Search found 745 matches

Return to advanced search

Re: Anyone regret paying off mortgage early?

Indeed. I was mostly trying to form a framework to show my position so that I could weigh in on the question based on my current thoughts. I was not attacking the OP at all, I assure you. :D I was making a segway that would allow me to comment, despite not having paid off my mortgage. :twisted: I a...
by acegolfer
Fri Jan 23, 2015 3:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Anyone regret paying off mortgage early?
Replies: 306
Views: 37019

Re: Anyone regret paying off mortgage early?

The Wizard wrote:Yes, as Dulocracy notes, there's something akin to survivor-ship bias to this question...


TY. If you haven't noticed, OP acknowledged the "survivor bias" 3 years ago.
by acegolfer
Fri Jan 23, 2015 3:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Anyone regret paying off mortgage early?
Replies: 306
Views: 37019

Re: Efficient markets: luck v. skill

Almost identical thread: Univ of Chicago [Active Manager Luck vs. Skill] Lubos Pastor https://www.bogleheads.org/forum/viewtopic.php?f=10&t=146034&p=2176238 http://youtu.be/hlGdW8K94mI In the video, Pastor (the author of the paper) states that he found the existence of skilled manager but it...
by acegolfer
Fri Jan 23, 2015 2:33 pm
 
Forum: Investing - Theory, News & General
Topic: Efficient markets: luck v. skill
Replies: 34
Views: 2205

Re: Florida in the summer

For 100 degrees Celsius, add to the list the rest of the U.S. My point is that you can always pick a temperature high enough (or low enough) to form your "group," and grouping on a single criterion is not meaningful. Most people will find substantial differences in the Honolulu, Buffalo a...
by acegolfer
Fri Jan 23, 2015 7:47 am
 
Forum: Personal Consumer Issues
Topic: Florida in the summer
Replies: 81
Views: 5476

Re: What counts as "saving"?

Compound, Nothing wrong with your calculation. It seems you transfer all the money that you didn't spend to investment accounts, loans, etc. Given your checking account doesn't change, it will be equal to income - spending (how the majority calculate saving here). The debate here is whether to consi...
by acegolfer
Fri Jan 23, 2015 7:37 am
 
Forum: Personal Finance (Not Investing)
Topic: What counts as "saving"?
Replies: 128
Views: 6691

Re: [Poll] Do u believe in weak/semi/strong EMH? (multi opti

We can't all be "above average", for a portfolio in any given market or subset to outperform, there will be some other that under-performs by a similar amount. Out-performing the average is zero-sum minus expenses in aggregate, anything that purports otherwise is measured wrong. I used to...
by acegolfer
Fri Jan 23, 2015 7:10 am
 
Forum: Investing - Theory, News & General
Topic: [Poll] Do u believe in weak/semi/strong EMH? (multi options)
Replies: 11
Views: 692

Re: Anyone regret paying off mortgage early?

MichDad wrote:From skimming several posts in this thread, I think my view goes slightly against the current.


I don't think you are in the minority. If I had paid off my mortgage and regret that I should have invested the money in the market instead, I would not post it here in a BH forum.
by acegolfer
Thu Jan 22, 2015 6:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Anyone regret paying off mortgage early?
Replies: 306
Views: 37019

Re: What counts as "saving"?

leonard wrote:What benefit do you get from calling loan prepayment "savings"?


If you are asking me, I don't remember calling loan prepayment as "savings." I have been saying loan prepayment is NOT savings.
by acegolfer
Thu Jan 22, 2015 6:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: What counts as "saving"?
Replies: 128
Views: 6691

Re: What counts as "saving"?

Analytically - what do you gain by classifying it as anything other than the prepayment on a loan? Not sure what you are asking. From accounting perspective, here's my journal entry for making $1k extra principal payment. credit $1k cash, debit $1k liability. (correct me wrong, i took an accounting...
by acegolfer
Thu Jan 22, 2015 5:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: What counts as "saving"?
Replies: 128
Views: 6691

Re: How does an Efficient Market explain Buffett?

BHs, can you help me? What's an easy way to convince freshman college students of EMH in 5 minutes? I would suggest they consider their potential to consistently make money betting on sports. Then consider the market mechanism by which security prices are determined. It should be relatively straigh...
by acegolfer
Thu Jan 22, 2015 5:24 pm
 
Forum: Investing - Theory, News & General
Topic: How does an Efficient Market explain Buffett?
Replies: 249
Views: 12027

Re: Anyone regret paying off mortgage early?

