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Re: VWAP execution - how does it work?

So you're saying that they actually sell in small bits throughout the day and then just tell you they sold at the average? How do they resolve the discrepancy if they happened to sell one lot during a tiny flash crash? Who eats the difference?
by boggler
Mon Jul 14, 2014 5:59 pm
 
Forum: Investing - Theory, News & General
Topic: VWAP execution - how does it work?
Replies: 3
Views: 557

VWAP execution - how does it work?

A new post on the Wealthfront blog explains that they are using VWAP execution to diversify concentrated single stock for clients. In other words, when they have a lot of stock to sell, they sell at the average price of the day rather than at a specific time. How is it possible to do such a thing? D...
by boggler
Mon Jul 14, 2014 4:34 pm
 
Forum: Investing - Theory, News & General
Topic: VWAP execution - how does it work?
Replies: 3
Views: 557

Re: Why is the market portfolio a tangency portfolio?

Why does MPT exist if the best portfolio to hold is simply the market portfolio? In other words, why would anyone break up the portfolio into various asset classes and use MPT to optimize the weighting, rather than just buying a total market fund?
by boggler
Thu Jul 03, 2014 5:55 pm
 
Forum: Investing - Theory, News & General
Topic: Why is the market portfolio a tangency portfolio?
Replies: 35
Views: 1098

Re: Total world investing - "owning the market"

Most in the US also overweight domestic assets because they suspect the market underestimates the risks of foreign investment. US investors may very well be wrong about this, but for foreign investment one has to worry not only about the market, but about the intermediary costs and risks, which are...
by boggler
Wed Jun 25, 2014 9:47 am
 
Forum: Investing - Theory, News & General
Topic: Total world investing - "owning the market"
Replies: 23
Views: 2759

Re: Vanguard website profile - real estate vs stocks

KyleAAA wrote:Perhaps he has really, really low basic expenses.


According to the article, he does. But this still seems near impossible. How does this sort of thing work, and how can it be so much better than a safe withdrawal rate?
by boggler
Thu Jun 19, 2014 9:33 am
 
Forum: Investing - Theory, News & General
Topic: Vanguard website profile - real estate vs stocks
Replies: 4
Views: 348

Vanguard website profile - real estate vs stocks

I am 34 now, and I am saving enough in those accounts to put me on track to have about a million in today's dollars in 33 years, assuming a 4% to 5% real return [the after-inflation return]. However, another part of my savings is going into real estate investments so I can create enough of a cash f...
by boggler
Thu Jun 19, 2014 8:47 am
 
Forum: Investing - Theory, News & General
Topic: Vanguard website profile - real estate vs stocks
Replies: 4
Views: 348

Personal Capital equal sector weighting

Saw this from Personal Capital: Two of our top experts showed how tactical weighting, compared with market cap weighting, has historically decreased volatility without sacrificing returns. Tactical weighting, or equal-sector weighting, is a hallmark of our investment philosophy at Personal Capital. ...
by boggler
Wed Jun 18, 2014 9:51 am
 
Forum: Investing - Theory, News & General
Topic: Personal Capital equal sector weighting
Replies: 3
Views: 243

Price-weighted index & Dow

I just discovered that the DJIA is a price-weighted index. To me, this makes no sense. What bearing does the cost of an individual share (or conversely, the number of shares the company decided to split itself up into) have on the weighting the company should have in an index. Isn't this totally arb...
by boggler
Sun Jun 08, 2014 6:11 pm
 
Forum: Investing - Theory, News & General
Topic: Price-weighted index & Dow
Replies: 2
Views: 193

Re: What fund mix replicates VTWSX?

Is there a good site that would let you check if, say, 45% SP500, 5% Small cap, 50% Total International behaved similarly to VTWSX?
by boggler
Sun Jun 08, 2014 9:43 am
 
Forum: Investing - Help with Personal Investments
Topic: What fund mix replicates VTWSX?
Replies: 6
Views: 685

Re: What fund mix replicates VTWSX?

I would use the first link to determine the US to foreign ratio of about 47% US and 53% US. Then I'd break the US portion into 72% large, 19% mid, and 9% small as per the second link. https://personal.vanguard.com/us/funds/snapshot?FundId=0628&FundIntExt=INT#tab=2 http://www.bogleheads.org/wiki...
by boggler
Thu Jun 05, 2014 12:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: What fund mix replicates VTWSX?
Replies: 6
Views: 685

What fund mix replicates VTWSX?

