Search found 598 matches

by Day9
Mon Apr 16, 2018 4:11 pm
Forum: Investing - Theory, News & General
Topic: Cash instead of bonds?
Replies: 56
Views: 5434

Re: Cash instead of bonds?

Very similar to Buffet's advice to his heirs or wife. Something like 90% in low cost S&P 500 fund, rest in T-Bills. "Simplicity is the master key to financial success. When there are multiple solutions to a problem, choose the simplest one." — Investing With Simplicity, John Bogle ( http://www.vangu...
by Day9
Wed Apr 11, 2018 2:13 pm
Forum: Investing - Theory, News & General
Topic: Emerging markets tilt
Replies: 37
Views: 3094

Re: Emerging markets tilt

A few years ago Mr Swedroe recommended on this board for someone who wanted to tilt more toward international and emerging markets due to higher expected returns due to valuations: So with global market cap at 50% international (1/4 of that being EM) might go to say 60% and 1/3 of that EM. But be su...
by Day9
Mon Apr 09, 2018 7:42 pm
Forum: Investing - Theory, News & General
Topic: Why not annuitize most of portfolio?
Replies: 104
Views: 8059

Re: Why not annuitize most of portfolio?

Annuities are a great hedge against longevity risk (outliving your money) If you intend to leave a big legacy or inheritance then you can't do that with a normal annuity (except for survivor benefits which you can't do with a charity for example). If you don't care about leaving a legacy or inherita...
by Day9
Mon Apr 09, 2018 12:03 pm
Forum: Investing - Theory, News & General
Topic: Any value investor buying a Russia fund?
Replies: 92
Views: 5459

Re: A good time [price wise] to buy Russian Stocks?

VWO, Vanguard Emerging Market Stock Index by country:

Image
by Day9
Thu Mar 15, 2018 8:06 pm
Forum: Investing - Theory, News & General
Topic: Vanguard fund for Long Term Goverment Funds VLGSX or VUSUX?
Replies: 3
Views: 368

Re: Vanguard fund for Long Term Goverment Funds VLGSX or VUSUX?

Just buy individual treasury bonds at vanguard's bond desk. 0 expense ratio and you can customize the duration and convexity of your bond portfolio.
by Day9
Mon Mar 12, 2018 1:16 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Don’t Count Out Commodities
Replies: 51
Views: 6112

Re: Larry Swedroe: Don’t Count Out Commodities

Random....Agreed, a good article. Just because I like to 'stir the pot' every once in awhile ....why not hold physical gold/silver/platinum, as opposed to a CCF? I have gold (1 oz bars, American Eagles - not too much), and silver. Is that 'wrong'? Physical metals and CCFs perform different roles in...
by Day9
Mon Mar 12, 2018 2:09 am
Forum: Investing - Theory, News & General
Topic: What purpose (if any) does an ETF tracking the oil price have in a portfolio?
Replies: 14
Views: 1159

Re: What purpose (if any) does an ETF tracking the oil price have in a portfolio?

You hold a small amount of commodities and increase the duration of your bond portfolio and this can increase expected return and decrease risk.

The only free lunch in investing is diversification. :beer
by Day9
Fri Feb 09, 2018 5:17 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6422
Views: 1377096

Re: U.S. stocks in freefall

I turned 30 and reallocated & rebalanced from 90/10 to 85/15, following my IPS, almost exactly at the top a couple weeks ago. I'm still 85% stock but that little lucky timing has made it easier for me. Funny how psychology works.
by Day9
Mon Jan 29, 2018 9:34 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Rising Rates Increase Worries
Replies: 86
Views: 13375

Re: Larry Swedroe: Rising Rates Increase Worries

Larry Swedroe is talking up the alternatives in his columns and has been doing so for the last 2-3 years. His firm is recommending these products as well. Larry has substantial investments in these funds, so no doubt about his sincerity. He is putting is money where his mouth is. Again, reasonable ...
by Day9
Wed Jan 17, 2018 7:46 pm
Forum: Investing - Theory, News & General
Topic: [n X expenses + r] instead of [n X expenses]
Replies: 27
Views: 1184

Re: [n X expenses + r] instead of [n X expenses]

