Search found 319 matches

by Socrativestor
Thu Nov 26, 2009 6:31 pm
Forum: Investing - Theory, News & General
Topic: The problem with percentages as target allocations
Replies: 25
Views: 3419

I make some use of constant dollar amounts in managing my portfolio allocation. I track my portfolio on a graph like this. http://www.entwood.com/images/allocation1.gif The horizontal axis is the portfolio dollars in bonds + cash and the vertical axis is the portfolio dollars in stocks. The blue lines are constant percentage allocation lines. Rather than a single percentage I use two and keep the portfolio between them. So one allocation goal is to keep the portfolio in the wedge between the two blue lines. But I also use some constant dollar lines that may override the percentage allocation. The horizontal red line is the maximum dollar amount I am willing to have in stocks. The vertical red line is the minimum dollar amount I want in fix...
by Socrativestor
Fri Mar 27, 2009 4:19 pm
Forum: Investing - Theory, News & General
Topic: Stay the Course, Not?
Replies: 17
Views: 3540

Re: Stay the Course, Not?

"Most people want to feel something is being done."
Don't just do something -- stand there!!!

:lol:
by Socrativestor
Fri Mar 13, 2009 9:51 am
Forum: Investing - Theory, News & General
Topic: Brawl Street: Jon Stewart vs Jim Cramer
Replies: 49
Views: 9545

Brawl Street: Jon Stewart vs Jim Cramer

http://www.thedailyshow.com/full-episod ... eId=220533

Jon Stewart is doing more for Diehardism than just about anyone these days.
by Socrativestor
Sat Mar 07, 2009 3:32 pm
Forum: US Chapters
Topic: Why Did You Choose Your Username and Avatar?
Replies: 377
Views: 19938

Socrates was the original Athenian Diehard ... :shock:
by Socrativestor
Sat Mar 07, 2009 1:57 pm
Forum: Investing - Theory, News & General
Topic: the crisis in university endowments
Replies: 60
Views: 9334

The function of the university is not simply to teach bread-winning, or to furnish teachers for the public schools, or to be a centre of polite society; it is, above all, to be the organ of that fine adjustment between real life and the growing knowledge of life, an adjustment which forms the secret of civilization. ... Teach workers to work,—a wise saying; wise when applied to German boys and American girls; wiser when said of Negro boys, for they have less knowledge of working and none to teach them. Teach thinkers to think,—a needed knowledge in a day of loose and careless logic; and they whose lot is gravest must have the carefulest training to think aright. If these things are so, how foolish to ask what is the best education for one ...
by Socrativestor
Wed Feb 04, 2009 8:13 am
Forum: Investing - Theory, News & General
Topic: Judd Gregg's Finances, Investments & Taxes
Replies: 11
Views: 2562

Judd Gregg's Finances, Investments & Taxes

As a new cabinet designee in an awkward week, Mr. Gregg also offers another plus for the president: He said he was confident his taxes were in order. Mr. Gregg does hold a variety of stocks that, under Commerce Department ethics rules, will most likely have to be either sold or placed in a blind trust. Many were issued by banks that benefited from the bailout legislation (and whose political action committees were, coincidentally, among the many financial industry PACs that contributed more than $300,000 to his 2004 Senate re-election campaign, according to the Web site CQ MoneyLine). The Senate’s rules generally do not bar its members from holding stock in companies affected by legislation they draft or support. Mr. Gregg said many of the...
by Socrativestor
Wed Feb 04, 2009 7:54 am
Forum: Investing - Theory, News & General
Topic: Article: Retirement Dreams Deferred
Replies: 94
Views: 12776

What happens to a dream deferred?

Does it dry up
like a raisin in the sun?
Or fester like a sore—
And then run?
Does it stink like rotten meat?
Or crust and sugar over—
like a syrupy sweet?

Maybe it just sags
like a heavy load.

Or does it explode?

