Search found 1111 matches

by asset_chaos
Tue Dec 06, 2016 4:40 am
Forum: Investing - Theory, News & General
Topic: What does Dave Ramsey mean by "ride the wave"
Replies: 26
Views: 4451

Re: What does Dave Ramsey mean by "ride the wave"

There is a tide in the affairs of men. Which, taken at the flood, leads on to fortune; Omitted, all the voyage of their life Is bound in shallows and in miseries. says Brutus in Julius Ceasar, urging bold action, when Cassius wants to be more cautious. However, if memory serves, Brutus and Cassius ...
by asset_chaos
Thu Nov 24, 2016 4:25 am
Forum: Investing - Theory, News & General
Topic: How often do you hit your rebalancing bands?
Replies: 31
Views: 1921

Re: How often do you hit your rebalancing bands?

Hard rebalances at 1999, 2003, 2009, 2016. I have two rebalancing points, a soft one and a hard one. At the soft point I turn on the auto dividend direction from what's high to what's low; the soft band is breached reasonably often, almost every year. At the hard point, it's gotten so far off that I...
by asset_chaos
Thu Nov 24, 2016 3:59 am
Forum: Personal Consumer Issues
Topic: Do you use quick wash when using your dishwasher?
Replies: 29
Views: 2742

Re: Do you use quick wash when using your dishwasher?

We typically use the energy/water saver setting that takes about 15 minutes longer than the standard cycle; it produces clean dishes to my eye. But, since our dishwasher is full every day after dinner, as long as the cycle finishes before breakfast the next morning, I don't care how long it takes. T...
by asset_chaos
Sun Nov 13, 2016 2:44 pm
Forum: Investing - Theory, News & General
Topic: Invesco Ad in This Weekend's WSJ
Replies: 10
Views: 1290

Re: Invesco Ad in This Weekend's WSJ

I think it's evidence that makes for "high conviction" investing. That's why my high conviction investing is done through low cost, highly diversified index funds.

PS---Did anyone else read "high conviction investing" and think of Bernie Madoff?
by asset_chaos
Sat Nov 12, 2016 3:16 am
Forum: Personal Finance (Not Investing)
Topic: Monthly grocery costs? How do you keep it low?
Replies: 155
Views: 14528

Re: Monthly grocery costs? How do you keep it low?

$650 divided by 30 days divided by 4 people is $5.42 per person per day. That doesn't sound like too much to me. For what it's worth our family is closer to $8 per person per day for everything, not just food, that comes from a grocery store. I'm not aware of data on the distribution of per person d...
by asset_chaos
Sun Nov 06, 2016 3:34 pm
Forum: Investing - Theory, News & General
Topic: VT (Total World Stock) vs VTI/VEA/VWO
Replies: 7
Views: 726

Re: VT (Total World Stock) vs VTI/VEA/VWO

Total world also benefits when emerging markets soar because it holds them at market weight. Likewise total world fully participates when emerging markets tank. That's just a feature of total market type simplicity: you don't see the waxing and waning of the individual market sectors (however you ca...
by asset_chaos
Thu Nov 03, 2016 9:41 pm
Forum: Investing - Help with Personal Investments
Topic: Simple Stock Allocation for European investor
Replies: 5
Views: 395

Re: Simple Stock Allocation for European investor

Perfectly reasonable for stocks. Emerging markets is only about 10% of global market cap if approximating global market is your aim. Any bonds?
by asset_chaos
Sun Oct 30, 2016 7:01 pm
Forum: Investing - Theory, News & General
Topic: How much international?
Replies: 78
Views: 6270

Re: How much international?

For a US investor it's not that hard. Any non-US stock investment weighting between greater than zero and less or equal to global market weight will be fine, provided you can stick to your plan. (Disclosure: I have global market weight.)
by asset_chaos
Sun Oct 30, 2016 6:44 pm
Forum: Investing - Theory, News & General
Topic: Are there any Australian based investors out there ?
Replies: 2
Views: 200

Re: Are there any Australian based investors out there ?

