Search found 3706 matches

by bertilak
Sun Jun 28, 2015 9:26 am
Forum: Investing - Theory, News & General
Topic: Alternative theories
Replies: 53
Views: 4544

Re: Alternative theories

But once flash trading became "revealed", the existing advantage was gone, and they had to come up with some new way to outwit other investors. I think that is a key insight. I see two way of investing: ⋅ Share in the growth, earnings and risks of the companies that make up our ...
by bertilak
Sun Jun 28, 2015 9:01 am
Forum: Investing - Theory, News & General
Topic: Decumulation Phase and BH principles
Replies: 49
Views: 5740

Re: Decumulation Phase and BH principles

Old Guy wrote:Why don't you just spend the money you spent so much time saving and enjoy the rest of your life?

To paraphrase a statement from one of my favorite books (The Friends of Eddie Coyle)

    "This life is hard. It's harder if you don't pay attention."
I'm just trying to pay attention.

(The OP)
by bertilak
Sat Jun 27, 2015 6:20 pm
Forum: Investing - Theory, News & General
Topic: RMDs as "Transfer In Kind"
Replies: 7
Views: 765

Re: RMDs as "Transfer In Kind"

If the fund being "transferred" from the IRA is a high dividend fund (i.e. a bond or a balanced fund), does one really want it in a taxable account? Maybe this transfer process applies more to equity funds only. BTW, I checked with Vanguard and they do allow such a transfer even if one do...
by bertilak
Sat Jun 27, 2015 6:16 pm
Forum: Investing - Theory, News & General
Topic: RMDs as "Transfer In Kind"
Replies: 7
Views: 765

Re: RMDs as "Transfer In Kind"

Anything you transfer out of a TIRA, no matter how you do it, should be a taxable withdrawal. Thus, you should pay taxes on the entire withdrawal as ordinary income and your basis in the taxable account would be the market value at the time of transfer. I should have looked at it that way. Once you...
by bertilak
Sat Jun 27, 2015 6:11 pm
Forum: Investing - Theory, News & General
Topic: RMDs as "Transfer In Kind"
Replies: 7
Views: 765

Re: RMDs as "Transfer In Kind"

Thanks RM. That answers my questions and the answers meet the sanity test! Now lets see if someone jumps in with a "Yeah but..." Groucho: We got a contract... Chico: Hey, wait, wait. What does this say here? This thing here. Groucho: It's all right, that's, that's in every contract. That's...
by bertilak
Sat Jun 27, 2015 5:52 pm
Forum: Investing - Theory, News & General
Topic: RMDs as "Transfer In Kind"
Replies: 7
Views: 765

RMDs as "Transfer In Kind"

Another thread is mulling over the idea of using Transfer In Kind to satisfy RMDs. I have two technical questions that I don't want to clutter up that thread with: ⋅ If I read one post properly it implied that you can't do TIC of a fund to another account unless you already have that fund ...
by bertilak
Fri Jun 26, 2015 11:20 am
Forum: Investing - Theory, News & General
Topic: Decumulation Phase and BH principles
Replies: 49
Views: 5740

Re: Decumulation Phase and BH principles

Thanks all for your excellent replies. Considering all, I am left feeling relatively comfortable with mu current situation. I will be taking RMDs next year (2016) and need to consider how that should be taken into account. Basically I think it simply means, bite the bullet and pay the taxes and rein...
by bertilak
Wed Jun 24, 2015 7:23 pm
Forum: Investing - Theory, News & General
Topic: What ratio are you stocks/bonds and how old are you?
Replies: 235
Views: 14433

Re: What ratio are you stocks/bonds and how old are you?

