Search found 283 matches

by Occupier
Fri Mar 23, 2012 4:41 pm
Forum: Personal Investments
Topic: Portfolio Review
Replies: 6
Views: 770

Re: Portfolio Review

Yes, yes, and yes. I don't know what kind of capital gains you might be looking at. You can transfer all securities to Vanguard. You can not transfer mutual funds. A person your age wants to have a couple of months more in an Emergency Fund. Maybe just a month more if your job is really secure. A typical Boglehead portfolio for someone your age might be 30% fixed income. 40% Domestic and 30% international. Then maybe you tilt a bit to small value and/or International small. By market cap roughly 70% large, 20% mid cap, 10% small cap. That is about what you can get from two funds. Vanguard Total stock market and Total International. So if you add an additional 10% to Vanguard small value or add 10% small international that is a 100% overweig...
by Occupier
Thu Mar 22, 2012 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Bankruptcy Or Reduction In Amount Owed?
Replies: 5
Views: 562

Re: Bankruptcy Or Reduction In Amount Owed?

There are lot's of good Bankruptcy attorney's in Vegas. I am a member of the same bar ass'n. The poultry business is probably within the states generous exemptions and even if not, he can buy the trustee's share back over an 18 month period. Everything else you mentioned appears to be within the states exemption law. The 20% discount offer to a insolvent debtor is a joke. (Why doesn't he ask if they will take a check.) The whole idea of a bankruptcy code is to end this kind of case. $1200 bucks for a bankruptcy and it's over. Dave
by Occupier
Wed Mar 21, 2012 11:41 am
Forum: Personal Investments
Topic: Taxable investing
Replies: 5
Views: 1123

Re: Taxable investing

The STAR fund is about 20% Large Cap International which amounts all of $300 in your case. So I would go International in the tax free. Its common for Bogleheads to have between 25% up to 50% of equities invested abroad. As the previous poster advised you should invest in taxable only after you have exhausted tax free possibilities. I don't know a lot about Schwab funds except that their ETF's are similar to Vanguard or Ishares. Commissions used to be a barrier to ETF investing. As long you don't have to pay commissions, go the ETF route. Their expense ratios are cheaper. Generally you want assets whose earnings have more yield like bonds, in tax free. Lower yielding equities go in taxable, as does international (due to the foreign tax cred...
by Occupier
Tue Mar 20, 2012 8:29 pm
Forum: Personal Investments
Topic: Investment Check-up and Roth IRA question
Replies: 4
Views: 522

Re: Investment Check-up and Roth IRA question

If you add small international, put it in taxable so you don't wast the foreign tax credit. Eventually your tax free gets crowded and you have to make compromises. we all do. For example, I decided to do without an overweight in REIT. It's in the index funds but limited to it's market cap. Dave
by Occupier
Tue Mar 20, 2012 8:22 pm
Forum: Personal Investments
Topic: Help Balancing portfolio
Replies: 2
Views: 344

Re: Help Balancing portfolio

I don't know what all the alphabet soup is. Reading The Bogleheads Guide to investing isn't a bad place to start, Barns and Noble have it on the shelves, and there are some sample portfolios in our WIKI. You don't need two large blend funds. Most here use VTI for US and for international VXUS. Generally you want assets that spin off a lot of income or non qualified dividends in tax free. IE bonds and REIT. Your young enough that you want to tilt a bit to more volatile small stocks. In the US I always recommend VBR for the US, and VSS for small caps outside the US. You did not give us a lot of information but if you have a low cost intermediate bond option in the 401, grab it, and then your taxable is a combination of the 4 funds I mentioned...
by Occupier
Sun Mar 18, 2012 4:03 pm
Forum: Investing - Theory, News & General
Topic: Sam Zell
Replies: 14
Views: 2138

Re: Sam Zell

Real estate is not my forte. But over the years I developed an enormous respect for Zell. When he announced he was liquidating a number of his properties, I got out of REITS. They took a big tumble after that. Dave
by Occupier
Fri Mar 16, 2012 10:31 am
Forum: Personal Investments
Topic: Small cap percentage?
Replies: 21
Views: 3372

Re: Small cap percentage?