Welcome. Type Australia into the search box in the upper right of this page and the first result is the wiki page for Boglehead investing in Australia. It's a good start point, but the wiki is still a work in progress. Since they are unpredictable, try not to worry too much about market gyrations. M...
by asset_chaos
Fri Oct 28, 2016 7:23 pm
Forum: Investing - Theory, News & General
Topic: Part one of two parter on dividend strategies via active funds
Replies: 5
Views: 700

Re: Part one of two parter on dividend strategies via active funds

While not changing any conclusions, in the table I think average expense ratio should be closer to 0.75 than 0.65.
by asset_chaos
Thu Oct 27, 2016 8:18 pm
Forum: Investing - Help with Personal Investments
Topic: Holding Individual Corporate Bonds - What should I do with them?
Replies: 9
Views: 699

Re: Holding Individual Corporate Bonds - What should I do with them?

Can these bonds default? These are big companies that are not going to disappear, does that mean that their bonds can't default? No, it does not mean that. Any corporate bond can default. Remember, not too many years ago, Lehman Brothers bonds went from AA rated to default in days. Do you know what...
by asset_chaos
Sun Oct 23, 2016 8:37 pm
Forum: Investing - Theory, News & General
Topic: Who disagrees with Jack. . .
Replies: 73
Views: 5457

Re: Who disagrees with Jack. . .

Bogle has proven himself a great man and both deeply knowledgeable and wise in his field. I respect and am willing to consider everything he says about investing, but I don't have any qualms about rejecting any argument of his as unpersuasive if I don't find it so. His status as "Saint Jack&quo...
by asset_chaos
Sun Oct 16, 2016 6:31 pm
Forum: Investing - Help with Personal Investments
Topic: Best World Equity ETF ( Not RA Investment )
Replies: 7
Views: 542

Re: Best World Equity ETF ( Not RA Investment )

I wanted to focus solely on equities from all around the world but obviously with a split towards towards " stabler economies " I was thinking about just going all in on the first [Total World] but then I am heavy on US Stocks so a split between the 2 [Total World and World ex-US] might b...
by asset_chaos
Thu Oct 13, 2016 2:43 am
Forum: Investing - Theory, News & General
Topic: Cliff Asness - Turning Over Accepted Wisdom with Turnover
Replies: 29
Views: 2622

Re: Cliff Asness - Turning Over Accepted Wisdom with Turnover

If the insight is meaningful or in any way important, then it should already be observable in the mean of active managers' returns lagging the index fund's return by noticably less than their cost differences. AQR probably has access to data to estimate that. Does it? If not, then it's a minor theor...
by asset_chaos
Mon Oct 10, 2016 3:34 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Total World Stock Index Fund Review
Replies: 44
Views: 6896

Re: Vanguard Total World Stock Index Fund Review

Any thoughts on using the Vanguard Total World Stock Index Fund (VTWSX) as your sole stock fund? Lets say you wanted to do simple two fund portfolio of 60% Vanguard Total World Stock Index Fund (VTWSX) 40% Vanguard Total Bond Market (VBMFX) Are there any concern one might have with having both U.S ...
by asset_chaos
Sat Oct 08, 2016 8:52 pm
Forum: Investing - Help with Personal Investments
Topic: Why is Vanguard Total World Stock More Expensive Than Total US and Total International?
Replies: 14
Views: 2347

Re: Why is Vanguard Total World Stock More Expensive Than Total US and Total International?

