Search found 996 matches

by asset_chaos
Sun Jun 21, 2015 8:13 pm
Forum: Investing - Help with Personal Investments
Topic: European portfolio (how does it look)
Replies: 8
Views: 793

Re: European portfolio (how does it look)

At some point in everyone's investing life they'll need/want a healthy proportion of bonds in their investment portfolio. To me that suggests that even the young should hold some bonds in order the experience bond behavior over market cycles to (1) get used to how bonds work and (2) to help them ass...
by asset_chaos
Tue Jun 16, 2015 7:55 pm
Forum: Investing - Theory, News & General
Topic: Vanguard announces plans for money market fund lineup
Replies: 15
Views: 3039

Re: Vanguard announces plans for money market fund lineup

My reading is that prime and the other money funds are being designated "retail" so that no changes are necessary. The treasury and government money funds are going to be made to conform to the rules for "institutional" money market funds. There's a little more detail in Vanguard...
by asset_chaos
Sun Jun 14, 2015 9:27 pm
Forum: Investing - Help with Personal Investments
Topic: Bear Market strategies, if any
Replies: 61
Views: 6722

Re: Bear Market strategies, if any

Stay employed. If you have an income coming in, I suspect it's a lot easier to at least 'stay the course' during market downturns. I have no particular strategy otherwise. What I've done during big stock market drops has been: In 1987 when the US stock market dropped ~20% in one day, I did nothing; ...
by asset_chaos
Sat Jun 13, 2015 1:03 am
Forum: Investing - Help with Personal Investments
Topic: Indexing don't work outside of USA? [India]
Replies: 7
Views: 1301

Re: Indexing don't work outside of USA? [India]

Of course the active managers will trumpet that they're great, but arithmetic hasn't stopped working in India ( http://web.stanford.edu/~wfsharpe/art/active/active.htm ). It is theoretically possible for most active managers to beat the market average, but it takes very special circumstances that do...
by asset_chaos
Tue Jun 09, 2015 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard ETF vs Fund (Australia)
Replies: 3
Views: 343

Re: Vanguard ETF vs Fund (Australia)

I would not use (1) because of the needless entangling in the US tax and estate systems. On the ETF side I would not worry that the global ex-AU fund was not truly global. Missing emerging markets is suboptimal but not a deal breaker in view of the low cost and simplicity. As I said on the other thr...
by asset_chaos
Tue Jun 09, 2015 8:38 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Australia - All Weather
Replies: 11
Views: 996

Re: Vanguard Australia - All Weather

Vanguard will allow at their discretion for investors to be eligible for their wholesale funds depending on amount. For me, this was $100,000. Hey, that's good to know. Did you just ask, or were there other special circumstances? I'll soon have two investment amounts that are both---even if added t...
by asset_chaos
Wed Jun 03, 2015 7:12 pm
Forum: Investing - Theory, News & General
Topic: blog on study on active mgt in "inefficient" market
Replies: 6
Views: 614

Re: blog on study on active mgt in "inefficient" market

I think Bill Bernstein in "the intelligent asset allocator" made the same point that the high trading costs in supposedly inefficient markets render a passive approach as still most likely to succeed.
by asset_chaos
Mon Jun 01, 2015 8:09 pm
Forum: Personal Finance (Not Investing)
Topic: Math Junkies Enter....
Replies: 6
Views: 1071

Re: Math Junkies Enter....

The company still followed its policy. If y = 2x, x and y are proportional, but y increases twice as much as x. So company policy could be something like CEO pay = (1.05) times dividend increase---1.05 = 1.17/1.11---and CEO pay is still proportional to dividend increases, just with a constant of pro...
by asset_chaos
Mon Jun 01, 2015 7:58 pm
Forum: Investing - Theory, News & General
Topic: Research on the lottery effect in stock prices
Replies: 12
Views: 1502

Re: Research on the lottery effect in stock prices

The difference is in how much of the distribution is in positive or negative return territory. A situation with a positive skew distribution where the outcome is I win almost all of the time and I have a vanishingly small chance to win big is qualitatively different from a situation with positive sk...
by asset_chaos
Thu May 28, 2015 6:48 pm
Forum: Personal Consumer Issues
Topic: FBI background check: Go direct or use channeler?
Replies: 8
Views: 1270

Re: FBI background check: Go direct or use channeler?