I hold zero. I use the Total Stock and Total International for the main equity funds. My only carve out,,, At some recent point the composition of Total International has changed. If you go over to the Morningstar site and look, you will see that small caps now are only about 4.5% of Total International. I suspect that the fund has become so large that they have a liquidity problem which prevents them from market weighting smaller stocks. What that means is that the total fund now underweights small cap stocks by about 50%. About a decade ago at the old board, there were endless debates between people who tilt, then called slicers and dicers, and the total market folks. The debates were informative, but no one really ended up being proven ...
by Occupier
Thu Mar 15, 2012 8:42 pm
Forum: Personal Investments
Topic: Small cap percentage?
Replies: 21
Views: 3372

Re: Small cap percentage?

As folks have said, by market cap, small stocks are about 10% of the market. It depends where you draw the line. So having 20% small is about a double weight. Based on what people say, many here have a weight of 25% to small - few have more. For a younger person I don't consider 25% too high. But it might be too high for a retired person. 25% was a recommended weight in the early Swedroe books. Dave
by Occupier
Thu Mar 15, 2012 5:27 pm
Forum: Investing - Theory, News & General
Topic: Another investment meant to be sold and not bought
Replies: 12
Views: 2265

Re: Another investment meant to be sold and not bought

I am thinking this is something Goldman Sachs is pushing to their clients. Tongue in cheek and laughing out loud. Dave
by Occupier
Mon Mar 12, 2012 1:55 pm
Forum: Investing - Theory, News & General
Topic: World's worst stock market losses.
Replies: 41
Views: 7366

Re: World's worst stock market losses.

Fascinating. I am sorry they did not show Argentina. In 1920 by market cap it had the 6th largest stock market in the world. It went down to close to 0. But that kind of thing could never happen here.....Dave
by Occupier
Sun Mar 11, 2012 3:09 pm
Forum: Personal Investments
Topic: Help with portfolio please.
Replies: 47
Views: 4658

Re: Help with portfolio please.

If you substitute total bond for the Target Retirement or switch to a target retirement that is shorter, like 2020, you could increase the bond amounts in tax free to get to your desired allocation of 40%. I don't have a problem with your being risk adverse, nor with the three or so funds you want to limit yourself to, but over a 20 year horizon it may cost you something for the peace of mind. Let me give you some perspective on your desire to have $4 million. From memory, there are 12 million millionaires in the USA. There are only about 4.5 million people with 2 million and the number of people who have more than that diminish rapidly. Unless your expecting a big windfall, I don't think your going to make $4m, nor do you need to. You can ...
by Occupier
Fri Mar 09, 2012 9:48 am
Forum: Personal Investments
Topic: Bond Funds
Replies: 6
Views: 1253

Re: Bond Funds

Just to give you some perspective. There has not been a state general obligation bond default since Arkansas in the Dust Bowl era. Most defaults consist of revenue bonds from ill considered projects - Las Vegas monorail, that kind of thing. I second Taylor's advice. If you have a tax free account you can always hold taxable bonds there, and count them as a part of the 50% "out of state." Dave
by Occupier
Wed Feb 29, 2012 7:32 pm
Forum: Non-US Investing
Topic: Lyxor ETF S&P 500 (LSE)
Replies: 3
Views: 622

Re: Lyxor ETF S&P 500 (LSE)

We don't know what your abbreviations mean. GBP - going broke perhaps? Dave
by Occupier
Wed Feb 29, 2012 7:13 pm
Forum: Personal Finance (Not Investing)
Topic: Las Vegas baby!
Replies: 11
Views: 2057

Re: Las Vegas baby!