-- Langston Hughes, "Harlem", Montage of a Dream Deferred (1951)


Somehow it doesn't seem as menacing when you think of renegade wrinklies in Florida ("raisins in the sun"?) ... :lol:
by Socrativestor
Wed Feb 04, 2009 6:57 am
Forum: Investing - Theory, News & General
Topic: Markopolos's Testimony to Congress on Madoff and the SEC
Replies: 63
Views: 10794

"BM made a key error in how he presented his performance because he kept comparing himself to the S&P 500 stock index when his strategy purported to replicate the S&P 100 stock index. That signaled a startling lack of sophistication on his part since there was a noticeably large difference in price returns between the two indices. This lack of sophistication on BM's part was a recurring theme during the 9 year investigation." [pp 8-9] It would also seem to suggest a startling lack of sophistication on the part of those who invested with "BM" (gotta love the puerile pun!). Perhaps this is a case where "blaming the victims" might be appropriate in part, especially that part of the Jewish community whose e...
by Socrativestor
Tue Jan 27, 2009 10:12 pm
Forum: Personal Consumer Issues
Topic: Home network laser printer
Replies: 7
Views: 1762

stan1 wrote:I have had very good luck with my 5 year old Brother duplex (double sided) network laser printer. I have never had a jam that wasn't caused by my error, and toner replacement costs are not as bad as some.
Ditto
by Socrativestor
Mon Jan 26, 2009 6:39 am
Forum: Investing - Theory, News & General
Topic: The singular form of 'TIPS' is 'TIPS'
Replies: 23
Views: 4507

grayfox wrote:Well since the return is tied to inflation, they should have called them Treasury Inflation-Tied Securities.
Well, then the Vanguard fund ... ahem, holding them ... would have been called "Hooters" (VHTRX). :shock:
by Socrativestor
Sun Jan 25, 2009 10:59 am
Forum: Investing - Theory, News & General
Topic: The singular form of 'TIPS' is 'TIPS'
Replies: 23
Views: 4507

Re: The singular form of 'TIPS' is 'TIPS'

INDUBITABLY wrote:Treasury Inflation-Protected Securities

Sorry, I probably look like a jerk writing that, but it's really been bothering me lately.
Well, you're my kinda jerk!

Correct Plural? "Treasuries" vs "Treasurys"
by Socrativestor
Sat Jan 24, 2009 9:01 am
Forum: Investing - Theory, News & General
Topic: F&F on Global Correlations
Replies: 8
Views: 1697

Re: F&F on Global Correlations

stratton wrote:... dowmturn ...

Edit: eliminated the "evidence." :roll:
Ahem ... not quite ... :lol:
(But noce try.)
by Socrativestor
Fri Jan 23, 2009 7:16 am
Forum: Personal Consumer Issues
Topic: Online Coupon Codes
Replies: 15
Views: 5555

pretty straightforward: google <name of website / retailer> "coupon" / "code" / etc.

then review what comes up. sites like retailmenot (above) will list possible codes. in my experience if there is an active code available you will hit it. (though how would i know if i wasn't ... hmmmm)

i have started automatically getting in the habit: whenever i check out, open another browser window, look for the code and then complete checkout. i often happily surprise myself with 5-15% savings that i didn't expect.
by Socrativestor
Thu Jan 22, 2009 6:15 pm
Forum: Investing - Theory, News & General
Topic: John Thain's $87,000 Rug
Replies: 133
Views: 24081

At the risk of outing myself as some sort of elite pantywaist or something, it ain't a crapper. http://www.alhambraantiques.com/index.php?tpage=group&tgroupid=CC Touche! http://www.answers.com/commode n. A low cabinet or chest of drawers, often elaborately decorated and usually standing on legs or short feet. A movable stand or cupboard containing a washbowl. A chair enclosing a chamber pot. A toilet. A woman's ornate headdress, fashionable around 1700. [French, from commode, convenient, from Latin commodus. See commodious.] A commode is any of several pieces of furniture. The word commode comes from the French word for "convenient" or "suitable". Originally, in French furniture, a commode introduced about 1700 mean...
by Socrativestor
Thu Jan 22, 2009 8:16 am
Forum: Investing - Theory, News & General
Topic: F&F on Global Correlations
Replies: 8
Views: 1697

"dowmtown" ???

