Search found 1602 matches

Return to advanced search

Re: Can my computer hear me?

A couple of days ago, I was reading a newspaper article on a new computer and also discussing how brains work and payday loans. The newspaper article had nothing to do with either topic. When I went to another newspaper article, my computer had ads on the right for brain games and also VA loans. I ...
by ogd
Wed Apr 23, 2014 5:02 pm
 
Forum: Personal Consumer Issues
Topic: Can my computer hear me?
Replies: 26
Views: 1671

Re: A Case for Individual Bonds?

You can still lock a high rate by purchasing a long term fund. If rates go back down, the fund's value will increase commensurate with the interest rate difference still to be paid. This is where my thinking might need some help. I realize that the value of the fund will go up if rates go down, but...
by ogd
Wed Apr 23, 2014 2:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: A Case for Individual Bonds?
Replies: 10
Views: 649

Re: Post on bonds and low volatility anomaly

Larry -- nice article! The notion that chasing yield is bad for you needs ongoing reinforcement these days. One comparison that is IMHO missing is intermediate vs long bonds in the context of a portfolio. That is, the logical conclusion of: The result is that the Sharpe ratio on five-year Treasurys ...
by ogd
Wed Apr 23, 2014 2:00 pm
 
Forum: Investing - Theory, News & General
Topic: Post on bonds and low volatility anomaly
Replies: 7
Views: 426

Re: Does Asset Allocation beat the S&P 500?

I have not been heavily invested at any point during a 50% drop. I would hope that if that happened I would invest more money to that market and not look to sell (as is often suggested), but having a theory and being in that position are two totally different situations and I am not sure I could be...
by ogd
Tue Apr 22, 2014 2:25 pm
 
Forum: Investing - Theory, News & General
Topic: Does Asset Allocation beat the S&P 500?
Replies: 73
Views: 3051

Re: Does Asset Allocation beat the S&P 500?

But if safety is your concern, why are you in the stock market in any form? I think this is getting a bit off topic, but I noticed a few people made such comments. Based on this comment alone, are you suggesting that federally secured bonds are the best way to invest money? Because you are okay wit...
by ogd
Tue Apr 22, 2014 1:58 pm
 
Forum: Investing - Theory, News & General
Topic: Does Asset Allocation beat the S&P 500?
Replies: 73
Views: 3051

Re: vtmfx-Vanguard Tax Managed Balanced Fund

I am interested in this fund for my retirement account. However since it is heavy in munis I was wondering if it is sutible for a tax deferred account. I also have a taxible acount where I invest my new money and distributions. Would appreciate advice as to which account this fund is most sutible f...
by ogd
Tue Apr 22, 2014 1:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: vtmfx-Vanguard Tax Managed Balanced Fund
Replies: 4
Views: 593

Re: Does Asset Allocation beat the S&P 500?

thethinker: the reason to use asset allocation rather than 100% stocks is that you want the risk reduction that comes with it. If you thought risk didn't matter, then it would make sense to go beyond 100% S&P, such as by using leverage to the degree that's safely possible or by choosing the most...
by ogd
Tue Apr 22, 2014 1:16 pm
 
Forum: Investing - Theory, News & General
Topic: Does Asset Allocation beat the S&P 500?
Replies: 73
Views: 3051

Re: A Case for Individual Bonds?

arguably bond funds will drop in value (especially long temr) when rates will go up eventually, others think it is already priced in (which I doubt) - does not effect you when you hold the actual bond until mature; which makes the whole thing a kind of a CD really. No. The drop in value is identica...
by ogd
Tue Apr 22, 2014 12:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: A Case for Individual Bonds?
Replies: 10
Views: 649

Re: A Case for Individual Bonds?

You can still lock a high rate by purchasing a long term fund. If rates go back down, the fund's value will increase commensurate with the interest rate difference still to be paid. The same would happen to the market value of a bond. In both cases, you should periodically re-evaluate whether to tak...
by ogd
Tue Apr 22, 2014 12:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: A Case for Individual Bonds?
Replies: 10
Views: 649

Re: Why is it better to put stock funds in taxable accounts?

