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Re: B-shares

Welcome,

Can you please provide the name(s) and tickers for one or two B class funds, and let us know how long you have held them.

Paul
by pkcrafter
Wed Apr 16, 2014 6:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: B-shares
Replies: 5
Views: 274

Re: Why does Vanguard use average return iso compound annual

Where are people looking? The SEC instructions for a Prospectus are the instructions for a Form N-1A http://www.sec.gov/about/forms/formn-1a.pdf For a Fund (other than a money Market Fund or a Fund described in General Instruction C.3.(d)(iii)), provide the information in the following table with t...
by pkcrafter
Wed Apr 16, 2014 3:52 pm
 
Forum: Investing - Theory, News & General
Topic: Why does Vanguard use average return iso compound annual?
Replies: 99
Views: 3989

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

Very difficult to provide suggestions without knowing more. For instance, no income? Are you retired and only income from investments?

Take a look at this suggested formatting:

http://www.bogleheads.org/forum/viewtopic.php?f=1&t=6212

Paul
by pkcrafter
Wed Apr 16, 2014 2:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: I don't understand whether there are costs to rebalancing
Replies: 13
Views: 708

Re: Japan Does not Show That Stocks are Dangerous

Today in the U.S. we see CAPE 10 at 25. By historical standards that is high, in fact, other than a very recent run to 25, the only other 2 times it was exceeded resulted in run-away rises in CAPE 10, 1929 and 1999. Judging by this, we should be seeing most investors backing off equity allocations, ...
by pkcrafter
Wed Apr 16, 2014 10:53 am
 
Forum: Investing - Theory, News & General
Topic: Japan Does not Show That Stocks are Dangerous
Replies: 57
Views: 2631

Re: Why does Vanguard use average return iso compound annual

You're right, Dave, that one word does make a difference. I actually thought Vanguard used "total" for their returns, but nope.

Paul
by pkcrafter
Tue Apr 15, 2014 11:56 pm
 
Forum: Investing - Theory, News & General
Topic: Why does Vanguard use average return iso compound annual?
Replies: 99
Views: 3989

Re: Japan Does not Show That Stocks are Dangerous

Japan Does not Show That Stocks are Dangerous Yes, it does. Japan shows that a market crash can last long enough to convert shallow risk into deep risk. For those looking at Japan and coming up with reasons after the fact is kind of like how black swans are always reasoned out--after the fact. Is a...
by pkcrafter
Tue Apr 15, 2014 11:24 pm
 
Forum: Investing - Theory, News & General
Topic: Japan Does not Show That Stocks are Dangerous
Replies: 57
Views: 2631

Re: Why does Vanguard use average return iso compound annual

KyleAAA wrote: But if you label it correctly, the laymen who intuitively assume average annual return = CAGR would be confused. Hmm, maybe. I think if you use anything but average annual return the "laymen" would be confused, call the SEC and ask why they are using some confusing term. Why...
by pkcrafter
Tue Apr 15, 2014 10:52 pm
 
Forum: Investing - Theory, News & General
Topic: Why does Vanguard use average return iso compound annual?
Replies: 99
Views: 3989

Re: Can this 4% CD be trusted?

Pinhead, I did a little research on Sun Cities and it was enough to say, be careful. Call them and see if they want you to come in with your checkbook. :happy

Paul
by pkcrafter
Tue Apr 15, 2014 10:12 pm
 
Forum: Investing - Theory, News & General
Topic: Can this 4% CD be trusted?
Replies: 21
Views: 2292

Re: Stocks: How Bad It Can Get

Thanks Taylor, your story still conveys the dramatic impact that accompanies a very sever market fall. I've copied it and it should be required reading for all new investors. And now is an excellent time to remind investors. And for those young eager investors who can't wait for an 80-90% drop so th...
by pkcrafter
Tue Apr 15, 2014 9:18 pm
 
Forum: Investing - Theory, News & General
Topic: Stocks: How Bad It Can Get
Replies: 72
Views: 5161

Re: Target Funds

I want to second John's suggestion for choosing TR funds based on desired asset allocation rather than date. The Vanguard fund you hold is 90% stocks and the TSP fund is 75% stocks. You haven't provided any information, so it's difficult to add any additional comments. If you feel like getting a rev...
by pkcrafter
Tue Apr 15, 2014 8:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Target Funds
Replies: 4
Views: 490

