Search found 1322 matches

by mpt follower
Mon Jun 29, 2015 11:57 pm
Forum: Investing - Theory, News & General
Topic: Are REITs necessary in a portfolio? Why?
Replies: 51
Views: 3158

Are REITs necessary in a portfolio? Why?

I do not own a REIT fund separately and I have never had. I once owned three funds, a US stock fund, a Developed Market ex US stock fund, and an Emerging Markets stock fund, but got tired to rebalancing, thus today my only exposure to stocks is through a Global Stock index fund, which holds a small ...
by mpt follower
Wed Jun 17, 2015 4:00 am
Forum: Investing - Theory, News & General
Topic: 30 year tips auction: 6/11; yield 1.125%?
Replies: 36
Views: 4780

Re: 30 year tips auction: 6/11; yield 1.125%?

#Crunsher:
You have looked at retirement funding for a long time, so I ask you: given the current yields, would you commit to a 25 year TIPS ladder beginning 2020? If not, what would you do?
I have waited over a year to do it, and in the meantime yields have only dropped!
by mpt follower
Sat Jun 13, 2015 1:39 am
Forum: Investing - Theory, News & General
Topic: Here we go again or is it different this time
Replies: 18
Views: 2809

Re: Here we go again or is it different this time

No doubt bonds are a sad story, but if you are concern about losing purchasing power with nominal bonds, buy a ladder of individual TIPS and protect your money against inflation. I am retired and would not do it because TIPS are too expensive, the 5 year is only yielding a bit over 0.1%. Wishful thi...
by mpt follower
Fri Jun 12, 2015 1:52 pm
Forum: Investing - Theory, News & General
Topic: Why not iShares Core Total USD Bond Market ETF (IUSB)?
Replies: 10
Views: 924

Re: Why not iShares Core Total USD Bond Market ETF (IUSB)?

Why not iShares Core Total USD Bond Market ETF (IUSB) instead of Vanguard Total Bond Market ETF (BND)? A bit riskier, no doubt, but it does what Bogle proposes, increases corporate bonds. Why not IUSB? Because if one wants to tilt BND more towards corporates it's cheaper to mix it with VCIT (ER = ....
by mpt follower
Fri Jun 12, 2015 11:58 am
Forum: Investing - Theory, News & General
Topic: Why not iShares Core Total USD Bond Market ETF (IUSB)?
Replies: 10
Views: 924

Re: Why not iShares Core Total USD Bond Market ETF (IUSB)?

Well, you are expressing Swedroe's concerns, not shared by Ferri. The M* report states that the fund holds 7% high yield. I assume that bothers you.
by mpt follower
Fri Jun 12, 2015 11:13 am
Forum: Investing - Theory, News & General
Topic: Why not iShares Core Total USD Bond Market ETF (IUSB)?
Replies: 10
Views: 924

Why not iShares Core Total USD Bond Market ETF (IUSB)?

Why not iShares Core Total USD Bond Market ETF (IUSB) instead of Vanguard Total Bond Market ETF (BND)? A bit riskier, no doubt, but it does what Bogle proposes, increases corporate bonds.
by mpt follower
Fri Jun 12, 2015 9:27 am
Forum: Investing - Theory, News & General
Topic: 30 year tips auction: 6/11; yield 1.125%?
Replies: 36
Views: 4780

Re: 30 year tips auction: 6/11; yield 1.125%?

I hope people understand that anyone that is buying 30 year TIPS yielding 1.125% and does not plan to hold until maturity has a very high likelihood to lose money, and big money. This yield to maturity is about the lowest in history.
by mpt follower
Thu Jun 11, 2015 12:56 pm
Forum: Investing - Theory, News & General
Topic: 30 year tips auction: 6/11; yield 1.125%?
Replies: 36
Views: 4780

Re: 30 year tips auction: 6/11; yield 1.125%?

