Search found 964 matches

by Ron Scott
Mon Oct 22, 2018 7:40 am
Forum: Investing - Theory, News & General
Topic: Set it and forget it
Replies: 27
Views: 4405

Re: Set it and forget it

StacktheBricksRic wrote:
Sun Oct 21, 2018 1:58 pm

The only thing that gets blurry, for some like myself, is shaving that foam when that beer pitcher gets full and allocating into the foam fund (Total Bond Fund).

:sharebeer
A tip:

If you truly set-and-forget, i,e, you never shave the foam, you are rewarded; the foam turns to beer!
by Ron Scott
Sun Oct 21, 2018 4:54 pm
Forum: Investing - Theory, News & General
Topic: 50 Stocks Enough to Diversify Idiosyncratic Risk?
Replies: 20
Views: 1155

Re: 50 Stocks Enough to Diversify Idiosyncratic Risk?

nisiprius wrote:
Sun Oct 21, 2018 4:06 pm
I don't know who's right. But, as long as I own the Total Stock Market Index Fund, I don't need to know who's right.
This about nails it...

Given the TSM funds out there, there is no need to approximate the market's return for the purpose of diversification. Unless you're Rube Goldberg.
by Ron Scott
Sun Oct 21, 2018 4:37 pm
Forum: Investing - Theory, News & General
Topic: "Retirement age uncertainty increases the savings needed for success"
Replies: 48
Views: 4530

Re: "Retirement age uncertainty increases the savings needed for success"

Now to some extent shortages of employees are a made up problem. Raise wages and those shortgages tend to disappear quickly. For the past 15 years or so I had a very difficult time filling advanced- and management-level statistician positions. We hired english-speaking immigrants and attracted peop...
by Ron Scott
Sun Oct 21, 2018 7:50 am
Forum: Personal Finance (Not Investing)
Topic: is it better to switch houses in a market downturn?
Replies: 4
Views: 840

Re: is it better to switch houses in a market downturn?

Transaction costs on a primary residential property are COL expenses to me so, all things being equal, I'd rather trade up in value during a market downturn and downsize in a price surge.
by Ron Scott
Sun Oct 21, 2018 5:43 am
Forum: Personal Finance (Not Investing)
Topic: Kitces link: The Spectrum of Financial Dependence and Independence
Replies: 20
Views: 1683

Re: Kitces link: The Spectrum of Financial Dependence and Independence

An alternative to Levels 14 and 15:

You spend a relatively low % of assets for living expenses, you can live with relatively low returns, and you will not need to sell equities at a low to fund living expenses. You are robust and either live consistently within Level 16 or float in and out of it.
by Ron Scott
Sat Oct 20, 2018 8:41 am
Forum: Investing - Theory, News & General
Topic: The End of Indexing?
Replies: 33
Views: 4027

Re: The End of Indexing?

Imdexing is problematic but the foolish fearbook referenced doesn’t address any of the problems. An interesting one for those who think about the growing trend toward index investing: http://theconversation.com/these-three-firms-own-corporate-america-77072 Combined, Vanguard, Blackrock, and State St...
by Ron Scott
Fri Oct 19, 2018 4:27 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice for beginner...
Replies: 5
Views: 585

Re: Portfolio Advice for beginner...

I would suggest reconsidering your AA as you prepare for the second half and increase exposure to bonds. Your age in bonds by the time you retire if not a bit earlier. You can start to move in this direction by investing in CA munis if you need room for bonds in taxable. I think VGs CA munis are rel...
by Ron Scott
Fri Oct 19, 2018 7:58 am
Forum: Investing - Help with Personal Investments
Topic: What if your risk tolerance is lower than what's best for your portfolio?
Replies: 51
Views: 3654

Re: What if your risk tolerance is lower than what's best for your portfolio?

I disagree with the common wisdom here. Two comments: 1. Maintain a minimum of 25% in equities. At about 40% you’re fine and should consider doing nothing. 2. Forget the psychological gibberish concocted by financial advisors and economists, that individuals have some kind of natural “risk tolerance...
by Ron Scott
Fri Oct 19, 2018 7:22 am
Forum: Investing - Theory, News & General
Topic: Why is dividend yield a part of expected future returns
Replies: 15
Views: 1078

Re: Why is dividend yield a part of expected future returns

Add estimated company profit growth to current market dividend yield to get estimated return. Yes, over the long term this is all you get. Historically, the average earnings of the S&P500 has been between 5-6% with dividends ranging between 2-3%. Add those two together and that is what you got for ...
by Ron Scott
Thu Oct 18, 2018 5:48 pm
Forum: Investing - Theory, News & General
Topic: So...what’s Plan B [for your retirement security]?
Replies: 20
Views: 2218

So...what’s Plan B [for your retirement security]?

