Search found 479 matches
- Fri Apr 06, 2018 12:52 am
- Forum: Personal Finance (Not Investing)
- Topic: How Do You Value Your Home for Net Worth Purposes?
- Replies: 150
- Views: 8972
Re: How Do You Value Your Home for Net Worth Purposes?
FI is absolutely based on one's liquid net worth. And houses/real estate are included in that because they are (typically) liquid, ie they can always be converted to spendable cash (just like a stock). This is patently false. I think joke about a farmer cooking his favorite pig one limb per month c...
- Wed Apr 04, 2018 8:05 pm
- Forum: Personal Finance (Not Investing)
- Topic: How Do You Value Your Home for Net Worth Purposes?
- Replies: 150
- Views: 8972
Re: How Do You Value Your Home for Net Worth Purposes?
Unless I am misunderstanding an awful lot, I find your examples and your way of thinking about this both bizarre and almost horrifying. It is not your net worth that defines financial independence, but your financial assets. Your example would suggest that someone with a paid-off million-dollar hom...
- Fri Mar 30, 2018 1:27 pm
- Forum: Personal Finance (Not Investing)
- Topic: How Do You Value Your Home for Net Worth Purposes?
- Replies: 150
- Views: 8972
Re: How Do You Value Your Home for Net Worth Purposes?
You can account for your home as a consumable (not part of net worth) or an investment asset (part of net worth). What's important is that you stick with one of the two designations when determining your A) net worth and B) spending, in order to determine C) your FI number (based on the SWR of your ...
- Sat Mar 10, 2018 4:54 pm
- Forum: Investing - Help with Personal Investments
- Topic: REITS and Swedroe
- Replies: 71
- Views: 7116
Re: REITS and Swedroe
Unlike renting, you have the opportunity to build equity but home ownership does not generate cash flow. Home ownership does indeed generate cash flow in the form of imputed rent. Cash is what pays bills. Imputed anything does not. Of course it does. Money is fungible. Savings is imputed earnings. ...
- Thu Mar 08, 2018 11:12 am
- Forum: Investing - Help with Personal Investments
- Topic: REITS and Swedroe
- Replies: 71
- Views: 7116
- Tue Jan 30, 2018 2:59 pm
- Forum: Investing - Theory, News & General
- Topic: Wow: Shiller PE is 34.52
- Replies: 52
- Views: 6437
Re: Wow: Shiller PE is 34.52
Trailing earnings yield is 3.79%.
2 year treasury yield is 2.11%
Your choice if that's worth the risk.
2 year treasury yield is 2.11%
Your choice if that's worth the risk.
- Sun Jan 28, 2018 8:48 pm
- Forum: Personal Consumer Issues
- Topic: Career "advice" for someone without college
- Replies: 39
- Views: 2030
Re: Career "advice" for someone without college
If he has any artistic inclination-- graphic design, motion design, CGI, illustration etc are an option. It would require some months (say 6) of sitting down, learning the software (not that hard), making some stuff, and then creating a portfolio. Employers only look at the portfolio, could care les...
- Sat Jan 27, 2018 10:12 pm
- Forum: Investing - Theory, News & General
- Topic: U.S. stock inflows over the past 12 months: $25 billion. Taxable bond inflows: $392 billion
- Replies: 18
- Views: 2905
Re: U.S. stock inflows over the past 12 months: $25 billion. Taxable bond inflows: $392 billion
Investors are cutting their exposure to equities, and they have been for years.
How is this possible? Every share sold is a share bought. Is it a buyback phenomenon? Is it that there are less equity investors but larger holdings per individual? How does this concept of "flows" really work?
How is this possible? Every share sold is a share bought. Is it a buyback phenomenon? Is it that there are less equity investors but larger holdings per individual? How does this concept of "flows" really work?
- Mon Dec 18, 2017 7:08 am
- Forum: Investing - Help with Personal Investments
- Topic: Can I put K-1 income into a solo 401k?
- Replies: 2
- Views: 353
Can I put K-1 income into a solo 401k?
