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Re: Asness - The Small-Firm Effect Is Real, and It’s Spectac

. Since the inception of the Bridgeway fund BRSIX 7/31/1997 - 12/31/2014 - annualized return 11.8% = CRSP10 (Benchmark for BRSIX) 11.5% = Brirdgeway Ultra-small Co. Mkt (BRSIX) 10.0% = DFA US Microcap (DFSCX) 8.6% = Vanguard Small Cap Index (NAESX) 6.4% = Vanguard 500 (VFINX) http://quotes.mornings...
by jdilla1107
Sat Jan 24, 2015 12:08 pm
 
Forum: Investing - Theory, News & General
Topic: Asness - The Small-Firm Effect Is Real, and It’s Spectacular
Replies: 62
Views: 6144

Re: Does strategy even matter?

You are right, it doesn't really matter all the much. However, the discussion serves an important purpose of truly understanding why you are doing something, so that when times get bad you stick to the plan. Defending and explaining your plan helps solidify it. Scrutiny is important for staying the ...
by jdilla1107
Sat Jan 17, 2015 5:33 pm
 
Forum: Investing - Theory, News & General
Topic: Does strategy even matter?
Replies: 12
Views: 1694

Re: Anti- Market Timers still seem to endorse market-timing?

What if it was 51% of the time heads and 49% of the time tails? The problem is that its very hard to measure "the coin's" probability. There is so much noise mixed in with the signal in the public markets, that it's almost impossible to measure. How many times would you have to flip a coi...
by jdilla1107
Sun Jan 11, 2015 5:53 pm
 
Forum: Investing - Theory, News & General
Topic: Anti- Market Timers still seem to endorse market-timing??
Replies: 22
Views: 2741

Re: Looking to protect my downside - considering I/EE bonds,

Also remember that EE bonds are tax deferred, which for some (like me) are as good as tax free. A 38% tax bracket means that the CD really yields 38% less than the stated yield. If you can redeem the EE bond in a low income future, you are even better off. Even if you can't retire having a "low...
by jdilla1107
Sat Jan 10, 2015 5:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Looking to protect my downside - considering I/EE bonds, CDs
Replies: 15
Views: 1797

Re: Vanguard introduces first muni bond index fund and ETF

Strangely, iShares reports MUB's SEC Yield as 1.61%, and a duration of 6.29 years. MUB has $4B in AUM. http://www.ishares.com/us/products/239766/ishares-national-amtfree-muni-bond-etf I have been confused by the MUB SEC yield for awhile. I have always stayed in Vanguard Long-Term Tax-Exempt Fund be...
by jdilla1107
Tue Jan 06, 2015 10:53 pm
 
Forum: Investing - Theory, News & General
Topic: New Vanguard AMT-free National Municipal Bond Fund
Replies: 58
Views: 5037

Re: Boglehead theory on p2p lending?

I don't understand what you mean be "it's accounted for". I take on more risk - I have a higher expected return. If that return is achieved, i'd be on the upper end of the return spectrum - above the median. So, I don't understand in what sense that's accounted for - given the logic I've ...
by jdilla1107
Sun Jan 04, 2015 2:00 pm
 
Forum: Investing - Theory, News & General
Topic: Boglehead theory on p2p lending?
Replies: 42
Views: 4357

Re: Boglehead theory on p2p lending?

My long term returns with LC (3 years now) are over 12%. Considering treasuries are paying 2% and my savings account is paying 2% and my expected return off my equities is 7-9%, I don't think 12% is too bad. Here is a graph from lending club about their returns: https://www.lendingclub.com/info/sta...
by jdilla1107
Sun Jan 04, 2015 9:25 am
 
Forum: Investing - Theory, News & General
Topic: Boglehead theory on p2p lending?
Replies: 42
Views: 4357

Re: Boglehead theory on p2p lending?

My long term returns with LC (3 years now) are over 12%. Considering treasuries are paying 2% and my savings account is paying 2% and my expected return off my equities is 7-9%, I don't think 12% is too bad. Here is a graph from lending club about their returns: https://www.lendingclub.com/info/sta...
by jdilla1107
Thu Jan 01, 2015 5:01 pm
 
Forum: Investing - Theory, News & General
Topic: Boglehead theory on p2p lending?
Replies: 42
Views: 4357

Re: Amazon tax refund bonus offer

HR Block is doing this at other retailers too and you can do up to $9,000. https://www.hrblock.com/lp/refund-bonus.html I bought HR Block Deluxe for $27 on Amazon last week after seeing I would be forced to buy TT premeir which is $89. People who buy TT this year w/o some sort of deal are showing ex...
by jdilla1107
Thu Jan 01, 2015 9:53 am
 
Forum: Personal Finance (Not Investing)
Topic: Amazon tax refund bonus offer
Replies: 6
Views: 1721

Re: What's Driving LT Treasuries This Year?

