Search found 1832 matches

by Sammy_M
Sat Sep 24, 2016 12:45 pm
Forum: Investing - Theory, News & General
Topic: Arnott and Asness Square Off on Factor Investing
Replies: 17
Views: 1546

Re: Arnott and Asness Square Off on Factor Investing

Yes, the title is not descriptive. They are agreeing more than disagreeing. The markets, by their very nature, are going to look for inefficiencies and squash them. The inefficiencies are likely to be dynamic. They're likely to change over time. There are a few timeless ones--momentum, for sure; val...
by Sammy_M
Sat Sep 24, 2016 9:46 am
Forum: Investing - Theory, News & General
Topic: Arnott and Asness Square Off on Factor Investing
Replies: 17
Views: 1546

Arnott and Asness Square Off on Factor Investing

http://news.morningstar.com/articlenet/article.aspx?id=770825 Interesting comment. You asked about all of the attention focused on factors. One thing I would say to that is attention doesn't change prices. Money changes prices. Where these flows are coming from is fascinating. We've seen flows out o...
by Sammy_M
Thu Sep 08, 2016 6:00 pm
Forum: Investing - Theory, News & General
Topic: Fidelity and new Factor-based ETF's
Replies: 6
Views: 548

Re: Fidelity and new Factor-based ETF's

Just hope that this doesn't steer them toward discontinuing their deal with iShares. IUSV at 7bp is hard to beat for value.
by Sammy_M
Mon Aug 22, 2016 3:31 pm
Forum: Investing - Help with Personal Investments
Topic: How do you view debt?
Replies: 108
Views: 6557

Re: How do you view debt?

I don't view debt as evil, it's just a slippery slope that a lot of people use unwisely. My general guidance would be: Don't buy what you don't need. If you use debt, maintain ample liquidity. Pay down/off any debt that is > Prime + 3%. Then fund your retirement accounts. Pay down/off any debt great...
by Sammy_M
Thu Jul 28, 2016 6:27 am
Forum: Personal Finance (Not Investing)
Topic: Universal life as p/o fixed income allocation
Replies: 4
Views: 427

Re: Universal life as p/o fixed income allocation

afan wrote:Not all of the premium goes into the investment fund. Some may be deducted for commissions, some for premium taxes and other expenses.

Thanks. This is exactly what I was looking to learn.
by Sammy_M
Mon Jul 25, 2016 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Universal life as p/o fixed income allocation
Replies: 4
Views: 427

Universal life as p/o fixed income allocation

I help a relative of mine with her finances. She took out a small universal life 'plus' policy from Ameriprise in the early 90s with a $100K death benefit. Cash value is now in the high 4-figures. I haven't paid much attention to this policy, but in reviewing this weekend I saw the fixed account int...
by Sammy_M
Mon Jul 11, 2016 5:28 pm
Forum: Investing - Theory, News & General
Topic: Valuations and market timing, and the current CAPE 10
Replies: 88
Views: 8770

Re: Valuations and market timing, and the current CAPE 10

Sammy, should not add 1.5 to the 3.8. The figure should be 3.8% x (1 + [5 x2]) Five year lag and earnings grow about 2% per year in real terms. That brings current earnings yield up to 4.2% and that is the real expected return. It's not the DDM which you add g to the div yield Larry Got it. Thank y...
by Sammy_M
Mon Jul 11, 2016 3:51 pm
Forum: Investing - Theory, News & General
Topic: Valuations and market timing, and the current CAPE 10
Replies: 88
Views: 8770

Re: Valuations and market timing, and the current CAPE 10

Interesting that even with CAPE 10 over 26, today's equity risk premiums are still fairly attractive because bond yields are so low.

1/PE10 is 3.8 +1.5 = 5.3%
The longest TIPS available is yielding around 0.6% real
4.7% equity risk premium is a little low, but not terribly outside the 'norm'.
by Sammy_M
Fri Feb 12, 2016 2:30 am
Forum: Personal Consumer Issues
Topic: Managing kid's internet use
Replies: 46
Views: 4658

Re: Managing kid's internet use

Open DNS and blocking at the router level. That way any devices that connect to the wireless network are subject to parental controls. Plus keeping the main computer in common area. What's a router? What's DNS? Seriously, the technical skill for doing these things is probably more than the average ...
by Sammy_M
Sun Feb 07, 2016 10:12 pm
Forum: Personal Consumer Issues
Topic: Managing kid's internet use
Replies: 46
Views: 4658

Re: Managing kid's internet use

Open DNS and blocking at the router level. That way any devices that connect to the wireless network are subject to parental controls.

