Bogleheads

I'd like to add that there are other things that can stress the portfolio in a down market. For working people, there is the possible loss of a job and the need to spend from savings until a new job ...

Hello Rick, I respect your opinion and I am wondering what is the best situation for the participant? Thanks

Whomever sits with a participant should have no conflict of interest with the money be ...

Rick, I agree with you but many do not understand their risk tolerance and cannot even simulate an emotionally charged 2008-like situation before the fact. Personally I was shocked by the 2008 swift ...

Bear markets are in your face, 24 hours a day, 7 days a week, for as long as they last. You cannot simply detach yourself from the event by deciding to take a 'balanced' view of the media. That is not ...

InvestmentNews reports:

The Department of Labor’s withdrawal of a controversial rule allowing advisers to work directly with retirement plan participants — just days after the agency extended t ...

What about the risk of U.S. government default on Treasuries? Would this be a good reason to diversify into foreign bonds?

If the US Government defaulted, the entire global financial system includi ...

Foreign bonds provide currency diversification rather than security diversification, and they do it at a high cost. You can invest in US bonds via the Vanguard Total Bond Market and pay about 0.14% in ...

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The Portfolio Solutions Quarterly Client Conference for the fourth quarter has been posted to our website. The call took place today, November 17, 2009.

The first part of the call is some admin ...

Great interview, Taylor.

You have done so much for this country in so many ways. You are a true American Hero.

Rick Ferri

REITs work well in a Roth because they are high income producing investments that also have long-term capital gains.

Philadelphia area - likely in the fall of 2010

I never gave this much thought before but it seems to me that this puts VTI at a disadvantage at least in the longer term. Any benefit of passing low basis shares off to the creation share sellers wou ...

The new eight new Schwab ETFs have created quite a stir among investors. Their low cost and no-commission trading is a clear sign that Schwab is trying to elbow its way into Vanguard’s low-cost ETF ...

Just wondering if IFA would ever simplify that mix by just recommending 2 or 3 funds on the equity side (such as DFQTX/DFIEX/DFCEX or DFTCX/DFTWX assuming all they use is DFA) and one or two funds on ...

I just took the IFA survey. It selected "Ivory 5" as my portfolio which is basically a 15/85. These are the index funds they chose for me:

IFA Index Portfolio Allocations
Indexes* (See l ...

Anyway what EMH really says is that the market price is correct enough that one can't make a profitable bet without some exclusive information that isn't publicly available.

I don't think the defin ...

Models in finance are not the same as models in physics. Models in physics are universal 'laws' that always occur. Models in finance are broad generalities that tend to be true over time.

This ide ...

I had the pleasure of speaking with Burton Malkiel yesterday. Dr. Malkiel has been doing mutual fund performance studies for decades, and I was interested in the studies he used for the first edition ...

Rick, How about The Little Book of Asset Allocation or The Little Book of ETFs. LOL

Has possibilities.

That's it! Enough of all these 'little books'. It is time for me to write THE BIG BOOK on investing. That would be called a contrarian play, right? Smile

Rick Ferri

There are two ways, exchange-traded notes (ETNs) and MACROs. ETNs are debt securities of financial institutions. The 'interest payment' is the return of an index, paid by bank. A MACRO is a swap contr ...

Owning a small amount of gold for diversification makes sense to me.

I own a gold wedding ring, although only one. I don't think my wife would approve of diversification. Laughing

Rick Ferri

H ...

Owning a small amount of gold for diversification makes sense to me.

I own a gold wedding ring, although only one. I don't think my wife would approve of diversification. Laughing

Rick Ferri

There are records on the price of gold going back 3,000 years. In the long-term, gold returns equal the inflation rate, less trading costs, insurance, and storage costs.

If you buy gold to make mo ...

Rick, I doubt there's any reasonable financial question anyone might ask that you could not answer with ease.
Good luck.

How about, "Where's the market going to close in 2009?" For years ...