I have a solo 401k that I have used in conjunction with solo contractor work. In 2017, I did no solo contractor work. I contributed the 18K maximum to my employer's 401k, zero to the solo 401k. My employer is an LLC, of which I am a member/shareholder. The company is profitable, and allocates my sha...
- Sun Dec 03, 2017 9:45 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard to launch US 'smart beta' ETFs - Will this board burn down?
- Replies: 156
- Views: 18258
Re: Vanguard to launch US 'smart beta' ETFs - Will this board burn down?
That chart is not right. It does not include dividends. Look closer, the chart is right even accounting for the Q3 dividend distributions. Of course it's right. It is a price (NAV) chart. It is not supposed to include dividends. :D The problem with the chart is that it is only for three months. Tha...
- Tue Nov 28, 2017 10:47 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard to launch US 'smart beta' ETFs - Will this board burn down?
- Replies: 156
- Views: 18258
Re: Vanguard to launch US 'smart beta' ETFs - Will this board burn down?
It's the end of the mutifactor era. Thank you Larry for all the books, Robert T for all the posts. It was good times.
I'll let my DFA and AQR funds stick around as keepsakes, but it's all about VTI and VXUS from here on out.

I'll let my DFA and AQR funds stick around as keepsakes, but it's all about VTI and VXUS from here on out.
- Sun Oct 08, 2017 3:08 pm
- Forum: Personal Finance (Not Investing)
- Topic: Sell or keep shares of a private company?
- Replies: 39
- Views: 2677
Re: Sell or keep shares of a private company?
Reframing might add perspective. If you had the $650K in hand, and were given the one-time opportunity to invest it in the company, would you do so? If yes, how do you rationalize holding 50% of your AA in this private stock? I'm not saying you cannot rationalize it, but what does that rationale loo...
- Sun Sep 17, 2017 1:48 pm
- Forum: Investing - Help with Personal Investments
- Topic: What is the portfolio role of a leveraged bond fund like PONDX?
- Replies: 60
- Views: 4824
Re: What is the portfolio role of a leveraged bond fund like PONDX?
Can anyone speak to outflow/liquidity risk of this kind of fund? We can assume the day will come when all these inflows become outflows. AFAIK PDI is the closed-end cousin (same strategy, more leverage). Is a smaller amount of a CEF a better choice for this kind of thing (assuming one doesn't drasti...
- Tue Jun 27, 2017 6:01 pm
- Forum: Investing - Help with Personal Investments
- Topic: A large, intentional overcontribution to a Roth IRA
- Replies: 3
- Views: 573
A large, intentional overcontribution to a Roth IRA
I want to buy 40K of QMNIX (AQR market neutral) in a Roth IRA before the fund closes on friday. It's available at Fidelity in an IRA with a $2500 min. I have put in motion a transfer request to move 40K in cash from my other Roth to a newly opened Roth account at Fidelity. Problem is that the transf...
- Fri Sep 16, 2016 7:54 am
- Forum: Investing - Theory, News & General
- Topic: Broker-Dealer Fee Audit. Is it a thing?
- Replies: 8
- Views: 1000
Re: Broker-Dealer Fee Audit. Is it a thing?
Great comments, thank you. I hadn't thought of the bond spreads, and I think individual bonds ("special offers just for you") are part of this broker's schtick. I like tfb's suggestion, a CPA audit from the statements.
- Thu Sep 15, 2016 10:31 pm
- Forum: Investing - Theory, News & General
- Topic: Broker-Dealer Fee Audit. Is it a thing?
- Replies: 8
- Views: 1000
Broker-Dealer Fee Audit. Is it a thing?
I am trying to convince a family member (FM) to leave her Morgan Stanley "advisor". FM has stuck around for the usual reasons: the advisor is a nice person, always available, etc. Of course, FM has no idea what they've been paying in fees. I've convinced them to ask for an accounting of the fees the...
- Tue Aug 02, 2016 4:41 pm
- Forum: Investing - Theory, News & General
- Topic: What is the purpose of a Long/Short Equity Fund fund like AQR QLERX?
