Search found 6403 matches

by Phineas J. Whoopee
Mon Aug 21, 2017 12:25 am
Forum: Investing - Theory, News & General
Topic: What is Bitcoin?
Replies: 87
Views: 4806

Re: What is Bitcoin?

... I think the characteristics of gold give it some kind intrinsic value. Even if there was no economy, no civilization, no trade no money. If I was paleolithic hunter/gatherer and saw a gold nugget lying on the ground, I'm sure that I would pick it up and save it. It's unusual and would catch my ...
by Phineas J. Whoopee
Sun Aug 20, 2017 6:04 pm
Forum: Personal Finance (Not Investing)
Topic: Leveraging minority ownership into healthcare?
Replies: 11
Views: 754

Re: Leveraging minority ownership into healthcare?

It's my understanding that if we decline Cobra and go on ACHA , we can't change our minds later and opt for Cobra. With the current uncertainty surrounding ACHA , I am really nervous about what might happen there in the next four years. ... My purpose in this post is to disambiguate the multiple an...
by Phineas J. Whoopee
Sun Aug 20, 2017 5:32 pm
Forum: Investing - Help with Personal Investments
Topic: Adjusting AA as retirement nears
Replies: 18
Views: 1184

Re: Adjusting AA as retirement nears

Here's what I did and why , and a couple of years later I answered some questions about it . I am not an extremist, and I think for most investors an age-based asset allocation approach will be far more practical. I offer my plan, reasoning, and experience to shed light from a different direction, p...
by Phineas J. Whoopee
Sun Aug 20, 2017 5:21 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio asset allocation for a retiree
Replies: 8
Views: 857

Re: Portfolio asset allocation for a retiree

Hi diyinvestor. The best way to get good advice here is to post in our Asking Portfolio Questions format. You can simply edit your original post in this thread to include the information (use the button that looks like a pencil). As posted above by Tyler9000 everybody's situation is personal, and th...
by Phineas J. Whoopee
Sun Aug 20, 2017 4:56 pm
Forum: Investing - Theory, News & General
Topic: Boston Globe: Smart Investors May be Killing Capitalism
Replies: 33
Views: 2768

Re: Boston Globe: Smart Investors May be Killing Capitalism

What if everybody indexed? PJW Pick one you think you can defend. The topic has been done to death here, seemingly with all possible views already expressed. Sometimes it comes up more than weekly, like, for example, today. If you have anything new to add to any of the old threads, then please by a...
by Phineas J. Whoopee
Sun Aug 20, 2017 3:23 pm
Forum: Investing - Theory, News & General
Topic: too much money in indexes?
Replies: 16
Views: 2350

Re: too much money in indexes?

Original Poster here. Long time folks! Was pleased to see an article in the WSJ addressing my original concern! - better articulated of course. And, it does appear as if it is actually is a somewhat legitimate concern. I.e. - that maybe someday there won't be enough actives for passives to play off...
by Phineas J. Whoopee
Sun Aug 20, 2017 2:18 pm
Forum: Investing - Theory, News & General
Topic: Help with my understanding of bond funds & efficient market hypothesis
Replies: 25
Views: 2025

Re: Help with my understanding of bond funds & efficient market hypothesis

The Treasury or other issuer does not set the yield. The market does. I would dispute that. The Fed sets the amount of money. Globally central banks are holding tremendous amounts of bonds. In addition European banks have forced purchases of government debt. The treasury issues debt specifically to...
by Phineas J. Whoopee
Fri Aug 18, 2017 9:45 pm
Forum: Investing - Theory, News & General
Topic: What is Bitcoin?
Replies: 87
Views: 4806

Re: What is Bitcoin?

They are parodies.
PJW
by Phineas J. Whoopee
Fri Aug 18, 2017 8:24 pm
Forum: Investing - Theory, News & General
Topic: What is Bitcoin?
Replies: 87
Views: 4806

Re: What is Bitcoin?

The Wizard wrote:
Fri Aug 18, 2017 8:21 pm
Phineas J. Whoopee wrote:
Fri Aug 18, 2017 8:13 pm

Will you sell me an apple for 50 cents? If so, you think the apple is worth less, and I think it's worth more.
No.
I only have tulip bulbs for sale.
You will pay me $10 for five of them and thank me in future years for the offer...
Mmm! Tulip bulbs!
PJW
by Phineas J. Whoopee
Fri Aug 18, 2017 8:13 pm
Forum: Investing - Theory, News & General
Topic: What is Bitcoin?
Replies: 87
Views: 4806

Re: What is Bitcoin?

