Search found 100 matches

by NibbanaBanana
Sat Apr 22, 2017 7:43 am
Forum: Personal Consumer Issues
Topic: Best surface for garage, epoxy, polished concrete, something else?
Replies: 21
Views: 2005

Re: Best surface for garage, epoxy, polished concrete, something else?

I had new concrete and applied a good coat of Thompson's Water Seal and let it soak in. It worked excellently for keeping the concrete dust from coming up and was very cheap. Also helps to prevent stains from oil and grease and other auto fluids.
by NibbanaBanana
Fri Apr 21, 2017 12:48 pm
Forum: Investing - Theory, News & General
Topic: Article-Argument against Buffet and Bogle's International Advice
Replies: 36
Views: 3982

Re: Article-Argument against Buffet and Bogle's International Advice

I have a small allocation to international equities because I value the diversification. I also understand and hate that it exposes me to the risk of currency fluctuations on top of the normal market risk that comes from investing in U.S. based companies. That said, I intend to stay the course and ...
by NibbanaBanana
Wed Apr 19, 2017 6:15 pm
Forum: Investing - Help with Personal Investments
Topic: Quick Dividend Automatic Reinvesting Question
Replies: 6
Views: 660

Re: Quick Dividend Automatic Reinvesting Question

S&P dividends are remarkably robust. From 1960 - 2000 there were only a couple instances where dividends were cut, and by less than 5%. In the 2002 crash they were cut about 5% but recovered quickly. In the 2008 crash the entire financial sector stopped paying dividends but the S&P dividends...
by NibbanaBanana
Tue Apr 18, 2017 8:09 am
Forum: Investing - Theory, News & General
Topic: Is all the money flowing into index funds bad?
Replies: 21
Views: 2907

Re: Is all the money flowing into index funds bad?

Seems to me that indexing effectively decreases the float of stocks overall. This should increase market volatility.
by NibbanaBanana
Thu Apr 13, 2017 1:09 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing to control risk doesn't make sense to me
Replies: 160
Views: 9829

Re: Rebalancing to control risk doesn't make sense to me

There is a real possibility that the stock market could lose 90%, or even 99%, of its value, and it could take decades or centuries to recover. Is it likely to happen at some time in "future history"? I don't know, but I think so, given enough time. Is it likely to happen in our lifetime?...
by NibbanaBanana
Wed Apr 12, 2017 8:36 am
Forum: Personal Finance (Not Investing)
Topic: Extreme Frugality vs Living Life - Where do you draw the line?
Replies: 77
Views: 8290

Re: Extreme Frugality vs Living Life - Where do you draw the line?

It depends on if you think buying things, experiences, etc, or consumerism and materialism, is going to bring you lasting happiness. As opposed to hoarding money? If you advocate giving away all your money then I think your argument holds more water. I think that some people on here, perhaps myself...
by NibbanaBanana
Wed Apr 12, 2017 8:29 am
Forum: Investing - Theory, News & General
Topic: Rebalancing to control risk doesn't make sense to me
Replies: 160
Views: 9829

Re: Rebalancing to control risk doesn't make sense to me

I agree with the OP. I wrote a rebalancing simulation code. I didn't look at volatility, only cumulative returns. The bottom line was, how effective rebalancing is at improving returns depends on how negatively correlated the two asset classes are and how close their long term returns are individua...
by NibbanaBanana
Tue Apr 11, 2017 6:31 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing to control risk doesn't make sense to me
Replies: 160
Views: 9829

Re: Rebalancing to control risk doesn't make sense to me

I agree with the OP. I wrote a rebalancing simulation code. I didn't look at volatility, only cumulative returns. The bottom line was, how effective rebalancing is at improving returns depends on how negatively correlated the two asset classes are and how close their long term returns are individual...
by NibbanaBanana
Tue Apr 11, 2017 1:00 pm
Forum: Investing - Theory, News & General
Topic: Mutual Fund Equity Characteristics
Replies: 0
Views: 174

Mutual Fund Equity Characteristics

The Portfolio & Management tab of Vanguards mutual fund description lists equity characteristics. p/e, p/b, return on equity, etc. Are these numbers portfolio capitalization weighted or are they equal weighted averages?
by NibbanaBanana
Tue Apr 11, 2017 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Extreme Frugality vs Living Life - Where do you draw the line?
Replies: 77
Views: 8290

Re: Extreme Frugality vs Living Life - Where do you draw the line?