My 401k only offers limited fund selection, but includes Vanguard 500 index, Vanguard Mid cap index, Vanguard Small cap index, and Vanguard Total International. I want to replicate VTWSX, Vanguard Total World Stock index. How can I find the proper percentage mix of funds to do this? (There is some d...
by boggler
Thu Jun 05, 2014 11:51 am
 
Forum: Investing - Help with Personal Investments
Topic: What fund mix replicates VTWSX?
Replies: 6
Views: 685

Re: Purchasing rental property vs. REITs

What did you end up deciding? If you bought, how has it been working out for you? Pros/cons?
by boggler
Mon May 26, 2014 6:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Purchasing rental property vs. REITs
Replies: 25
Views: 2596

Re: Which compensation package to choose re. Social security

On average you will get more money investing it yourself. There will be some subset of cases where you do worse. How much you value the minimum versus the maximum is up to you. I was curious too. So I got all of my and employers contribution history from SS. Ran a portfolio model based on putting t...
by boggler
Sat May 03, 2014 9:07 am
 
Forum: Investing - Help with Personal Investments
Topic: Which compensation package to choose re. Social security?
Replies: 15
Views: 867

Re: Which compensation package to choose re. Social security

If we look at the extra FICA tax as money that could be used to purchase a COLA annuity, does that make the analysis easier? (Is Social security a "good deal" as an annuity?)
by boggler
Sat May 03, 2014 12:38 am
 
Forum: Investing - Help with Personal Investments
Topic: Which compensation package to choose re. Social security?
Replies: 15
Views: 867

Re: Deciding whether to annuitize

Thanks. How do you decide what level of income is required, though? Costs can go up substantially later in life if you live in a nursing home vs. at home, for example.
by boggler
Fri May 02, 2014 11:56 pm
 
Forum: Investing - Theory, News & General
Topic: Deciding whether to annuitize
Replies: 14
Views: 939

Re: Which compensation package to choose re. Social security

Dale_G wrote:There is no decision process. Salary and the bonus count the same as far as social security is concerned.

Dale


Assume the bonus is not subject to social security tax. This is true for some types of equity or bonus compensation.
by boggler
Fri May 02, 2014 11:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which compensation package to choose re. Social security?
Replies: 15
Views: 867

Re: Which compensation package to choose re. Social security

I'm confused as to how the bonus money would not be subject to paying FICA taxes. Now, if you could arrange to be paid by a hedge fund instead ... The thread OP pointed to is locked; it was no more actionable than this one. :sharebeer I can assure you this is quite actionable for me. I want to star...
by boggler
Fri May 02, 2014 11:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which compensation package to choose re. Social security?
Replies: 15
Views: 867

Deciding whether to annuitize

What are some good resources and criteria for deciding whether to annuitize or partially annuitize in retirement? Is it true that if you have enough money, meaning, say, 50x annual expenses, that you don't need to annuitize? Is it fair to say that annuitization is primarily useful for those who have...
by boggler
Fri May 02, 2014 10:51 pm
 
Forum: Investing - Theory, News & General
Topic: Deciding whether to annuitize
Replies: 14
Views: 939

Which compensation package to choose re. Social security?

If I'm choosing between, say, a salary package of 80k per year with a 25k annual guaranteed bonus, vs. a salary package of 100k with a 5k annual guaranteed bonus, which one should I pick from the perspective of social security? Would I be better with the additional social security earnings of the hi...
by boggler
Fri May 02, 2014 10:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which compensation package to choose re. Social security?
Replies: 15
Views: 867

Re: "Rollover IRA" vs "Traditional IRA"

Then why do firms like Vanguard bother distinguishing between the two?
by boggler
Thu Apr 24, 2014 11:51 am
 
Forum: Investing - Help with Personal Investments
Topic: "Rollover IRA" vs "Traditional IRA"
Replies: 12
Views: 1187

"Rollover IRA" vs "Traditional IRA"

What's the difference between a "Rollover IRA" and a "Traditional IRA"? You can roll assets from 401k's into either type of account, and you can make tax-deferred contributions to either type of account. Everything I've seen seems to indicate that they are treated the same way. I...
by boggler
Thu Apr 24, 2014 11:21 am
 
Forum: Investing - Help with Personal Investments
Topic: "Rollover IRA" vs "Traditional IRA"
Replies: 12
Views: 1187

Re: Is social security a good investment?

