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Re: Did you learn anything from 2008?

I learned the importance of Mr. Bogle's experienced advice: Stay the Course. (Vanguard's S&P 500 Index Fund is up more than 200% since the bottom of the 2008-2009 market downturn.) Best wishes. Taylor Taylor, I have a hunch you knew the importance of staying the course long before 2008! :) Brad
by baw703916
Mon Mar 30, 2015 6:35 pm
 
Forum: Investing - Theory, News & General
Topic: Did you learn anything from 2008?
Replies: 67
Views: 4242

Re: RMDs for 25-year-old - take out enough to fund annual Ro

does she have access to a 401k, though?
by baw703916
Mon Mar 30, 2015 3:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: RMDs for 25-year-old - take out enough to fund annual Roth?
Replies: 38
Views: 1885

Re: Did you learn anything from 2008?

I learned that CNBC can make for a surprisingly entertaining reality show when everyone starts having a meltdown. I also learned that value of Treasury bonds (accept no substitutes) as an insurance policy against a financial panic.
by baw703916
Mon Mar 30, 2015 3:02 pm
 
Forum: Investing - Theory, News & General
Topic: Did you learn anything from 2008?
Replies: 67
Views: 4242

Re: Bond Interest - No Where to Go But Up?

At some point I would think that hoarding of physical Federal Reserve Notes would become a significant problem if nominal interest rates went sufficiently negative. There is a little over $4000 in Federal reserve notes per capita outstanding, so if everyone just decided to keep more than a few hundr...
by baw703916
Mon Mar 30, 2015 1:21 pm
 
Forum: Investing - Theory, News & General
Topic: Bond Interest - No Where to Go But Up?
Replies: 8
Views: 1092

Re: Russell 1000 and Russell 2000 total returns since incept

On the other hand, 10 year annualized total return for the extended market index is 9.89%, vs. 8.06% for the S&P 500.
by baw703916
Thu Mar 26, 2015 4:00 pm
 
Forum: Investing - Theory, News & General
Topic: Russell 1000 and Russell 2000 total returns since inception
Replies: 11
Views: 778

Re: "Mind the Gap"

So if someone had put everything into TSM six years ago and never rebalanced since then even as the investment more than tripled in value... I think he would be in for a lot of criticism on this board! So, what are investors doing with their money right now? I want to know, because they're always wr...
by baw703916
Sun Mar 22, 2015 7:43 pm
 
Forum: Investing - Theory, News & General
Topic: "Mind the Gap"
Replies: 9
Views: 2302

Re: "Small-Cap Indexing: Popularity Can Be a Pain"

Actually, the stocks you want to invest in are the ones that are not in the S&P 500 nor the R2000.
by baw703916
Sun Mar 22, 2015 6:45 pm
 
Forum: Investing - Theory, News & General
Topic: "Small-Cap Indexing: Popularity Can Be a Pain"
Replies: 14
Views: 2131

Re: Foreign stocks/bonds may be less beneficial for retirees

Nisiprius, Two comments: For a longer time period, comparing the EAFE index and the S&P 500 can get you back to 1970. Over that entire time, the annualized return of the two has been very close (within about 10 bp the last time I calculated it), but the standard deviation of the EAFE has been se...
by baw703916
Sun Mar 22, 2015 3:31 pm
 
Forum: Investing - Theory, News & General
Topic: Foreign stocks/bonds may be less beneficial for retirees
Replies: 26
Views: 2328

Re: Foreign stocks/bonds may be less beneficial for retirees

But isn't currency risk the reason for the greater volatility of foreign stocks? Maybe not for Emerging Markets, but for IDM I don't see any reason for greater volatility apart from currency risk. So points 1 and 2 are really different ways of saying the same thing. Does the addition of internationa...
by baw703916
Sun Mar 22, 2015 2:28 pm
 
Forum: Investing - Theory, News & General
Topic: Foreign stocks/bonds may be less beneficial for retirees
Replies: 26
Views: 2328

Re: Why Funds Over ETFs?

The fact that Vanguard has ETF shares for pretty much all of its index funds minimizes the likelihood of the funds distributing capital gains. This benefits even investors who don't own the ETF shares (since gains much be distributed among all share classes). Are ETF in the same basket as mutual fu...
by baw703916
Sat Mar 21, 2015 4:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why Funds Over ETFs?
Replies: 57
Views: 5364

Re: Why Funds Over ETFs?

