Search found 3257 matches

by JoMoney
Sun May 29, 2016 5:33 pm
Forum: Investing - Theory, News & General
Topic: How much do costs matter?
Replies: 24
Views: 1386

Re: How much do costs matter?

http://www.npr.org/2015/10/17/436993646/three-investment-gurus-share-their-model-portfolios#bogle "Cost turns out to be everything, It's just what I've always called the 'relentless rules of humble arithmetic.' Simplicity underlies the best investment strategies. Basic arithmetic works. Keep y...
by JoMoney
Fri May 27, 2016 7:37 pm
Forum: Investing - Theory, News & General
Topic: The little secret of passive investng
Replies: 14
Views: 3267

Re: The little secret of passive investng

There's some interesting comments by "Index Industry Leaders" in this article relating to the idea of index front-running http://www.etf.com/publications/journalofindexes/joi-articles/2325-index-industry-leaders-in-their-own-words.html?nopaging=1 I like this particular comment: ...alternat...
by JoMoney
Fri May 27, 2016 5:01 pm
Forum: Investing - Theory, News & General
Topic: IPOs as different asset class?
Replies: 5
Views: 371

Re: IPOs as different asset class?

I think so. But it's the classic "lemons problem" https://www.tau.ac.il/~spiegel/teaching/corpfin/Topic4.pdf Businesses will only go IPO if they believe they'll get a higher valuation than they're worth, buyers suspecting this will want to pay less believing what's being offered is 'junk',...
by JoMoney
Fri May 27, 2016 4:20 pm
Forum: Investing - Help with Personal Investments
Topic: If TSM and SP500 are so alike, why even do TSM?
Replies: 49
Views: 4586

Re: If TSM and SP500 are so alike, why even do TSM?

Sp500 is better imo, assuming you also add sp400 and sp600. If you weight those three funds the same as the TSM it outperforms TSM. Why? Sp500, 400, and 600 exclude all the junk stocks not making a profit. The cap-weighted holding of the S&P500 + 400 + 600 is the S&P1500. I prefer the S&...
by JoMoney
Fri May 27, 2016 2:57 pm
Forum: Investing - Help with Personal Investments
Topic: If TSM and SP500 are so alike, why even do TSM?
Replies: 49
Views: 4586

Re: If TSM and SP500 are so alike, why even do TSM?

... Saying that it is not a systematic, unbiased selection of the 500 largest cap stocks is correct, but it does not follow that it's not a large-cap index... Then despite semantics, we're in agreement. If someone's key criteria was large-cap they might prefer something else, but like Total Stock M...
by JoMoney
Fri May 27, 2016 2:10 am
Forum: Investing - Theory, News & General
Topic: What is evidence based investing?
Replies: 27
Views: 1800

Re: What is evidence based investing?

There's a difference between using the "evidence" to avoid major pitfalls we know exist, vs. using "evidence" to chase hoped for performance. There is strong evidence that being levered to the hilt in stocks will have higher returns than no leverage. There is evidence that someti...
by JoMoney
Thu May 26, 2016 11:46 pm
Forum: Investing - Help with Personal Investments
Topic: US REIT P/E seem high - buy anyway for diversification?
Replies: 39
Views: 2097

Re: US REIT P/E seem high - buy anyway for diversification?

I agree with Taylor. It's an added complexity that's just not necessary. I think that's especially the case for someone that isn't solidly of their own opinion on what/why they're investing in something. Looking for someone else to sell you on buying some sector fund is a bad idea. Diversification i...
by JoMoney
Thu May 26, 2016 10:04 pm
Forum: Investing - Theory, News & General
Topic: The little secret of passive investng
Replies: 14
Views: 3267

Re: The little secret of passive investng

I don't worry about it... Scare tactics by the people who want you to pay them for their special sauce. He's talking up the not at all 'secret' observation that stocks entering into the S&P500 get a boost in valuation. Some say there's potential to make money arbitraging stocks when they enter o...
by JoMoney
Thu May 26, 2016 6:49 pm
Forum: Investing - Help with Personal Investments
Topic: If TSM and SP500 are so alike, why even do TSM?
Replies: 49
Views: 4586

Re: If TSM and SP500 are so alike, why even do TSM?

