Search found 63 matches

by cldrunner
Mon Dec 15, 2014 11:42 pm
Forum: Personal Finance (Not Investing)
Topic: Over witholding in Roth Conversion
Replies: 14
Views: 1246

Re: Over witholding in Roth Conversion

Electron wrote:There are two basic ways to do a Traditional IRA to Roth IRA Conversion.

You can pay the taxes from the TIRA which results in a smaller balance transferring to the Roth IRA.

The second option is to pay the conversion taxes from separate taxable assets. In this case all assets transfer from the TIRA to the Roth IRA. This second option is a much better approach if taxable assets are available to pay the conversion taxes.
I understand that it is better to pay conversion out of current assets. The question really is this a backdoor technique to penalty free withdrawals if under 59-1/2?
I don't think any of the money is subject to 10% early withdrawal penalty because it is all part of the conversion. Am I wrong?
by cldrunner
Mon Dec 15, 2014 10:09 pm
Forum: Personal Finance (Not Investing)
Topic: Over witholding in Roth Conversion
Replies: 14
Views: 1246

Over witholding in Roth Conversion

Is there any penalty in over-withholding taxes in a Roth Conversion. For example, you convert $10,000 from a traditional IRA into a Roth IRA. You withhold $3,000 in taxes from the IRA. If you are in the 15% tax bracket you really only owe $1800 in taxes. Does the extra $1,200 come back to you as a tax refund penalty free? In an extreme case an individual could withhold 100% or $10,000. Would $3,000(15% X $20,000) be owed in taxes and $7,000 be returned in a tax refund? I can not find any information on this type of transaction.
by cldrunner
Thu Sep 25, 2014 10:58 am
Forum: Personal Consumer Issues
Topic: Treadmills [vs. Ellipticals]
Replies: 55
Views: 7913

Re: Treadmills

I have had a SOLE f80 from Dicks for about 4 years. It has been a very good treadmill for me. It has large button for changing speed 2,4,6,10,12mph. This is a very nice feature that are not on many treadmills. The F80 has a longer deck for those that have longer strides. Just as good or better than any commercial treadmill that I have used in hotels. I fold mine up and down for every run. I would fit in a 3X3X6ft tall cube when the deck is up. It would probably be fairly easy to move around on a hardwood floor but do not plan on moving it on carpet.
by cldrunner
Mon Sep 15, 2014 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Investing in Startup My Father Is Joining as Founder
Replies: 16
Views: 2671

Re: Investing in Startup My Father Is Joining as Founder

Something to think about.

If you are going to invest you may want to look into opening up a self-directed IRA. Purchase the investment in your ROTH self directed IRA. If it happens to turn out to be a GREAT investment you will never pay taxes on this money ever again. If you have kids then look at a self directed Coverdell funded by their Grandpa!!
by cldrunner
Sun Dec 08, 2013 4:22 pm
Forum: Personal Investments
Topic: Private Money Lending
Replies: 102
Views: 11284

Re: Private Money Lending

This has been a very interesting thread. I just met an older gentleman who apparently has been a "deed of trust" investor for many years. Since my county recorder has pretty decent online records, I was able to go back to 1980 and read actual deeds of trust used to secure the loans in his deals and was able to verify most of what he was telling me. The range of his deals are $40k to $850k, but mostly under $75k. The basics of how he conducts his affairs are similar to what has been previously discussed. Since he has an established reputation, there are no shortage of deals coming to him. I would say most of what he does is financing local real estate agents who are flipping homes and commercial propery on the side. I am intereste...
by cldrunner
Fri Nov 22, 2013 1:31 pm
Forum: Personal Investments
Topic: Private Money Lending
Replies: 102
Views: 11284

Re: Private Money Lending

Thank you for your post cldrunner. You, RenoJay and maybe a few others are the only ones here interested in this. I was interested in your comments about having a property manager manage you properties. That may be an option for me since I am getting older and getting tired of the management. I have sold some and owner financed them and that works out okay. It's all income streams. I think one needs to have at least some entrepreneurial spirit to do what we are talking about. For someone who just wants to turn their money over to someone else, I don't think this is for them. Most of these private lending threads are started by links to articles that show investors lending their money to individuals with bad credit. That can not be further ...
by cldrunner
Tue Nov 19, 2013 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: Private equity IRA?
Replies: 9
Views: 1416

Re: Private equity IRA?

IRA Trust Services is the Vanguard of self- directed IRA's.