- Replies: 49
- Views: 4431
Re: What is the purpose of a Long/Short Equity Fund fund like AQR QLERX?
I haven't read the whole thread, but QLERX has a .7 correlation to VT (world stock), so it is not the alternative fund you want.
- Thu May 05, 2016 12:50 pm
- Forum: Personal Consumer Issues
- Topic: *IF* VW buys back my TDI
- Replies: 37
- Views: 4239
Re: *IF* VW buys back my TDI
I wonder if I can set my TDI on fire and still sell it back to them at the summer '15 KBB value.
- Fri Apr 22, 2016 5:33 pm
- Forum: Personal Consumer Issues
- Topic: Volkswagen DieselGate Compensation - Any Tax Implications?
- Replies: 20
- Views: 8375
Re: Volkswagen DieselGate Compensation - Any Tax Implications?
My TDI drives like a dream (for now) but the damn sunroof wont stop rattling so they can have it back.
- Tue Feb 23, 2016 4:48 pm
- Forum: Personal Finance (Not Investing)
- Topic: where to get 3% real with the least amount of risk?
- Replies: 56
- Views: 7904
Re: where to get 3% real with the least amount of risk?
Do half the bogleheads not know the difference between real and nominal? Someone should do a poll...
- Tue Feb 23, 2016 1:10 am
- Forum: Personal Finance (Not Investing)
- Topic: where to get 3% real with the least amount of risk?
- Replies: 56
- Views: 7904
Re: where to get 3% real with the least amount of risk?
P2P lending is the answer. You'll get very few defaults at a 5% return target.
- Thu Feb 04, 2016 5:11 pm
- Forum: Investing - Theory, News & General
- Topic: Prosper.com Update Total Return
- Replies: 39
- Views: 5801
Re: Prosper.com Update Total Return
I think it is extremely difficult to evaluate p2p lending as an investment until it is seen how it performs during an economic downturn. My intuition is that the currently available returns don't justify the downside risk. Haven't run any numbers to back this up, but I'd imagine default rates would...
- Mon Feb 01, 2016 4:29 pm
- Forum: Investing - Theory, News & General
- Topic: Charles Ellis' suggested portfolios by age
- Replies: 53
- Views: 7514
Re: Charles Ellis' suggested portfolios by age
It's not really a good question, because it totally depends on how much money you have. If you're 40 and have 100K, then sure why not go 100% stocks. If you're 40 and have $5 million, then you could reasonably consider 0% stocks.
- Sun Jan 24, 2016 12:33 am
- Forum: Investing - Help with Personal Investments
- Topic: 30 YO with 100K looking for investment advise - and a Shocking Chart
- Replies: 25
- Views: 2848
Re: 30 YO with 100K looking for investment advise - and a Shocking Chart
Jan 2000 - Jan 2016
SPY returned 86%
Large Value returned 225%
Small Value returned 379%
SPY returned 86%
Large Value returned 225%
Small Value returned 379%
- Fri Jan 22, 2016 8:54 pm
- Forum: Investing - Theory, News & General
- Topic: Jack's nuances. [Jack Bogle vs. fixed income, bonds]
- Replies: 44
- Views: 4458
Re: Jack's nuances. [Jack Bogle vs. fixed income, bonds]
Don't add your SS, and don't subtract your future taxes. Call it a wash.
- Fri Jan 22, 2016 3:59 pm
- Forum: Investing - Theory, News & General
- Topic: Why don't people like the higher level of real estate allocation in Swensen lazy portfolio?
- Replies: 33
- Views: 4149
Re: Why don't people like the higher level of real estate allocation in Swensen lazy portfolio?
REITs have a minor diversification benefit, as any sector fund would. I have a more conspiratorial take on why REITs became a "thing". I think the false narratives of "REITs approximate actual real estate investment" and "your home is a consumption item, not an investment" are ideas pushed by wealth...