Re: Stocks: How Bad It Can Get

Note that the S&P500 was down about 43% in the dotcom crash, not <40% as the chart shows. The NASDAQ was down about 78%...and lots of investors performance chasers were heavily invested in the NASDAQ. Chart of S&P500 returns going back to 1928. http://pages.stern.nyu.edu/~adamodar/New_Home_P...
by pkcrafter
Tue Apr 15, 2014 2:17 pm
 
Forum: Investing - Theory, News & General
Topic: Stocks: How Bad It Can Get
Replies: 72
Views: 5161

Re: Mother Of Bog! I'm Uncertain/Frightened To Buy Fund

Wolf, you said you did not want to spend down the 21,500/year, but it would seem to be your best strategy. You are getting 1400/month and need another 1100, so take it from the 21,500. Doing that still leaves you with 8300/year you can add to your retirement account. Doing it this way allows your po...
by pkcrafter
Tue Apr 15, 2014 12:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: I Really Would Appreciate Your Advice!
Replies: 72
Views: 2628

Re: What does "invest in the market mean"

Paul yes the Altucher article was the one I was referring to Ok, here are two quotes: WHAT ABOUT MUTUAL FUNDS? No. Mutual funds, and the bank representatives that push them, consistently lie about the fees they are charging. I know this from experience. Altucher's knowledge is mostly accurate in hi...
by pkcrafter
Mon Apr 14, 2014 6:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: What does "invest in the market mean"
Replies: 11
Views: 864

Re: What does "invest in the market mean"

Welcome cetncetn,

I wonder if this is the article you are referring to?

http://www.businessinsider.com/money-cheat-sheet-2014-4''

Paul
by pkcrafter
Mon Apr 14, 2014 12:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: What does "invest in the market mean"
Replies: 11
Views: 864

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

Taking dividends is a withdrawal of total return, but it removes the option of the investor deciding on when to make the withdrawal. For instance, you will get a withdrawal during a bear market when you should not be withdrawing from equity. If you needed to create your own dividends, you could have...
by pkcrafter
Mon Apr 14, 2014 11:28 am
 
Forum: Investing - Theory, News & General
Topic: The Case for Dividend Stocks in Retirement (article)
Replies: 27
Views: 2201

Re: SCV premium is a history/math story, its not scientific

Rodc wrote:
So the "must" is much too strong.

Ah, yes, I "must" agree.

Paul
by pkcrafter
Mon Apr 14, 2014 11:04 am
 
Forum: Investing - Theory, News & General
Topic: SCV premium is a history/math story, its not scientific
Replies: 46
Views: 2201

Re: SCV premium is a history/math story, its not scientific

Rodc, are you saying this is not true?

stocks are more risky, they must pay out more than bonds to get people to take the risk of stocks.



Paul
by pkcrafter
Mon Apr 14, 2014 10:39 am
 
Forum: Investing - Theory, News & General
Topic: SCV premium is a history/math story, its not scientific
Replies: 46
Views: 2201

Re: What exactly is a risk premium?

Welcome, good first post. I think answers to your questions have been provided. I'd only add that risk/reward is always a trade-off and it isn't very prudent to take as much risk as possible in the hopes of getting higher returns. Balance is the key. Don't forget what risk means. The risk is you wil...
by pkcrafter
Mon Apr 14, 2014 10:20 am
 
Forum: Investing - Theory, News & General
Topic: What exactly is a risk premium?
Replies: 14
Views: 908

Re: What % of stock market "drive" is gambling?

Here's some definitions. The best way to "invest" and avoid gambling is to use index funds, hold long term, and take advantage of the power of compounding. Doing so ultimately reduces the "gamble" to faith in the capitalistic system. How many people do this? Probably less than 20...
by pkcrafter
Mon Apr 14, 2014 9:55 am
 
Forum: Investing - Theory, News & General
Topic: What % of stock market "drive" is gambling?
Replies: 27
Views: 2699

Bogle speaks out about Vanguard

This is from an article, June 2013. Apologies if it's been posted before. If you ask John Bogle a question, you're going to get an honest answer. Adding wattage to Bogle’s electrical storm was a very game Don Phillips, a Morningstar, Inc. managing director, who seemed to revel in asking Bogle the ha...
by pkcrafter
Mon Apr 14, 2014 9:22 am
 
Forum: Investing - Theory, News & General
Topic: Bogle speaks out about Vanguard
Replies: 2
Views: 1175

Re: Howard Marks latest memo

To obtain the market return you don't need to dare to be great but if you are an enterprising investor that is exactly what you need to do.