I have had awesome customer service with Quest IRA, Inc.

Think about using Roth if you think the payoff will be large.
by cldrunner
Tue Nov 19, 2013 5:31 pm
Forum: Investing - Theory, News & General
Topic: Quality investing books for a 14 year old?
Replies: 8
Views: 976

Re: Quality investing books for a 14 year old?

I would recommend Algebra, Physics, Chemistry, Geometry, Calculus, and Biology.

If a 14 YO masters these they will have a great financial future.
by cldrunner
Thu Nov 14, 2013 5:51 pm
Forum: Investing - Theory, News & General
Topic: If want a good laugh watch this [advisor] video
Replies: 41
Views: 5843

Re: If want a good laugh watch this [advisor] video

But I have heard that the Double Chunk Chocolate Chip Cookies at the seminars are unbelievable.
by cldrunner
Thu Nov 14, 2013 11:41 am
Forum: Personal Investments
Topic: Private Money Lending
Replies: 102
Views: 11284

Re: Private Money Lending

Thanks RenoJay for your post. You and a couple of others on this site show some interest in private money lending, but for the most part everyone else is negative about it. I have been doing it for many years and have been successful with it getting returns much higher than traditional investments. I thought that there would be more interest in it here, but I was wrong. What bothers me is a lot of people here just automatically assume it's too risky or it's too illiquid or you can't do it here or whatever. I'm not saying it's for everyone or that one should just jump into it without some knowledge. I've said this before and I'll say it again, you need to know what you are doing it you are going to do this. It is not passive, it is hands on...
by cldrunner
Wed Nov 13, 2013 2:31 pm
Forum: Personal Investments
Topic: Best "Indirect Financial advice" you ever received?
Replies: 66
Views: 6343

Re: Best "Indirect Financial advice" you ever received?

Rental income provides a predictable monthly income and does not force you to liquidate your principle to create "cash flow" to pay your bills. Yes, provided you have decent renters and maintenance costs don't eat you alive. A good property manager will weed out poor renters. Also a hefty deposit goes along way in having renters return the home in the same condition they moved in. Staying in a market that rents out homes to working professionals is also helpful.. Requires homes that are not the dumps in town but are nice homes in working calls neighborhoods. I buy new homes at wholesale that require very little maintenance in the first 10 years. This is the first article I have ever seen about this topic. It was in the Wall Stree...
by cldrunner
Wed Nov 13, 2013 12:13 pm
Forum: Personal Investments
Topic: Best "Indirect Financial advice" you ever received?
Replies: 66
Views: 6343

Re: Best "Indirect Financial advice" you ever received?

1. Income producing real estate is for long term investment-----Stocks and bonds are for liquidity!!

2. Don't confuse "Income" with "Cash Flow". They are not the same.
Cash flow is created when you sell stock to pay your bills. A well diversified stock portfolio after management fees and expenses provides very little dividend income. Stock investors need to rely on growth to maintain the stock portfolio. If growth does not materialize due to low returns, sequence of returns, and inflation, they are forced to sell off more and more of their principal. Rental income provides a predictable monthly income and does not force you to liquidate your principle to create "cash flow" to pay your bills.
by cldrunner
Fri Nov 08, 2013 2:41 pm
Forum: Personal Investments
Topic: Private Money Lending
Replies: 102
Views: 11284

Re: Private Money Lending

I agree with RenoJay, this is not for everyone, and I do not want anyone to think they can make a lot of money the easy way. Having said that, I can give an example of one deal that was not a good one in that the buyers defaulted. I made a loan to buy a house under the officer next door program. This is a government program where the government sells foreclosed homes to police officers for half the appraised value. The appraisal on the house was $90,000. In July 2007, I loaned them $45,000 (50% LTV). The buyers made a few payments and then defaulted. I foreclosed and got ownership of the house. This was right in the middle of the big real estate crash so housing values were down. I decided to rent the house until real estate values came ba...
by cldrunner
Sat Dec 22, 2012 9:01 pm
Forum: Personal Investments
Topic: Private Money Lending
Replies: 102
Views: 11284

Re: Private Money Lending

I had considered this kind of loan, but I think the risks you outline are accurate and were out of my comfort zone. If I wanted that kind of risk, I'd probably just flip the houses myself. You can also lend to regional/local builders which is possibly a bit safer than to house flippers. Going rate, I believe, is around 10%.
I am working with a local builder. Loan is 3 years 12%. Builder pays closing cost on rental home used as collateral first lien. This frees him to build and sell as many spec homes as he can in three years while I sit with a home that has a LTV around 70% of loan. The costs are lower than doing separate deals for each home. Not into the rehabbing scene.
by cldrunner
Sat Dec 22, 2012 12:23 pm
Forum: Personal Investments
Topic: Private Money Lending
Replies: 102
Views: 11284

Re: Private Money Lending

It would be interesting if you could report back to us in a year or two if they actually fixed their credit, and refinanced with a real bank to pay you off...