Age 69. AA 50/50 Additional info: I have a great pension so between it and SS all my normal(*) living expenses are covered. This means I have lots of flexibility in my AA. I picked 50/50 because I could see no compelling reason to tilt either way. I think of it as two portfolios: 100% stocks and 100...
by bertilak
Wed Jun 24, 2015 11:46 am
Forum: Investing - Theory, News & General
Topic: Decumulation Phase and BH principles
Replies: 49
Views: 5740

Re: Decumulation Phase and BH principles

There is a greater need to focus on lower volatility when decumulating. When accumulating, given a certain target portfolio and assuming a certain annualized (geometric) return over a sequence, more volatility usually leads to greater returns.* The advantage of buying low outweighs the disadvantage...
by bertilak
Wed Jun 24, 2015 11:29 am
Forum: Investing - Theory, News & General
Topic: Decumulation Phase and BH principles
Replies: 49
Views: 5740

Re: Decumulation Phase and BH principles

@RM, I could have used different language. But my point is that one doesn't turn to decumulation on the day one retires. "Decumulation phase" is not the same thing as retirement phase. So much depends on what's happening with one's accumulation. We have moderated our allocation in the las...
by bertilak
Wed Jun 24, 2015 11:24 am
Forum: Investing - Theory, News & General
Topic: Decumulation Phase and BH principles
Replies: 49
Views: 5740

Re: Decumulation Phase and BH principles

... will be drawing money out through "required minimum distribution" processes for the first couple of years. I look at RMDs as a transfer of money from tax-advantaged to taxable account, not as coming out of my nest egg. Except for taxes which are an actual draw-down from my nest egg. J...
by bertilak
Wed Jun 24, 2015 9:41 am
Forum: Investing - Theory, News & General
Topic: Decumulation Phase and BH principles
Replies: 49
Views: 5740

Decumulation Phase and BH principles

Two core BH principles: ⋅ Diversification (using low-cost index funds) as opposed to stock-picking ⋅ Buy and hold as opposed to market-timing I think much of the justification for those principles rests on the assumption that the investor is still contributing to the nest egg and...
by bertilak
Tue Jun 23, 2015 6:57 pm
Forum: Investing - Help with Personal Investments
Topic: Managed portfolio to index funds
Replies: 8
Views: 664

Re: Managed portfolio to index funds

Does that sound reasonable? Yes. There is one concept that might help. It is called "Transfer In Kind." That means you don't sell (liquidate) assets but just transfer them directly to your new brokerage. IF the fees are charged by the broker and not by the funds themselves this might help...
by bertilak
Sun Jun 21, 2015 9:03 am
Forum: Investing - Theory, News & General
Topic: Momentum across time and asset classes
Replies: 40
Views: 5042

Re: Momentum across time and asset classes

I don't know what to make of the "one great shining moment" effect. Perhaps there are MANY asset classes and/or factors that each have potential for "one great shining moment." Looking at history we only see the ones that actually happened, but perhaps ALL are equally possible. ...
by bertilak
Sat Jun 20, 2015 10:41 am
Forum: Investing - Help with Personal Investments
Topic: Retirement.
Replies: 3
Views: 988

Re: Retirement.

I can also recommend another book as a place to start, Investing Made Simple: Index Fund Investing and ETF Investing Explained in 100 Pages or Less by Mike Piper, a participant on this website. There is a FREE Kindle version. It is great that you already make the distinction between letting your inv...
by bertilak
Wed Jun 17, 2015 5:51 pm
Forum: Investing - Theory, News & General
Topic: Fizzy swans: decompression sickness as an analogy for investing risk?
Replies: 15
Views: 1813

Re: Fizzy swans: decompression sickness as an analogy for investing risk?