But the S&P 500 isn't a large-cap index, that is to say it isn't a systematic, unbiassed selection of the 500 largest cap stocks in the market. I disagree that the S&P 500 isn't a large-cap index, and I don't think we should define large-cap index fund in a way that happens to suit your arg...
by JoMoney
Thu May 26, 2016 4:50 pm
Forum: Investing - Help with Personal Investments
Topic: If TSM and SP500 are so alike, why even do TSM?
Replies: 49
Views: 4586

Re: If TSM and SP500 are so alike, why even do TSM?

I'll tell you some of the reasons I prefer the S&P500 over TSM, TSM isn't offered in my 401k, but S&P500 is. I still buy the 500 in my IRA and taxable accounts though as well, because I prefer it. The people who influenced me the most in my decision to switch to indexing called it out by nam...
by JoMoney
Wed May 25, 2016 10:10 pm
Forum: Investing - Help with Personal Investments
Topic: Roll call Warren Buffet 90/10 portfolio
Replies: 42
Views: 3448

Re: Role call Warren Buffet 90/10 portfolio

Count me in since 2008. Not really 90/10 though, more like roughly 18 months of living expenses in short-term bonds (which currently represents a lot less than 10% of my portfolio). I also have other insurance, pension, severance, and some other fixed income like security that I don't count as my i...
by JoMoney
Wed May 25, 2016 7:53 pm
Forum: Investing - Help with Personal Investments
Topic: Roll call Warren Buffet 90/10 portfolio
Replies: 42
Views: 3448

Re: Role call Warren Buffet 90/10 portfolio

Count me in since 2008. Not really 90/10 though, more like roughly 18 months of living expenses in short-term bonds (which currently represents a lot less than 10% of my portfolio). I also have other insurance, pension, severance, and some other fixed income like security that I don't count as my in...
by JoMoney
Wed May 25, 2016 7:44 pm
Forum: Investing - Theory, News & General
Topic: What are some advantages and disadvantages in owing ADRs and owning the same company in home country?
Replies: 7
Views: 318

Re: What are some advantages and disadvantages in owing ADRs and owning the same company in home country?

https://www.sec.gov/investor/alerts/adr-bulletin.pdf

First things that come to mind are additional fees for the bank providing custody of the actual shares the ADR is derivative of.
How taxes are applied, and the ability to actually vote your shares interests could be a big difference as well.
by JoMoney
Wed May 25, 2016 7:19 pm
Forum: Investing - Theory, News & General
Topic: Why do we believe in the market?
Replies: 59
Views: 5115

Re: Why do we believe in the market?

...Don't believe in every chart you see. Good advice ...This one shows less than 50% real appreciation in the S+P between 1871 and 1949. http://www.advisorperspectives.com/dshort/charts/markets/SP-Composite-secular-trends.gif I hope you're using that as an example of a bad chart, it fails to includ...
by JoMoney
Wed May 25, 2016 5:21 pm
Forum: Investing - Help with Personal Investments
Topic: I just shorted the S&P, now what do I do?
Replies: 53
Views: 5187

Re: I just shorted the S&P, now what do I do?

Play money. Shorting the s&p 500. This whole thread is making my head hurt. |00|22|90|0f|38|c4|14|fe|b5|ec|04|17|08|00|45|00|00|34|5d|2e|40|00|80|06|00|00|ac|13|04|de|32|f4|b7|6d|c1|36|01|bb|65|d6|12|f8|00|00|00|00|80|02|20|00|9b|79|00|00|02|04|05|b4|01|03|03|08|01|01|04|02| :beerCheers, packet...
by JoMoney
Wed May 25, 2016 4:45 pm
Forum: Investing - Theory, News & General
Topic: This Bull Seems to be Getting Pretty Long In the Tooth
Replies: 69
Views: 5822

Re: This Bull Seems to be Getting Pretty Long In the Tooth

Long in the tooth?
Maybe if my only reference point was the 2003-2008 period. If I try to contrast the period since 2009 to other periods it looks like we may just be getting started.
Image
by JoMoney
Wed May 25, 2016 6:29 am
Forum: Investing - Theory, News & General
Topic: Why do we believe in the market?
Replies: 59
Views: 5115

Re: Why do we believe in the market?

