Search found 247 matches

by MrKnight
Wed Mar 22, 2017 10:35 pm
Forum: Personal Finance (Not Investing)
Topic: Enrolled Agent or CPA for current issues
Replies: 20
Views: 1030

Re: Enrolled Agent or CPA for current issues

Both the CPA and EA can represent you in an audit. The EA can represent you before any state. The CPA is limited by the state he/she is licensed in. That only matters for state income taxes however.
by MrKnight
Mon Mar 20, 2017 10:01 am
Forum: Personal Consumer Issues
Topic: Best way to expand my vocabulary?
Replies: 79
Views: 3246

Re: Best way to expand my vocabulary?

I'm not sure that academic reading is necessary or good, but non-fiction is a plus. Read some John McPhee and Bill Bryson. Both can write about things I wouldn't ordinarily be interested in, but they are masters. For fiction, my two favorites are Richard Russo and Paul Auster. Simple but precise la...
by MrKnight
Mon Mar 20, 2017 8:17 am
Forum: Personal Consumer Issues
Topic: Best way to expand my vocabulary?
Replies: 79
Views: 3246

Re: Best way to expand my vocabulary?

Passive reading will only go so far in enhancing your vocabulary. Understanding the meaning of the word and using it in your own writing/speaking are two different things. If you wish to boost the vocabulary that you employ in your writings/speaking, you need to practice it on a daily basis. Steps t...
by MrKnight
Sat Mar 18, 2017 12:24 am
Forum: Personal Finance (Not Investing)
Topic: CPA misplaced tax information
Replies: 8
Views: 1008

Re: CPA misplaced tax information

Recourse? Well freezing and placing reports on your credit reports which you already have. You can also engage a company that provides credit monitoring services... but you should have that I'd you were victim of OPM hack. Do you mean recourselves against the CPA? Taking your future business elsewhe...
by MrKnight
Fri Mar 03, 2017 12:33 am
Forum: Personal Finance (Not Investing)
Topic: Paid off 80k in student loans in 14 months- At the starting line
Replies: 12
Views: 1377

Re: Paid off 80k in student loans in 14 months- At the starting line

That said, both you and I made a bad decision - student loan debt is super cheap. When did you graduate? Current federal loans are around 7%. I wouldn't call that cheap I stand corrected. I graduated in 2000. Loans were like 2.x% or so. if 7% then yeah, totally pay those off. Only I made the bad de...
by MrKnight
Wed Feb 15, 2017 7:55 am
Forum: Personal Finance (Not Investing)
Topic: Kids in Apartment Sharing Bedroom - Workable?
Replies: 55
Views: 3464

Re: Kids in Apartment Sharing Bedroom - Workable?

Can it be done? Of course it can.

I grew up sleeping on mattresses on the floor with the rest of my family in a studio apartment in NYC.

Certainly not optimal, but most people globally outside of developed nations do live in conditions like that.
by MrKnight
Mon Feb 13, 2017 5:29 pm
Forum: Investing - Theory, News & General
Topic: How Much To Tilt To Small Value?
Replies: 213
Views: 23502

Re: How Much To Tilt To Small Value?

Since we're on the topic, what are you folks opinion regarding optimal value index fund. I use Vanguard Small Cap Value ... I've read some suggesting that it's not the best to capture the small cap value premium. Alternatives I have heard are DFSVX and BOSVX... but VSIAX seems to have robust perform...
by MrKnight
Mon Feb 13, 2017 3:18 pm
Forum: Investing - Theory, News & General
Topic: How Much To Tilt To Small Value?
Replies: 213
Views: 23502

Re: How Much To Tilt To Small Value?

Looks like the value premium has been negative for at least nine years, both in the US and internationally. No one makes the claim that a small cap value premium will persist over every selected time frame. The claim being advanced is that on average, small-cap value comes ahead. 2007 to 2016 growt...
by MrKnight
Mon Feb 13, 2017 10:56 am
Forum: Investing - Theory, News & General
Topic: How Much To Tilt To Small Value?
Replies: 213
Views: 23502

Re: How Much To Tilt To Small Value?

I'm at 100% equity allocation, and close to 50% vanguard small cap value... but I am also 30, so I have a long time horizon.
by MrKnight
Mon Feb 13, 2017 1:10 am
Forum: Investing - Theory, News & General
Topic: How Much To Tilt To Small Value?
Replies: 213
Views: 23502

Re: How Much To Tilt To Small Value?