I'm amazed they aren't just renting... I can't believe they are willingly paying 9.5% interest with such a huge downpayment.

User avatar
HomerJ
I expect these owners will clean up their credit in 3-5 years and then refinance at lower rates. Who knows 9.5% maybe low in 5 years........
In the meantime RenoJay makes a great return!!
by cldrunner
Sat Dec 22, 2012 12:16 pm
Forum: Personal Investments
Topic: Private Money Lending
Replies: 102
Views: 11284

Re: Private Money Lending

I agree with what cldrunner is saying. It's all about how you see risk. Someone who is not knowledgeable in this sort of investment will see more risk than someone who is knowledgeable. One should not take someones word for anything, but should do the research themselves. Get a title search and be sure you are in first position. Get the value of the property and be sure the loan to value ratio is low enough. Read the paperwork, etc. You hit the nail on the head. I thought several years ago that these type of investments were high risk. I was not knowledgeable at the time. I read every book I could find on "trust deeds", read every article I could find using self-directed IRA's, and searched every custodians website for educationa...
by cldrunner
Sat Dec 22, 2012 10:54 am
Forum: Personal Investments
Topic: Private Money Lending
Replies: 102
Views: 11284

Re: Private Money Lending

The high risk, high return mantra applies here. Of course, not every broker is a fraudster like Lull was. But there is no free lunch. jimbojones It is all about how you see risk. If these deals were done at 100% LTV then the risk would be very high. Since the loans are done at LTV of under 70% of LTV then the risk is much lower. I would even consider the risk to be lower than owning a bond fund at this time. I see greater risk in any stock or bond fund. Even in a foreclosure situation the investor might make more than in a non foreclosure. The higher return is due to the lack of liquidity in these types of loans. To me this investor is making great loans as long as he has title insurance and a first lien on the property. The loans can stil...
by cldrunner
Wed Dec 19, 2012 7:46 pm
Forum: Investing - Theory, News & General
Topic: Why doesn't the general public care about expense ratios?
Replies: 101
Views: 11045

Re: Why doesn't the general public care about expense ratios

Seems to be a general consensus that hidden cost are something to keep an eye on. Question : Are indexers just as misinformed as active mutual fund holders? I ask this question in the context as indexers do not look at the cost of ownership of the holdings that they own. They do not look at the waste of corporate America. The cost of owning stocks seems to be very high when you look at the expenses of corporations. For example I find the following excesses that I really do not want to pay for. -Corporate Jets running around the country for both business and pleasure from many business. -Executive management salaries that far exceed the average employee salary. -Benefits packages that include millions of dollars for upper managements that ar...
by cldrunner
Fri Oct 26, 2012 10:20 pm
Forum: Personal Investments
Topic: Deleted
Replies: 4
Views: 2039

Re: self-directed IRA custodian?

Pensco Millennium Trust Company Equity Trust These seem to be the big ones. Pensco has a very good 50 question and answer document at. http://www.pensco.com/learn/educational-resources/ebooks This is a very good read. Most advisers and those on this website are not educated about the possibilities of using your IRA in real estate transactions. They will just spout out the normal "their are a lot of prohibited transactions.", OR " I don't want to fix toilets". Yes, their are restrictions but I think for a portion of retirement assets and for the right investors who are willing to do a little legwork their are many attractive opportunities. For example, I loaned part of my Roth IRA to a developer for 3 years and a 12% yiel...
by cldrunner
Wed Sep 26, 2012 11:43 am
Forum: Investing - Theory, News & General
Topic: "An Efficient Frontier for Retirement Income"
Replies: 75
Views: 14146

Re: "An Efficient Frontier for Retirement Income"

Barrons had a nice article on annuities a few months back. Here is a chart of their recommendations and potential payouts. Just to give people an example on how much to expect in a payout. If anyone has experience or access to Vanguard solutions I would like to see how they compare.

http://online.barrons.com/article/SB500 ... rticle%3D1

Image
by cldrunner
Sat Jul 07, 2012 10:22 pm
Forum: Personal Consumer Issues
Topic: I want an Airstream!
Replies: 70
Views: 17576

Re: I want an Airstream!