Plus keeping the main computer in common area.
by Sammy_M
Sat Feb 06, 2016 8:10 am
Forum: Investing - Help with Personal Investments
Topic: How to behave on a RGD (Really Good Day)?
Replies: 17
Views: 2010

Re: How to behave on a RGD (Really Good Day)?

Recall a past topic in which Larry Swedroe advocated 5/20 bands. My half-memory of his argument was that as rebalancing is to control risk/return, wider bands would expose us to more/less risk/return than we originally established with our chosen AA. Of course, if we accept the risk (we are as like...
by Sammy_M
Sat Feb 06, 2016 8:00 am
Forum: Investing - Help with Personal Investments
Topic: Fidelity or iShares for total stk market?
Replies: 34
Views: 3099

Re: Fidelity or iShares for total stk market?

To the OP's question, the answer is simple. If taxable, buy the iShares Core ETF which has no transaction fees and reasonable bid-ask spread.
by Sammy_M
Fri Feb 05, 2016 6:40 am
Forum: Investing - Help with Personal Investments
Topic: How to behave on a RGD (Really Good Day)?
Replies: 17
Views: 2010

Re: How to behave on a RGD (Really Good Day)?

Kevin M wrote:Maybe the 5/25 bands are too narrow considering taxes and the volatility of the investment.

I agree with this, specifically the 25% deviation part. PME has BIG swings. I hold in tax-advantaged, and still will not be rebalancing that frequently.
by Sammy_M
Fri Feb 05, 2016 6:27 am
Forum: Investing - Help with Personal Investments
Topic: Fidelity or iShares for total stk market?
Replies: 34
Views: 3099

Re: Fidelity or iShares for total stk market?

iShares ETF if taxable. ETF is inherently more tax efficient. If you transfer brokerages you can move the ETF in-kind. I'm not certain whether that is the case with Fidelity Spartan funds. Maybe someone else can comment. Probably iShares ETF for tax-advantaged accounts too is you're not getting the ...
by Sammy_M
Sun Jan 31, 2016 12:05 pm
Forum: Investing - Help with Personal Investments
Topic: Rolling Over 529 $ from 2 Different States
Replies: 9
Views: 886

Re: Rolling Over 529 $ from 2 Different States

betterfinances wrote:Uh, why are people trying to move 529s from one state to another?

No in-state tax deduction.
Fixed income rate changes.
Wisen up about benefits of a particular plan.
by Sammy_M
Sun Jan 31, 2016 11:12 am
Forum: Investing - Help with Personal Investments
Topic: Rolling Over 529 $ from 2 Different States
Replies: 9
Views: 886

Re: Rolling Over 529 $ *to* 2 Different States

Resurrecting this thread because I am in a similar position, but am trying to go to 2 states. Child 1 and Child 2's 529's are about the same size. Both are in State 1 plan. Child 1's has only been there since Sept '15 when it was transferred from another state. Unfortunately the rate dropped as of 1...
by Sammy_M
Wed Jan 27, 2016 11:10 am
Forum: Personal Consumer Issues
Topic: Software to combine multiple video or audio files
Replies: 16
Views: 1077

Re: Software to combine multiple video or audio files

For audio, Audacity has worked well for me. For video, I've used Windows Move Maker but there are probably better options. Both of the ones mentioned are free.
by Sammy_M
Sun Jan 24, 2016 9:57 am
Forum: Investing - Theory, News & General
Topic: Why don't people like the higher level of real estate allocation in Swensen lazy portfolio?
Replies: 33
Views: 3240

Re: Why don't people like the higher level of real estate allocation in Swensen lazy portfolio?

