Search found 57 matches

by Always passive
Tue Jun 27, 2017 2:09 pm
Forum: Investing - Help with Personal Investments
Topic: Is the use of hedge funds an issue for preservation of capital goal
Replies: 6
Views: 202

Re: Is the use of hedge funds an issue for preservation of capital goal

Hedge funds are more a group of investment structures (generally bad, on average much too expensive, frequently creating agency problems and poor incentives, generally having restrictions on liquidity, less transparency) rather than anything else, so it's unclear. If you told me that your friend wa...
by Always passive
Tue Jun 27, 2017 1:20 pm
Forum: Investing - Help with Personal Investments
Topic: Is the use of hedge funds an issue for preservation of capital goal
Replies: 6
Views: 202

Is the use of hedge funds an issue for preservation of capital goal

My friend who is retiring next week got a proposal from an advisor that includes about 10% in two hedge funds. My friend's goal has been capital preservation. My question is whatever the advisor would be liable for the hedge funds' performance in case they go under like some have done.
by Always passive
Tue Jun 27, 2017 6:02 am
Forum: Investing - Theory, News & General
Topic: Illinois: A slow swimming black swan?
Replies: 26
Views: 3324

Re: Illinois: A slow swimming black swan?

If by total bond fund you mean the Vanguard Total Bond Market Index, or equivalent, then this index does not include municipal bonds, so I do not see a major impact, unless the market gets scare. If you refer to a municipal bond fund index, then the value of that index most likely will fall in price...
by Always passive
Sat Jun 24, 2017 7:37 am
Forum: Investing - Theory, News & General
Topic: [NY Times: Index fund evangelist is straying From His Gospel]
Replies: 32
Views: 3358

Re: [NY Times: Index fund evangelist is straying From His Gospel]

My view, and this before reading Malkiel's article is that one day, I do not know when, diversification of equities will not be thought in terms of geography, or size (big, small caps, etc.) but rather according to factors. My problem has been that based on what I have read, research shows that fact...
by Always passive
Fri Jun 23, 2017 8:27 am
Forum: Investing - Theory, News & General
Topic: [NY Times: Index fund evangelist is straying From His Gospel]
Replies: 32
Views: 3358

Malkiel is reversing some of his views on passive investing

This article just appeared in the NYT. https://www.nytimes.com/2017/06/22/business/burton-malkiel-investment-stock-index-funds.html?smid=nytcore-ipad-share&smprod=nytcore-ipad Burton Malkiel, author of “A Random Walk Down Wall Street,” says looking for market inefficiencies can beat passive inve...
by Always passive
Wed Jun 21, 2017 1:07 am
Forum: Investing - Help with Personal Investments
Topic: Series EE US bonds of deceased
Replies: 7
Views: 507

Re: Series EE US bonds of deceased

Whose name is on the bond ? If it is your son's the fact that the friend might be alive or dead is irrelevant. Your son can cash it whenever he likes. Same applies if your son's name is the second name on rhe bond and it is preceeded by "or" If instead your son's name has "pod" ...
by Always passive
Wed Jun 21, 2017 12:37 am
Forum: Investing - Help with Personal Investments
Topic: Series EE US bonds of deceased
Replies: 7
Views: 507

Series EE US bonds of deceased

A question:
My wife just found a $100 Series EE savings bond dated 11/1996 under the name of my son (I think it was a gift from a friend of the family). who passed away in 1997 (very painful memories). What can we do with it?
by Always passive
Sun Jun 18, 2017 11:56 am
Forum: Investing - Help with Personal Investments
Topic: Increase stocks as part of a change in strategy
Replies: 9
Views: 468

Re: Increase stocks as part of a change in strategy

As part of a change in strategy, a portion of the family portfolio is being earmarked as long term/legacy, and for that portion, the allocation of stocks is being increased from 30 to 50%. The portfolio follows a slightly modified version of Taylor's 3 fund portfolio (VTI and VXUS in about equal we...
by Always passive
Sun Jun 18, 2017 11:53 am
Forum: Investing - Help with Personal Investments
Topic: Increase stocks as part of a change in strategy
Replies: 9
Views: 468

