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Re: International is disappointing

Of the slices you make of the market, some will wax and some will wane---and just when you notice the relativity, they change and do it again. More seriously, maybe, to combat worry and regret, you could make market churn less visible and just invest in stocks through total world. Total World has t...
by asset_chaos
Fri Feb 27, 2015 9:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: International is disappointing
Replies: 72
Views: 4466

Re: International is disappointing

Of the slices you make of the market, some will wax and some will wane---and just when you notice the relativity, they change and do it again.

More seriously, maybe, to combat worry and regret, you could make market churn less visible and just invest in stocks through total world.
by asset_chaos
Fri Feb 27, 2015 3:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: International is disappointing
Replies: 72
Views: 4466

Re: Portfolio costs: FTSE All World vs SP500

I suspect the consensus opinion may be that this is a false choice in that relatively few Bogleheads chose purely the index 500 fund and even fewer chose to invest in stocks via the global market index fund. In fact, in this 2011 poll https://www.bogleheads.org/forum/viewtopic.php?t=70974 , of the B...
by asset_chaos
Thu Feb 26, 2015 1:17 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio costs: FTSE All World vs SP500
Replies: 6
Views: 689

Re: Vanguard's New Index Fund of Municiples

Should, one day, the dreaded bond crash occur, I may use this fund to tax loss harvest from intermediate tax exempt fund. But for now, I don't see a compelling reason to switch.
by asset_chaos
Mon Feb 23, 2015 3:10 pm
 
Forum: Investing - Theory, News & General
Topic: New Vanguard AMT-free National Municipal Bond Fund
Replies: 79
Views: 7115

Re: Contributing to Vanguard Roth IRA from Australia?

If you have income above the foreign earned income exclusion, that counts as income you could contribute to a Roth IRA. I think, but am not certain, that total income, including adding back the excluded foreign income, is what counts towards the upper income limit for Roth contributions.
by asset_chaos
Mon Feb 23, 2015 12:48 am
 
Forum: Investing - Help with Personal Investments
Topic: Contributing to Vanguard Roth IRA from Australia?
Replies: 4
Views: 269

Re: What if a trustee violates the terms of trust?

The lawyer that drafted the trust document for us suggested including the role of a trust protector. The protector is entrusted with the right to fire the trustee and appoint a new one, though not himself, in the case that the beneficiaries complain the trustee is not following the trust terms or is...
by asset_chaos
Thu Feb 19, 2015 7:17 am
 
Forum: Personal Finance (Not Investing)
Topic: What if a trustee violates the terms of trust?
Replies: 4
Views: 584

Re: Are International Stocks Classified by HQ location?

Investing via a total world type fund renders the question moot.-)
by asset_chaos
Tue Feb 17, 2015 4:19 pm
 
Forum: Investing - Theory, News & General
Topic: Are International Stocks Classified by HQ location?
Replies: 5
Views: 462

Re: Improving the Lifestrategy Funds

They're fine the way they are. The LifeStrategy funds package up all the world's investable financial assets in proportions that Vanguard has selected to be reasonable (and which are reasonable) into several flavors of low cost investments. Vanguard ought to have investments like LifeStrategy availa...
by asset_chaos
Mon Feb 16, 2015 3:20 pm
 
Forum: Investing - Theory, News & General
Topic: Improving the Lifestrategy Funds
Replies: 29
Views: 2523

Re: The Best 60/40 Portfolio?

There is no objectively "best" portfolio because best depends on unknowable details about future market returns. But there are any number of perfectly reasonble portfolios that are likely to be sufficiently good that they will help you achieve your financial goals. LifeStrategy Moderate Go...
by asset_chaos
Thu Feb 12, 2015 12:43 am
 
Forum: Investing - Help with Personal Investments
Topic: The Best 60/40 Portfolio?
Replies: 20
Views: 2156

Re: Vanguard Australia

They have a website http://www.vanguard.com.au . He could also build a comprehensive, low-cost investment program from Vanguard exchange tranded funds through a brokerage account. It's impossible to say without knowing his circumstances, but if he doesn't already have superannuation, he could invest...
by asset_chaos
Mon Feb 09, 2015 3:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Australia
Replies: 1
Views: 160

Re: Inherited Mutual Funds: Investing advice

Inherited assets receive a step up in basis to the value on the date of death of the decedent. If you recently inherited this, the gains/losses should be minimal, so now is a good time to sell the old investments and reinvest the funds in a way that you will be happy with for the long term. If I we...
by asset_chaos
Fri Feb 06, 2015 6:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Inherited Mutual Funds: Investing advice
Replies: 67
Views: 3080

Vanguard survey: what should they do differently?