If anyone was looking for an excuse to work One More Year™ here it is :beer
by Day9
Fri Sep 01, 2017 10:38 pm
Forum: Investing - Theory, News & General
Topic: Robert Kiyosaki - rich dad, poor dad
Replies: 45
Views: 5300

Re: Robert Kiyosaki - rich dad, poor dad

OP, The part about stop thinking of your primary residence as an asset is very useful. But, it drives accountants nuts. Which may be useful too. KlangFool I love this post, KlangFool. In the book he defines assets as "things that pay you" and liabilities as "things that cost you". The problem is "a...
by Day9
Tue Aug 22, 2017 1:00 pm
Forum: Investing - Help with Personal Investments
Topic: 29 Years Old: Am I Too Conservative
Replies: 15
Views: 1742

Re: 29 Years Old: Am I Too Conservative

If you're on pace to meet all your financial goals with 60/40 then you don't need to take more risk. However if your income isn't very stable (I'm not very familiar with your industry) and you stop making as good money as you have been while expenses stay the same or increase due to the kids, then y...
by Day9
Tue Aug 15, 2017 6:07 pm
Forum: Investing - Theory, News & General
Topic: REITs a disappointment, yet still useful
Replies: 20
Views: 4040

Re: REITs a disappointment, yet still useful

Larry Swedroe wrote an article where one of his points is the returns of REITS were driven by factors such as market beta, term, and credit risk. The punchline being: the results of this study led them to suggest that REITs, as an equity security with marginal diversification benefits, shouldn’t recei...
by Day9
Wed Aug 02, 2017 5:20 pm
Forum: Investing - Theory, News & General
Topic: VGSTX: Is Vanguard STAR Still A Star?
Replies: 22
Views: 4772

Re: VGSTX: Is Vanguard STAR Still A Star?

It also has only a $1,000 minimum initial investment, like the Target Date funds. (Surprisingly the Life Strategy funds have $3,000 minimums). It's a great place to start.
by Day9
Wed Aug 02, 2017 1:30 am
Forum: Investing - Theory, News & General
Topic: Swedroe: Volatility As A Strategy
Replies: 56
Views: 6010

Re: Swedroe: Volatility As A Strategy

My first reaction is yeah the downside shows up at the wrong time. But that's why there's a premium, isn't there. A portfolio would need to have plenty of funds allocated to investments that do not tank when both stocks and selling volatility tank (with high correlation). Term risk comes to mind. Wh...
by Day9
Mon Jul 17, 2017 5:11 pm
Forum: Investing - Theory, News & General
Topic: 90:10 AA - what don't you believe about it?
Replies: 101
Views: 8688

Re: 90:10 AA - what don't you believe about it?

willthrill81 wrote: VPW ... simply means that you are withdrawing a fixed percentage
Doesn't VPW stand for Variable Percentage Withdrawal?
by Day9
Mon Jul 17, 2017 12:31 pm
Forum: Investing - Theory, News & General
Topic: Do you pay fees to buy funds or ETFs?
Replies: 46
Views: 3513

Re: Do you pay fees to buy funds or ETFs?

I have to pay a small commission in my HSA (Health Savings Account) and as far as I can tell I have no choice over that. So I do not buy more funds with every pay period instead I wait to grow a significant cash reserve then invest the cash all at once.
by Day9
Mon Jul 17, 2017 12:17 am
Forum: Investing - Theory, News & General
Topic: 90:10 AA - what don't you believe about it?
Replies: 101
Views: 8688

Re: 90:10 AA - what don't you believe about it?

I would like to mention that with such a small bond allocation, it may be a good idea to extend the duration of your bond portfolio beyond what you may use in say, a 60/40 portfolio.
by Day9
Thu Jul 06, 2017 9:25 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 19390

Re: Dividend Misunderstandings & Only Spend Return

Dividends were quite useful in the old days where you had to trade in "round lots" of 100 shares and pay exorbitant trading fees before the era of online discount brokerages. The great work The Intelligent Investor was written in 1949 so it's easy to believe that common sense stock market investing ...
by Day9
Thu Jun 22, 2017 1:19 pm
Forum: Investing - Theory, News & General
Topic: Why bonds when one's investment horizon is long?
Replies: 59
Views: 5471

Re: Why bonds when one's investment horizon is long?