But isn't that a personal preference by Mr. Bogle, rather than a principle that all investors should follow? I've owned ETFs from Vanguard and a few other companies for over ten years (pretty much the same ones for that entire time) and have never felt the urge to trade them. The fact that Vanguard ...
by baw703916
Sat Mar 21, 2015 3:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why Funds Over ETFs?
Replies: 57
Views: 5364

Re: Economist Article on role of government bonds

What this is saying is that high quality government bonds in particular (Treasuries, Bunds, Gilts) are often the beneficiary of a "flight to safety" in times of financial turmoil, beyond even the fact that bonds in general are less volatile than stocks. Hint: what was the one asset class t...
by baw703916
Sat Mar 21, 2015 2:30 pm
 
Forum: Investing - Theory, News & General
Topic: Economist Article on role of government bonds
Replies: 11
Views: 1702

Re: "Financial Simplicity: What is Your Time Worth?"


Every financial decision should lead to less time, less paper, less cost, less worry, and less bother.


But if you really take this literally, wouldn't one avoid setting up a 529, a HSA, an SEP-IRA if they have some self-employment income, etc?
by baw703916
Fri Mar 20, 2015 4:10 pm
 
Forum: Investing - Theory, News & General
Topic: "Financial Simplicity: What is Your Time Worth?"
Replies: 27
Views: 3570

Re: STEM Job Offer Advice: Govt Contractor vs Industry

It's a technical position, but you need to raise 100% of your salary from grants (or find someone with grants who will support you). So while it may be permanent, it's still based off soft money. OK, thanks for the explanation. Well, I'm a Federal employee in a Federal lab, and the soft money thing...
by baw703916
Thu Mar 19, 2015 10:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: STEM Job Offer Advice: Govt Contractor vs Industry
Replies: 26
Views: 2073

Re: CPA, CFP, CFA, MBA - all needed to be a financial advise

LadyGeek wrote:"Member of a major stock exchange" doesn't mean much - is he a broker-dealer?
.


Hey, I just realized something. SInce NYSE Group (ticker:NYX) is a publicly traded company, and presumably in TSM, we are all owners of a major stock exchange! :D :moneybag
by baw703916
Thu Mar 19, 2015 10:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: CPA, CFP, CFA, MBA - all needed to be a financial adviser?
Replies: 19
Views: 1294

Re: CPA, CFP, CFA, MBA - all needed to be a financial advise

I'm not sure if Bill Bernstein has any of those degrees, but I'd be happy to have him as my financial advisor. I'd be happy to have him as my neurologist, for that matter (but that's another story).
by baw703916
Thu Mar 19, 2015 8:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: CPA, CFP, CFA, MBA - all needed to be a financial adviser?
Replies: 19
Views: 1294

Re: STEM Job Offer Advice: Govt Contractor vs Industry

There are many fine people at national labs looking for dates. Unlike at a company where dating a co-worker is problematic, a national lab will have many people not considered co-workers and good catches, too. Plus who else are they going to date? :) Well there's the slight problem of a gender imba...
by baw703916
Thu Mar 19, 2015 7:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: STEM Job Offer Advice: Govt Contractor vs Industry
Replies: 26
Views: 2073

Re: STEM Job Offer Advice: Govt Contractor vs Industry

Is the National Lab a GOCO (government-owned, contractor operated) facility? And is the position a technical staff (essentially permanent) position, or is something of less permanence? The thing is that the term "government contractor" covers an awful lot of ground. Technically, everybody ...
by baw703916
Thu Mar 19, 2015 6:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: STEM Job Offer Advice: Govt Contractor vs Industry
Replies: 26
Views: 2073

Re: 74% of car loans are subprime.

How is this actionable (other than not taking out a high interest rate car loan yourself)?

There will always be lots of people doing financially stupid things.

Ignore them.
by baw703916
Thu Mar 19, 2015 12:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: 74% of car loans are subprime.
Replies: 29
Views: 2017

Re: Why Funds Over ETFs?