Thanks all for helping me think through it. I guess my question more boils down to something like, "What is the difference between tax efficiency with roths vs pre-tax" It's not a huge difference and it boils down to the mechanics of withdrawal, i.e. that Roths don't have RMDs that could ...
by ogd
Tue Apr 22, 2014 11:51 am
 
Forum: Investing - Theory, News & General
Topic: Why is it better to put stock funds in taxable accounts?
Replies: 10
Views: 1212

Re: Warren Buffett

You are criticizing the greatest stock investor of our generation - maybe the greatest ever. Maybe it is jealousy, envy, spite ... who knows. But wow. We are not talking about basketball players here. People easily forget when it comes to investing how much less significance numbers have and how li...
by ogd
Tue Apr 22, 2014 11:46 am
 
Forum: Investing - Theory, News & General
Topic: Warren Buffett
Replies: 45
Views: 2278

Re: Warren Buffett

Andy: you are not Buffett either, much like I told you you weren't Yacktman in the other thread you started. First and most importantly perhaps, you don't get to tell the companies you buy what to do, or Congress and the Fed what you'd like to see done. Like Waba says, if you want to replicate Buffe...
by ogd
Tue Apr 22, 2014 11:31 am
 
Forum: Investing - Theory, News & General
Topic: Warren Buffett
Replies: 45
Views: 2278

Re: Total bond vs intermediate tax exempt

Beckmaster: historically, the yields on municipal bonds have been much smaller than on taxable bonds, even Treasuries. Historically, they've been very safe. However, the current elevated yields, relatively speaking, should tell you that the market views them as significantly more risky, relatively s...
by ogd
Mon Apr 21, 2014 10:42 pm
 
Forum: Investing - Theory, News & General
Topic: Total bond vs intermediate tax exempt
Replies: 12
Views: 1481

Re: Starting an RIA

There seems to be some misconception here that buying individual stocks is more risky than an index fund. There seems to be a misconception on your part about the nature of this site. For blowing hot air and easily debunked myths, you can go to seekingalpha.com. It carries less risk though if you b...
by ogd
Mon Apr 21, 2014 9:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Starting an RIA
Replies: 28
Views: 1712

Re: Trying to learn about Brokered CD's

Because you don't have the possibility of early withdrawal, these CDs are similar to a bond, same interest rate risk, whether or not you sell before maturity. That is, if rates move up steeply you will lose money (through opportunity cost) in a longer CD compared to having held a shorter CD or cash....
by ogd
Sun Apr 20, 2014 1:41 pm
 
Forum: Investing - Theory, News & General
Topic: Trying to learn about Brokered CD's
Replies: 22
Views: 1207

Re: Intro and Income Fund Question

Hi SandDollar -- welcome to the forum! I’ve never paid attention to these kinds of funds - how can the 30 day standard yield be ~3% but the distribution rate be >4%? There are several reasons for that, and it's probably a combination of all three. 1) Interest rates have gone down (despite the uptick...
by ogd
Sun Apr 20, 2014 1:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Intro and Income Fund Question
Replies: 3
Views: 327

Re: Bond mutual fund vs individual bonds

jbaron: the problem with using that definition of risk for interest rates is 1) the OP does not have a known horizon, few people do with certainty , cue in the discussion of rebalancing into an equity crash, and 2) I would call the prospect of underperforming cash under certain circumstances a risk,...
by ogd
Sun Apr 20, 2014 12:30 pm
 
Forum: Investing - Theory, News & General
Topic: Bond mutual fund vs individual bonds
Replies: 13
Views: 1227

Re: Bond mutual fund vs individual bonds

Why can I sell a fund anytime but need to wait for the remainder of the term to sell a bond? If this is your experience I suggest you find another broker. The discussion was about being forced to sell a bond at a loss / bad time. If you want to avoid the loss, you need to wait. Bond funds of longer...
by ogd
Fri Apr 18, 2014 7:54 pm
 