Follow your dream. 5 years ago we bought a 22' conversion van (I had to learn what all the different types of RV's were called). It has been the most fun vehicle ever. Tomorrow we leave for an 8 week trip to the Southwest: Yellowstone, Utah national parks that we missed on the last trip (Zion, Capitol Reef, Bryce), Lake Powell and Antelope Canyon in AZ. Stops in Nashville and St. Louis on the way out and Texas on the way back. It's a big, beautiful country. We get up close and personal with near wilderness while having a comfortable bed and eating healthy food. We are so active all day long that we come home 8-10 lbs. less body weight. How large are your dogs? And will you be taking them in your truck during the day? They will be with you ...
by cldrunner
Fri May 18, 2012 12:50 am
Forum: Personal Consumer Issues
Topic: Mental Math to think about while running
Replies: 42
Views: 5309

Re: Mental Math to think about while running

Go out slow and count the number of people you you pass in the last 1/2 of the race. Good Luck and make sure to drink plenty of water and Gatorade along the way.
by cldrunner
Wed May 16, 2012 1:59 pm
Forum: Investing - Theory, News & General
Topic: The Rise and Fall of Shiller PE/10
Replies: 46
Views: 19887

Re: The Rise and Fall of Shiller PE/10

For a more in depth look at PE an how they relate to bull and bear markets Ed Easterling has a book called Probable Outcomes (2011). His market research is at:

http://www.crestmontresearch.com/stock-market/



Below is a link to PE ratios in both bull and bear markets dating back to 1901.


http://www.crestmontresearch.com/docs/S ... -Chart.pdf
by cldrunner
Mon May 14, 2012 2:37 pm
Forum: Investing - Theory, News & General
Topic: old hat for others....tilting question
Replies: 43
Views: 4139

Re: old hat for others....tilting question

stlutz wrote:As an experiment does someone want to put in an order to buy 100 shares of this stock at the market and then check back with next quarter's 13-F to see if DFA unloaded their 100 shares to you at a crazy-high price? :wink:

The spread is a whopping $0.38!!

Actually the New Leaf Fitness metabolic testing is pretty cool for those fitness buffs out there. I am not promoting the stock!! Just think it a pretty good example of a tiny micro cap that is owned by DFA,Vanguard, and Bridgeway..
by cldrunner
Mon May 14, 2012 1:58 pm
Forum: Investing - Theory, News & General
Topic: old hat for others....tilting question
Replies: 43
Views: 4139

Re: old hat for others....tilting question

The types of "small" stocks that are in small cap indexes (actually companies worth hundreds of millions of dollars) must, by definition, be liquid so the index can be tracked. While there is a class of very small, illiquid, thinly traded stocks out there, institutional mutual funds aren't picking them up. Here is an example of a micro cap value stock that usually has a market cap of only 15-20 million. Shares usually trade between $4-$6. The company is ANGN. This is a tiny little stock that is owned by both hedge funds, active funds, and passive funds. The two funds at the bottom are exactly what Larry is talking (I hope) about when he talks about DFA and Bridgeway owning tiny companies and being patient traders. Bridgeway only ...
by cldrunner
Fri May 11, 2012 11:23 am
Forum: Investing - Theory, News & General
Topic: The Rise and Fall of Shiller PE/10
Replies: 46
Views: 19887

Re: Withdrawal Rates, Savings Rates, and Valuation-Based Ass

Thanks for the link to the article by Wade Pfau. Interestingly, if you were following this simple dynamic allocation model, you should now have a "low" allocation to stocks (25% using the Graham & Dodd strategy). PE/10 is now almost 23 and the upper bound of the range (4/3 x Median CAPE) is 21. At the market low on 3/2009 you would have only been at a "medium" stock allocation (50% using G&D). Here is another article that you may be interested in. http://www.bizmonthly.com/study-by-local-financial-firm-questions-mainstream-approach-to-investing/ http://www.fpanet.org/journal/CurrentIssue/TableofContents/ImprovingRiskAdjustedReturns/ Study Overview Our study attempts to illustrate how incorporating a simple facto...
by cldrunner
Mon May 07, 2012 10:47 am
Forum: Investing - Theory, News & General
Topic: The Rise and Fall of Shiller PE/10
Replies: 46
Views: 19887