What % of average investors do you think will earn a better than average return by trying to be great?


Paul
by pkcrafter
Sun Apr 13, 2014 1:25 pm
 
Forum: Investing - Theory, News & General
Topic: Howard Marks latest memo
Replies: 12
Views: 1240

Re: what exactly is the "boring SWAN" portfolio?

cfs, I like the SWAN idea, and this too--
Bottom line, really boring and I sleep well at night--no big deal.

Hmm, a Really Boring Portfolio would be a RBP, not unlike Livesoft's RBD.

Paul
by pkcrafter
Sat Apr 12, 2014 11:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: what exactly is the "boring SWAN" portfolio?
Replies: 7
Views: 1162

Re: Why does Vanguard use average return iso compound annual

Jack wrote: There is no ambiguity. If there were no ambiguity, we wouldn't be having this long conversation. Why would anyone assume an arithmetic average that provides no useful information? Because that's the way it's labeled? Label it correctly and there would be no confusion--even the Vanguard e...
by pkcrafter
Sat Apr 12, 2014 6:37 pm
 
Forum: Investing - Theory, News & General
Topic: Why does Vanguard use average return iso compound annual?
Replies: 99
Views: 3989

Re: Why does Vanguard use average return iso compound annual

The SEC instructions are this: calculate the Fund's average annual total return by finding the average annual compounded rates of return This is mixing up two different definitions, so it's confusing. This is mixing up two different definitions, so it's confusing. They are not different definitions...
by pkcrafter
Sat Apr 12, 2014 4:29 pm
 
Forum: Investing - Theory, News & General
Topic: Why does Vanguard use average return iso compound annual?
Replies: 99
Views: 3989

Re: Why does Vanguard use average return iso compound annual

I tend to agree with Frans on this one, but it ultimately is not the Vanguard employees' fault or Vanguards. The fault lies with the SEC. The SEC instructions are this: calculate the Fund's average annual total return by finding the average annual compounded rates of return This is mixing up two dif...
by pkcrafter
Sat Apr 12, 2014 3:06 pm
 
Forum: Investing - Theory, News & General
Topic: Why does Vanguard use average return iso compound annual?
Replies: 99
Views: 3989

Re: Investing in REIT for a future house?

Johnny wrote: Overall, the question is, does investing in REITs for a home down payment make sense? In a word, NO. REITs are 100% stock and substantially more volatile than the total stock market. The general rule for short therm savings is if you need a specified amount in 5 years, then don't use e...
by pkcrafter
Sat Apr 12, 2014 11:41 am
 
Forum: Investing - Help with Personal Investments
Topic: Investing in REIT for a future house?
Replies: 4
Views: 400

Re: Can I get some alpha? (DFA / Wealthfront)

Hi - I am trying to find smart ways to generate even a little bit of alpha (net of taxes and fees) above what a standard diversified equity portfolio would generate. plevine, I look at it this way. If you use broadly diversified low cost index funds and don't mess around, you will get your fair sha...
by pkcrafter
Fri Apr 11, 2014 8:53 pm
 
Forum: Investing - Theory, News & General
Topic: Can I get some alpha? (DFA / Wealthfront)
Replies: 58
Views: 2844

Re: Howard Marks latest memo

Thanks for posting the link. How has Marks influenced your investing?

Paul
by pkcrafter
Fri Apr 11, 2014 1:35 pm
 
Forum: Investing - Theory, News & General
Topic: Howard Marks latest memo
Replies: 12
Views: 1240

Re: New to investing, looking for insights

I'm aware it's free money lol...my point was everyone keeps telling me about it and how stupid I am for not doing it. I have been researching the stocks I was interested in buying. I guess I should have specified I have gone over scenarios and budgets and plans on paper and spreadsheets basically n...
by pkcrafter
Fri Apr 11, 2014 12:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: New to investing, looking for insights
Replies: 30
Views: 1609

Re: Improvement needed

Sorry to hear you are in this situation, but you a fine example why we never recommend people invest with friends or family members. It's nice of you to help your friend grow his retirement, but if he's really a friend he will understand your doing this yourself.