The higher the risk, the less that is known about the statistical nature of the risk. Very good sentence IMO. Yes. Seems to be bordering on some sort of natural law. Perhaps it is already a known concept in the the science/study/math of statistics. Perhaps there is a more formal statement of this. ...
by bertilak
Tue Jun 16, 2015 1:01 pm
Forum: Personal Consumer Issues
Topic: LastPass.com Breach
Replies: 153
Views: 12466

Re: LastPass.com Breach

[I want to make the brute force on songs as difficult as the brute force on random text. Vicroria, I'm sorta with you on this, but I keep thinking ... You don't need to be a brute to use brute force. Machines can be pretty brutish. In other words don't think in terms of what is difficult for a huma...
by bertilak
Sun Jun 14, 2015 11:24 am
Forum: Investing - Help with Personal Investments
Topic: Having trouble re-balancing between
Replies: 9
Views: 797

Re: Having trouble re-balancing between

If you have 30 years to go before retirement that argues for a low percentage of bonds so there should not be "such a large portion" to convert. An "aggressive" allocation is justifiable. A common recommendation is that you should never have LESS than 10% to 25% (depending on who...
by bertilak
Sat Jun 13, 2015 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: Any opinions of the Vanguard Fixed Deferred Annuity?
Replies: 19
Views: 2169

Re: Any opinions of the Vanguard Fixed Deferred Annuity?

The reason that I like the SPIA product is that I don't believe that I can safely rollover my 401K into today's stock and bond markets! I understand the Boglehead strategy for performing the rollover, but I don't believe that it works with a stock market as volatile as today's is! I don't see the c...
by bertilak
Sat Jun 13, 2015 3:21 pm
Forum: Investing - Theory, News & General
Topic: Bonds go in taxable (whitecoatinvestor aka EmergDoc article)
Replies: 154
Views: 16844

Re: Bonds go in taxable (whitecoatinvestor aka EmergDoc article)

I am also mindful that someday whatever I have will be taken over by my children (quite possibly during my lifetime if I become incapacitated) and I want a simple and easy to implement template for them, so they can spend their energies thinking about more important things. One of my guiding invest...
by bertilak
Fri Jun 12, 2015 4:15 pm
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part VI
Replies: 812
Views: 135863

Re: What Book Are You Currently Reading? Part VI

The Friends Of Eddie Coyle by George Higgins .... a classic crime novel that for some reason I never read. I thought it was excellent. The mean streets of Boston. :thumbsup Great book. Told almost entirely in dialog. "Life is hard. It's even harder if you're stupid." P.S. there is a movie...
by bertilak
Fri Jun 12, 2015 6:01 am
Forum: Investing - Help with Personal Investments
Topic: ticker symbol for funds?
Replies: 5
Views: 606

Re: ticker symbol for funds?

They might be a Collective Investment Trusts . See the wiki . Excerpt: CITs are not regulated by the Investment Company Act of 1940 but are regulated by the Office of the Comptroller of the Currency (“OCC”) and subject to oversight by the Internal Revenue Service (“IRS”) and the Department of Labor ...
by bertilak
Fri Jun 12, 2015 5:30 am
Forum: Investing - Help with Personal Investments
Topic: Fund vs ETF
Replies: 16
Views: 1652

Re: Fund vs ETF

Isn't there something about ETFs not making capital gains distributions? So in a taxable account maybe ETFs are better. Grayfox, see the wiki . Here is an excerpt: Vanguard ETFs are structured as another share class of a mutual fund, like Admiral or Investor shares. This is a process unique to Vang...
by bertilak
Thu Jun 11, 2015 8:47 pm
Forum: Investing - Theory, News & General
Topic: Wellington & Wellesley
Replies: 60
Views: 8570

Re: Wellington & Wellesley

Taylor responded to another poster's question-- " So, why are Wellington and Wellesley funds different from all other Vanguard active funds?" -- with the following comment: " Bogleheads are not all immune to "past performance." As a longtime poster at Bogleheads and admirer...
by bertilak
Thu Jun 11, 2015 2:32 pm
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 931
Views: 146696

Re: What Movie Have You Recently Watched?

new2bogle wrote:I recently rewatched Interstellar. It solidified my belief that it's the 2nd best movie ever.