Vanguard asked me to take a survey today. One of the open ended questions was What is the one thing you wish Vanguard would do differently? Living abroad, my answer was integrating and lowering costs of Vanguard ex-US investing, though probably not easy due to cross-border legal restrictions. But I ...
by asset_chaos
Tue Feb 03, 2015 7:52 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard survey: what should they do differently?
Replies: 72
Views: 4245

Re: Would anyone go 100% bonds if...

Fantasy, love it. At the designated level of windfall I'd invest balanced for today and for my posterity, so 50/50 global stocks and muni bonds with a pretty hefty donor advised fund on the side.
by asset_chaos
Sat Jan 31, 2015 6:50 pm
 
Forum: Investing - Theory, News & General
Topic: Would anyone go 100% bonds if...
Replies: 41
Views: 3440

Re: Vanguard Bond Portfolio

Both of the choices proposed are perfectly reasonable and both should admirably perform the safety function of bonds in a portfolio. As I value investing simplicity, if I were choosing between these two options, I would tend towards the simpler one fund solution.
by asset_chaos
Fri Jan 30, 2015 6:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Bond Portfolio
Replies: 11
Views: 1144

Re: Poll: Do you contribute max to tax-advantaged before 529

Every year---gasp, for over a decade!---I max our retirement accounts and several Coverdells but don't normally contribute every year to 529 accounts.
by asset_chaos
Thu Jan 29, 2015 6:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Poll: Do you contribute max to tax-advantaged before 529?
Replies: 38
Views: 2767

Re: Why not a 2 fund portfolio like Bogle suggests

"Why not a 2 fund portfolio?" If someone handed me a sufficiently large sum to invest in taxable accounts, total world and intermediate term municipal bond funds would suite me. Those are two fine funds.
by asset_chaos
Thu Jan 29, 2015 6:11 pm
 
Forum: Investing - Theory, News & General
Topic: Why not a 2 fund portfolio like Bogle suggests
Replies: 36
Views: 3996

Re: Mr. Bogle on CNBC today--International and Bonds

I don't think I've ever heard him mention it, but what's his advice for someone who doesn't live in the US? Although I don't have a citation handy, Bogle has said before in at least one interview that his advice is directed towards an American investor. His advice to have only domestic investments ...
by asset_chaos
Thu Jan 29, 2015 5:25 pm
 
Forum: Investing - Theory, News & General
Topic: Mr. Bogle on CNBC today--International and Bonds
Replies: 50
Views: 6433

Re: What's wrong with volatility if buy&hold

A Lo strategy for an individual investor would look something like this. If the market falls at least 15% and the VIX is high (say 28 or more) sell some percent of your equity holdings (perhaps 10% or 15%). If the market continues to drop and has fallen say more than 25% and the VIX remains high, o...
by asset_chaos
Mon Jan 26, 2015 10:56 pm
 
Forum: Investing - Theory, News & General
Topic: What's wrong with volatility if buy&hold
Replies: 52
Views: 3492

Re: Do any young investors use Only fixed income?

If a person has $100,000 to invest today and can invest $30,000 every year for the next 35 years. This person needs to only average a 4.5% rate on their investment to break the $3M mark in 35 years. Aside from the fact that your $3 million is nominal, where are these municipal bonds yielding 4.5%? ...
by asset_chaos
Mon Jan 26, 2015 10:37 pm
 
Forum: Investing - Theory, News & General
Topic: Do any young investors use Only fixed income?
Replies: 35
Views: 3349

Re: What's wrong with volatility if buy&hold

azumz wrote:What's wrong with volatility if buy&hold

Nothing. Dial up the expected volitility for your portfolio of stocks and bonds that you can live with, and by definition you live with it and accept the returns of stocks and bonds that the markets give.
by asset_chaos
Mon Jan 26, 2015 6:05 am
 
Forum: Investing - Theory, News & General
Topic: What's wrong with volatility if buy&hold
Replies: 52
Views: 3492

Re: Market cap weighting flawed?