It depends on if you think buying things, experiences, etc, or consumerism and materialism, is going to bring you lasting happiness.
by NibbanaBanana
Mon Apr 10, 2017 9:11 pm
Forum: Investing - Theory, News & General
Topic: risk in ratings
Replies: 13
Views: 716

Re: risk in ratings

The "assets" were NINJA mortgages and the ratings agencies ratings were the key to the whole pyramid scheme. Talk about letting the fox guard the hen house. It's funny how people believe what they want to believe. I saw Sheila Bair, former chair of the FDIC, interviewed last year and she s...
by NibbanaBanana
Mon Apr 10, 2017 7:15 pm
Forum: Investing - Theory, News & General
Topic: Death of retail/malls to affect REITs?
Replies: 69
Views: 6340

Re: Death of retail/malls to affect REITs?

The new outdoor malls in our area are packed every weekend. They are the ones that are killing the old malls, as far as I can tell. When I need to buy pants I still go to the mall. I am not convinced that Amazon is for real, either (P/E of 185). Who knows, maybe it is a "buy low" opportun...
by NibbanaBanana
Sun Apr 09, 2017 8:45 am
Forum: Investing - Help with Personal Investments
Topic: Why are the Vanguard Target Retirement Funds so heavily invested in International
Replies: 24
Views: 3169

Re: Why are the Vanguard Target Retirement Funds so heavily invested in International

csmith1211 wrote:I'm ok with it and won't re-allocate but International funds have struggled recently in comparison to US funds.


Exactly why you want to be in international now.
by NibbanaBanana
Sat Apr 08, 2017 12:56 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Taking-In $2 Billion a Day in New Cash
Replies: 30
Views: 4906

Re: Vanguard Taking-In $2 Billion a Day in New Cash

Video by Bloomberg: https://www.bloomberg.com/news/videos/2017-04-07/vanguard-taking-in-2-billion-a-day-in-new-cash-video "Vanguard Taking-In $2 Billion a Day in New Cash" Vanguard taking in $2 Billion a day in new cash in Q1 2017. Where is the money coming from? Is it being pulled from o...
by NibbanaBanana
Thu Apr 06, 2017 8:16 am
Forum: Investing - Theory, News & General
Topic: Vanguard Recommended Portfolio
Replies: 31
Views: 3585

Re: Vanguard Recommended Portfolio

This was in the OP. One of my main goals is to develop portfolio my wife can feel comfortable with when I am not here and I don't mean on vacation. I am a big fan of the 3 fund portfolio but do like their recommended bond type diversity. Now it sounds like you're considering leaving the 2 IRA's in t...
by NibbanaBanana
Wed Apr 05, 2017 7:04 am
Forum: Investing - Theory, News & General
Topic: Why Buffet likes S&P 500 Index over a TSM Index Fund?
Replies: 45
Views: 5176

Re: Why Buffet likes S&P 500 Index over a TSM Index Fund?

S17C wrote:Why does Buffet (and others) prefer S&P 500 Index over a Total Stock Market index fund?


S&P 500 pays a higher dividend.
by NibbanaBanana
Mon Apr 03, 2017 6:12 pm
Forum: Personal Finance (Not Investing)
Topic: Got my second comma -- what is this anticlimactic feeling?
Replies: 55
Views: 6470

Re: Got my second comma -- what is this anticlimactic feeling?

