Search found 2689 matches

by alex_686
Mon Jan 15, 2018 6:13 pm
Forum: Investing - Help with Personal Investments
Topic: Inheritance
Replies: 2
Views: 474

Re: Inheritance

This question should not be asked in isolation. What you want to do is look at your entire portfolio and figure out what your Asset Allocation should be. i.e., what percent stocks, what percent bonds. Treat your mortgage as a negative bond. In a more general way the question is about leverage and ri...
by alex_686
Mon Jan 15, 2018 3:22 pm
Forum: Investing - Help with Personal Investments
Topic: If i open a new ira w wife will i get tax benefits from old investments?
Replies: 3
Views: 175

Re: If i open a new ira w wife will i get tax benefits from old investments?

I am not quite following.

Are you talking about adding new money to a IRA? then the answer is yes.

Are you talking about rolling over funds from the old 401k to a IRA? No. It is just a rollover, from a pre-tax advantaged account to another pre-tax advantage account.
by alex_686
Mon Jan 15, 2018 2:35 pm
Forum: Investing - Theory, News & General
Topic: Can the Schiller P/E ratio be used for tactical allocation?
Replies: 13
Views: 621

Re: Can the Schiller P/E ratio be used for tactical allocation?

No to Maybe. First, every study that I have seen comes to the conclusion that Schiller does not provided any statistical meaningful information if the market is over / under valued. What it can do is predict what the long term rate of return will be. Second, the problem with the P/E ratio is that it...
by alex_686
Mon Jan 15, 2018 10:23 am
Forum: Investing - Theory, News & General
Topic: Funds and prospectus benchmarks.
Replies: 8
Views: 496

Re: Funds and prospectus benchmarks.

Yes I did see that. Is it fair to compare the fund with dividends reinvested to an index without dividends. When I check vanguard, the comparison seems to be more apples to apples. Or am I misreading this? The wording is poor, but I would assume the performance of both the fund and the index are wi...
by alex_686
Sun Jan 14, 2018 8:59 am
Forum: Investing - Theory, News & General
Topic: Funds and prospectus benchmarks.
Replies: 8
Views: 496

Re: Funds and prospectus benchmarks.

jackal wrote:
Sun Jan 14, 2018 12:04 am
That is where I am checking out the prospectus. Can’t see how the returns are being calculated for the fund vs. the index.
If you check out the fact sheet, immediately under the return presentation it states that the fund's returns are after expenses and dividends are reinvested. Does this help?
by alex_686
Sat Jan 13, 2018 4:00 pm
Forum: Investing - Help with Personal Investments
Topic: VSMGX and VNQ Portfolio
Replies: 3
Views: 304

Re: VSMGX and VNQ Portfolio

I am for overweighing REITs, but this is a topic of debate. I would sorta of agree with the OP - real estate is not propereraly represented in the market basket and REITs are a o.k. proxy. However, I would only do it in a tax advantaged space.
by alex_686
Sat Jan 13, 2018 8:06 am
Forum: Investing - Theory, News & General
Topic: Funds and prospectus benchmarks.
Replies: 8
Views: 496

Re: Funds and prospectus benchmarks.

So do the net returns not have any dividends whatsoever? (The question was why some benchmarks are gross and others are net dividends) In this context, MSCI Net returns are the returns after foreign withholding tax. It can be presented either as a price return or a total return (dividends reinveste...
by alex_686
Fri Jan 12, 2018 5:59 pm
Forum: Personal Consumer Issues
Topic: AirBnB my Van?
Replies: 27
Views: 2221

Re: AirBnB my Van?

DavidHutton wrote:
Fri Jan 12, 2018 5:53 pm
I think that I read that someone in New York or one of the boroughs was doing that.
I would put my money on Minneapolis during the Superbowl. It might be a bit chilly in February but some are well heated / insulated.
by alex_686
Fri Jan 12, 2018 5:45 pm
Forum: Investing - Help with Personal Investments
Topic: Do bonds generally go up when the stock market crashes?
Replies: 27
Views: 1444

Re: Do bonds generally go up when the stock market crashes?