Forum: Investing - Theory, News & General
Topic: Bond mutual fund vs individual bonds
Replies: 13
Views: 1227

Re: Bond mutual fund vs individual bonds

As an investor with an ongoing bond allocation, you don't care about any specific point in time. A possible exception to worrying about a specific point in time would be if you needed to sell bonds unexpectedly to meet some emergency or to re-balance into equities during a stock market crash. But e...
by ogd
Fri Apr 18, 2014 7:06 pm
 
Forum: Investing - Theory, News & General
Topic: Bond mutual fund vs individual bonds
Replies: 13
Views: 1227

Re: Bond mutual fund vs individual bonds

To address a specific point: ... also "eliminates" interest rate risk because if you ALWAYS hold to maturity you do not worry about price fluctuations because your will redeem the bond at par + coupon, ... No, it doesn't eliminate interest rate risk. You know what does? Cash. Compare: 1) I...
by ogd
Fri Apr 18, 2014 5:09 pm
 
Forum: Investing - Theory, News & General
Topic: Bond mutual fund vs individual bonds
Replies: 13
Views: 1227

Re: Bond mutual fund vs individual bonds

Use funds, even for Treasuries. Thau's points have little or no applicability to a young investor with access to Vanguard funds. 1) All bonds are at the whims of the bond market. You can choose to ignore it and pretend you're fine with waiting 5 years making much less interest than everyone else, bu...
by ogd
Fri Apr 18, 2014 4:51 pm
 
Forum: Investing - Theory, News & General
Topic: Bond mutual fund vs individual bonds
Replies: 13
Views: 1227

Re: Fixed Income Categories

I consider CDs cash, although the more early withdrawal penalties grow (which seems to be a trend), the more they become more bond-like. No EWP's would mean they're lower-liquidity Treasuries in my book. I-bonds are short bonds in the first year, cash thereafter (the EWP is small enough to be ignore...
by ogd
Fri Apr 18, 2014 4:30 pm
 
Forum: Investing - Theory, News & General
Topic: Fixed Income Categories
Replies: 19
Views: 1167

Re: Which: Dividend Growth or High Yield Dividend?

Yes, I'm interested in yield, but yield is not the total equation. I'm asking if there are any considerations other than yield for me not to switch funds. Thank you for your observation, anyway. Taxes. Depending on your tax rate and whether you are getting more dividends that you need to spend (con...
by ogd
Fri Apr 18, 2014 4:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which: Dividend Growth or High Yield Dividend?
Replies: 13
Views: 1434

Re: I need a new coffee maker, any recommendations?

Some bad reviews on that product on William-Sonoma! http://www.williams-sonoma.com/products/breville-youbrew-coffee-maker-with-thermal-carafe/ Yes, indeed. Well, I'm very happy with mine and the Amazon reviews are much better. Maybe WS shoppers are less likely to leave good reviews. But point taken.
by ogd
Thu Apr 17, 2014 6:08 pm
 
Forum: Personal Consumer Issues
Topic: I need a new coffee maker, any recommendations?
Replies: 60
Views: 2253

Re: Draft email to investment advisor re outperforming Total

Susan: the other question is, what useful information would you get from his reply? All research shows that outperformance does not persist, and this includes managers with CNBC face time and yacht lengths that your guy can only dream of. So, suppose he came back with results that did beat the marke...
by ogd
Thu Apr 17, 2014 4:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Draft email to investment advisor re outperforming Total Mar
Replies: 24
Views: 2400

Re: I need a new coffee maker, any recommendations?

