Search found 326 matches

by privatefarmer
Sun Jul 15, 2018 12:25 am
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 92
Views: 5997

Re: Why is leveraging property good but leveraging stocks bad?

technically, if you have a mortgage and own stocks you are using leverage to own those stocks... you're using leverage to own the home AND using leverage to own stocks - could you not sell the stocks to pay of the mortgage? a 30 yr, tax deductible, low-interest fixed rate mortgage is far better than...
by privatefarmer
Sun Jul 08, 2018 1:26 am
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1039
Views: 183576

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

does anyone here hold DFA funds (without an advisor)?? I have some funds that are no longer being managed by an advisor and would love to get a transfer bonus however I cannot find a brokerage that will accept the transfer of DFA funds w/o an advisor attached...
by privatefarmer
Wed Jul 04, 2018 12:24 am
Forum: Investing - Theory, News & General
Topic: yield curve inversion
Replies: 47
Views: 4162

yield curve inversion

wondering what is everyone's thoughts on "yield curve inversion"? Heard of the concept via Wes Moss's radio show, who I admit is not exactly a financial guru but rather an entertainer who mostly spreads garbage about the financial markets. However, he notes that typically long-term gov. bonds yield ...
by privatefarmer
Tue Jun 19, 2018 8:11 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: The Battle Of Passive Strategies
Replies: 71
Views: 7306

Re: Larry Swedroe: The Battle Of Passive Strategies

I agree with the article's conclusion that so far, results have supported his book's contention that: 1) passive beats active; and 2) tilting towards size and/or value is superior to Total Stock Market. What I'm unclear about in his article is that he also pushes the case that using DFA funds to ti...
by privatefarmer
Sat Jun 16, 2018 1:24 am
Forum: Investing - Theory, News & General
Topic: Factor-based strategy is better (winer), OK. then who are the losers?
Replies: 55
Views: 2631

Re: Factor-based strategy is better (winer), OK. then who are the losers?

well, think more broadly. if stocks outperform bonds over the long-haul, and there are investors who "win" by tilting more towards equities and away from bonds, who are the "losers"? accepting a lower return for less volatility is not "losing", it is making a choice. like buying life insurance. you'...
by privatefarmer
Fri Jun 15, 2018 12:47 am
Forum: Investing - Theory, News & General
Topic: Interesting video from Ramsey today [How Ramsey Outperforms The Stock Market]
Replies: 127
Views: 10297

Re: Interesting video from Ramsey today [How Ramsey Outperforms The Stock Market]

what really erks me is that those who would follow DRs investing advice are novices and don't know any better. He can spout off garbage about "average" returns completely ignoring CAGR and 99% of the population wouldn't know the difference. He can spout off garbage about the track records of the gro...
by privatefarmer
Sun Jun 10, 2018 1:03 pm
Forum: Investing - Theory, News & General
Topic: Don’t cheat yourself with the 4% rule
Replies: 159
Views: 18346

Re: Don’t cheat yourself with the 4% rule

The frightening part is if you read that article on Yahoo and then read the comments people make regarding the article. +100000!!! If anyone needs a good laugh or just wants to feel good about themself, read the comments section... just goes to show how much I’ve learned from bogleheads... the gene...
by privatefarmer
Sun Jun 03, 2018 8:39 am
Forum: Investing - Theory, News & General
Topic: Paul Merriman and Small Cap Value
Replies: 137
Views: 15151

Re: Paul Merriman and Small Cap Value

JustinR post What's a good book or reading about tilting to factors, especially scv (also reit and em)? I think the most readable author on the topic is Larry Swedroe. He has written many internet articles on the subject but his best book is, "Your Complete Guide to Factor-Based Investing: The Way ...
by privatefarmer
Wed May 23, 2018 2:54 am
Forum: Investing - Theory, News & General
Topic: Fact, Fiction, and the Size Effect
Replies: 84
Views: 6603

