Search found 377 matches

by betablocker
Mon Sep 17, 2018 9:22 pm
Forum: Investing - Help with Personal Investments
Topic: Critique my High-Risk Factor Portfolio
Replies: 31
Views: 2400

Re: Critique my High-Risk Factor Portfolio

Why not just hold something like Alpha Architect’s VMOT which covers the factors you want in a concentrated fashion with a trend following overlay? Then diversify with some bonds and real assets. I just checked out the Alpha Architect ETF website. I wasn't aware of these before. Is there any discus...
by betablocker
Mon Sep 17, 2018 7:59 pm
Forum: Investing - Help with Personal Investments
Topic: Critique my High-Risk Factor Portfolio
Replies: 31
Views: 2400

Re: Critique my High-Risk Factor Portfolio

Hi all, Long time lurker, first time poster here. I recently came in to a modest inheritance and became interested in taking investing more seriously. I had previously been contributing to my 403b, but without much thought. I read John Bogle's Common Sense on Mutual Funds , William Berstein's 4 Pil...
by betablocker
Thu Sep 13, 2018 8:45 am
Forum: Investing - Help with Personal Investments
Topic: Any issues keeping <$1MIL in VMFXX (Money Market Fund)?
Replies: 21
Views: 2861

Re: Any issues keeping <$1MIL in VMFXX (Money Market Fund)?

No issues. If you have a high tax rate look at a muni money market if not look at the treasury as other posters have recommended or prime. All good choices. Money markets are not insured true but the closest they ever came to losing money was during the GFC and the Fed is never going to let that hap...
by betablocker
Thu Sep 13, 2018 8:33 am
Forum: Investing - Help with Personal Investments
Topic: Fidelity, Schwab, or Vanguard
Replies: 61
Views: 4078

Re: Fidelity, Schwab, or Vanguard

I've found that the cheap options at Schwab and Fidelity are more limited. Maybe S&P 500 is no fee but then their muni money market is 3-4x times the fee of Vanguard's option. That's where these guys make their money. They are also defaulting your sweep account to a bank account with almost no inter...
by betablocker
Wed Sep 12, 2018 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Mr.No - another should I pay off my mortgage, post
Replies: 31
Views: 2591

Re: Mr.No - another should I pay off my mortgage, post

Cheap, manageable and tax deductible debt is almost an asset. If you don’t believe me follow Buffett. His whole empire is based on insurance float. Dont send your money into the ether for a 2% return (factoring in the tax deduction). With that bonus you aren’t in 33% anymore. Stay liquid. I read a ...
by betablocker
Tue Sep 11, 2018 6:42 pm
Forum: Personal Finance (Not Investing)
Topic: Mr.No - another should I pay off my mortgage, post
Replies: 31
Views: 2591

Re: Mr.No - another should I pay off my mortgage, post

Cheap, manageable and tax deductible debt is almost an asset. If you don’t believe me follow Buffett. His whole empire is based on insurance float. Dont send your money into the ether for a 2% return (factoring in the tax deduction). With that bonus you aren’t in 33% anymore. Stay liquid. I read a g...
by betablocker
Wed Sep 05, 2018 9:41 am
Forum: Investing - Theory, News & General
Topic: Hold cash in Treasury Bills or in Money Market Fund?
Replies: 36
Views: 4560

Re: Hold cash in Treasury Bills or in Money Market Fund?

I use Vanguard's Muni Money Market or Treasury Money Market in taxable for my "bank" account. That's what I pay bills from and other short term cash needs. Anything I'm not touching would go into a CD, muni, or get invested. Even short term bond funds will go down if you don't hold to maturity. I do...
by betablocker
Mon Sep 03, 2018 9:07 am
Forum: Personal Finance (Not Investing)
Topic: Analysis Paralysis - Mortgage, Emergency Fund, etc.
Replies: 51
Views: 4242

Re: Analysis Paralysis - Mortgage, Emergency Fund, etc.