Withdrawal Rates, Savings Rates, and Valuation-Based Asset A

Here is a recent article in the Journal of Financial Planning pertaining to allocation according to PE 10

http://www.fpanet.org/journal/Withdrawa ... Valuation/


This article provides favorable evidence based on the historical record for clients to obtain improved retirement planning outcomes (lower savings rates, higher withdrawal rates) using dynamic valuation-based asset allocation strategies. This is illustrated with a specific example comparing a 50/50 fixed allocation strategy to the Graham and Dodd valuation-based strategy with a stock allocation of 25 percent, 50 percent, or 75 percent, determined by the value of PE10 with respect to its rolling median value.
by cldrunner
Thu May 03, 2012 11:22 am
Forum: Investing - Theory, News & General
Topic: Bill Miller's Unglorious End
Replies: 16
Views: 3680

Re: Bill Miller's Unglorious End

As an Air Force tanker pilot, I was ever mindful that a small mistake and the 189,000 lbs. of highly volatile jet fuel I was sitting on top of could lead to a spectacular crash and burn. That’s not how I wanted to end my career. Unfortunately, fund manager Bill Miller’s retirement ends his run with an astounding power dive into the dirt with a planeload of passengers coming along for the ride. I am sorry Frank but pumping yourself up before you slam Bill Miller into the ground is not my idea of a professional. Pilots make small mistakes all the time. That is why there is another pilot in the flight deck as well as a navigator. It is the BIG mistake or the compounding mistakes that lead to disaster. Equating diving a full load of passengers...
by cldrunner
Wed May 02, 2012 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: The Worst Deal in Mutual Funds Faces a Reckoning
Replies: 23
Views: 3201

Re: The Worst Deal in Mutual Funds Faces a Reckoning

It depends on the funds being compared. If a fund is able to lower annual expenses enough by using a load, then an investor with a sufficiently long time horizon could be better off with the load fund.
Funds do not try to lower annual expenses by using a load. Funds use loads to pay the brokers that sell them.
by cldrunner
Wed May 02, 2012 11:48 am
Forum: Personal Finance (Not Investing)
Topic: The Worst Deal in Mutual Funds Faces a Reckoning
Replies: 23
Views: 3201

Re: The Worst Deal in Mutual Funds Faces a Reckoning

mhc wrote:As interesting as the cartoon is, you should read the comments below the article. People are saying that investors are better off paying loads.

I am sure that those individuals who are "saying it is better to pay loads" have a vested interest. They are probably brokers!!
by cldrunner
Wed May 02, 2012 11:20 am
Forum: Personal Finance (Not Investing)
Topic: The Worst Deal in Mutual Funds Faces a Reckoning
Replies: 23
Views: 3201

The Worst Deal in Mutual Funds Faces a Reckoning

Image

Sloooooowly the industry is changing!! Gotta love the cartoon. Bloomberg article:

http://www.bloomberg.com/news/2012-04-3 ... oning.html

I think that is Jack Bogle riding the bike and leading the charge for low cost investing.
by cldrunner
Mon Apr 30, 2012 11:15 am
Forum: Investing - Theory, News & General
Topic: Sorting out the ETF maze
Replies: 6
Views: 1003

Re: Sorting out the ETF maze

Nice article Rick. Should Bogleheads only consider or focus on the Lower Left Quadrant "Benchmark"? Of these "Benchmark" ETF's what percentage would you consider to be low cost or extremely low cost such as VTI or BND? I suspect that even in the benchmark quadrant there are only a handful of ETF's worth considering.
by cldrunner
Tue Apr 24, 2012 10:31 am
Forum: Personal Finance (Not Investing)
Topic: Some Soc Sec returns are like owning a 7% Bond
Replies: 37
Views: 2913

Re: Some Soc Sec returns are like owning a 7% Bond

Recent study in this months Journal of Financial Planning. Your portfolio will last longer!! This study illustrates how the Social Security claiming decision can affect the longevity of retirees’ financial portfolios. Reichenstein and Meyer (2011) illustrate that different claiming strategies can produce significant differences in real cumulative lifetime benefits. As a result, it is common sense that if you select a claiming strategy that garners more real lifetime benefits it will extend the longevity of the retiree’s financial portfolio. • This is the first study to provide estimates of how much longer the financial portfolio will last if a retiree delays the beginning of Social Security benefits. http://www.retireeincome.com/research_ap...
by cldrunner
Fri Apr 20, 2012 7:56 am
Forum: Investing - Theory, News & General
Topic: Social Securiy Claiming Guide
Replies: 2
Views: 761