Why do we believe the sun will come out tomorrow? Why are we so confident the sun will shine again at some point in the future? If I plant a seed that I could eat today, am I just gambling that it will be able to grow into something more since we don't know for certain if it will sprout and grow to...
by JoMoney
Tue May 24, 2016 2:41 pm
Forum: Investing - Theory, News & General
Topic: OMG - The Tell Tale Chart - '08 & the Fed
Replies: 11
Views: 1563

Re: OMG - The Tell Tale Chart - '08 & the Fed

Back in '06 and '07, how did the money market yields compare to interest on good FDIC savings accounts? In other words, was there a good reason to use a MM account instead of a bank savings account, aside from the convenience of having it in the same place as one's brokerage investments? Just curio...
by JoMoney
Tue May 24, 2016 6:12 am
Forum: Investing - Theory, News & General
Topic: Why do we believe in the market?
Replies: 59
Views: 5115

Re: Why do we believe in the market?

Why do we believe the sun will come out tomorrow? Why are we so confident the sun will shine again at some point in the future? If I plant a seed that I could eat today, am I just gambling that it will be able to grow into something more since we don't know for certain if it will sprout and grow to ...
by JoMoney
Mon May 23, 2016 4:14 pm
Forum: Investing - Help with Personal Investments
Topic: Monsanto-BayerAG
Replies: 19
Views: 1525

Re: Monsanto-BayerAG

I remember a few years ago people complaining about Buffet buying up all the big consumer staple companies that many considered dividend "staples" for people into dividend stocks. Berkshire Hathaway doesn't pay a dividend and it messed with their plans to buy and hold forever... Such is li...
by JoMoney
Mon May 23, 2016 3:57 pm
Forum: Investing - Help with Personal Investments
Topic: I just shorted the S&P, now what do I do?
Replies: 53
Views: 5187

Re: I just shorted the S&P, now what do I do?

Good luck! I mean it, I'm still accumulating myself and have confidence in long-term prospects even if this isn't a "good" year :beer Something to consider: Take a look at the historical returns of the S&P in a DFA Matrix book: http://www.ifa.com/pdf/matrix_book_us_2016.pdf Just look a...
by JoMoney
Mon May 23, 2016 3:24 pm
Forum: Investing - Theory, News & General
Topic: Total market/passive investing as a self-destructive paradigm
Replies: 10
Views: 1522

Re: Total market/passive investing as a self-destructive paradigm

...The ability of diversified passive stock market investing to beat active investing relies on the efficient market theory--that markets incorporate and reflect all information, rendering individual stock picking useless... As others have mentioned, taking a low cost, broadly diversified index app...
by JoMoney
Mon May 23, 2016 2:22 am
Forum: Investing - Theory, News & General
Topic: Tracking FTSE global all cap ex US
Replies: 8
Views: 708

Re: Tracking FTSE global all cap ex US

It's not something I track... but if I did, Morningstar: FTSE Global All Cap ex US TR USD FTSE Global All Cap ex US (USA) NR USD If you're comparing it to a fund like VFWAX, you'd want to use the "NR" Net Return index that is net of foreign taxes that are withheld for US investors. The &qu...
by JoMoney
Sun May 22, 2016 4:10 pm
Forum: Investing - Help with Personal Investments
Topic: Which fund(s) for automatic monthly withdrawls?
Replies: 8
Views: 443

Re: Which fund(s) for automatic monthly withdrawls?

