Search found 246 matches

by jmk
Mon Aug 07, 2017 12:14 pm
Forum: Investing - Theory, News & General
Topic: times change
Replies: 0
Views: 416

times change

Happened to see this in the forum from 2008: Rick Ferri said: Perhaps someday Vanguard will launch an international real estate index fund that charges reasonable fees. I'm sure that will be around the same time they launch a passive international small cap and emerging small cap funds/ETF's. :wink:...
by jmk
Tue Aug 01, 2017 10:41 am
Forum: Investing - Help with Personal Investments
Topic: Help with Next Steps: How to manage investing with various goals
Replies: 18
Views: 1455

Re: Help with Next Steps: How to manage investing with various goals

I did some analysis with PortfolioVisualizer, and during market downturns the 40/60 stocks/bonds did better than 50/50 (not too surprising), and yet 50/50 didn't seem to return that much higher during market booms (over 3-5 year periods). Admittedly, this wasn't an exhaustive analysis of all 3-5 ye...
by jmk
Mon Jul 31, 2017 9:40 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Next Steps: How to manage investing with various goals
Replies: 18
Views: 1455

Re: Help with Next Steps: How to manage investing with various goals

I did some analysis with PortfolioVisualizer, and during market downturns the 40/60 stocks/bonds did better than 50/50 (not too surprising), and yet 50/50 didn't seem to return that much higher during market booms (over 3-5 year periods). Admittedly, this wasn't an exhaustive analysis of all 3-5 ye...
by jmk
Mon Jul 31, 2017 9:03 am
Forum: Investing - Help with Personal Investments
Topic: Help with Next Steps: How to manage investing with various goals
Replies: 18
Views: 1455

Re: Help with Next Steps: How to manage investing with various goals

Thanks to all for the helpful advice. I've been off thinking about this a lot, and making some of the easier decisions. I've paid off the two small loans and have adjusted my payroll deductions to fully max out my and my wife's 401k. We will contribute the max to both IRAs each year as well. My cur...
by jmk
Sun Jul 30, 2017 12:14 am
Forum: Personal Finance (Not Investing)
Topic: Philosophy major and future law student
Replies: 93
Views: 4979

Re: Philosophy major and future law student

It turns out Philosophy has a very high salary compared to many other majors: higher than undergrad business even. Most philosophers do not go into academia but other professions, where they use their thinking skills taught in philosophy. Nothing stops him getting a double major in philosophy and co...
by jmk
Mon Jul 24, 2017 10:45 am
Forum: Personal Consumer Issues
Topic: Scooter for local commute - Honda PCX 150, etc...
Replies: 44
Views: 2288

Re: Scooter for local commute - Honda PCX 150, etc...

As a scooter commuter, 150cc isn't overkill. For safety you want to have the ability to accelerate out of problems when necessary. You also want to be able to ride in traffic at speed, again for safety. (Going slow on side or riding slower than traffic is dangerous.) Having the power doesn't mean yo...
by jmk
Sun Jul 23, 2017 7:42 pm
Forum: Investing - Help with Personal Investments
Topic: Alternative Investments best use of expensive 401k?
Replies: 12
Views: 557

Re: Alternative Investments best use of expensive 401k?

Sorry, I don't think your reasoning is sound. I think you should use the Total STock and the Total Bond. Why? On the Total Bond Fund with yield of 2.4, I'd lose a third right off the top! Well, do you have other accounts to hold all your bonds? There could be other solutions, but we have not seen t...
by jmk
Sun Jul 23, 2017 7:16 pm
Forum: Investing - Help with Personal Investments
Topic: Alternative Investments best use of expensive 401k?
Replies: 12
Views: 557

Re: Alternative Investments best use of expensive 401k?

ralph124cf wrote:I like the DFA Emerging Market and Small Cap Value.


Since you prefer DFA, why is DFA emerging value better than Vanguard's? (And what is the difference between: DFA Emrg Mkt Cor Eq Inst; DFA Emrg Mkt; and DFA Emrg Mkt SocCorEq Inst?) Is DFA's global real estate any better than Vanguards?
by jmk
Sun Jul 23, 2017 7:01 pm
Forum: Investing - Help with Personal Investments
Topic: Alternative Investments best use of expensive 401k?
Replies: 12
Views: 557

Re: Alternative Investments best use of expensive 401k?