Kinda sounds like Petula Clark meets Ben Bernacke in the person of George W. Bush. Or perhaps I'm misunderestimoting you. :lol:
by Socrativestor
Tue Jan 20, 2009 5:59 am
Forum: Personal Investments
Topic: BRSIX vs. Vg Tax Managed Smallcap
Replies: 43
Views: 7064

Thanks for the conversation to date. Right now I'm leaning towards BRSIX with the thought that if I need to do some TLH I'll switch over to IWC. Norm FWIW, this is my situation -- have held BRSIX and been TLH'ing with IWC. From my research and following the board, etc. I can't tell if one is really superior to the other. It's a close call IMHO, which if true means can't go (more) wrong with one than the other. The thing that has tipped it slightly in BRSIX's favor IMHO is that microcap might be the one area where "passive-but-not-slavishly-indexed" might be a real advantage. (Also, I first got into BRSIX before IWC was available.) TLH'ing out of BRSIX is a little awkward now because of the 6 month redemption fee (though unfortuna...
by Socrativestor
Mon Jan 19, 2009 7:17 am
Forum: Personal Investments
Topic: Callan Periodic Tables Latest Edition: (1989-2008)
Replies: 27
Views: 5658

Re: It's good.

The purpose of the graphic is to show that there is no pattern to what fund classes do best and worst in a given year. In that sense, it is a perfectly good graphic, because magnitude of success is not the key attribute. What the reviewers you linked to missed was the idea of the unknowability of the future. Since you don't know what will perform best, why not hold everything? Also, the title periodic table is a bit of a joke, since the whole point of the graphic is that (unlike Chemistry's periodic table), there is no periodicity to the chart and you can't know anything about what will come next based on what you've already seen. Personally, I find the most illuminating aspect of the graphic this year (and you have to have seen last year'...
by Socrativestor
Sat Jan 17, 2009 6:16 pm
Forum: Investing - Theory, News & General
Topic: I'm wondering about Suzie Orman's advice about debt
Replies: 80
Views: 15347

"The function of the university is not simply to teach bread-winning, or to furnish teachers for the public schools, or to be a centre of polite society; it is, above all, to be the organ of that fine adjustment between real life and the growing knowledge of life, an adjustment which forms the secret of civilization.” “How foolish to ask what is the best education for one or seven or sixty million souls! Shall we teach them trades, or train them in liberal arts? Neither and both: teach the workers to work and the thinkers to think; make carpenters of carpenters, and philosophers of philosophers, and fops of fools. Nor can we pause here. We are training not isolated men but a living group of men, — nay, a group within a group. And the f...
by Socrativestor
Fri Jan 02, 2009 10:15 am
Forum: Investing - Theory, News & General
Topic: 2009 IRA contribution: Jan 1, DCA, or market time?
Replies: 29
Views: 5475

There are really two separate questions here: 1. Should I lump sum into my IRA as early as possible? 2. If so, should I invest the IRA contribution in equities as soon as possible? The answer to (1) is an unequivocal yes, provided the investor can comfortably afford to make the contribution. IRAs are a good deal because of their tax features, so you want to take advantage of these tax features as soon as you can, to provide the longest amount of tax-deferral possible. Question (2) is a market timing question, and the correct answer requires advanced knowledge of future market movements. Absent such prognosticative prowesses, the rational answer is that you should purchase equities as soon as possible if you believe that equities carry a po...
by Socrativestor
Fri Dec 19, 2008 7:40 am
Forum: Investing - Theory, News & General
Topic: FYI: New property tax break
Replies: 16
Views: 4369

Thanks, I didn't know about that extension. I double up by paying two years of property tax every other year and taking standard deduction in the other years. I was going to miss out on this bonus as 2008 is an "itemize" year for me. Now I can delay paying $1000 of my tax bill until 2009 and reduce 2009 taxes by $250. I do the same -- doubling up all controllable itemizable deductions every other year and taking the standard deduction in alternating years. Pay two years' health insurance premiums (and schedule as much health expenditure as possible), pay two years' property taxes, give two years' charitable contributions... Given my income level this usually means I can also convert some IRA to Roth in these high-deduction years....
by Socrativestor
Mon Dec 01, 2008 7:32 am
Forum: Investing - Theory, News & General
Topic: Free lunch: rule-of-thumb for varying equity exposure
Replies: 26
Views: 4531

Re: A fine strategy (cjking)

Henry Sadovsky's signature wrote:"What we can't say we can't say, and we can't whistle it either."
Frank P. Ramsey
The Musical Wittgenstein :!: (love it :D )

(Or is it Simon & Garfunkel ... "The Sound of Silence" ???

