Search found 628 matches

by small_index
Sat Jan 06, 2018 10:11 am
Forum: Investing - Theory, News & General
Topic: Does Rebalancing Really Matter, Especially in Taxable?
Replies: 14
Views: 1678

Re: Does Rebalancing Really Matter, Especially in Taxable?

You measured a time period including the dot-com crash and 2008 crisis, which artificially hurts the performance of stocks and keeps them closer to bonds. You could use the same time period and argue that asset allocation doesn't matter: 100% stocks, 2000-2017: $2,739,757 100% bonds, 2000-2017: $2,3...
by small_index
Sat Jan 06, 2018 10:01 am
Forum: Investing - Theory, News & General
Topic: Donating appreciated securities to charity
Replies: 8
Views: 548

Re: Donating appreciated securities to charity

Donations to charity are an itemized deduction, so you will lose the taxable benefit of the donation if you don't itemize. Some charities have trouble accepting appreciated stock directly. You might look into a donor advised fund (DAF), which are offered by Fidelity and Schwab ($5,000 minimum donati...
by small_index
Sun Mar 26, 2017 7:25 am
Forum: Investing - Theory, News & General
Topic: Vanguard Target Date Funds
Replies: 27
Views: 6367

Re: Vanguard Target Date Funds

On other websites a lot of people ask about their fund choices - but rarely about re-balancing. It makes me wonder if people who do their own allocations ever adjust their bond percentage. Besides the other advantages of a target date fund, maybe one of them is that most people won't learn to re-bal...
by small_index
Thu Mar 09, 2017 8:36 am
Forum: Investing - Theory, News & General
Topic: Tax-advantaged accounts: Any benefit for U.S. expat in Japan?
Replies: 10
Views: 1649

Re: Tax-advantaged accounts: Any benefit for U.S. expat in Japan?

Your 401(k) accounts would be situated somewhere within the U.S. While the U.S. taxes it's citizens working abroad, most other countries don't tax outside their jurisdiction. What leads you to believe dividends in your 401(k) would be taxed in Japan?
by small_index
Fri Feb 17, 2017 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard Web Site Down?
Replies: 121
Views: 9085

Re: Vanguard Web Site Down?

Also seeing that problem, and starting to think it will be 4 days before I can check if it's fixed.
Besides this weekend, Monday is an NYSE holiday.
by small_index
Tue Jan 03, 2017 10:30 pm
Forum: Investing - Theory, News & General
Topic: Why not overweight international small caps? [VSS/VFSVX fund]
Replies: 25
Views: 4133

Re: Why not overweight international small caps? [VSS/VFSVX fund]

With total international, if emerging markets drop there's no rebalancing. If emerging markets drop from 20% to 15%, I want to buy back up to 20% (of international). The emerging markets can get lost in the noise of total international. There's a small expense ratio benefit as well since Developed M...
by small_index
Mon Nov 07, 2016 2:04 am
Forum: Investing - Theory, News & General
Topic: Vanguard Total Bond - Not reccomended by Swedroe??
Replies: 50
Views: 13562

Re: Vanguard Total Bond - Not reccomended by Swedroe??

neomutiny06 wrote:[BND] currently holds 17,481 bonds vs 1,951 for BIV. That is a huge difference.
How is holding a thousand U.S. government bonds different from holding five thousand?
To correct you, there isn't any difference in the largest holdings of those two funds: U.S. government bonds.
by small_index
Thu Nov 03, 2016 10:05 pm
Forum: Investing - Theory, News & General
Topic: Smart-Beta funds?
Replies: 19
Views: 3464

Re: Smart-Beta funds?

Taylor Larimore wrote: Lesson learned: It is difficult, and dangerous, to try to beat the market.
Actually, WisdomTree Coal Fund (TONS) beat the market by over 46% year to date.
In Google Finance compare symbols "VTI" and "TONS" to see for yourself.
by small_index
Thu Nov 03, 2016 9:46 pm
Forum: Investing - Theory, News & General
Topic: Why can't stocks be deterministically/objectively/mechanically priced?
Replies: 75
Views: 6294

Re: Why can't stocks be deterministically/objectively/mechanically priced?