- Mon Jan 18, 2016 10:59 pm
- Forum: Investing - Help with Personal Investments
- Topic: eyeing micro-cap stocks
- Replies: 39
- Views: 3806
Re: eyeing micro-cap stocks
. It also illustrates for investors, the general case against holding high-yielding bonds in a small-cap value tilted portfolio, so as to avoid holding the same companies on the stock side as the bond side of a portfolio. When risks show up - the negative outcomes can be very large, particularly fo...
- Mon Jan 18, 2016 5:25 pm
- Forum: Investing - Theory, News & General
- Topic: I'm Calling an Emerging Markets Bottom
- Replies: 282
- Views: 51927
Re: I'm Calling an Emerging Markets Bottom
Cheap is better than expensive, but either way EM is not a very compelling equity diversifier. It has a low Sharpe ratio and relatively high correlation to developed market equities. The better equity diversifier is a well-managed, low-duration, mildly-leveraged credit CEF. Better Sharpe, low correl...
- Fri Dec 25, 2015 5:21 pm
- Forum: Investing - Theory, News & General
- Topic: Decided to try timing the market. 100% short on 9/17/15
- Replies: 353
- Views: 58646
Re: Decided to try timing the market. 100% short on 9/17/15
People whom are tempted to play backtesting timing games on PortfolioVisualizer need to realize that these results, while fun for the euphoric wealth hallucinations they induce, are meaningless and totally data mined. Why? Because if you just tweak any of the input parameters slightly, the output va...
- Wed Dec 23, 2015 5:13 pm
- Forum: Investing - Help with Personal Investments
- Topic: "Loomis Sayles Bond Fund LSBDX
- Replies: 6
- Views: 894
Re: LSBDX
If it's down, you're supposed to buy more (rebalance), not sell it. Nobody can offer "timing" advice for interest rates. If you're tempted to even think about timing interest rates, then you probably have no business owning bonds, instead try CDs. Except for this particular bond fund, which you ough...
- Wed Dec 23, 2015 4:57 pm
- Forum: Personal Consumer Issues
- Topic: Anyone buy Frozen meats online?
- Replies: 13
- Views: 2133
Re: Anyone buy Frozen meats online?
I have sent my brother a big box of Omaha steaks every year for his birthday. They had excellent service and my brother raved about them but I never tried them for myself. This year when I sent him his box, I ordered a few for myself. I thought they were horrible compared to the ones I get at the l...
- Fri Nov 20, 2015 10:15 pm
- Forum: Investing - Help with Personal Investments
- Topic: Confused about i401k and Roth combined max contributions
- Replies: 2
- Views: 442
Re: Confused about i401k and Roth combined max contributions
That's helpful, thank you. I do not have any other earned income. So then, you're saying that I can make a Roth i401k contribution comprising my entire business profit (8K - 1/2 SE) and additionally contribute another $5500 to my Roth IRA? This makes me wonder…could I declare interest from CDs in my...
- Thu Nov 19, 2015 9:30 pm
- Forum: Investing - Help with Personal Investments
- Topic: Confused about i401k and Roth combined max contributions
- Replies: 2
- Views: 442
Confused about i401k and Roth combined max contributions
As a sole proprietor/independent contractor, I'll have an earned income of about 8K in 2015. I have a large % of investments in taxable, thus I want to contribute as much as possible to my i401k and/or Roth. What is the maximum I can contribute to my solo 401k? Is it 8K (employee) plus $1600 (employ...
- Thu Nov 19, 2015 9:08 pm
- Forum: Investing - Help with Personal Investments
- Topic: Need to generate more income from portfolio and need advice
- Replies: 12
- Views: 1909
Re: Need to generate more income from portfolio and need advice
What 0% bracket? Isn't the lowest bracket 10% ?tibbitts wrote:
Moving some of the funds to a Roth, particularly if you can stay in the 0% bracket, wouldn't hurt.
- Tue Nov 17, 2015 2:17 am
- Forum: Investing - Help with Personal Investments
- Topic: Why shouldn't I build a 7-10 year brokered CD ladder as my "bond" allocation?