Paul
by pkcrafter
Fri Apr 11, 2014 11:39 am
 
Forum: Investing - Help with Personal Investments
Topic: Improvement needed
Replies: 42
Views: 1647

Re: New to investing, looking for insights

the mortgage is in my name, but both of our names are on the deed. This was unwise, but I hope it works out. interest rates are anywhere between 1% and 7% (I have them "consolidated" to make one payment instead of several others). It would have been better to not consolidate these loans b...
by pkcrafter
Thu Apr 10, 2014 11:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: New to investing, looking for insights
Replies: 30
Views: 1609

Re: New to investing, looking for insights

Welcome, glad you are reading The Bogleheads' Guide to Investing , but you still don't have your ducks in a row. So, now that you are there, start with this link: http://www.bogleheads.org/wiki/Getting_started Hi everyone. To start, I just want to give you some background on myself. I am 27 and hav...
by pkcrafter
Thu Apr 10, 2014 9:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: New to investing, looking for insights
Replies: 30
Views: 1609

Re: "Why do investors make bad choices?"

Thanks for the link. This should make it clear that investors will make mistakes, even if very knowledgeable about behavior. The problem is we can think very rationally when stress and emotions aren't in play, but when they are, rationality gets thrown out the window.

Paul
by pkcrafter
Wed Apr 09, 2014 2:01 pm
 
Forum: Investing - Theory, News & General
Topic: "Why do investors make bad choices?"
Replies: 23
Views: 1483

Is Alpha Dead?

Beating The Market Has Become Almost Impossible

Interesting 5-part article from Institutional Investor

http://www.institutionalinvestor.com/Article/3256074/Beating-the-Market-Has-Become-Nearly-Impossible.html?ArticleId=3256074&p=1#.U0OEGVebdig

Paul
by pkcrafter
Tue Apr 08, 2014 1:24 am
 
Forum: Investing - Theory, News & General
Topic: Is Alpha Dead?
Replies: 38
Views: 2003

Re: Why did Buffet Pick Vanguard SP500?

He picked the S&P500 because it's the most recognized broad market index in existence, and it's a nod to John Bogle's creation.

Paul
by pkcrafter
Sun Apr 06, 2014 9:22 pm
 
Forum: Investing - Theory, News & General
Topic: Why did Buffet Pick Vanguard SP500?
Replies: 23
Views: 2834

Do Advisors Help or Hinder?

Do advisors help or hinder? Sadly, the answer is that financial advisors hinder according to Do financial advisors improve portfolio performance? "Once we control for different characteristics of investors using financial advisors, we discover that advisors actually tend to lower returns, raise...
by pkcrafter
Sun Apr 06, 2014 1:02 pm
 
Forum: Investing - Theory, News & General
Topic: Do Advisors Help or Hinder?
Replies: 7
Views: 584

Re: A Rynamic Approach to a Retirement Spending

Thanks for the link - as far as I'm aware, there's only one way people spend in retirement, which is similar to their #2 - you pick a reasonable withdrawal rate,and vary it flexibly based on investment results. Hard caps and floors aren't necessary if you use common sense. +1 Common sense isn't giv...
by pkcrafter
Sun Apr 06, 2014 12:52 pm
 
Forum: Investing - Theory, News & General
Topic: A Rynamic Approach to a Retirement Spending
Replies: 6
Views: 653

Re: Cold Feet Investing

What is your withdrawal rate?

Paul
by pkcrafter
Sat Apr 05, 2014 2:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Cold Feet Investing
Replies: 9
Views: 1247

Re: Investing in Equities, But Avoiding Market Top

Welcome dickstewart, As part of my goal of achieving a 70/30 Equity/Fixed Income portfolio split, I have funds to invest now in broad market Equity ETFs To get a better perspective on this, can you tell us what your AA (asset allocation) is now. Is 70/30 a new AA or do you have new money to invest. ...
by pkcrafter
Sat Apr 05, 2014 2:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing in Equities, But Avoiding Market Top
Replies: 13
Views: 1073

Re: Flip Chart Investing

Now why not just flip the stock charts vertically and buy stocks based on that? Now when one rushes in when the chart spikes, they would in fact be rushing in to buy low, and vice versa when the chart plummets. Because it's market timing? The problem is the market is unpredictable . Good question, ...
by pkcrafter
Sat Apr 05, 2014 1:58 pm
 