I cannot get excited when I hear that a 30 year TIP is going for a bit over 1%. As a retiree my goal has always been to build a 25 year old ladder using TIPs and be done with retirement. Then I could invest whatever is left in the equity market. But with negative yields until 2020 I cannot see how i...
by mpt follower
Tue Jun 09, 2015 11:41 am
Forum: Investing - Theory, News & General
Topic: Currency hedging equities: Vanguard's Global Min Vol Fund
Replies: 19
Views: 1579

Re: Currency hedging equities: Vanguard's Global Min Vol Fund

WOW! You right, I did not notice the PE. Also the PB is very high. Dilemma, right?
by mpt follower
Tue Jun 09, 2015 11:06 am
Forum: Investing - Theory, News & General
Topic: Currency hedging equities: Vanguard's Global Min Vol Fund
Replies: 19
Views: 1579

Re: Currency hedging equities: Vanguard's Global Min Vol Fund

I own the iShares fund, ACWV; however, unlike the Vanguard fund, it is not USD hedged. What convinced me to go with low volatility instead of the regular, plain vanilla ACWI or VT is theoretical work as well as historical data showing that indeed there is a low volatility anomaly. I cannot find the ...
by mpt follower
Mon Jun 08, 2015 10:51 pm
Forum: Personal Consumer Issues
Topic: Medicare questions regarding to retiring to overseas
Replies: 5
Views: 660

Re: Medicare questions regarding to retiring to overseas

..... we decided to enroll in Medicare Part B and not C. ...... Not "C" ? You meant not "D ", didn't you? Part C is Medicare Advantage, plans based on provider networks that would only be available within the U.S. , not Israel. Part D is the Rx plan. I doubt any of the Part D in...
by mpt follower
Mon Jun 08, 2015 10:23 pm
Forum: Personal Consumer Issues
Topic: Medicare questions regarding to retiring to overseas
Replies: 5
Views: 660

Re: Medicare questions regarding to retiring to overseas

We are retired and live in Israel, which has a superb and ridiculously inexpensive HMO system. However, we decided to enroll in Medicare Part B. Our view is that for about $1,200 a year/person it is cheap insurance, just in case we are in need of a treatment that we may feel it is better conducted i...
by mpt follower
Mon Jun 08, 2015 7:23 am
Forum: Investing - Help with Personal Investments
Topic: Comments on my Retirement picture
Replies: 12
Views: 1713

Re: Comments on my Retirement picture

mtp, I'm 60, been retired for 2 years. I learned the same thing in 2008-2009. I'm about 35/65 and think that should keep up with inflation and maybe even a little growth. For now I'm more worried about poor sequence of return risk early in retirement. I may go 40/60 further down the road but maybe ...
by mpt follower
Mon Jun 08, 2015 7:18 am
Forum: Investing - Help with Personal Investments
Topic: Comments on my Retirement picture
Replies: 12
Views: 1713

Re: Comments on my Retirement picture

In response to Dandy, no doubt the Bernstein strategy of securing 20 to 25 years of retirement with secure instruments (with he est in stocks) is something that I have considered, and should TIPs yield a bit more than inflation, i.e., about 0.5% more, I would have done that gladly. But that is not t...
by mpt follower
Mon Jun 08, 2015 6:02 am
Forum: Investing - Help with Personal Investments
Topic: Comments on my Retirement picture
Replies: 12
Views: 1713

Re: Comments on my Retirement picture

Lev, Although I have been investing the Bogleheads way for the past 25 years, the distribution phase seems like a completely different ball game. You right that up to now things have worked out well even after the 2008 crisis, but my comfort level is now a bit shaky given the likelihood of low retur...
by mpt follower
Sun Jun 07, 2015 8:41 pm
Forum: Investing - Help with Personal Investments
Topic: Comments on my Retirement picture
Replies: 12
Views: 1713

Comments on my Retirement picture

I am 67, my wife 63 and I have been retired since 2004 (overseas, but US citizen) and living from SS/Pensions and withdrawals from my savings. I would like your input on my situation: 30% equity (*) (90% Global Equity Index fund, 10% Emerging Markets index fund) 70% bonds as follows: 5 year rolling ...
by mpt follower
Thu Jun 04, 2015 4:14 am
Forum: Investing - Theory, News & General
Topic: Global Market is the optimal portfolio. Do you follow that rule?
Replies: 43
Views: 3224

Re: Global Market is the optimal portfolio. Do you follow that rule?