There is a low positive correlation between stock and bond returns -around .4 to .6 depending on which time period you use. I wouldn't call a correlation of .4 to .6 low; it's really pretty large. Definitely large enough to base a decision on if it is true. 2 things. First, there is context. It ter...
by alex_686
Fri Jan 12, 2018 5:08 pm
Forum: Investing - Theory, News & General
Topic: Funds and prospectus benchmarks.
Replies: 8
Views: 496

Re: Funds and prospectus benchmarks.

Part of it is what the portfolio manager wants to be bench-marked against. If your universe of expertise is US domestic stocks - large and small - then you chose the Russell 3000. If international, then something MSCI. Sometimes the portfolio manager hews closely to the index they have chosen, somet...
by alex_686
Fri Jan 12, 2018 4:50 pm
Forum: Investing - Help with Personal Investments
Topic: question about VBTLX
Replies: 27
Views: 1507

Re: question about VBTLX

saltycaper wrote:
Fri Jan 12, 2018 4:22 pm
Also, contrary to popular commentary here, just because the "consensus" is 3 or 4 hikes, that does not mean the number of hikes that actually will occur are "priced in." There are probabilistic and time elements here that are not considered.
What elements are you talking about?
by alex_686
Fri Jan 12, 2018 4:47 pm
Forum: Investing - Help with Personal Investments
Topic: Do bonds generally go up when the stock market crashes?
Replies: 27
Views: 1444

Re: Do bonds generally go up when the stock market crashes?

There is a low positive correlation between stock and bond returns -around .4 to .6 depending on which time period you use. There is also a causal effect between bonds and stocks. A stock's value is its discounted Free Cash Flow to Equity (FCFE). When yields go down (i.e. bond prices go up), the dis...
by alex_686
Fri Jan 12, 2018 4:30 pm
Forum: Personal Consumer Issues
Topic: [Lightning rods for my house? Or too "old fashioned"?
Replies: 32
Views: 1903

Re: [Lightning rods for my house? Or too "old fashioned"?

Informative and funny and mostly on topic: https://what-if.xkcd.com/16/ How dangerous is it, really, to be in a pool during a thunderstorm? —Jay Gengelbach What would happen if you were taking a shower when you were struck by lightning? Or standing under a waterfall? —same3chords What would happen i...
by alex_686
Fri Jan 12, 2018 4:07 pm
Forum: Investing - Help with Personal Investments
Topic: question about VBTLX
Replies: 27
Views: 1507

Re: question about VBTLX

First, I think Jalbert was referring to equity index funds. Equities have favorable tax treatment of dividends. The exception is REITs. Actually, what is even more favorable is the long term capital gains tax rate. This favors equities over bonds. Question - what is the timespan for change in yield ...
by alex_686
Fri Jan 12, 2018 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Hello question [HELOC payoff question]
Replies: 5
Views: 288

Re: Hello question

This is almost not a financial question. We could talk about the fees for getting a fixed rate mortgage verse the slightly higher interest you are paying on a HELOC. However, the main thrust of your post is about moving from a cheaper house to a more expensive house. There are fees from selling your...
by alex_686
Thu Jan 11, 2018 3:02 pm
Forum: Forum Issues and Administration
Topic: EU investing
Replies: 8
Views: 487

Re: EU investing

No. As a practical matter there is no such thing as EU investing. There is Portuguese investing, French investing, German investing, Greek investing ... . Some of these have things in common. Some of them have as darn near as much in common with US investing as they do with each other. OK - I kind ...
by alex_686
Thu Jan 11, 2018 1:12 pm
Forum: Investing - Theory, News & General
Topic: Accelerated Bookbuild - who's informed and when? And what are the consequences?
Replies: 21
Views: 1048

Re: Accelerated Bookbuild - who's informed and when? And what are the consequences?

