Search found 38 matches

by boomdeyada
Mon Feb 15, 2016 4:25 am
Forum: Investing - Help with Personal Investments
Topic: What does Vanguard's ownership structure mean for Aussies?
Replies: 2
Views: 656

Re: What does Vanguard's ownership structure mean for Aussies?

Rather than being publicly traded or owned by a small group of individuals, The Vanguard Group is owned by Vanguard's U.S.-domiciled funds and ETFs. Those funds, in turn, are owned by their investors. This means US fund owners own my Australian funds? What it means is that Vanguard Australia is ind...
by boomdeyada
Sun Feb 14, 2016 7:04 am
Forum: Investing - Help with Personal Investments
Topic: What does Vanguard's ownership structure mean for Aussies?
Replies: 2
Views: 656

What does Vanguard's ownership structure mean for Aussies?

I am trying to decipher Vanguard Australia's ownership structure and I'm struggling to understand it. m "What sets Vanguard apart – and lets Vanguard put investors first around the world – is the ownership structure of The Vanguard Group, Inc., in the United States." OK, right, how does th...
by boomdeyada
Sun Oct 04, 2015 1:30 am
Forum: Investing - Help with Personal Investments
Topic: Any thing else to invest in besides the stock market/bonds?
Replies: 9
Views: 1251

Re: Any thing else to invest in besides the stock market/bonds?

REIT and gold. I think having a small allocation of gold (5-10%) is a net benefit -- inflation hedge, strong negative correlation with equity during crisis, and tail risk hedge. REIT is undertilted with a total stock market index as a significant amount of real estate investment is not through publi...
by boomdeyada
Thu Oct 01, 2015 10:27 pm
Forum: Investing - Theory, News & General
Topic: Gold synthesis and its effects on long term store of value
Replies: 77
Views: 6416

Re: Gold synthesis and its effects on long term store of value

Producing gold by synthesis requires tremendous energy and there are lots of radioactivity problems to be worked out. Carbon 12 has an atomic mass of 12.000 Gold 197 has an atomic mass of 196.666 Turning carbon into gold (a la King Midas and his food*) produces energy. A lot of energy, about 42GWhr...
by boomdeyada
Thu Oct 01, 2015 10:10 am
Forum: Investing - Theory, News & General
Topic: Gold synthesis and its effects on long term store of value
Replies: 77
Views: 6416

Re: Gold synthesis and its effects on long term store of value

In any case, if a plausible method of gaining access to much cheaper gold were on the horizon, I think the pricing effect could trickle back somewhat quickly to current gold pricing. If the new gold were not radioactive or something like that, I doubt that there would be segregation between new and...
by boomdeyada
Thu Oct 01, 2015 7:50 am
Forum: Investing - Theory, News & General
Topic: Gold synthesis and its effects on long term store of value
Replies: 77
Views: 6416

Re: Gold synthesis and its effects on long term store of value

Of course in the short term, gold synthesis is wholly unpractical. But what about in 20 years? 40 years? That's the focus of this post: if synthesis will allow gold to still remain as a long term store of value. Economics and cultural question. What is the value of radioactive gold? You may recall t...
by boomdeyada
Thu Oct 01, 2015 4:05 am
Forum: Investing - Theory, News & General
Topic: Gold synthesis and its effects on long term store of value
Replies: 77
Views: 6416

Gold synthesis and its effects on long term store of value

I'm concerned about the viability of gold as a long term store of wealth due to gold synthesis. In 1980, minute amounts of stable gold (197Au) was successfully produced in a particle accelerator. [1] The process was seriously cost prohibitive, but it can be done. Scientific breakthroughs in particle...
by boomdeyada
Tue Sep 29, 2015 10:15 pm
Forum: Investing - Help with Personal Investments
Topic: Should I pay -0.5%/yr for liquidity (bonds)?
Replies: 5
Views: 733

Re: Should I pay -0.5%/yr for liquidity (bonds)?