You can get a house there fairly cheap. It's the foreclosure capital of the US. If you don't mind a hot summer, DO IT. Dave
by Occupier
Mon Feb 27, 2012 9:21 pm
Forum: Personal Finance (Not Investing)
Topic: credit rating issue and idea to minimize downgradeing
Replies: 10
Views: 1157

Re: credit rating issue and idea to minimize downgradeing

I am a Bankruptcy lawyer. The consumer bankruptcy law is designed to work for folks like you who have not really made a mistake in life, but are swept up in debt you can't pay anyway. You don't want to do a lot of transfers before filing. I have had clients come in the door who have done that, and my advice is always the same. Get those things back, and come talk to me. I don't know what state your in. State law generally controls what you can take through a bankruptcy and keep. Most likely it's everything you have including the vehicle and boat, i.e. only the debt will go away. You can find a bankruptcy lawyer in your state by going to the referral section of their trade association www.nacba.org If you just don't want to talk to a bankrup...
by Occupier
Sat Feb 25, 2012 1:34 pm
Forum: Investing - Theory, News & General
Topic: second part: rapid growth of dividend strategy
Replies: 50
Views: 4417

Re: second part: rapid growth of dividend strategy

A year ago I responded to an article over at Morningstar that said basically, "every study supports a dividend strategy." I said size and value better explains returns. Boy did I get flamed. So thanks for bailing me out. I will observe that for people who just can't resist some kind of superficial strategy - Harry Browne, Dogs of the Dow, you name it, a dividend strategy is likely to be the least harmful. Dave
by Occupier
Wed Feb 22, 2012 8:18 am
Forum: Personal Finance (Not Investing)
Topic: Realtor or attorney?
Replies: 24
Views: 2541

Re: Realtor or attorney?

Chris's advice is correct as long as the seller has some sophistication. In Nevada, you and the buyer would just go to a title company and fill out there instructions form. In those states that close at a lawyers office, find one that does the work. I am not down on real estate agents, but you pay them that 6% to find a buyer, you already have that so it's money wasted. Dave
by Occupier
Mon Feb 20, 2012 8:23 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Default Experiences
Replies: 18
Views: 2124

Re: Mortgage Default Experiences

Florida is a bad state to default in. The lender has to do a judicial foreclosure. That is the kind of one were they can go after you for a deficiency. But doing a judicial foreclosure is much more expensive and time consuming for the lender which makes a short sale desirable to them. Most deficiency judgments go unpaid anyway. You never want to lie to a lender. If for example, it is a federally insured bank and you give them a false financial statement, that is a federal crime. You either speak accurately or not at all. I am not trying to scare you, just give you good advice. That being said, you can rearrange your relatively small assets so that when you do speak truthfully to them, you show your not a person who they can collect from. So...
by Occupier
Mon Feb 20, 2012 5:04 pm
Forum: Personal Investments
Topic: Mid-30s, max'd investments, leftover $, next?
Replies: 18
Views: 2233

Re: Mid-30s, max'd investments, leftover $, next?

I prefer Vanguard, but the new Schwab low cost indexed ETF's are good too. I dont like the funds in your 401. It's like you grabbed a new fund every year and now you have a mis-mash of mostly high cost, mediocre funds. You can trade out of them with out paying gains taxes. But you don't list alternatives available to you. You want tax inefficient assets in tax free, tax efficient assets in taxable. In order of tax efficiency lowest to highest; taxable bonds, REIT, Small Value, Small, Large Blend, International (because of the foreign tax credit.) That information tells you what to look for. Bonds and REIT and Small Value in tax free, and Large Blend and International in taxable. Maybe small as well. As you invest more in taxable, in order t...
by Occupier
Mon Feb 20, 2012 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Default Experiences
Replies: 18
Views: 2124

Re: Mortgage Default Experiences

I am a lifetime bankruptcy lawyer. In your jurisdiction people like me are the ones with expertise in the area your considering entering. In most states if you stop paying, the lender takes back the house and that is the end of it. But you did not say where you live. So I don't know if your in that kind of state. Also because lenders are now really familiar with people in your circumstance, they are more realistic than ever about approving short sales. A short sale is a device that is less damaging to your credit. You list the property for sale at it's current market price. You need a real estate agent experienced in short sales. As a part of earning their commission they have to talk the lender into accepting the sale to the buyer they fin...
by Occupier
Mon Feb 20, 2012 3:22 pm
Forum: Personal Investments
Topic: Need advice
Replies: 12
Views: 992