If stocks have an unprecedented nose dive then even a 90/10 portfolio would preserve much more capital than a 100% stock portfolio. The NASDAQ lost 80% of its value from peak to bottom in the dot com bubble crash.
by Day9
Wed Jun 21, 2017 10:37 am
Forum: Investing - Theory, News & General
Topic: Argentina issuing 100-year bond.
Replies: 64
Views: 7793

Re: Argentina issuing 100-year bond.

According to S&P, Argentina's credit rating is "B" which is lower than the "BBB-" which means it is "speculative grade" aka a junk bond. Individual DIY investors should not buy individual junk bonds because it is important to diversify credit risks. So individual DIY investors should only use bond f...
by Day9
Thu Jun 15, 2017 6:46 pm
Forum: Investing - Theory, News & General
Topic: Always better to place bonds tax-efficiently?
Replies: 7
Views: 866

Re: Always better to place bonds tax-efficiently?

I understand that traditional advice is to place tax-inefficient vehicles like bond funds into post-tax accounts like Roth IRAs, so you don't generate extra taxes. Are you sure this is the traditional advice? My understanding was the traditional advice is to place bond funds in tax advantaged accou...
by Day9
Wed Jun 14, 2017 1:53 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Stocks, Bonds, & Risk
Replies: 61
Views: 7123

Re: Larry Swedroe: Stocks, Bonds, & Risk

Paraphrasing Mr Swedroe: A retired couple's portfolio went from $12 million to $2 million after the 2000 tech bubble burst (They were 100% invested in high-flying tech stocks). When he asked them if their life would be much better if it instead had doubled to $24 million, the husband shrugged and sa...
by Day9
Fri Jun 02, 2017 12:05 pm
Forum: Investing - Theory, News & General
Topic: How do you fight the urge to micromanage?
Replies: 57
Views: 5399

Re: How do you fight the urge to micromanage?

Tax loss harvesting is an example of potentially good tinkering.
by Day9
Tue May 30, 2017 11:21 am
Forum: Investing - Theory, News & General
Topic: "Mind the Gap 2017"
Replies: 14
Views: 2393

Re: "Mind the Gap 2017"

Maybe it's not just panic-selling and greed-buying but perhaps people are just more likely to have spending needs that would require them to tap their portfolio when the market crashes. In that case it's not as much a matter of staying the course as it is knowing your risk tolerance, specifically yo...
by Day9
Fri May 26, 2017 1:23 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe on REITs
Replies: 66
Views: 8854

Re: Larry Swedroe on REITs

Reminder that one reason Mr Swedroe prefers other funds to Vanguard Small Cap Value (VBR) is that VBR has too high an allocation to REITs.
by Day9
Wed May 10, 2017 10:41 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe on Challenges Of Managing Finances As We Age
Replies: 25
Views: 4272

Re: Larry Swedroe on Challenges Of Managing Finances As We Age

My father is 71 and I will help him with managing his finances as he ages. I've learned a lot from Larry & the Bogleheads and I'm using what I've learned to help my family. Thanks everyone.
by Day9
Thu May 04, 2017 9:20 pm
Forum: Investing - Theory, News & General
Topic: Value Index Funds A Farce?
Replies: 28
Views: 4546

Re: Value Index Funds A Farse?

I've found that Vanguard's value funds have only a quite low value holding, and Vanguard Small-Cap Value has a large allocation to REITs. Other Value ETFs have these issues or others like small AUM, low daily volume leading to large bid/ask spreads, or significant negative momentum loadings. Larry S...
by Day9
Mon Apr 24, 2017 1:18 pm
Forum: Investing - Theory, News & General
Topic: Single most important investing advice?
Replies: 97
Views: 14045

Re: Single most important investing advice?

It is arbitrary to distill advice to a single point. Here are the 10 points that make up the Bogleheads' investment philosophy: 1 Develop a workable plan 2 Invest early and often 3 Never bear too much or too little risk 4 Diversify 5 Never try to time the market 6 Use index funds when possible 7 Kee...
by Day9
Thu Apr 20, 2017 3:38 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe says "Goodbye."
Replies: 336
Views: 46807

Re: Larry Swedroe says "Goodby."