It's pretty simple. Because at Vanguard each individual fund is operated at cost, and because the dollar costs don't go up anywhere near proportionately to the assets in the funds, the more assets in a fund, the smaller its expense percentage needs to be to bring in the total dollars that it costs t...
by asset_chaos
Sun Oct 02, 2016 6:22 pm
Forum: Investing - Theory, News & General
Topic: Three Blind Mice and Passive/Active debate
Replies: 10
Views: 1752

Re: Three Blind Mice and Passive/Active debate

Stepping back to the biggest picture, since 2008, over $1 trillion has flooded into index funds in some form, helping passively managed stock funds and ETFs swell to comprise over 40 percent of the $8-plus trillion pie, double their share from a decade ago... ...The problem is these feeding frenzie...
by asset_chaos
Sun Oct 02, 2016 3:17 pm
Forum: Investing - Help with Personal Investments
Topic: Switching from slice/dice to 2/3 fund portfolio
Replies: 3
Views: 521

Re: Switching from slice/dice to 2/3 fund portfolio

Institutional Index is the same as Total International Stock Index Fund but the other 2 we’re using don’t equate. Other options with Suggestions on what a new setup using these four accounts and a 2 fund portfolio, split 50/50 would look like would be greatly appreciated. Also, does it make sense t...
by asset_chaos
Sat Sep 24, 2016 7:08 pm
Forum: Investing - Theory, News & General
Topic: Interesting Article about Factor Premiums and Implementation Costs
Replies: 4
Views: 638

Re: Interesting Article about Factor Premiums and Implementation Costs

VBR has underperformed its index by 1 basis point, so whatever it is doing with turnover, it is actually making a net gain, either from managing turnover or from other factors such as securities lending. As I own some of the small-value fund, I read the reports. Securities lending income covers a s...
by asset_chaos
Sun Sep 18, 2016 8:11 pm
Forum: Investing - Theory, News & General
Topic: Bogle, ghost in the machine: sophisticated analysis concludes for retirement security save more, invest simply
Replies: 1
Views: 695

Bogle, ghost in the machine: sophisticated analysis concludes for retirement security save more, invest simply

Vanguard has published a highly sophisticated analysis on constructing target date fund glide paths, which are how target date funds de-risk by changing the stock:bond ratio with time ( https://institutional.vanguard.com/VGApp/iip/site/institutional/researchcommentary/article/InvResLifeCycleInvestMo...
by asset_chaos
Wed Sep 14, 2016 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: Is A Two-Fund Portfolio All You Really Need?
Replies: 44
Views: 5676

Re: Is A Two-Fund Portfolio All You Really Need?

minimalistmarc wrote:I'm a one fund portfolio with Vanguard all world.

Unless you mean total world stock index fund, I'm not familiar with the all world fund. What is it?
by asset_chaos
Mon Sep 12, 2016 9:06 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Investments while living overseas
Replies: 10
Views: 881

Re: Vanguard Investments while living overseas

There seems to be contradictory stories about this, and I don't know what Vanguard's official policy is. But, I've lived abroad for 20 years and had opened my Vanguard account 10 years before that. I've never had my account frozen or restricted, I've opened new accounts for children and a trust, I;v...
by asset_chaos
Tue Aug 30, 2016 8:44 pm
Forum: Investing - Theory, News & General
Topic: Who owns the stock market & why it may matter
Replies: 10
Views: 1749

Re: Who owns the stock market & why it may matter

Who owns the missing quarter of the stock market?
by asset_chaos
Tue Aug 30, 2016 8:15 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on what to do with an inherited condo
Replies: 10
Views: 505

Re: Advice on what to do with an inherited condo

If the only issues are (1) MIL doesn't like paying the ~$3.5k per year but (2) others in the family like having a vacation house on tap, why doesn't the part of the family that uses the house just pay the $3.5k per year. Consider it rent or a usage fee. On the other hand, if MIL is uncomfortable hav...
by asset_chaos
Sat Aug 20, 2016 6:21 pm
Forum: Investing - Help with Personal Investments
Topic: Reconsidering glide path
Replies: 11
Views: 1333

Re: Reconsidering glide path

You don't just have a risk tolerance. As Larry Swedroe says, you have have need, ability and willingness to bear risk; all three are important and different. Five years ago you felt behind, a late starter with a need to catch up. You felt the need to take more risk, and your ability, being young, an...
by asset_chaos
Thu Aug 11, 2016 8:52 pm
Forum: Investing - Help with Personal Investments
Topic: Are total world funds really balanced effectively?
Replies: 2
Views: 339

Re: Are total world funds really balanced effectively?