I am a little bit surprised that company principles can sell significant assets without filing a 10K. But I am just a zooplankton myself. That is why I no longer invest in individual small-cap stocks, I use index funds exclusively. I think Lauretta is investing in European small cap stocks. If so, ...
by alex_686
Wed Jan 10, 2018 4:56 pm
Forum: Investing - Help with Personal Investments
Topic: question about VBTLX
Replies: 27
Views: 1507

Re: question about VBTLX

so to my second question.. the Fed is planning 3 or 4 .25 basis point hikes during this year. How would that affect this fund. I read a bit about it and noticed that the current yield is 2.6% and duration is 5.6 yrs so a .25 basis upward change in rates would reduce the NAV by 5.6 x .25 = 1.4%? If ...
by alex_686
Wed Jan 10, 2018 3:33 pm
Forum: Investing - Theory, News & General
Topic: If I have a million with Edward Jones, in 10 years, how much money has my FA made off me?
Replies: 48
Views: 6191

Re: If I have a million with Edward Jones, in 10 years, how much money has my FA made off me?

You misunderstand. Brokerage Firm A - customer holds individual securities (Dow 30 equities) valued at $100,000. The 150% margin balance only applies if the OP's mother is borrowing against her own portfolio value. It has been 10 years but this used to be my day job. This is not how it works. The c...
by alex_686
Wed Jan 10, 2018 3:08 pm
Forum: Investing - Theory, News & General
Topic: If I have a million with Edward Jones, in 10 years, how much money has my FA made off me?
Replies: 48
Views: 6191

Re: If I have a million with Edward Jones, in 10 years, how much money has my FA made off me?

As far as your mothers account only costing $11K - that is what you calculate, however many of these brokerage accounts holding securities are frequently lent out via securities lending arrangement to outside parties unbeknown to the person holding the account. I doubt this. For individual accounts...
by alex_686
Wed Jan 10, 2018 3:02 pm
Forum: Investing - Theory, News & General
Topic: If I have a million with Edward Jones, in 10 years, how much money has my FA made off me?
Replies: 48
Views: 6191

Re: If I have a million with Edward Jones, in 10 years, how much money has my FA made off me?

I was surprised to find that my mom is only paying about $11,000 in fees on her $3M portfolio with EJ, which is comprised mostly of fund expense ratios (some of which are VERY high) ... To extend on this a bit, EJ would get the trailing 12b-1 fees, which are disclosed and are part of the expense ra...
by alex_686
Wed Jan 10, 2018 2:08 pm
Forum: Investing - Theory, News & General
Topic: Why bother with corporate bond funds instead of just U.S. Treasuries + Stock Index Fund/ETF?
Replies: 16
Views: 765

Re: Why bother with corporate bond funds instead of just U.S. Treasuries + Stock Index Fund/ETF?

Cost is low, control is a illusion according to behavioral economics, and all of my bonds are in tax advantage space. So I would push those objections to one side. That leaves us with 2 questions. Does the credit risk of bonds compensate for risk? How correlated is credit risk with Equity Risk Premi...
by alex_686
Wed Jan 10, 2018 1:59 pm
Forum: Investing - Theory, News & General
Topic: Accelerated Bookbuild - who's informed and when? And what are the consequences?
Replies: 21
Views: 1048

Re: Accelerated Bookbuild - who's informed and when? And what are the consequences?

FYI, in the US this would be very illegal. Insiders, which would included anybody who owns more than 5%, has to register their intent with the SEC prior to any action and this is published on EDGER, SEC's database. Plus, often one has to hand off the exact timing of the trade to a 3rd party. There a...
by alex_686
Tue Jan 09, 2018 3:16 pm
Forum: Investing - Help with Personal Investments
Topic: target date fund with cash instead of bonds
Replies: 8
Views: 718

Re: target date fund with cash instead of bonds

I was just reading a Kitces article on another subject and he referred to T-Bills as cash. Perhaps your site is also counting T-Bills as cash, whereas other sites like Morningstar or State Street are listing them as bonds. I don't think this is the answer. I can't think of anybody who does not coun...
by alex_686
Tue Jan 09, 2018 1:17 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Q: Bonds vs. CDs or other alternatives
Replies: 1
Views: 196