A couple posters talked about buying up all of a company, which neatly captures both the flaw in the mechanical approach and the inability to respect the power of the market. Whoever start buying significant amounts of a company, market watchers will spot the activity and start rumors. HFT firms wil...
by small_index
Mon Oct 24, 2016 5:01 am
Forum: Investing - Theory, News & General
Topic: If the interest rates rise, won't the bond prices go down?
Replies: 22
Views: 3595

Re: If the interest rates rise, won't the bond prices go down?

In practical terms, the yield curve will change and the trick is predicting how much it changes along the curve. If 3 year bonds rise 0.25%, that does not mean 20 year bonds rise 0.25% as well. If the yield curve rises, bond funds take a hit proportional to their duration. In effect, a bond fund wit...
by small_index
Mon Oct 24, 2016 4:45 am
Forum: Investing - Theory, News & General
Topic: Payroll deduction to spouse's IRA?
Replies: 2
Views: 419

Re: Payroll deduction to spouse's IRA?

You can usually setup multiple accounts with different amounts for automatic deposit of your paycheck. The last account gets the balance - or you can ask about that. Note when you get bonuses or irregular salary payments, those might not line up as neatly as you've arranged. You can gift part part/a...
by small_index
Tue Sep 20, 2016 2:31 am
Forum: Investing - Theory, News & General
Topic: The Partial Liability Matching Portfolio
Replies: 3
Views: 1169

Re: The Partial Liability Matching Portfolio

Fixed income ... Perfect liability matching bonds are difficult to purchase, but a single TIPS issue is a reasonable substitute. For long durations there is some seemingly unavoidable reinvestment risk: the interest rate of re-invested coupons. A TIPS ladder is possible, but unnecessary. Assuming y...
by small_index
Mon Sep 12, 2016 1:51 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Brokerage cost basis problems
Replies: 14
Views: 2168

Re: Vanguard Brokerage cost basis problems

I'd suggest filing your tax return and attach the documentation that proves you were correct and Vanguard has it wrong. Not sure if you can attach this electronically, but you want this documentation in your IRS file. Even if the IRS flags your return, an auditor will take a look and review the docu...
by small_index
Fri Sep 02, 2016 10:18 pm
Forum: Investing - Theory, News & General
Topic: Wish there was a non-Tech S&P 500
Replies: 26
Views: 3647

Re: Wish there was a non-Tech S&P 500

The existence of ProShares S&P 500® ex-Technology ETF (SPXT) surprises me, although less so when I see that it only has $2.2 million in the fund. It's rough paying 0.27% for an S&P 500 fund without a particular sector, but at least it exists. Sector exclusion also makes sense, although at a cost of ...
by small_index
Wed Aug 31, 2016 10:52 pm
Forum: Investing - Theory, News & General
Topic: Wish there was a non-Tech S&P 500
Replies: 26
Views: 3647

Wish there was a non-Tech S&P 500

I wish workers had access to index funds that divest from their industry, for diversification. Employees already tie up their entire salary - and probably next job prospects - in one industry. Tech is just an example. If someone works at Cisco or Apple or Google, it would be great if their investmen...
by small_index
Mon Jul 18, 2016 6:51 pm
Forum: Investing - Theory, News & General
Topic: Anti-Boglehead Claims There is a Better Way to Invest
Replies: 82
Views: 11974

Re: Anti-Boglehead Claims There is a Better Way to Invest

Johnnie wrote:Hmm... If this 18-month old article is considered "shrill" here, perhaps the mods should open this place up to more political debate so Bogleheads can see real "shrill" in action!
Here, here! Since encountering that rule myself I've reduced my bogleheads.org visits to every month or so.
by small_index
Thu Jun 02, 2016 10:54 pm
Forum: Investing - Theory, News & General
Topic: I like my CA long term tax exempt fund! (VCLAX)
Replies: 16
Views: 3626

Re: I like my CA long term tax exempt fund! (VCLAX)

malabargold wrote:Bond fund that holds 8% junk, state with massive
/insurmountable obligations, and a rising interest rate future.
That's false: the fund's 4.9% BBB bonds are investment grade, not "junk".
https://www.bogleheads.org/wiki/Bond_ba ... it_ratings
by small_index
Tue May 31, 2016 1:38 am
Forum: Investing - Theory, News & General
Topic: Behavioral Errors / Risk Tolerance
Replies: 17
Views: 1768