I predict a lock....in less than 3..2..1. It's unactionable - and not only that, but you are comparing apples to oranges. Social Security Old Age Disability Insurance - do you see the word "investment" in any part of the official title of the program? It's actionable to me because I'm try...
by boggler
Tue Apr 22, 2014 2:00 pm
 
Forum: Investing - Theory, News & General
Topic: Is social security a good investment?
Replies: 33
Views: 2225

Re: Is social security a good investment?

Oicuryy wrote:Social Security is not an investment. It is a welfare program funded by a payroll tax. Some people will get more in benefits than they pay in taxes. Others will get less.


Who? And at what rate of return?
by boggler
Tue Apr 22, 2014 1:57 pm
 
Forum: Investing - Theory, News & General
Topic: Is social security a good investment?
Replies: 33
Views: 2225

Re: Is social security a good investment?

I predict a lock....in less than 3..2..1. It's unactionable - and not only that, but you are comparing apples to oranges. Social Security Old Age Disability Insurance - do you see the word "investment" in any part of the official title of the program? It's actionable to me because I'm try...
by boggler
Tue Apr 22, 2014 1:26 pm
 
Forum: Investing - Theory, News & General
Topic: Is social security a good investment?
Replies: 33
Views: 2225

Re: Is social security a good investment?

Most people who ask this question don't know what Social Security includes. Are you asking about all of SS or just one part? P.S. If you are not careful, this thread will become political and either get locked or disappear. All the parts, I suppose. I'm interested from the perspective of analyzing ...
by boggler
Tue Apr 22, 2014 12:34 pm
 
Forum: Investing - Theory, News & General
Topic: Is social security a good investment?
Replies: 33
Views: 2225

Is social security a good investment?

How do bogleheads think about social security?
If, hypothetically, you had a choice over whether to pay into the system, how would you decide whether it's a good idea?
Would you be better off saving the contributions in a Vanguard account?
by boggler
Tue Apr 22, 2014 12:24 pm
 
Forum: Investing - Theory, News & General
Topic: Is social security a good investment?
Replies: 33
Views: 2225

Re: Recharacterized backdoor Roth contribution - how to repo

You are OK. The code N confirms that you recharacterized the conversion back to a TIRA account and you report the contribution as a TIRA contribution. Just hope your income allows you to deduct that contribution or you will be stuck with a non deductible TIRA contribution. Of course, if that happen...
by boggler
Fri Apr 11, 2014 1:23 am
 
Forum: Personal Finance (Not Investing)
Topic: Recharacterized backdoor Roth contribution - how to report?
Replies: 2
Views: 203

Recharacterized backdoor Roth contribution - how to report?

I contributed the max to a traditional IRA last year, then did a backdoor conversion to a Roth, and then decided I would prefer the deduction of the traditional IRA so I recharacterized it. I got a 1099R with code 02 showing the original conversion, and then a 1099R with code N showing the recharact...
by boggler
Thu Apr 10, 2014 12:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Recharacterized backdoor Roth contribution - how to report?
Replies: 2
Views: 203

Re: If trading is a losing game, how do you explain prop fir

EMH is folklore and true only in the limit of equilibrium (well, almost by definition true then). To you, who are slow and ungainly to see and act, the market appears in equilibrium all the time (except under extreme circumstances). To others who see and work with more detail, events happen constan...
by boggler
Tue Apr 08, 2014 4:30 pm
 
Forum: Investing - Theory, News & General
Topic: If trading is a losing game, how do you explain prop firms?
Replies: 38
Views: 3120

Re: Was frugality a mistake? The downsides of saving too mu

I have zero regrets about not spending more....I'm convinced that more new cars, more travel and a bigger house would not have made me even 1% more happy. Key statement. And it's important to point out that frugal people get as excited by saving as spenders get from buying a new pair of shoes. So, ...
by boggler
Sun Mar 16, 2014 11:13 am
 
Forum: Personal Consumer Issues
Topic: Was frugality a mistake? The downsides of saving too much.
Replies: 115
Views: 9731