Hmm. I'm not sure I understand this concept. I've owned VTI since 2008 (it's actually my largest holding) and I've never sold any of it. In fact the thought has never even crossed my mind to sell any of it.
by baw703916
Thu Mar 19, 2015 12:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why Funds Over ETFs?
Replies: 57
Views: 5364

Re: Five most important things to be a successful investor?

Staying healthy is certainly desirable, but not always possible. Some things can be positively influenced by lifestyle, but many can't.
by baw703916
Wed Mar 18, 2015 6:05 pm
 
Forum: Investing - Theory, News & General
Topic: Five most important things to be a successful investor?
Replies: 31
Views: 3189

Re: Pemera Blue Cross Hacked

Yes, the bigger issues (filing a fraudulent tax return or getting hold of health records and selling them/using them for blackmail) aren't going to be prevented by a credit freeze. So a credit freeze may be prudent but is completely inadequate protection.
by baw703916
Wed Mar 18, 2015 2:36 pm
 
Forum: Personal Consumer Issues
Topic: Pemera Blue Cross Hacked
Replies: 5
Views: 441

Re: Why Funds Over ETFs?

toto238 wrote:Don't even get me started with the requirements to do an in-kind Roth Conversion.


That is what I have done (SEP -> Roth). It's quite easy at E*TRADE
by baw703916
Tue Mar 17, 2015 12:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why Funds Over ETFs?
Replies: 57
Views: 5364

Re: Five most important things to be a successful investor?

1. Save as much as you can.
2. Understand the concepts of Modern Portfolio Theory.
3. Use appropriate diversification and risk exposure.
4. Ignore your emotions.
5. Ignore other people.
by baw703916
Tue Mar 17, 2015 11:39 am
 
Forum: Investing - Theory, News & General
Topic: Five most important things to be a successful investor?
Replies: 31
Views: 3189

Re: Why Funds Over ETFs?

Another thing to note is ease of transaction moving money between accounts. If I want to move $1000 of my Total Stock Market from my taxable account into my Roth IRA as a contribution, it's much easier to do so with the mutual fund. I click a couple buttons and it goes through with that day's trade...
by baw703916
Tue Mar 17, 2015 11:26 am
 
Forum: Investing - Help with Personal Investments
Topic: Why Funds Over ETFs?
Replies: 57
Views: 5364

Re: Why Funds Over ETFs?

Let me just point out that ETFs *are* funds (that's what the F stands for). So it's kind of like asking whether cars are better than convertibles.
by baw703916
Tue Mar 17, 2015 8:41 am
 
Forum: Investing - Help with Personal Investments
Topic: Why Funds Over ETFs?
Replies: 57
Views: 5364

Re: If I Knew Then What I Know Now

This advice contains a lot of good points, and I'm sure it will serve the majority of the audience members well (assuming they listen and follow it). It isn't, however, the advice I would give my own 20 year old self (I just turned 50 a couple years ago). By that I mean no disrespect for Michael or ...
by baw703916
Mon Mar 16, 2015 9:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: If I Knew Then What I Know Now
Replies: 51
Views: 7395

Re: An oddball portfolio suggestion: TR Income + equities

Funny you should mention this. Today I moved the majority of my TSP account to an L fund (equivalent of a TR fund).
by baw703916
Mon Mar 16, 2015 7:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: An oddball portfolio suggestion: TR Income + equities
Replies: 5
Views: 630

Re: What does a $1M portfolio look like?

What would be interesting is if any Bogleheads (or someone they know) have a portfolio in excess of $1,000,000 with only a Target or LifeStrategy fund. +1 I plan to do it with the Vanguard Balanced Index Fund. That is the Jack Bogle way! That only works well if you have a 100% tax-advantaged portfo...
by baw703916
Sun Mar 15, 2015 10:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: What does a $1M portfolio look like?
Replies: 64
Views: 9961

Re: Edward Jones - A Detrimental Option for Investors

A friend of mine (whom I've more or less indoctrinated with Bogleheadism) said the following while watching an EJ commercial on TV:

"Look at that nicely-dressed investor in the Edward Jones commercial. He must be doing really well if he can afford to pay loads."
by baw703916
Sun Mar 15, 2015 3:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Edward Jones - A Detrimental Option for Investors
Replies: 13
Views: 2457

Re: Tax vs. Tax-exempt bonds.Difference in returns historica

I think that rather than trying to compare the historical returns of two funds which may not have the same duration or credit risk, it's more illustrative to compare yields of 10 year Treasuries and 10 year AAA-rated munis. Here's one place where the relative yields, before and after the financial c...
by baw703916
Sun Mar 15, 2015 12:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax vs. Tax-exempt bonds.Difference in returns historically?
Replies: 8
Views: 710

Re: What does a $1M portfolio look like?