Investing isn't about certainty, but about putting odds on your side. I feel like this should be a sticky post in all caps. So many arguments around here amount to "yeah, but it might not." Yes, and my pocket aces will occasionally lose, but I'm still betting the crap out of them 100% of ...
by MrKnight
Fri Feb 10, 2017 5:07 pm
Forum: Investing - Theory, News & General
Topic: How Much To Tilt To Small Value?
Replies: 213
Views: 23502

Re: How Much To Tilt To Small Value?

MrKnight I don't think that's it. IMO it's the limits to arbitrage which makes it much more difficult to correct OVERvaluation than under. Under is easy to correct --you just buy. OVER is much harder as have to borrow and go short, which is much more difficult and risky and expensive. And instituti...
by MrKnight
Fri Feb 10, 2017 12:42 pm
Forum: Investing - Theory, News & General
Topic: Why don't stock prices go up on payday?
Replies: 43
Views: 3657

Re: Why don't stock prices go up on payday?

Maybe I am figuring this wrong, but it seems likely to me that a not-insignificant portion of cash influx into the market occurs on paydays (in the form of automatic payroll deductions), which tend to be Fridays. Is there a discernible effect on prices? If not, why not? I suppose it's highly predic...
by MrKnight
Fri Feb 10, 2017 11:34 am
Forum: Investing - Theory, News & General
Topic: How Much To Tilt To Small Value?
Replies: 213
Views: 23502

Re: How Much To Tilt To Small Value?

chatbotte, already explained why and don't know how to explain further. It's simply that large growth doesn't have the negatives that small growth has. So the gap between large growth returns and large value will be much less than it is between small growth and small value (because a significant pa...
by MrKnight
Fri Feb 03, 2017 3:59 pm
Forum: Investing - Theory, News & General
Topic: Index Investors getting a free ride
Replies: 53
Views: 5497

Re: Index Investors getting a free ride

The bold bit. Active managers cannot collectively beat the market by being in the market. Active investors do not trade with passive investors they trade with each other. If the active trader scalps an another active trader it does not put active traders collectively above passive investors. Active...
by MrKnight
Fri Feb 03, 2017 3:44 pm
Forum: Investing - Theory, News & General
Topic: Index Investors getting a free ride
Replies: 53
Views: 5497

Re: Index Investors getting a free ride

* Mr. Bogle's argument that collectively active market traders and total market indexers must have the same return before costs still holds. Why would an actively managed fund be unable to capture market inefficiencies? Inefficiencies can occur after capital was released, or missed at the initial I...
by MrKnight
Fri Feb 03, 2017 2:23 pm
Forum: Investing - Theory, News & General
Topic: Index Investors getting a free ride
Replies: 53
Views: 5497

Re: Index Investors getting a free ride

* Mr. Bogle's argument that collectively active market traders and total market indexers must have the same return before costs still holds. Why would an actively managed fund be unable to capture market inefficiencies? Inefficiencies can occur after capital was released, or missed at the initial I...
by MrKnight
Fri Feb 03, 2017 1:09 pm
Forum: Investing - Theory, News & General
Topic: Index Investors getting a free ride
Replies: 53
Views: 5497

Re: Index Investors getting a free ride

It seems the market ought to self-adjust. If passive investors tip the market too far toward inefficiency opportunities for active investors to find profitable investments should rise. At that point a more than random number of actively-managed funds will begin to beat the index funds and money wil...
by MrKnight
Fri Feb 03, 2017 9:41 am
Forum: Investing - Theory, News & General
Topic: Index Investors getting a free ride
Replies: 53
Views: 5497

Re: Index Investors getting a free ride

I think this is a false characterization. I think the index investor rides the bus for the cheapest fare but still pays. The active investor hops on and off the bus paying a fair each time and maybe takes a taxi or two in the middle that actually takes him back to his home so he has to start all ov...
by MrKnight
Wed Jan 18, 2017 2:34 pm
Forum: Investing - Theory, News & General
Topic: Replicating Index with Individual Stocks vs Index Fund
Replies: 28
Views: 2601

Re: Replicating Index with Individual Stocks vs Index Fund

Eeek! That is not true at all. You are probably thinking of studies that created A LARGE NUMBER of random portfolios and found that, on average, their aggregate performance converges towards the market. An individual portfolio that size would be expected to vary widely from the market. See link abo...
by MrKnight
Wed Jan 18, 2017 2:20 pm
Forum: Investing - Theory, News & General
Topic: Replicating Index with Individual Stocks vs Index Fund
Replies: 28
Views: 2601