I'll toss another suggestion on the higher end of the spectrum, the Breville YouBrew. $250 (steep), but it's gorgeous and built like a tank. In terms of features, it lets the water sit with the coffee for a couple of minutes like the cone-wielding baristas (and PJW, I suppose); it can do one cup at ...
by ogd
Thu Apr 17, 2014 4:12 pm
 
Forum: Personal Consumer Issues
Topic: I need a new coffee maker, any recommendations?
Replies: 60
Views: 2253

Re: Another take on the "rebalancing bonus"

You're right, it is the reset problem I'm looking at. In the context of rebalancing, keeping a portfolio at a constant 50% rate of leverage could run into the same issue... and not rebalancing the leverage gets into timing problems, that is to say that one day you feel 50% leverage is a good positi...
by ogd
Thu Apr 17, 2014 4:04 pm
 
Forum: Investing - Theory, News & General
Topic: Another take on the "rebalancing bonus"
Replies: 63
Views: 3559

Re: Another take on the "rebalancing bonus"

Browser: I get what you're saying about perfect timing, but in a sense my point is independent of it. The fact is, an unsupervised "asset allocation" did oscillate between those two extremes just within the last 5 years, and who in their right mind is okay with both 50/50 and 70/30, at wha...
by ogd
Thu Apr 17, 2014 1:51 pm
 
Forum: Investing - Theory, News & General
Topic: Another take on the "rebalancing bonus"
Replies: 63
Views: 3559

Re: Another take on the "rebalancing bonus"

The question remains for me: what do you do when your AA of 50/50 drifts to 70/30? What is different between the Browser that pegged his risk tolerance at 50/50 and the Browser that keeps going with 70/30? A bull market? The confidence that both Browsers are smart enough to outmaneuver it? Despite ...
by ogd
Thu Apr 17, 2014 12:24 pm
 
Forum: Investing - Theory, News & General
Topic: Another take on the "rebalancing bonus"
Replies: 63
Views: 3559

Re: I don't understand whether there are costs to rebalancin

Thanks very much for all the help everyone! Few more questions: 1) Target retirement funds auto-rebalance. I'm assuming there's no free lunch there, so the rebalancing must take place via exchange and thus there's cap gains? As I understand it, they do most of this through the flow of contributions...
by ogd
Thu Apr 17, 2014 11:56 am
 
Forum: Investing - Help with Personal Investments
Topic: I don't understand whether there are costs to rebalancing
Replies: 16
Views: 1153

Re: I don't understand whether there are costs to rebalancin

This is not in an IRA or 401k. This is in a straight up Vanguard investment account where I keep my :moneybag So it seems like my options are: 1) rebalance from within the portfolio and pay taxes 2) keep enough cash on hand to rebalance 3) don't rebalance What do people do in these situations? It s...
by ogd
Wed Apr 16, 2014 7:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: I don't understand whether there are costs to rebalancing
Replies: 16
Views: 1153

Re: Another take on the "rebalancing bonus"

Has anyone done a comparative study of the traditional rebalancing method (selling high/buying low for either bonds or stocks) versus rebalancing through new purchases as much as possible? I'm somewhat averse to selling stocks, but hold bonds to both limit risk and for the opportunity to buy stocks...
by ogd
Wed Apr 16, 2014 7:01 pm
 
Forum: Investing - Theory, News & General
Topic: Another take on the "rebalancing bonus"
Replies: 63
Views: 3559

Re: Another take on the "rebalancing bonus"

I did a simulation of rebalancing for the decade 2000-2009, and the bonus was quite noticeable: About 0.3% a year. I would guess there probably has been a rebalancing penalty over recent years since then. Sounds like we are in agreement, sometimes you get lucky and get a small bonus, sometimes you ...
by ogd
Wed Apr 16, 2014 6:39 pm
 
Forum: Investing - Theory, News & General
Topic: Another take on the "rebalancing bonus"
Replies: 63
Views: 3559

Re: Another take on the "rebalancing bonus"

Rebalancing between assets with different risk/return characteristics needs to be judged on a risk-adjusted basis. On an absolute return basis, buy and hold will perform better over the long term, but so will 100% or 150% of the high return asset, so that's not hard.... I just want to toss a wrench...
by ogd
Wed Apr 16, 2014 5:31 pm
 
Forum: Investing - Theory, News & General
Topic: Another take on the "rebalancing bonus"
Replies: 63
Views: 3559

