Search found 3875 matches

by nedsaid
Mon Aug 03, 2015 8:42 pm
Forum: Investing - Help with Personal Investments
Topic: Inheritance, EIC, and investing.
Replies: 8
Views: 528

Re: Inheritance, EIC, and investing.

I-Bonds at Treasury Direct is a possible answer. Tax deferred and she can buy $10,000 of these a year. They are illiquid for a year.
by nedsaid
Mon Aug 03, 2015 8:24 pm
Forum: Investing - Help with Personal Investments
Topic: Close to 93% of portfolio in individual stocks?
Replies: 23
Views: 1869

Re: Close to 93% of portfolio in individual stocks?

Elaborating on the above. Stocks have 2 risk components: market risk and security-specific risk. Market risk is risk that the stock loses value because the market as a whole went down. Perhaps the market will fall some when the Fed implements the first rate increase in many years. That's market ris...
by nedsaid
Sun Aug 02, 2015 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: Brand new to investing - Advice sought
Replies: 11
Views: 729

Re: Brand new to investing - Advice sought

SeeMoe: I am not against advisors. I have used financial planners and advisors in the past. I work with an independent broker with about 1/3 of my retirement and 2/3 of it is self-directed. I have also had different companies analyze my portfolio and offer comments. Oddly enough, my insurance compan...
by nedsaid
Sun Aug 02, 2015 8:37 pm
Forum: Investing - Help with Personal Investments
Topic: Need advice please.
Replies: 8
Views: 795

Re: Need advice please.

Rerod, I will just make a few comments here. First, the idea that your asset allocation depends on "market conditions" is naïve. All the research that is out there shows that market timing just does not work. Cheap markets can get cheaper and expensive markets can get more expensive. Stock...
by nedsaid
Sun Aug 02, 2015 11:04 am
Forum: Investing - Theory, News & General
Topic: Your opinion on the future of the financial services industry.
Replies: 10
Views: 745

Re: Your opinion on the future of the financial services industry.

Matt, I think a good analogy for the financial services industry are the travel agents. The internet has revolutionized a whole lot of things. It used to be that if I wanted to travel somewhere, I would call my travel agent and that person would make all the arrangements. Now I have access to almost...
by nedsaid
Sun Aug 02, 2015 10:46 am
Forum: Investing - Help with Personal Investments
Topic: Close to 93% of portfolio in individual stocks?
Replies: 23
Views: 1869

Re: Close to 93% of portfolio in individual stocks?

Taylor Larimore is the King of the Bogleheads and his advice is very sound. I want to make it clear that I don't advise that investors run their own portfolio of individual stocks. I also want to make it clear that my 15-16 individual stocks probably have not beaten the market. No matter how careful...
by nedsaid
Sun Aug 02, 2015 10:24 am
Forum: Investing - Help with Personal Investments
Topic: Could Use Some Investment Advice
Replies: 4
Views: 370

Re: Could Use Some Investment Advice

Hello all, I am relatively new to this board. I've been doing a great deal of reading on investing both on this board and through many of the books that are recommended here. While I have several ideas I sure would welcome some clarity on my next step. Thanks for taking the time to help. Nedsaid: W...
by nedsaid
Sun Aug 02, 2015 10:00 am
Forum: Investing - Help with Personal Investments
Topic: Close to 93% of portfolio in individual stocks?
Replies: 23
Views: 1869

Re: Close to 93% of portfolio in individual stocks?

I have a friend whose money is invested with Raymond James, 93% of which is invested in 15 or 16 stocks. I believe most of these stocks are dividend stocks such as Target, Microsoft, Apple, GE etc. What are the Bogleheads opinions on such a portfolio? I'm not going to bring this up to him, he is ve...
by nedsaid
Sun Aug 02, 2015 9:38 am
Forum: Investing - Help with Personal Investments
Topic: Brand new to investing - Advice sought
Replies: 11
Views: 729

Re: Brand new to investing - Advice sought

[Comments removed by admin LadyGeek] There are good financial planners out there but most of them are really salespersons. Too many of them will put you in funds where you pay an upfront commission of 5.75% for stock funds, 4.25% for stock and bond funds, and 3.75% for bond funds. Not only that, bu...
by nedsaid
Sun Aug 02, 2015 9:29 am
Forum: Investing - Help with Personal Investments
Topic: Brand new to investing - Advice sought
Replies: 11
Views: 729

Re: Brand new to investing - Advice sought

Thanks for the assistance! Emergency funds: Yes Debt: No current debt Tax Filing Status: Single Tax Rate: 25% Federal, 6.45% State State of Residence: NY Age: 33 Desired Asset allocation: unsure Desired International allocation: unsure Current retirement assets - None current. Looking to begin this...
by nedsaid
Sun Aug 02, 2015 9:03 am
Forum: Personal Finance (Not Investing)
Topic: Is Being a Private Banking Client Worth it?
Replies: 34
Views: 3869

Re: Is Being a Private Banking Client Worth it?