I asked this q 2+ years ago and majority said they didn't regret paying off early.

We had another 2 years of bullish market. If you paid off your mortgage early, how do you feel now? Don't you regret you should have invested in the market instead?
by acegolfer
Thu Jan 22, 2015 4:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Anyone regret paying off mortgage early?
Replies: 306
Views: 37019

Re: What counts as "saving"?

TO, I agree with what you said. I just want to give my view on others who disagree with you. This is related to the Economics question, "why are houses considered as investment not as consumption?" Suppose you bought both a house and a car using loans. I bet many here will consider the mon...
by acegolfer
Thu Jan 22, 2015 3:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: What counts as "saving"?
Replies: 128
Views: 6691

Re: What counts as "saving"?

leonard wrote:Paying off a loan has a different set of financial constraints than "saving". There is no need to force paying off a loan to be something that it's not. Deal with the financial instrument as it is.


How about making extra principal payment on a loan?
by acegolfer
Thu Jan 22, 2015 3:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: What counts as "saving"?
Replies: 128
Views: 6691

Re: What counts as "saving"?

If you go to an exclusive restaurant and have an utterly unaffordable meal, say for $50k, then tell the owner that you don't have the money to pay for it right now, but will do so in 360 equal installments over the next 30 years. At the end of the 30 years, have you spent $50k for the meal, or have...
by acegolfer
Thu Jan 22, 2015 3:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: What counts as "saving"?
Replies: 128
Views: 6691

Re: How to calculate % savings

In my case, saving rate is 100% - Total spending/Total income. What to include in total spending and total income is the tricky part. 1. Long time ago, I asked BH whether a mortgage principal payment is a spending or not. Half said yes and the other half said no. (I can't find that thread.) Ppl havi...
by acegolfer
Thu Jan 22, 2015 3:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to calculate % savings
Replies: 9
Views: 725

Re: What counts as "saving"?

Let's say you begin the year with $0 in your checking account and a student loan of $30k. The 10% student loan is in a deferral period, so no interest is accruing on the balance, and no payments are due until January 1st of the following year. After collecting all your paychecks ($100k gross income...
by acegolfer
Thu Jan 22, 2015 2:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: What counts as "saving"?
Replies: 128
Views: 6691

Re: How does an Efficient Market explain Buffett?

I don't understand how a firm (not a fund) outperforming S&P500 disproves EMH. Why not use AAPL to disprove EMH?
by acegolfer
Thu Jan 22, 2015 2:14 pm
 
Forum: Investing - Theory, News & General
Topic: How does an Efficient Market explain Buffett?
Replies: 249
Views: 12027

Re: Am I making a mistake being too conservative?

There's nothing wrong with what you stated. But if I were you, I'd consider hedging your business and human capital.
by acegolfer
Thu Jan 22, 2015 1:51 pm
 
Forum: Investing - Theory, News & General
Topic: Am I making a mistake being too conservative?
Replies: 58
Views: 7480

Re: How does an Efficient Market explain Buffett?

Is berkshire an investment company aka fund? I thought it was some kind of holding company. In such case, can we compare berkshire (a business) with S&P500 to disprove EMH?
by acegolfer
Thu Jan 22, 2015 1:46 pm
 
Forum: Investing - Theory, News & General
Topic: How does an Efficient Market explain Buffett?
Replies: 249
Views: 12027

Re: How does an Efficient Market explain Buffett?

Is Buffett still beating the market from his financial investment consistently now? I read somewhere his marvelous success was mostly in his early years when the market was not nearly competitive as now.
by acegolfer
Thu Jan 22, 2015 11:28 am
 
Forum: Investing - Theory, News & General
Topic: How does an Efficient Market explain Buffett?
Replies: 249
Views: 12027

Re: What counts as "saving"?