Forum: Investing - Theory, News & General
Topic: Flip Chart Investing
Replies: 6
Views: 516

Re: Investment amount instead of allocation percentage

Starbux, I'm curious to know if you are in accumulation phase. If you are, then in effect, you are reducing equity allocation as you go along, but it isn't well controlled. This may not be a bad idea as you approach retirement. But my curiosity asks if 500k is now 80% of your portfolio or 40%. the o...
by pkcrafter
Fri Apr 04, 2014 8:55 pm
 
Forum: Investing - Theory, News & General
Topic: Investment amount instead of allocation percentage
Replies: 21
Views: 1512

Re: passive versus active

Rich, you seem to be focusing on the fund level and not the portfolio level. Your overall risk level is something you should decide on and then you should set the proper exposure to equities that reflects that risk. If you are under the perception that a fund manager is going to make the right timin...
by pkcrafter
Fri Apr 04, 2014 6:14 pm
 
Forum: Investing - Theory, News & General
Topic: passive versus active
Replies: 25
Views: 1185

Re: passive versus active

richk, If we have two identical funds with identical risk and no costs, then they should perform the same, right? But what happens if one fund has an expense ratio of 0.1% and the other has an expense ratio of 1.0%. The second fund must have a lower return to the investor because of the returns lost...
by pkcrafter
Fri Apr 04, 2014 2:20 pm
 
Forum: Investing - Theory, News & General
Topic: passive versus active
Replies: 25
Views: 1185

Re: How am I doing and/or stress/sanity check :)

Welcome, My first thought of where you are is signaled by your own feeling of stress. You don't feel you are managing your money correctly, and I think the responsibility and cost of a child is a bit daunting right now. All of this probably stems from not having a good plan and maybe having the sen...
by pkcrafter
Fri Apr 04, 2014 11:38 am
 
Forum: Investing - Help with Personal Investments
Topic: How am I doing - stress check UPDATED with INFO
Replies: 14
Views: 1555

Re: The case against small cap value

Streptococcus, it should be pointed out that you and Frans are making the same mistake. You both are taking a selected small portion of the small cap data and using only that to form an erroneous conclusion. Frans insists in only looking at very long term data while ignoring the possibility of rathe...
by pkcrafter
Thu Apr 03, 2014 10:56 am
 
Forum: Investing - Theory, News & General
Topic: The case against small cap value
Replies: 53
Views: 5075

Re: Laid Off at 53.5...need better allocation...how to get t

Getsmart, you may be interested in this: http://www.onefpa.org/journal/Pages/Reducing%20Retirement%20Risk%20with%20a%20Rising%20Equity%20Glide%20Path.aspx Also, read this bit on NUA (net unrealized appreciation) http://www.investopedia.com/articles/retirement/05/062305.asp freddie wrote: I am pretty...
by pkcrafter
Wed Apr 02, 2014 11:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Laid Off at 53.5...need better allocation...how to get there
Replies: 22
Views: 2387

Re: Laid Off at 53.5...need better allocation...how to get t

GetSmart, considering your age, I don't think you have a lot of ability to withstand a significant loss in assets. If you are hit with a market dive in the first years of retirement it could cause long term damage to your retirement plans. Since you do not require a very high starting withdrawal rat...
by pkcrafter
Wed Apr 02, 2014 8:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: Laid Off at 53.5...need better allocation...how to get there
Replies: 22
Views: 2387

Re: Should I invest and where?

OK, yes, you should up international to somewhere between 20 and 40% now. I'm not sure why Yacktman is in there, but I don't think it adds anything, plus it's not very tax efficient. I would not count a high yield fund as a defensive holding. High yield bonds act very much like stocks in a crash. Bl...
by pkcrafter
Wed Apr 02, 2014 1:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I invest and where?
Replies: 12
Views: 913

Re: which fund for 23yr old

Would prefer an ETF - to add to his existing Schwab stock account. You asked for a fund for just starting out, but this implies you already have an existing portfolio. We need to know what you hold in order to recommend another fund. You must have an overall plan and a desired asset allocation in p...
by pkcrafter
Wed Apr 02, 2014 12:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: which fund for 23yr old
Replies: 10
Views: 598
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