I agree with Klangfool here. What you need is liquidity and investments that grow. I understand your hesitancy to sell stock but that hesitancy is keeping you from buying more. You should figure out your asset allocation and stick to it. Paying off the mortgage and not selling stocks may feel good b...
by betablocker
Tue Aug 21, 2018 11:00 am
Forum: Investing - Help with Personal Investments
Topic: Small Biz Owner Would Appreciate Feedback on Investments
Replies: 10
Views: 710

Re: Small Biz Owner Would Appreciate Feedback on Investments

Hi there! Newly minted BH here… looking for some guidance from this knowledgeable group. From blog reading and then following up with a variety of books and other online resources I have taken some big steps over the past few months to take control of our investments (i.e. fire my financial planner...
by betablocker
Tue Aug 14, 2018 12:11 pm
Forum: Investing - Help with Personal Investments
Topic: Small business owner, mid 30s, doing great, clueless with investments
Replies: 22
Views: 2125

Re: Small business owner, mid 30s, doing great, clueless with investments

I have never considered stocks/REITs to be coordinated but it makes sense. No, I don't have a line of credit or HELOC. I haven't found it necessary. I'll check out Larry Swedroe info. Thanks. I own a business as well and try to match my asset allocation to the risk of my company. Stocks and REITS a...
by betablocker
Mon Aug 13, 2018 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: Small business owner, mid 30s, doing great, clueless with investments
Replies: 22
Views: 2125

Re: Small business owner, mid 30s, doing great, clueless with investments

I own a business as well and try to match my asset allocation to the risk of my company. Stocks and REITS are highly coordinated with your business so I would say have a lower equity allocation, avoid REITs, and explore some alternative investments that aren't correlated with the markets. I invest i...
by betablocker
Sat Jul 28, 2018 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: [S-Corps] Accountant advice on handling profit
Replies: 22
Views: 1410

Re: [S-Corps] Accountant advice on handling profit

Agreed on running the scenarios. One piece of advice from one S-Corp owner to another. Get the money out into personal accounts. Cash sitting around beyond what you absolutely need for working capital has a habit of getting spent on vaniety projects or worse “strategic investments”. That’s code for ...
by betablocker
Sat Jul 28, 2018 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: [S-Corps] Accountant advice on handling profit
Replies: 22
Views: 1410

Re: [S-Corps] Accountant advice on handling profit

Agreed on running the scenarios. One piece of advice from one S-Corp owner to another. Get the money out into personal accounts. Cash sitting around beyond what you absolutely need for working capital has a habit of getting spent on vaniety projects or worse “strategic investments”. That’s code for ...
by betablocker
Sat May 12, 2018 10:50 am
Forum: Investing - Help with Personal Investments
Topic: Using Margin For Business
Replies: 13
Views: 836

Re: Using Margin For Business

I’d also hold some money in a money market or high yield savings.
by betablocker
Sat May 12, 2018 10:49 am
Forum: Investing - Help with Personal Investments
Topic: Using Margin For Business
Replies: 13
Views: 836

Re: Using Margin For Business

I’d stick at the shorter end for fixed income and you might want to look at munis depending on your tax situation. I like the idea of investors for sales people and margin for inventory. Reality is most entrepreneurs have a line of credit that is personally guaranteed so they are leveraging their st...
by betablocker
Fri May 11, 2018 3:55 pm
Forum: Investing - Theory, News & General
Topic: Setting up a new 401k for a small non-profit - advice?
Replies: 6
Views: 677

Re: Setting up a new 401k for a small non-profit - advice?

I use employee fiduciary for my small business. I highly recommend them. I don’t know Guideline. They don’t make fund recommendations so we mimicked the TSP and used vanguards life cycle funds. You can also get access to DFA.
by betablocker
Thu May 10, 2018 7:43 pm
Forum: Investing - Help with Personal Investments
Topic: Using Margin For Business
Replies: 13
Views: 836

Re: Using Margin For Business

Tough question to answer without looking at your whole portfolio and how cyclical your business is. If you are tied to the business cycle I’d be worried that stocks would go down right as your business did so i’d keep equities in a place where you could take a 50% drawdown and have a good cushion on...
by betablocker
Thu May 10, 2018 2:49 pm
Forum: Investing - Help with Personal Investments
Topic: Using Margin For Business
Replies: 13
Views: 836

Re: Using Margin For Business

I've also looked at using Interactive Brokers margin as working capital. I have a credit line but IB is cheaper. Two considerations I would have. First is how long you hold the inventory. Finance theory says you should try to match the duration of the funding with the duration of the need. So using ...
by betablocker
Sun May 06, 2018 3:15 pm
Forum: Investing - Theory, News & General
Topic: How do you do the Larry Portfolio?
Replies: 56
Views: 11343

Re: How do you do the Larry Portfolio?