The total world stock market is special in the usual sense that it is by definition the portfolio that all investors in aggregate hold, where all means all investors in the world. If a Turkish investor is light on the US, she must be overweight elsewhere; probably overweight in Turkish stocks becaus...
by asset_chaos
Tue Aug 09, 2016 4:38 pm
Forum: Investing - Theory, News & General
Topic: Global value funds?
Replies: 21
Views: 2169

Re: Global value funds?

Total world is my core equity investment, but I want some small-value tilt. I would prefer a global small-value fund, but clearly that's an unpopular investment: of the thousands of wacky etfs launched not one has been a global small-value factor fund. To roughly approximate global small-value, I u...
by asset_chaos
Mon Aug 08, 2016 4:33 pm
Forum: Investing - Theory, News & General
Topic: Global value funds?
Replies: 21
Views: 2169

Re: Global value funds?

Total world is my core equity investment, but I want some small-value tilt. I would prefer a global small-value fund, but clearly that's an unpopular investment: of the thousands of wacky etfs launched not one has been a global small-value factor fund. To roughly approximate global small-value, I us...
by asset_chaos
Sat Jul 16, 2016 7:47 pm
Forum: Investing - Theory, News & General
Topic: NEED HELP: Creating an Asset Class Valuation Model
Replies: 6
Views: 608

Re: NEED HELP: Creating an Asset Class Valuation Model

One approximate way would be to assign a live fund or etf to represent the asset class. For example, the institutional shares of total stock fund to represent the broad US stock asset class. Then morningstar lists standard valuation metrics (current in whatever way morningstar keeps them current), s...
by asset_chaos
Tue Jul 12, 2016 10:50 pm
Forum: Investing - Help with Personal Investments
Topic: What index funds would be best for diversifying my current portfolio?
Replies: 13
Views: 1374

Re: What index funds would be best for diversifying my current portfolio?

You need to move towards a portfolio that will make you most comfortable with the inevitable swings of the markets and that is also consistent with your goals for investing. As I don't know anything about your risk tolerance or goals (other than that you're 27 and have amorphous goals), I'll tell yo...
by asset_chaos
Sat Jul 09, 2016 7:20 pm
Forum: Personal Finance (Not Investing)
Topic: Specify asset allocation in a Trust?
Replies: 53
Views: 2732

Re: Specify asset allocation in a Trust?

Good question about the level of control. Our son does not technically qualify for a special needs trust, but his lack of understanding about finances may cause him to make some mistakes if he sees some new opportunity on the news, for instance. I am just trying to protect him from that by giving h...
by asset_chaos
Sat Jul 02, 2016 7:08 pm
Forum: Investing - Theory, News & General
Topic: Tilting Toward a Country that Isn't the US?
Replies: 18
Views: 1950

Re: Tilting Toward a Country that Isn't the US?

Surely there might be a case to be made for tilting toward politically stable countries with a long history of doing well economically? If you wanted to do that, there is the developed markets index fund. That seems to be more or less what one means by developed markets. Or if you want to predict w...
by asset_chaos
Fri Jun 24, 2016 7:15 pm
Forum: Investing - Theory, News & General
Topic: profitability premium, why it exists
Replies: 1
Views: 286

Re: profitability premium, why it exists

The fact that we now know pricing errors—more than rational risk-based explanations—contribute to the profitability premium does not mean it’s doomed to disappear. Anomalies can persist because of limits to arbitrage, which prevent misspricings from being corrected. How would limits to arbitrage wo...
by asset_chaos
Fri Jun 10, 2016 8:51 pm
Forum: Investing - Theory, News & General
Topic: rise of low-cost managers like Vanguard should be celebrated
Replies: 0
Views: 386

rise of low-cost managers like Vanguard should be celebrated

Article in the Economist ( http://www.economist.com/news/leaders/21700390-rise-low-cost-managers-vanguard-should-be-celebrated-slow-motion-revolution ) about Vanguard and the rise of tracker (what the Brits call index) funds. Some parts of it could have been ghost-written by Bogle. The real problem ...
by asset_chaos
Sat Jun 04, 2016 4:01 am
Forum: Investing - Help with Personal Investments
Topic: Hold or sell inherited munis?
Replies: 17
Views: 1345

Re: Hold or sell inherited munis?