The German 10 yr currently yields 0.59%. Japan is 0.32%. Our 2.25% 10 year looks mighty high in comparison to Europe and Japan.
by jdilla1107
Mon Dec 29, 2014 9:15 am
 
Forum: Investing - Theory, News & General
Topic: What's Driving LT Treasuries This Year?
Replies: 17
Views: 1879

Re: Splitting SCHE / VWO into Components

I consider VWO and SCHE to not be substantially identical and I TLH between them. Take that for what it's worth. The fact that they are entirely different fund companies and different indexes says they are different enough to me. In my opinion, the wash sale rule is to 1) stop opposite derivative po...
by jdilla1107
Sat Dec 27, 2014 3:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Splitting SCHE / VWO into Components
Replies: 7
Views: 380

Re: How can Bond Funds perform better than yield

A few of the major ways to make more than the stated yield. 1) Buy a 5 year treasury at 1.76%. Hold it for 3 years. You know have a 2 year treasury yielding 1.76%, but 2 year treasuries only yield 0.73%, so you sell it to someone else, take a capital gain and buy another 1.76% 5 year treasury. Doing...
by jdilla1107
Wed Dec 24, 2014 12:12 pm
 
Forum: Investing - Theory, News & General
Topic: How can Bond Funds perform better than yield
Replies: 15
Views: 1555

Re: Active funds as hedge against EMH

I feel like this doesn't make sense as not everything can be hedged. Most active equity funds are essentially index funds with tilts to specific companies or some factor. Setting fees aside, I feel pretty confident that active funds are going to overperform or underperform a little bit over long ter...
by jdilla1107
Wed Dec 24, 2014 11:31 am
 
Forum: Investing - Theory, News & General
Topic: Active funds as hedge against EMH
Replies: 4
Views: 709

Re: Index vs Hedge: Mr Bogle Low fee but Highly Risky manage

Is this theoretical for you or actionable? Having a net worth of $5 million is probably the bare minimum needed to get in the door at a hedge fund. This is wrong in my experience. At one point, I looked at Paulson's fund and it was $250k buy in and you had to be an accredited investor. An accredite...
by jdilla1107
Mon Dec 22, 2014 9:51 pm
 
Forum: Investing - Theory, News & General
Topic: Index vs Hedge: Mr Bogle Low fee but Highly Risky manager ?
Replies: 19
Views: 1646

Re: Any book recs specifically for Tax Harvesting?

I don't think there is much else to say besides this:

http://www.bogleheads.org/wiki/Tax_loss_harvesting

Maybe if you write out your understanding in your own words and post here with any questions it would help?
by jdilla1107
Mon Dec 22, 2014 9:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Any book recs specifically for Tax Harvesting?
Replies: 5
Views: 830

Re: Tax loss harvesting in excess of $3000

Capital losses can not be used against dividends, only capital gains or 3k of income per year. The only reason to sell more than 3,000 of losses in a year is 1) so that you don't lose the opportunity to tax loss harvest and 2) so you can carry it forward to future years. I don't think there is a str...
by jdilla1107
Fri Dec 19, 2014 10:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting in excess of $3000
Replies: 16
Views: 1772

Re: Tax-inefficient total return investing ideas

The better thing to do here is convert traditional 401ks and iras to Roth ira. That should generate plenty of "income". I would do this up until the 25% tax bracket.
by jdilla1107
Thu Dec 18, 2014 6:07 pm
 
Forum: Investing - Theory, News & General
Topic: Tax-inefficient total return investing ideas
Replies: 5
Views: 478

Re: Bond Fund vs CDs - which to use?

Make sure you understand how bond funds can return much more than their stated SEC yield through riding the yield curve. CDs don't get this potential benefit. https://www.bogleheads.org/forum/viewtopic.php?t=132601&f=10 I use CDs with low break penalties when I need liquidity (eg: emergency fund...
by jdilla1107
Thu Dec 18, 2014 4:55 pm
 
Forum: Investing - Theory, News & General
Topic: Bond Fund vs CDs - which to use?
Replies: 59
Views: 5822

Re: Bond fund that pays no taxable interest?