Are you rushed for time and how much does a channeller cost? I recently had this done. I went direct and, yes, it took a couple of months to receive the results letter. Part of that delay was that I live overseas and the post takes longer. But I was in no hurry. As long as the FBI produced the lette...
by asset_chaos
Sat May 23, 2015 4:38 pm
Forum: Investing - Theory, News & General
Topic: Why not overweight international?
Replies: 37
Views: 3685

Re: Why not overweight international?

I see as little reason to overweight non-US as I do to underweight it.
by asset_chaos
Thu May 21, 2015 9:40 pm
Forum: Personal Finance (Not Investing)
Topic: Career Advice: Follow "Passion" or Follow the Money?
Replies: 73
Views: 4692

Re: Career Advice: Follow "Passion" or Follow the Money?

Not that it will help you---you have to decide for yourself what's important for you to live a satisfying life---but I chose the R&D route and haven't regretted it. By the way, mathematicians certainly do publish high quality work after age 40.
by asset_chaos
Thu May 21, 2015 9:27 pm
Forum: Investing - Theory, News & General
Topic: What if the US stock market was only 25% of the world by market cap?
Replies: 37
Views: 2740

Re: What if the US stock market was only 25% of the world by market cap?

I'm a total world kind of guy already, so I'd continue to be at market weight. Depending on why the US fraction of the global market cap declined, I might or might not notice the change---until it became the subject of a heated thread on Bogleheads.-)
by asset_chaos
Thu May 21, 2015 12:21 am
Forum: Investing - Help with Personal Investments
Topic: Desired asset allocation for temporary US person?
Replies: 12
Views: 969

Re: Desired asset allocation for temporary US person?

As a Scandinavian person who's going back to live in Scandinavia in a few years, as you say, I think your stock investments should be close to, if not at, global market weight. In your position there is no reason to overweight the US. I'd even say that anything other than a slight overweight to your...
by asset_chaos
Thu May 14, 2015 6:12 pm
Forum: Investing - Theory, News & General
Topic: At what point would you want "capped" indices?
Replies: 17
Views: 1341

Re: At what point would you want "capped" indices?

I don't think this will ever become an issue for a large economy like the US. Concentration is already an issue for small economies, i.e. most countries. The antidote to concentration risk is more global diversification.
by asset_chaos
Tue May 12, 2015 8:32 pm
Forum: Investing - Theory, News & General
Topic: Interactive Brokers (Best Kept Secret)
Replies: 63
Views: 6657

Re: Interactive Brokers (Best Kept Secret)

livesoft wrote:There are other criteria for a broker that are important, but so far I haven't seen them mentioned in this thread.

Heck, I'll bite. What are the important criteria for a good broker to have?
by asset_chaos
Tue May 12, 2015 8:15 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Australia - All Weather
Replies: 11
Views: 996

Re: Vanguard Australia - All Weather

From what you've written I would suggest a LifeStrategy fund. They give simplicity, which has an all too easy to underrate virtue, and a diversification of investments in Australian and overseas stocks and bonds. When you say "I'm keen for growth, but not for large risk", then maybe the Li...
by asset_chaos
Tue May 12, 2015 7:51 pm
Forum: Personal Consumer Issues
Topic: How to suggest downsizing to Parent
Replies: 23
Views: 2648

Re: How to suggest downsizing to Parent

Good luck with that. I tried for years to convince my mom with no success. Sometimes the objections aren't objective. I heard lots of reasons why lots of condos wouldn't suit. But, sometimes the reasons given for not moving are smokescreens because she doesn't want to tell you she's old, comfortable...
by asset_chaos
Mon May 11, 2015 10:45 pm
Forum: Investing - Theory, News & General
Topic: Interactive Brokers (Best Kept Secret)
Replies: 63
Views: 6657

Re: Interactive Brokers (Best Kept Secret)

IB seems to be available over much of the world and seems plugged in to many stock exchanges all over the world (at least the developed world). I considered them for a trust I will manage in Australia. While my research into brokerages is not advanced, two questions have put me off IB. One is an ina...
by asset_chaos
Sun May 10, 2015 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: Jack Bogle hates ETFs?
Replies: 22
Views: 2455

Re: Jack Bogle hates ETFs?