@TO, I didn't read any other discussion. But if I were Joe, here's how I would calculate the saving rate 1) (100k - 20k - 40k - 10k) / 100k = 30% 2) (100k - 20k - 40k - 10k) / 100k = 30% 3) (100k - 20k - 40k - 10k) / 100k = 30% 4) (100k - 20k - 40k - 10k) / 100k = 30% I don't expect others to calcul...
by acegolfer
Thu Jan 22, 2015 11:10 am
 
Forum: Personal Finance (Not Investing)
Topic: What counts as "saving"?
Replies: 128
Views: 6691

[Poll] Do u believe in weak/semi/strong EMH? (multi options)

For more on different forms of Efficient Market Hypothesis, see
http://en.wikipedia.org/wiki/Efficient- ... background

admin: If this was asked before plz pull. I did a quick search but didn't find one.
by acegolfer
Thu Jan 22, 2015 10:53 am
 
Forum: Investing - Theory, News & General
Topic: [Poll] Do u believe in weak/semi/strong EMH? (multi options)
Replies: 11
Views: 692

Re: How does an Efficient Market explain Buffett?

Only if it is instantly priced in and done so in a rational and logical manner, will the chance of profit be gone. Is this what EMH implies? Yes. Wikipedia: your wiki source also states that one cannot consistently achieve returns in excess of average market returns on a risk-adjusted basis http://...
by acegolfer
Thu Jan 22, 2015 10:09 am
 
Forum: Investing - Theory, News & General
Topic: How does an Efficient Market explain Buffett?
Replies: 249
Views: 12027

Re: How does an Efficient Market explain Buffett?

knpstr wrote:Only if it is instantly priced in and done so in a rational and logical manner, will the chance of profit be gone. Even if the information is priced in immediately but the market responds irrationally (overbuys/oversells) then profit opportunities still exist.


Is this what EMH implies?
by acegolfer
Thu Jan 22, 2015 8:51 am
 
Forum: Investing - Theory, News & General
Topic: How does an Efficient Market explain Buffett?
Replies: 249
Views: 12027

Re: How does an Efficient Market explain Buffett?

BHs, can you help me?

What's an easy way to convince freshman college students of EMH in 5 minutes?
by acegolfer
Wed Jan 21, 2015 7:16 pm
 
Forum: Investing - Theory, News & General
Topic: How does an Efficient Market explain Buffett?
Replies: 249
Views: 12027

How is risk described in newspaper?

To be honest, I don't read news articles myself. I only read those are cited here.

I suspect that the news articles measure return by past performance. I wonder how they measure risk or whether they mention risk at all. Have you seen articles mentioned stdev, beta, VaR, skewness, or kurtosis?
by acegolfer
Wed Jan 21, 2015 7:09 pm
 
Forum: Investing - Theory, News & General
Topic: How is risk described in newspaper?
Replies: 3
Views: 260

Re: What counts as "saving"?

There's an economics definition of saving but ppl have different definitions. As long as you understand the objective of saving, one's definition doesn't matter.

In my definition, all OP stated are saving.
by acegolfer
Wed Jan 21, 2015 6:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: What counts as "saving"?
Replies: 128
Views: 6691

Re: Florida in the summer

What do Honolulu, Buffalo (NY) and Miami (FL) have in common weather-wise?

All three never recorded 100 degrees.

(I'm not saying Miami has pleasant summer weather at all.)
by acegolfer
Wed Jan 21, 2015 6:27 pm
 
Forum: Personal Consumer Issues
Topic: Florida in the summer
Replies: 81
Views: 5476

Re: CAPM and Minimum Variance Portofolio

2.) The way I understand it from the book Investments by BKM and a few journal articles is that the market portfolio tends to drift toward the minimum variance portfolio? Is that true in practice too? I've actually never heard this. Perhaps you or someone else can explain further? I'll try. I think...
by acegolfer
Sun Jan 18, 2015 10:27 pm
 
Forum: Investing - Theory, News & General
Topic: CAPM and Minimum Variance Portofolio
Replies: 4
Views: 483

Re: Does 3-funds offer higher returns or lower risk?

What's your basis for saying it's not on the "efficient frontier"? Plugging in a 3-fund portfolio into the tool at PersonalCapital.com and seeing if it is on the efficient frontier. It is not. I bet the efficient frontier in PC is the mean/stdev efficient frontier. I doubt any site has a ...
by acegolfer
Sun Jan 18, 2015 7:36 pm
 
Forum: Investing - Theory, News & General
Topic: Does 3-funds offer higher returns or lower risk?
Replies: 30
Views: 2595

Re: Size + Value Premium Explained

Good question and I was trying to answer this. But I realized that

to explain size premium and value premium properly, I need to explain the CAPM first and its limitations.