Social Securiy Claiming Guide

Nice little easy to read Social Security Guide for those interested.

http://fsp.bc.edu/wp-content/uploads/20 ... v_0706.pdf


In addition, another good piece on how to fix-it.

http://fsp.bc.edu/wp-content/uploads/20 ... _-_sm2.pdf
by cldrunner
Thu Apr 19, 2012 10:52 pm
Forum: Investing - Theory, News & General
Topic: Equal Weight Europe and Pacific Funds - an update
Replies: 54
Views: 8331

Re: Equal Weight Europe and Pacific Funds - an update

I didn't say to not buy Canadian stocks. An investor could have bought the iShares MSCI Canada Index Fund (EWC) . It has been around since 1996. I didn't say to not buy international small cap value. An investor could have bought the WisdomTree International SmallCap Dividend Fund (DLS) . It has been around since 2006. Rick Ferri Hi Rick, Thanks. I just thought that the "Boglehead Way" would be to keep it simple and buy one international fund such as VXUS that included Europe, Asia, North America, Emerging Markets, small international and small emerging markets in one fund with an expense ratio of .18%. If I had to buy EWC(.52%) and DLS (.58%) the higher expense ratios would probably eat up any given advantage of holding 5 differ...
by cldrunner
Thu Apr 19, 2012 6:14 pm
Forum: Investing - Theory, News & General
Topic: Equal Weight Europe and Pacific Funds - an update
Replies: 54
Views: 8331

Re: Equal Weight Europe and Pacific Funds - an update

How is an investor that uses the 50/50 Europe and Pacific Funds get exposure to Canada which has a 8.3% weighting in a fund like the Total International Index(VTSGX) or VXUS . Seems like a rather large segment of the international market that an indexer would not want to exclude.
by cldrunner
Mon Apr 16, 2012 4:06 pm
Forum: Investing - Theory, News & General
Topic: The Curse of the Yale Model
Replies: 36
Views: 6178

Re: The Curse of the Yale Model

Hi Rick,

Nice article. When do the pension funds, endowments, see the "light"? Does your research include small pensions funds and private school endowments that might have even had poorer performance than their larger brothers?

cldrunner
by cldrunner
Thu Apr 05, 2012 9:23 pm
Forum: Investing - Theory, News & General
Topic: Are size and value premiums diminishing? Some think so.
Replies: 16
Views: 1605

Re: Are size and value premiums diminishing? Some think so.

Rick Ferri wrote:They are a leader in "reseaching" momentum - capturing it in a fund may be a completely different story.
I agree. Even if you take out the net expenses of each one of the funds- they still did not do well. Maybe AQR (Asness) can capture it in his hedge funds because he can take more risk than in the mutual fund. Who knows. Thanks for the post to the article Rick.


Larry,

Thank you for the thorough explanation.

cldrunner
by cldrunner
Thu Apr 05, 2012 8:40 pm
Forum: Investing - Theory, News & General
Topic: Are size and value premiums diminishing? Some think so.
Replies: 16
Views: 1605

Re: Are size and value premiums diminishing? Some think so.

and my look at the momentum premium is I don't see anything convincing on that one. Larry, Do you believe there is a momentum premium? In Rick's book "The Power of Passive Investing" he mentions AQR as a leader in momentum. From the looks of the three momentum mutual funds that they manage I can not see any advantage that these funds provide. Of course the returns are from a very short period (less than three years). Was this a not so favorable time frame for momentum or is this strategy diminishing? https://www.aqrfunds.com/OurFunds/MomentumFunds/MomentumFund/Performance.aspx https://www.aqrfunds.com/OurFunds/MomentumFunds/SmallCapMomentumFund/Performance.aspx https://www.aqrfunds.com/OurFunds/MomentumFunds/InternationalMomentum...
by cldrunner
Thu Apr 05, 2012 7:21 pm
Forum: Investing - Theory, News & General
Topic: 2012 Large-Cap SMA Manager of the Year Co-Winner: Santa Barb
Replies: 1
Views: 269