Re: Fact, Fiction, and the Size Effect

all I know is, if you compare small value vs the total market over the last 48 years, according to portfoliovisualizer, small value has killed it. I looked at '72-81, '82-91, '92-'01, '02-'11, and '12-present and small value beat total market in every single case except '12-present they are tied. Ov...
by privatefarmer
Mon May 21, 2018 1:54 am
Forum: Investing - Theory, News & General
Topic: Edelman & Financial Engines merging
Replies: 36
Views: 4094

Re: Edelman & Financial Engines merging

One thing I don't understand about this forum - bash doctors (and/or their fees) and their brethren are up in arms against you; but bash a financial guy and his rivals pounce right on. Why don't we see similar behavior from doctors? In other words, if someone complains about paying an arm and a leg...
by privatefarmer
Thu Apr 12, 2018 9:30 am
Forum: Investing - Theory, News & General
Topic: Emerging markets tilt
Replies: 37
Views: 3519

Re: Emerging markets tilt

I'm curious to hear from people who are tilting towards EM in the current enviroment: How big is your tilt? What's your rationale? What's your prognosis for the future? I know questions like these have been asked before, but people's opinions on this stuff changes depending on which way the wind is...
by privatefarmer
Thu Apr 12, 2018 9:12 am
Forum: Investing - Theory, News & General
Topic: Emerging markets tilt
Replies: 37
Views: 3519

Re: Emerging markets tilt

[quote=randomizer post_id=3875619 time=1523465743 user_id=54916] I'm curious to hear from people who are tilting towards EM in the current enviroment: [list][*]How big is your tilt? [*]What's your rationale? [*]What's your prognosis for the future? [/list] I know questions like these have been asked...
by privatefarmer
Wed Apr 11, 2018 3:07 am
Forum: Investing - Theory, News & General
Topic: Factor Investing - A convincing article
Replies: 67
Views: 6328

Re: Factor Investing - I convincing article

5 years of underperformance! I'm convinced. :oops: Or perhaps, I'll stick with what has overperformed for me for more than 20 years. We do not live forever. Using decades to try to reach a conclusion is great for the academic world, but in the life span of an investor is a very long time. But that ...
by privatefarmer
Wed Apr 11, 2018 2:54 am
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1039
Views: 183576

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

does anyone know of any brokerage firms that will accept a transfer of DFA funds? I have DFA funds, no longer have an advisor, and would like to get me some transfer bonuses... but every time I've tried to transfer out from fidelity I have not been able to transfer the DFA funds...
by privatefarmer
Sat Apr 07, 2018 2:26 am
Forum: Investing - Theory, News & General
Topic: Value premium harvestable?
Replies: 39
Views: 2564

Re: Value premium harvestable?

has there been a value premium over the last 25 years? according to portfoliovisualizer.com, large-value vs large-growth from '93 to present has resulted in nearly identical CAGR (which matches up w/ what we've seen with the two vanguard funds). however, if you go back to 1972 to present, there has ...
by privatefarmer
Wed Mar 21, 2018 2:52 pm
Forum: Investing - Theory, News & General
Topic: Rent & Invest vs Mortgage for mid-30's saver
Replies: 25
Views: 2846

Re: Rent & Invest vs Mortgage for mid-30's saver

NYT has a good calculator on this. When determining cost of ownership remember to subtract any appreciation you expect from the cost. For example, if you own a 500k house and expect it to keep pace with inflation, and appreciate by 3%/year, which is reasonable, you would SUBTRACT $15k/year from the ...
by privatefarmer
Thu Mar 01, 2018 8:57 am
Forum: Investing - Help with Personal Investments
Topic: Retiring Early
Replies: 22
Views: 6527

Re: Retiring Early

you didn't include the value of your home. I am not saying you should do a cash-out refi, per say, but you should at least consider the value of it. Worst case, you could always sell it and live in a small apartment if you needed more cash. I would think for the vast majority of people, 2Mil w/ a pa...
by privatefarmer
Sun Feb 25, 2018 2:03 am
Forum: Investing - Theory, News & General
Topic: how did you determine your risk tolerance?
Replies: 138
Views: 8410

Re: how did you determine your risk tolerance?