I’ve been looking at using Alpha Architect’s VMOT ETF instead of DFA’s SCV and adding a bit more emerging markets to bring equities to 30-40% of the portfolio. I like that VMOT includes momentum as well as value and has trend following built in. I think the LP suffers from that lack of momentum whic...
by betablocker
Mon Apr 23, 2018 5:11 pm
Forum: Investing - Help with Personal Investments
Topic: Spreading Bond Safety to Taxable [Portfolio help]
Replies: 14
Views: 1442

Re: From stock picker to boglehead -- how to divest

Hi all, just turned 30 and decided it was time I learned how to manage my investments. Previously, my dad was managing my taxable accounts and well turns out he was a stock picker. I'd like to move my money out of these individual stocks and into index funds in line with my desired AA, but I'm not ...
by betablocker
Mon Jan 22, 2018 8:53 pm
Forum: Investing - Theory, News & General
Topic: Hedge Funds' Annualized Returns
Replies: 7
Views: 894

Re: Hedge Funds' Annualized Returns

I think there are lots of reasons some of which are good and some bad. There are a very few funds that outperform. Renaissance is in that category. There are also strategies that certain hedge funds employ that work: trend following, managed futures, etc. In a bull market for the S&P these tend to u...
by betablocker
Thu Jan 11, 2018 7:37 pm
Forum: Investing - Theory, News & General
Topic: Hedge Funds' Annualized Returns
Replies: 7
Views: 894

Re: Hedge Funds' Annualized Returns

They are very unreliable. A lot is self reported and the hundreds of funds that close down each year create survivor bias. Also hedge funds have such differing strategies that even if you had the average you wouldn’t know much.
by betablocker
Sun Jan 07, 2018 7:43 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Patience And Diversification Crucial
Replies: 51
Views: 7546

Re: Larry Swedroe: Patience And Diversification Crucial

The companies a value fund owns are just as real and investable as the ones that any fund owns.
by betablocker
Sun Jan 07, 2018 5:25 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Patience And Diversification Crucial
Replies: 51
Views: 7546

Re: Larry Swedroe: Patience And Diversification Crucial

The market write large contains all the risk factors in a way but they cancel each other out. What we are trying to do is own the factors that are distinct, have positive expected returns and get the benefit of diversifying across them. Why would you want to own risk factors with negative expected r...
by betablocker
Fri Jan 05, 2018 4:57 pm
Forum: Investing - Theory, News & General
Topic: "The Boglehead Philosophy"
Replies: 8
Views: 1137

Re: "The Boglehead Philosophy"

I'd say many of us use trend following so we're heretics. Schismatics can replace 5 with: Follow evidence that is robust, pervasive, and investable. I agree with the rest!
by betablocker
Thu Jan 04, 2018 9:11 pm
Forum: Investing - Theory, News & General
Topic: Investing in AQR funds
Replies: 10
Views: 1593

Re: Investing in AQR funds

Many people use FPL capital. They have a very low cost option with access to many of the funds Larry references.
by betablocker
Thu Jan 04, 2018 1:28 pm
Forum: Investing - Help with Personal Investments
Topic: Selling Shares of UTMA Account
Replies: 40
Views: 2593

Re: Selling Shares of UTMA Account

Wondering if anyone has seen any info on whether UTMAs still make sense under the new tax law.
by betablocker
Wed Jan 03, 2018 8:38 pm
Forum: Investing - Theory, News & General
Topic: Talk me out of a 60/40 AA
Replies: 76
Views: 9737

Re: Talk me out of a 60/40 AA

I’d talk you out of it by saying the returns will stink over the intermediate term and after a 8-9 year bull market maybe longer. That’s why everyone is after alts, factors, etc. It definitely seems like we’re in for a tough time with 60/40 after a great run. Millennials should hope for a sharp cras...
by betablocker
Wed Jan 03, 2018 1:56 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation, starting business soon
Replies: 5
Views: 472

Re: Asset allocation, starting business soon

I’d seriously consider putting your bonds in the ira and stocks in your taxable. Your tax rate is low but look at the new tax bill and figure out the spread between income and capital gains for your situation. Most likely you are paying too much tax on the interest. If you are starting a business a...
by betablocker
Tue Jan 02, 2018 3:51 pm
Forum: Investing - Help with Personal Investments
Topic: 529 planning for immediate elementary school withdrawals, no state tax benefits
Replies: 3
Views: 589

Re: 529 planning for immediate elementary school withdrawals, no state tax benefits