Your decision is somewhat more complex, but your sister's appears to be simple. If she wants to use this money in a few years, she should not hold the money in long term bonds. She should sell the bonds and put the money in a 12-24 month CD, so the money will definitely be there when she wants to us...
by asset_chaos
Tue May 31, 2016 8:05 pm
Forum: Investing - Theory, News & General
Topic: Be thankful you are not a pension fund, WSJ
Replies: 47
Views: 7137

Re: Be thankful you are not a pension fund, WSJ

Neither pensions funds nor insurers nor any of us can force the markets to give a particular return. And I think that only within broad settings do we really have control of market risks: the realized risk over a time period can be greater than expected, regardless of the stock:bond ratio. The thing...
by asset_chaos
Tue May 24, 2016 6:10 am
Forum: Personal Finance (Not Investing)
Topic: car totaled, is insurance offer fair?
Replies: 4
Views: 733

car totaled, is insurance offer fair?

Our parked car was smashed into. Luckily no one hurt. It didn't look like tremendous damage to me, but the insurance company assessor said the car was unrepairable. Our insurance is for current value replacement. Are they likely to have offered us a fair value settlement, or is their first offer lik...
by asset_chaos
Sat May 21, 2016 9:22 pm
Forum: Investing - Theory, News & General
Topic: a new look at the size premium
Replies: 44
Views: 4303

Re: a new look at the size premium

As the factor premium increases and the factor load decreases as the definition of the factor becomes more concentrated, it could be that they still multiply to give the same predicted factor return, regardless of the definition. This is indeed what happens for the "middle" (30/30 and 20/2...
by asset_chaos
Thu May 19, 2016 7:27 pm
Forum: Investing - Theory, News & General
Topic: Stocks, Bonds, and "Real Assets" (TIPS, REITs, Commodities)
Replies: 28
Views: 2479

Re: Stocks, Bonds, and "Real Assets" (TIPS, REITs, Commodities)

Between them Vanguard and M* report that Vanguard's total world stock index fund has about 5% in real estate and another 11% in oil and gas and basic materials, where gold and other miners and producers of commodities would be. "Merely" having broad global stock investments gets one a reas...
by asset_chaos
Fri May 13, 2016 7:41 pm
Forum: Investing - Theory, News & General
Topic: stocks benefiting most from low oil prices
Replies: 15
Views: 1315

Re: stocks benefiting most from low oil prices

Based on what I have read so far, low oil prices are here to stay. A few years ago, everyone (that everyone fellow again) was saying that high oil prices were here to stay; moreover, they had nowhere to go but up. I don't recall the exact reasons given, but I'm sure they were plausible. I think the...
by asset_chaos
Sat May 07, 2016 8:30 pm
Forum: Investing - Help with Personal Investments
Topic: Investing With a Trust
Replies: 10
Views: 1142

Re: Investing With a Trust

Disclaimer: not a tax or trust law expert, but I do manage a similar trust. Are you and your father (as trustee) planning on taking money out of the trust or on letting it accumulate? If you want to (or have to) let it accumulate inside the trust be aware that trust tax brackets are very compressed ...
by asset_chaos
Mon May 02, 2016 4:10 pm
Forum: Investing - Theory, News & General
Topic: Total World ETF Taxable
Replies: 9
Views: 1138