Re: Increase stocks as part of a change in strategy

As part of a change in strategy, a portion of the family portfolio is being earmarked as long term/legacy, and for that portion, the allocation of stocks is being increased from 30 to 50%. The portfolio follows a slightly modified version of Taylor's 3 fund portfolio (VTI and VXUS in about equal we...
by Always passive
Sun Jun 18, 2017 9:52 am
Forum: Investing - Help with Personal Investments
Topic: Increase stocks as part of a change in strategy
Replies: 9
Views: 468

Increase stocks as part of a change in strategy

As part of a change in strategy, a portion of the family portfolio is being earmarked as long term/legacy, and for that portion, the allocation of stocks is being increased from 30 to 50%. The portfolio follows a slightly modified version of Taylor's 3 fund portfolio (VTI and VXUS in about equal wei...
by Always passive
Fri Jun 16, 2017 2:25 pm
Forum: Investing - Theory, News & General
Topic: Adding new money to bond funds in rising interest environment
Replies: 28
Views: 1994

Re: Adding new money to bond funds in rising interest environment

The Fed only controls short term rates by increasing the rate banks charge each other to borrow money overnight. Any longer term interest rates are a function of the market perception of inflation. On Wednesday when the Fed increased rates, the Vanguard Total Bond Market index increased. On Tuesday ...
by Always passive
Thu Jun 15, 2017 6:56 am
Forum: Investing - Help with Personal Investments
Topic: Transferring out of MS - are there fees?
Replies: 1
Views: 195

Transferring out of MS - are there fees?

I have a breakage account at Morgan Stanley. I would like to close it and move the assets to another broker. Before beginning the process I would like to know if MS charges any fees to transfer "like in kind," meaning transferring all the assets as they are. I can contact them a get the an...
by Always passive
Tue Jun 13, 2017 2:37 pm
Forum: Investing - Help with Personal Investments
Topic: Another one of those "We are at the peak, crash is coming, how do I invest?" posts!
Replies: 75
Views: 5314

Re: Another one of those "We are at the peak, crash is coming, how do I invest?" posts!

There is another "doomsday" video floating around online. This one is by James Davidson and he says things like: "The stock market will plummet in 2017", "Our economy is past the point of no return" "The inevitable stock market wipe-out which will lead to a stock ...
by Always passive
Mon Jun 12, 2017 12:06 am
Forum: Investing - Help with Personal Investments
Topic: Rebalance or selling stocks with capital loss
Replies: 5
Views: 391

Rebalance or selling stocks with capital loss

My mother in law has a large capital loss and she can do at least three things with it: 1. Sell stocks that she has held since 2008- 2009 (I bought them cheap) when the world was coming apart. J&J, Boeing, Nippon T&T, Disney, Mondelez, and Vodafone. Except for BP and Vodafone, they have all ...
by Always passive
Thu Jun 08, 2017 12:50 am
Forum: Investing - Theory, News & General
Topic: 100% Stock Portfolio?
Replies: 138
Views: 6758

Re: 100% Stock Portfolio?

What are your thoughts on someone having a 100% stock portfolio for the rest of their lives? Lets say you're a 40 year old single person with no children. You keep a few years worth of savings in iBonds, are unafraid of the volatility in the stock market and therefore put all of your money into sim...
by Always passive
Thu Jun 08, 2017 12:31 am
Forum: Personal Consumer Issues
Topic: Does anyone read the Wall Street Journal?
Replies: 56
Views: 4809

Re: Does anyone read the Wall Street Journal?