I might be tempted by the DFA international small value option but otherwise no, I'd stick with what's cheaper. Likewise, but the real value of a fund like that comes from a very long holding period. Would that be realistic, or do you see yourself leaving in 5-10 years and transferring this to a lo...
by jmk
Sun Jul 23, 2017 6:56 pm
Forum: Investing - Help with Personal Investments
Topic: Alternative Investments best use of expensive 401k?
Replies: 12
Views: 557

Re: Alternative Investments best use of expensive 401k?

Your 401k is extremely expensive. I would complain unless it is a very small company. 300 employees. It would seem that at least some of your investments are not adding 0.89 to the ER. Vanguard Market Neutral appears to be adding 2.24 to the ER. AQR long-short equity is adding 1.68 to the ER. Are y...
by jmk
Sun Jul 23, 2017 6:38 pm
Forum: Investing - Help with Personal Investments
Topic: Alternative Investments best use of expensive 401k?
Replies: 12
Views: 557

Re: Alternative Investments best use of expensive 401k?

Sorry, I don't think your reasoning is sound. I think you should use the Total STock and the Total Bond. Why? On the Total Bond Fund with yield of 2.4, I'd lose a third right off the top! I could keep the money in my savings account and make the same amount! I also think you might have a good argum...
by jmk
Sun Jul 23, 2017 4:13 pm
Forum: Investing - Help with Personal Investments
Topic: Alternative Investments best use of expensive 401k?
Replies: 12
Views: 557

Alternative Investments best use of expensive 401k?

Background: I need to max my 401k for tax bracket purposes. Since I'm in the 15% bracket I tend to utilize tax-protected space for the bond portion of my AA. Unfortunately, my 401k funds have an extra 49 basis point Nationwide surcharge plus the Advisors adds on a 40 basis point charge on total ass...
by jmk
Sat Jul 22, 2017 11:28 pm
Forum: Personal Consumer Issues
Topic: Netflix, Your Current Favorite Show
Replies: 202
Views: 23656

Re: Netflix, Your Current Favorite Show

The 100 is excellent post-apocalypse series with different story arcs each season.
by jmk
Thu Jul 20, 2017 8:13 am
Forum: Investing - Theory, News & General
Topic: US and International Bond Fund Allocation
Replies: 109
Views: 8086

Re: US and International Bond Fund Allocation

Doesn't international diversify rate change risk--the main danger with an investment grade bonds?
by jmk
Mon Jul 10, 2017 11:03 am
Forum: Personal Consumer Issues
Topic: any way to eat healthier at Subway (or any other quick lunch ideas)
Replies: 102
Views: 5023

Re: any way to eat healthier at Subway (or any other quick lunch ideas)

It's easy to eat healthy at subway:
-
  • load up on vegetables
  • avoid the mayonnaise and oils
  • get healthier proteins, like Veggie Patty, Turkey or Roast Chicken etc, avoiding sauce-laden options like teriaki chicken
by jmk
Wed Jul 05, 2017 9:18 am
Forum: Investing - Theory, News & General
Topic: Yield-return correlation higher with shorter duration?
Replies: 2
Views: 223

Yield-return correlation higher with shorter duration?

With bond funds there is a loose correlation between the 30-day SEC yield and expected returns. Am I correct in my assumption that the shorter the duration, the more likely the yield will equal short-term returns? My thinking is that the yield represents more of the return compared to price fluctuat...
by jmk
Sun Jun 25, 2017 12:55 pm
Forum: Investing - Theory, News & General
Topic: How riskier are Aaa corporate bonds?
Replies: 14
Views: 1472

Re: How riskier are Aaa corporate bonds?

I'd also say in most instances, a retail investor shouldn't have any need to purchase individual corporate bonds. For the vast majority, a bond fund will do just fine. Cd's are also a fine choice. If you insist on individual securities, I think treasuries would work just fine. If you are buying ind...
by jmk
Mon Jun 19, 2017 1:12 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation for HSA
Replies: 8
Views: 1378

Re: Asset Allocation for HSA

Since you are using both your HSA and your IRA for retirement savings, treat the HSA as part of your IRA for investment purposes. Follow up question: assuming I'm maximizing my IRAs, and am in relatively good health now, would one ever not want to lump the HSA into my IRA /Roth bucket when deciding...
by jmk
Mon Jun 19, 2017 10:58 am
Forum: Personal Consumer Issues
Topic: Fermenting Vegetables
Replies: 45
Views: 3625

Re: Fermenting Vegetables

Try radishes-- brine turns beautiful pink
by jmk
Mon Jun 19, 2017 10:56 am
Forum: Personal Finance (Not Investing)
Topic: What Car Should I Buy My Daughter as a Graduation Present
Replies: 150
Views: 9508

Re: Any BHs Had Experience With the Honda Fit?