OP: 1) if you haven't already, grab Bogleheads Guide to Investing. It has a good chapter on Insurance. You insure to protect what you can't lose. As for investment, using asset allocation as a means to get insurance is a bad planning. 2) $500 of EF is ridiculously small. Any big item expenses (hous...
by privatefarmer
Sun Feb 25, 2018 1:44 am
Forum: Investing - Theory, News & General
Topic: how did you determine your risk tolerance?
Replies: 138
Views: 8410

Re: how did you determine your risk tolerance?

What makes you think that? for me it comes down to risk/reward. since the beginning of 2008 until now, the S&P500 has almost tripled in value. because all of my funds were fully invested in the market, i already have 3 emergency funds instead of 1. as of right now the market would have to crash 67%...
by privatefarmer
Sun Feb 25, 2018 1:38 am
Forum: Investing - Theory, News & General
Topic: how did you determine your risk tolerance?
Replies: 138
Views: 8410

Re: how did you determine your risk tolerance?

in case there was any doubt, my comment about HELOC and credit cards was a joke. there are many comments about the ability to stay the course in a recession. i'm pretty confident in myself that i can do it, but of course we won't know for sure until the next crash. nonetheless, you all cannot be se...
by privatefarmer
Sun Feb 25, 2018 1:28 am
Forum: Investing - Theory, News & General
Topic: how did you determine your risk tolerance?
Replies: 138
Views: 8410

Re: how did you determine your risk tolerance?

Wait until you also get a lay off notice, stock market is down by a large percentage, it might take you years to find full employment, or maybe never. Your emergency fund is also gone and you have to pay COBRA or the like for health insurance. I understand this point of view. However, wouldn't you ...
by privatefarmer
Sun Feb 25, 2018 1:25 am
Forum: Investing - Theory, News & General
Topic: how did you determine your risk tolerance?
Replies: 138
Views: 8410

Re: how did you determine your risk tolerance?

3) If you are unemployed and the stock market drop by 50%, how long can you last with that $500? 1) i don't believe in emergency funds because holding cash is losing money 3) obviously not very long. but there are other things we have not discussed. we have not talked about unemployment benefits. n...
by privatefarmer
Sun Feb 25, 2018 1:13 am
Forum: Investing - Theory, News & General
Topic: how did you determine your risk tolerance?
Replies: 138
Views: 8410

Re: how did you determine your risk tolerance?

Wait until you also get a lay off notice, stock market is down by a large percentage, it might take you years to find full employment, or maybe never. Your emergency fund is also gone and you have to pay COBRA or the like for health insurance. I understand this point of view. However, wouldn't you ...
by privatefarmer
Sat Feb 24, 2018 3:23 am
Forum: Investing - Theory, News & General
Topic: The Emerging Markets "lost decade" is over
Replies: 81
Views: 12961

Re: The Emerging Markets "lost decade" is over

Over the next few months we should start seeing more posts about people overweighting EM again ;) I'm still seeing a lot of "Do I need international stocks" and "USA!, USA!" type posts, so I think we're still a few years away from that being outweighed by the "How about I overweight EM" posts. When...
by privatefarmer
Thu Feb 15, 2018 8:28 am
Forum: Investing - Theory, News & General
Topic: Morningstar's SWR study
Replies: 44
Views: 3916

Re: Morningstar's SWR study

excuse my ramblings, but I've been giving this SWR/retirement problem a LOT of thought over the last few years. 1) at my age/BMI/smoking status etc etc my expected lifespan is ~75 years. I'm 34 now so obviously this number likely will increase as I get older and I have to also plan for my wife howev...
by privatefarmer
Tue Feb 13, 2018 6:51 am
Forum: Investing - Theory, News & General
Topic: SWR — Can You Include Real Estate as Part of Your Portfolio
Replies: 24
Views: 1743