Every million dollar portfolio has two commas. ;)
by baw703916
Sat Mar 14, 2015 4:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: What does a $1M portfolio look like?
Replies: 64
Views: 9961

Re: Malkiel's "Random Walk..." Questions

Do Bogleheads generally recommend reading this book? It is often recommended. I think it is noteworthy primarily for being one of the first widely-read books to espouse the principles endorsed on this board. Certainly someone who reads it and follows its recommendations will avoid many mistakes and...
by baw703916
Wed Mar 11, 2015 1:14 pm
 
Forum: Investing - Theory, News & General
Topic: Malkiel's "Random Walk..." Questions
Replies: 28
Views: 2438

Re: Malkiel's "Random Walk..." Questions

I agree with pretty much all of the book's conclusions, but I can't get past the issue that if the market follows a random walk, then why don't returns follow a normal distribution? Also, the magnitude of fluctuations doesn't scale with the time interval to the 1/2 power, as it should in a random w...
by baw703916
Wed Mar 11, 2015 12:15 pm
 
Forum: Investing - Theory, News & General
Topic: Malkiel's "Random Walk..." Questions
Replies: 28
Views: 2438

Re: What are some common misconceptions found in this forum?

Small value funds aren't tax efficient.

ETFs are fundamentally different that mutual funds and shouldn't be used in a Boglehead portfolio.

and as previously stated in this thread:

livesoft wrote: Bonds must go in tax-advantaged accounts.

Equities must go in taxable accounts.
by baw703916
Wed Mar 11, 2015 10:02 am
 
Forum: Personal Finance (Not Investing)
Topic: What are some common misconceptions found in this forum?
Replies: 209
Views: 17356

Re: Malkiel's "Random Walk..." Questions

I agree with pretty much all of the book's conclusions, but I can't get past the issue that if the market follows a random walk, then why don't returns follow a normal distribution? Also, the magnitude of fluctuations doesn't scale with the time interval to the 1/2 power, as it should in a random wa...
by baw703916
Wed Mar 11, 2015 9:56 am
 
Forum: Investing - Theory, News & General
Topic: Malkiel's "Random Walk..." Questions
Replies: 28
Views: 2438

Re: International value: worth the fees?

minesweep wrote:The expense fee for VSS is .19% but you need to consider the bid/ask spread too. The average bid/ask spread for VSS is 12 cents.

Mike


At least that is only a one time expense though. If you buy and hold for a good long while, the equivalent annual cost becomes quite low.
by baw703916
Sun Mar 08, 2015 7:58 pm
 
Forum: Investing - Theory, News & General
Topic: International value: worth the fees?
Replies: 24
Views: 1948

Re: International value: worth the fees?

Good call on EFV. Unfortunately Fidelity does not offer EFV under free commission. So VTRIX is out as an actively managed fund. I am surprised Vanguard does not offer a proper international value fund then. It looks like VSS has a slight value tilt according to Morningstar X-ray, so this may have t...
by baw703916
Sun Mar 08, 2015 5:29 pm
 
Forum: Investing - Theory, News & General
Topic: International value: worth the fees?
Replies: 24
Views: 1948

Re: International value: worth the fees?

I would recommend iShares' ETF EFV over Vanguard's VTRIX for people wanting to invest in a ILV fund:

EFV is an index fund, VTRIX is active,
EFV is cheaper (0.40 vs. 0.44)

Even if VTRIX had Admiral shares, there would be a $50K minimum, given that it's an active fund.
by baw703916
Sun Mar 08, 2015 2:04 pm
 
Forum: Investing - Theory, News & General
Topic: International value: worth the fees?
Replies: 24
Views: 1948

Re: Mark Cuban "Tech Crash Coming" - do you agree?