2012 Large-Cap SMA Manager of the Year Co-Winner: Santa Barb

This article is from Investment Advisor Magazine. I suspect this magazines audience is primarily brokers. The issue has a big spread on several managers of the year for 2012. Although each of the "glossy" pictures and "eloquent write-ups" make each manager seem far superior to all indexes and managers. They seem to have forgotten a important small part---No performance Data!! The large cap co-winner of the year has a nice write-up on picking stocks that have a yield that is greater than the S&P 500 and volatility that is less than the S&P 500. Of course every manager these days seems to be talking about yield and dividends..... I have a little secret for the author of the magazine. I know of a little ETF that is ...
by cldrunner
Thu Mar 22, 2012 7:59 am
Forum: Investing - Theory, News & General
Topic: Advanced Portfolio Theory Book Recommendation
Replies: 21
Views: 3616

Re: Advanced Portfolio Theory Book Recommendation

supraacumen wrote:I am looking for some recommendations of more analytically oriented books on portfolio theory and portfolio construction.
It looks like you may be wanting to dig a little deeper that just books. Using the academic research papers that the writers of these books reference may be more what you are looking for. You may want to reference each article in the books you are reading or here is a pretty good list of papers.

http://www.altruistfa.com/readingroomar ... Allocation
by cldrunner
Wed Mar 14, 2012 10:41 am
Forum: Investing - Theory, News & General
Topic: Portfolio Solutions
Replies: 52
Views: 7054

Re: Portfolio Solutions

Sounds like you will be dealing with one of his staff and essentially a 1-800 number. Instead of Portfolio Solutions, I would meet with several 'Fee only' advisors in your area that have a 'passive' money management style. You will be able to look this Advisor in the eye and they will be able to take a holistic view of your situation. Portfolio Solutions is too 'cookie cutter' for my liking. If you want an RIA that is going to be eye to eye with you Rick actually may be a good fit. In my short time on this board I have seen Rick post on many topics. Many do not want or need a holistic full financial planning view on a regular basis. If you want to know his philosophy it is not hard to find via his books, blog, and posts. To me his philosop...
by cldrunner
Thu Mar 08, 2012 8:43 pm
Forum: Investing - Theory, News & General
Topic: DFA vs Vanguard Portfolios - Big Difference Over Last 10 yrs
Replies: 85
Views: 16596

Re: DFA vs Vanguard Portfolios - Big Difference Over Last 10

I don't think so!! Well, this thread is over a year old but I found it interesting how returns have come full circle. It looks to me like the Vanguard Funds are actually performing very well against the DFA funds. Returns are posted on Scott Burns Asset Builder website. Interesting how Scott Burns calls the DFA Funds "Smart Funds" while the "dumb Vanguard funds :annoyed " are actually doing just as well or better in most categories. This does not even include using the Admiral Shares for the lower cost and higher returns. What is Modern Portfolio Theory? Modern Portfolio Theory suggests that your portfolio should be diversified with REITs, international, emerging market, and United States equities. For us, the emphasis ...
by cldrunner
Mon Mar 05, 2012 7:03 pm
Forum: Investing - Theory, News & General
Topic: New Videos: Jeremy Siegel, Gus Sauter, Rick Ferri and more..
Replies: 13
Views: 1873

Re: New Videos: Jeremy Siegel, Gus Sauter, Rick Ferri and mo

Financial Advisor magazine recently published a series of short videos featuring different folks in the investment undustry: New Financial Advisor Videos Rick Ferri Rick, Nice breakdown of the different levels of ETF"S. Do you consider the new iShares MSCI USA Minimum Volatility Index Fund (USMV) to be a level 1 or level 3 ETF? .15% is a pretty low expense ratio which might place it in your level 1 criteria but it is a new strategy of indexing which you would consider level 3. While not hedged, the fund may provide lower volatility than the overall market. It seems to me that an investor could hold a slightly higher stock weighting, which you suggested on a different thread a while back --with "lower volatility". Could this ...
by cldrunner
Tue Feb 21, 2012 10:39 pm
Forum: Investing - Theory, News & General
Topic: One Index and One Active fund for next 30 years?
Replies: 3
Views: 984

One Index and One Active fund for next 30 years?

If you could only buy one index fund and one active fund for the next 30 years for your portfolio what would they be?

My choices:

Vanguard LifeStrategy Moderate Growth Fund (VSMGX)

and

Vanguard Wellington Fund Admiral Shares (VWENX)
by cldrunner
Mon Feb 20, 2012 8:42 pm
Forum: Investing - Theory, News & General
Topic: Scott Burns blows the whistle on ETFs (and Vanguard too?)
Replies: 39
Views: 7961

Re: Scott Burns blows the whistle on ETFs (and Vanguard too?