This is what Nisiprius calls stealing bait from the trap. Sooner or later you will get caught in the trap and the big lure is appealing to your ego. We all like the special attention but all of that for the purpose of getting you to buy expensive financial products. Bernie Madoff did this perfectly,...
by nedsaid
Sat Aug 01, 2015 9:46 pm
Forum: Investing - Theory, News & General
Topic: Another look at dividend paying stocks
Replies: 57
Views: 5334

Re: Another look at dividend paying stocks

nedsaid the strategies you are employing is virtually identical to what the research suggests is the "right" way---combining momentum with value as they are naturally negatively correlated. And it's what AQR value/mom/profitability funds do. In fact we are now using AQR large multi style ...
by nedsaid
Sat Aug 01, 2015 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: Majority of units in my condo assoc are owned by investors. Is this bad?
Replies: 21
Views: 2063

Re: Majority of units in my condo assoc are owned by investors. Is this bad?

I own a unit in a condo association that I rent out. At the last owners meeting, we were told by the board that 60% of the units are owned by investors who rent them out. The board treated this like a bad thing and asked for suggestions about how to get this number down below 50%. No conclusion was...
by nedsaid
Sat Aug 01, 2015 3:56 pm
Forum: Investing - Theory, News & General
Topic: "99% of Trading is Pointless"
Replies: 2
Views: 581

Re: "99% of Trading is Pointless"

I would say that most trading is pointless but I don't know about 99%. The traders make the markets more efficient for the rest of us. Bogle's basic point is a great one. There really is very little benefit to an individual investor in turning over their portfolios. I have found that patience is a v...
by nedsaid
Sat Aug 01, 2015 3:37 pm
Forum: Investing - Theory, News & General
Topic: Another look at dividend paying stocks
Replies: 57
Views: 5334

Re: Another look at dividend paying stocks

Thanks, Larry for your time. Again, I am not chasing dividends myself. Your posts on factor investing have got me thinking. It is hard to be absolutely 100% objective. MSCI has ETF's that do factor investing. I am sure that clients have asked for dividend ETFs and MSCI provided. Of course Vanguard h...
by nedsaid
Sat Aug 01, 2015 10:56 am
Forum: Investing - Theory, News & General
Topic: Ready to Give Up on Emerging Market Stocks?
Replies: 47
Views: 4572

Re: Ready to Give Up on Emerging Market Stocks?

People should know going in that Emerging Markets are a volatile asset class and that these markets run hot and cold. Right now they are running cold but that isn't a reason to give up on them. As they say, every dog has its day. At some point, Emerging Markets will be hot again. It appears that the...
by nedsaid
Sat Aug 01, 2015 9:25 am
Forum: Investing - Theory, News & General
Topic: Financial Advisor v. Bogle Approach?
Replies: 33
Views: 2546

Re: Financial Advisor v. Bogle Approach?

This may sound personal, but it's really a general question. I know this is a silly question to post on this forum, but I need some reassurance or outside viewpoints. I've met with two financial advisors (The Mutual Fund Store and Diversify) in the past month, both of which want to invest my money ...
by nedsaid
Sat Aug 01, 2015 9:15 am
Forum: Investing - Theory, News & General
Topic: Another look at dividend paying stocks
Replies: 57
Views: 5334

Re: Another look at dividend paying stocks

It is good to have you back on the forum, Larry. Your comments are always very informative and have been influential in my thinking. There really isn't much disagreement here, just discussion over fine points. The reality is that I have not chased dividends, my new money for years has mostly been go...
by nedsaid
Sat Aug 01, 2015 8:46 am
Forum: Investing - Theory, News & General
Topic: Anyone hold Long Term Bonds?
Replies: 45
Views: 3002

Re: Anyone hold Long Term Bonds?