Re: Portfolio Q: Bonds vs. CDs or other alternatives

1. Expected rate hikes are already baked in. VBTLX has a SEC yield of 2.6%, Ally's 11 month is at 1.6%. So why? Yes, VBTLX has a higher risk duration but since you are in a retirement account I would assume your investment horizon is long enough to take this type of risk. TIPS are even safer but hav...
by alex_686
Tue Jan 09, 2018 10:12 am
Forum: Investing - Help with Personal Investments
Topic: Maybe not a win for teachers/I need some advice
Replies: 46
Views: 2723

Re: Maybe not a win for teachers/I need some advice

I would start off with asking what Aspire does. Then maybe ask what they are charging. Off hand I would guess that they were handling the administrative end of running the plan. Somebody has to do it, there are expenses associated with it, so it may not be inherently evil.
by alex_686
Mon Jan 08, 2018 1:05 pm
Forum: Investing - Theory, News & General
Topic: Living on Dividends and Interest
Replies: 19
Views: 2573

Re: Living on Dividends and Interest

It would be incorrect. One should focus on the "Total Return" of the portfolio and just not focus on one narrow area of return. I understand the appeal but the problem with this approach is that it is a intellectual shortcut. There are 2 problems here. First, it tends to be overall conservative. Pro...
by alex_686
Sun Jan 07, 2018 11:25 pm
Forum: Investing - Theory, News & General
Topic: Ratio of USA stocks to closely approximate a "Total World Stock Index" using only two Fidelity funds (TSM & TISM)
Replies: 4
Views: 351

Re: Ratio of USA stocks to closely approximate a "Total World Stock Index" using only two Fidelity funds (TSM & TISM)

Yes, you are correct.

You can ignore the 80% comment. It is legal boilerplate. To be a index fund the fund must invest 80% in the index. It is the legally minimum requirement so the lawyers stick it in there in.
by alex_686
Sun Jan 07, 2018 12:05 pm
Forum: Investing - Theory, News & General
Topic: Does the S&P 500 Grow Faster Than the Economy?
Replies: 31
Views: 2896

Re: Does the S&P 500 Grow Faster Than the Economy?

6.3% is not the market's growth rate. The market cannot reinvest dividends. The market already owns all the shares of every company's stock. I will second this. It might be useful to look at the returns of prefered stockks. They too have outpaced thhe economy and have zero growth. It might also be ...
by alex_686
Sun Jan 07, 2018 9:24 am
Forum: Investing - Theory, News & General
Topic: Lowering my risk profile (AA or options)
Replies: 2
Views: 245

Re: Lowering my risk profile (AA or options)

Historically there is not much differfence in thhe 3 strategies. Writing calls does deliver higher returns over the past 40 years or so. The problem here is tail events - big sudden down movements. So it is hard to tell if the risk adjusted return will actually be better. I would go with option #1. ...
by alex_686
Fri Jan 05, 2018 9:17 pm
Forum: Investing - Help with Personal Investments
Topic: pension contributions in your overall asset allocation
Replies: 15
Views: 794

Re: pension contributions in your overall asset allocation

My pension plan has no cash value. It becomes "income" only after it begins paying. Income is a cash flow, cash flow has a NPV, ergo it has a cash value. Probability of vestment, bankruptcy of the entity, and finial cash values are variable so modeling its cash value is hard. Just because it is har...
by alex_686
Fri Jan 05, 2018 8:42 pm
Forum: Investing - Help with Personal Investments
Topic: Financial field position and qualification
Replies: 3
Views: 418

Re: Financial field position and qualification

No qualifications per se.

