard target retirement

Option one: purchase a used civic with approximately 100,000 miles that is 2006 and newer which would cost approximately $10,000. A car might go 200K miles without many repairs. More likely it either dies short of 200K, maybe well short, or needs some expensive repairs to get there. You can buy a b...