- Replies: 19
- Views: 2585
Re: Why shouldn't I build a 7-10 year brokered CD ladder as my "bond" allocation?
Thanks for the replies. Consider this idea officially crushed. A 2% spread is pushing a year's worth of interest-- outrageous.
- Mon Nov 16, 2015 10:43 pm
- Forum: Investing - Help with Personal Investments
- Topic: Why shouldn't I build a 7-10 year brokered CD ladder as my "bond" allocation?
- Replies: 19
- Views: 2585
Re: Why shouldn't I build a 7-10 year brokered CD ladder as my "bond" allocation?
It is a bit cumbersome to re-balance with CDs (whether brokered or retail). I'd keep a modicum in a liquid bond fund or ETF for this reason. Although I prefer retail CDs, nothing wrong with brokered if held to maturity and rolled at that time. If you have the patience, a longish ladder will perform...
- Mon Nov 16, 2015 6:54 pm
- Forum: Investing - Help with Personal Investments
- Topic: Why shouldn't I build a 7-10 year brokered CD ladder as my "bond" allocation?
- Replies: 19
- Views: 2585
Re: Why shouldn't I build a 7-10 year brokered CD ladder as my "bond" allocation?
Just go for it. Nothing wrong with your idea except if there is a strong chance that you will need to cash in all those CDs before they mature. You can tell me yourself what might happen if interest rates go up. Suppose in 2 years, I can buy a 5-year CD that pays me 4% interest. How much would I be...
- Mon Nov 16, 2015 6:50 pm
- Forum: Investing - Help with Personal Investments
- Topic: Why shouldn't I build a 7-10 year brokered CD ladder as my "bond" allocation?
- Replies: 19
- Views: 2585
Re: Why shouldn't I build a 7-10 year brokered CD ladder as my "bond" allocation?
If you're planning to sell those CDs, you'll give up most of your yield bonus through spreads. Brokered CDs are best thought of as a buy-and-hold-until-maturity instrument. So, if one was doing a 10 year ladder that would be one thing; if one really just want bonds in the 7 to 10 year range, I'd pe...
- Mon Nov 16, 2015 6:32 pm
- Forum: Investing - Help with Personal Investments
- Topic: Why shouldn't I build a 7-10 year brokered CD ladder as my "bond" allocation?
- Replies: 19
- Views: 2585
Why shouldn't I build a 7-10 year brokered CD ladder as my "bond" allocation?
In my fixed income allocation I'm aiming for zero credit risk and 7-10 years term risk. I could buy IEF, the 7-10 year treasury fund. That would be convenient. But the yield spread between 7 and 10 year treasuries is currently 1.93 to 2.20 %. Brokered CDs have a 7 to 10 year yield spread of 2.54 to ...
- Wed Sep 23, 2015 8:11 pm
- Forum: Investing - Theory, News & General
- Topic: Gundlach: What to do when the Fed raises rates
- Replies: 23
- Views: 3574
Re: Gundlach: What to do when the Fed raises rates
Gundlach is wrong most of the time. He has no idea what the long bond "wants".
- Tue Aug 11, 2015 2:20 pm
- Forum: Personal Consumer Issues
- Topic: Anti-smartphone [basic phone + paper planner & address book] anyone??
- Replies: 42
- Views: 4635
Re: Anti-smartphone [basic phone + paper planner & address book] anyone??
Bulky $500 smartphones and their $100 a month "contracts" are good for teenagers who snapchat their kissy faces to each other during class. Compact $30 flip-phones, contract-free, $20 a month, are good for adults who need a simple way to talk and text. Use your computer for calendar and address. If ...
- Mon Aug 03, 2015 7:25 pm
- Forum: Investing - Theory, News & General
- Topic: Mark Hulbert: Stock market 3.5%/yr over next decade
- Replies: 28
- Views: 3476
Re: Mark Hulbert: Stock market 3.5%/yr over next decade
3% sounds high. GMO/Grantham are forecasting -2% real for US stocks over the next 7 years...and they have an excellent track record with these forecasts. Do you have evidence of their "excellent track record"? Let's say, 2010 to present? L. GMO makes 7-10 year forecasts, not short term. Some discus...