Can someone explain small premium and value premium without CAPM and anomalies as if ELI5?
by acegolfer
Sun Jan 18, 2015 1:43 pm
 
Forum: Investing - Theory, News & General
Topic: Size + Value Premium Explained
Replies: 5
Views: 501

Re: Why invest in International funds? It's a mystery

Another newspaper piece using past performance to predict the future performance.

It may fool many readers but not BHs.
by acegolfer
Sat Jan 17, 2015 8:15 pm
 
Forum: Investing - Theory, News & General
Topic: Why invest in International funds? It's a mystery
Replies: 121
Views: 10435

Re: Does strategy even matter?

Yes, because I believe in modern portfolio theory to certain extent.

I'm not suggesting everyone should do too.
by acegolfer
Sat Jan 17, 2015 7:55 pm
 
Forum: Investing - Theory, News & General
Topic: Does strategy even matter?
Replies: 12
Views: 1689

Re: Vanguard ETFs, Are fractional shares allowed?

Tanelorn wrote:Motif and Sharebuilder are brokers that allow buying fractional shares of stocks or ETFs.


Interesting. With those brokers, can I do automatic investment such as investing $1000 every week on VTI? This is one of many reasons why I'm using Vanguard funds rather than ETFs.
by acegolfer
Sat Jan 17, 2015 7:29 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard ETFs, Are fractional shares allowed?
Replies: 12
Views: 939

[Poll] Is your generation better off than parents' or kids'

Whenever I talk to younger generation, they always complain about the adversity that they face. It got me to thinking of this topic. Of course, this is purely subjective but I am curious about how BHs feel.
by acegolfer
Mon Jan 05, 2015 9:24 am
 
Forum: Personal Finance (Not Investing)
Topic: [Poll] Is your generation better off than parents' or kids'
Replies: 16
Views: 986

Re: Do Quicken reports fail to work after a couple years?

I have Quicken 2012 and mine generates 2015 YTD reports without problems.
by acegolfer
Sun Jan 04, 2015 7:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do Quicken reports fail to work after a couple years?
Replies: 10
Views: 549

Re: How do you calculate your savings rate?

my savings rate = (total income - total expense) / total income

total income = pretax income + employer contribution
total expense includes all tax liability

I record everything pretax in Quicken so this is the easiest way for me to calculate.
by acegolfer
Sun Jan 04, 2015 5:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: How do you calculate your savings rate?
Replies: 44
Views: 3956

Re: To a novice, do you recommend TSM or 500 for indexing?

Thanks for everyone who suggested that I should recommend "S&P500 fund" to others to make it simple.

The next question is usually "Is that where you invest?"

What to say, if I invest in TSM?
by acegolfer
Sun Jan 04, 2015 1:37 pm
 
Forum: Investing - Theory, News & General
Topic: To a novice, do you recommend TSM or 500 for indexing?
Replies: 39
Views: 2250

Re: Is rebalancing necessary for an all-stock portfolio?

As another poster said, it's debatable.

If you decide to rebalance your taxable account, try to minimize the tax. One suggested method in the past is using new contribution to reach your target ratios.
by acegolfer
Sun Jan 04, 2015 11:26 am
 
Forum: Investing - Theory, News & General
Topic: Is rebalancing necessary for an all-stock portfolio?
Replies: 18
Views: 1197

Re: To a novice, do you recommend TSM or 500 for indexing?

It's not fair to compare VTSMX vs S&P500. If you compare VTSMX vs VFINX, then you will see VTSMX performing much better. 10% return different in the last 10 years. 25% return difference since inception (your horizon). Huh? Are you sure your data source is accurate and includes reinvested divide...
by acegolfer
Sun Jan 04, 2015 10:32 am
 
Forum: Investing - Theory, News & General
Topic: To a novice, do you recommend TSM or 500 for indexing?
Replies: 39
Views: 2250

Re: Why not put 2x amt. of emergency funds in the market?

Dear OP,

I bet a lot of ppl (who know what they are doing) do like what you proposed. But they don't advise others to do it. It all depends on individual's situation.
by acegolfer
Sun Jan 04, 2015 8:13 am
 
Forum: Investing - Theory, News & General
Topic: Why not put 2x amt. of emergency funds in the market?
Replies: 19
Views: 2187

Re: Fun stock market simulator - educational

CBOE Virtual Trading Room https://www.cboe.com/tradtool/virtualtrade.aspx Even though CBOE is the options exchange (the largest in U.S.), one can virtually trade not only options but also stocks/ETF/futures. Unlike other virtual trading rooms run by brokerages, it imposes bid/ask spread, transaction...
by acegolfer
Sun Jan 04, 2015 8:09 am
 
Forum: Investing - Theory, News & General
Topic: Fun stock market simulator - educational
Replies: 10
Views: 1140

Re: Why do you look at past performance?