In most situations, Long Term Treasuries should be an excellent hedge to stocks. They tend to go up when stocks go down. How effective of a hedge Long Term Treasuries are to stocks depends on what causes a bear market. The higher interest rates and inflation of the 1970's were just a killer for long...
by nedsaid
Fri Jul 31, 2015 11:19 pm
Forum: Investing - Theory, News & General
Topic: Another look at dividend paying stocks
Replies: 57
Views: 5334

Re: Another look at dividend paying stocks

Nedsaid [url]I want to point out that Large Value has been doing terrible lately[/url] All I can say is you and I disagree on definition of exaggeration. I already gave answer on High dividend strategy, it has much larger exposure to the quality factor, which as I also explained has nothing to do w...
by nedsaid
Fri Jul 31, 2015 10:34 pm
Forum: Investing - Theory, News & General
Topic: How Do You Like My New 'Doo
Replies: 5
Views: 641

Re: How Do You Like My New 'Doo

Hi nedsaid, I always enjoy your posts and perspective. What 16 individual stocks do you own? You are staying the course with the TIPS fund at only 3%+ of the portfolio? Does that make any meaningful impact? How are the international bonds working for the portfolio? Hedged or Unhedged? Best. Of cour...
by nedsaid
Fri Jul 31, 2015 10:25 pm
Forum: Investing - Theory, News & General
Topic: How Do You Like My New 'Doo
Replies: 5
Views: 641

Re: How Do You Like My New 'Doo

No, I have kept my International Bonds. I have two such funds, one of which is doing terrible. I recently added a little bit to the fund that has been doing terrible. This shows what a strong dollar can do to an unhedged foreign bond fund. I wanted a hedge against the falling US Dollar. The trouble ...
by nedsaid
Fri Jul 31, 2015 10:03 pm
Forum: Investing - Theory, News & General
Topic: S & P 500 "fair value" as of 7-31-15
Replies: 7
Views: 1377

Re: S & P 500 "fair value" as of 7-31-15

Keep in mind that interest rates affect Price/Earnings ratios of the stock market. When interest rates are low, P/E's tend to be higher. When interest rates are high, P/E's tend to be lower. Of course, there are other factors that affect P/E ratios but interest rates are an important factor. The com...
by nedsaid
Fri Jul 31, 2015 9:51 pm
Forum: Investing - Theory, News & General
Topic: How Do You Like My New 'Doo
Replies: 5
Views: 641

How Do You Like My New 'Doo

My small/value tilted portfolio just lately became untilted. My Small-Value portion got to be 9% of my stocks, 3% of that was an individual stock. This stock is an Insurance Company headquartered in the metro area where I live. A Japanese firm announced the purchase of this company last Friday and t...
by nedsaid
Thu Jul 30, 2015 11:05 pm
Forum: Investing - Theory, News & General
Topic: Another look at dividend paying stocks
Replies: 57
Views: 5334

Re: Another look at dividend paying stocks

If dividends are irrelevant to investment performance and if high dividend is a poor value strategy, why did Vanguard High Dividend beat the Vanguard Value Index? I think I know the answer but I want to hear what Larry has to say about this. (I have given my answer away already).
by nedsaid
Thu Jul 30, 2015 10:58 pm
Forum: Investing - Theory, News & General
Topic: Another look at dividend paying stocks
Replies: 57
Views: 5334

Re: Another look at dividend paying stocks

Nedsaid Well me thinks you exaggerate a bit. 1/10-6/15 Russell 1000 value underperformed R1k by just 60bp, so terrible? As to dividend growth, it's a QUALITY/PROFITABILITY strategy, in indirect way. Just as dividend is indirect way to value, though even high div is the worst of the value factors in...
by nedsaid
Thu Jul 30, 2015 10:18 pm
Forum: Investing - Theory, News & General
Topic: "The Sad State of the Financial Web, in 10 Charts"
Replies: 13
Views: 2475

Re: "The Sad State of the Financial Web, in 10 Charts"

Taylor, that was a very good article. Thank you for pointing us to a very informative piece. Sadly, the web statistics show that most people are not Bogleheads.
by nedsaid
Wed Jul 29, 2015 9:02 pm
Forum: Investing - Help with Personal Investments
Topic: My Portfolio and My Investing Behavior
Replies: 15
Views: 1618

Re: My Portfolio and My Investing Behavior

Why aren't you maxing out the tax-deferred accounts to reduce tax liability? I would do that before contributing to Roths and taxable. You're giving away money to the government. So I would max out the wife's 401k, not reduce contributions to it. You need something to live on! I can imagine myself ...
by nedsaid
Wed Jul 29, 2015 8:39 pm
Forum: Investing - Theory, News & General
Topic: Another look at dividend paying stocks
Replies: 57
Views: 5334

Re: Another look at dividend paying stocks

Larry, I want to point out that Large Value has been doing terrible lately also. In fact Value has been trailing the S&P 500 since about 2010. Since many dividend stocks tend to have good value characteristics it seems to me that the Value factor has been dragging some of these down. We are in a...
by nedsaid
Sun Jul 26, 2015 4:56 pm
Forum: Investing - Help with Personal Investments
Topic: Blue chip or index Funds? Well, would ya Punk?
Replies: 20
Views: 2280

Re: Blue chip or index Funds? Well, would ya Punk?