Re: Another take on the "rebalancing bonus"

That Sharpe ratio is your "rebalancing bonus". In Bernstein's original analysis, the rebalancing bonus was defined as excess return, compared to the weighted average return, not risk-adjusted return. There's no bonus explanation here. Browser: let me just say that the full nuance of what ...
by ogd
Wed Apr 16, 2014 2:49 pm
 
Forum: Investing - Theory, News & General
Topic: Another take on the "rebalancing bonus"
Replies: 63
Views: 3559

Re: Japan Does not Show That Stocks are Dangerous

What it does mean is that the Japanese crash should not have come as a surprise to anyone. This is not a crash that came "like a thief in the night." You mean with hindsight. Unless you can show me pictures of your private island and your fleet of Bentleys, neither this crash, nor the doz...
by ogd
Wed Apr 16, 2014 12:36 pm
 
Forum: Investing - Theory, News & General
Topic: Japan Does not Show That Stocks are Dangerous
Replies: 79
Views: 4108

Re: Why are total bond market funds so often recommended?

TBM is a common recommendation, but what if you have a young investor with a high allocation to stocks? I have heard that a LT treasury fund may be a better choice. One of Larry's papers indeed makes this argument, that the LT treasuries produce the most efficient portfolios when combined with a hi...
by ogd
Wed Apr 16, 2014 12:25 pm
 
Forum: Investing - Theory, News & General
Topic: Why are total bond market funds so often recommended?
Replies: 52
Views: 4433

Re: Another take on the "rebalancing bonus"

Rebalancing between assets with different risk/return characteristics needs to be judged on a risk-adjusted basis. On an absolute return basis, buy and hold will perform better over the long term, but so will 100% or 150% of the high return asset, so that's not hard. The way the story goes, my risk ...
by ogd
Wed Apr 16, 2014 12:06 pm
 
Forum: Investing - Theory, News & General
Topic: Another take on the "rebalancing bonus"
Replies: 63
Views: 3559

Re: Why are total bond market funds so often recommended?

Steve: nice to see other lovers of Treasuries coming out of the woodwork, for a while it seemed like it was all about Investment Grade on this forum. It mostly boils down to whether you want corporates or not. As far as I'm concerned, TBM is safe enough already if you think about it, the amount of e...
by ogd
Tue Apr 15, 2014 11:14 pm
 
Forum: Investing - Theory, News & General
Topic: Why are total bond market funds so often recommended?
Replies: 52
Views: 4433

Re: Portfolio for Young Investors: High Bonds and Risky Equi

Packer: the 50% figure is "out of nowhere" or in Valuethinker's words "unqualified" when presented as a forward-looking possibility without a strong disclaimer about the extreme conditions (inflation, oil, labor market shifts) and the extreme long term in which it occured. The or...
by ogd
Mon Apr 14, 2014 1:51 pm
 
Forum: Investing - Theory, News & General
Topic: Portfolio for Young Investors: High Bonds and Risky Equities
Replies: 30
Views: 2018

Re: My Unexpected Findings on Backtesting Vanguard ETFs

Fundy: the lazy approach without rebalancing will become more risky over time as stocks grow. As such, it is generally higher returning. Because what you looked at is a turbulent period, this bonus was probably just enough to match the efficiency of the rebalanced portfolio; over time it will actual...
by ogd
Mon Apr 14, 2014 1:13 pm
 
Forum: Investing - Theory, News & General
Topic: My Unexpected Findings on Backtesting Vanguard ETFs
Replies: 8
Views: 1242

Re: The Case for Dividend Stocks in Retirement (article)

"The math is such that a person living from dividend stocks ends up in the same place as a person selling shares, provided that the total returns of the two portfolios are exactly the same." It would seem that given a sufficient time horizon one cow keeps giving milk while the other cow g...
by ogd
Mon Apr 14, 2014 12:47 pm
 
Forum: Investing - Theory, News & General
Topic: The Case for Dividend Stocks in Retirement (article)
Replies: 27
Views: 2250