I don't see why you would superfund and I wouldn't do munis since the money grows tax free. It doesn't necessarily make sense to view the contributions as part of your portfolio in my mind since the funds can only be used for very specific expenses. If you do superfund, I would however view the enti...
by betablocker
Tue Jan 02, 2018 10:08 am
Forum: Investing - Theory, News & General
Topic: Is Beta a distinct factor or a summation of other factors
Replies: 42
Views: 2358

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

Thanks for the replies. In terms of terminology I think the price in an efficient market is the best estimate of value. For the price to reflect this you need have a diversity of values that are independently derived. If this is the case, any other price on average is worse. There are going to be c...
by betablocker
Mon Jan 01, 2018 6:09 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation, starting business soon
Replies: 5
Views: 472

Re: Asset allocation, starting business soon

I’d seriously consider putting your bonds in the ira and stocks in your taxable. Your tax rate is low but look at the new tax bill and figure out the spread between income and capital gains for your situation. Most likely you are paying too much tax on the interest. If you are starting a business an...
by betablocker
Mon Jan 01, 2018 5:55 pm
Forum: Investing - Help with Personal Investments
Topic: Investing in Real Estate
Replies: 30
Views: 3081

Re: Investing in Real Estate

I’ve considered real estate as well. Residential is tough though. Renters are a pain and there are lots of laws. If you are close enough to oversee the property, you aren’t diversified. It’s really a profession where you need to work, research and learn. From my conversations with friends who are co...
by betablocker
Mon Jan 01, 2018 3:12 pm
Forum: Investing - Theory, News & General
Topic: Is Beta a distinct factor or a summation of other factors
Replies: 42
Views: 2358

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

I am saying that the market will price on average the risks in stocks appropriately so, unless you have specific information about a specific security that is not incorporated into price, the best estimate of value is the market price packer: Although I'm sympathetic with your understanding, I thin...
by betablocker
Mon Jan 01, 2018 2:27 pm
Forum: Investing - Theory, News & General
Topic: Is Beta a distinct factor or a summation of other factors
Replies: 42
Views: 2358

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

This has bothered me about factors as a source of returns rather than just using them as risk models. In other words, what is priced in and why? Not to speak for Packer, but if you have all these well known factors like Value, Size, etc, with decades of academic research, why would they deliver out...
by betablocker
Mon Jan 01, 2018 11:01 am
Forum: Investing - Theory, News & General
Topic: Is Beta a distinct factor or a summation of other factors
Replies: 42
Views: 2358

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

I’d be wary of drawing conclusions based on some screens. One reason those companies might be more in debt is that debt is cheap so it is very rational to do so. Many value processes screen for quality measures as well. But in the end there is some element of risk involved in value the question is i...
by betablocker
Mon Jan 01, 2018 10:18 am
Forum: Investing - Theory, News & General
Topic: Is Beta a distinct factor or a summation of other factors
Replies: 42
Views: 2358

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

Packer, I’d agree that factors can be overbought. Low Vol is a good example but this is cyclical as well. I’d agree for value if we saw the spreads between expensive and cheap narrow but they are at historic norms suggesting value is not expensive. The evidence for momentum has been available for 10...
by betablocker
Sun Dec 31, 2017 9:55 pm
Forum: Investing - Theory, News & General
Topic: Is Beta a distinct factor or a summation of other factors
Replies: 42
Views: 2358

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

Big asset managers know that factors will outperform in the long term but there are of course periods of underperformance. betablocker: What is your source? Thank you and Happy New Year! Taylor This was a key paper from 1995 on the limits to arbitrage: http://www.nber.org/papers/w5167.pdf. Often ci...
by betablocker
Sun Dec 31, 2017 6:15 pm
Forum: Investing - Theory, News & General
Topic: Is Beta a distinct factor or a summation of other factors
Replies: 42
Views: 2358

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

Beta is not a facgtor or summation of factors. It is a performance risk measure. Beta compares your portfolio's volility against the index. If you have a small value portfolio then your index is a small value portfolio. Beta tells your how much of your performance is from the market - the index. Th...
by betablocker
Sun Dec 31, 2017 6:08 pm
Forum: Investing - Theory, News & General
Topic: Is Beta a distinct factor or a summation of other factors
Replies: 42
Views: 2358