- Mon Aug 03, 2015 1:02 am
- Forum: Investing - Theory, News & General
- Topic: Mark Hulbert: Stock market 3.5%/yr over next decade
- Replies: 28
- Views: 3476
Re: Mark Hulbert: Stock market 3.5%/yr over next decade
3% sounds high. GMO/Grantham are forecasting -2% real for US stocks over the next 7 years...and they have an excellent track record with these forecasts.
- Wed Jul 22, 2015 4:28 pm
- Forum: Investing - Theory, News & General
- Topic: Why I Said "No" to Peer-to-Peer Lending
- Replies: 66
- Views: 8746
Re: Why I Said "No" to Peer-to-Peer Lending
I'm always surprised to see people holding a portfolio with an expected real return of -1 to 1%. That basically means you have to save everything you hope to spend later in retirement. I'd rather see my portfolio do some of the heavy lifting, so I've decided to take some risk with it. So far, that ...
- Wed Jul 22, 2015 3:14 pm
- Forum: Investing - Theory, News & General
- Topic: Why I Said "No" to Peer-to-Peer Lending
- Replies: 66
- Views: 8746
Re: Why I Said "No" to Peer-to-Peer Lending
You're talking about the stock market, right?HomerJ wrote:But the economy has been growing.Maverick3320 wrote:From personal experience, my returns have been around 11% over the last few years.
What happens when the next crash happens, and millions of people lose their jobs?
11%
11%
11%
11%
-80%
- Wed Jul 22, 2015 11:31 am
- Forum: Investing - Theory, News & General
- Topic: Why I Said "No" to Peer-to-Peer Lending
- Replies: 66
- Views: 8746
Re: Why I Said "No" to Peer-to-Peer Lending
Isn't this the noise we should be tuning out? How is the ramblings of a random blogger actionable or relevant?
- Fri Jul 10, 2015 5:10 pm
- Forum: Investing - Theory, News & General
- Topic: How do you do the Larry Portfolio?
- Replies: 54
- Views: 10282
Re: How do you do the Larry Portfolio?
Contrary to what is asserted often on this board, DFA access does not have to be expensive at all .... Sorry, maybe I missed something. What's the inexpensive way to access DFA? 1. Hire advisor 2. Only let them manage funds for the equity side of your portfolio 3. get set up with BOSVX/DWUSX 4. use...
- Thu Jun 25, 2015 5:27 pm
- Forum: Investing - Theory, News & General
- Topic: AQR/Asness: Stocks, Bonds: Bleak Outlook
- Replies: 108
- Views: 11893
Re: AQR/Asness: Stocks, Bonds: Bleak Outlook
As you can see from this heat map, there are many periods in which US stocks have returned zip for over two decades. So, it wouldn't be extraordinary for that to happen over the next 2-3 decades. Plan accordingly. I'm not buying it. The chart includes an incredibly vague disclaimer "Includes divide...
- Thu Jun 25, 2015 3:46 pm
- Forum: Investing - Theory, News & General
- Topic: AQR/Asness: Stocks, Bonds: Bleak Outlook
- Replies: 108
- Views: 11893
Re: AQR/Asness: Stocks, Bonds: Bleak Outlook
If you believe the QSPIX will will be nearly uncorrelated with stocks and bonds going forward it is useful as a hedge... You need more than low correlation to make something "useful." There are many things that have low correlation. For example, actual currency--money under the mattress--is guarant...
- Sat Jun 20, 2015 3:14 pm
- Forum: Investing - Theory, News & General
- Topic: Momentum across time and asset classes
- Replies: 40
- Views: 6454
Re: Momentum across time and asset classes
But with momentum, what I am saying is that--for three real-world mutual-fund implementations of "momentum," I did not even see the higher return. You are right, current momentum offerings (AQR, iShares) have implementation problems- negative alphas and negative value loadings. I wouldn't look at t...