Re: Vanguard VTI and VXUS: adding more small VSS and VB/VBR

Both VTI and VXUS are a little underweight in small cap. Nitpick: both funds hold the market weight, which is by definition neither underweight nor overweight. If you add more small stocks, you'd be overweighting (or "tilting"), rather than correcting an injustice in the composition of th...
by ogd
Mon Apr 14, 2014 12:51 am
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard VTI and VXUS: adding more small VSS and VB/VBR
Replies: 15
Views: 1026

Re: Taxable Account - Lazy Portfolio - Index vs ETF

Newbie B and HIinvestor, see the wiki article on this topic: http://www.bogleheads.org/wiki/ETFs_vs_mutual_funds . If at Vanguard, I recommend funds, they are simply easier to work with. Elsewhere, ETFs might indeed work best. Is this good? Or should I just go the route of the ETFs since the overall...
by ogd
Mon Apr 14, 2014 12:41 am
 
Forum: Investing - Help with Personal Investments
Topic: Taxable Account - Lazy Portfolio - Index vs ETF
Replies: 5
Views: 414

Re: Vanguard index fund vs. ETF?

some of those items did not apply to vanguard index funds . thank you for the link. they do sound very similar though, aren't they? Have you read the entire wiki? Was it unclear which items apply and which don't? I'm asking this as a contributor to that article. I was a bit confused as a Vanguard u...
by ogd
Mon Apr 14, 2014 12:34 am
 
Forum: Investing - Theory, News & General
Topic: Vanguard index fund vs. ETF?
Replies: 13
Views: 1172

Re: The Case for Dividend Stocks in Retirement (article)

He makes one common, but bad argument: Less risk. Instead of investing for dividends, investors have been encouraged in recent decades to create their own dividends by occasionally selling shares. But recall those two huge bear markets we've had over the past 14 years. If you needed to create your o...
by ogd
Mon Apr 14, 2014 12:19 am
 
Forum: Investing - Theory, News & General
Topic: The Case for Dividend Stocks in Retirement (article)
Replies: 27
Views: 2250

Re: Portfolio for Young Investors: High Bonds and Risky Equi

Packer: the discussion of interest rates is unimportant in the context of massive bond losses, since we've already established that it was the inflation that caused the losses as rates merely followed suit (and they would have been extremely good for fixed income had there not been inflation). Now, ...
by ogd
Mon Apr 14, 2014 12:08 am
 
Forum: Investing - Theory, News & General
Topic: Portfolio for Young Investors: High Bonds and Risky Equities
Replies: 30
Views: 2018

Re: gold , silver, copper and uranium only

They are literally like twin brothers. It's just pure luck that one or the other received a few more neutrons and was able to get a nice job for a few millenia as a result. Neutrons? I was under the impression that it was the Protons that make gold be gold. It's both, but apparently gathering enoug...
by ogd
Sun Apr 13, 2014 10:30 pm
 
Forum: Investing - Theory, News & General
Topic: gold , silver, copper and uranium only
Replies: 46
Views: 2243

Re: gold , silver, copper and uranium only

"gold , silver, copper and uranium..." That makes me want to sing "One of these things is not like the others, one of these things doesn't belong." Are these really considered to be some kind of coherent class, and, if so, what is it that uranium is supposed to have in common wi...
by ogd
Sun Apr 13, 2014 7:48 pm
 
Forum: Investing - Theory, News & General
Topic: gold , silver, copper and uranium only
Replies: 46
Views: 2243

Re: gold , silver, copper and uranium only

I and many others are not comfortable with the speculation aspect of commodities in general, and precious metals in particular where so much is already stored just waiting for a panic sell. These are assets that don't produce anything, nor are they money loaned to someone to produce something. So th...
by ogd
Sun Apr 13, 2014 6:18 pm
 
Forum: Investing - Theory, News & General
Topic: gold , silver, copper and uranium only
Replies: 46
Views: 2243
Next

Return to advanced search