Re: Replicating Index with Individual Stocks vs Index Fund

20 randomly selected stocks virtually replicates the return/risk of a index fund. After 20ish thereally is diminishing returns. This was widely quoted going back two or three decades, but recent academic work has contradicted this belief. You cannot have low risk with 20 stocks. Which academic stud...
by MrKnight
Wed Jan 18, 2017 12:04 pm
Forum: Investing - Theory, News & General
Topic: Replicating Index with Individual Stocks vs Index Fund
Replies: 28
Views: 2601

Re: Replicating Index with Individual Stocks vs Index Fund

20 randomly selected stocks virtually replicates the return/risk of a index fund. After 20ish thereally is diminishing returns.
by MrKnight
Fri Jan 13, 2017 11:43 pm
Forum: Investing - Theory, News & General
Topic: Bloomberg - 5 Ominous Signs for the Securities Industry
Replies: 12
Views: 1599

Re: Bloomberg - 5 Ominous Signs for the Securities Industry

Toons wrote:The Internet changed it all.
:happy



Yup, the rise of the internet triggered a corresponding uptick in investing. A real game changer.
by MrKnight
Fri Jan 13, 2017 3:41 pm
Forum: Investing - Help with Personal Investments
Topic: $600,000. Now what?
Replies: 55
Views: 10371

Re: $600,000. Now what?

Not to steal the OP's thunder, but my Vanguard retirement account has generated 15.5% annualized returns over the past 5 years with a 100% equity allocation to Small Cap Value index + Total Market index, and a pure vanguard small cap value index fund has generated returns in excess of 16% annualized...
by MrKnight
Thu Jan 12, 2017 12:14 pm
Forum: Investing - Help with Personal Investments
Topic: $600,000. Now what?
Replies: 55
Views: 10371

Re: $600,000. Now what?

You've done great! Congratulations! Personally, I'd advise to take your winnings and invest it into passive index funds, and perhaps leave a sum to continue playing with (maybe $100K?) and see what happens... no need to continue risking it all. How much do you save monthly now. You said you started ...
by MrKnight
Wed Jan 11, 2017 12:52 pm
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 224
Views: 18326

Re: How Bad was 2008, really?

Tell you the truth, I am not sure I would want to work for the company. Prior compensation is not germaine to present. I am not sure if it is germane or not. Most companies seem to use prior salary as a baseline so they know what to offer an applicant. On the other hand, I think I read a couple sta...
by MrKnight
Wed Jan 11, 2017 9:11 am
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 224
Views: 18326

Re: How Bad was 2008, really?

The implications for having graduated into it the financial crisis lasted for years as each future employer based my new salary on my prior salary. Could you not "inflate" your previous salary so that you could at least earn a fair wage at your new job? Or did they somehow verify that inf...
by MrKnight
Tue Jan 10, 2017 11:09 pm
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 224
Views: 18326

Re: How Bad was 2008, really?

Yes, even ideological politicians can eventually come to their senses in the face of imminent disasters - like I said up thread, no guarantee they will have the political courage to do so the next time. I don't think they "came to their senses." I think they were scared to death by Bernak...
by MrKnight
Tue Jan 10, 2017 2:12 pm
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 224
Views: 18326

Re: How Bad was 2008, really?

I probably could get away doing that, yes, but I was always truthful when asked. I have never seen it personally but I have been told that some jobs will verify your prior salary. I imagine these companies are few and far between however. I agree that lying isn't right, but it doesn't seem right wh...
by MrKnight
Tue Jan 10, 2017 1:58 pm
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 224
Views: 18326

Re: How Bad was 2008, really?

The implications for having graduated into it the financial crisis lasted for years as each future employer based my new salary on my prior salary. Could you not "inflate" your previous salary so that you could at least earn a fair wage at your new job? Or did they somehow verify that inf...
by MrKnight
Tue Jan 10, 2017 1:52 pm
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 224
Views: 18326

Re: How Bad was 2008, really?

Well, I wasn't investing yet but I had graduated from college into it in 2009. A 2009 graduate experienced a very different job market compared to even a 2008 and 2010 graduate, and I don't think anyone really realizes how bad it was for 2009 graduates unless they experienced it first hand. I never ...
by MrKnight
Fri Jan 06, 2017 11:43 pm
Forum: Investing - Help with Personal Investments
Topic: How will the market perform in 2017?
Replies: 45
Views: 3429

Re: How will the market perform in 2017?