Re: Total World ETF Taxable

Biggest downfall I see is missing out on a TLH opportunity. It's simply a truism that the simpler the portfolio, the less opportunity for tax loss harvesting or for rebalancing. Of course, simplicity has its own compensating virtues, such as psychologically easier to stay the course, more time to d...
by asset_chaos
Sun May 01, 2016 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA + Long Time Horizon
Replies: 16
Views: 1342

Re: Inherited IRA + Long Time Horizon

As noted, the problem with 100% stocks when you're forced to sell every year to distribute cash is that in down market years you have to sell more shares to meet the dollar figure for required distributions, leaving fewer shares in the account to participate in the eventual recovery. There's even a ...
by asset_chaos
Mon Apr 25, 2016 4:35 pm
Forum: Investing - Theory, News & General
Topic: Concentrated Factor Indexing
Replies: 9
Views: 988

Re: Concentrated Factor Indexing

Sounds like a way to repackage and remarket active management. Quantitative active management is still active management. And loading up on concentration risk is a good way to have at least some expectation of beating the market, but it's still pretty risky.
by asset_chaos
Thu Apr 21, 2016 10:43 pm
Forum: Investing - Theory, News & General
Topic: Which would you find more valuable? [Simulation vs. Wisdom]
Replies: 7
Views: 1003

Re: Which would you find more valuable? [Simulation vs. Wisdom]

The simulations provide, at best, data. Synthesis of lots of data about a particular area could be called knowledge. And integration of that knowledge with other areas of knowledge and experience could lead to wisdom. I would suggest the simulations could be a starting point but shouldn't be an endi...
by asset_chaos
Fri Apr 15, 2016 6:46 pm
Forum: Investing - Theory, News & General
Topic: Fidelity's "Enhanced" Index Funds, almost ten years later
Replies: 23
Views: 2909

Re: Fidelity's "Enhanced" Index Funds, almost ten years later

Looks like the Fidelity funds results were dominated by them being index funds, which is a good thing, with whatever enhancement reducing the drag of costs, which is also a good thing. (The bad thing being their costs were a bit too high.) In a similar sense the Vanguard, at least large cap, funds a...
by asset_chaos
Thu Apr 14, 2016 8:48 pm
Forum: Investing - Theory, News & General
Topic: Investing legends change their bond portfolio
Replies: 29
Views: 4837

Re: Investing legends change their bond portfolio

Everyone faces the full suite of different investing risks, not all of which you have to take and not all of which you have to consider equally important to you. Malkiel and Ellis seem to be making the implicit argument that they believe that the future risk of inflation adjusted loss for treasury d...
by asset_chaos
Sat Apr 02, 2016 5:10 pm
Forum: Personal Finance (Not Investing)
Topic: Landlord requiring copies of SSN
Replies: 73
Views: 5302

Re: Landlord requiring copies of SSN

Now I'm curious. Do some bank's statements routinely come with SSN printed on them? Mine doesn't. Or at least I don't think it does. I don't get paper statements, haven't for years; everything's online. And a social security card. I know my number and wouldn't have any problem giving it for a lease ...
by asset_chaos
Tue Mar 29, 2016 4:24 am
Forum: Investing - Theory, News & General
Topic: No Intl. DM, Just Intl. EM? [International Developed Markets, Emerging Markets]
Replies: 23
Views: 2170

Re: No Intl. DM, Just Intl. EM? [International Developed Markets, Emerging Markets]

I like my business/stock investments diversified, highly diversified, as diversified as I can get. Therefore, I'm going to stick to total world as my core stock investment. Others may reasonably differ, betting that other, less diversified investment strategies may give better returns over particula...
by asset_chaos
Tue Mar 29, 2016 4:07 am
Forum: Investing - Help with Personal Investments
Topic: Why I'm Bailing from my Bond Fund
Replies: 25
Views: 3586

Re: Why I'm Bailing from my Bond Fund

The load is irrelevant. The fund was invested in, the load was paid, that money is gone, it's done. The only question is, is this particular fund something to keep going forward or not? I don't consider 50% in a bond fund in a trust to be particularly concentrated. I have half of a trust fund I admi...

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