Re: SWR — Can You Include Real Estate as Part of Your Portfolio

what about refinancing and taking the equity out? I don't see why you wouldn't count that. Although you'd have a mortgage payment so your monthly income needs would go up. I never understood why people want to have a paid off house when they die, unless they plan to give it to their kids. Why not le...
by privatefarmer
Sun Feb 11, 2018 9:39 am
Forum: Personal Finance (Not Investing)
Topic: roth 401k --> roth IRA tax question
Replies: 3
Views: 254

Re: roth 401k --> roth IRA tax question

Earnings and contributions retain their status when you roll a Roth 401(k) to a Roth IRA. ... Thanks! So my next question is, does the IRS keep track of how much in contributions were made to a roth 401k many years ago or is this something that I am going to have to furnish documentation for? thanks
by privatefarmer
Sun Feb 11, 2018 9:19 am
Forum: Personal Finance (Not Investing)
Topic: roth 401k --> roth IRA tax question
Replies: 3
Views: 254

roth 401k --> roth IRA tax question

If I roll over 100k from a roth 401k --> roth IRA, and 20k of that is earnings (80k is my contributions), after it has been converted to a roth IRA is it ALL considered "contributions"? If I wanted to withdrawal the 100k from the roth IRA before age 59 1/2, 5 years after the conversion, would I be a...
by privatefarmer
Sun Feb 11, 2018 12:45 am
Forum: Investing - Theory, News & General
Topic: leveraged Investing , Account Margining.. And the SEC
Replies: 9
Views: 789

Re: leveraged Investing , Account Margining.. And the SEC

buy and hold. buy and hold. none of this matters if you simply buy and hold.
by privatefarmer
Sun Feb 11, 2018 12:41 am
Forum: Investing - Theory, News & General
Topic: how did you determine your risk tolerance?
Replies: 138
Views: 8410

Re: how did you determine your risk tolerance?

1) what's the max amount you are willing to (temporarily) lose as a percentage?

2) expect stocks to fall by 50-60% in the worst drawdowns. Use that to determine how much stocks you can own.

I personally am 100% stocks.
by privatefarmer
Sun Jan 28, 2018 7:13 am
Forum: Investing - Theory, News & General
Topic: If you're really rich you're probably not an index-fundi Boglehead
Replies: 61
Views: 11562

Re: If you're really rich you're probably not an index-fundi Boglehead

The chart is mostly true regardless of how the readers here like it or or. If you are uber rich, you hold a lot of business assets and perhaps have your own company or a significant interest in one. As I’ve said before, to get rich you need stocks. To be filthy rich, you need to have your own busin...
by privatefarmer
Sun Jan 28, 2018 7:11 am
Forum: Investing - Theory, News & General
Topic: If you're really rich you're probably not an index-fundi Boglehead
Replies: 61
Views: 11562

Re: If you're really rich you're probably not an index-fundi Boglehead

I’m not “really rich”, but I’m in my low 30s and on pace to be “really rich” by my mid 40s and that’s all due to my index funds.
by privatefarmer
Sun Jan 28, 2018 1:03 am
Forum: Investing - Theory, News & General
Topic: High volatility/returns (SC,EM) for young investors ?
Replies: 11
Views: 888

Re: High volatility/returns (SC,EM) for young investors ?

What is the pro/cons of this idea/strategy? Being young is a double edged sword. You do have more time to make up any loses but if you lose a chunk of money that would be money that could have been invested for many decades. One way to look at your investments is that the first dollar you save toda...
by privatefarmer
Wed Jan 24, 2018 3:13 am
Forum: Investing - Theory, News & General
Topic: Small Value Premium - How Do You View It?
Replies: 95
Views: 7841

Re: Small Value Premium - How Do You View It?