KlingKlang wrote:I know exactly what you mean. As far as motivation treat yourself to a double shot of Johnnie Walker Black :beer at $1,000,000 and every $100,000 after that. After $2,500,000 switch to Johnnie Walker Blue. :sharebeer


Money doesn't buy happiness now does it. But a good scotch on the other hand.
by NibbanaBanana
Sun Apr 02, 2017 7:39 am
Forum: Investing - Help with Personal Investments
Topic: Is anyone decreasing % of bonds this year?
Replies: 91
Views: 6893

Re: Is anyone decreasing % of bonds this year?

https://s13.postimg.org/l9lttvi07/Screen_Shot_2017-03-29_at_12.25.06_PM.png Portfolio 1 (blue) is 100% US stock, portfolio 2 (red) is 75% US Stock, 25% long-term treasuries. See the difference over 40 years? Me neither, hardly. It's best to look at your portfolio as one unit, rather than as a bunch...
by NibbanaBanana
Sat Apr 01, 2017 6:37 pm
Forum: Investing - Help with Personal Investments
Topic: Is anyone decreasing % of bonds this year?
Replies: 91
Views: 6893

Re: Is anyone decreasing % of bonds this year?

I just saw an interview with John Bogle that somebody posted in another thread on Target Date funds. He was pretty clear that he was recommending a higher allocation to stocks than before. He said that social security should be counted like bonds. IMO, as far as investing goes, expected return of 2....
by NibbanaBanana
Sat Apr 01, 2017 9:33 am
Forum: Investing - Theory, News & General
Topic: Subprime Auto Loans packaged and sold to investors.
Replies: 10
Views: 1181

Re: Subprime Auto Loans packaged and sold to investors.

http://www.msn.com/en-us/money/markets/why-deep-subprime-auto-loans-are-beginning-to-worry-wall-street/ar-BBz6OsQ?li=BBnbfcN This obviously does not have the same buildup and potential consequences as the housing crisis, but is still worrisome. Is there any way to tell if one of the popular Boglehe...
by NibbanaBanana
Fri Mar 31, 2017 6:19 pm
Forum: Investing - Theory, News & General
Topic: Investor demand for dividends and mutual fund behaviors
Replies: 11
Views: 1785

Re: Investor demand for dividends and mutual fund behaviors

comeinvest First, as I have pointed out, Modigliani and Miller wrote famous paper over 50 years ago explaining why dividend policy should not matter. Second, historically, and well before the recent run up, divs have had the lowest value premium and the lowest t-stat, not close to statistical signi...
by NibbanaBanana
Fri Mar 31, 2017 2:02 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity advisor said I invested in too much S&P 500 at once for my portfolio; DCA it?
Replies: 75
Views: 3874

Re: Fidelity advisor said I invested in too much S&P 500 at once for my portfolio; DCA it?

Vanguard recommends investing in a lump sum. But if you want to DCA, do it over a period no longer than a year.
https://personal.vanguard.com/pdf/ISGDCA.pdf

FWIW, In "Bogle on Mutual Funds", Bogle advocates DCAing as a good method.
by NibbanaBanana
Thu Mar 30, 2017 1:02 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 186
Views: 24526

Re: John Bogle on international

I love John Bogle and respect him hugely. But I will just point out that he changes his opinion on this very subject through the years. IIRC, he was a guest on Wall Street Week back in the 1990's and he recommended 50% international. NibbanaBanana: I believe your memory might be mistaken for two re...
by NibbanaBanana
Thu Mar 30, 2017 8:10 am
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 186
Views: 24526

Re: John Bogle on international

I love John Bogle and respect him hugely. But I will just point out that he changes his opinion on this very subject through the years. IIRC, he was a guest on Wall Street Week back in the 1990's and he recommended 50% international. So the world changes and you would expect his advice to change wit...
by NibbanaBanana
Wed Mar 29, 2017 6:39 pm
Forum: Investing - Theory, News & General
Topic: Are TIPS flawed, untested products?
Replies: 12
Views: 1499

Re: Are TIPS flawed, untested products?