Note that right now EE bonds are yielding more than a full percentage point over a 20 year treasury. (2.45% vs 3.53%)

Over 20 years on $100,000, this comes out to an extra $38,000 in interest. In addition, the interest is tax deferred, which for some people (me) is as good as tax free.
by jdilla1107
Sat Dec 13, 2014 7:40 pm
 
Forum: Investing - Theory, News & General
Topic: Bond fund that pays no taxable interest?
Replies: 12
Views: 1521

Re: Bid-Ask spread

>So I put a limit on the offer at $24.45. You didn't put a limit on the offer. You put a limit order between the bid and offer (24/25). The "last price" is the price of the last execution between a buyer and seller. It's a data point from the past. The Bid/ask are the current best order pr...
by jdilla1107
Sat Dec 13, 2014 7:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bid-Ask spread
Replies: 7
Views: 829

Re: Bond fund that pays no taxable interest?

A zero coupon bond does not defer taxes. You have to pay taxes every year on the imputed income:

http://www.sec.gov/answers/zero.htm

If you want to avoid taxes, your best choices are EE bonds, I bonds, and muni bonds.
by jdilla1107
Tue Dec 09, 2014 10:25 pm
 
Forum: Investing - Theory, News & General
Topic: Bond fund that pays no taxable interest?
Replies: 12
Views: 1521

Re: Is the Boglehead Consensus on Long Bonds still Negative?

Vanguard Total Bond Market Index Fund has about15% of its bonds in long term bonds. Consider that as a starting point.
by jdilla1107
Tue Dec 09, 2014 5:47 pm
 
Forum: Investing - Theory, News & General
Topic: Is the Boglehead Consensus on Long Bonds still Negative?
Replies: 29
Views: 3419

Re: Valuation of EE Savings Bonds

When looking at EE bonds, you have to separate the following things: (people on this forum constantly intertwine them which is unhelpful) 1) The risk of long term bonds in general 2) The benefits of EE bonds over a 20 year treasury bond Much of this thread is discussing #1 yet many people hold long ...
by jdilla1107
Thu Nov 27, 2014 12:41 pm
 
Forum: Investing - Theory, News & General
Topic: Valuation of EE Savings Bonds
Replies: 48
Views: 4060

Re: TurboTax '14 Deluxe (Desktop) Excludes Schedule D

HR Block Deluxe is only $45.

Edit: It's only $30 on amazon
by jdilla1107
Sat Nov 22, 2014 11:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: TurboTax '14 Deluxe (Desktop) Excludes Schedule D
Replies: 203
Views: 27938

Re: Making money/career in Trading

I've worked in the financial trading space trading space for 10+ years. Poker is similar because: - You have to keep your emotions in check and not let them get in the way of making good decisions. - You have to understand risk/reward well. - You often times have to make complex decisions quickly an...
by jdilla1107
Sat Nov 22, 2014 5:55 pm
 
Forum: Investing - Theory, News & General
Topic: Making money/career in Trading
Replies: 25
Views: 2660

Re: Advise Needed: Unique Situation At workplace

HR is not your friend. I agree 100%. HR is there to protect the company, and is not a friend of the employee. However, if you can't convince someone in HR that your boss is the problem, then maybe you have to be honest with yourself and consider that you are (part) of the problem. Or more likely, m...
by jdilla1107
Sun Nov 16, 2014 5:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: Advice Needed: Unique Situation At workplace
Replies: 28
Views: 3992

Re: Advise Needed: Unique Situation At workplace

The worst thing this person can do is let it fester and then have frustrations come out at bad times. This person should sit down with the boss one on one and share how they feel about these situations. If that conversation goes poorly, then ask someone from HR to sit in on the next conversation. Th...
by jdilla1107
Sun Nov 16, 2014 2:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Advice Needed: Unique Situation At workplace
Replies: 28
Views: 3992

After tax 401k rollover

Real situation, fake numbers for my understanding. Say that I have: Traditional IRA: $100k 401k balance of $80K pre-tax and $20k after tax (not roth, but after-tax) The 20k after tax has only $200 in earnings and I recently quit my job. If I rollover the 80K to the traditional IRA and the 20k to a R...
by jdilla1107
Thu Nov 13, 2014 8:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: After tax 401k rollover
Replies: 1
Views: 173

Re: iBonds at zero % fixed

I know the mechanics of ibonds. Fixed and variable interest rates. Returns as good as inflation. Tax free interest. The interest on I bonds is not tax free, its tax deferred. Tax deferred can be as good as tax free depending on your situation. Imagine someone is a high tax bracket now who takes ear...
by jdilla1107
Sat Nov 08, 2014 11:45 am
 
Forum: Investing - Theory, News & General
Topic: iBonds at zero % fixed
Replies: 84
Views: 9799

Re: How to describe HSA tax advantage return

Some muni bond funds will say "tax equivalent yield" to describe something like what you are describing. However, whether or not this is misleading depends on what you are going to do with the term. If you are trying to work it out in your own mind, you have the idea right. If you are goin...
by jdilla1107
Wed Nov 05, 2014 7:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to describe HSA tax advantage return
Replies: 2
Views: 450

Re: How do you automatically rebalance?