The Y-axis of that graph is deceptive since it doesn't go anywhere near even 85%. :) A casual look might make one think it goes to 0%. Ha! Fear! Uncertainty! Doubt! One could just withdraw an extra 5% every year and not worry about a 5% or less drop. The point is if you had put a certain amount of ...
by JoMoney
Sun May 22, 2016 3:52 pm
Forum: Investing - Help with Personal Investments
Topic: Which fund(s) for automatic monthly withdrawls?
Replies: 8
Views: 443

Re: Which fund(s) for automatic monthly withdrawls?

I would just use the money-market for simplicity and assurance that the money would be there. A short-term bond fund will probably be fine, but it's that probably aspect you have to think about. How much assurance do you need that a certain amount of money will be there when you need it? http://i68....
by JoMoney
Sun May 22, 2016 3:32 pm
Forum: Investing - Help with Personal Investments
Topic: Vg Prime MM Fund vs. VG Ultra ST Bond Fund
Replies: 23
Views: 1601

Re: Vg Prime MM Fund vs. VG Ultra ST Bond Fund

... Is there anything else for one to consider besides these factors listed above? One issue, that both funds could be subject to, is exit fees or other control gates. Although, even if the fund was completely frozen for whatever reason and had to be shutdown and liquidated in an orderly fashion, i...
by JoMoney
Sat May 21, 2016 11:37 pm
Forum: Personal Finance (Not Investing)
Topic: Is this a dumb idea?? [Asset allocation for retirement]
Replies: 16
Views: 2130

Re: Is this a dumb idea??

livesoft wrote:Sounds like you created some buckets. Buckets are not needed except as a psychological crutch. If you need the crutch, then make buckets. Or talk to Uncle Drew.

Real ballers get buckets. I get buckets.
by JoMoney
Sat May 21, 2016 11:03 pm
Forum: Investing - Help with Personal Investments
Topic: How do I invest in artificial intelligence?
Replies: 59
Views: 3489

Re: How do I invest in artificial intelligence?

Regardless of whoever actually starts implementing and selling such systems, if it actually takes off, IBM seems well postured to get a cut of it http://www.freepatentsonline.com/result.html?p=22&sort=relevance&srch=top&query_txt=an%2FIBM+%22Expert+system%22&patents=on I've heard som...
by JoMoney
Sat May 21, 2016 3:03 pm
Forum: Investing - Help with Personal Investments
Topic: Can not access my vanguard account!
Replies: 11
Views: 800

Re: Can not access my vanguard account!

livesoft wrote:I just logged into your account and it seems that everything is fine.

:D very funny, but probably not for OP... Glad they got the situation sorted.
by JoMoney
Fri May 20, 2016 7:09 pm
Forum: Investing - Theory, News & General
Topic: Burton Malkiel: "I think [commodities] should be in every portfolio."
Replies: 35
Views: 2693

Re: Burton Malkiel: "I think [commodities] should be in every portfolio."

Can Bogleheads please comment on Burton Malkiel's idea that commodities producers should be in every portfolio? ... My two cents: Commodities are essentially on inverse of how money is doing, if commodities are up it's because the dollars are worth less, broadly it's pretty much how inflation is me...
by JoMoney
Fri May 20, 2016 2:25 am
Forum: Investing - Theory, News & General
Topic: Q: 1981, flawed small cap data
Replies: 2
Views: 397

Re: Q: 1981, flawed small cap data

From another thread https://www.bogleheads.org/forum/viewtopic.php?f=1&t=191583&newpost=2910525 on the S&P500 vs. TSM: The S&P 500 was originally intended to measure the whole market, it always used to be thought of as essentially the whole market. When a 1981 paper ( based in flawe...
by JoMoney
Thu May 19, 2016 3:52 pm
Forum: Investing - Help with Personal Investments
Topic: If TSM and SP500 are so alike, why even do TSM?
Replies: 49
Views: 4586

Re: If TSM and SP500 are so alike, why even do TSM?

This is one of those topics that comes up on here, trying to compare/contrast S&P500/TSM, that I find quite curious. Both are fine funds and there is just not that much difference between them. A question I think would be slightly more interesting to explore, is comparing ownership of that botto...
by JoMoney
Wed May 18, 2016 3:52 pm
Forum: Investing - Help with Personal Investments
Topic: Where does ER income come from?!
Replies: 14
Views: 1285

Re: Where does ER income come from?!