I subscribe to the online versions of the NYT and WSJ and read them daily on my iPhone. I find them a worth addition to my daily life.
by Always passive
Tue Jun 06, 2017 12:28 am
Forum: Personal Finance (Not Investing)
Topic: Anti virus protection
Replies: 27
Views: 2074

Anti virus protection

I have used Mcaffe as my virus protection on Windows for many years. I am up for renewal. I have no idea if it is effective or not. At times I also run the free version of Malware.
Does anyone have a better suggestion than just renewing?
by Always passive
Wed May 31, 2017 9:39 am
Forum: Investing - Theory, News & General
Topic: What a convincing data to be passive !
Replies: 5
Views: 844

Re: What a convincing data to be passive !

I just read some interesting statistics on stock investing. Longboard Asset Management published a study called “The Capitalism Distribution” that examined stock returns from the top 3,000 US stocks. See below reference for details. They found that: 64 percent of stocks underperformed the broad sto...
by Always passive
Wed May 31, 2017 12:43 am
Forum: Investing - Theory, News & General
Topic: What a convincing data to be passive !
Replies: 5
Views: 844

What a convincing data to be passive !

I just read some interesting statistics on stock investing. Longboard Asset Management published a study called “The Capitalism Distribution” that examined stock returns from the top 3,000 US stocks. See below reference for details. They found that: 64 percent of stocks underperformed the broad stoc...
by Always passive
Tue May 30, 2017 12:27 pm
Forum: Personal Finance (Not Investing)
Topic: European bank fees WOW
Replies: 15
Views: 2355

Re: European bank fees WOW

Maybe it means that the European banking market is ripe for disruption. I guess because they waste money on things like human tellers, benefits, and living salaries for them. Not sure how this is actionable unless you want to start a new bank in Switzerland. My question was how Fidelity makes money...
by Always passive
Tue May 30, 2017 6:32 am
Forum: Personal Finance (Not Investing)
Topic: European bank fees WOW
Replies: 15
Views: 2355

Re: European bank fees WOW

Ok, sorry Switzerland is indeed not Europe, but even reviewing the above comments on other European banks in other European countries, it seems to me that the US is by far the cheapest. US brokers can be cheaper, and probably on average are somewhat cheaper than European ones. But to contrast Fidel...
by Always passive
Tue May 30, 2017 5:39 am
Forum: Personal Finance (Not Investing)
Topic: European bank fees WOW
Replies: 15
Views: 2355

Re: European bank fees WOW

Ok, sorry Switzerland is indeed not Europe, but even reviewing the above comments on other European banks in other European countries, it seems to me that the US is by far the cheapest. And when it comes to service, I have had the account with Fidelity for over 20 years, and I can only say good thin...
by Always passive
Tue May 30, 2017 1:16 am
Forum: Personal Finance (Not Investing)
Topic: European bank fees WOW
Replies: 15
Views: 2355

European bank fees WOW

My Swiss friend has an investment account in a Swiss bank, Julius Bear. In order to transact with JB, his minimum account is $500,000. Further, and in addition to fees paid per transaction (0.125 to 0.25%), he pays a custody fee of 0.25%. For those that do not know, a custody fee is a fee on all the...
by Always passive
Sun May 28, 2017 11:14 pm
Forum: Personal Finance (Not Investing)
Topic: Play Money for Spouse....
Replies: 138
Views: 9399

Re: Play Money for Spouse....

First, let me say that I realize I am in delicate territory, but I thought I might get ideas from members of the Bogleheads community (married and divorced :confused ). DW is frustrated because, as a much smaller wage earner, she doesn't feel "entitled" to spend money on herself (this is ...
by Always passive
Sat May 27, 2017 7:15 am
Forum: Investing - Theory, News & General
Topic: Eliminating Single Positions and Moving to Index Fund
Replies: 28
Views: 3241

Re: Eliminating Single Positions and Moving to Index Fund

"can be held forever"....Do you not rebalance? Rebalance within tax-advantaged accounts or through contributions or when tax-loss harvesting or when one is in the 15% tax bracket. Otherwise, I'm not sure of the value of rebalancing if taxable gains are generated. Rebalancing is a risk man...
by Always passive
Sat May 27, 2017 6:04 am
Forum: Investing - Theory, News & General
Topic: Eliminating Single Positions and Moving to Index Fund
Replies: 28
Views: 3241