SQL and programming languages will get you in the door but these are just tools. Math, logic, economics and accounting are key skills. Drive and emotional control are also key sills.
by alex_686
Fri Jan 05, 2018 8:30 pm
Forum: Investing - Theory, News & General
Topic: Evaluation principle for non-dividend paying stock
Replies: 5
Views: 298

Re: Evaluation principle for non-dividend paying stock

One can substitute earnings for dividends. It is not prefect but it does have predictive powers. Or one can use a multiple of earnings. Or book, sales, or whatever. Another choice is a spreadsheet model but that is a custom built it out of your own assumptions type of model.
by alex_686
Fri Jan 05, 2018 8:14 pm
Forum: Investing - Help with Personal Investments
Topic: pension contributions in your overall asset allocation
Replies: 15
Views: 794

Re: pension contributions in your overall asset allocation

Pensions, Social Security, and the like are consider "bond like" assets. Ideally you would be able to figure out the Net Present Value (NPV) of your pension to figure out your asset allocation. This can be tricky. Pensions do allow you to be more aggressive in the other investment accounts.
by alex_686
Fri Jan 05, 2018 4:12 pm
Forum: Investing - Help with Personal Investments
Topic: How fast can one sell their shares? Also questions about why NOT to try to time the market.
Replies: 7
Views: 514

Re: How fast can one sell their shares? Also questions about why NOT to try to time the market.

Use ETFs and you can sell in milliseconds. Well, maybe if you pay top dollar for that type of account. Most of use discount brokers so a few seconds. Much much faster than Bitcoin. The stock market has much deeper liquidity than Bitcoin. In short, don't worry about it. Now to market timing. To time ...
by alex_686
Fri Jan 05, 2018 3:56 pm
Forum: Investing - Help with Personal Investments
Topic: Do all investment earnings in IRA/401k need to stay in the account until retirement?
Replies: 5
Views: 480

Re: Do all investment earnings in IRA/401k need to stay in the account until retirement?

Reinvested income withing the tax advantaged account remains tax advantaged. This is not an issue. You can sell, buy, re-balance, etc. within your tax advantaged account. So that answers one set of questions. You can take funds out of most tax advantaged accounts at any time. However they are no lon...
by alex_686
Fri Jan 05, 2018 3:41 pm
Forum: Investing - Help with Personal Investments
Topic: As a German: Should I go 100% US stocks?
Replies: 50
Views: 3258

Re: As a German: Should I go 100% US stocks?

How would you invest if you’d be European? Currency aside, I personally think it's important to invest a good amount in your home country to make sure the engine of your returns properly tracks the local inflation it needs to account for. What evidence do you have that inflation and home country re...
by alex_686
Fri Jan 05, 2018 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: Accounting question - "Cash Equivalents" for organization
Replies: 30
Views: 979

Re: Accounting question - "Cash Equivalents" for organization

Companies do not get to make their own rules regarding what is considered a cash equivalent. Maybe. However they may fall under different accounting standards. SEC has one standard, GAAP, state boards, etc. have slightly different standards. And that is for external reporting. Internal reporting is...
by alex_686
Fri Jan 05, 2018 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: Accounting question - "Cash Equivalents" for organization
Replies: 30
Views: 979

Re: Accounting question - "Cash Equivalents" for organization

This is not correct. This is from CCH: Not sure what the CCH is, but my definition fits squarely with the SEC's definition of what cash is. Different organizations have different standards on what cash is and have different rationals for those differences. This is why I encouraged the OP to look to...
by alex_686
Fri Jan 05, 2018 2:31 pm
Forum: Investing - Help with Personal Investments
Topic: As a German: Should I go 100% US stocks?
Replies: 50
Views: 3258

Re: As a German: Should I go 100% US stocks?