Re: Was frugality a mistake? The downsides of saving too mu

I am 54. I've been a high earner for 30 years and always saved more than half my income. But lived well on the other (post tax) half. But not as well as I could have. I have zero regrets about not spending more....I'm convinced that more new cars, more travel and a bigger house would not have made ...
by boggler
Sat Mar 15, 2014 8:50 pm
 
Forum: Personal Consumer Issues
Topic: Was frugality a mistake? The downsides of saving too much.
Replies: 115
Views: 9731

Re: Vanguard Personal Advisor Services

So, has anyone tried this service?
by boggler
Wed Mar 12, 2014 12:16 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard Personal Advisor Services
Replies: 26
Views: 4568

Deducting margin interest from taxes

For example, you can deduct the interest on a margin loan you use to purchase stock. But if you use the margin loan to buy a car, you can't deduct the interest (even though such a loan might still make sense in the right circumstances, given the convenience, low rates and flexible repayment options...
by boggler
Wed Mar 12, 2014 12:40 am
 
Forum: Investing - Theory, News & General
Topic: Deducting margin interest from taxes
Replies: 1
Views: 220

Re: Buy vs rent no longer relevant?

What if you buy a house in cash? How do you do the comparison in this case? Buying a house outright in cash is an unlevered decision, so there is no need to factor in the tax deductions or the cost of the interest. The return from the house is the capital appreciation/depreciation added to the valu...
by boggler
Tue Mar 11, 2014 7:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: Buy vs rent no longer relevant?
Replies: 60
Views: 6002

Dividend yield investing

Came across this post online: I've been investing in dividend growth stocks since 12/31/86 and have achieved an average annual return of 15.244%. The companies I own, pipelines and utilities have just 60% of the volatility of the market or 40% less risk. My account, as of 12/31/2013 is up just a lit...
by boggler
Tue Mar 11, 2014 11:34 am
 
Forum: Investing - Theory, News & General
Topic: Dividend yield investing
Replies: 3
Views: 524

Re: Buy vs rent no longer relevant?

Caduceus wrote:The idea that "renting is throwing away money" is just misinformation. You can rent the place or you can rent the money (mortgage interest does not contribute to equity).


What if you buy a house in cash? How do you do the comparison in this case?
by boggler
Tue Mar 11, 2014 11:25 am
 
Forum: Personal Finance (Not Investing)
Topic: Buy vs rent no longer relevant?
Replies: 60
Views: 6002

Re: High expense ratios, risk, and market efficiency

Take real estate as another example. Many posts on this forum have discussed the fact that the majority of risk-adjusted investment return in real estate comes from the actual property management work, and that therefore it doesn't make sense to invest in real estate if you have to pay a lot for pr...
by boggler
Thu Mar 06, 2014 10:12 pm
 
Forum: Investing - Theory, News & General
Topic: High expense ratios, risk, and market efficiency
Replies: 5
Views: 334

Re: High Umbrella Limits - A waste

To Call_Me's point, I can still be sued for $50 million. From my research umbrella up to $5m is relatively easy to obtain and inexpensive. Beyond that gets much more difficult. We all draw the line somewhere. OK - glad you are admitting that your guideline is arbitrary. I tend to like 2X unprotecte...
by boggler
Thu Mar 06, 2014 6:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: High Umbrella Limits - A waste
Replies: 77
Views: 7714

Re: High Umbrella Limits - A waste

There have been many threads about umbrella insurance over the years and they've never ended in agreement about how much is enough. The internet also does not have a clear recommendation. The bottom line is we can each theoretically be sued for any amount of money, so no matter how much you buy you...
by boggler
Thu Mar 06, 2014 6:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: High Umbrella Limits - A waste
Replies: 77
Views: 7714

High expense ratios, risk, and market efficiency

The investment market functions in such a way that investors will only take additional risk if they "expect" to be compensated for it. For example, you invest in stocks vs. bonds because stocks have a higher expected return, but you also recognize that stocks are riskier. A common argument...
by boggler
Thu Mar 06, 2014 12:11 am
 
Forum: Investing - Theory, News & General
Topic: High expense ratios, risk, and market efficiency
Replies: 5
Views: 334

Do billionaires need umbrella insurance?