I tilt to small value domestically, and small blend internationally due to lack of access to Int'l small value. I do so not because I want to kill the market, but because it allows me to carry a 40% treasury bond allocation and maintain my same *expected* return as though I had an asset allocation ...
by privatefarmer
Wed Jan 24, 2018 3:10 am
Forum: Investing - Theory, News & General
Topic: Small Value Premium - How Do You View It?
Replies: 95
Views: 7841

Re: Small Value Premium - How Do You View It?

My last post had both market and economic structural changes. What more are you asking for? Let me ask a counter question - why do you think these premiums will remain? What was the casual reason and why will it not be exploited now that people know about it?? No, you really haven't. It doesn't amo...
by privatefarmer
Wed Jan 24, 2018 3:08 am
Forum: Investing - Theory, News & General
Topic: Small Value Premium - How Do You View It?
Replies: 95
Views: 7841

Re: Small Value Premium - How Do You View It?

Jack FFR1846 wrote:
Tue Jan 23, 2018 9:00 am
Nobody knows nothin'

I am a firm believer in that and so buy the entire haystack.

I would no sooner tilt to small value than I would tilt to stocks that happen to begin with the letter "L".
okay but then why own stocks over bonds (or commodities or real estate etc etc)?
by privatefarmer
Wed Jan 24, 2018 2:49 am
Forum: Investing - Theory, News & General
Topic: Small Value Premium - How Do You View It?
Replies: 95
Views: 7841

Re: Small Value Premium - How Do You View It?

This seems like a trolling topic but I'll bite. About half of my US stocks are in small value funds. Mostly in DFA though I use ETFs in taxable. I see small and value as sources of risk and return. The effect of overweighting small and value overall results in a riskier portfolio with higher expect...
by privatefarmer
Wed Jan 24, 2018 2:46 am
Forum: Investing - Theory, News & General
Topic: Small Value Premium - How Do You View It?
Replies: 95
Views: 7841

Re: Small Value Premium - How Do You View It?

I am negative, sort of. I can believe that Fama-French found a historic anomaly. I can also believe that this anomaly has corrected. Why do you believe this? If true, then that would indicate that the premiums were due entirely to behavior and not risk. Otherwise, if small and/or value is riskier b...
by privatefarmer
Mon Jan 22, 2018 3:46 pm
Forum: Investing - Theory, News & General
Topic: Small Value Premium - How Do You View It?
Replies: 95
Views: 7841

Re: Small Value Premium - How Do You View It?

All in baby!! I’m 50% domestics scv and 50% international scv. That’s my entire portfolio. I’m 33yo so hope to let it ride for 30-40 years before I even start to tap it. 1) just as I believe equities will outperform FI, I believe the more volatile an asset the more it will outperform otherwise nobod...
by privatefarmer
Mon Jan 15, 2018 1:45 am
Forum: Investing - Theory, News & General
Topic: International Small-cap Value Funds ??
Replies: 55
Views: 7153

Re: International Small-cap Value Funds ??

FPL capital management will sell DFA access for about $1k-$1500, depending on how many accounts you need opened, as a one-time fee. DISVX is a great international SCV fund and DEMSX is an EM SCV fund. Combine that with DFSVX and you're set. I use just DFSVX for domestic and DEMSX for international a...
by privatefarmer
Mon Jan 01, 2018 3:54 am
Forum: Investing - Theory, News & General
Topic: Is Beta a distinct factor or a summation of other factors
Replies: 42
Views: 2274

Re: Is Beta a distinct factor or a summation of other factors

I overweight small and value because I'm trying to overweight higher risk, higher return (hopefully), higher standard deviation sub-populations of the overall market that will hopefully be relatively non-correlated to the other parts of my portfolio. I don't think that means I'm conceding the overa...
by privatefarmer
Sun Dec 24, 2017 12:52 pm
Forum: Investing - Theory, News & General
Topic: Roth Recharacterization deadlines
Replies: 10
Views: 1103