So far I think I've concluded that as I already have a decent emergency fund, I have no need for the additional liquidity of bonds and hence losing -0.5% / yr isn't my cup of tea.
by boomdeyada
Tue Sep 29, 2015 10:09 pm
Forum: Investing - Help with Personal Investments
Topic: convince me on bonds.
Replies: 44
Views: 4554

Re: convince me on bonds.

Don't forget about the taxation of bonds. I know most Bogleheads here are in the US, but for the Aussies if you hold bonds in a taxable account (if you don't, then the benefits of liquidity are lost) then you will be paying up to 47% tax. Expect to lose money in real terms after inflation. Capital g...
by boomdeyada
Mon Sep 28, 2015 10:53 am
Forum: Investing - Theory, News & General
Topic: A better Permanent Portfolio?
Replies: 31
Views: 3580

Re: A better Permanent Portfolio?

The cash portion of the PP is a drag on returns, but that's kindof the point. The PP is all about capital preservation with reduced volatility and moderate growth. So that reduction in the overall gains/losses is a feature, not a bug. While cash plays an important role in providing liquidity, you s...
by boomdeyada
Mon Sep 28, 2015 10:44 am
Forum: Investing - Theory, News & General
Topic: QSPIX - thoughts on interesting fund
Replies: 1186
Views: 177241

Re: QSPIX - thoughts on interesting fund

Unfortunately this fund isn't available and probably will never be available in Australia. The only similar one is "BLACKROCK MULTI OPPORTUNITY ABSOLUTE RETURN FUND", which to its benefit has an established history and an impressively low max drawdown of only 7% during the GFC. Unfortunate...
by boomdeyada
Mon Sep 28, 2015 1:31 am
Forum: Investing - Help with Personal Investments
Topic: Should I pay -0.5%/yr for liquidity (bonds)?
Replies: 5
Views: 733

Re: Should I pay -0.5%/yr for liquidity (bonds)?

123 wrote:The bond return, as you're calculating it, may make bonds a better (higher net yield) option then plain cash or money market funds.

Yes, absolutely, but I'm still unsure if I should pay -0.5% a year for liquidity (of any kind).
by boomdeyada
Mon Sep 28, 2015 12:21 am
Forum: Investing - Help with Personal Investments
Topic: Should I pay -0.5%/yr for liquidity (bonds)?
Replies: 5
Views: 733

Should I pay -0.5%/yr for liquidity (bonds)?

I'm in Australia. I'm expected to continue paying taxes along the top marginal rates, roughly 47%. Australia does not have tax exempt bonds. The cheapest Vanguard bond funds have management fees of 0.20% / year. Combined with historical bond returns and historical inflation rates, the expected retur...
by boomdeyada
Mon Sep 28, 2015 12:14 am
Forum: Investing - Theory, News & General
Topic: Vanguard sued for [failing to charge market rates to and then paying taxes on services to its mutual funds]
Replies: 781
Views: 139653

Re: Vanguard sued for charging too little

won the lottery wrote: It is providing services at below market prices. This is not true and just stating this repeatedly does not make it true. I just checked mutualfunddirectory.org, where you can look up the largest US mutual fund companies ranked by AUM. The top 4 are: Blackrock, Vanguard, Stat...
by boomdeyada
Sun Sep 27, 2015 6:12 am
Forum: Investing - Theory, News & General
Topic: Knowing Bonds and Bond Myths: Allan Roth
Replies: 11
Views: 1729

Re: Knowing Bonds and Bond Myths: Allan Roth

These points are very valid but there are also more to consider for bonds. In taxable accounts, you'll pay a higher tax rate for bonds than capital gains or qualified dividends. When you consider inflation, taxes, and the expense ratios, bonds can consistently have a negative "real real" r...
by boomdeyada
Sun Sep 27, 2015 6:00 am
Forum: Investing - Theory, News & General
Topic: Long term intl bond returns... Beat inflation in a taxable account?
Replies: 3
Views: 734

Re: Long term intl bond returns... Beat inflation in a taxable account?