(duplicate info deleted)
by JoMoney
Wed May 18, 2016 3:46 pm
Forum: Investing - Theory, News & General
Topic: If you keep exchanging your funds around in your AA, will you pay more in fees?
Replies: 8
Views: 678

Re: If you keep exchanging your funds around in your AA, will you pay more in fees?

Some funds will stop you from purchasing if you trade too much. In Vanguard mutual funds they'll typically suspend your ability to buy new shares of a fund you've sold in the past 30 days, which would limit the number of round trips you can make on a fund within a year. If you trade mutual funds exc...
by JoMoney
Tue May 17, 2016 2:07 pm
Forum: Investing - Theory, News & General
Topic: "Index Funds Are Good Corporate Governors"
Replies: 2
Views: 362

Re: "Index Funds Are Good Corporate Governors"

Here's another recent article, by one of the authors of the research paper: https://hbr.org/2016/05/research-index-funds-are-improving-corporate-governance Here's a SSRN link to the paper, the link in the Morningstar article is a pay one: Passive Investors, Not Passive Owners http://time.com/money/3...
by JoMoney
Tue May 17, 2016 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable Account - SP500 or TSM??
Replies: 6
Views: 606

Re: Taxable Account - SP500 or TSM??

I'd imagine the S&P500 fund is both more tax efficient and less risky that TSM by virtue of having slightly higher dividend rate (tax wise) and not having small caps (volatility wise). Wouldn't the slightly higher dividend rate of the S&P 500 make it LESS tax efficient? Wouldn't not having ...
by JoMoney
Tue May 17, 2016 1:18 pm
Forum: Personal Consumer Issues
Topic: Is it OK to leave home wifi on?
Replies: 55
Views: 3611

Re: Is it OK to leave home wifi on?

You really think criminals are driving around the 'burbs and hacking wifi's so they can perform untraceable cyber-crimes? From my driveway? :oops: This was the field I worked in at my last job. This is exactly what they do. They don't have to be sitting in your driveway. A good yagi antenna can eas...
by JoMoney
Tue May 17, 2016 1:07 pm
Forum: Personal Consumer Issues
Topic: Is it OK to leave home wifi on?
Replies: 55
Views: 3611

Re: Is it OK to leave home wifi on?

I think now'a'days, it's just presumed that most tech devices will be very outdated in a couple years, it's useful life will be shortened more by technological advances than by deteriorating from usage. Not everybody runs out and spends money on newer stuff when what they have is fine for their pur...
by JoMoney
Mon May 16, 2016 4:07 pm
Forum: Personal Consumer Issues
Topic: Is it OK to leave home wifi on?
Replies: 55
Views: 3611

Re: Is it OK to leave home wifi on?

... So, it could be that leaving them on all the time could shorten the useful life. I wonder what BH IT experts say about this issue. This used the be a frequently debated issue regarding PC's, in one camp you had those who believed the moving parts (fans, hard disk drives) would wear over time an...
by JoMoney
Sat May 14, 2016 8:26 pm
Forum: Investing - Help with Personal Investments
Topic: S&P 500 real return since 2000
Replies: 33
Views: 3314

Re: S&P 500 real return since 2000

From 03/01/2000 through 04/30/2016, any lump sum investment in VFINX doubled in size. I wish it would have grown more, but it's one of the best options most of us have. The problem I think a lot of people run into, is relatively speaking, just about any other investment someone might have considere...
by JoMoney
Sat May 14, 2016 7:35 pm
Forum: Investing - Help with Personal Investments
Topic: S&P 500 real return since 2000
Replies: 33
Views: 3314

Re: S&P 500 real return since 2000

... So in studying that website a bit can someone explain the difference between cagr and irr? There seems to be quite the difference in value between the two numbers. I thought they meant relatively the same thing. CAGR is usually measuring the returns from time A to B, IRR is usually accounting f...
by JoMoney
Sat May 14, 2016 6:06 pm
Forum: Investing - Help with Personal Investments
Topic: S&P 500 real return since 2000
Replies: 33
Views: 3314