... Ok, so is Bitcoin a Ponzi scheme sort of thing? Get in early and get out before the tide turns? I think the term Ponzi Scheme (capaitalization intentional) must be changing in meaning. It used to mean one particular sort of financial scam. Maybe now it means any sort of financial scam, or attem...
by Phineas J. Whoopee
Fri Aug 18, 2017 6:44 pm
Forum: Investing - Theory, News & General
Topic: Help with my understanding of bond funds & efficient market hypothesis
Replies: 25
Views: 2025

Re: Help with my understanding of bond funds & efficient market hypothesis

... Perhaps I am simply using the wrong terminology here. What I mean is that the yield on a NEW bond purchase in the exact same category ( by whoever sets that yield - US treasury, corporation, etc. ) has gone up. I.e., if the bond is 10-year treasury bond, then the rate on NEW 10-year treasury bo...
by Phineas J. Whoopee
Thu Aug 17, 2017 7:51 pm
Forum: Investing - Theory, News & General
Topic: WSJ - ... Stop Index Trackers [from] Eating the Economy
Replies: 23
Views: 2888

Re: WSJ - ... Stop Index Trackers [from] Eating the Economy

Fact: The cap-weighted stock market is held, in aggregate, by the stock market participants. It cannot be otherwise. Fact: Individuals and organizations putting their capital into stocks via index funds are participating in the stock market. Observation: The only problems for the market from index f...
by Phineas J. Whoopee
Tue Aug 01, 2017 5:01 pm
Forum: Investing - Help with Personal Investments
Topic: How do dividends work?
Replies: 9
Views: 863

Re: How do dividends work?

If I may, I think the "free money" phrasing builds resistance. We shouldn't use it.

We should not be surprised when opposition arises after we write those words in that order.

PJW
by Phineas J. Whoopee
Tue Aug 01, 2017 4:42 pm
Forum: Investing - Theory, News & General
Topic: Why is it hard to beat the market?
Replies: 45
Views: 3212

Re: Why is it hard to beat the market?

It's not hard - wrong question. If you pick individual stocks, there's a pretty good chance you'll beat the market. However, there's also a pretty good chance you'll underperform the market. The real problem is you won't know which of these outcomes is yours until you're 30 years in, and if you und...
by Phineas J. Whoopee
Tue Aug 01, 2017 4:24 pm
Forum: Investing - Theory, News & General
Topic: Why is it hard to beat the market?
Replies: 45
Views: 3212

Re: Why is it hard to beat the market?

I mean, I am only invested in index funds so I clearly am convinced that it's not worth trying to beat the market. But why is it that way... why is it so hard to beat the market? To me, it makes sense that one could find companies that have good business models and leadership and are more likely to...
by Phineas J. Whoopee
Tue Aug 01, 2017 4:15 pm
Forum: Investing - Theory, News & General
Topic: Why is it hard to beat the market?
Replies: 45
Views: 3212

Re: Why is it hard to beat the market?

Everyone has a different POV, but mine is all based on if one believes the markets are efficient enough or not. If one does believe in market efficiency then all the information known is already known by all the players in the field and is thus reflected in the current price. So that means the ONLY...
by Phineas J. Whoopee
Tue Aug 01, 2017 4:11 pm
Forum: Investing - Theory, News & General
Topic: Why is it hard to beat the market?
Replies: 45
Views: 3212

Re: Why is it hard to beat the market?

It is like asking why every talented high school basketball players doesn't make it to the NBA. I believe in the "Semi" flavor of the Efficient Market Hypothesis. The "Pure" version states you can't beat the market. The "Semi" ones says you can. Of course you are competing against 1,000s of other r...
by Phineas J. Whoopee
Tue Jul 25, 2017 4:29 pm
Forum: Investing - Theory, News & General
Topic: 5% fee per year to buy s&p500 with principle gaurantee
Replies: 64
Views: 6101

Re: 5% fee per year to buy s&p500 with principle gaurantee

Nate79 wrote:This kind of sounds like that horrible product called a fixed index annuity.