Do international bonds (govt and corporate) have a history of beating inflation, when you put it in a taxable account? Assume it's taxed at 40%, the bonds would have to perform 5% to 6% to beat inflation.. which doesn't seem to be happening? Since 1900 broadly both Australia and UK FX has seen clos...
by boomdeyada
Sat Sep 26, 2015 2:55 pm
Forum: Investing - Theory, News & General
Topic: REIT/property as a % of total world stock index?
Replies: 4
Views: 532

REIT/property as a % of total world stock index?

Does anyone know what percentage of the total world stock index is REIT or property trusts? I suppose this figure might be hard to calculate -- if so, what about a rough rule of thumb? <1%? 2-3%? 4-5%?
by boomdeyada
Sat Sep 26, 2015 1:14 am
Forum: Investing - Theory, News & General
Topic: Long term intl bond returns... Beat inflation in a taxable account?
Replies: 3
Views: 734

Long term intl bond returns... Beat inflation in a taxable account?

Do international bonds (govt and corporate) have a history of beating inflation, when you put it in a taxable account? Assume it's taxed at 40%, the bonds would have to perform 5% to 6% to beat inflation.. which doesn't seem to be happening?
by boomdeyada
Sat Sep 19, 2015 8:25 am
Forum: Investing - Help with Personal Investments
Topic: Aus allocation: 63/23/7/7 - thoughts?
Replies: 15
Views: 1246

Re: Aus allocation: 63/23/7/7 - thoughts?

Do you have minimum $100k to invest? Vanguard will, at their discretion, drop the $500k minimum balance (per fund) for wholesale funds to $100k minimum across your portfolio. I would call them first and make sure you address this issue, so they can put a note against your name in their system befor...
by boomdeyada
Thu Sep 17, 2015 3:46 am
Forum: Investing - Help with Personal Investments
Topic: Aus allocation: 63/23/7/7 - thoughts?
Replies: 15
Views: 1246

Re: Aus allocation: 63/23/7/7 - thoughts?

How much of a difference does a 15% withholding of the dividend for veu and vts play a part compared to the franking? Simplicistically thinking do we get a guaranteed 1.5-2% return extra? Obviously Australia has huge amounts of risk in financials, real estate, resources. To be honest I'm not too bu...
by boomdeyada
Thu Sep 17, 2015 2:27 am
Forum: Investing - Help with Personal Investments
Topic: Aus allocation: 63/23/7/7 - thoughts?
Replies: 15
Views: 1246

Re: Aus allocation: 63/23/7/7 - thoughts?

sydbogle wrote:Have a look at Vanguard's ETFs, which have lower expense ratios than their managed funds.

sydbogle

Thanks for your comments. Just regarding ETF vs funds; the expense ratios are the same for most wholesale funds and ETFs. The buy/sell spread is lower when compared with ETF spread + brokerage.
by boomdeyada
Thu Sep 17, 2015 12:07 am
Forum: Investing - Help with Personal Investments
Topic: Aus allocation: 63/23/7/7 - thoughts?
Replies: 15
Views: 1246

Aus allocation: 63/23/7/7 - thoughts?

After some of my earlier threads here, I think I've settled on an allocation but I'd just like to hear people's thoughts on it. I'll be using Vanguard AU wholesale funds (Intl developed ex AU, Aus shares, Emerging). Allocation: 63% International Developed ex AU (large,mid cap) 23% Australian ASX 300...
by boomdeyada
Sun Sep 13, 2015 11:41 pm
Forum: Investing - Help with Personal Investments
Topic: Australian vanguard what should I invest in? , need advice
Replies: 8
Views: 1271

Re: Australian vanguard what should I invest in? , need advice

skyhigh872 wrote:You dont recommend investing in the us ?