Yes! Princess Bride remains number One! :thumbsup
by bertilak
Thu Jun 11, 2015 2:29 pm
Forum: Investing - Theory, News & General
Topic: Wellington & Wellesley
Replies: 60
Views: 8570

Re: Wellington & Wellesley

Anyway, the only rigorous arguments I've ever seen for or against active management come down to the cost of expenses over time. Some other arguments (with "rigorous" in the eye of the beholder!): ⋅ Some active funds are designed to be popular; ride a trend. In other words they ...
by bertilak
Wed Jun 10, 2015 6:26 pm
Forum: Investing - Help with Personal Investments
Topic: How to transfer a Roth
Replies: 11
Views: 952

Re: How to transfer a Roth

It's been two weeks, and when I go to the Vanguard website and click "Track your transfer", it says they're still awaiting paperwork. Does this mean they haven't received it at all? It sounds like they are waiting for you! Did you send all the paperwork? Did you do it with confirmed deliv...
by bertilak
Tue Jun 09, 2015 4:42 pm
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 931
Views: 146696

Re: What Movie Have You Recently Watched?

Okay, so this isn't a movie, but a series on Netflix. "Grace and Frankie" - - well, episode 1 made me laugh out loud. Lily Tomlin stole my heart a long time ago, and where she goes...there'll be laughs to follow. i watched the first 2 episodes and had the exact opposite reaction; i didn't...
by bertilak
Tue Jun 09, 2015 4:27 pm
Forum: Investing - Help with Personal Investments
Topic: Question Concerning Risk Portfolio and Liability Matching Portfolio
Replies: 3
Views: 432

Re: Question Concerning Risk Portfolio and Liability Matching Portfolio

When you are constructing the Risk Portfolio do you only consider the money in the Risk Portfolio in setting AA? Here's how I see it ... Your AA only considers your risky portfolio. Your LMP determines how much income that RP needs to provide. Set its AA appropriately. (Also be sure to save enough ...
by bertilak
Tue Jun 09, 2015 12:07 pm
Forum: Investing - Help with Personal Investments
Topic: CFP recommendation - Vanguard or external?
Replies: 10
Views: 998

Re: CFP recommendation - Vanguard or external?

When I used a Vanguard CFP a year and a half ago I was disappointed that he would give me NO advice that involved assets not held by Vanguard. This included an inheritance I was about to receive. How to deal with that inheritance (investing it in a taxable account with Vanguard) was one of the main ...
by bertilak
Tue Jun 09, 2015 11:53 am
Forum: Investing - Help with Personal Investments
Topic: Why does Jack Bogle have no international funds
Replies: 69
Views: 6566

Re: Why does Jack Bogle have no international funds

I note that those "against" international investing aren't "against" it because they think it is a losing proposition. Mostly they feel it is more trouble than it is worth. It is simply NO BETTER to have an international chunk than not to have it, so why bother? At least that's w...
by bertilak
Tue Jun 09, 2015 9:23 am
Forum: Investing - Theory, News & General
Topic: Insightful paper on Risk- highly recommend for new investors
Replies: 21
Views: 2983

Re: Insightful paper on Risk- highly recommend for new investors

The source of risk in investing is uncertainty as to what the probability distribution actually is. A question has been forming in my mind over the past year or so: Does chasing after ever-finer improvements to expected returns with ever-thinner slicing, dicing, factoring, etc. get us ever-more pre...
by bertilak
Sun Jun 07, 2015 6:29 pm
Forum: Investing - Help with Personal Investments
Topic: Using real-time data from Morningstar in Google Spreadsheets
Replies: 3
Views: 558

Re: Using real-time data from Morningstar in Google Spreadsheets

EDIT: I didn't read the OP (or even the topic title) carefully enough! This is NOT for Google Spreadsheets, but for EXCEL. I just figured this out myself so jumped to the idea you were asking about EXCEL. I WILL LEAVE THIS HERE IN CASE SOMEONE CARES! Also, maybe Google spreadsheets have the equival...
by bertilak
Sat Jun 06, 2015 8:25 am
Forum: Investing - Theory, News & General
Topic: What is total return vs. dividend investing?
Replies: 59
Views: 3988

Re: What is total return vs. dividend investing?