I agree, that's what it sounds like.
PJW
by Phineas J. Whoopee
Tue Jul 25, 2017 3:34 pm
Forum: Investing - Theory, News & General
Topic: Living Off Dividends
Replies: 285
Views: 21263

Re: Living Off Dividends

One theme I've noticed running through all these threads about distribution of one's portfolio after retirement is the very large assumption that you will know how you will feel when the time comes. "Well, if I were 70, I would do XYZ ... " As someone 1.5 years into retirement, I can tell...
by Phineas J. Whoopee
Mon Jul 24, 2017 9:06 pm
Forum: Investing - Theory, News & General
Topic: Morningstar [Do fund returns net out expenses?]
Replies: 4
Views: 458

Re: Morningstar [Do fund returns net out expenses?]

Hi Roger Maris, and welcome to the forum. In the US at least, I don't have direct knowledge about other jurisdictions, yes, by law, they do take out expenses before reporting returns. It's important to be sure you're looking at total return, which includes dividends, rather than just prices which ca...
by Phineas J. Whoopee
Mon Jul 24, 2017 8:29 pm
Forum: Investing - Theory, News & General
Topic: Today's Treasury Yield Curve
Replies: 3
Views: 690

Re: Today's Treasury Yield Curve

I agree with lazyday and the linked market timer post, and further would like to point out inverted yield curves are rare, but they do show up from time to time. They have predicted more recessions than have occurred.
PJW
by Phineas J. Whoopee
Sun Jul 23, 2017 7:37 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 15307

Re: Dividend Misunderstandings & Only Spend Return

Do you mean, avalpert, in theory there is no difference between theory and practice?
PJW
by Phineas J. Whoopee
Sun Jul 23, 2017 7:22 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 15307

Re: Dividend Misunderstandings & Only Spend Return

... I think much of the why can be tied to this: dividend investors think that their principal is represented by the number of shares they own rather than the dollar value of those shares. A 'total return' person doesn't have a problem buying 100 shares for $10,000, seeing those shares appreciate t...
by Phineas J. Whoopee
Sun Jul 23, 2017 6:29 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 15307

Re: Dividend Misunderstandings & Only Spend Return

Let me try a different angle. ... I was sorry to read about your loss of your parents at such a young age, snarlyjack. My condolences. You conceded upthread that your preference is built from your psychology and nothing else. Psychology is important. Peoples' feelings are real, and are important. I...
by Phineas J. Whoopee
Sun Jul 23, 2017 6:07 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 15307

Re: Dividend Misunderstandings & Only Spend Return

Thesaints wrote:They simply treat stocks as if they were bonds.

If so, maybe the lack of the conceptual distinction between stocks and bonds also leads to the idea that there's been a 35-year bull market in instruments all of which matured in no more than 30 years.
PJW
by Phineas J. Whoopee
Sun Jul 23, 2017 6:00 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 15307

Re: Dividend Misunderstandings & Only Spend Return

... I'm not sure how important the terminology here is in explaining the why as much as how people react to it. If someone thinks of their investment as shares, then it makes sense that they don't want to sell shares. If they think of their investment as dollars, then selling shares to get dollars ...
by Phineas J. Whoopee
Sun Jul 23, 2017 5:25 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 15307

Re: Dividend Misunderstandings & Only Spend Return

... I'm not sure how important the terminology here is in explaining the why as much as how people react to it. If someone thinks of their investment as shares, then it makes sense that they don't want to sell shares. If they think of their investment as dollars, then selling shares to get dollars ...
by Phineas J. Whoopee
Sun Jul 23, 2017 5:09 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 15307

Re: Dividend Misunderstandings & Only Spend Return

... I think much of the why can be tied to this: dividend investors think that their principal is represented by the number of shares they own rather than the dollar value of those shares. A 'total return' person doesn't have a problem buying 100 shares for $10,000, seeing those shares appreciate t...
by Phineas J. Whoopee
Sun Jul 23, 2017 4:58 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 15307