Sorry if I was unclear, I mean I do not recommend following any lazy fund portfolios posted here for US citizens. You should certainly invest in the US, just as US citizens should certainly invest interntaionally.
by boomdeyada
Sun Sep 13, 2015 12:44 am
Forum: Investing - Help with Personal Investments
Topic: Aussie investor here - how is my allocation?
Replies: 12
Views: 1170

Re: Aussie investor here - how is my allocation?

In Australia… -Since 1970 cash has returned 8.9% and Australian bonds 8.7% per annum. -Since 1985 cash has returned 8.2%, Australian bonds 9.9% and International bonds 11%. -Since 2000 cash has returned 5.5%, Australian bonds 6.8% and International bonds 8.1% Since 1980, we have had 10 calendar yea...
by boomdeyada
Sun Sep 13, 2015 12:41 am
Forum: Investing - Help with Personal Investments
Topic: Aussie Bogleheads! What is your ETF Asset Allocation?
Replies: 15
Views: 2720

Re: Aussie Bogleheads! What is your ETF Asset Allocation?

I recommend putting more bonds and interest/foreign income assets in your SMSF, and mainly-CGT equities outside of it. Why would you recommend that? An SMSF in pension phase attracts no CGT on sale of assets, once your initial asset allocation is set it's unlikely you'll need to sell to rebalance. ...
by boomdeyada
Sat Sep 12, 2015 4:02 am
Forum: Investing - Help with Personal Investments
Topic: Australian vanguard what should I invest in? , need advice
Replies: 8
Views: 1271

Re: Australian vanguard what should I invest in? , need advice

Hey I just finshed reading the boogleheads guide to investing but I just found out that since I live in Australia that I cant invest in the US vanguard so ill have to invest in Australias vanguard Is there anyone living in Australia that lnvests in vanguard Im 20 years old and would like to start r...
by boomdeyada
Sat Sep 12, 2015 3:49 am
Forum: Investing - Help with Personal Investments
Topic: Aussie Bogleheads! What is your ETF Asset Allocation?
Replies: 15
Views: 2720

Re: Aussie Bogleheads! What is your ETF Asset Allocation?

Very simple allocation for SMSF, rebalance quarterly with new funds 25% VAS 25% VTS 25% VAF 25% VEU I recommend putting more bonds and interest/foreign income assets in your SMSF, and mainly-CGT equities outside of it. If the size of your SMSF to non-SMSF-portfolio is 1:1, then do: SMSF: 50% VEU 50...
by boomdeyada
Sat Sep 12, 2015 3:47 am
Forum: Investing - Help with Personal Investments
Topic: Aussie Bogleheads! What is your ETF Asset Allocation?
Replies: 15
Views: 2720

Re: Aussie Bogleheads! What is your ETF Asset Allocation?

And to answer the topic, here are my planned ETF allocations... Haven't decided between the two yet, but I'm leaning towards the first one.

Image
by boomdeyada
Sat Sep 12, 2015 3:38 am
Forum: Investing - Help with Personal Investments
Topic: Aussie Bogleheads! What is your ETF Asset Allocation?
Replies: 15
Views: 2720

Re: Aussie Bogleheads! What is your ETF Asset Allocation?

THIS IS NOT TAXATION ADVICE. DO NOT MAKE TAX DECISIONS SOLELY BASED ON THIS POST. PLEASE CONSIDER SEEKING SERVICES OF A QUALIFIED TAX PROFESSIONAL. If I wasn't eligible for wholesale, I would simplify my international holdings to VGS. If you hold something like 60/40 split in VTS/VEU, the performan...
by boomdeyada
Sat Sep 12, 2015 3:20 am
Forum: Investing - Help with Personal Investments
Topic: Aussie investor here - how is my allocation?
Replies: 12
Views: 1170

Re: Aussie investor here - how is my allocation?