The problem is that prospects of individual companies do change, you will want to prune from time to time so that everything you own has good prospects going forward. The clunkers would be replaced with something better. This will take a bit of work. My gosh, if I inherited a portfolio that gave me...
by bertilak
Fri Jun 05, 2015 10:20 pm
Forum: Personal Consumer Issues
Topic: Stanley Kubrick's 2001 a space odyssey
Replies: 75
Views: 9457

Re: Stanley Kubrick's 2001 a space odyssey

The most memorable scene in this movie for me was when the ape hurls the bone-weapon upward and it becomes a space ship in the next instant. This, to me, was absolutely electrifying. I saw the film on its initial release on a huge screen, the kind that don't exist anymore. Kubrick was a renowned pe...
by bertilak
Fri Jun 05, 2015 10:29 am
Forum: Investing - Theory, News & General
Topic: Year long hiatus from Bogleheads: How I found the 3-fund portfolio was right for me
Replies: 40
Views: 5007

Re: Year long hiatus from Bogleheads: How I found the 3-fund portfolio was right for me

bonaire27, I went through a similar process. Not the same funds or tilts, but a bunch of switching about based on hot topics here on BH. I actually settled on a TWO fund portfolio: TSM and TBM. I am very content with only one trifling little niggle: I am considering adding some international but am ...
by bertilak
Fri Jun 05, 2015 10:12 am
Forum: Investing - Theory, News & General
Topic: Vanguard: DCA'ing into Fixed Income Offers Little Benefit
Replies: 9
Views: 1588

Re: Vanguard: DCA'ing into Fixed Income Offers Little Benefit

Investing a large chunk all at once is inherently riskier than DCA; for example, if you invested your whole portfolio at the beginning of the 2008 bear market, you may have been better off investing methodically over the following year. If the date in question is at the bottom (Jan-Feb 2009?) then ...
by bertilak
Fri Jun 05, 2015 6:19 am
Forum: Investing - Help with Personal Investments
Topic: Socially Responsible Investing
Replies: 43
Views: 2862

Re: Socially Responsible Investing

Probably the most socially responsible thing one can do is to save and invest wisely so as not to become a burden on your family or on society in the future.
by bertilak
Thu Jun 04, 2015 6:22 pm
Forum: Personal Consumer Issues
Topic: Stanley Kubrick's 2001 a space odyssey
Replies: 75
Views: 9457

Re: Stanley Kubrick's 2001 a space odyssey

... the only thing I could think about was how unreal this would have been to see in a theater in the 60's. I saw it in a huge theater in wide-screen Cinerama. That is an experience, and not just the stuff at the end. I am not quite sure I could watch the whole thing again, but I also could see mys...
by bertilak
Thu Jun 04, 2015 3:10 pm
Forum: Personal Consumer Issues
Topic: Free Windows 10 Upgrade, Yes or No?
Replies: 104
Views: 9700

Re: Free Windows 10 Upgrade, Yes or No?

I contacted the manufacturers of ⋅ my laptop (Samsung). They said hold off until they (Samsung) announce support. ⋅ my main, indispensable, applications (Intuit). Intuit would not comment on unavailable products. I read that as essentially the same as Samsung's statement. I will ...
by bertilak
Thu Jun 04, 2015 2:57 pm
Forum: Investing - Theory, News & General
Topic: Its not data mining - not even close
Replies: 11
Views: 2639

Re: Its not data mining - not even close

[A]n issue I expect to address another day in a post tentatively titled (and unwritten as of now) “How Can a Strategy Everyone Knows About Still Work?” But that's the BH strategy -- participate in the overall growth of the market, which is the same thing as participating in the overall growth of th...
by bertilak
Tue Jun 02, 2015 6:40 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Prime Money Market
Replies: 12
Views: 1997

Re: Vanguard Prime Money Market

So I was curious, so I pulled up Excel to see what would happen if the interest rate doubled every year. I assumed you invested $1 in the first year. By year 10, you would have a paltry $1.22. But that's when the magic really starts to happen. By year 15 you have $42.49. By year 20 you have $696,99...
by bertilak
Tue Jun 02, 2015 4:38 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Prime Money Market
Replies: 12
Views: 1997

Re: Vanguard Prime Money Market

John151 wrote:The SEC yield on Vanguard's Prime Money Market Fund has risen from 0.01% to 0.02%. I'm trying to decide what to do with the extra income!