I don't invest in REITS because I have enough residential real estate exposure as it is. I like the idea of 20% in real estate, but not necessarily 20% in REITs. If you don't want to invest in real estate directly or via syndications and are only doing REITS, I think 20% is too much. How does one pr...
by Sammy_M
Sat Jan 23, 2016 6:27 pm
Forum: Investing - Help with Personal Investments
Topic: I Bonds
Replies: 27
Views: 3296

Re: I Bonds

^It is also likely that times when you might need emergency funds (unemployment, high med expenses, etc.) are going to be times when your tax rate is lower.
by Sammy_M
Sat Jan 23, 2016 6:10 pm
Forum: Investing - Help with Personal Investments
Topic: I Bonds
Replies: 27
Views: 3296

Re: I Bonds

3. In college savings, when you are in a state that has no state tax, under certain income levels you can use proceeds tax free for educational purposes. Many more I'm sure. You can use proceeds tax free for qualified educational purposes if under certain income levels, yes, this is true. I-Bonds a...
by Sammy_M
Sat Jan 23, 2016 2:32 pm
Forum: Investing - Theory, News & General
Topic: What was the 2000 crash like in real time?
Replies: 65
Views: 6185

Re: What was the 2000 crash like in real time?

^And then Enron and WorldCom fiasos in 2002
by Sammy_M
Thu Jan 21, 2016 5:57 am
Forum: Investing - Help with Personal Investments
Topic: Going from 50/50 US/Int to All US
Replies: 80
Views: 6439

Re: Going from 50/50 US/Int to All US

Don't do it. Over the long run, it doesn't matter so much the allocation you choose, as much as the choice to stick with it, even when you are feeling like you are now. When things have been going bad, there will always be experts on the other side of the argument who make a lot of sense to you at t...
by Sammy_M
Wed Jan 20, 2016 8:56 pm
Forum: Investing - Help with Personal Investments
Topic: eyeing micro-cap stocks
Replies: 39
Views: 3184

Re: eyeing micro-cap stocks

. Would just stick with passive funds - if you want micro-cap exposure Bridgeway (BRSIX) is a good choice IMO, but would not suggest market timing, but rather use as long-term holding. . I wholly agree about passive, but have been disappointed with BRSIX's tax efficiency and negative alpha in the l...
by Sammy_M
Wed Jan 20, 2016 7:50 am
Forum: Investing - Help with Personal Investments
Topic: 529 vs Pre-Paid Plan in Massachusetts?
Replies: 13
Views: 1306

Re: 529 vs Pre-Paid Plan in Massachusetts?

I agree with randomguy's point, but would fund more than that in the U.Plan if you think they could end up going to a MA private university. The overage will still earn CPI tax free, and I don't feel the Am. Opportunity Credit should drive the decision. The Utah 529 plan is very good, particularly i...
by Sammy_M
Tue Jan 19, 2016 4:28 pm
Forum: Investing - Help with Personal Investments
Topic: 529 vs Pre-Paid Plan in Massachusetts?
Replies: 13
Views: 1306

Re: 529 vs Pre-Paid Plan in Massachusetts?

Don't forget that you must keep at least $4k of tuition payments each year ($16k in all) in taxable accounts to take advantage of the American Opportunity Tax Credit , a $2.5k/year Federal tax credit (100% of the first $2k of tuition payments & 25% of the next $2k of tuition payments). You can'...
by Sammy_M
Sun Jan 17, 2016 5:30 pm
Forum: Investing - Help with Personal Investments
Topic: 529 vs Pre-Paid Plan in Massachusetts?
Replies: 13
Views: 1306

Re: 529 vs Pre-Paid Plan in Massachusetts?

Because Harvard and MIT don't participate. Also, I said "tax-free, virtually risk-free returns equal to CPI" without looking into it. I recommend that you verify that if your kids go to a non-participating school that when you receive the proceeds with CPI returns, that those returns aren'...
by Sammy_M
Sun Jan 17, 2016 9:07 am
Forum: Investing - Help with Personal Investments
Topic: 529 vs Pre-Paid Plan in Massachusetts?
Replies: 13
Views: 1306

Re: 529 vs Pre-Paid Plan in Massachusetts?