Re: Behavioral Errors / Risk Tolerance

OP's description sounds like a pursuit of what behavioral economics says about loss aversion. From https://www.bogleheads.org/wiki/Risk_tolerance : "An important pitfall to be aware of is loss aversion, the emotional tendency to strongly prefer avoiding losses over acquiring gains. As an example, lo...
by small_index
Sat May 28, 2016 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: My former attorney has become an Edward Jones rep
Replies: 54
Views: 7222

Re: My former attorney has become an Edward Jones rep

It's a good cautionary tale, that someone we trust could become someone else. My sarcastic remark would be "Got tired of having fiduciary responsibility, eh?". But there's more to that remark - Congress is stalling a bill that would require financial advisers to have a fiduciary responsibility to th...
by small_index
Sat May 28, 2016 11:58 am
Forum: Investing - Theory, News & General
Topic: Books on Options
Replies: 57
Views: 3739

Re: Books on Options

I'd like to get the gang's take on selling puts on SPY to earn income on safety reserve cash. In order of least risky to most: reserve cash, owing S&P 500, shorting the S&P 500. If you take an option, and it expires, that amount of reserve cash you spent on the option disappears. So really, you're ...
by small_index
Thu Mar 03, 2016 1:33 am
Forum: Investing - Theory, News & General
Topic: A look at Emerging Markets, recency bias, and diversification
Replies: 32
Views: 4754

Re: A look at Emerging Markets, recency bias, and diversification

small index Those numbers you cited are virtually meaningless. They don't tell you anything about how assets are actually allocated, they are nothing more than anecdotes. Investors could for example have more money in mutual funds as opposed to the ETFs you cite. I'm pretty sure that Investors have...
by small_index
Wed Mar 02, 2016 6:12 pm
Forum: Investing - Theory, News & General
Topic: A look at Emerging Markets, recency bias, and diversification
Replies: 32
Views: 4754

Re: A look at Emerging Markets, recency bias, and diversification

I disagree with the article in one important respect: I see investers over-doing it in emerging markets. Looking at Vanguard's ETFs, emerging markets (VWO) actually has more assets than developed markets (VEA): ETF.. AUM($MM).. % of Vanguard ETF assets vti...53377...11.58% (Total US stock) voo...398...
by small_index
Sun Dec 06, 2015 7:16 pm
Forum: Investing - Help with Personal Investments
Topic: USAA vs Vanguard
Replies: 67
Views: 12436

Re: USAA vs Vanguard

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by small_index
Sat Dec 05, 2015 10:22 pm
Forum: Investing - Theory, News & General
Topic: Investing and Coworkers
Replies: 57
Views: 8018

Re: Investing and Coworkers

Going psychological on this important problem, I suspect we'd have to pick and choose a teachable moment for investing. I'm not trying to be trite - I think people ignore a single source of information. We might say our piece to friends, and without anything to reinforce it - or a motivation to use ...
by small_index
Fri Dec 04, 2015 10:24 am
Forum: Personal Finance (Not Investing)
Topic: Inheritance tax
Replies: 19
Views: 2407

Re: Inheritance tax

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by small_index
Thu Dec 03, 2015 10:37 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance tax
Replies: 19
Views: 2407

Re: Inheritance tax

...
by small_index
Thu Dec 03, 2015 1:53 pm
Forum: Investing - Theory, News & General
Topic: [Companies that pay] lobbyists beat the S&P 500
Replies: 10
Views: 1930

Re: [Companies that pay] lobbyists beat the S&P 500

A company that can't be bankrupted has an advantage, and that advantage has been conferred to financial companies during past financial crises. Along similar lines, lobbying confers tax or legal advantages not available to other companies or industries. So there might be a structural advantage to a ...
by small_index
Thu Dec 03, 2015 1:44 pm
Forum: Investing - Help with Personal Investments
Topic: Black Swan Avoidance
Replies: 21
Views: 3720

Re: Black Swan Avoidance

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by small_index
Wed Dec 02, 2015 10:16 pm
Forum: Investing - Help with Personal Investments
Topic: Black Swan Avoidance
Replies: 21
Views: 3720

Re: Black Swan Avoidance

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by small_index
Wed Dec 02, 2015 9:45 pm
Forum: Investing - Theory, News & General
Topic: [Companies that pay] lobbyists beat the S&P 500
Replies: 10
Views: 1930

Re: How lobbyists beat the S&P 500

Just to restate the last line of my first post in this thread:
"I'm not sure how to find a fund or ETF for this, and I'm not sure if I'd want to find one."