Re: Dividend Misunderstandings & Only Spend Return

Nearly everything after the first 100 posts or so demonstrates that there is misunderstanding about dividends, and that it is devoutly held and proponents of it are willing to shift the goalposts in order to defend their positions, but that wasn't my question. Why is there this lack of understanding...
by Phineas J. Whoopee
Sun Jul 23, 2017 3:46 pm
Forum: Personal Finance (Not Investing)
Topic: AnnualCreditReport Equifax
Replies: 31
Views: 1866

Re: AnnualCreditReport Equifax

I have had problems with Equifax via m. For two years running they asked me questions clearly taken from public sources, and each and every question's correct answer was none of the above. They asked me about addresses I'd lived at, employers I'd worked for, and most worryingly of all, loans I'd app...
by Phineas J. Whoopee
Fri Jul 21, 2017 6:20 pm
Forum: Investing - Theory, News & General
Topic: Market vs Limit order
Replies: 50
Views: 3491

Re: Market vs Limit order

You just place your order and it gets executed at the end of the business day, at the actual share value. This isn't true for anything that is international. Since obviously their markets don't close at 5pm Eastern Standard. For a homework assignment: So how does Vanguard determine the price of a m...
by Phineas J. Whoopee
Fri Jul 21, 2017 5:59 pm
Forum: Investing - Theory, News & General
Topic: Do Index Funds Distort Market Valuations?
Replies: 83
Views: 5085

Re: Do Index Funds Distort Market Valuations?

jbolden1517 may ultimately be referring to this freely-published, non-proprietary paper by Robin Greenwood of the Harvard Business School:

Float Manipulation and Stock Prices

PJW
by Phineas J. Whoopee
Sun Jul 16, 2017 9:57 pm
Forum: Investing - Theory, News & General
Topic: Is the Total US Stock Market too concentrated?
Replies: 51
Views: 4023

Re: Is the Total US Stock Market too concentrated?

If, in terms of stocks, the US Total Stock Market is too concentrated and bad, setting aside international stocks because that wasn't your original question, then there must be some other US stock allocation that's less concentrated and better. US stock market participants, wherever they're located,...
by Phineas J. Whoopee
Sun Jul 16, 2017 9:17 pm
Forum: Investing - Theory, News & General
Topic: Buckley will succeed McNab as Vanguard CEO at year end
Replies: 32
Views: 3750

Re: Buckley will succeed McNab as Vanguard CEO at year end

... Unfortunately, not many companies today understand value of test and, even who understands does not have right test team. One time when such things still were an issue I had to write a formal waiver and get it approved, that is to say physically signed by the next two higher levels of managemen...
by Phineas J. Whoopee
Sun Jul 16, 2017 8:12 pm
Forum: Investing - Theory, News & General
Topic: Do Index Funds Distort Market Valuations?
Replies: 83
Views: 5085

Re: Do Index Funds Distort Market Valuations?

What is the external-to-the-market definition, determination, or calculation, of over- and under-valued? Unless there's a market-external authority the words are meaningless. Naturally, most market participants disagree with each other about appropriate security prices most of the time . That's beca...
by Phineas J. Whoopee
Sun Jul 16, 2017 7:45 pm
Forum: Investing - Theory, News & General
Topic: When to reduce risk?
Replies: 18
Views: 1553

Re: When to reduce risk?

This is what I did and why, and a couple of years later I answered some questions about it.

For the record, I think an age-based asset allocation approach will be far more practical for most investors.

PJW
by Phineas J. Whoopee
Sun Jul 16, 2017 7:14 pm
Forum: Investing - Help with Personal Investments
Topic: Personal Finance Milestone: 20 Times Annual Expense
Replies: 95
Views: 8850

Re: Personal Finance Milestone: 20 Times Annual Expense

... Congratulations. Very inspiring. I believe I heard in China families save around 50% of their income. ... The majority of the population of China still are subsistence farmers and do not have much opportunity to save. A peasant must stand on the top of a hill with his mouth open for a long time...
by Phineas J. Whoopee
Sun Jul 16, 2017 6:57 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 15307

Re: Dividend Misunderstandings & Only Spend Return

... annual capital gain is a highly volatile asset while dividend yield is mostly low volatility decreasing very infrequently. Dividend yield while not perfectly adjusted for inflation tends to increase at least at the speed of inflation (and usually substantially more) over periods as short as 5 y...
by Phineas J. Whoopee
Sat Jul 15, 2017 8:30 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 15307

Re: Dividend Misunderstandings & Only Spend Return

I hate the way it's called "Dividend INCOME". It's not called income if you take cash out of your bank account. Dividends should be called something else so people stop being confused about them. ... Setting aside US income tax law, I agree with you. If I take assets out of my left front ...
by Phineas J. Whoopee
Sat Jul 15, 2017 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: How to use retirement funds for college without penalities or taxes?
Replies: 31
Views: 2060

Re: How to use retirement funds for college without penalities or taxes?