Because what I'm really saying if weighting by revenues is "international companies have less market cap than they deserve". No thanks. I'll go by the market cap. Point taken. I doubt that investors will ever entirely discard "country of domicile" in their equity allocation cons...
by mpt follower
Wed Jun 03, 2015 4:01 pm
Forum: Investing - Theory, News & General
Topic: Global Market is the optimal portfolio. Do you follow that rule?
Replies: 43
Views: 3224

Re: Global Market is the optimal portfolio. Do you follow that rule?

Call_Me_Op wrote:
mpt follower wrote:If the Global Market is the optimal portfolio.....


Please define "optimal portfolio."


According to William Sharpe, it is max risk adjusted Return. Then, I suppose, you begin adding bonds until you meet your risk goal.
by mpt follower
Wed Jun 03, 2015 8:15 am
Forum: Personal Consumer Issues
Topic: Free Windows 10 Upgrade, Yes or No?
Replies: 104
Views: 9714

Re: Free Windows 10 Upgrade, Yes or No?

How do I know if all my programs will run in W10?
by mpt follower
Tue Jun 02, 2015 11:57 pm
Forum: Investing - Theory, News & General
Topic: Global Market is the optimal portfolio. Do you follow that rule?
Replies: 43
Views: 3224

Re: Global Market is the optimal portfolio. Do you follow that rule?

If the idea is to reduce risk following global market caps, the data doesn't seem to suggest that it works. The reason, I believe, is the effect that f/x risk has on a purely market cap weighted portfolio as compared to something that had less foreign exposure. To demonstrate this using historical ...
by mpt follower
Tue Jun 02, 2015 11:53 pm
Forum: Investing - Theory, News & General
Topic: Global Market is the optimal portfolio. Do you follow that rule?
Replies: 43
Views: 3224

Re: Global Market is the optimal portfolio. Do you follow that rule?

What is the "magic" behind market cap as the measure for a global portfolio's weighting? There are countless other measures that could be used. What makes one better or worse than another? I wonder if it has more to do with convenience and tradition than being demonstratively better. For ...
by mpt follower
Tue Jun 02, 2015 4:23 pm
Forum: Investing - Theory, News & General
Topic: Bill Sharpe: "Smart beta makes me sick"
Replies: 21
Views: 2449

Re: Bill Sharpe: "Smart beta makes me sick"

...So, in essence, you believe that the market is NOT sufficiently efficient? I would agree with you on the very bottom of the market in terms of capitalization, where the market is not liquid. But is the small cap market not efficient? Whether it's "efficient" or not, it's very difficult...
by mpt follower
Tue Jun 02, 2015 10:15 am
Forum: Investing - Theory, News & General
Topic: Bill Sharpe: "Smart beta makes me sick"
Replies: 21
Views: 2449

Re: Bill Sharpe: "Smart beta makes me sick"

I agree with Speer. OTOH: "If money managers continue to push value on everyone, then prices for value stocks will have to rise and will eventually eliminate the value premium." This seems to be the common misconception. People who buy Growth stocks are generally swinging for the fences, ...
by mpt follower
Tue Jun 02, 2015 9:41 am
Forum: Investing - Theory, News & General
Topic: Global Market is the optimal portfolio. Do you follow that rule?
Replies: 43
Views: 3224

Global Market is the optimal portfolio. Do you follow that rule?

If the Global Market is the optimal portfolio, then according to recent data, one's equity portfolio should look like the following: US 36.2% Other Developed Markets 39.2% Emerging Markets 24.6% http://news.morningstar.com/articlenet/SubmissionsArticle.aspx?submissionid=208357.xml&part=1 But I a...
by mpt follower
Tue Jun 02, 2015 8:35 am
Forum: Investing - Theory, News & General
Topic: Bill Sharpe: "Smart beta makes me sick"
Replies: 21
Views: 2449

Re: Bill Sharpe: "Smart beta makes me sick"