Re: Need advice

Personally I read enough investing books - Bogle, Swedroe, Bernstein and Ferri, that I felt comfortable enough to decide on my own how to invest, and I have never turned back. And I don't loose sleep. So that is what I suggest you do. Go to the library and get in this order, 1) Bogle, Common Sense on Mutual Funds, then 2) Swedroe, The Only Investment Guide You Will Ever Need. Published about 2000. 3) Bernstein, the Intelligent Asset Allocator 4) Ferri All About Asset Allocation. If your really a beginner read the latest edition you can find of A Random Walk Down Wall Street first. I may be a word or two off on the titles, but you will find them. When your done you will know more than your advisers. You will most likely will then set up a po...
by Occupier
Mon Feb 20, 2012 2:42 pm
Forum: Personal Investments
Topic: Have REITs Lost Their Diversification Benefits?
Replies: 28
Views: 3652

Re: Have REITs Lost Their Diversification Benefits?

I changed my allocation to eliminate REITS when Zell liquidated. That was about 2006. I missed the decline, but also missed the recovery. I upped small value and some other things especially Utilities. So I agree with the statement that REITS don't diversify at present the way they have for most of their history. I have not researched the actual figures, but here is some off the top of my head figures that I think are correct. When I first got into REITS they were decidedly out of fashion. They had a book value that was below the value of their holdings. Now the book value is about twice the value of the real estate they own. That is an important figure. If the current REIT sells stock, and then goes out and buys a building with the proceed...
by Occupier
Sun Feb 12, 2012 10:02 am
Forum: Personal Investments
Topic: Portfolio Advice for Young Couple
Replies: 10
Views: 1534

Re: Portfolio Advice for Young Couple

I am thinking you learned a lot from this site and don't need that much coaching. I look at the costs in the 401 first, and see that the small cap fund is one of the lowest cost options, as is the 500 index. So I would get them, and try to use lower cost funds elsewhere instead of the higher cost funds. Then I note at your income level your most likely going to have a taxable account before long. So maybe you don't have to get to an ideal allocation right away. If your saving for a house. You don't want anything riskier than limited term bonds 2-3 years duration or less. You can count these as bonds and adjust later when you buy the house. Regarding the REIT funds, my preference is to hold the Vanguard Small Value Fund or ETF rather than RE...
by Occupier
Thu Feb 09, 2012 6:59 pm
Forum: Personal Finance (Not Investing)
Topic: Portfolio Mortgage loan modification offer??
Replies: 2
Views: 602

Re: Portfolio Mortgage loan modification offer??

Did the offer come from Nigeria? With interest it's like 30 months to break even. The bank does not have to record anything, they just reset the loan in their computer. So the $2000 is pure profit. They are charging about as much as a refinance. I would at least go to an online mortgage site and see what they offer as an alternative. Try www.farmbureaubank.com if you don't know a better one online. I am not saying don't take it. I am saying you could take a day or two to see what the alternatives are. Dave
by Occupier
Thu Feb 09, 2012 6:45 pm
Forum: Investing - Theory, News & General
Topic: Dividend stocks are not bonds.
Replies: 21
Views: 3029

Re: Dividend stocks are not bonds.

