Search found 945 matches

Return to advanced search

Re: "Its Time To End Financial Advisers 1% Fees"

It is difficult to compare financial advice to medical advice, since the latter is based on painfully complex negotiated rates between providers and insurers. Patients are bystanders in this process. But legal and accounting advice are good comparisons.
by afan
Mon Jan 26, 2015 2:02 pm
 
Forum: Investing - Theory, News & General
Topic: "Its Time To End Financial Advisers 1% Fees"
Replies: 78
Views: 6601

Re: "Its Time To End Financial Advisers 1% Fees"

Yes, I get it...How hard can it be? Can I forward all my email and phone calls to you for a month? It should only take you a few minutes to get through them all... :) The point is not that, having already paid for responses, people would not expect them. The point is that they rarely actually need ...
by afan
Mon Jan 26, 2015 1:47 pm
 
Forum: Investing - Theory, News & General
Topic: "Its Time To End Financial Advisers 1% Fees"
Replies: 78
Views: 6601

Re: "Its Time To End Financial Advisers 1% Fees"

The problem is that there is very little for an advisor to do. Once or twice a year check the asset allocation? With very simple software, the firm holding the assets will tell the advisor the allocation. Review a spreadsheet of client allocation with the ones outside the target range highlighted. T...
by afan
Mon Jan 26, 2015 7:23 am
 
Forum: Investing - Theory, News & General
Topic: "Its Time To End Financial Advisers 1% Fees"
Replies: 78
Views: 6601

Re: Auto-rebalancing tool at Vanguard

It is not free. There is no such thing as a free transaction. Sorry, just fact. If the turnover increases without an increase in fund assets, costs go up. That is separate from the question of whether the increased costs would be worth it. For some on this thread it would clearly be worth it. For ot...
by afan
Fri Jan 23, 2015 8:47 pm
 
Forum: Investing - Theory, News & General
Topic: [Lack of] Auto-rebalancing tool at Vanguard
Replies: 68
Views: 12632

Re: "Its Time To End Financial Advisers 1% Fees"

Considering that active managers have been remarkably consistent in underperforming the index approach, as they have to considering their fees, we can would only expect they would do even worse as the market becomes more efficient. But the market is already highly efficient and I know of no evidence...
by afan
Fri Jan 23, 2015 4:37 pm
 
Forum: Investing - Theory, News & General
Topic: "Its Time To End Financial Advisers 1% Fees"
Replies: 78
Views: 6601

Re: Auto-rebalancing tool at Vanguard

When people establish this automatic rebalancing it would be expected to increase the number of transactions. There are plenty of people who rebalance only rarely left to their own devices. If it were automatic once set up, then those rebalancing transactions would take place at whatever period was ...
by afan
Thu Jan 22, 2015 4:39 pm
 
Forum: Investing - Theory, News & General
Topic: [Lack of] Auto-rebalancing tool at Vanguard
Replies: 68
Views: 12632

Re: Vanguard too successful?

One interesting question out of all that. If the portion of active investors gets small enough, then there will come a point when the market becomes less efficient, and there will be a reward to active investing. The thrust of that argument as presented in the article implies that there once was a t...
by afan
Wed Jan 21, 2015 8:31 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard too successful?
Replies: 13
Views: 2129

Re: How to get things wrong - Swiss Franc (CHF)

I don't speculate on foreign exchange markets. Far smarter people have gone broke trying.
by afan
Tue Jan 20, 2015 8:12 pm
 
Forum: Investing - Theory, News & General
Topic: How to get things wrong - Swiss Franc (CHF)
Replies: 32
Views: 3521

Re: How Can Short-Term Tax Exempt Make Sense?

Not sure it makes sense to compare an Admiral class of one fund to Investor class of another, but note that Vanguard Limited-Term Tax-Exempt Fund Admiral Shares (VMLUX), still has very low interest rate risk, but it pays the same yield, federal tax free, as the Short Term taxable fund. This limited ...
by afan
Sun Jan 18, 2015 10:01 am
 
Forum: Investing - Theory, News & General
Topic: How Can Short-Term Tax Exempt Make Sense?
Replies: 13
Views: 1583

Re: Diversification... Alternate Theory?

Eight pages of bloviating, but refuses to define DM, or state how it is calculated. If the author had something worthwhile to say, this would have been the first thing he did. He knows how he calculates DM, but will not say. Maybe he just makes it up.

Meaningless.
by afan
Mon Jan 12, 2015 3:34 pm
 
Forum: Investing - Theory, News & General
Topic: Diversification... Alternate Theory?
Replies: 11
Views: 1451

Re: Is a Sub-4% SWR a Boglehead Quirk?