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

Big asset managers know that factors will outperform in the long term but there are of course periods of underperformance. betablocker: What is your source? Thank you and Happy New Year! Taylor This was a key paper from 1995 on the limits to arbitrage: http://www.nber.org/papers/w5167.pdf. Often ci...
by betablocker
Sun Dec 31, 2017 4:06 pm
Forum: Investing - Theory, News & General
Topic: Is Beta a distinct factor or a summation of other factors
Replies: 42
Views: 2358

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

The follow-up question I have is why is not the market weights the most efficient portfolio as the you have the weights of the market participants in your portfolio. It may not be right but it is the best estimate available. Is not any deviation saying you know more than the market that has put the...
by betablocker
Sun Dec 31, 2017 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Mortgage vs Investing
Replies: 14
Views: 1163

Re: Mortgage vs Investing

I have the option of buying my house in cash outright or taking a mortgage and investing it by paying a rate of 4.125%. I've seen other questions on this forum regarding paying a mortgage off vs investing it. I realize you can't find 4.125% risk free anywhere else, but buy the same token if your in...
by betablocker
Sat Dec 30, 2017 4:04 pm
Forum: Investing - Theory, News & General
Topic: Is Beta a distinct factor or a summation of other factors
Replies: 42
Views: 2358

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

Stultz, you could also remove the market factor by going long short and isolate another factor.
by betablocker
Sat Dec 30, 2017 3:51 pm
Forum: Investing - Theory, News & General
Topic: Is Beta a distinct factor or a summation of other factors
Replies: 42
Views: 2358

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

I’m no academic expert but it would seem to me that factors are ways of categorizing and describing properties of assets. Value, momentum, etc exist in any asset including equities, bonds, commodities, currencies, real estate, etc so they aren’t exclusive to equities. Just as adjectives aren’t nouns...
by betablocker
Sat Dec 30, 2017 9:34 am
Forum: Investing - Help with Personal Investments
Topic: Is it me or does everything seem expensive?
Replies: 47
Views: 5815

Re: Is it me or does everything seem expensive?

I am an index investor, with a tendency towards value investing and some trading.. It seems to me that everything seems expensive at the moment - housing, stocks, bonds Granted I am not a professional investor, but when I look around everything seems overvalued... I was reading a macro hedge fund i...
by betablocker
Sat Dec 30, 2017 9:24 am
Forum: Investing - Help with Personal Investments
Topic: S Corp to C Corp for medical/personal service professionals?
Replies: 6
Views: 1189

Re: S Corp to C Corp for medical/personal service professionals?

I got the same advice. I’m going to go buy an engineering firm.
by betablocker
Sat Dec 30, 2017 9:22 am
Forum: Investing - Theory, News & General
Topic: What ever happened to the Larry portfolio?
Replies: 120
Views: 14529

Re: What ever happened to the Larry portfolio?

On December 23, 2011, Ron Lieber made the Larry Portfolio known to the wide public with his " Taking a Chance on the Larry Portfolio " article in The New York Times. Here's an illustration that the article gave of one version of this portfolio along with a benchmark: For illustration purposes, [Lar...
by betablocker
Thu Dec 28, 2017 10:53 pm
Forum: Investing - Help with Personal Investments
Topic: Payoff Mortgage or keep VWIUX
Replies: 8
Views: 1154

Re: Payoff Mortgage or keep VWIUX

I wouldn’t pay off super cheap long term debt like that. For starters once you pay off a loan you don’t have access to that cash and it’s just so crazy cheap. If inflation rises just a bit more they are paying you for the mortgage. You’d also be taking away rebalancing money from stocks.
by betablocker
Tue Dec 26, 2017 10:57 am
Forum: Investing - Help with Personal Investments
Topic: How to Invest my HSA - Lively
Replies: 30
Views: 5195

Re: How to Invest my HSA - Lively

I’m assuming you’re young based on the target date. Doesn’t seem like an annuity would make sense now if retirement is so far off. I’d look at that. Can you reallocate that? You need to determine how risky you want to be. You have some bonds in the target fund. Probably 10-20% of that. So overall yo...
by betablocker
Tue Dec 26, 2017 9:08 am
Forum: Investing - Theory, News & General
Topic: Email from Larry Swedroe about "Reducing the Risk of Black Swans" book 2nd ed.
Replies: 8
Views: 2401

Re: Email from Larry Swedroe about "Reducing the Risk of Black Swans" book 2nd ed.

Thanks for sharing. Definitely looking forward to this book. We need some more information on how to incorporate alts into portfolios.