Bogle has used the analogy of ETFs to finely crafted shotguns, maybe later in the book Taylor quoted from or maybe in an article I read elsewhere. You can go hunting with the shotguns and that is their primary purpose, but you can also use them to blow your brains out. ETFs are fine when used for th...
by asset_chaos
Sun May 10, 2015 8:12 pm
Forum: Investing - Help with Personal Investments
Topic: Give your two cents on my Vanguard selections [UK, Australia, HK]
Replies: 20
Views: 1360

Re: Give your two cents on my Vanguard selections [UK, Australia, HK]

If you've already decided that keeping the investment in Australia makes sense for your itenerant lifestyle, tax situation, and retirement plans, on none of which I can comment; and, you already have an ASX enabled brokerage account, then perhaps you might consider some combination of these three ex...
by asset_chaos
Sun May 10, 2015 7:50 pm
Forum: Investing - Help with Personal Investments
Topic: Total World Stock Index
Replies: 44
Views: 4015

Re: Total World Stock Index

You don't really have to guess at the current numbers for total world index fund or it's index the FTSE global all cap index. The Vanguard fund page is here https://personal.vanguard.com/us/funds/snapshot?FundId=0628&FundIntExt=INT and the FTSE current fact sheet is here http://www.google.com.au...
by asset_chaos
Sat May 09, 2015 3:48 pm
Forum: Personal Consumer Issues
Topic: Snowbird Utah, what to do
Replies: 2
Views: 577

Snowbird Utah, what to do

I'll be in Snowbird Utah next week. I don't ski, and I suppose ski season is over anyway. I won't have a car. Any recommendations for hiking,biking or other activities, restaurants and the like. Thanks.
by asset_chaos
Fri May 08, 2015 10:27 pm
Forum: Investing - Theory, News & General
Topic: Should You Time the Markets When Experts Can’t?
Replies: 21
Views: 2390

Re: Should You Time the Markets When Experts Can’t?

My personal answer is an unequivocal, No, I should not try to time markets. For myself I'd even go further: I shouldn't try to time markets even if (somehow, somewhere) someone could demonstrate that experts could.
by asset_chaos
Tue May 05, 2015 1:52 am
Forum: Investing - Theory, News & General
Topic: Vanguard: The Problem of World Domination?
Replies: 21
Views: 2892

Re: Vanguard: The Problem of World Domination?

As an index fund owner of everything, I don't think I care if one public company takes over another, hostile or friendly. Except for the deadweight loss of legal fees (and maybe investment banking fees) involved in the process, it's just a rearrangement of cash flows that all still end up in the poc...
by asset_chaos
Tue May 05, 2015 1:26 am
Forum: Investing - Theory, News & General
Topic: Investors dumping US stocks for better opportunities abroad
Replies: 11
Views: 1964

Re: Investors dumping US stocks for better opportunities abroad

A lot of the financial press just touts what's done well lately. I'll guess that an article like this means that non-US has done better than US this month or quarter or year. In fact, let's look it up: Vanguard says total stock market index fund is up 3.6% ytd while total international stock index f...
by asset_chaos
Sun May 03, 2015 7:38 pm
Forum: Investing - Theory, News & General
Topic: 10 index fund allocation how does it stack up?
Replies: 23
Views: 2515

Re: 10 index fund allocation how does it stack up?

That 10 index fund portfolio, like most index fund based portfolios, can do well for an investor. It's low cost and well diversified, which are two essential attributes. It falls down a bit in that the complexity may make it more difficult for an investor to stick with it and rebalance to it year af...
by asset_chaos
Sat May 02, 2015 4:57 am
Forum: Investing - Help with Personal Investments
Topic: How to invest 15 years of living expenses
Replies: 13
Views: 1664

Re: How to invest 15 years of living expenses

If it were me, I'd consider having three investments. One year of expenses ($75k) I'd put in a money market fund or online checking account, whichever paid better and was more convenient for paying my bills. Four years of expenses ($300k) I'd put in a short term bond fund (short term bond index, sho...
by asset_chaos
Fri May 01, 2015 5:23 am
Forum: Investing - Theory, News & General
Topic: Malkiel on Smart Beta/Factor Investing ... times 4
Replies: 21
Views: 1886

Re: Malkiel on Smart Beta/Factor Investing ... times 4

For planning purposes I would say that a conservative approach would suggest that at best you consider factor premia to be fair compensation for extra risk, i.e. no better risk adjusted returns than the market. If the behavioralists are right and premia come from systemic, pervasive investor mispric...
by asset_chaos
Fri May 01, 2015 5:03 am
Forum: Investing - Theory, News & General
Topic: Australian Article says you DO get what you pay for.
Replies: 4
Views: 778

Re: Australian Article says you DO get what you pay for.