The chart illustrates the challenges in using current valuation metrics to predict future returns. This works so poorly it is not worth the effort. See Goyal.
by afan
Mon Jan 12, 2015 2:13 pm
 
Forum: Investing - Theory, News & General
Topic: Is a Sub-4% SWR a Boglehead Quirk?
Replies: 177
Views: 10645

Re: Is a Sub-4% SWR a Boglehead Quirk?

Spending time with spouse, heirs, and volunteering at charities could also be considered more worthy than working until one is too sick to work anymore... I will retire at 55, and spend a ton of time with my spouse, children, and grandchildren while I'm still healthy.. Yes, they will only inherit a...
by afan
Mon Jan 12, 2015 2:12 pm
 
Forum: Investing - Theory, News & General
Topic: Is a Sub-4% SWR a Boglehead Quirk?
Replies: 177
Views: 10645

Re: Is a Sub-4% SWR a Boglehead Quirk?

If I knew it was my last meal, I'd eat until I couldn't eat another bite and savor every bit of it. I would not want to go to my death feeling bloated and disgusting. YMMV Dying with the highest networth of my of my life, would be a Complete Retirement Planning Failure to me. The real problem is th...
by afan
Sun Jan 11, 2015 9:19 pm
 
Forum: Investing - Theory, News & General
Topic: Is a Sub-4% SWR a Boglehead Quirk?
Replies: 177
Views: 10645

Re: Is a Sub-4% SWR a Boglehead Quirk?

2. Someone can as easily choose a relatively high withdrawal rate in order to retire earlier at a given modest lifestyle, not make 'frivolous expenditures'. So I think your approach is a bit confused on this, in several times equating higher withdrawal rate with 'frivolity', not necessarily the cas...
by afan
Sun Jan 11, 2015 9:05 pm
 
Forum: Investing - Theory, News & General
Topic: Is a Sub-4% SWR a Boglehead Quirk?
Replies: 177
Views: 10645

Re: Is a Sub-4% SWR a Boglehead Quirk?

Spouse, heirs and charities. All are more worthy than wasting money on frivolous expenditures. Saving money is a goal in itself. Like not overeating at one's last meal. As you note, annuities might address the longevity problem if one were willing to project creditworthiness of insurance companies d...
by afan
Sun Jan 11, 2015 6:36 pm
 
Forum: Investing - Theory, News & General
Topic: Is a Sub-4% SWR a Boglehead Quirk?
Replies: 177
Views: 10645

Re: Anti- Market Timers still seem to endorse market-timing?

Efficient marketers hold diversified portfolios precisely because they CANNOT predict which asset classes will do best in the future. They assume that recent performance of any class tells them nothing about expected future returns. Or to phrase it more carefully, they assume that any useful predict...
by afan
Sun Jan 11, 2015 6:18 pm
 
Forum: Investing - Theory, News & General
Topic: Anti- Market Timers still seem to endorse market-timing??
Replies: 22
Views: 2739

Re: Is a Sub-4% SWR a Boglehead Quirk?

I have a different view of retirement plans. I accept that some people think this way, but I have no interest in spending up to my ability. I want to spend enough to maintain a comfortable life, which I can do at a level of consumption far lower than what I could afford. I plan to be a net saver thr...
by afan
Sun Jan 11, 2015 5:45 pm
 
Forum: Investing - Theory, News & General
Topic: Is a Sub-4% SWR a Boglehead Quirk?
Replies: 177
Views: 10645

Re: TIAA-CREF and Vanguard funds - any extra fees ?

Big universities usually get good deals from Vanguard and TIAA. The documents will tell you the fees. But he has a job with a 403b while he is a PhD student? Is this his stipend, or does he do teaching for which they pay him and let him in the 403b? It is a good deal. Many grad students would not ha...
by afan
Sat Jan 10, 2015 10:02 pm
 
Forum: Investing - Theory, News & General
Topic: TIAA-CREF and Vanguard funds - any extra fees ?
Replies: 8
Views: 994

Re: Busting the "myth" of the small cap / size premium ?

Remember that the studies identifying a small stock effect were not trying to characterize an index, but the performance of small stocks overall. Creating an index was a means to this end. The problem arose, and for a long time was not recognized, that these retrospectively constructed indicies omit...
by afan
Thu Jan 08, 2015 10:15 am
 
Forum: Investing - Theory, News & General
Topic: Busting the "myth" of the small cap / size premium ?
Replies: 14
Views: 1741

Re: rebalance at 3% change ok?

inbox.