Thank you for your comments Valuethinker! Regarding the bonds: My main aversion is that after calculating tax implications, the significantly lower returns makes bonds look unattractive. Bonds return in distributions that are entirely interest (income), while for equity (when considering the CGT-cla...
by boomdeyada
Fri Sep 11, 2015 9:56 pm
Forum: Investing - Help with Personal Investments
Topic: US/world 50/50, or rebalance according to market cap?
Replies: 24
Views: 3237

Re: US/world 50/50, or rebalance according to market cap?

Just another guy on the Internet here, so please take what I say with a grain of salt. We here in the US typically allocate from 20-40% of our equities to International. Yes, some do go higher, and some go lower. I have 70% of my assets in my home country. You are going with 20%? The Vanguard paper...
by boomdeyada
Fri Sep 11, 2015 11:17 am
Forum: Investing - Help with Personal Investments
Topic: US/world 50/50, or rebalance according to market cap?
Replies: 24
Views: 3237

Re: US/world 50/50, or rebalance according to market cap?

Is Total World (VTWSX) or some equivalent available? This balances all by itself based on market cap, and it does have the small cap exposure and emerging market exposure ...the FTSE Global All Cap Index, a free-float-adjusted, market-capitalization-weighted index designed to measure the market per...
by boomdeyada
Fri Sep 11, 2015 12:05 am
Forum: Investing - Help with Personal Investments
Topic: US/world 50/50, or rebalance according to market cap?
Replies: 24
Views: 3237

US/world 50/50, or rebalance according to market cap?

I'm an Aussie investor so I have no home bias towards the US. For the international equities allocation, I'm trying to decide between:

50% US, 50% world total ex US (fixed split)

or

US / world total, rebalanced based on market cap

My time horizon is 25 years.
by boomdeyada
Thu Sep 10, 2015 11:02 pm
Forum: Investing - Help with Personal Investments
Topic: Three Fund Portfolio for Australians
Replies: 7
Views: 1213

Re: Three Fund Portfolio for Australians

I am from New Zealand an can access these from the Australian Share Market. We have just introduced some ETFs to our market but fees are around 0.5% quite high. Please don't buy anything with these exorbitant fees, and the illiquid ASX spread on top of that Get a brokerage account with access to th...
by boomdeyada
Thu Sep 10, 2015 10:57 pm
Forum: Investing - Help with Personal Investments
Topic: Three Fund Portfolio for Australians
Replies: 7
Views: 1213

Re: Three Fund Portfolio for Australians

I am pretty sure that when I started off, the advice was to have the majority of your holdings in your own countries stock (something like 60:40 local:international). Or am I incorrect? Also what about the advantages of franked dividends? Are you not missing out on this if you are tilted internatio...
by boomdeyada
Thu Sep 10, 2015 6:19 pm
Forum: Investing - Help with Personal Investments
Topic: Aussie investor here - how is my allocation?
Replies: 12
Views: 1170

Re: Aussie investor here - how is my allocation?

Hi boomdeyada Have you considered taxation differences in deciding your domestic allocation? Having all company tax refunded to you (franking credits) on Aussie stocks vs none on International is a valid reason to overweight domestic. I personally use 50/50 domestic/ international - its easier to r...
by boomdeyada
Thu Sep 10, 2015 7:45 am
Forum: Investing - Help with Personal Investments
Topic: Aussie investor here - how is my allocation?
Replies: 12
Views: 1170

Re: Aussie investor here - how is my allocation?

Thanks for your reply asset_chaos! I overweighted the US because of its historical higher returns than the MSCI world index, and also because I think the biggest growth in the coming years will be technology companies. When I discussed this to someone else, they mentioned that such trends must be bu...
by boomdeyada
Tue Sep 08, 2015 6:33 pm
Forum: Investing - Help with Personal Investments
Topic: Aussie investor here - how is my allocation?
Replies: 12
Views: 1170

Aussie investor here - how is my allocation?

HI everyone, I know this is a US centric forum, but I found the theory discussed here very interesting. I'm an Australian who is trying to devise my long-term allocation (something like 30-40 years). After reading some vanguard research papers, I'm planning an allocation of: 10% Aus ASX 300 -- some ...