I use google spreadsheets, which is nice because you can put this in one cell:

=GoogleFinance("VFIJX")

your number of shares in another, and then multiply them to get your net dollar value. For things like 401k in a non-public fund, I just key in the dollar value every 3-6 months.
by jdilla1107
Wed Nov 05, 2014 7:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: How do you automatically rebalance?
Replies: 34
Views: 2478

Re: Intermediate Bond ETF's

MUB has 45% of it's maturities >= 15 years and 60% >= 10 years. That seems to make it longer than intermediate to me.
by jdilla1107
Wed Oct 29, 2014 7:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Intermediate Bond ETF's
Replies: 9
Views: 852

Re: Zero Sum Game or Not?

The swap market swallows the alpha that you refer to. Why would anyone sell this swap if doing so generated negative 1.5% alpha? This is just trading one risk for another and there is no alpha. If there was alpha that was so obvious, it would be arbitraged away immediately. Google "cost of carr...
by jdilla1107
Thu Oct 02, 2014 9:49 pm
 
Forum: Investing - Theory, News & General
Topic: Zero Sum Game or Not? [PIMCO IndexPLUS funds]
Replies: 8
Views: 1001

Re: Why do people buy annuities?

Hmm, remember if you have sold half your TIPS at 12.5 years, then you are then getting half the dividends.

Your math isn't right.
by jdilla1107
Fri Sep 26, 2014 12:20 pm
 
Forum: Investing - Theory, News & General
Topic: Why do people buy annuities?
Replies: 50
Views: 4984

Re: POLL: Would you rather work half as long or half as ofte

I would love 2, but I have to settle for 1. :happy

2 is very hard to find.
by jdilla1107
Thu Sep 25, 2014 11:27 am
 
Forum: Personal Consumer Issues
Topic: POLL: Would you rather work half as long or half as often?
Replies: 68
Views: 4645

Re: Should I get a HSA? (Health Savings Account)

An HSA is better than a traditional 401k/IRA. - HSA avoids FICA taxes, TIRA does not. (If you max social security, then that doesn't help, but you still save a bit on medicare tax) - HSA is tax deductible in and tax free out if used for qualified medical expenses. TIRA is taxed on withdrawl. - HSA b...
by jdilla1107
Thu Sep 25, 2014 9:42 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I get a HSA? (Health Savings Account)
Replies: 14
Views: 1180

Re: VNQI name anomaly on Google Finance

Google does not try at all with google finance. I know that they considered taking on yahoo finance and others several years ago and decided to not focus attention there. The thing is barely maintained and has been deemed good enough to get some traffic. It's pretty sub-par at this point as they hav...
by jdilla1107
Wed Sep 24, 2014 8:25 pm
 
Forum: Investing - Theory, News & General
Topic: VNQI name anomaly on Google Finance
Replies: 8
Views: 761

Re: My IPS and rebalancing

It sounds as though your contributions are significant compared to your portfolio size. That 5% rule is often assumed to apply to a larger portfolio where contributions are relatively insignificant. How about write it as, "I will rebalance when my AA is far off enough that X months of new contr...
by jdilla1107
Wed Sep 24, 2014 9:54 am
 
Forum: Investing - Help with Personal Investments
Topic: My IPS and rebalancing
Replies: 12
Views: 1162

Re: Vanguard Reaches $3 Trillion In Assets, matching Hedge F

At a .05% ER, that's 1.5 billion in fees a year.
by jdilla1107
Fri Sep 19, 2014 7:47 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard Reaches $3 Trillion In Assets, matching Hedge Funds
Replies: 12
Views: 1554

Re: Why Invest in Bonds in your early 30s?