Do most kids who graduate from your town's high school go to MA colleges? Any chance they would be going to Ivy schools? If the answers are yes and no respectively, U.Plan sounds great. At worst you'll get tax-free, virtually risk-free returns equal to CPI. Hard to beat that with fixed income these ...
by Sammy_M
Wed Jan 13, 2016 12:07 pm
Forum: Investing - Theory, News & General
Topic: Can someone simplify the Asset Location debate?
Replies: 86
Views: 5034

Re: Can someone simplify the Asset Location debate?

In your model, the IRS and state own 31.6% (not 33% because state tax is deductible from federal tax) of your IRA Thank you for checking out the model and pointing this out. I've made the adjustment. However, an exception to the statement is for those subject to AMT. Check your risk numbers; see wh...
by Sammy_M
Tue Jan 12, 2016 12:47 pm
Forum: Investing - Theory, News & General
Topic: Can someone simplify the Asset Location debate?
Replies: 86
Views: 5034

Re: Can someone simplify the Asset Location debate?

Taylor Larimore wrote:When experts disagree, it is often because it does not make a foreseeable difference.


I think the underlined word is very important. It can make a big difference as noted in my scenario below, but we don't know the future.

Image
by Sammy_M
Mon Jan 11, 2016 6:25 am
Forum: Investing - Theory, News & General
Topic: Can someone simplify the Asset Location debate?
Replies: 86
Views: 5034

Re: Can someone simplify the Asset Location debate?

Here is another way to simplify: 1. Anything can be held in a Roth IRA: bonds, equities, REITs, whatever. 2. Anything can be held in a traditional IRA or 401(k): bonds, equities, REITs, whatever. 3. A taxable account should be used for tax-efficient investments: index funds with low turnover that p...
by Sammy_M
Sun Jan 10, 2016 7:32 pm
Forum: Investing - Help with Personal Investments
Topic: Are Bogleheads Buying I-Bonds 2016?
Replies: 87
Views: 13428

Re: Are Bogleheads Buying I-Bonds 2016?

My goal is to evaluate which is the superior strategy between I-Bonds in taxable + stocks in a TIRA vs. stocks in taxable + TIPS in TIRA This is a complicated comparison, Sammy. Be aware of the following: ⋅ I don't think it's realistic to assume a 0.1% fixed rate I Bond will be held 30 ye...
by Sammy_M
Sat Jan 09, 2016 4:16 pm
Forum: Investing - Help with Personal Investments
Topic: Are Bogleheads Buying I-Bonds 2016?
Replies: 87
Views: 13428

Re: Are Bogleheads Buying I-Bonds 2016?

Here's an example using a 1.25% yield for the TIPS and a 0.1% fixed rate for the I Bond over 30 years with a 2% annual increase in the CPI. Thank you the formulas and analysis above. I wonder if you would mind assisting with a question. I added two columns to your analysis. One for stocks in taxabl...
by Sammy_M
Mon Jan 04, 2016 10:24 am
Forum: Investing - Help with Personal Investments
Topic: Are Bogleheads Buying I-Bonds 2016?
Replies: 87
Views: 13428

Re: Are Bogleheads Buying I-Bonds 2016?

I agree TIPS in a 401K/IRA are preferable to I-Bonds, but no one should buy I-Bonds before fully funding their 401K/IRA, etc. Then...if you then buy I-Bonds, you can place other tax inefficient assets in your 401K/IRA. What is "tax-efficient" vs. not is relative. For higher earners, it may...
by Sammy_M
Sun Jan 03, 2016 10:45 am
Forum: Investing - Theory, News & General
Topic: Vanguard Fund Returns
Replies: 17
Views: 3817

Re: Vanguard Fund Returns

One more interesting point. The Vanguard Global Minimum Volatility Fund Investor Shares, an actively managed fund with a 50 US/50 INTL low volatility portfolio using currency hedging in INTL was up +5.8% for the year, 7.8% higher than the Total World Stock Index Fund which has an identical US/INTL ...
by Sammy_M
Sun Jan 03, 2016 8:01 am
Forum: Investing - Theory, News & General
Topic: RAFI adds quality and momentum screens to value strategies
Replies: 1
Views: 375

Re: RAFI adds quality and momentum screens to value strategies

Thanks for sharing. Added the ERs for those interested PIMCO RAE Fundamental Global Fund - 50bp PIMCO RAE Fundamental US Fund - 40bp PIMCO RAE Fundamental US Small Fund - 50bp PIMCO RAE Fundamental International Fund - 50bp PIMCO RAE Fundamental Emerging Markets Fund -75bp They look to be a little l...
by Sammy_M
Sat Jan 02, 2016 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: Are Bogleheads Buying I-Bonds 2016?
Replies: 87
Views: 13428

Re: Are Bogleheads Buying I-Bonds 2016?