[See my post below. --admin LadyGeek] Do billionaires need umbrella insurance? On one hand, if you are the target of a liability claim, you presumably have more than enough assets to cover any reasonable claim. On the other hand, you have such a massive fortune at stake that someone might go after ...
by boggler
Tue Mar 04, 2014 7:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do billionaires need umbrella insurance?
Replies: 16
Views: 1890

Re: Personal experience of Wealthfront, Betterment....?

I have tried Betterment, Wealthfront, and WiseBanyan. I had to invite 10 people to get off of the WiseBanyan waitlist. It took a day to get my invite (and I had to tweet at them) but now I'm set up. Here are my thoughts on the three. The process was easy to fund all three - EFT transfer into your a...
by boggler
Tue Mar 04, 2014 3:39 pm
 
Forum: Investing - Theory, News & General
Topic: Personal experience of Wealthfront, Betterment....?
Replies: 22
Views: 3784

Re: Has anyone seen the Japanese Stock Market?

This is a great example of a negative rebalancing bonus, too. You would have been continuously throwing good money after bad.
by boggler
Fri Feb 28, 2014 2:37 pm
 
Forum: Investing - Theory, News & General
Topic: Has anyone seen the Japanese Stock Market?
Replies: 73
Views: 6657

Re: Public companies buying index funds

Let's try to avoid the sarcasm and provide the poster with an honest, well-reasoned response.
by boggler
Fri Feb 28, 2014 5:03 am
 
Forum: Investing - Theory, News & General
Topic: Public companies buying index funds
Replies: 14
Views: 1360

Re: Personal experience of Wealthfront, Betterment....?

Happy Wealthfront customer here. Low fees with a lot of added value: automatic rebalancing and TLH (over 100k), great low-cost funds, a Silicon Valley viewpoint on investing (and NOT a Wall Street one.) Are you worried that if Wealthfront gets sold or acquired, you'll be left holding the bag with a...
by boggler
Thu Feb 27, 2014 12:43 pm
 
Forum: Investing - Theory, News & General
Topic: Personal experience of Wealthfront, Betterment....?
Replies: 22
Views: 3784

Re: Has anyone seen the Japanese Stock Market?

Valuethinker, I have been investing for a long time. I am very aware of long bear markets as we had one in the US Stock Market from about 2000-2012. I am painfully aware that things can go wrong. I have actually posted about the secular bear market in the US several times. My belief is that the sec...
by boggler
Thu Feb 27, 2014 1:28 am
 
Forum: Investing - Theory, News & General
Topic: Has anyone seen the Japanese Stock Market?
Replies: 73
Views: 6657

Re: Has anyone seen the Japanese Stock Market?

Could all markets go down for extended periods of time? Absolutely. Now one has to ask how much cash and bonds would hold up if the entire world's capital markets hit a 20+ yr. funk. I, personally, doubt it. I have to say I agree with this. If I'm not planning to sell (even if a depressed market la...
by boggler
Tue Feb 25, 2014 8:30 pm
 
Forum: Investing - Theory, News & General
Topic: Has anyone seen the Japanese Stock Market?
Replies: 73
Views: 6657

Re: Betterment portfolio optimization

I also had to laugh at the chart in the section titled "The Results." It's a chart of expected returns. Not actual returns since Betterment started this portfolio optimization stuff. Not actual returns of the asset classes presently used going back x years. Expected returns. With no expla...
by boggler
Mon Feb 24, 2014 2:43 pm
 
Forum: Investing - Theory, News & General
Topic: Betterment portfolio optimization
Replies: 65
Views: 5049

Betterment portfolio optimization

Betterment just posted an argument on their site in favor of their portfolio optimization strategy. Does anyone here think it has any merit?

https://www.betterment.com/blog/2014/02 ... imization/
by boggler
Mon Feb 24, 2014 1:54 pm
 
Forum: Investing - Theory, News & General
Topic: Betterment portfolio optimization
Replies: 65
Views: 5049

A new argument on Roth vs. traditional?

Came across this online - curious to know what Bogleheads think of this argument:

https://blog.wealthfront.com/roth-401k- ... onal-401k/
by boggler
Mon Feb 24, 2014 5:33 am
 
Forum: Investing - Theory, News & General
Topic: A new argument on Roth vs. traditional?
Replies: 1
Views: 416
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