If someone is able to beat the total market by means of this or that investment strategy, then someone on the other side of that trade must be underperforming the market. It is a zero-sum game. Is there any reason to believe that any particular "smart beta" strategy will reliably be on th...
by mpt follower
Mon Jun 01, 2015 2:22 pm
Forum: Investing - Theory, News & General
Topic: Bill Sharpe: "Smart beta makes me sick"
Replies: 21
Views: 2449

Bill Sharpe: "Smart beta makes me sick"

Sorry if this has been discussed already since it is over a year old. I quote: "The question Sharpe posed for a smart beta portfolio is whether it can be good for everyone. If so, then that would imply that he and his friends are dumb, because they hold the market portfolio. Other investors who...
by mpt follower
Sun May 31, 2015 11:23 pm
Forum: Personal Finance (Not Investing)
Topic: Your opinion on realistic income to live in a $1 million home?
Replies: 144
Views: 11739

Re: Your opinion on realistic income to live in a $1 million home?

My fiance and I are both 24 years old. We are getting married in July. We are both financially independent. We are both young CPA's and have a combined yearly income of $116,000. Our total liquid cash (savings, bonds, stocks) is $130,000 and with an additional 20,000 in IRAs. We have zero debt. Lon...
by mpt follower
Sun May 31, 2015 9:52 am
Forum: Investing - Theory, News & General
Topic: International bonds - VTIBX - bubble, short, stay
Replies: 14
Views: 1391

Re: International bonds - VTIBX - bubble, short, stay

watchnerd wrote:
mpt follower wrote:
It is funny that someone would be concern about German government bonds and not US government bonds. For your information Germany's rating is higher than the US!


That's not really the point -- Gross isn't talking about default risk. He's talking about shorting the price.

Sorry!
by mpt follower
Sun May 31, 2015 9:42 am
Forum: Investing - Theory, News & General
Topic: International bonds - VTIBX - bubble, short, stay
Replies: 14
Views: 1391

Re: International bonds - VTIBX - bubble, short, stay

Have a little of the Vanguard International Bond index fund - VTIBX - https://personal.vanguard.com/us/funds/snapshot?FundId=1231&FundIntExt=INT and just saw this Bill Gross article about concern over Germany bunds... http://finance.yahoo.com/news/bill-gross-short-lifetime-144103525.html Do his...
by mpt follower
Sat May 30, 2015 8:29 am
Forum: Personal Finance (Not Investing)
Topic: Cost of a "free" PhD program is around half a million? How does anyone afford this?
Replies: 91
Views: 6688

Re: Cost of a "free" PhD program is around half a million? How does anyone afford this?

Many PhD programs can be free or at little cost (perhaps a thousand or two per year in fees, but free tuition) and with a stipend of around $20k to support yourself (though barely). Of course there are opportunity costs. For a person who already has a career the idea of grad school for a research j...
by mpt follower
Fri May 29, 2015 1:31 pm
Forum: Personal Consumer Issues
Topic: Selected photos of 3-week bicycle ride around the Italian Lakes
Replies: 35
Views: 2848

Re: Selected photos of 3-week bicycle ride around the Italian Lakes

As usual your photos are splendid. Look forward to reading the trip description. I was in northern Italy about 2 weeks prior to your trip and found it quite cool and overcast. How was the riding in Milan? I'm not sure that I would want to be sharing the road with Italian drivers. You will be surpri...
by mpt follower
Fri May 29, 2015 9:03 am
Forum: Investing - Theory, News & General
Topic: Bogleheads and international bonds
Replies: 13
Views: 1493

Re: Bogleheads and international bonds

BNDX SEC yield of 0.95. Does that make sense?
by mpt follower
Fri May 29, 2015 6:56 am
Forum: Personal Consumer Issues
Topic: Selected photos of 3-week bicycle ride around the Italian Lakes
Replies: 35
Views: 2848

Re: Selected photos of 3-week bicycle ride around the Italian Lakes

On June 18 and for 7 days, I plus 9 friends are biking from Bolzamo (Dolomites) to Venice, through lake Garda and Verona. Any comments you may have on our trip is appreciated. By the way, I have done this sort of bike trips in Europe annually for one week. Last year I biked Lake Constance (Konstanz)...
by mpt follower
Thu May 28, 2015 11:53 pm
Forum: Investing - Help with Personal Investments
Topic: The Power Of An Int'l Bond ETF Like ‘BNDX’
Replies: 12
Views: 1343