A misunderstanding, I suppose. I do not follow a policy of continuous rebalancing.
by afan
Wed Jan 07, 2015 10:19 am
 
Forum: Investing - Theory, News & General
Topic: rebalance at 3% change ok?
Replies: 24
Views: 1826

Re: rebalance at 3% change ok?

Rebalancing at 5% seems pointless to me. Remember, your asset allocation is based on some consideration of historical and projected risk and return properties of your higher and lower risk investments. These values are highly variable, and your estimates of them will be error prone at levels way hig...
by afan
Tue Jan 06, 2015 5:58 pm
 
Forum: Investing - Theory, News & General
Topic: rebalance at 3% change ok?
Replies: 24
Views: 1826

Re: New Vanguard AMT-free National Municipal Bond Fund

Vanguard had been on the verge of muni index funds a few years ago and held off due to chaos in the muni bond market. I don't remember whether this was the Meredith Whitney affair or the crash. I agree that I cannot see paying the purchase fee. Remember that Vanguard purchase fees are paid to the fu...
by afan
Tue Jan 06, 2015 5:46 pm
 
Forum: Investing - Theory, News & General
Topic: New Vanguard AMT-free National Municipal Bond Fund
Replies: 58
Views: 5022

Re: Rick Ferri looking to internationalize his portfolio

I have previously tried to start threads on how well one can predict equity performance. I have not gotten many interested responses. So I will throw this in here; http://www.hec.unil.ch/agoyal/docs/Predictability_RFS.pdf "A Comprehensive Look at The Empirical Performance of Equity Premium Pred...
by afan
Mon Jan 05, 2015 1:41 pm
 
Forum: Investing - Theory, News & General
Topic: Rick Ferri looking to internationalize his portfolio
Replies: 226
Views: 25562

Re: Rick Ferri looking to internationalize his portfolio

afan is one VSP,also quite humorous


Flattering. Thanks. Wish either one were true. Esp the VSP part.
by afan
Mon Jan 05, 2015 1:27 pm
 
Forum: Investing - Theory, News & General
Topic: Rick Ferri looking to internationalize his portfolio
Replies: 226
Views: 25562

Re: Rick Ferri looking to internationalize his portfolio

When companies run index funds, they are trying to match the index. Once they have identified the index they will follow, the composition of the index is out of their hands. The adjustments they make are attempts to produce perfect correlation with the target index, not to beat the market. Perfectly...
by afan
Sun Jan 04, 2015 4:35 pm
 
Forum: Investing - Theory, News & General
Topic: Rick Ferri looking to internationalize his portfolio
Replies: 226
Views: 25562

Re: Rick Ferri looking to internationalize his portfolio

[economic policy comments (and followup by Rick deleted by admin alex. In general it was suggesting that simplified economic analyses such as that found in Rick's original article is likely to be less than fully sufficient, which brings us to the remaining on-topic comment] Reducing home bias might...
by afan
Sun Jan 04, 2015 4:27 pm
 
Forum: Investing - Theory, News & General
Topic: Rick Ferri looking to internationalize his portfolio
Replies: 226
Views: 25562

Re: Rick Ferri looking to internationalize his portfolio

A few observations. Rick Ferri is a Very Smart Person. The finance and economics industries employ a large number of VSPs, many of whom try to predict the directions of economies or financial markets. Perhaps several hundred thousand such people around the world. In spite of their unquestioned intel...
by afan
Sun Jan 04, 2015 10:43 am
 
Forum: Investing - Theory, News & General
Topic: Rick Ferri looking to internationalize his portfolio
Replies: 226
Views: 25562

Re: Wealthfront Direct Indexing Platform

I am too put off by Wealthfront's aggressive marketing, dubious claims about expected returns, and frequent switches in strategy to take them seriously as an investing option. If you review their history, they were a full bore active management shop, making wild, absurd, claims about performance. Th...
by afan
Sat Jan 03, 2015 10:44 am
 
Forum: Investing - Theory, News & General
Topic: Wealthfront Direct Indexing Platform
Replies: 32
Views: 4395

Re: Medical billing: wrong procedure

Before getting upset, or accusing anyone of being unethical, medical billing is cplicated and mistakes are common. Contact the provider and point out the error. Be polite as there is an excellent chance is was an honest mistake.
by afan
Wed Dec 24, 2014 10:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Medical billing: wrong procedure
Replies: 28
Views: 2169

Re: An alternative to alternative investments [QSPIX]