I agree stocks are not bonds. But I like having the utility ETF XLU. If I had short term treasuries, I would have to go back to work. I will let the kids worry about whether the stocks in it go up or down. The 4% yield is for me. Dave
by Occupier
Thu Feb 09, 2012 3:47 am
Forum: Personal Investments
Topic: Restless to change my AA and other things
Replies: 6
Views: 972

Re: Restless to change my AA and other things

I feel your pain regarding tax free returns. You should not look at holding bonds for their return but because they preserve capital in a declining market. So even at pathetically low interest rates there is still a reason to have some. Just to illustrate, if the stock market declines by say 50% (look at August 2008 to March 2009 as an example) having say 50% in bonds will reduce the loss. I think your too restless. The major change in allocation in the last year is not the kind of change you want to make often. Calls of that size only have to be wrong a couple of times to cost you a lot of loss, and most of us are wrong about market moves as often as we are right. The best way is to get to an allocation that you feel comfortable with and s...
by Occupier
Thu Feb 09, 2012 3:07 am
Forum: Investing - Theory, News & General
Topic: A few questions about Commodity/REIT allocation
Replies: 5
Views: 664

Re: A few questions about Commodity/REIT allocation

Yes REITS are a part of your equity allocation. As you most likely know REITS have a special tax status as long as they pay out a large percentage of their net income as dividends they are not subject to Federal income taxation. They have a low correlation with other equities. As a result they provide the benefit of diversification. REITS generally account for about 2% of the total US stock market by market cap. So a 5 to 10% allocation to them is a significant overweight. They belong in a tax free account because their dividends are mostly taxed as income. I used to have a fairly high allocation to REITS, but I got rid of them in about 2007 except for the amounts in small value funds. I decided to do this after a major REIT run by Mr. Zell...
by Occupier
Wed Feb 08, 2012 6:13 am
Forum: Personal Investments
Topic: 401K Choice Guidance Requested
Replies: 4
Views: 874

Re: 401K Choice Guidance Requested

Yikes, the costs of all the equity funds in the 401 are awful. There is an article on the wiki this site about how to talk to your HR people about lousy 401 selections. The extra 1.2% a year adds up to big bucks over 20 years. Costs are one of the few things an investor can control. I would be tempted to have the lower cost bond funds in the 401 plus the 500 index fund and switch the Roth to something like vanguard world which is a low cost equity fund. I don't think you can get to a cost reasonable split with much international. For the same reason I don't think the JPM fund is that smart. Dave
by Occupier
Wed Feb 08, 2012 5:50 am
Forum: Personal Investments
Topic: Man in the Browser Malware defeats 2-step bank authent
Replies: 27
Views: 3432

Re: Man in the Browser Malware defeats 2-step bank authent

This is why I have several computers. One is never used for anything other than going to the bank. I has never opened an e-mail. Dave
by Occupier
Thu Feb 02, 2012 6:58 pm
Forum: Personal Investments
Topic: Looking for High Quality (AA) Corporate Bond Fund/ETF
Replies: 7
Views: 2317

Re: Looking for High Quality (AA) Corporate Bond Fund/ETF

I like the Vanguard Investment Grade funds. Intermediate term is about what you might want. It does not exactly fit your description because it's about 20% Treasury/Agency but it is close. There is a Vanguard corporate ETF, VCIT and I shares has one, LQD but both have a lot of bonds rated in the b's. Dave
by Occupier
Thu Feb 02, 2012 8:09 am
Forum: Investing - Theory, News & General
Topic: Thinking about the Facebook IPO
Replies: 3
Views: 511

Re: Thinking about the Facebook IPO

Yup. It's is interesting to watch the Facebook hype. It really shows one how much of news reported as fact is based on press releases. Dave
by Occupier
Thu Feb 02, 2012 12:02 am
Forum: Personal Investments
Topic: Question about adding NAESX
Replies: 15
Views: 1715

Re: Question about adding NAESX

Per the early Swedroe books, small growth is the worst performing asset class of em all. So you might be better served adding small value. Can you hold VBR in your account? It also has a overweight in REIT. Swedroe explains small growth's poor performance as being due to stocks in that class getting bid up to unrealistic values by folks hoping to own the next Microsoft. Note in the last couple of years small growth has outperformed small value. So you don't have to take Swedroe's pronouncement as gospel. NAESX is a good index fund. But I agree with Swedroe. Dave