Re: The Power Of An Int'l Bond ETF Like ‘BNDX’

Thank you Cruncher!! Very helpful.
So what would you use for an index fund like BNDX to judge/estimate long term performance?
by mpt follower
Thu May 28, 2015 2:41 pm
Forum: Investing - Help with Personal Investments
Topic: Bond portfolio YTM> 3%
Replies: 24
Views: 1513

Re: Bond portfolio YTM> 3%

Allow me to just add that my thoughts were based on a recently published research by Morgan Stanley's Leibowitz which "has shown that so long as a fund (or even a "ladder" of individual bonds assembled to mature at equally spaced intervals of time) maintains a moderate, five-to-six-ye...
by mpt follower
Thu May 28, 2015 10:52 am
Forum: Investing - Help with Personal Investments
Topic: Bond portfolio YTM> 3%
Replies: 24
Views: 1513

Re: Bond portfolio YTM> 3%

I guess what occurs to me is that requiring a certain performance number out of an asset class is probably going to cause difficulty. What you've done is set yourself up for performance chasing because you've set some number for your bonds yield in your IPS. I'm retired too, and I like to get as mu...
by mpt follower
Thu May 28, 2015 10:33 am
Forum: Investing - Help with Personal Investments
Topic: Bond portfolio YTM> 3%
Replies: 24
Views: 1513

Re: Bonds are for safety

I am retired and my IPS requires that my bond portfolio YTM be > 3% (long term inflation +1). I have set up my portfolio so that I do not need to touch the bond portfolio in about 7 years (I have a 7 year source of spending cash - CDs, TIPs, etc). I have considered two approaches: A. Sell a portion...
by mpt follower
Thu May 28, 2015 10:29 am
Forum: Investing - Help with Personal Investments
Topic: Bond portfolio YTM> 3%
Replies: 24
Views: 1513

Re: Bond portfolio YTM> 3%

I guess what occurs to me is that requiring a certain performance number out of an asset class is probably going to cause difficulty. What you've done is set yourself up for performance chasing because you've set some number for your bonds yield in your IPS. I'm retired too, and I like to get as mu...
by mpt follower
Thu May 28, 2015 10:05 am
Forum: Investing - Help with Personal Investments
Topic: Bond portfolio YTM> 3%
Replies: 24
Views: 1513

Bond portfolio YTM> 3%

I am retired and my IPS requires that my bond portfolio YTM be > 3% (long term inflation +1). I have set up my portfolio so that I do not need to touch the bond portfolio in about 7 years (I have a 7 year source of spending cash - CDs, TIPs, etc). I have considered two approaches: A. Sell a portion ...
by mpt follower
Thu May 28, 2015 12:02 am
Forum: Investing - Help with Personal Investments
Topic: The Power Of An Int'l Bond ETF Like ‘BNDX’
Replies: 12
Views: 1343

Re: The Power Of An Int'l Bond ETF Like ‘BNDX’

#Crancher: From your text... "On this basis Vanguard's US bond fund, currently yielding 1.99% looks better than its international bond fund, which currently yields only 0.92%." Does that mean that the international bond fund would yield 0.92% if dividends reinvested and kept to its maturity?
by mpt follower
Wed May 27, 2015 1:41 am
Forum: Investing - Help with Personal Investments
Topic: The Power Of An Int'l Bond ETF Like ‘BNDX’
Replies: 12
Views: 1343

The Power Of An Int'l Bond ETF Like ‘BNDX’

In a recent article, the claim is being made that given the high likelihood of the Fed increasing rates shortly, that may be it would be wise to park the fixed income portion overseas in an ETF like BNDX. To read the article, see below: http://www.etf.com/sections/blog/power-intl-bond-etf-bndx?utm_s...
by mpt follower
Tue May 26, 2015 11:46 pm
Forum: Investing - Theory, News & General
Topic: Reducing the Black Swans
Replies: 69
Views: 7328