Pros: -I am 5'11" and have plenty of room. -TONS of storage space with the seats folded down. "Most in class." e.g. Ikea queens size bed. Main reason I bought it-- I call it my mini-truck. Cons: - Poorer build quality than Toyota Corolla IMO -loud tire noise, especially highway - stif...
by jmk
Sat Jun 17, 2017 7:10 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)
Replies: 139
Views: 17018

Re: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)

Kenkat wrote:I moved all my reserve cash from CapitalOne 360 Savings to Prime MM a couple of weeks ago.


CapitalOne just started what they call a "money market"but is really a high-minimum savings account with $10k minimum. It generates 1.04%. It functions just like its savings account, including FDIC.
by jmk
Sat Jun 17, 2017 5:05 pm
Forum: Investing - Theory, News & General
Topic: Your Favorite Portfolio Tilts
Replies: 86
Views: 6880

Re: Your Favorite Portfolio Tilts

Small tilt to USA since I don't need currency risk, I know the US economy is less corrupt than elsewhere and "works" for investment returns with less disruption than EU and Asia. Slight tilt to RE (TIAA) investing in coastal commercial real estate since I own only one residential house not...
by jmk
Thu Jun 15, 2017 11:32 am
Forum: Investing - Theory, News & General
Topic: How riskier are Aaa corporate bonds?
Replies: 14
Views: 1472

Re: How riskier are Aaa corporate bonds?

For an individual investor it's a moot point as CDs are better and are covered by FDIC insurance under the limits. For reference, looking at some bonds roughly of 5 years maturity... I searched for AAA-rated corporate bonds and found a Microsoft bond available with YtW of 2.104% maturing in Novembe...
by jmk
Thu Jun 15, 2017 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Shouldn't one's "number" be indexed to the current PE ratio?
Replies: 22
Views: 1937

Re: Shouldn't one's "number" be indexed to the current PE ratio?

If you want to vary your number based on financial conditions, I think prevailing real rates would be the most important determinant. When you discount back real liabilities to a present value using real return as a discount rate you get the real present value of funding a retirement. When rates ar...
by jmk
Wed Jun 14, 2017 8:50 am
Forum: Investing - Theory, News & General
Topic: How riskier are Aaa corporate bonds?
Replies: 14
Views: 1472

How riskier are Aaa corporate bonds?

Exactly how much more risky in terms of default are top rated individual corporate bonds (e.g. Aaa) held to maturity compared to Treasuries? Is default risk the only difference?
by jmk
Tue Jun 13, 2017 11:17 pm
Forum: Investing - Theory, News & General
Topic: Excel Solver for Portfolio Rebalancing across Multiple Accounts
Replies: 24
Views: 3033

Re: Excel Solver for Portfolio Rebalancing across Multiple Accounts

I rebalance using total amount like everyone else. But to avoid having to buy or sell taxable account I do sometimes use Excel "goal seek" (solver) to figure out what total it would take to zero out new equity amounts.
by jmk
Wed May 31, 2017 6:58 am
Forum: Personal Consumer Issues
Topic: Any books really change your outlook on life?
Replies: 280
Views: 45951

Re: Any books really change your outlook on life?

Critique of Pure Reason, Kant (that the soul is infinite) That time and space are human constructs not in the world. Nicomachean Ethics, Aristotle (what is right is doing the appropriate thing at the appropriate time in the appropriate manner. and that virtue is to know what the extremes are and to...
by jmk
Sat May 27, 2017 6:30 pm
Forum: Investing - Help with Personal Investments
Topic: Best Use of Expensive 401k?
Replies: 9
Views: 695

Re: Best Use of Expensive 401k?

I ended up using DFA funds in that account. The way I figured it, I was stuck with those costs anyway, and DFA funds also would normally cost me such an access fee, so I was getting closest to fair value that way. If I wasn't in the 15% bracket (with no capital gains) and didn't anticipate staying ...
by jmk
Sat May 27, 2017 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: Best Use of Expensive 401k?
Replies: 9
Views: 695

Re: Best Use of Expensive 401k?