I feel like I spend too much of my time on this board encouraging US investors to give up their irrational domestic basis. On Buffett, Bogle, etc., I keep hearing these offhand statement attributed to them but I have not seen any logic or reasoning behind them. Everything that I have read that is ri...
by alex_686
Fri Jan 05, 2018 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: Accounting question - "Cash Equivalents" for organization
Replies: 30
Views: 979

Re: Accounting question - "Cash Equivalents" for organization

I would double check the accounting standard. There should be some documentation on why that standard is that standard. From my experience, cash equivalents are bonds with maturities under a year. This better reflects economic reality. However, this is more complex than bonds issued with less than 1...
by alex_686
Fri Jan 05, 2018 11:45 am
Forum: Investing - Theory, News & General
Topic: Help Us Learn More About Stable Value Fund
Replies: 10
Views: 622

Re: Help Us Learn More About Stable Value Fund

FYI. I corrected the ER from 0.04% to 0.40% in the original post. Don't worry so much about the expense ratio, focus on the yield. Stable Value funds are insurance products, not investment products. So you can't directly compare the expense ratio between the 2 because they are calculated differently.
by alex_686
Fri Jan 05, 2018 10:13 am
Forum: Investing - Help with Personal Investments
Topic: Most conservative portfolio?
Replies: 4
Views: 428

Re: Most conservative portfolio?

2nd on a short time period. Plus all of the other issues with backtesting.

The most conservative portfolio out there is to construct a TIPS ladder. Absolutely bulletproof. Only downside is there is not much return.
by alex_686
Fri Jan 05, 2018 10:05 am
Forum: Investing - Theory, News & General
Topic: Eight Very Basic Questions About Mutual/Index Funds
Replies: 21
Views: 2797

Re: Three More Very Basic Questions About Mutual/Index Funds

Editing OP to add three super basic questions: 6. do big Small Value funds like VSIAX with over $29.6 billion in assets eventually hold all/most of the shares of the companies it invests in, since those companies have low capitalization? 7. do big Small Value funds like VSIAX with over $29.6 billio...
by alex_686
Thu Jan 04, 2018 5:35 pm
Forum: Investing - Theory, News & General
Topic: Why Edward Jones?
Replies: 25
Views: 3346

Re: Why Edward Jones?

I am surprised that there aren't more fiduciary hourly fee only advisors popping up with CFP designations. There is a market for it but it seems many people tend to follow their parents investing strategy. Investors can't afford to pay what an advisor needs to earn to stay in business. Certainly th...
by alex_686
Thu Jan 04, 2018 5:31 pm
Forum: Investing - Help with Personal Investments
Topic: Asking a very basic question on what invest in a brokerage account
Replies: 6
Views: 282

Re: Asking a very basic question on what invest in a brokerage account

Note, the S&P 500 is just the top 500 or so stocks. So no small cap here. The entire US market is around 10,000 stocks. Question - how far do you want to dig down? The more stocks the more like it is to "The Market". The closer one is to "The Market" the more efficient a portfolio is - in theory. Ho...
by alex_686
Thu Jan 04, 2018 5:23 pm
Forum: Investing - Theory, News & General
Topic: Boglehead View on Entrepreneurship?
Replies: 14
Views: 1075

Re: Boglehead View on Enterprenureship?

The Boglehead position is that the market basket is the most efficient portfolio. In order to beat this portfolio one needs to bring exceptional skill. To develop that skill requires time and effort. Plus a little luck. This is true if one is picking individual stocks, investing directly in real est...
by alex_686
Thu Jan 04, 2018 4:52 pm
Forum: Investing - Help with Personal Investments
Topic: How to invest in vietnam stock market?
Replies: 19
Views: 1433

Re: How to invest in vietnam stock market?

Out of curiosity, is there such thing as "mutual fund" for frontier market? Or is ETF the way to go? Funds can either be passive (a.k.a. indexed) or active. ETFs tend to be passive, mutual funds can be either. I would skip investing in Vietnam and suggest that you invest your time on reading up on ...
by alex_686
Thu Jan 04, 2018 4:37 pm
Forum: Investing - Theory, News & General
Topic: Why Edward Jones?
Replies: 25
Views: 3346

Re: Why Edward Jones?

FYI, one of my past jobs was forecasting profitability of newbie financial advisories. EJ in my opinion is no better and no worse then other brokerage houses. I find that high quality and low quality advisories are evenly distributed across brokerage firms. I notice people complain of bad ones but n...