Re: Reducing the Black Swans

Browser, I think you are ignoring something very important: that the sequence of returns over time is tremendously important when we enter withdrawl phase. A few bad years during the start of drawdown phase can be a portfolio killer. The portfolio can't recover if money needs to be withdrawn at a m...
by mpt follower
Tue May 26, 2015 11:31 pm
Forum: Investing - Theory, News & General
Topic: Reducing the Black Swans
Replies: 69
Views: 7328

Re: Reducing the Black Swans

Larry will continue to believe -- but will you? You have to try to not kid yourself about this and, whichever, strategy you pick you must be committed to staying the course with that strategy. As for me, I figure I'm more able to tolerate the risk of somewhat larger drawdowns holding a traditional ...
by mpt follower
Tue May 26, 2015 2:52 pm
Forum: Investing - Theory, News & General
Topic: Reducing the Black Swans
Replies: 69
Views: 7328

Re: Reducing the Black Swans

Spidey The "Larry Portfolio" is uses the very same principles as Taleb, with most of the investments in basically riskless (or near riskless) investments, and the rest in the highest expected returning equity asset class--small value stocks. Larry How is this fundamentally different than,...
by mpt follower
Tue May 26, 2015 1:44 am
Forum: Investing - Theory, News & General
Topic: Reducing the Black Swans
Replies: 69
Views: 7328

Re: Reducing the Black Swans

Spidey The "Larry Portfolio" is uses the very same principles as Taleb, with most of the investments in basically riskless (or near riskless) investments, and the rest in the highest expected returning equity asset class--small value stocks. Larry How is this fundamentally different than,...
by mpt follower
Sat May 23, 2015 11:10 pm
Forum: Personal Consumer Issues
Topic: Viking river Cruise - Budapest to Nuremberg
Replies: 11
Views: 1653

Re: Viking river Cruise - Budapest to Nuremberg

A few years ago we did a 7 day Saint Petersburg/Moscow river cruise with the same company you mention. Nothing wrong with the boat or the company, but I would say it in one word: Boring! My opinion is that unless you are handicapped, and we are far from that, there are other much better ways to enjo...
by mpt follower
Fri May 22, 2015 11:05 am
Forum: Investing - Help with Personal Investments
Topic: Allocation with large holding in single stock
Replies: 34
Views: 2482

Re: Allocation with large holding in single stock

No doubt it is a highly risky situation. Obviously investing in bonds will dampen the volatility, but I think more important, short of selling some to most of the stock, is to protect their investment against a significant drop in its price. There are many ways, with the most common being to use a p...
by mpt follower
Thu May 21, 2015 11:31 am
Forum: Investing - Help with Personal Investments
Topic: iShares FactorSelect MSCI Small-Cap ETFs
Replies: 0
Views: 223

iShares FactorSelect MSCI Small-Cap ETFs

Has anyone reviewed the new series of iShares ETF focusing on Fama factors, specifically the US small cap multifactor ETF (SMLF) and International small cap multifactor ETF (ISCF)?
by mpt follower
Sun May 17, 2015 12:32 am
Forum: Investing - Help with Personal Investments
Topic: On a Scale of 1 - 10.. [Portfolio evaluation]
Replies: 34
Views: 2413

Re: On a Scale of 1 - 10.. [Portfolio evaluation]

I do not know what you are asking? For a serious discussion on a portfolio construction, you should explains something about your goals, risk tolerance, etc. Otherwise the 1 to 10 evaluation is absolutely meaningless. Start here: http://www.bogleheads.org/wiki/Asset_allocation and maybe here: http:/...
by mpt follower
Sat May 16, 2015 11:48 am
Forum: Investing - Theory, News & General
Topic: Best Asset Allocation if you've "won the game"
Replies: 86
Views: 8987

Re: Best Asset Allocation if you've "won the game"

What is true is that a 24 month put on the S&P 500 is more expensive than a one month put. How much more expensive in real (purchase power/inflation adjusted) terms? And does that account for 24 sets of trade costs to roll monthly compared to just a single trade? And if that were true then its ...

Go to advanced search