In a couple of million years you can get that yacht!

Perhaps they will double the return every year! You will have your yacht in no time.
by bertilak
Mon Jun 01, 2015 5:12 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Total Bond Fund
Replies: 7
Views: 1323

Re: Vanguard Total Bond Fund

I just want to be able to use the money in that particular fund in the event of another 08 - 09 over the next 10 - 20 years. The money won't be needed anytime soon - I'd just transfer it from bond fund to total market fund in the event of a crash/significant downturn in equities. Sounds to me like ...
by bertilak
Sun May 31, 2015 8:25 am
Forum: Investing - Theory, News & General
Topic: Stemikger "Volatility is far from synonymous with risk."
Replies: 152
Views: 10006

Re: Stemikger "Volatility is far from synonymous with risk."

Here's a thought, I'm not sure where I'm going with this, or if I can even make a cohesive or applicable statement about it, but something to consider that's spinning in my mind after reading some stuff about Islamic finance " riba " and " gharar ". Assuming a dictionary definit...
by bertilak
Sun May 31, 2015 6:21 am
Forum: Investing - Theory, News & General
Topic: Stemikger "Volatility is far from synonymous with risk."
Replies: 152
Views: 10006

Re: Stemikger "Volatility is far from synonymous with risk."

I think Kevin brought up an interesting divergence between volatility and risk. Risk in most folks mind is the risk of loss or not meeting a goal. With this definition, stocks can be volatile and less risky than bonds in the sense that there is a higher probability of meeting a minimum versus bonds...
by bertilak
Sat May 30, 2015 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: Intuit Quicken Question
Replies: 9
Views: 1135

Re: Intuit Quicken Question

No, I did not have any trouble. I did the automatic update from within Quicken. However, the version I got from Amazon was on an old fashioned physical CD, not an electronic download. Actually two CDs, one for Quicken Premier 2015, one for Turbotax Premier 2014. Ah, OK. The CDs don't know where the...
by bertilak
Sat May 30, 2015 6:27 pm
Forum: Investing - Theory, News & General
Topic: "Are You Devoting Too Much Time (and Money) to Niche Asset Classes?"
Replies: 61
Views: 5586

Re: "Are You Devoting Too Much Time (and Money) to Niche Asset Classes?"

[... a decision to overweight or underweight certain subsets of the market carries the risk that your portfolio will underperform the market. You have thereby added that risk to your portfolio. The message I got from the above Morningstar comparison between TSM and S&P500 was that a tilt toward...
by bertilak
Sat May 30, 2015 2:11 pm
Forum: Investing - Theory, News & General
Topic: "Are You Devoting Too Much Time (and Money) to Niche Asset Classes?"
Replies: 61
Views: 5586

Re: "Are You Devoting Too Much Time (and Money) to Niche Asset Classes?"

Tell me what's meant by diversification and tell me exactly what it's cracked up to be ... Here is what I had in mind: ⋅  What's meant by it : Wide (and let's assume cap-weighted) cross-section of whatever is under consideration. In this case I was thinking of stocks, not stocks+bonds. &s...
by bertilak
Sat May 30, 2015 1:56 pm
Forum: Investing - Help with Personal Investments
Topic: Home Equity as part of your Net Worth?
Replies: 25
Views: 2841

Re: Home Equity as part of your Net Worth?

Focus on costs, not on fixed assets. Consider someone who lives on $100,000 a year in income and has $3,000,000 in investable assets. If they're retired that's more than enough investable assets to provide their full retirement income for at least 30 years. Suppose they buy a $5,000,000 home withou...

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