Re: Eliminating Single Positions and Moving to Index Fund

Carbonate24: 1. Consider selling all stocks with a loss. 2. Sell an equal amount of stocks with long-term gains. Result: No tax. You didn't state your age, but you probably know that capital-gains are cancelled at the owner's death. This makes it usually worthwhile for elderly owners to continue ho...
by Always passive
Fri May 26, 2017 10:51 pm
Forum: Investing - Theory, News & General
Topic: CAPE adjusted stock/bond ratio
Replies: 14
Views: 952

Re: CAPE adjusted stock/bond ratio

I have been migrating to an allocation that reflects valuations (CAPE) without applying a formula. For the past years, I have reduced so slightly my allocation in US equities placing the money in Emerging Markets. The neutral global allocation is 50% US, 40% DW ex US, and 10% EM, while mine is 40% U...
by Always passive
Tue May 23, 2017 9:44 am
Forum: Investing - Help with Personal Investments
Topic: To me this is the most significant investment lesson ever
Replies: 16
Views: 2950

Re: To me this is the most significant investment lesson ever

If you like those numbers, then consider numbers from Vanguard. :) Do you agree that the Vanguard LifeStrategy funds have different asset allocations? You know, when it comes to the stock:bond ratio, Conservative Growth is different from Moderate Growth is different from Growth? Here are the 10-yea...
by Always passive
Tue May 23, 2017 12:08 am
Forum: Investing - Help with Personal Investments
Topic: To me this is the most significant investment lesson ever
Replies: 16
Views: 2950

To me this is the most significant investment lesson ever

To me this is the most significant investment lesson.... About a year ago, Meb Faber run a very interesting study. He took the allocations proposed by the top investment houses in the world during that time, see below the table with the data, and then calculated the return that each allocation would...
by Always passive
Mon May 22, 2017 10:45 am
Forum: Investing - Help with Personal Investments
Topic: rebalance or not
Replies: 5
Views: 349

Re: rebalance or not

I just rebalanced! Feel much better
by Always passive
Mon May 22, 2017 10:41 am
Forum: Investing - Help with Personal Investments
Topic: rebalance or not
Replies: 5
Views: 349

Re: rebalance or not

Plan the plan. Follow the plan. Can I ask why 40% US and 60% International? Why go above the 20-50% recommended allocation of US to International? Every few years I check the Shiller CAPE (PE10) and adjust (mildly) the allocation (US vs DW ex US vs EM) accordingly. The 40/40/20 is my personal inter...
by Always passive
Mon May 22, 2017 9:51 am
Forum: Investing - Help with Personal Investments
Topic: rebalance or not
Replies: 5
Views: 349

rebalance or not

I am now confronted with the painful task of rebalancing. My plan calls for an equity allocation of 30% (of which 40% is US, 40% is Developed World ex US, and 20% is Emerging Markets, and rebalance back to 30% when it reaches 35% or goes down to 25% according to the allocations prescribed above in p...
by Always passive
Fri May 19, 2017 7:42 am
Forum: Investing - Help with Personal Investments
Topic: I am a huge believer in Passive Indexing.. but.....
Replies: 42
Views: 3336

Re: I am a huge believer in Passive Indexing.. but.....