I just participated in a Vanguard online event called "The Role of Bonds in Your Portfolio". Check the transcript when it comes out because I'm not 100% sure of this. But IIRC someone asked about TIPS and one of the Vanguard CFPs said to use stocks in your portfolio as the inflation hedge....
by NibbanaBanana
Wed Mar 29, 2017 12:37 pm
Forum: Investing - Theory, News & General
Topic: Over last 6 years, has the Total Bond Market Index produced an overall slight loss?
Replies: 35
Views: 4648

Re: Over last 6 years, has the Total Bond Market Index produced an overall slight loss?

"Give a man a fish and you feed him for a day..."

Teach a man to fish and he'll sit in a boat and drink beer all day.
by NibbanaBanana
Wed Mar 29, 2017 8:57 am
Forum: Investing - Help with Personal Investments
Topic: Utilities and Preferred Stocks in Retirement???
Replies: 16
Views: 1156

Re: Utilities and Preferred Stocks in Retirement???

Well, if you go to Vanguard's website and look at the High Dividend Yield Index Fund, it's 415 of America's leading companies priced at 21x and paying 2.93 divy. The 500 Index is 510 of America's leading companies priced at 23x and paying 1.97 divy. And both funds performed exactly the same through ...
by NibbanaBanana
Tue Mar 28, 2017 12:53 pm
Forum: Investing - Help with Personal Investments
Topic: Where can I buy Vanguard Funds w/o Fees ?
Replies: 37
Views: 2905

Re: Where can I buy Vanguard Funds w/o Fees ?

Just give them a little time and they'll get back to you with an answer. We have auto invest in a few funds and it works perfectly. I really am not sure how to compare the service because I don't use much service. But for my purposes, Vanguard's funds, advice, philosophy, and expenses are so superio...
by NibbanaBanana
Tue Mar 28, 2017 8:54 am
Forum: Investing - Theory, News & General
Topic: Multiple Board Member changes recently. Means anything?
Replies: 5
Views: 756

Re: Multiple Board Member changes recently. Means anything?

I like to trade stocks too. Just for fun. Keep most money in excellent, low cost Vanguard funds. But, it is fun doing a little speculating. I've read that insider selling has no predictive power but that insider buying does have some. Don't know if this is still true or not. Given that, I'm sure all...
by NibbanaBanana
Mon Mar 27, 2017 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: Do you have enough? How I realized yeah I do.
Replies: 75
Views: 12116

Re: Do you have enough? How I realized yeah I do.

Now, if only I had a crystal ball for the health industry landscape...that's our biggest cost and biggest worry, even though both of us are blessed with good health. You have control over that too. You don't have to do the standard American spiral down into abysmal health and disease. Ill health is...
by NibbanaBanana
Sun Mar 26, 2017 6:09 pm
Forum: Investing - Help with Personal Investments
Topic: Keep JNJ or invest everything in index funds?
Replies: 18
Views: 1171

Re: Keep JNJ or invest everything in index funds?

Hugely risky, but you're in a good position to take risk. If you had to own one single issue, there probably wouldn't be a much safer one than JNJ. I think it's the only company with S&P AAA rating now. XOM got bumped. Maybe Microsoft is AAA, not sure. Anyway, another plus is it's excellent, abo...
by NibbanaBanana
Sat Mar 25, 2017 12:20 pm
Forum: Investing - Theory, News & General
Topic: "Designing Your "Glide Path"
Replies: 25
Views: 3105

Re: "Designing Your "Glide Path"

8 year bond returns = [.1 0.07 .05 .05 .05 .03 .03 .03]; Since bonds are inversely correlated, This is what I've been wondering about for a while now. I don't think there's any law that says bonds are inversely correlated to stocks. As far as I know, in the 1970's both went down. Somebody said it h...
by NibbanaBanana
Sat Mar 25, 2017 12:09 pm
Forum: Personal Consumer Issues
Topic: Suspicious organic products
Replies: 101
Views: 5668

Re: Suspicious organic products

When it comes to nutrition, you really have to ask yourself if someone has a vested interest in what's written on a website. Google "Best Diet for ...." and you will get umpteen hits, essentially all of which are somebody's opinion who also happens to be trying to make money off that opini...
by NibbanaBanana
Fri Mar 24, 2017 2:47 pm
Forum: Investing - Help with Personal Investments
Topic: dollar cost averaging
Replies: 11
Views: 986

Re: dollar cost averaging

Artisan wrote:
Or watch a video of Mr. Bogle. I always find his advice comforting.