Re: Roth Recharacterization deadlines

So does anyone know definitively if I were to convert a traditional IRA --> roth before end of year, can I still recharacterize it back to a Roth next October should the market fall? Thanks! This is being debated quite extensively, here and elsewhere - bottom line seems to be that no one knows for ...
by privatefarmer
Sun Dec 24, 2017 11:08 am
Forum: Investing - Theory, News & General
Topic: Roth Recharacterization deadlines
Replies: 10
Views: 1103

Re: Roth Recharacterization deadlines

So does anyone know definitively if I were to convert a traditional IRA --> roth before end of year, can I still recharacterize it back to a Roth next October should the market fall? Thanks!
by privatefarmer
Wed Dec 20, 2017 2:47 am
Forum: Investing - Theory, News & General
Topic: On Podcasts, timing the market vs Boglehead way - Fear of Missing out
Replies: 16
Views: 1626

Re: On Podcasts, timing the market vs Boglehead way - Fear of Missing out

I was in the gym yesterday and a good pal of mine asked me if I was about to get out of the stock market. I politely mentioned to him that I am not, I briefly explained that timing the market was gambling not investing and was ready to walk away when he asked me if I invest in precious metals. At t...
by privatefarmer
Tue Dec 19, 2017 3:11 am
Forum: Investing - Theory, News & General
Topic: Paul Merriman and Small Cap Value
Replies: 137
Views: 15151

Re: Paul Merriman and Small Cap Value

I was playing around with PV, testing TSM vs. SCV. (Numbers include 2017, up through November.) Since 1995, SCV has outperformed TSM by an average of 1.53% per year. There was never a stretch where TSM outperformed SCV for more than 2 consecutive calendar years. SCV beat TSM in 15 out of the 23 yea...
by privatefarmer
Tue Dec 19, 2017 3:01 am
Forum: Investing - Theory, News & General
Topic: Paul Merriman and Small Cap Value
Replies: 137
Views: 15151

Re: Paul Merriman and Small Cap Value

What I can't figure out is why so many people here don't trust the outperformance of SCV (which is explained by a risk premium), but they're all-in with the idea that stocks will outperform bonds over the long term, because of the equity risk premium. If the the SVC premium is due to risk, then why...
by privatefarmer
Tue Dec 19, 2017 2:57 am
Forum: Investing - Theory, News & General
Topic: Paul Merriman and Small Cap Value
Replies: 137
Views: 15151

Re: Paul Merriman and Small Cap Value

IJS is probably the best way to get exposure to small value. While it’s expense ratio is higher than others, they do enough share lending to make up for it. It also has the most liquidity. STAY AWAY from the Russell indices as they underperform significantly. About 95% of my domestic equity allocat...
by privatefarmer
Mon Dec 18, 2017 1:11 am
Forum: Investing - Theory, News & General
Topic: Paul Merriman and Small Cap Value
Replies: 137
Views: 15151

Re: Paul Merriman and Small Cap Value

I like Merriman's ideas but I've avoided the complexity of his approach with my core portfolio. In addition to my basic core funds I hold VB and Vanguard's Strategy Equity (Small/Mid cap) Mutual fund. My VB holding is a supplement to Total Stock Index and to my long-term individual equities, which ...
by privatefarmer
Sat Dec 16, 2017 2:53 am
Forum: Investing - Theory, News & General
Topic: factor loading of emerging markets
Replies: 3
Views: 470

Re: factor loading of emerging markets

Do you have emerging markets factor data? I've never been able to find that myself. Closest fit might be Asia ex-Japan, as a lot of EM is there, but don't trust what that says too much because of the different country coverage. If you're regressing on US factor data, at times it's just not going to...