Why would you invest in a cap weighted global market index but only GDP weight Germany (or some select group of countries)? For that matter why would GDP weighting of a global stock index make sense? You first put all companies into boxes by virtue of where they say they're headquartered. Then the b...
by asset_chaos
Sun Jan 25, 2015 9:15 pm
 
Forum: Investing - Theory, News & General
Topic: Market cap weighting flawed?
Replies: 10
Views: 756

Re: Real 3% (CPI plus 3% guaranteed)

I'd dig deeply into the question of who conjures this guarentee and how they do it.
by asset_chaos
Thu Jan 22, 2015 4:52 am
 
Forum: Investing - Help with Personal Investments
Topic: Real 3% (CPI plus 3% guaranteed)
Replies: 21
Views: 1858

Re: Let's Celebrate! Which funds are you buying in 2015?

About 90% of my buying will be bonds, intermediate tax exempt, and 10% will be non-US small value. I don't think I'd call it celebrating. It's just planned maintenence.
by asset_chaos
Mon Jan 19, 2015 7:54 pm
 
Forum: Investing - Theory, News & General
Topic: Let's Celebrate! Which funds are you buying in 2015?
Replies: 48
Views: 3637

Re: Return of the Stockpickers

Every year ought to be a good year for stock pickers. The dispersion of returns---the return difference between the best and worst performing stocks---just in the S&P 500 is always large, greater than ~20% annually. If stock pickers were skilled, the opportunity is there for them every year to d...
by asset_chaos
Mon Jan 19, 2015 6:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: Return of the Stockpickers
Replies: 8
Views: 727

Re: Expense Ratios Comparison Total Stock 2008 vs. 2013

The headline expense ratios went down, which is good but not the whole story. The fraction of investor dollars in lower cost share classes also went up significantly: admiral plus signal plus institutional plus etf went from half of assets to 2/3.
by asset_chaos
Wed Jan 14, 2015 8:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Expense Ratios Comparison Total Stock 2008 vs. 2013
Replies: 9
Views: 816

Re: European investors - Hedging U.S. dollar position

The question of your foreign currency exposure is not as straight forward as it seems. First, the question should be considered in the context of one's entire portfolio. Do you have some bonds? You should, and they should be denominated in euros. Second---and this is a more speculative idea on my pa...
by asset_chaos
Tue Jan 13, 2015 7:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: European investors - Hedging U.S. dollar position
Replies: 9
Views: 727

Re: Risk Efficiency of Thrift Savings Plan Portfolio

Will you explain please what you mean by "risk efficient"? I, at least, am not familiar with that term. Otherwise, a 40/60 stock/bond portfolio for retirement is in the range of reasonable.
by asset_chaos
Tue Jan 13, 2015 6:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Risk Efficiency of Thrift Savings Plan Portfolio
Replies: 14
Views: 1181

Re: Best way to Follow Mr. Bogle appearances

Mr Bogle's website is http://johncbogle.com. That page may have his speaking schedule, or a contact for his assistant to ask when/if he'll make an appearance in your area.
by asset_chaos
Sun Jan 11, 2015 7:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Best way to Follow Mr. Bogle appearances
Replies: 2
Views: 420

Re: Marketcap vs. FACTOR indexing

Assuming fees are the SAME, would FACTOR indexing such as VALUE and MIN. Volatility be superior? My take is that it is a better way to index vs. marketcap. Superior, what does superior mean? I think you're forgetting about risk. To earn a factor premium means bearing a factor risk. I've seen some s...
by asset_chaos
Wed Jan 07, 2015 5:54 pm
 
Forum: Investing - Theory, News & General
Topic: Marketcap vs. FACTOR indexing
Replies: 15
Views: 1636

Re: Bilingual households

My thought was wouldn't it be nice to teach each other and the kids each other's language. This may be a good time to do it when they are pre-Kindergarten. For Bilingual or even Trilingual households, how do you teach your kids multiple languages without causing confusion. How do you teach your kid...
by asset_chaos
Mon Jan 05, 2015 8:47 pm
 
Forum: Personal Consumer Issues
Topic: Bilingual households
Replies: 39
Views: 5152

Re: Poll: How long have you been with your current AA?