:roll:
by Socrativestor
Tue Nov 18, 2008 7:44 am
Forum: Personal Investments
Topic: Fidelity or TIAA-CREF?
Replies: 2
Views: 1418

1) TIAA-CREF offers two unique (and, IMHO, very desirable) investments that cannot be gotten anywhere else at any price: TIAA Traditional and TIAA Real Estate. 2) A person who has access to TIAA-CREF as a 403(b) also may open IRA/Roth accounts, regardless of whether they actually use TIAA-CREF for their 403(b), so your daughter can access Trad and RE by two different routes (and of course can do it by both). However, Trad pays a higher rate and has more restrictions if accessed via the 403(b). 3) IMHO, the CREF mutual funds are nothing to get excited about. I'd rather have Vanguard or Fidelity Spartan. So ... 4) I'd suggest your daughter making an AA to see if she wants to include Trad and/or RE and if so at what levels. Then she can figure...
by Socrativestor
Sun Nov 02, 2008 3:34 pm
Forum: Investing - Theory, News & General
Topic: Phantom income with TIPS Mutual Funds?
Replies: 26
Views: 4687

Re: Phantom income with TIPS Mutual Funds?

nonnie wrote:
Mel Lindauer wrote: That's exactly the point, Nonnie. You get a 1099 and owe taxes annually, even though you don't actually get the interest until maturity on the longer-term CDs.

Regards,

Mel
Thanks for your response, Mel but I'm still not clear. I own 6 month CDs that will mature in February of 2009. Based on my reading, since they are under 1 year, I will NOT get a 1099 for accrued interest this year. Is that correct?
That would be my understanding too. (Sorry but no citations.) In fact I believe there are strategies that take advantage of this fact to defer current year income to next year, which can be helpful in certain cases (e.g. lower tax bracket next year).
by Socrativestor
Sun Nov 02, 2008 9:27 am
Forum: Investing - Theory, News & General
Topic: Bogle quote in Fortune magazine
Replies: 91
Views: 15317

Link to Fortune article (which is pretty good BTW):
Is buy-and-hold dead and gone?
by Socrativestor
Mon Oct 13, 2008 7:25 am
Forum: Investing - Theory, News & General
Topic: Parody: Ira Artman's Airy Mantra: Henry & Ben Are On
Replies: 4
Views: 1551

Re: Parody: Ira Artman's Airy Mantra: Henry & Ben Are On

Vegomatic wrote:Wish me luck, I will need it.
Good luck!

Sorry to hear about your predicament but glad to see you are rising to the occasion.

FWIW, if the quality of your contributions to the forums is any indication of the quality of your work, you should have no trouble finding a new position. (Or maybe you should just start a newsletter ... :shock: )
by Socrativestor
Mon Oct 13, 2008 7:13 am
Forum: Investing - Theory, News & General
Topic: "The science of frozen liquidity"
Replies: 3
Views: 1203

larryswedroe wrote:That is the problem with liquidity crisis and why they are so dangerous. What is good/smart for any one investor to do is disastrous for all to do. So you hang together or hand separately if you will.
Prisoners' Dilemma
by Socrativestor
Fri Oct 10, 2008 7:28 pm
Forum: Investing - Theory, News & General
Topic: A few thoughts...
Replies: 5
Views: 2212

Re: A few thoughts...

wab wrote:
gbs wrote:4. Prepare a list of tax swaps that you are comfortable with and be prepared to remain in the alternative funds/etf for the long run.
Such a list would be a great resource for the library. ;)
You might want to look at Eric Haas's analysis of the various options for the major asset classes:
http://www.altruistfa.com/dfavanguard.htm
(check the links the in the "Analyisis" column)
by Socrativestor
Mon Oct 06, 2008 8:38 am
Forum: Personal Investments
Topic: GWX vs. DLS in a 401K
Replies: 9
Views: 2172

tfb wrote:I use GWX for more diversification and (perceived) more experienced sponsor.
ditto
by Socrativestor
Tue Sep 23, 2008 2:00 pm
Forum: Investing - Theory, News & General
Topic: Why should taxpayers be on the hook at all?
Replies: 50
Views: 9881

What Are the Other Bailout Options? An Explainer http://economix.blogs.nytimes.com/2008/09/23/what-are-the-other-bailout-options-an-explainer/ Treasury Secretary Henry M. Paulson Jr. has emphasized the urgency of his bailout plan by warning that inaction would be disastrous. But are there other options besides total inaction on the one hand, and Mr. Paulson’s $700 billion bailout on the other hand? Let’s start with the fundamental problem that the bailout is trying to solve. To function, Wall Street firms cannot have too much debt relative to their underlying assets. If they do, other banks won’t do business with them – much as your local bank won’t give you a $100,000 loan unless you have some collateral behind it. In recent years, banks ...
by Socrativestor
Tue Sep 23, 2008 7:00 am
Forum: Investing - Theory, News & General
Topic: Without our Consent Hinky Dinky Parlez Vous?
Replies: 8
Views: 2317