Ok, I just need people to walk me off the ledge here. for background, I have been a passive index investor since 1984 and have never looked back. It is the bulk of everything I do. However, about 3 years ago I "peaked". I took some "fun money" (approx $100K) and decided I would ...
by Always passive
Wed May 17, 2017 12:10 am
Forum: Investing - Help with Personal Investments
Topic: Bond ETFs that accumulate earnings vs. distributing
Replies: 15
Views: 1260

Re: Bond ETFs that accumulate earnings vs. distributing

Hi there, I am interested in buying some of the iShares bond ETFs that accumulate earnings. I have a question though, do they really make sense taking into account that the bond prices are constantly fluctuating? For example, with the distributing version I don't care much about these fluctuations ...
by Always passive
Mon May 15, 2017 9:59 pm
Forum: Investing - Theory, News & General
Topic: What Will Burst the Next Bubble?
Replies: 66
Views: 6628

Re: What Will Burst the Next Bubble?

Looking at the issue as a Bogleheads, the biggest concern is not worrying about when the bubble will burst, no one can predict that, but that as the market continues to rise, one may ignore his own policy on rebalancing, just too painful to sell when things seem to look so good, and pay a price late...
by Always passive
Fri May 12, 2017 10:37 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Ladder using Goggenheim Bullet Shares
Replies: 13
Views: 1003

Re: Bond Ladder using Goggenheim Bullet Shares

One thing to keep in mind with maturity defined bond ETFs, like Guggenheim's or iShares', is that in the year that the ETF expires, the bonds begin reaching maturity through the course of the 12 months (the ETF expiration date is Dec), therefore during that year your yield begins dropping as bonds m...
by Always passive
Fri May 12, 2017 10:23 pm
Forum: Investing - Help with Personal Investments
Topic: Question for a statistician - Question on Forex
Replies: 7
Views: 584

Re: Question for a statistician - Question on Forex

Your goal is to minimize your risk. Therefore, you would like to have as many shekels now as you will be spending. If you buy shekels now, you won't be any worse off in a year if the shekel falls against the dollar; your shekels are worth fewer dollars, but they are still worth just as much Israeli...
by Always passive
Fri May 12, 2017 9:00 am
Forum: Investing - Help with Personal Investments
Topic: Question for a statistician - Question on Forex
Replies: 7
Views: 584

Re: Question for a statistician - Question on Forex

I know that no one can predict the future, and many here feel that there are good reasons to believe that the shekel will continue strengthening, even with the Israel central bank routine interventions, but given all that, is it possible to apply some science to this dilemma? If I understand your q...
by Always passive
Fri May 12, 2017 8:55 am
Forum: Investing - Help with Personal Investments
Topic: Question for a statistician - Question on Forex
Replies: 7
Views: 584

Re: Question for a statistician - Question on Forex

Will you be returning to the USD (dollar) at some point? There's no use converting more than you need, then having to pay again for converting the excess back. Is this money going to be used for living expenses there? The reason I ask, is if you have the Capital One credit card and can use it for a...
by Always passive
Fri May 12, 2017 12:14 am
Forum: Investing - Help with Personal Investments
Topic: Question for a statistician - Question on Forex
Replies: 7
Views: 584

Question for a statistician - Question on Forex

Here is my question: in the next 12 months I will have to convert about US$2m to shekels, the currency of Israel, and the question is how to do it? The problem is that the shekel has been a very strong currency, going from about 4.5 shekels per dollar in 2006 to today's 3.6, up and down in an oscill...
by Always passive
Wed May 10, 2017 8:58 am
Forum: Investing - Theory, News & General
Topic: When Buffett says that long term interest rates are best indicator of future stock perf. What does he mean?
Replies: 7
Views: 1121

Re: When Buffett says that long term interest rates are best indicator of future stock perf. What does he mean?

Let me complicate the issue a bit by stating that the stock market had one of its best performances in 2013 in spite of the 10-year Treasury note rising from 1.78% to 3.04% by the end of the year.
by Always passive
Wed May 10, 2017 8:50 am
Forum: Investing - Theory, News & General
Topic: When Buffett says that long term interest rates are best indicator of future stock perf. What does he mean?
Replies: 7
Views: 1121

When Buffett says that long term interest rates are best indicator of future stock perf. What does he mean?