Re: S&P 500 real return since 2000

But over that period what if you just put your money in a stock portfolio consisting of JNJ, MCD, KO, PG, XOM, GE & MSFT? I have no idea what the answer is. This would be interesting to me also. I'm sure it would be much more volatile but not sure on total return. Portfolio Visualizer is great ...
by JoMoney
Sat May 14, 2016 4:44 pm
Forum: Investing - Help with Personal Investments
Topic: S&P 500 real return since 2000
Replies: 33
Views: 3314

Re: S&P 500 real return since 2000

...I was doing some research and saw that since March of 2000 through April 2016 the real return of the S&P was only 1.66%. That's not very good... Could be worse :shock: From March 2000 through April 2016 , I get roughly 4.6% nominal return and 2.4% real inflation adjusted using the Ibbotson A...
by JoMoney
Sat May 14, 2016 7:03 am
Forum: Investing - Theory, News & General
Topic: Classic Bernstein 7 — The Great Fund Fee Mystery
Replies: 11
Views: 1750

Re: Classic Bernstein 7 — The Great Fund Fee Mystery

It's interesting that he didn't find any added explanation from turnover. This study: Cross Trading by Investment Advisers: Implications for Mutual Fund Performance seems to have found significant penalty when (rather than generic turnover) it's measured on the level of "cross trading" act...
by JoMoney
Sat May 14, 2016 4:27 am
Forum: Personal Finance (Not Investing)
Topic: Retire Early -or- Not At All
Replies: 31
Views: 3443

Re: Retire Early -or- Not At All

I like the idea of part time work, maybe just so I have something to compare to my off time... When you're unemployed, there's no vacation :shock:
by JoMoney
Fri May 13, 2016 9:13 pm
Forum: Investing - Theory, News & General
Topic: Are corporate bonds a better deal then BAA10Y suggests?
Replies: 7
Views: 635

Re: Are corporate bonds a better deal then BAA10Y suggests?

In Jan 2008 iShares Corporate Bond ETF LQD reached a high of $108.26, in Oct 2008 it bottomed out at $76.05... the coupon payments stayed relatively steady, and prices eventually 'normalized, but if someone wanted their money back early they might have taken a 30% haircut. The Treasury Bond ETF IEF ...
by JoMoney
Fri May 13, 2016 8:14 pm
Forum: Investing - Theory, News & General
Topic: Jessie Livermore on indexing
Replies: 3
Views: 826

Re: Jessie Livermore on indexing

There is a recent thread here: viewtopic.php?f=10&t=190446&newpost=2903054
that's been discussing that topic
by JoMoney
Fri May 13, 2016 7:33 pm
Forum: Investing - Theory, News & General
Topic: Best withdrawal strategy?
Replies: 16
Views: 1473

Re: Best withdrawal strategy?

...Depending on your rules you can get huge AA changes. Imagine you ... ... ... Making up imaginary scenarios about what you think a straw man might do is irrelevant. The Kitces article I linked above I think gives a reasonably fair overview. Some people prefer to manage their fixed income in a man...
by JoMoney
Fri May 13, 2016 7:08 pm
Forum: Investing - Theory, News & General
Topic: Best withdrawal strategy?
Replies: 16
Views: 1473

Re: Best withdrawal strategy?

A related Michael Kitces article:
https://www.kitces.com/blog/are-retirem ... on-mirage/
"...Which means in reality, the bucket strategy ends out producing substantively similar asset allocations as a systematic withdrawal strategy..."
by JoMoney
Fri May 13, 2016 7:04 pm
Forum: Investing - Theory, News & General
Topic: Best withdrawal strategy?
Replies: 16
Views: 1473

Re: Best withdrawal strategy?

If you think it through, "A" and "B" would be doing the same thing. "A" would be forced to sell more bonds to get their allocation back into alignment (because stocks fell they would be under represented in the portfolio), "B" would be selling bonds for other ...

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