My predictions that is subject to change: Irrational euphoria, deregulation, tax cuts, and economic stimulus will lead to a good year for the markets in 2017 like how it was for 2016. Markets will start to cool in 2018. By 2019 we may begin encroaching on a recession... recession has been until this...
by MrKnight
Thu Jan 05, 2017 10:29 pm
Forum: Investing - Help with Personal Investments
Topic: Experienced investor: For your portfolio, at what point compound interest really kick in for you? $500k? $1million+?
Replies: 35
Views: 4556

Re: Experienced investor: For your portfolio, at what point compound interest really kick in for you? $500k? $1million+

I think it depends on your investments and rate of return. If you hold a 100% bond portfolio you probably will need more principal to feel the effects of compounding interest compared to 100% stock portfolio. For myself with a 100% stock portfolio, I began to feel the effects of compounding at $100,...
by MrKnight
Wed Jan 04, 2017 9:23 pm
Forum: Personal Finance (Not Investing)
Topic: Investing in a Masters and Ph.D?
Replies: 101
Views: 5346

Re: Investing in a Masters and Ph.D?

First I would like to start by stating that I love that you wish to go back and earn a masters and Ph.D! Financially, it does not make much sense for those fields however. Are there alternative opportunities for you to academically stimulate your mind? Perhaps earning some designations or certificat...
by MrKnight
Fri Dec 30, 2016 4:49 pm
Forum: Investing - Theory, News & General
Topic: Are International Markets overdue for great gains?
Replies: 43
Views: 3634

Re: Are International Markets overdue for great gains?

My objection is this rationale: If International has been growing at 4% CAGR, then it does so because that growth is what the international market grows at more or less. International stocks are not another version of U.S. stocks. Slower growth now does mean faster growth later. Slower growth now o...
by MrKnight
Sun Dec 18, 2016 3:38 pm
Forum: Local Chapters and Bogleheads Community
Topic: How Did You Become A Boglehead? What Led You Here?
Replies: 168
Views: 14149

Re: How Did You Become A Boglehead? What Led You Here?

I became aware of the website through the finance courses I was taking in undergraduate (2005-2009). Some of the books mentioned bogleheads and this forum. So I popped in to check it out and left. I didn't register at the time however, at the time I was still heavily involved with studying for vario...
by MrKnight
Sat Dec 10, 2016 11:51 pm
Forum: Personal Consumer Issues
Topic: Men's Fashion - Best Bang for Buck
Replies: 79
Views: 7558

Re: Men's Fashion - Best Bang for Buck

I purchase from Kohls Crofts & Barrow 100% cotton shirts when they are on sale and with 30% off coupons+khols cash. This drops the price down to the $20-$30 range for shirts.

I think the shirts are pretty good value .
by MrKnight
Mon Dec 05, 2016 2:12 pm
Forum: Investing - Theory, News & General
Topic: Will increasing levels of automation propel developed markets ahead?
Replies: 3
Views: 448

Will increasing levels of automation propel developed markets ahead?

I have been contemplating the economic impacts of automation and wish to what others think on the subject. What will the economic impact of increasing levels of automation on the global market? Automated factories and production, automated vehicles, etc. Will increasing levels of automation result i...
by MrKnight
Wed Nov 30, 2016 11:00 am
Forum: Investing - Theory, News & General
Topic: Are stocks over bought as of late?
Replies: 17
Views: 1798

Re: Are stocks over bought as of late?

"We've had such a run and the market is very overbought," said Cramer, portfolio manager of the Action Alerts PLUS Charitable Trust, in an interview at the New York Stock Exchange on Wednesday. he said that when the S&P was at 2152 in July 2015, its now at 2200. what does that mean to...
by MrKnight
Wed Nov 23, 2016 9:07 pm
Forum: Investing - Theory, News & General
Topic: Boglehead Contest leaders as S&P 500 Index makes new high
Replies: 17
Views: 2857

Re: Boglehead Contest leaders as S&P 500 Index makes new high

It's safe to say that the current leadership board will change drastically by the time this contest ends.
by MrKnight
Wed Nov 23, 2016 10:12 am
Forum: Investing - Theory, News & General
Topic: small cap value? overplayed?
Replies: 30
Views: 3857

Re: small cap value? overplayed?