Re turnover: Those securities that failed one screen but passed another and therefore were not traded would not show up in the turnover figures nor would they contribute to the tax inefficiency. Any high turnover strategy works better if tax advantaged, but could be good in taxable if it worked well...
by afan
Thu Nov 27, 2014 10:05 am
 
Forum: Investing - Theory, News & General
Topic: An alternative to alternative investments [QSPIX]
Replies: 270
Views: 30767

Re: An alternative to alternative investments [QSPIX]

Larry, I suggest when you calm down you take another look at what I said. Right now you seem too upset to read it clearly. I hope whatever is bothering you resolves itself. Note that, among many other distortions, I did not say that I had no opinion about investing for market exposure. If you read m...
by afan
Thu Nov 27, 2014 9:51 am
 
Forum: Investing - Theory, News & General
Topic: An alternative to alternative investments [QSPIX]
Replies: 270
Views: 30767

Re: An alternative to alternative investments [QSPIX]

Again, passion, but apparent agreement. I said, and you repeatedly agree, that one cannot use the record of long/short funds to predict the performance of this fund. WE AGREE ON THIS, RIGHT? I said, and you repeatedly agree, that if the fund can change strategy over time, then one could not use the ...
by afan
Wed Nov 26, 2014 6:14 pm
 
Forum: Investing - Theory, News & General
Topic: An alternative to alternative investments [QSPIX]
Replies: 270
Views: 30767

Re: An alternative to alternative investments [QSPIX]

Larry, This is very interesting. Your tone suggests that you disagree, but then you restate what I have already said. I am having trouble finding the disagreement implied by "you are off base" Your first point seems to restate exactly what I said. One cannot use the real world performance ...
by afan
Wed Nov 26, 2014 2:58 pm
 
Forum: Investing - Theory, News & General
Topic: An alternative to alternative investments [QSPIX]
Replies: 270
Views: 30767

Re: An alternative to alternative investments [QSPIX]

My comments about the expense ratio were based just on the math. The real question is whether one should want such a fund at all. I agree that one is unlikely to find someone offering a long only portfolio like this for 10 basis points. My point was that one can get a long only portfolio for 10 basi...
by afan
Wed Nov 26, 2014 9:39 am
 
Forum: Investing - Theory, News & General
Topic: An alternative to alternative investments [QSPIX]
Replies: 270
Views: 30767

Re: An alternative to alternative investments [QSPIX]

Here you have $,1000 of long exposure and $1,000 of short giving you a loading of 1 on the factor for the 1.5% expense This, of course, presumes one would be willing to pay 1.5%, or some figure above zero, in expense ratio for the short component of the portfolio. The history of long/short funds is...
by afan
Tue Nov 25, 2014 6:55 pm
 
Forum: Investing - Theory, News & General
Topic: An alternative to alternative investments [QSPIX]
Replies: 270
Views: 30767

Re: An alternative to alternative investments [QSPIX]

So have we resolved whether the fund is actively managed? Larry says "no". Alex says "yes" and quotes the prospectus that not only states plainly that it is actively managed (which might settle the issue), but then proceeds to describe an active approach. Larry, in what sense do ...
by afan
Tue Nov 25, 2014 4:01 pm
 
Forum: Investing - Theory, News & General
Topic: An alternative to alternative investments [QSPIX]
Replies: 270
Views: 30767

Re: a look at the size premium and BtM

Interesting results, but I have to question whether the t stats mean anything at all. The t stat would make sense for pre specified comparisons, based on theory. They mean considerably less, perhaps nothing, when applied to data that has already be analyzed for a size effect, over the same periods o...
by afan
Tue Nov 25, 2014 3:36 pm
 
Forum: Investing - Theory, News & General
Topic: a look at the size premium and BtM
Replies: 5
Views: 810

Re: How do you "un-fund" a revocable trust?

What was the point of emptying out the trust? Even if your assets are below the estate tax exclusion amount right now, remember that this figure can change anytime Congress and the White House agree to alter it. Are you going to put money in and take it out of the trust each time that happens? If yo...
by afan
Sat Nov 22, 2014 9:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: How do you "un-fund" a revocable trust?
Replies: 10
Views: 1306

Re: Family Trust? Strategies for inheritance?