If I understand things correctly, he's saying that publicly traded companies are much more mature (in terms of having a plausible business model and the likelihood of profits in the foreseeable future) than 15 years ago. So what's the problem? He's pointing out that investing in startup tech compani...
by baw703916
Sat Mar 07, 2015 1:55 pm
 
Forum: Investing - Theory, News & General
Topic: Tech Stock Valuations--Mark Cuban's "Bubble"
Replies: 20
Views: 2246

Re: 3 Costs Investors Must Control

Wildebeest wrote:I also was taken by the graphics of triangle within a triangle


How about something like this, in which costs will eventually eat up all of the portfolio's value?
Image

Better not give the high E/R crowd any ideas, though!
by baw703916
Fri Mar 06, 2015 9:58 pm
 
Forum: Investing - Theory, News & General
Topic: 3 Costs Investors Must Control
Replies: 61
Views: 5298

Re: 3 Costs Investors Must Control

So who receives the money that bad investors pay in behavioral costs? Does it end up as transaction costs, or does it create alpha for someone else?
by baw703916
Fri Mar 06, 2015 12:40 am
 
Forum: Investing - Theory, News & General
Topic: 3 Costs Investors Must Control
Replies: 61
Views: 5298

Re: Thought for the Day: Invest Logically

Little article about how Vulcan's might invest: http://www.marketwatch.com/story/how-to-invest-like-leonard-nimoys-mr-spock-2015-02-27?rss=1 Vanguard even came out with a Vulcan investing blog post: http://vanguardblog.com/2014/06/30/invest-like-a-vulcan/ Mike I loved both of these! Thanks for shar...
by baw703916
Wed Mar 04, 2015 7:25 pm
 
Forum: Investing - Theory, News & General
Topic: Thought for the Day: Invest Logically
Replies: 18
Views: 2039

Re: What's your average ER? [Expense Ratio]

LadyGeek wrote:small numbers like expense ratios


Hopefully they're small numbers, lol!
by baw703916
Mon Mar 02, 2015 11:57 pm
 
Forum: Investing - Theory, News & General
Topic: What's your average ER? [Expense Ratio]
Replies: 123
Views: 7161

Re: Poll: Average E/R [Expense Ratio]

This board sure has taken the message of minimizing costs to heart.
by baw703916
Mon Mar 02, 2015 10:54 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: Average E/R [Expense Ratio]
Replies: 24
Views: 1328

Re: Poll: Average E/R [Expense Ratio]

LadyGeek wrote:It makes sense to merge the threads, but doing so will reset the poll (or remove it). I'll leave the threads separate.


Good point, and thanks, LG.
by baw703916
Mon Mar 02, 2015 10:08 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: Average E/R [Expense Ratio]
Replies: 24
Views: 1328

Re: Taylor Larimore Honored

Congratulations, Taylor.

Speaking of the 1935 Hurricane story, I can't help but thinking that a great answer to "where are all the customers' yachts?" would be "one ended up in my yard!" :)
by baw703916
Mon Mar 02, 2015 9:58 pm
 
Forum: Investing - Theory, News & General
Topic: Taylor Larimore Honored
Replies: 59
Views: 5071

Re: Market Beating Recipe

VictoriaF wrote:The best recipe is cooking the books.

Explanation: You can't reliably beat the market, unless you have insider information.

Victoria


For Nisiprius, we could add a topping of French-fried vegemite! 8-)
by baw703916
Mon Mar 02, 2015 4:26 pm
 
Forum: Investing - Theory, News & General
Topic: Market Beating Recipe
Replies: 19
Views: 1877

Re: Nasdaq Record High....

It closed above 5000 today. So it's possible for the premise of the OP to be wrong: a new high could be set less than 15 years after the old one (there's about a week left for that to happen).
by baw703916
Mon Mar 02, 2015 4:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Nasdaq Record High....
Replies: 25
Views: 1959

Re: Market Beating Recipe

One of Buffett's favorite sayings: "Be fearful when others are greedy and greedy only when others are fearful." Early 2009 was a great time to invest. Heck, Buffett himself even wrote an Op-Ed in the NYT saying it was, for anyone who wanted to follow his advice. Very simple. Not very easy ...
by baw703916
Mon Mar 02, 2015 3:19 pm
 
Forum: Investing - Theory, News & General
Topic: Market Beating Recipe
Replies: 19
Views: 1877
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