As I glide (soar?) towards retirement, I increased the bond allocation target by 1 percentage point on January 1st.
by asset_chaos
Sat Jan 03, 2015 7:18 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: How long have you been with your current AA?
Replies: 44
Views: 2493

Re: [Poll] Why do you use indexing? (select multiple)

Among other reasons, I ticked the box for portfolio theory, but what I really mean by that is that indexing is the only investment management thesis where I understand why it works. I distincly remember reading through the Investment Company's book describing every mutual fund in America---in the 80...
by asset_chaos
Fri Jan 02, 2015 4:03 pm
 
Forum: Investing - Theory, News & General
Topic: [Poll] Why do you use indexing? (select multiple)
Replies: 26
Views: 1621

Re: Boglehead Recommended Vanguard Fund doing Poorly

Both of those have seem to be going up and down with very dramatic changes. ... Does this mean I chose a bad fund? The funds are not bad, but you may have chosen the funds poorly. The fluctuations that I see on the Morningstar chart for LifeStrategy Growth for periods of 1, 3, 5 and 10 years show e...
by asset_chaos
Fri Jan 02, 2015 1:15 am
 
Forum: Investing - Help with Personal Investments
Topic: Boglehead Recommended Vanguard Fund doing Poorly
Replies: 32
Views: 5705

Re: [Poll] If no capital gains tax, will you change investin

My investment strategy would not change. But cost-free transactions would put my rebalancing bands to zero. Instead of having a rebalancing event every couple of years, I might rebalance a couple of times a year. Although, I could not say with certainty that I'd be better off.
by asset_chaos
Thu Jan 01, 2015 5:20 pm
 
Forum: Investing - Theory, News & General
Topic: If no capital gains tax, will you change investing?
Replies: 12
Views: 1102

Re: Are 1041 trust tax returns difficult to prepare?

I suspect the trust tax paperwork burden is not much dfferent to that for an individual. If the trust's affairs are complex, then the trust's tax filing could be complex and time-consuming. If the trust's affairs are simple, then filling out the 1041 should be simple too. I prepare the 1041 and K-1s...
by asset_chaos
Wed Dec 31, 2014 8:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Are 1041 trust tax returns difficult to prepare?
Replies: 6
Views: 764

Re: [Foreign exchange risk (example: Russian mortgages)]

The Russians aren't the first people to be seduced by cheap, risky foreign currency loans, and they probably won't be the last. But your conclusion that this means international investing is a mistake is, I think, not correct. It does, however, illustrate the difference between international bond an...
by asset_chaos
Mon Dec 29, 2014 12:08 am
 
Forum: Investing - Theory, News & General
Topic: [Foreign exchange risk (example: Russian mortgages)]
Replies: 5
Views: 1035

Re: Feedback on lazy porfolio (EU version)

Emerging markets are currently around 10% of global market cap. In round terms, an initial stock allocation for you of 65:10 developed:EM would be much closer to your goal of investing in EM at global market weight. I'm not familiar with your bond choices, but, as you have all corporate bonds, you m...
by asset_chaos
Sun Dec 28, 2014 2:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Feedback on lazy porfolio (EU version)
Replies: 12
Views: 974

Re: Equal Weighted Funds - Better?

Is [equal weighting] really better than a regular cap weighted index fund? Should I switch over and dump my Vanguards? Equal-weighted is different, not better. It may have a higher expected return, but if it does, it would come with the assumption of higher risk, as Nisiprius has already shown. If ...
by asset_chaos
Sun Dec 28, 2014 3:00 am
 
Forum: Investing - Theory, News & General
Topic: Equal Weighted Funds - Better?
Replies: 31
Views: 2626

Re: POLL: How do you make important investment decisions?

I try to keep learning new things, testing ideas where feasible, and perhaps most importantly for me continuing to engage in some self-examination. Especially for asset allocation where finding one's own risk tolerance is so important, I find that last item to be key. I think I've improved my invest...
by asset_chaos
Sat Dec 27, 2014 6:15 pm
 
Forum: Investing - Theory, News & General
Topic: POLL: How do you make important investment decisions?
Replies: 27
Views: 2815

Re: Factor return premiums: academic theory vs. what you'll

Yep, there's more to a reasonable investment than a good story from data over one time period. Factors, I think, need three attributes before they become potentionally reasonable investments that I would consider committing money to. 1) They have to make economic sense and have real reasons why the ...
by asset_chaos
Tue Dec 23, 2014 9:08 pm
 
Forum: Investing - Theory, News & General
Topic: Factor return premiums: academic theory vs. what you'll get
Replies: 9
Views: 1236

Re: POLL: What are your monthly food expenses?