The estate tax exclusion amount is set by law, currently indexed to inflation, but could be changed anytime Congress and the White House can next agree. Unless you expect to pass away in the next couple of years, the current figure is essentially meaningless. It could go down. If you live for a numb...
by afan
Sat Nov 22, 2014 9:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Family Trust? Strategies for inheritance?
Replies: 6
Views: 1116

Re: Financial research on reasons For stock performance wron

I think the situation is worse than that. This paper concerns data mining for new tweaks on asset pricing. They point out that this usually involves selective reporting of only positive results after trolling through hundreds or thousands of alternatives. An even bigger problem is repeating analysis...
by afan
Sat Nov 08, 2014 9:56 am
 
Forum: Investing - Theory, News & General
Topic: Financial research on reasons For stock performance wrong
Replies: 1
Views: 401

Re: your advisor should act like a good doctor

Back to the topic of out of sample testing: If someone writes a paper in 1993 about small and value, then the entire market history up to that point is in sample. One might consider only results back to 1963 in the paper, but the idea of looking at small and value was hardly novel in '93. People loo...
by afan
Sat Nov 01, 2014 9:10 pm
 
Forum: Investing - Theory, News & General
Topic: your advisor should act like a good doctor
Replies: 48
Views: 4457

Re: your advisor should act like a good doctor

The problem with many financial studies is not lack of a priori hypotheses but lack of out of sample data. In medicine and in finance the hypotheses are formulated based on prior knowledge. They are influenced by then-current theories about the disease or markets. In medicine one replicates studies ...
by afan
Wed Oct 29, 2014 7:26 pm
 
Forum: Investing - Theory, News & General
Topic: your advisor should act like a good doctor
Replies: 48
Views: 4457

Re: I am surely doing something wrong (FireCalc question)

To the OP, I think you are using Firecalc wrong, so it is hard to tell whether the results make sense. You should input the amount you plan to spend, not the amount you need on top of SS. Then enter your expected SS income, and the year(s) when it starts. When you call $122k your "take home&quo...
by afan
Sat Oct 04, 2014 9:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: I am surely doing something wrong (FireCalc question)
Replies: 45
Views: 4570

Re: DIY Index Fund

It would be possible to save the ER, but the effective cost of TSM is lower due to securities lending and more efficient trading. That would be hard to beat without an army of professionals running your portfolio. Some huge investors, pension funds, endowments, run their own index funding in house o...
by afan
Sat Sep 06, 2014 5:43 pm
 
Forum: Investing - Theory, News & General
Topic: DIY Index Fund
Replies: 25
Views: 2614

Re: How is tilting any different that active value investing

Be careful about equating risk adjusted return with Sharpe ratio. Doing so ignores skewness, which is clearly priced.
by afan
Sat Sep 06, 2014 1:36 pm
 
Forum: Investing - Theory, News & General
Topic: How is tilting any different that active value investing
Replies: 55
Views: 2680

Re: How is tilting any different that active value investing

Tilting is an approach to active management. Active managers reject the market as a whole and instead try to identify groups of stocks that will outperform and buy only those. These groups can be single stocks, small groups or large groups. It is arbitrary to claim that actively selecting large grou...
by afan
Sat Sep 06, 2014 9:33 am
 
Forum: Investing - Theory, News & General
Topic: How is tilting any different that active value investing
Replies: 55
Views: 2680

Re: "There is no such thing as a truly passive portfolio"

Eugene Fama, who popularized the EMH, did not seem to understand that, at the macro level, the current snapshot of global financial assets is an ex-post view of how inefficient markets are currently allocated. You gotta love this. Lecturing Eugene Fama about what he does not "understand" ...
by afan
Thu Sep 04, 2014 6:32 pm
 
Forum: Investing - Theory, News & General
Topic: "There is no such thing as a truly passive portfolio"
Replies: 58
Views: 2401

Re: USAA home insurance vs chubb/pure/firemans.

In two different states, I have not been forced to buy full replacement cost coverage. I have wanted it, and was told that, particularly for our current older house, it would be more expensive. Nothing like the difference you found, but significant. If you really would not replace your home with ori...
by afan
Sat Aug 23, 2014 3:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: USAA home insurance vs chubb/pure/firemans.
Replies: 13
Views: 1588

Re: Power of Attorney

An articl in today's NYTimes makes the same points about getting POAs recognized, giving financial institutions their own forms, revocable trust usually better...
by afan
Sat Aug 23, 2014 3:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Power of Attorney
Replies: 32
Views: 2755

Re: Power of Attorney

Assuming the parent is not incapacitated now, that is, can sign a POA, it is FAR better to get POAs registered with every entity with which they do business. Banks, brokerage firms, retirement accounts, anything. Then you eliminate the guessing game about whether they will accept the general durable...
by afan
Sat Aug 23, 2014 12:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Power of Attorney
Replies: 32
Views: 2755
Next

Return to advanced search