The absolute amounts matter here. Let's say in your early 30s you have <=10% of what you will need to retire. Going 100% equities seems fine to me. At this low level, having bonds is pretty much just for discipline. If you lose 50% of your portfolio, you have only lost 5% of what you will need event...
by jdilla1107
Wed Sep 17, 2014 11:09 am
 
Forum: Investing - Help with Personal Investments
Topic: Why Invest in Bonds in your early 30s?
Replies: 43
Views: 3854

Re: IEX and Flash Boys

Most firms like Vanguard do not connect directly to exchanges. They use some sort of aggregation service and algorithmic routing to perform trades. There are like 40+ dark pools plus 12 stock exchanges so it can be really expensive to manage all of this themselves. So, these firms use some sort of t...
by jdilla1107
Sat Sep 06, 2014 12:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: IEX and Flash Boys
Replies: 1
Views: 215

Re: So, when does a market timer get back in?

Market timers don't track this and don't expect others to. Market timers usually lie to themselves through bad accounting. It's like the people I know who always make money when they go to Vegas. It's bad accounting and self-delusion. You remember the winners more than the losers and one big win can...
by jdilla1107
Fri Sep 05, 2014 3:28 pm
 
Forum: Investing - Theory, News & General
Topic: So, when does a market timer get back in?
Replies: 54
Views: 5742

Re: struggling to understand "bond crash"

I continue to read about an impending "bond crash" . The articles are never ending. This is your problem. Stop reading the financial press and read something that is not trash. When you see at the grocery store that lizard people are taking over the US government, do you "struggle to...
by jdilla1107
Mon Sep 01, 2014 12:58 pm
 
Forum: Investing - Theory, News & General
Topic: struggling to understand "bond crash"
Replies: 13
Views: 2170

Re: Financial Advisor Compensation

I will give you an example of what I feel is poor execution. I was selling 9 shares of VCSH in my HSA/TDAmeritrade this past week. I submitted a limit order and saw shares trade afterwards at that limit price, but my shares were not sold and my limit order expired unfilled. I submitted another limi...
by jdilla1107
Fri Aug 29, 2014 2:33 pm
 
Forum: Investing - Theory, News & General
Topic: Financial Advisor Compensation
Replies: 36
Views: 3276

Re: Financial Advisor Compensation

But they can sell their order flow, including yours, to market makers who profit from your poor execution. Basically all the brokers do this these days. I think this area is one in which the system works pretty well . NO ONE can execute an order that is not a the National Best Bid or Offer (NBBO). ...
by jdilla1107
Sat Aug 23, 2014 7:52 am
 
Forum: Investing - Theory, News & General
Topic: Financial Advisor Compensation
Replies: 36
Views: 3276

Changing user name

When I joined here, I picked a goofy username to post a single question. I got hooked and now I am staying. I wanted to change my forum name, but it doesn't appear to be an option. Is this possible?
by jdilla1107
Fri Aug 22, 2014 3:44 pm
 
Forum: Forum Issues and Administration
Topic: Changing user name
Replies: 2
Views: 969

Re: Financial Advisor Compensation

If you place trades through your broker, they may skim some of the bid/ask spread or give you a poor execution. This is not legal. Reg NMS states that an order must execute at the price of a displayed market. http://en.wikipedia.org/wiki/Regulation_NMS What this means is that a broker can internall...
by jdilla1107
Fri Aug 22, 2014 3:36 pm
 
Forum: Investing - Theory, News & General
Topic: Financial Advisor Compensation
Replies: 36
Views: 3276

Re: Has indexing gotten too big?

Capitalism saves us here because as soon as indexing becomes too big the likes of hedge funds, prop trading firms, Carl Icahn, and Warren Buffet will profit big time by making the needed corrections. However, it will never reach the point of being obvious because these groups make CONSTANT correctio...
by jdilla1107
Mon Aug 18, 2014 7:50 pm
 
Forum: Investing - Theory, News & General
Topic: Has indexing gotten too big?
Replies: 10
Views: 1965

Re: Advice to move from Wells Fargo advisor

For ETFs the TDA commission free list covers most of the popular ones: http://research.tdameritrade.com/grid/public/etfs/commissionfree/commissionfree.asp I consider that to be a list of ETFs than need more assets under management and probably have some marketing arrangement with TD. That is certai...
by jdilla1107
Sun Aug 17, 2014 12:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice to move from Wells Fargo advisor
Replies: 25
Views: 2353

Re: Advice to move from Wells Fargo advisor

That is great info. I haven't closed accounts before. Unbelievable that they even charge to leave them... I think that proves that I don't want the advisor anymore.. Is there someone that doesn't charge? And I wasn't thinking of leaving TD... I was going to switch to Vanguard products through TD? A...
by jdilla1107
Sun Aug 17, 2014 8:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Advice to move from Wells Fargo advisor
Replies: 25
Views: 2353
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