It's simply a trueism that all investors in aggregate get the market average. That's true in the Australian market, the global market, any market you care to define. I can think of only two ways that unbiased---and surely the ABC would never be sloppy in its reporting---data could show active manage...
by asset_chaos
Thu Apr 30, 2015 9:58 pm
Forum: Investing - Help with Personal Investments
Topic: Total Bond Index Fund or Other?
Replies: 19
Views: 2396

Re: Total Bond Index Fund or Other?

If you've been investing in total bond fund for a number of years, is there a compelling reason to change? Sure, you can fiddle around with bond risk a little bit , for example, somewhat lower risk with intermediate term treasury fund with no corporates, or somewhat higher risk with intermediate ter...
by asset_chaos
Wed Apr 29, 2015 7:09 pm
Forum: Investing - Help with Personal Investments
Topic: DFA as a new 401k option - Poll
Replies: 12
Views: 1011

Re: DFA as a new 401k option - Poll

Access to DFA in the retirement plan wouldn't be a factor in my decision to change jobs or not. But, since I value tilt now, if I found DFA funds were available, I'd use the two non-US small-value funds and phase out the wisdomtree combination I use now. Somewhat lower cost and probably better facto...
by asset_chaos
Mon Apr 27, 2015 3:43 pm
Forum: Personal Finance (Not Investing)
Topic: non-US citizen spouse TIN and WILLS and TRUST questions
Replies: 5
Views: 732

Re: non-US citizen spouse TIN and WILLS and TRUST questions

I don't quite understand your situation but trans-national estate planning is fraught with difficulty and seemingly small differences in circumstance bring into play subtle parts of US law with important consequences. Between my non-citizen spouse and I we have property in three countries, and it wa...
by asset_chaos
Sat Apr 25, 2015 7:25 am
Forum: Investing - Theory, News & General
Topic: International Stock Poll: Emerging vs Developed Ratio
Replies: 55
Views: 3070

Re: International Stock Poll: Emerging vs Developed Ratio

A number of years ago (2009 to be precise) I moved to total world as my core stock investment. I don't know, though I could easily look it up, what the current split between emerging and developed is. I actually find it quite nice not needing to know that and other bits of information about how peop...
by asset_chaos
Thu Apr 16, 2015 8:46 pm
Forum: Investing - Theory, News & General
Topic: Will Saudi Arabia be added into Total International Stock?
Replies: 19
Views: 3098

Re: Will Saudi Arabia be added into Total International Stoc

What Saudi based companies either government or publically owned would be large enough to be included in a world ex-US or total world index fund? Only Aramco (oil) and Sabic (chemicals) come to mind as big global companies and to date they've been wholly Saudi government owned. Are there any others,...
by asset_chaos
Thu Apr 16, 2015 8:34 pm
Forum: Investing - Theory, News & General
Topic: Why not rebalance with reinvested dividends?
Replies: 11
Views: 1814

Re: Why not rebalance with reinvested dividends?

I don't think I understand. If you have two stock index funds A and B and the share price of A goes up a bunch while that of B goes down a bunch, the dividend yield of A goes down and that of B goes up, but the actual number of dollars paid out doesn't typically go up or down on the same time scale ...
by asset_chaos
Tue Apr 14, 2015 9:10 pm
Forum: Investing - Help with Personal Investments
Topic: Windfall in a foreign currency [NZ dollars, UK resident]
Replies: 5
Views: 634

Re: Windfall in a foreign currency

As you're proposing to use (most, all of, some of?) this money in a few months to purchase real estate in the UK, then, if the money is in liquid form in NZ now, I suggest you transfer it to your UK bank account now, so the money will be ready and available when you want to make your purchase.
by asset_chaos
Sat Apr 11, 2015 9:26 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Question - Australia
Replies: 15
Views: 1102

Re: Vanguard Question - Australia

The whole tax side of things is something else I'm going to have to look into, I have no idea how any of that works with respect to investments. I just assume you would get taxed on dividends and withdrawals, but I'm going to have to look it up to make sure it doesn't ruin anything in the long run....
by asset_chaos
Fri Apr 10, 2015 10:51 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Question - Australia
Replies: 15
Views: 1102

Re: Vanguard Question - Australia

There is a difference between Vanguard mutual funds and Vanguard exchange traded funds (etfs). The mutual funds can only be invested in by opening an account at Vanguard, in the case of the OP Vanguard Australia. The etfs can be invested in through any brokerage account that connects you to the ASX....
by asset_chaos
Sat Apr 04, 2015 10:51 pm
Forum: Investing - Help with Personal Investments
Topic: Why Vanguard Why? [Problems opening new account]
Replies: 85
Views: 7764

Re: Why Vanguard Why?