I am not Kevin M, but I don't think there's any easy way to answer that question. First of all, it depends on your marginal rates when you are older. Some factors are more or less predictable (like SS, DB pension, RMDs) and others are not (how your investments perform, inflation rates, changes in t...
by Sammy_M
Sat Jan 02, 2016 1:20 pm
Forum: Investing - Help with Personal Investments
Topic: Are Bogleheads Buying I-Bonds 2016?
Replies: 87
Views: 13428

Re: Are Bogleheads Buying I-Bonds 2016?

I see no benefit to increasing "tax-advantaged space" that can hold only a security earning 0.1% real, so it doesn't bother me at all that I didn't get my $20K allocation of additional "tax-deferred space" in 2015. The tax deferment is of little to no value to me, since I expect...
by Sammy_M
Fri Jan 01, 2016 8:03 pm
Forum: Investing - Theory, News & General
Topic: The 529: The Ultimate Bond Vehicle?
Replies: 21
Views: 2957

Re: The 529: The Ultimate Bond Vehicle?

or I-Bonds and EE Bonds. $10k per spouse per type.
by Sammy_M
Wed Dec 30, 2015 5:43 pm
Forum: Investing - Theory, News & General
Topic: What do you think of 5 year TIPS?
Replies: 46
Views: 4032

Re: What do you think of 5 year TIPS?

This should be a showcase thread. Start with a simple question of "what do you think of 5 year TIPS"...and magnificently analytical responses follow.

p.s. cudos on the chart
by Sammy_M
Wed Dec 30, 2015 5:32 pm
Forum: Investing - Help with Personal Investments
Topic: vwehx [Vanguard Hi-Yield Corporate Fund]
Replies: 52
Views: 3683

Re: vwehx [Vanguard Hi-Yield Corporate Fund]

I think Mel is just saying that if an investor is going to look at assets in isolation, high-yield should be less volatile than stocks. Of course a counter point is that assets should not be looked at in isolation, but that is easier to say than for some people to do. Here's the crux though: The OP ...
by Sammy_M
Tue Dec 29, 2015 11:21 am
Forum: Investing - Help with Personal Investments
Topic: More capital loss carryovers than can use in lifetime
Replies: 21
Views: 1820

Re: More capital loss carryovers than can use in lifetime

Other approaches: 1. I would sell the TSM that's in my taxable account, and then buy it back a couple of days later. Is doing that 4 times a year against any Vanguard "churning" rules? Are there any IRS rules that I would run afoul of? This is the one I am leaning toward since they have a...
by Sammy_M
Tue Dec 29, 2015 11:01 am
Forum: Investing - Help with Personal Investments
Topic: vwehx [Vanguard Hi-Yield Corporate Fund]
Replies: 52
Views: 3683

Re: vwehx [Vanguard Hi-Yield Corporate Fund]

IRA Wellesley (VWIAX)-----------------18% Wellington (VWENX)---------------30% Emerg. Mkts. (VEMAX)------------- 5% Money Mkt. (VMMXX)--------------24% Non IRA Total Stock Mkt (VTSAX)------------8% Bank Demand Deposits-------------15% Total---------------------------------100% What's your overall d...
by Sammy_M
Tue Dec 29, 2015 9:13 am
Forum: Investing - Help with Personal Investments
Topic: vwehx [Vanguard Hi-Yield Corporate Fund]
Replies: 52
Views: 3683