Time: How We Became the United States of France http://www.time.com/time/nation/article/0,8599,1843168,00.html This is the state of our great republic: We've nationalized the financial system, taking control from Wall Street bankers we no longer trust. We're about to quasi-nationalize the Detroit auto companies via massive loans because they're a source of American pride, and too many jobs — and votes — are at stake. Our Social Security system is going broke as we head for a future in which too many retirees will be supported by too few workers. How long before we have national health care? Put it all together, and the America that emerges is a cartoonish version of the country most despised by red-meat red-state patriots: France. Only wit...
by Socrativestor
Mon Sep 22, 2008 7:53 am
Forum: Investing - Theory, News & General
Topic: El Erian: Capturing Risk Premiums
Replies: 10
Views: 9306

Chinwhisker wrote:Hi Robert,
I set up what I call an Endowment Imitator portfolio over on that old forum at M*;
http://socialize.morningstar.c....61333.aspx
I’d welcome any constructive criticism you might have;
http://socialize.morningstar.c....864A29934C
TIA, but don’t concern if you don’t care to visit that forum; I’ll understand.
Chin
_________________
They think they know but don't. At least I know I don't know. (Socrates)
Great signatutre quote, Chin! :lol:
by Socrativestor
Sat Sep 20, 2008 6:34 am
Forum: Investing - Theory, News & General
Topic: Treasury Now to Guarantee Money Market Funds
Replies: 26
Views: 5695

NYT's Joe Nocera http://www.nytimes.com/2008/09/20/business/20nocera.html?8dpc The precipitating event here was the news that the Reserve Fund, a money market fund that caters to institutions, had “broken the buck” and was paying investors 97 cents on the dollar. That is only the second time that’s ever happened, and it had to scare investors, because most of us have come to think of money market funds as being the equivalent of bank savings account — perfectly safe. In the aftermath, investors in the various Reserve money market funds pulled $58 billion out in the space of a week, leaving the firm with only $7.1 billion. If that same fear had spread across other money funds, it could well have led the funds to stop accepting short-term com...
by Socrativestor
Sat Sep 20, 2008 6:28 am
Forum: Investing - Theory, News & General
Topic: SEC 2004 exemption allowed leverage upto 30 or even 40 to 1
Replies: 32
Views: 6921

NYT's Joe Nocera http://www.nytimes.com/2008/09/20/business/20nocera.html?8dpc The S.E.C. jihad against short sellers, which includes the banning of short selling on 799 stocks and forcing disclosure of large short positions, is nothing more than playing to the crowd. It is simply appalling that as one firm after another vaporizes — firms, let’s remember, that the S.E.C. was supposed to be regulating — the only thing the agency can think to do is flog the shorts. There were so many better moves it could have made. After Bear Stearns fell, it could have sent SWAT teams into all the other financial firms to assess their mortgage-backed paper. It could have then announced to the world the health of each firm, which would have helped the market...
by Socrativestor
Tue Sep 16, 2008 7:24 am
Forum: Investing - Theory, News & General
Topic: Some details from the Lehman bankruptcy filing
Replies: 7
Views: 2210

Isn't $639 billion (assets) more than $613 billion (debt)? Kinda suggests the assets are not worth their stated amount. You have succinctly summarized the whole banking crisis in two sentences. Kudos to you, Richard. NYT: On Wall St. as on Main St., a Problem of Denial The financial giants’ downfall has been refusing to see that their investments were worth less than estimated. http://www.nytimes.com/2008/09/16/business/16nocera.html?hp ... after you get past the mind-numbing complexity of the derivatives that are at the heart of the current crisis, what’s going on is something we are all familiar with: denial. Indeed, it is not all that different from what is going on in neighborhoods all over the country. Just as homeowners took out big ...
by Socrativestor
Tue Sep 16, 2008 7:15 am
Forum: Investing - Theory, News & General
Topic: Lehman's employees: why did they hold on?
Replies: 27
Views: 6564

grumel wrote:Maybe most of these people were simply clueless about asset alocation and private investing in general. If the majority wouldnt be clueless there would be no group pressure to hold stocks in the first place. Maybe group pressure is an explanation why a minority that knew better didnt do anything. But its no explanation why this stupid social norm started in the first place.
Hear! Hear!
by Socrativestor
Thu Aug 28, 2008 11:32 pm
Forum: Investing - Theory, News & General
Topic: International Real Estate a hot topic anymore???
Replies: 35
Views: 6267

stratton wrote:Thanks for finding this!