My friend who got me started with individual stocks (he was a stock broker for a year and I took my bank CD IRA to him) has kept a 100% stock portfolio for his retirement account. He has been successful doing that and the income stream that it generates is enough for he and his wife to retire on. It...
by nedsaid
Sun Jul 26, 2015 4:24 pm
Forum: Personal Consumer Issues
Topic: Greatest money lesson movie
Replies: 63
Views: 5680

Re: Greatest money lesson movie

The Producers. This should be required viewing in every Business College Degree program.
by nedsaid
Sun Jul 26, 2015 4:13 pm
Forum: Investing - Theory, News & General
Topic: Cap weight maximum diversification?
Replies: 46
Views: 2374

Re: Cap weight maximum diversification?

On one hand by cap weighting you aren't "over-weighting" any stocks or asset classes. From this perspective it seems like you get maximum diversification. On the other hand you have a higher percentage of your money in large companies and in one country (US). If you were to weight in some...
by nedsaid
Sun Jul 26, 2015 4:04 pm
Forum: Personal Consumer Issues
Topic: Would you look down on a co-worker for driving a beater?
Replies: 187
Views: 12072

Re: Would you look down on a co-worker for driving a beater?

I drive a car that is 12 years old with 225K miles on it. It is starting to rust on the bottom and there is noticeable chipped paint in several locations. I drive lots of miles per year and thought I would drive this car into the ground since there is very little trade in or resale value. My co-wor...
by nedsaid
Sun Jul 26, 2015 3:59 pm
Forum: Investing - Theory, News & General
Topic: Paul Merriman Small Cap Value "Free Lunch"
Replies: 47
Views: 4054

Re: Paul Merriman Small Cap Value "Free Lunch"

nedsaid, the quote from Yogi Berra does sum up how I feel about SCV and other popular tilts right now quite nicely. Based on the additional comments from you and JoMoney I'd ask the following. If you're going to look at valuations to determine if/when to get in/out of a tilt, then is the tilt real?...
by nedsaid
Sun Jul 26, 2015 11:05 am
Forum: Investing - Help with Personal Investments
Topic: Blue chip or index Funds? Well, would ya Punk?
Replies: 20
Views: 2280

Re: Blue chip or index Funds? Well, would ya Punk?

Hi all, Started with clash of the cultures (light bulbs going off a go go), four pillars, Bogleheads Rev 2, a number of others and loved them all I have ordered Mr B's Intelligent asset allocator for part of my holiday reading material at the apartment as i have £81k+ in US & UK blue chips as b...
by nedsaid
Sun Jul 26, 2015 10:37 am
Forum: Investing - Theory, News & General
Topic: Paul Merriman Small Cap Value "Free Lunch"
Replies: 47
Views: 4054

Re: Paul Merriman Small Cap Value "Free Lunch"

Over the past 16.5 years (from 12/31/1998 to 6/30/2015 ), Vanguards Small-Cap fund went from a P/E of 23.1 to 29.8 Vanguards S&P500 fund went from a P/E of 32.9 to 20.1 If relative earnings growth between these funds remained constant, this change in the price multiple would account for an addi...
by nedsaid
Sun Jul 26, 2015 10:28 am
Forum: Investing - Theory, News & General
Topic: What 2008/09 has done to me
Replies: 158
Views: 18814

Re: What 2008/09 has done to me

... I find it interesting how so many people here have profited from these companies over the years by holding a cross-section of them in their portfolios, yet they bemoan how political, greedy, and unprincipled they are. Interesting paradox. The true paradox is that these political, greedy, and un...
by nedsaid
Sun Jul 26, 2015 10:12 am
Forum: Investing - Theory, News & General
Topic: Substitutes for WSJ Personal Finance and Investing Article
Replies: 13
Views: 1639

Re: WSJ Personal Finance and Investing Articles

It took me about 2 weeks to suspect the weekend edition of the WSJ had undergone another convulsion. Now, alas, you have confirmed my suspicions. Once they started the weekend edition, I thought it was the best edition of the WSJ- and when it was just $2 a copy, probably the best bargain going on c...
by nedsaid
Sun Jul 26, 2015 9:54 am
Forum: Investing - Theory, News & General
Topic: Edelman -- best days, worst days
Replies: 26
Views: 1985

Re: Edleman -- best days, worst days

Yes, this was an excellent article and this should be read by every Boglehead.
by nedsaid
Sun Jul 26, 2015 9:52 am
Forum: Investing - Theory, News & General
Topic: Is the commodity implosion foretelling a stock market crash?
Replies: 28
Views: 3062

Re: Is the commodity implosion foretelling a stock market crash?