Into every life a little rain must fall, I guess. Since I pre-date the ubiquitous internet, I opened my Vanguard account by mailing in a paper form along with one of those paper things called a check---queue the creak of a rocking chair. If there is some glitch in the online account opening forms, t...
by asset_chaos
Wed Apr 01, 2015 5:38 am
Forum: Investing - Theory, News & General
Topic: Can consumers assess the value of life annuities?
Replies: 7
Views: 852

Re: Can consumers assess the value of life annuities?

Not to be too smart-alecky about it, but the majority of adults are functionally innumerate. Financial ignorance is just a by-product of the general inability of being able to cope with anything that requires converting numbers into meaning or vice versa.
by asset_chaos
Tue Mar 24, 2015 6:40 pm
Forum: Investing - Theory, News & General
Topic: When everyone "knows" the euro will fall
Replies: 7
Views: 1470

Re: When everyone "knows" the euro will fall

Sometimes "everyone" is right, and sometimes "everyone" is wrong, and sometimes "everyone" is right for a while then wrong later, or vice versa. As I find it difficult to discern in advance which time is which, I tend to ignore everyone's opinion---at least about invest...
by asset_chaos
Sat Mar 21, 2015 5:38 pm
Forum: Investing - Help with Personal Investments
Topic: Lump sum - how to invest it now and sleep at night?
Replies: 27
Views: 3701

Re: Lump sum - how to invest it now and sleep at night?

I think whether you keep the same allocation or change to a more conservative one depends on how big this lump sum is compared to your financial assets without it. If the lump sum is 10 or 20% of your financial wealth now, then invest the lump sum now. If you were ok with 80:20 yesterday, what's dif...
by asset_chaos
Sat Mar 21, 2015 5:20 pm
Forum: Investing - Theory, News & General
Topic: How much international stock for a foreigner
Replies: 23
Views: 1366

Re: How much international stock for a foreigner

Why is China so under represented in the FTSE all world equity index? At first look I don't like this at all. China is the rising superpower. Isn't this an effect of free float? Most indices (FTSE, MSCI, et al) use free float weighting. The weight of a company is the total market capitalization min...
by asset_chaos
Sat Mar 21, 2015 5:07 pm
Forum: Investing - Theory, News & General
Topic: How much international stock for a foreigner
Replies: 23
Views: 1366

Re: How much international stock for a foreigner

I think your split of the stock allocation is reasonable for your circumstances. It overweights your home market some but not excessively. My hesitation is that your parents' retirement fund is 70:30 stocks:bonds. I'm guessing your parents are at least in their 50s. If it were me, I would want my re...
by asset_chaos
Fri Mar 20, 2015 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: Trusts taxes distributions
Replies: 4
Views: 453

Re: Trusts taxes distributions

It's not exactly that tax rates are high. Tax rates for trusts are the same as for individuals. The difficulty is that the tax brackets are highly condensed, with a tax free threshold of only $600 and the top tax rate kicking in at around $12,000 of income. Distribution will get the money taxed at t...
by asset_chaos
Wed Mar 18, 2015 8:03 pm
Forum: Investing - Theory, News & General
Topic: Vanguard - The New Bond King - WSJ
Replies: 27
Views: 4628

Re: Vanguard - The New Bond King - WSJ

Instead of a King, he's like a plumber. I think less a plumber and more like a power plant operator. In the plant you want the needles on the dials to stay at particular points, and the operator's job is to continually adjust the plant's controls so that those needles stay on those optimum numbers....
by asset_chaos
Mon Mar 16, 2015 1:30 am
Forum: Investing - Help with Personal Investments
Topic: Advice needed on proposed portfolio (Australia)
Replies: 8
Views: 825

Re: Advice needed on proposed portfolio (Australia)

Yes, there is certainly going to be fiddling done to the super rules over the next 30 years. You're right that politicians can't help themselves, and anything that depends on a political decision to gain an investment advantage always runs the risk of having that political decision changed. But none...

Go to advanced search