Certainly it is not worth putting money in a mm as you are losing to inflation. The wiki does some calculations and comes up with a 401k still being worthwhile up to 1.7% in fees. One could argue that losing 2% to inflation (with 0% ER) is "cost of business" to get to the 15% bracket. Whe...
by jmk
Sat May 27, 2017 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: Best Use of Expensive 401k?
Replies: 9
Views: 695

Re: Best Use of Expensive 401k?

Does this 401(k) have a loan provision? If so, can you borrow $50,000 and put the money in investments outside the 401(k) and thus save on the 401(k) expense ratio? The plan might allow borrowing: "If your retirement plan permits loans, you can generally, borrow up to 50% of your vested accoun...
by jmk
Sat May 27, 2017 2:54 pm
Forum: Investing - Help with Personal Investments
Topic: Best Use of Expensive 401k?
Replies: 9
Views: 695

Best Use of Expensive 401k?

I need to use my 401k beyond the match to stay in the 15% tax bracket. There is a 0% return (0%ER) MM option. Unfortunately all the other available funds through Nationwide have a 1.04% surcharge over institutional ERs. For instance, Vanguard Total Stock, the cheapest of all their options has .05+1....
by jmk
Sat May 27, 2017 12:26 pm
Forum: Investing - Theory, News & General
Topic: Why are capital gains taxed lower than div/interest?
Replies: 20
Views: 1673

Why are capital gains taxed lower than div/interest?

Money made from equity is taxed at lower rate than bonds and bank interest. Has this always been so? And, why is it so? Is there a philosophical, economic, and/or political basis?
by jmk
Thu May 11, 2017 10:42 am
Forum: Investing - Theory, News & General
Topic: Single most important investing advice?
Replies: 97
Views: 12494

Re: Single most important investing advice?

If you're poor, do what it takes to get a government job with a pension. The security (floor) of social security + pension allows you to invest savings like other boggleheads.
by jmk
Tue May 09, 2017 11:51 am
Forum: Investing - Theory, News & General
Topic: Holding bond funds to average duration
Replies: 22
Views: 3045

Re: Holding bond funds to average duration

If you buy a 5-year bond and hold it to maturity, you will get back the full principal value no matter what happens to interest rates along the way. In this situation, your duration decreases over time. To get the same effect with bond funds, you have to shorten your duration over time, switching f...
by jmk
Mon May 01, 2017 10:08 pm
Forum: Investing - Help with Personal Investments
Topic: Capital One 360 CD - won't allow beneficiaries?
Replies: 9
Views: 1273

Re: Capital One 360 CD - won't allow beneficiaries?

I believe Synchrony five year CD has a 362 day early withdrawal penalty compared to the 180 day penalty of Capital 360
by jmk
Sun Apr 23, 2017 5:23 pm
Forum: Investing - Help with Personal Investments
Topic: How to invest now for child's downpayment 20y years hence?
Replies: 5
Views: 861

How to invest now for child's downpayment 20y years hence?

I need help figuring out best way to invest $20k now for a one-time gift 22 or so years from now when daughter is 30. We plan on using mutual funds, with something like Small Value + Emerging Markets (in order to have highest expected return, since we are not wedded to any particular amount if marke...
by jmk
Sun Apr 23, 2017 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: Advice needed: Ibonds for College vs 529?
Replies: 6
Views: 899

Re: Advice needed: Ibonds for College vs 529?

Depending on wife's income, you may have some chance of financial aid. Is that something you are looking for? Is any financial aid to a public university even plausible with $1.2million+ of assets (even if income is low)? 5.64%=$67,800/yr EFC, right? Vanguard estimates this state school tuition wil...
by jmk
Mon Apr 17, 2017 11:59 am
Forum: Investing - Help with Personal Investments
Topic: Advice needed: Ibonds for College vs 529?
Replies: 6
Views: 899

Advice needed: Ibonds for College vs 529?

I need help figuring out the best way to pay my only child's college in ten years. I have a bunch of high-interest ibonds reaching maturity within several years of her college, and since I will owe taxes on considerable interest, I am figuring using them is a "no brainer" since they'd be &...
by jmk
Fri Apr 14, 2017 7:14 am
Forum: Investing - Theory, News & General
Topic: Rebalancing to control risk doesn't make sense to me
Replies: 175
Views: 12807

Re: Rebalancing to control risk doesn't make sense to me

So will you then agree that saying that "rebalancing should be done to control risk" is wrong? Instead, we should say "rebalancing should be done to control behavior". No. Bonds do control risk (not just emotion) since adding bonds lowers the dispersion of returns. You're ensuri...
by jmk
Sat Apr 08, 2017 1:00 pm
Forum: Investing - Help with Personal Investments
Topic: stocks of companies in junk bond index fund?
Replies: 4
Views: 491

stocks of companies in junk bond index fund?