OP, You cannot buy confidence. So, you either read enough and convinced that small cap value is worth tilting or not. And, you need to be sufficiently convinced since it may under-perform for a very long time and you may lose as opposed to gain from tilting. 8% of my portfolio is in the small cap v...
by MrKnight
Wed Nov 23, 2016 9:30 am
Forum: Investing - Theory, News & General
Topic: small cap value? overplayed?
Replies: 30
Views: 3857

Re: small cap value? overplayed?

OP, You cannot buy confidence. So, you either read enough and convinced that small cap value is worth tilting or not. And, you need to be sufficiently convinced since it may under-perform for a very long time and you may lose as opposed to gain from tilting. 8% of my portfolio is in the small cap v...
by MrKnight
Tue Nov 01, 2016 1:35 pm
Forum: Investing - Theory, News & General
Topic: Your thoughts on implications of increasing automation of manufacturing.
Replies: 23
Views: 1865

Re: Your thoughts on implications of increasing automation of manufacturing.

The followup questions is: Assuming that automation results in less outsourcing of jobs... does that environment promote equivalent growth between developed economies and emerging economies? Or will developed economies surge ahead? This would have some investing implications I imagine if one is inte...
by MrKnight
Mon Oct 31, 2016 11:36 am
Forum: Investing - Theory, News & General
Topic: Your thoughts on implications of increasing automation of manufacturing.
Replies: 23
Views: 1865

Your thoughts on implications of increasing automation of manufacturing.

What are your thoughts on what the implications of increased automation of manufacturing? Will increased automation continue to promote the trend of outsourcing manufacturing internationally? Or will there be a reversal of this trend as human cost of manufacturing drops and there is instead a increa...
by MrKnight
Fri Oct 21, 2016 8:24 pm
Forum: Personal Consumer Issues
Topic: Does it matter what type of college one goes to?
Replies: 250
Views: 16248

Re: Does it matter what type of college one goes to?

I'm an attorney and where you went to law school never stops mattering. I also won't go to a doctor whose medical school isn't a name I recognize. I went to a name law school, and I've worked at places were almost everyone else did as well. My clerkship came out of an internship I got with an alum....
by MrKnight
Fri Oct 21, 2016 8:48 am
Forum: Investing - Theory, News & General
Topic: "Jack Bogle wouldn’t risk investing outside the US"
Replies: 101
Views: 8045

Re: "Jack Bogle wouldn’t risk investing outside the US"

Don't agree with Jack at all on this one. Maybe it makes sense at his age (87) but not mine (42). Way too much uncertainty. With debt at 100% of GDP and unfunded liabilities manyfold greater, I'm not putting all my eggs in this basket. Already my human capital, home, and bonds are 100% invested in ...
by MrKnight
Fri Oct 21, 2016 8:42 am
Forum: Investing - Theory, News & General
Topic: How the Internet Destroyed Actively Managed Funds
Replies: 24
Views: 2739

Re: How the Internet Destroyed Actively Managed Funds

I doubt the internet has all that much to do with it. Morningstar has long been available at most public libraries in hard-copy. There are far more web sites where you can get bad information on picking stocks than you can get advice to buy indexes. If anything has benefited from the internet it is...
by MrKnight
Thu Oct 20, 2016 10:04 am
Forum: Investing - Theory, News & General
Topic: WSJ - The Dying Business of Picking Stocks
Replies: 38
Views: 6247

Re: WSJ - The Dying Business of Picking Stocks

I am concerned over this as well. It reminds me of the breakout strategies for buying stocks that were profitable many years ago, before they became widely known. Almost any strategy that becomes widely known, at least in the stock market, ceases to work very well. Whether this observation can be a...
by MrKnight
Mon Oct 17, 2016 3:58 pm
Forum: Investing - Theory, News & General
Topic: Is information a bad thing for returns??
Replies: 42
Views: 2120

Re: Is information a bad thing for returns??

... Those adhering to the Boglehead investment method implicitly subscribe to the efficient market hypothesis model because it is fundamental for the Boglehead investment method to function. False on its face. The Boglehead investment method, as you put it, relies on the Cost Matters Hypothesis , n...
by MrKnight
Mon Oct 17, 2016 11:52 am
Forum: Investing - Theory, News & General
Topic: Is information a bad thing for returns??
Replies: 42
Views: 2120

Re: Is information a bad thing for returns??

... Those adhering to the Boglehead investment method implicitly subscribe to the efficient market hypothesis model because it is fundamental for the Boglehead investment method to function. False on its face. The Boglehead investment method, as you put it, relies on the Cost Matters Hypothesis , n...

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