:thumbsup
by NibbanaBanana
Fri Mar 24, 2017 12:20 pm
Forum: Investing - Theory, News & General
Topic: So why exactly is everyone gloomy about bonds?
Replies: 34
Views: 4236

Re: So why exactly is everyone gloomy about bonds?

If your question is why are people afraid of interest rates going up, they shouldn't be because interest rates going up some is a salvation for savers. The chances going up means a repeat of the late seventies and early eighties is exceedingly remote. Can you explain that? When I think of "the...
by NibbanaBanana
Fri Mar 24, 2017 10:26 am
Forum: Personal Finance (Not Investing)
Topic: So someone drained $13k from my checking account...
Replies: 130
Views: 15375

Re: So someone drained $13k from my checking account...

It terrifies me to think of how many cyber attacks Vanguard must get every year, month, week, day. They must have some good security people.
by NibbanaBanana
Thu Mar 23, 2017 1:50 pm
Forum: Investing - Theory, News & General
Topic: The $1,124,176 Car.
Replies: 99
Views: 8199

Re: The $1,124,176 Car.

I bought two Geo Metros back in the mid 90's for my wife and I. Cheapest cars available and got around 50mpg highway milage. Ran them until they rusted to death at 185K and 186K miles. My daily driver is a 2006 Chevy Aveo purchased new for $9800 and has 210K+ miles. My wife drives a fantastic 2013 K...
by NibbanaBanana
Wed Mar 22, 2017 1:27 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation anxiety
Replies: 27
Views: 1235

Re: Asset allocation anxiety

Vanguard Balanced Index fund. The worst year, lost 22% during the great financial crisis and regained everything lost in just about a year. Other than that didn't ever have a losing year in the last ten. Made 6% since inception in 2000. Hard to argue with that.
by NibbanaBanana
Mon Mar 20, 2017 6:33 am
Forum: Investing - Theory, News & General
Topic: It's worth remembering that bull markets don't last forever
Replies: 95
Views: 6829

Re: It's worth remembering that bull markets don't last forever

We can, though, plan for a big market dive - and we should, because there will likely be one. How many 30 year periods don't have a big crash? Since 1861, how many rolling 30-year periods have bonds (long term risky ones no less) outperformed stocks? According to Larry Swedroe, 1 period. http://www...
by NibbanaBanana
Sun Mar 19, 2017 5:34 pm
Forum: Investing - Theory, News & General
Topic: It's worth remembering that bull markets don't last forever
Replies: 95
Views: 6829

Re: It's worth remembering that bull markets don't last forever

Man, oh, man. Talk about a case of luck. Imagine if the recovery had not been V-shaped. I don't get it. I remember 2008 et al. Let's suppose I have $400k in stocks and $600k in fixed income. The market plunges 50%; I now have $200k in stocks and $600k in fixed income. The worst case scenario is tha...
by NibbanaBanana
Sun Mar 19, 2017 5:30 pm
Forum: Investing - Theory, News & General
Topic: It's worth remembering that bull markets don't last forever
Replies: 95
Views: 6829

Re: It's worth remembering that bull markets don't last forever

Just as it is worth noting that bull markets don't last forever, it is also worth noting that the longer the bull runs the more optimistic that investors get. When everybody is an optimist, the market runs out of buyers. Don't get caught in the trap of excessive optimism. Interesting to listen to t...
by NibbanaBanana
Sun Mar 19, 2017 2:19 pm
Forum: Investing - Theory, News & General
Topic: Risks of MLPs
Replies: 26
Views: 1909