Hi miamivice, I believe your analysis is correct. The only exception I know of is US Savings Bonds, which under certain circumstances can be redeemed and if all the money, including the original investment, is used for legally specified, qualified, educational expenses, depending on who bought the s...
by Phineas J. Whoopee
Sat Jul 15, 2017 4:48 pm
Forum: Investing - Help with Personal Investments
Topic: Personal Finance Milestone: 20 Times Annual Expense
Replies: 95
Views: 8850

Re: Personal Finance Milestone: 20 Times Annual Expense

Congratulations. As I've repeatedly posted I think an age-based asset allocation approach, and you didn't mention asset allocation in your OP so I'm the one bringing it up, will be far more practical for most investors. Here's what I did , and a couple of years later I answered some questions about ...
by Phineas J. Whoopee
Sat Jul 15, 2017 4:26 pm
Forum: Investing - Help with Personal Investments
Topic: Income from investments, have 200k to use.
Replies: 8
Views: 1219

Re: Income from investments, have 200k to use.

The idea that income is different from other forms of investment return is mistaken. Here's a thread about it.

I'd like to help, but as long as the free money fallacy is in play I'm afraid I have no means by which to do so.

PJW
by Phineas J. Whoopee
Sun Jul 09, 2017 5:50 pm
Forum: Investing - Theory, News & General
Topic: Owning 3 Index funds vs ETFS ?
Replies: 24
Views: 1924

Re: Owning 3 Index funds vs ETFS ?

OP's question was about rapid cycling, and your examples were to sell one fund and buy another. Fidelity's "round trip" definition applies to a single fund within 30 days, not to different funds that are similar but not identical. The 1% fee applies if a customer does it twice within 90 da...
by Phineas J. Whoopee
Sun Jul 09, 2017 5:02 pm
Forum: Investing - Theory, News & General
Topic: Owning 3 Index funds vs ETFS ?
Replies: 24
Views: 1924

Re: Owning 3 Index funds vs ETFS ?

... One should not make quick asset allocation changes. However the OP has not said that sales would be due to an asset allocation change. It's not unreasonable to protect one's ability to, without penalty, tax loss harvest from a total market fund to an S&P500 fund to a Large Cap index fund wi...
by Phineas J. Whoopee
Sun Jul 09, 2017 4:50 pm
Forum: Investing - Theory, News & General
Topic: Owning 3 Index funds vs ETFS ?
Replies: 24
Views: 1924

Re: Owning 3 Index funds vs ETFS ?

Making quick changes is precisely what one should not do, at least under ordinary circumstances, according to the Bogleheads' Philosophy . If there were extreme circumstances maybe a 1% fee, which applies only after the second round trip as Fidelity puts it , shouldn't be a barrier. In terms of mutu...
by Phineas J. Whoopee
Sun Jul 09, 2017 4:32 pm
Forum: Investing - Help with Personal Investments
Topic: William Bernstein "If You Can"
Replies: 2
Views: 1069

Re: William Bernstein "If You Can"

The Good Doctor recommends no such thing.

He points out that if one uses the very simplest allocation between three asset classes for decades it's likely to work out well. He recommends very extensive additional reading for far more detail.

PJW
by Phineas J. Whoopee
Sun Jul 09, 2017 4:26 pm
Forum: Investing - Help with Personal Investments
Topic: How much lag behind the DOW/SP500 is acceptable in a well constructed portfolio?
Replies: 23
Views: 1144

Re: How much lag behind the DOW/SP500 is acceptable in a well constructed portfolio?

Stocks have a higher expected return , which is not the return you should expect, than fixed income. A 100% stock portfolio has a higher expected return than a mixed stock-bond portfolio. You're asking about the latter. If you would like comments about your asset allocation you should post in our as...