Re: vwehx

Thanks to all who replied. I will try to add some requested additional info. Current IRA portfolio: Wellesley VWIAX 24% Wellington VWENX 40% Emerg. Mkt. VEMAX 7% Money Mkt. VMMXX 29% RMDs taken annually, taxes sent to govt. & balance reinvested in Vanguard Total Stock Market in non IRA account....
by Sammy_M
Tue Dec 29, 2015 8:53 am
Forum: Investing - Help with Personal Investments
Topic: vwehx [Vanguard Hi-Yield Corporate Fund]
Replies: 52
Views: 3683

Re: vwehx [Vanguard Hi-Yield Corporate Fund]

IMHO, an investor should look at their total fixed income holdings in context of the overall portfolio and tax situation. For example, If you hold 90% of your fixed income in CDs, Govt Savings Bonds, and Treasuries (perhaps in taxable), adding 10% in High Yield Corporates (perhaps in IRAs) is a fine...
by Sammy_M
Mon Dec 28, 2015 6:40 pm
Forum: Investing - Help with Personal Investments
Topic: More capital loss carryovers than can use in lifetime
Replies: 21
Views: 1820

Re: More capital loss carryovers than can use in lifetime

Dec. Date is meaningless. It is the ex-dividend date that is important. What would be the ex-dividend date for the mutual funds in table 1? record date? https://personal.vanguard.com/us/insights/article/estimated-yearend-distributions-122015 Earlier I made a point of saying you should buy a not-sub...
by Sammy_M
Mon Dec 28, 2015 6:11 pm
Forum: Investing - Help with Personal Investments
Topic: More capital loss carryovers than can use in lifetime
Replies: 21
Views: 1820

Re: More capital loss carryovers than can use in lifetime

Seems like the right thing to do here is to start trading around dividend dates in order to avoid receiving (and thus paying tax on) dividends. Just before a dividend is distributed, sell and purchase a similar (but not substantially identical) fund that has already distributed its dividend. By doi...
by Sammy_M
Mon Dec 28, 2015 4:47 pm
Forum: Investing - Help with Personal Investments
Topic: More capital loss carryovers than can use in lifetime
Replies: 21
Views: 1820

Re: More capital loss carryovers than can use in lifetime

Thanks, but already a little late for that. This investor has SS and pension income that will keep them in the 25% bracket for the foreseeable future.

Also, not a lot of traditional IRA/401K money to work with. Most is in taxable.
by Sammy_M
Mon Dec 28, 2015 4:39 pm
Forum: Investing - Help with Personal Investments
Topic: More capital loss carryovers than can use in lifetime
Replies: 21
Views: 1820

More capital loss carryovers than can use in lifetime

Are there any investment strategies that you would suggest to someone who has more capital loss carryovers than they can use in their lifetime? (i.e. offsetting $3K of ordinary income each year)? This is a 30% stocks / 70% bonds investor with most of the assets held in taxable. Investments that gene...
by Sammy_M
Sun Dec 27, 2015 9:49 am
Forum: Investing - Theory, News & General
Topic: Share your current asset allocation?
Replies: 94
Views: 7215

Re: Share your current asset allocation?

Target 50% Equities: 50% US - 36% Dev Intl - 14% EM 30% Fixed income: Mostly CDs and I-Bonds/TIPS 20% Alternatives: 10% Real estate - 7% Long-short- 3% Gold miners Actual, incl. funds US: 16 TSM ■ 4 IJS, 2 BRSIX Dv: 12 VEA ■ 7 SFILX Em: 5 VWO ■ 3 DGS Bnd: 22 CDs ■ 8 I-Bonds/TIPS Alt: 10 direct RE ■...
by Sammy_M
Sun Dec 27, 2015 9:29 am
Forum: Investing - Theory, News & General
Topic: Powershares FTSE RAFI US 1000 turns 10
Replies: 4
Views: 611

Re: Powershares FTSE RAFI US 1000 turns 10

. The Powershares FTSE RAFI US 1000 (PRF) now has 10 years of live returns since inception on 12/19/2005. 10 yr annualized returns (according to M*) 7.74% = Powershares FTSE RAFI 1000 (PRF) 7.22% = iShares Russell 1000 (IWB) 6.71% = DFA US Large Value (DFLVX) Factor loads: https://www.portfoliovisu...

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