Aptenodytes wrote:It depends on what you mean by "the past performance." Maybe you could clarify. Mutual funds? Asset categories? Portfolios?


past performance of the securities such as stocks/funds. Edited the subject and OP to clarify. TY.
by acegolfer
Sat Jan 03, 2015 1:08 pm
 
Forum: Investing - Theory, News & General
Topic: Why do you look at past performance of stocks/funds?
Replies: 28
Views: 2380

Re: To a novice, do you recommend TSM or 500 for indexing?

It would help to not use the ticker symbols, on many web sites you can just type in "Vanguard total s..." and it will bring up the fund. A target retirement fund like a 2050 fund might be a better choice for someone that has difficulty in learning the difference between these funds. Great...
by acegolfer
Sat Jan 03, 2015 10:30 am
 
Forum: Investing - Theory, News & General
Topic: To a novice, do you recommend TSM or 500 for indexing?
Replies: 39
Views: 2250

Why do you look at past performance of stocks/funds?

Most BHs believe that past performance of stocks/funds doesn't predict its future performance. But I bet BHs look at the past performance of securities (not your portfolio). What do you learn from looking at the price history? How does it affect your investment decisions? Or am I wrong and you do no...
by acegolfer
Sat Jan 03, 2015 10:16 am
 
Forum: Investing - Theory, News & General
Topic: Why do you look at past performance of stocks/funds?
Replies: 28
Views: 2380

Re: [Annual POLL] What was your 2014 return?

nedsaid wrote:If you have an indexed portfolio, I agree with you. You are getting the market return for whatever asset classes you are invested in.


It's one of 7 reasons why I indexing.
by acegolfer
Sat Jan 03, 2015 10:11 am
 
Forum: Investing - Theory, News & General
Topic: [Annual POLL] What was your 2014 return?
Replies: 144
Views: 14079

Re: To a novice, do you recommend TSM or 500 for indexing?

I would pick the Total Stock Market over the S&P 500 because I believe in the concept of wide diversification over narrow diversification. The Total Market holds over 3,300 stocks versus 500 for the S&P 500 Index. But there is absolutely nothing wrong with the S&P 500 Index as an invest...
by acegolfer
Sat Jan 03, 2015 10:09 am
 
Forum: Investing - Theory, News & General
Topic: To a novice, do you recommend TSM or 500 for indexing?
Replies: 39
Views: 2250

Re: To a novice, do you recommend TSM or 500 for indexing?

For all the talk about how the S&P 500 isn't the market and the increased diversification of Total Market, it just doesn't seem to matter much from what I can tell which one you pick. It's not fair to compare VTSMX vs S&P500. If you compare VTSMX vs VFINX, then you will see VTSMX performing...
by acegolfer
Sat Jan 03, 2015 9:42 am
 
Forum: Investing - Theory, News & General
Topic: To a novice, do you recommend TSM or 500 for indexing?
Replies: 39
Views: 2250

To a novice, do you recommend TSM or 500 for indexing?

Whenever I explain indexing to a beginner investor, I suggest TSM such as VTSMX or FTSMX. But it seemed that they have a hard time memorizing "Total Stock Market". OTOH, they seemed to memorize SP500 funds such as SPY easier. Is there a trick to make TSM funds easier to remember? Or should...
by acegolfer
Sat Jan 03, 2015 9:09 am
 
Forum: Investing - Theory, News & General
Topic: To a novice, do you recommend TSM or 500 for indexing?
Replies: 39
Views: 2250

Re: Today is a Good Day to fund the 2015 IRA

The reason I have not taken care of my 2014 IRA is because I am unsure of my allowed maximum contribution and will not be sure for a few more weeks until I know my total income for 2014. I will not know my total income for 2014 until Vanguard gets its act together and tells me the value of the divi...
by acegolfer
Sat Jan 03, 2015 7:43 am
 
Forum: Personal Finance (Not Investing)
Topic: Today is a Good Day to fund the 2015 IRA
Replies: 69
Views: 8118
Next

Return to advanced search