I read somewhere that in his recent meeting in Omaha and during a Q&A session, Buffett stated that in his view the best indicator of long term performance of the stock market can be found in the bond market. Should long term rates stay that low, he said, the equity market is really cheap. Can an...
by Always passive
Mon May 08, 2017 6:46 am
Forum: Investing - Help with Personal Investments
Topic: My daughter Pepsi shares - where are they??
Replies: 4
Views: 1229

My daughter Pepsi shares - where are they??

I need some help.
About 15 years ago, I bought shares of Pepsi to my daughter for her 13 year old birthday.
She just asked me what happened to them. And frankly I absolutely have no idea. I do not even remember how i bought them, which broker I used, etc.
Where can I search for them?
by Always passive
Sat May 06, 2017 11:31 am
Forum: Investing - Theory, News & General
Topic: Why should this chart not scare me from investing?
Replies: 20
Views: 1594

Re: Why should this chart not scare me from investing?

Two points: The graph does not include dividends, it is just the index, so the situation would look a bit better if you add dividends in the picture. The second, and by far, the most important point is diversification. I know that some bogleheads, including Bogle himself, are satisfied investing exc...
by Always passive
Tue May 02, 2017 9:21 am
Forum: Investing - Theory, News & General
Topic: Why? Jeremy Siegel thinks 30 yr. bond a good l.t. buy/hold.
Replies: 13
Views: 1821

Re: Why? Jeremy Siegel thinks 30 yr. bond a good l.t. buy/hold.

It seems to me that Jeremy Siegel is saying the obvious: long term treasuries are a great asset when stocks fall. What he also says is that while waiting for that eventually (which we all know is a matter of time) you can get 3% yield. Since I am not in the market timing business, as most Boglehead...
by Always passive
Tue May 02, 2017 8:42 am
Forum: Investing - Theory, News & General
Topic: Why? Jeremy Siegel thinks 30 yr. bond a good l.t. buy/hold.
Replies: 13
Views: 1821

Re: Why? Jeremy Siegel thinks 30 yr. bond a good l.t. buy/hold.

It seems to me that Jeremy Siegel is saying the obvious: long term treasuries are a great asset when stocks fall. What he also says is that while waiting for that eventually (which we all know is a matter of time) you can get 3% yield. Since I am not in the market timing business, as most Bogleheads...
by Always passive
Mon Apr 24, 2017 1:52 pm
Forum: Local Chapters and Bogleheads Community
Topic: The next generation of Boglehead authors
Replies: 41
Views: 3669

Re: The next generation of Boglehead authors

One day, and I guess sooner than later (see the growth of passive funds/ETFs), this forum's ideas will become mainstream, and when that happens this concern will become irrelevant.
by Always passive
Sat Apr 22, 2017 6:23 pm
Forum: Investing - Help with Personal Investments
Topic: Explain TIPS funds
Replies: 2
Views: 546

Explain TIPS funds

Please help me understand how TIPS funds let us say iShares TIPS ETF (TIP), make distributions? In a regular individual TIPS bond, one gets the real interest semi annually, and the bond principal growths as a function of inflation. Does TIP distribute as dividends not only the real interest but also...
by Always passive
Fri Apr 21, 2017 12:00 am
Forum: Investing - Help with Personal Investments
Topic: Help on retirement funding
Replies: 2
Views: 613

Help on retirement funding

In a previous posting, and my first one since joining this forum, I posed questions on asset allocation for inheritance, and I stated that I felt that about $5m would be available. I got many wise comments, thank you all. Now, I want to ask a question about retirement funding and hopefully get your ...
by Always passive
Wed Apr 19, 2017 10:35 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe says "Goodbye."
Replies: 336
Views: 37714

Re: Larry Swedroe says "Goodby."

Although I am very new as a member, I have read the forum and Mr Swedroe's contributions for many years. Thus I am qualified to say that he has been such an incredible asset to the forum and that it is very upsetting that he is leaving. One point that I wish to make is his reason, or one of the reas...

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