Just thought I'd ask. High-yield bond fund contains companies that are struggling and rated poorly by agencies. It has been argued one should take risk on the equity side. Is there a value fund that contains the equities for the companies in the high-yield bond index?
by jmk
Sat Apr 08, 2017 12:46 pm
Forum: Personal Consumer Issues
Topic: Help on how to spend more on myself (First World Whine)
Replies: 93
Views: 6488

Re: Help on how to spend more on myself (First World Whine)

Think about things that give you fun, things that are difficult you could master over time (hobbies), and give you deeper satisfaction, and things that give you deeper meaning.
Think about giving a lot away to help the world, be it deworming, eye glasses, or politics.
by jmk
Thu Apr 06, 2017 7:08 am
Forum: Investing - Theory, News & General
Topic: EE bonds vs F or G Fund vs Total Bond
Replies: 57
Views: 3620

Re: EE bonds vs F or G Fund vs Total Bond

The last two years I've essentially done what you're considering, for the same reasons. Each year I look for the best vehicle for the safe long term portion of my portfolio, and the 3.52% interest per year has been appealing enough to get some. They play the role of hedging against continued low to ...
by jmk
Sat Mar 25, 2017 10:45 pm
Forum: Personal Consumer Issues
Topic: Anyone taken a mid-career sabbatical?
Replies: 38
Views: 5539

Re: Anyone taken a mid-career sabbatical?

I took one year spent fixing house, cooking meals, raising son doing errands. Would recommend it. It also recentered me for returning to work: a break from rat race gave me an inner guide to what kind of career advancement I wanted. Spending was much less that year without me driving to work and abl...
by jmk
Sat Mar 25, 2017 12:36 pm
Forum: Investing - Theory, News & General
Topic: an in depth look at gold
Replies: 91
Views: 7185

Re: an in depth look at gold

Larry, one of the things I've never understood about your position on Gold... You always say an asset has to be looked at in the context of the rest of the portfolio. You do that with Commodities -- but doesn't Gold's worth work in the same way? For instance, with Portfolio visualizer monte carlo, r...
by jmk
Thu Mar 23, 2017 9:36 am
Forum: Investing - Theory, News & General
Topic: Accounting for active bond ETFs higher returns
Replies: 2
Views: 376

Accounting for active bond ETFs higher returns

Interesting article in M* comparing returns of active v passive bond funds: http://beta.morningstar.com/articles/798603/active-bond-funds-holding-their-own.html After demonstrating the superiority of active EFTs, Marciej Kawara argues the difference can be accounted for due to (my numbering): (1) Fi...
by jmk
Mon Mar 13, 2017 9:50 am
Forum: Investing - Theory, News & General
Topic: Great CD Promo! Andrews FCU 84 mo 3.01%
Replies: 247
Views: 33982

84 mo dropped to 2.2% APY

FYI on both normal CDs and IRA CDs.
by jmk
Fri Mar 03, 2017 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: What are the big things to get right?
Replies: 91
Views: 13459

Re: What are the big things to get right?

baw703916 wrote:It would be wonderful if there were the marriage equivalent of an index fund so you could avoid idiosyncratic risk and compare on the basis of lowest expenses. ;)


Some of us do just that.
by jmk
Thu Mar 02, 2017 11:16 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds bad in ROTH? Infographic:
Replies: 59
Views: 4844

Re: Bonds bad in ROTH? Infographic:

My 401k is very high fee (<100 person company) but all fees are incorporated into the ER so there's no hidden ones. The ERs come out to a 1% AUM fee plus the fund ER. In that light, it's borderline reckless to put low yielding bonds in that high of an expense ratio. At least with equities (in my ca...
by jmk
Thu Mar 02, 2017 10:14 pm
Forum: Investing - Theory, News & General
Topic: I am calling a market bubble right now.
Replies: 27
Views: 3122

Re: I am calling a market bubble right now.

When people are out there shouting about the impending doom from bubbles isn't when bubbles happen. Bubbles happen when there is excessive optimism and talk of new paradigms and explanations of why old valuation measurements don't matter anymore. http://www.etf.com/sections/index-investor-corner/sw...