Image

I don't like DRW because it has ~60% tied up in the top two countries.

I'd probably want to break them down by Europe, Asia etc. The other ones might be tilted to one continent too much for my tastes.

Paul
but what % of assets in each is true REITs and how much REOCs?? i.e. what proportion is truly distinct asset class vs equity sector? my sense is that true REIT components are relatively small growing as more intl REITs come into existence. i.e. intl REIT may not yet be an investable asset class, regardless of existence of supposed vehicles ...
by Socrativestor
Thu Jul 17, 2008 7:24 am
Forum: Forum Issues and Administration
Topic: FatWallet thread about our forum
Replies: 29
Views: 9535

It's strange though ... I find diehards a good place to learn, and the mentality a bit against the grain considering how many "random john/jane's" are out there just blindly throwing money into a hodgepodge of active funds... but, because of the financially conservative attitude apparent (though honestly not in all members), I'm always mindful that it is probably a very poor place to get advice, or learn about, contrarian indicators/ideas . Indeed, a typical response to most doubts raised about investing, or the EMT = "stay the course, stay the course." Of course, the numbers favor the bogleheads approach , but I think *some* of the members miss the forest for the trees and the OP should keep a healthy skepticism about ...
by Socrativestor
Tue Jul 15, 2008 11:08 pm
Forum: Investing - Theory, News & General
Topic: Margin Account Dangers Today
Replies: 27
Views: 11798

I found this information disquieting, especially since it conflicts with what has been my long-standing understanding: that customer assets are simply insured up to some limit that I'm under -- a la FDIC of bank accounts.

I did some googling and came up with the following:
http://www.willkie.com/files/tbl_s29Pub ... Issues.pdf
Perhaps someone can confirm/clarify what's going on here.

Thanks. :shock: :shock: :shock:
by Socrativestor
Sat Jun 28, 2008 4:10 pm
Forum: Investing - Theory, News & General
Topic: Gift of more than $12,000
Replies: 17
Views: 4487

Loan the person $48,000 and forgive $12,000 per year for 4 years.

Actually, it's probably a little more complicated because you need to charge and foregive reasonable interest as well.

So:

1) gift $12,000 immediately
2) loan $36,000 @ 5% simple annual interest (say)
3) forgive $10,000 principal + accrued interest each subsequent year until loan is paid off.

If you die before it's paid off, the person has a debt to your estate. You can amend your will to forgive this debt (or perhaps your executor is empowered to forgive debts at his/her discretion).

Just a thought ...
by Socrativestor
Fri Jun 27, 2008 7:36 am
Forum: Investing - Theory, News & General
Topic: WSJ: New Long/Short CCF Fund (DXCTX)
Replies: 0
Views: 862

WSJ: New Long/Short CCF Fund (DXCTX)

As oil prices heat up and stock prices stagnate, more investors are interested in jumping on the speculation bandwagon. Direxion Funds of Newton, Mass., is capitalizing on that trend with Commodity Trends Strategy Fund, which was started June 10 under ticker DXCTX. The open-ended commodity mutual fund is benchmarked and pegged to the Standard & Poor's Commodity Trends Indicator. The fund actually holds commodity futures, unlike other mutual funds that invest in corporate stocks exposed to the commodities market. The upshot is greater rewards, because stocks don't reap the same benefits as futures in price moves. The fund is also the first to offer a single product delivering both long and short exposure to commodities markets, accordin...
by Socrativestor
Wed Jun 25, 2008 8:08 am
Forum: Investing - Theory, News & General
Topic: VTI Split...any others?
Replies: 22
Views: 5430

I use Quicken to track my portfolio and download information from Vanguard. When the split took place, Quicken downloaded the split and then doubled my holding, including the fractional shares. That's how I noticed that only the whole shares were doubled at Vanguard; there was a discrepancy. A few days ago, Quicken downloaded the small payment for the non-doubled fractional shares and had the payment characterized as a "dividend". In any case, based on the earlier posts here and my own intuition, I simply recharacterized the "dividend" to a "sale" of the proper number of fractional shares and planned to report the sale on Schedule D next year. Quicken now shows the proper holding and income. (I use specific ID ...
by Socrativestor
Sun Jun 22, 2008 7:11 am
Forum: Investing - Theory, News & General
Topic: VTI Split...any others?
Replies: 22
Views: 5430

Can someone tell me how fractional shares are (supposed to be) treated? Are they split or ignored or what?