It is despicable to accuse someone of deceptively promoting an investment product or technique purely for self-interest and immediately follow by asking for their help and advice. I hope the person or people who did that reflect on themselves.
by Day9
Thu Apr 20, 2017 12:47 pm
Forum: Investing - Theory, News & General
Topic: Evaluating my lack of jitters
Replies: 26
Views: 2088

Re: Evaluating my lack of jitters

You have to consider your need, ability, and willingness to take risk. You have the willingness, but do you have the need and ability?
by Day9
Wed Apr 19, 2017 10:40 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe says "Goodbye."
Replies: 336
Views: 46807

Re: Larry Swedroe says "Goodby."

Thank you very much Mr Swedroe. I've learned so much from you! I highly recommend his books. The Only Guide You'll Ever Need for the Right Financial Plan makes a great gift!
by Day9
Wed Mar 01, 2017 1:14 pm
Forum: Investing - Theory, News & General
Topic: Three-Fund Portfolio Question?
Replies: 9
Views: 1801

Re: Three-Fund Portfolio Question?

This is why Bogleheads diversify globally and across asset classes!
by Day9
Wed Feb 22, 2017 2:48 pm
Forum: Investing - Theory, News & General
Topic: Bogleheads work BECAUSE its hard
Replies: 22
Views: 3065

Re: Bogleheads work BECAUSE its hard

Indeed the wiki says this: Stay the course: This is perhaps the most challenging part of Boglehead investing, but is essential to its success ... On rebalancing once per year: "making only that one change every year takes discipline, it is also an enormous relief to be able to tune out the endless c...
by Day9
Tue Feb 14, 2017 2:49 pm
Forum: Investing - Theory, News & General
Topic: Are stock valuations so high because interest rates are so low?
Replies: 28
Views: 3249

Re: Are stock valuations so high because interest rates are so low?

Stocks are fundamentally valuable due to the future dividends they will pay out. The discounted value of future cash flow is affected by current interest rates and expectations of future interest rates. This is one reason why low interest rates would make stocks higher. Another reason is low interes...
by Day9
Tue Jan 31, 2017 7:32 pm
Forum: Investing - Theory, News & General
Topic: STAR Fund
Replies: 11
Views: 2921

Re: STAR Fund

I would like to point out it has only a $1,000 minimum investment which is less that most of their other funds.
by Day9
Wed Jan 25, 2017 12:08 pm
Forum: Investing - Theory, News & General
Topic: part 2 of annual lessons learned series
Replies: 2
Views: 587

Re: part 2 of annual lessons learned series

Thanks for this article. It is a good review of 2016 and a reminder of the Boglehead core philosophy that is usually at the end of the list of Boglehead core philosophies: Stay the course. It's easier to stay the course when we have articles like this that remind us why it is necessary.
by Day9
Mon Jan 23, 2017 4:54 pm
Forum: Investing - Theory, News & General
Topic: Tom Sossnof's derivative trades
Replies: 35
Views: 2774

Re: Tom Sossnof's derivative trades

My understanding is that their strategy is to "sell volatility" and I believe I have read that this is a positive expected return strategy that is not correlated with the market so there might be some justification to do this kind of thing in addition to holding a Boglehead portfolio. I agree with t...
by Day9
Wed Jan 18, 2017 11:13 am
Forum: Investing - Theory, News & General
Topic: Spending HSA money versus other
Replies: 21
Views: 2740

Re: Spending HSA money versus other

I don't want to hold onto receipts for 30 years so I paid a few $500 bills out of my HSA now instead of doing this. I should start a post in the personal finance tips forum titled "How to securely hold onto receipts for 30 years" :mrgreen:
by Day9
Tue Jan 17, 2017 7:44 pm
Forum: Investing - Theory, News & General
Topic: Deciding on types of bonds is harder than stocks!
Replies: 20
Views: 3208

Re: Deciding on types of bonds is harder than stocks!