Last time I calculated this for our family it was around $10 per day per person, grocery store expenses only.
by asset_chaos
Tue Dec 23, 2014 8:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: POLL: What are your monthly food expenses?
Replies: 67
Views: 4911

Re: Which vanguard life strategy fund?Growth always outperfo

Risk is the answer to your question. 15 year returns for the LS Growth and Mod Growth from M* volatility return Sharpe ratio VASGX (80/20) 13.44 4.87 0.28 VSMGX (60/40) 10.26 5.18 0.35 Stocks over this 15 year period haven't repaid their greater volatility over bonds, hence the lower Sharpe ratio (m...
by asset_chaos
Sun Dec 21, 2014 8:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which vanguard life strategy fund?Growth always outperform?
Replies: 5
Views: 701

Re: Good, Brief Articles on the Boglehead Way?

The Bogleheads Wiki pages, perhaps; link labeled Wiki top right of this page. Also http://johncbogle.com/wordpress/ is Mr Bogle's webpage. That has lots of Bogle's papers and texts of his many speeches.
by asset_chaos
Fri Dec 19, 2014 6:29 pm
 
Forum: Investing - Theory, News & General
Topic: Good, Brief Articles on the Boglehead Way?
Replies: 11
Views: 1545

Re: [Australia] New Vanguard ETF's

Sure, take a look at them. To me it looks like the World ex-Aus fund (sort of) replaces the combination of World ex-US and US total market. The new fund would give an Australian investor the simpler two fund solution to index global equity markets and use VAS to have their precise preferred weightin...
by asset_chaos
Fri Dec 19, 2014 6:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: [Australia] New Vanguard ETF's
Replies: 3
Views: 597

Re: Outperforming vs Underperforming Investors in 2014

If one is a more or less globally indexed investor, then every year one owns the best and worst performing assets. It's part and parcel of index investing. And until I can tell beforehand which market sectors will under- and over-perform (a fool's erand), owning the entire market at low cost is, I b...
by asset_chaos
Fri Dec 19, 2014 5:37 am
 
Forum: Investing - Theory, News & General
Topic: Outperforming vs Underperforming Investors in 2014
Replies: 14
Views: 2430

Re: Better inflation-indexed guaranteed options?

What you're seeing, I believe, is just the cost of getting someone else to bear a risk for you. As (unexpected) inflation is a huge risk for a retired person, so the cost of sloughing that risk off to someone else is also huge. Even though the government now bears inflation risk for social security ...
by asset_chaos
Sun Dec 14, 2014 3:12 am
 
Forum: Investing - Theory, News & General
Topic: Better inflation-indexed guaranteed options?
Replies: 31
Views: 2590

Re: (Poll) Did you tap into emergency fund in the past 10 ye

I haven't used our emergency funds in the last 10 years, but I've certainly used it several times in the past when cash flows were more hand to mouth. And darn glad I was to have cash on hand at those times.
by asset_chaos
Sat Dec 13, 2014 4:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: (Poll) Did you tap into emergency fund in the past 10 years?
Replies: 64
Views: 5866

Re: Does 80/20 have more risk or volatility than 60/40?

You can go to the Morningstar pages for VAnguard's lifestrategy funds and look up the returns and volatilities for the 80/20 and 60/40 funds. The data is conveniently summarized in the ratings and risk tab; look for the volatility measures table. The 15 year numbers are volatility return Sharpe rati...
by asset_chaos
Fri Dec 12, 2014 9:32 pm
 
Forum: Investing - Theory, News & General
Topic: Does 80/20 have more risk or volatility than 60/40?
Replies: 25
Views: 2748

Re: Poll: International Equity Portfolio Changes

My core stock investment is through the total world fund. So, yes, I will stay the course, but no, I won't rebalance between foreign and domestic stocks because I will stay the course with whatever the total global stock market does. In fact, what I think I'll be doing---but I won't know until mid-J...
by asset_chaos
Thu Dec 11, 2014 6:50 am
 
Forum: Investing - Theory, News & General
Topic: Poll: International Equity Portfolio Changes
Replies: 6
Views: 685

Re: Reducing Sequence of Returns Risk

When you want to borrow during times of distress in the financial markets, how do you know that anyone will lend to you at that time? I recall in 2008 banks not lending and credit card companies arbitrarily slashing credit limits because they were conserving their own cash. An additional risk of a s...
by asset_chaos
Sat Dec 06, 2014 4:39 am
 
Forum: Investing - Help with Personal Investments
Topic: Reducing Sequence of Returns Risk
Replies: 15
Views: 2479
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