Re: Risks of MLPs

See here and decide if it even makes sense to consider such things. This Vanguard paper is even handed. https://personal.vanguard.com/pdf/ISGPMLP.pdf Good points by everyone. The Vanguard paper was at their usual level: excellent. My take on it; Now, with energy doing poorly, would probably be a go...
by NibbanaBanana
Sun Mar 19, 2017 1:20 pm
Forum: Investing - Theory, News & General
Topic: It's worth remembering that bull markets don't last forever
Replies: 95
Views: 6829

Re: It's worth remembering that bull markets don't last forever

The lesson is that you can't really know how to call it. So the best bet is to decide how much exposure you need and want and manage (re-balance) as necessary to deal with it. I have been re-balancing periodically back to my 40% target on the way up. I do the same on the way down again. I may go cr...
by NibbanaBanana
Sat Mar 18, 2017 5:47 pm
Forum: Investing - Theory, News & General
Topic: Bogle Interview CNN - Sat.
Replies: 71
Views: 4908

Re: Bogle CNN Interview

That was one great interview of one great man. Thanks.
by NibbanaBanana
Sat Mar 18, 2017 1:25 pm
Forum: Investing - Theory, News & General
Topic: Investing in - WATER - thoughts
Replies: 57
Views: 3946

Re: Investing in - WATER - thoughts

I think it's priced into the stocks already. I've watched them for decades and wished I had invested back then.

50% of the fresh water in the US is used for animal production. See Cowspiracy. http://www.cowspiracy.com/
by NibbanaBanana
Sat Mar 18, 2017 1:21 pm
Forum: Investing - Theory, News & General
Topic: Risks of MLPs
Replies: 26
Views: 1909

Risks of MLPs

Does anybody know anything about MLPs and their particular risks? I see that these MLPs can pay a pretty nice dividend. For example BPL, Buckeye Partners pipe line is paying about 7% divy. I don't really understand why these MLPs pay such a high dividend vs the market. I do know that the divys are t...
by NibbanaBanana
Sat Mar 18, 2017 1:14 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation in Retirement - Me 100% Stocks.
Replies: 53
Views: 3269

Re: Asset Allocation in Retirement - Me 100% Stocks.

We're in a similar position. 90% stocks and being forced into retirement in a year or so. We have enough dividends to provide about 80% of our (very low and mostly self sufficient) living expenses. (I do all my own auto repair and have run two Geo Metros to 185K and 186K miles.) I just can't seem to...
by NibbanaBanana
Fri Mar 17, 2017 7:23 am
Forum: Investing - Theory, News & General
Topic: Vanguard's recommendation
Replies: 15
Views: 1800

Re: Vanguard's recommendation

It's easy to be risk tolerant in a bull market and risk adverse in a bull. If you have a net worth of $10,000 seeing it drop 50% is no big deal. Lose $5000, not the end of the world. And it'll come back. If you have a net worth of $1,000,000 a drop of 50% and you lose half a million dollars. Might f...
by NibbanaBanana
Thu Mar 16, 2017 12:11 pm
Forum: Investing - Theory, News & General
Topic: "Buffett's Bet"
Replies: 18
Views: 2429

Re: "Buffett's Bet"

I agree with all this. The only problem with the S&P index fund is,.......it's simply no fun. NO FUN. I like the excitement of the trade. The possibility (unlikely as it is) of beating the market. I keep about (edit again: about 15%) in my trading account to play with. Have 90% stocks, 5% bonds ...
by NibbanaBanana
Tue Mar 14, 2017 3:45 pm
Forum: Investing - Theory, News & General
Topic: Dividends Vs Annuity
Replies: 32
Views: 3177

Re: Dividends Vs Annuity

My wife and I have a Vanguard variable annuity in accumulation phase. About 15% of our investable assets. To me, the important difference is that the annuity is an insurance product. It's not really what I consider an investment. At least not once annuitized. The annuity is guaranteed (up to the in...

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