I would assume they are split of course. But my VBS account seems to have only split the whole shares.

TIA.
by Socrativestor
Sat May 31, 2008 7:42 am
Forum: Investing - Theory, News & General
Topic: Non-tradable timber REIT: debt/equity ratio of 39.1?
Replies: 31
Views: 12532

Speaking of widespread ignorance among financial experts, I just came across a new Motley Fool article perpetuating the myth of pureplay "timber REITs." (The forum won't allow me to post the link but you can find it by searching "Finding the Perfect Dividend Stock" in Google News.) The following quote is a false statement, though I'd guess few, if any, readers noticed: "Unlike other REITs, those investing in timber derive most of their income from the harvest of timberlands, which are treated as a long-term capital gain and not regular income." Plum Creak is almost all return of capital for their dividends. Thats one of the tax advantages of timber. http://www.plumcreek.com/invest/dividends/tax_treatment.php P...
by Socrativestor
Fri May 30, 2008 11:00 am
Forum: Investing - Theory, News & General
Topic: Timberland Investment Blog
Replies: 8
Views: 3597

Thanks for the link and posts. Very interesting.

I have a 2.5% allocation to PCL as "Timber" in addition to

7.5% REITS
5.0% TIAA Real Estate Account
2.5% VGENX (Energy)
2.5% VGPMX (Metals & Mining)
10% PCRIX (CCFs)

as my 30% "Hard/Real Asset" allocation in addition to 50% stock (25% US, 25% Intl) and 20% bond.

Glad to see my choice of PCL re-affirmed.
by Socrativestor
Fri May 30, 2008 10:52 am
Forum: Investing - Theory, News & General
Topic: Non-tradable timber REIT: debt/equity ratio of 39.1?
Replies: 31
Views: 12532

has this article been published yet? i'd like to read it! :lol:
by Socrativestor
Fri May 30, 2008 10:45 am
Forum: Investing - Theory, News & General
Topic: Claymore/Clear Global Timber Index ETF (CUT) trading today
Replies: 18
Views: 5416

Re: Correlation with REITs

mpt follower wrote:I wonder what is the correlation of timber with real estate. With the real estate mess it may not be a good idea to invest in timber now, but I do not know. Comments? Erwin
The / an answer appears in Figure 3 of http://www.forestresearchgroup.com/V4No2.pdf:
-0.3 for commercial real estate (*not* residential real estate) from 1987-2006. According to that chart, this is only asset class that is actually negatively-correlated with timberland.

Figures 4 and 5 break that time period in half:
1) 1987-1996: correlation -0.4
2) 1997-2006: correlation +.75
(In this latter period, bonds were negatively-correlated with timber.)
by Socrativestor
Mon May 19, 2008 8:49 pm
Forum: Investing - Theory, News & General
Topic: Commodity Research - Your Contributions Requested
Replies: 10
Views: 2527

A Rediscovered Asset Class: Commodity Futures by raddr. also the BB at his site has many good threads. it's sort of the CCF hot spot on the net, IMHO.
by Socrativestor
Wed May 14, 2008 9:06 am
Forum: Investing - Theory, News & General
Topic: Vanguard Annuity
Replies: 32
Views: 7721

VAs *can* make sense IMHO, but it does depend on individual circumstances. Beyond current and future tax brackets, need to consider size of portfolio, whether not using VA would generate income that would push you into higher tax bracket, reduce size of income-based tax facts (e.g. medical deductions, Roth eligibility, Roth conversion attractiveness, etc). Also don't forget you that get a lifetime of tax-free rebalancing.

But the real bottom line IMHO is whether your AA calls for tax-inefficient asset classes that you cannot plausibly hold elsewhere. This is primarily REITs. IMHO, I would not let the tax-tail wag to AA-dog. If you want REITs and need a VA to do it, then do it.