I completely agree, Mike. Any index fund or ETF that charges more than 0.25 percent is probably not worth buying, and any advisor who charges more than 0.25% for index fund asset allocation, implementation and ongoing management is probably not worth hiring! (I couldn't resist adding that bit about advisors, sorry - but it's true! :shock: ) Rick Ferri So if the cost to carry a client is $2500 for a firm like yours --why bash investment advisors who take on a $250,000 client and charges 1%, or a $500,000 account and charges .50%. Seems like you are all making the same amount on each client. Here is the skinny. I originally priced portfolio management services at 0.25% because I calculated that at this rate we could deliver a quality product...
by cldrunner
Thu Feb 16, 2012 4:20 pm
Forum: Investing - Theory, News & General
Topic: Scott Burns blows the whistle on ETFs (and Vanguard too?)
Replies: 39
Views: 7961

Re: Scott Burns blows the whistle on ETFs (and Vanguard too?

I am backing up staythecourse question. This is the most fundamental issue I have been dealing with as a presumed Boglehead. I have a multiple 7 figure AA and have it invested in a diversified set of slice and diced ETFs with a moderate risk tolerance. I made the investments after a lot of research and analysis based on Bogleheads approaches. But in reaching a certain age, (late 50s), I anticipate that I will soon like to ask for and pay for financial advice. However, I can't understand why at even a .25% rate, I would be paying multiple times the amount a person with much fewer assets would pay--all for the same service. For an experienced advisor, with computer driven algorithms, using a fundamental index driven, portfolio theory how is ...
by cldrunner
Thu Feb 16, 2012 10:47 am
Forum: Investing - Theory, News & General
Topic: Scott Burns blows the whistle on ETFs (and Vanguard too?)
Replies: 39
Views: 7961

Re: Scott Burns blows the whistle on ETFs (and Vanguard too?

I completely agree, Mike. Any index fund or ETF that charges more than 0.25 percent is probably not worth buying, and any advisor who charges more than 0.25% for index fund asset allocation, implementation and ongoing management is probably not worth hiring! (I couldn't resist adding that bit about advisors, sorry - but it's true! :shock: ) Rick Ferri Hi Rick, Why does an investor who has a $4,000,000 portfolio pay $10,000 to manage those assets while a portfolio of $1,000,000 only costs $2,500. If the technology allows the advisor to make the exact same trades with the exact number of keystrokes on the same number of funds and the same time commitement---Why the additional costs? Seems to me that the investor with $4,000,000 receives the ...
by cldrunner
Tue Feb 14, 2012 2:02 pm
Forum: Investing - Theory, News & General
Topic: New Permanent Portfolio ETF *PERM*
Replies: 19
Views: 4286

New Permanent Portfolio ETF *PERM*

Well now that the cost structure has come down on the Permanent Portfolio strategy. Will more bogleheads use this new traded ETF? Lower cost option than PRPFX .77% ER. Rebalanced Annually. Fund Name: Global X Permanent ETF Ticker: PERM Stock Exchange: NYSE Arca Total Expenses: 0.49% Fund Inception: February 7, 2012 FUND STRUCTURE * STOCKS • U.S. Large Cap Stocks 9% • U.S. Small Cap Stocks 3% • International Stocks 3% • U.S. Real Estate Stocks 5% • U.S. and Foreign Natural Resource Stocks 5% U.S. Treasury Bonds (Long-Term) 25% U.S. Treasury Bills and Bonds (Short-Term) 25% Gold & Silver • Gold ETFs / ETCs 20% • Silver ETFs / ETCs 5% TOTAL 100% MARKET ENVIRONMENTS AND ASSET ALLOCATION* • Most asset class returns are driven by these four e...
by cldrunner
Thu Nov 03, 2011 11:58 pm
Forum: Personal Consumer Issues
Topic: Home Security System Options?
Replies: 17
Views: 3331

Re: Home Security System Options?

Just installed the 2gig.com system a few weeks ago. I am very happy with the system. If you are into home automation you may want extra z-wave devices such as wall plugins and thermostat to control heating and air and lights both at home and when away. I am able to set up lighting scenes both when I am home and away. Very cool system. Little more expensive monthly because of no land line required. Works of of AT&T cellular. I did not go with the alarm.com video monitoring but instead purchase a wireless 2 camera system with DVR from Costco. Wireless cameras outside work great. Make sure to check your local city police to see if you are required to have a permit. For me it was $30 a year to city.