The commodity implosion pretty strongly suggests that the world economy is not terribly strong. It was my thesis that the commodity boom was largely a China story. I also felt that 2008 and the Beijing Olympics were peak China. Since then, economic growth in China has slowed and commodity prices hav...
by nedsaid
Sat Jul 25, 2015 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: help with my investing direction.. errrr, I'm with Ram-it James
Replies: 21
Views: 1042

Re: help with my investing direction.. errrr, I'm with Ram-it James

The three big no-load mutual fund companies are Vanguard, Fidelity, and T. Rowe Price. They all offer index funds, no-load active funds, and have brokerage arms. I wouldn't hesitate to send people to any three of these firms. There are also excellent discount brokerage firms like Charles Schwab. Kee...
by nedsaid
Sat Jul 25, 2015 3:49 pm
Forum: Investing - Theory, News & General
Topic: Fear Not the Inevitable Stock Market Correction
Replies: 19
Views: 3554

Re: Fear Not the Inevitable Stock Market Correction

We have seen the Dow 30 Index drop a few hundred points. My 70% stocks 30% bonds portfolio has dropped less than 2% so far. We might be seeing the beginnings of a stock market correction. We have had a lot of bad news, particularly Greece. There has been a whole lot of noise but so far damage to div...
by nedsaid
Sat Jul 25, 2015 3:41 pm
Forum: Investing - Theory, News & General
Topic: Merton - DC Pension Plans Need to Simplify
Replies: 5
Views: 754

Re: Merton - DC Pension Plans Need to Simplify

Bob, the gist of this is that investors need to think about the income in retirement that their portfolio can provide. I am in agreement here. Too much focus have been on reaching a mythical number of how much you need in your retirement stash before it is safe to retire. I think that 401k plans sho...
by nedsaid
Sat Jul 25, 2015 10:55 am
Forum: Investing - Theory, News & General
Topic: "Total" Stock No More So than "Total" Bond
Replies: 52
Views: 3812

Re: "Total" Stock No More So than "Total" Bond

VG "Total Stock" holds over 99% of available market cap. Arguments over whether or not that is "total" are very academic. In contrast, "Total Bond" does exclude very significant parts of the bond market. But, if you want to get closer to holding the total US taxable ma...
by nedsaid
Sat Jul 25, 2015 10:40 am
Forum: Investing - Theory, News & General
Topic: My thoughts on the Greek crisis
Replies: 8
Views: 1580

Re: My thoughts on the Greek crisis

Stocks CAN go up on bad news. That is if the news is bad but not as bad as anticipated. Stocks CAN go down on good news. The news was good but not as good as anticipated. This is a big reason why market timing does not work.
by nedsaid
Sat Jul 25, 2015 10:33 am
Forum: Investing - Theory, News & General
Topic: Merton - DC Pension Plans Need to Simplify
Replies: 5
Views: 754

Re: Merton - DC Pension Plans Need to Simplify

I agree with this concept with a caution. The balances in your retirement accounts are still very important. The more $$ you have, the more income you can buy in retirement. The statement can state your balances in terms of income all you want but the market risk is still there. It would be helpful ...
by nedsaid
Sat Jul 25, 2015 10:27 am
Forum: Personal Finance (Not Investing)
Topic: Protection against stock correctiom
Replies: 25
Views: 2483

Re: Protection against stock correctiom

The best protection against stock corrections are patience and time. You just have to wait them out. Of course you want enough bonds in your portfolio to reduce volatility enough so that you can stay the course and not panic.
by nedsaid
Sat Jul 25, 2015 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Do I dump the Vanguard energy Fund in my 401k
Replies: 32
Views: 2884

Re: Do I dump the Vanguard energy Fund in my 401k

I would consider rebalancing the rest of your 401k to a 3 fund portfolio, and leaving the current energy fund but not adding to it. It just may pay off and go up big by the time you retire :) It will always be a reminder of your earlier investing. On the other hand, if you dislike that idea, sell a...
by nedsaid
Sat Jul 25, 2015 10:19 am
Forum: Investing - Help with Personal Investments
Topic: What to do with VGPMX (Vanguard Precious Metals and Mining)?
Replies: 47
Views: 5716

Re: What to do with VGPMX (Vanguard Precious Metals and Mini

Being value oriented and a bit contrarian in my thinking, I keep wondering whether or not I should buy a precious metals fund. It has got to be the most hated asset class out there. Something in me thinks this is worth checking out. This is a hated area of the market and prices are way down. Hmmm. ...

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