Why shouldn't something like this be a straight fee?

Actual money management shouldn't have anything to do with it.

Paul
After reading the article, it sounds like this is a service provided to ...

CountryBoy,

I am doing this seminar as a favor for MarketRiders. They have not indicated to me that there would be a written transcript available. In fact, that might be an issue for at least on of ...

Tet

I just registered for the event and wasn't asked for any money. What happened when you registered?
Didn't register for either the webinar or the 30 day thing, so nothing happened. -- Tet

...

So much for the hype. Here are the facts:

I am giving a free webinar for a company called MarketRiders.com. They offer an on-line portfolio management service for do-it-yourself ETF investors. The ...

Not much. 3% to 4% GDP growth was widely anticipated this quarter. The question will be how much of the growth was from one-time government stimulus programs such as cash-for-clunkers and how much was ...

Good index fund entry point this week?

As good as any. But then, what do I know? My crystal ball has been broken for a long time.

"Life is a dollar-cost-average."

Rick Ferri

Just remember that REITs and most commodities went off a cliff with equities last year, so these investments need to be put into the "risky" category.

The difference between REITS and com ...

Ron,

Did not have to worry about bullets out at the aircraft carrier. But there was a bigger threat - the carrier itself is was trying to kill you. Not much room for error out there!

Rick Ferri

$14 plus tip. That is what Walmart charges. Basic cut only. I can wash my own hair, thankyouverymuch.

Yes, I did write WALMART. I am most definitely a cheap Boglehead.

Thanks, Mel. That is a great way to do it.

Rick

I will admit that we real pilots with gold wings did envy you AF guys who had the nice billeting, lush golf courses, and those long 12,000 foot runways. There wasn't any of that on aircraft carriers I ...

Thanks for finding the typo. Please send this and all other typos to Mel via this site's messaging feature. We are collecting corrections and will forward them to Wiley before the next printing.

T ...

Rick, the question is not what the difference in methodology is but why the different methodologies would give such drastic difference in total returns. We're talking about a three or four percent dif ...

I use Vanguard mostly.

Rick Ferri

Rick, can you give any logical reason why the indexes have such a wide difference.

Each index provider has their own methodology. I like the methodology be ...

In my Tenth Anniversary edition of "Common Sense on Mutual Funds" (should be in stores around Thanksgiving), I have added an extensive commentary entitled "The Rise of the Bogleheads,&q ...

I use Vanguard mostly.

Rick Ferri

I am not the only one skeptical of dividends as an investment strategy, especially with so many companies borrowing to pay dividends last year. S&P just announced they are cutting dividend as a sc ...

desertdug08

I want your job. Any chance the you could use an old Marine pilot? Got any aircraft carriers that need landing on? As you know, our wings are made of gold, and you AF guys wings are mad ...

I am not a big fan of US dividend weighted ETFs so I could not answer your question. First, these so-called indexes are gimmicks. All they do add a small-cap value tilt to your portfolio that you coul ...

And when the article came out it just so happens that ProShares put a new ETF in registration called the [url=http://www.proshares.com/resources/news/50638597.html]ProShares Credit Suisse 130/30 (Tick ...

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"The people who really want to help you do not ask for anything in return."

My father told me this when I was 17, just as I was about to do something very stupid, and I didn't do it. ...

I did 8 active and 12 reserve for my 20. Glad I did it, but it was not easy. Drill and deployments interfered with my new career; lots of family time missed; and you never know when you were going to ...

The concept certainly promotes risk taking among active managers because the highest performing managers are rewarded. So, it is all about return, and nothing about risk. That typically means the way ...

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"The people who really want to help you do not ask for anything in return."

My father told me this when I was 17, just as I was about to do something very stupid, and I didn't do it. ...

I prefer look at these risk relationships based on rolling correlation periods rather than calendar years. To see the increase in correlation among value, size and beta, look at the bear market period ...