Add CDs to the list as well. They have significantly higher yield than equal duration treasuries but are still FDIC insured up to $250k per institution which makes them good for the little guy. If going all-in Total Bond Market for your fixed income allocation is a crime, it's a misdemeanor not a fe...
by Day9
Tue Jan 17, 2017 7:41 pm
Forum: Investing - Theory, News & General
Topic: "Millennials may need to double how much they save for retirement"
Replies: 173
Views: 19899

Re: "Millennials may need to double how much they save for retirement"

Rodc wrote: ...
But even that hides a lot. More scary are the numbers by education and race.
Especially net worth by demographic. The differences are much more pronounced than income.
by Day9
Tue Dec 20, 2016 4:58 pm
Forum: Investing - Theory, News & General
Topic: Is VBR a no-brainer over IJS?
Replies: 47
Views: 7906

Re: Is VBR a no-brainer over IJS?

May I throw another one into the mix: RZV, Guggenheim S&P Smallcap 600 Pure Value ETF According to the factor loadings from portfoliovisualizer.com, this one seems to be very small (1.204) and value-y (0.746), ER 0.35%. Any opinions on this one? RZV has significantly lower average volume and AUM th...
by Day9
Tue Dec 20, 2016 12:55 pm
Forum: Investing - Theory, News & General
Topic: Stable Value Funds in Portfolio
Replies: 45
Views: 7218

Re: Stable Value Funds in Portfolio

Sometimes a Stable Value fund is the only good fixed income option in a 401k or similar plan. The other options might just be high expense ratio actively managed funds. The ones I've come across are not transparent so I could not analyze credit, duration, and other kinds of risks. Even if they were ...
by Day9
Wed Dec 14, 2016 11:02 pm
Forum: Investing - Theory, News & General
Topic: Swedroe: "OK to sin...but sin only a little"
Replies: 51
Views: 7380

Re: Swedroe: "OK to sin...but sin only a little"

Saved the quote but not the post. Larry said here a month or two ago: So with global market cap at 50% international (1/4 of that being EM) might go to say 60% and 1/3 of that EM. But be sure you can live with that TE. The context was the max possible international and emerging markets allocations. ...
by Day9
Tue Dec 13, 2016 10:46 pm
Forum: Investing - Theory, News & General
Topic: I thought Swedroe was a fan of REITs?
Replies: 127
Views: 11920

Re: I thought Swedroe was a fan of REITs?

The "4% rule" comes from purely historical backtesting during times where stock valuations were lower and bond yields were higher so the rule is not safe or conservative for someone retiring today. This is incorrect. 4% worked during the worst times when stock valuations were high, and bond yields ...
by Day9
Tue Dec 13, 2016 5:30 pm
Forum: Investing - Theory, News & General
Topic: I thought Swedroe was a fan of REITs?
Replies: 127
Views: 11920

Re: I thought Swedroe was a fan of REITs?

nedsaid, agree completely. When you get major changes in valuations one should review their assumptions And here is simple example of the foolishness of the age in bonds rule, which while a reasonable starting point when considering ABILITY to take risk, makes no sense as the only rule. Say you are...
by Day9
Tue Dec 13, 2016 11:10 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe's New Book is Available Now!
Replies: 164
Views: 22193

Re: Larry Swedroe's New Book is Available Now!

It was a good touch to make the first chapter about Market Beta. I'd expect the reader to already accept and be familiar with at least the general idea of the ERP so leading off with this and framing it as just one of the factors to be discussed makes the book more persuasive. Of course the book is ...
by Day9
Mon Dec 12, 2016 3:52 pm
Forum: Investing - Theory, News & General
Topic: I thought Swedroe was a fan of REITs?
Replies: 127
Views: 11920

Re: I thought Swedroe was a fan of REITs?

Of course we Bogleheads know that past performance alone does not imply future performance and we must have other stories for why stocks are expected to have positive real expected returns going forward. And Larry is correct that a humble estimate of an average return knowing that there is a wide di...
by Day9
Mon Dec 12, 2016 12:53 pm
Forum: Investing - Theory, News & General
Topic: I thought Swedroe was a fan of REITs?
Replies: 127
Views: 11920

Re: I thought Swedroe was a fan of REITs?

"the more recent research shows that REITS aren't all that unique as an asset class" I have 10% of my portfolio in REITs (half US and half international, all in tax-advantaged locations) and will stay the course, but am interested in this comment from Larry. My allocation is based partly on past re...