The following post by pivoprussia, from another thread, stuck with me: These are my favorite threads. We all want to know IF we should be ok in our decisions. I have seen lots of comments about "flexibility" and the notion people will not blindly just follow the 4% rule from the Trinity Study. I hav...
by Ron Scott
Thu Oct 18, 2018 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: Did you retire because you hit your number?
Replies: 71
Views: 6312

Re: Did you retire because you hit your number?

You are rich only if the money you refuse tastes better than the money you accept.

—Taleb
by Ron Scott
Thu Oct 18, 2018 1:51 pm
Forum: Investing - Theory, News & General
Topic: Why dismiss sectors?
Replies: 31
Views: 1609

Re: Why dismiss sectors?

I think most here avoid investing in sectors vs. TSM because they believe their net return will be higher with TSM.
by Ron Scott
Thu Oct 18, 2018 9:09 am
Forum: Personal Finance (Not Investing)
Topic: Did you retire because you hit your number?
Replies: 71
Views: 6312

Re: Did you retire because you hit your number?

I had hit "my number" several years before I retired. I was planning on working 1 more year until retirement, then the company came out with an early retirement package, with a bonus of 1.5X times annual salary. I think I was the first one to sign up immediately :D After 2 years now in retirement, ...
by Ron Scott
Thu Oct 18, 2018 9:04 am
Forum: Investing - Help with Personal Investments
Topic: Spoke with a CFP...underwhelming!
Replies: 51
Views: 5034

Re: Spoke with a CFP...underwhelming!

I am interested in working with an extremely wealthy financial advisor who has invested according to his own advice for many years and can provide me adequate documentation he has done so. You might want to read the classic book "Where are the Customers Yachts?" before you hire a wealthy financial ...
by Ron Scott
Thu Oct 18, 2018 8:57 am
Forum: Investing - Help with Personal Investments
Topic: Spoke with a CFP...underwhelming!
Replies: 51
Views: 5034

Re: Spoke with a CFP...underwhelming!

unstoppable wrote:
Thu Oct 18, 2018 6:59 am

We both agreed on the SWR of 4% and most of the common mentions there...
This advice deserves to be treated with the same gravity as his advice on investing.
by Ron Scott
Thu Oct 18, 2018 8:08 am
Forum: Investing - Help with Personal Investments
Topic: Spoke with a CFP...underwhelming!
Replies: 51
Views: 5034

Re: Spoke with a CFP...underwhelming!

I am interested in working with an extremely wealthy financial advisor who has invested according to his own advice for many years and can provide me adequate documentation he has done so.
by Ron Scott
Thu Oct 18, 2018 8:01 am
Forum: Investing - Help with Personal Investments
Topic: Chase Private Client -- Worth it to hold Vanguard Funds?
Replies: 33
Views: 12908

Re: Chase Private Client -- Worth it to hold Vanguard Funds?

freebeer wrote:
Wed May 10, 2017 11:20 pm

But Chase will hard sell you on letting them actively manage your money. I had to steadfastly resist multiple sales pitches. And I'm sure there will be more. :moneybag
They have my cell number only and I just send them to VM. 2-3 times a year max and I never have a conversation.
by Ron Scott
Wed Oct 17, 2018 9:58 pm
Forum: Investing - Theory, News & General
Topic: "Retirement age uncertainty increases the savings needed for success"
Replies: 48
Views: 4530

Re: "Retirement age uncertainty increases the savings needed for success"

Now to some extent shortages of employees are a made up problem. Raise wages and those shortgages tend to disappear quickly. For the past 15 years or so I had a very difficult time filling advanced- and management-level statistician positions. We hired english-speaking immigrants and attracted peop...
by Ron Scott
Wed Oct 17, 2018 9:37 pm
Forum: Investing - Theory, News & General
Topic: "Retirement age uncertainty increases the savings needed for success"
Replies: 48
Views: 4530

Re: "Retirement age uncertainty increases the savings needed for success"

Now to some extent shortages of employees are a made up problem. Raise wages and those shortgages tend to disappear quickly. For the past 15 years or so I had a very difficult time filling advanced- and management-level statistician positions. We hired english-speaking immigrants and attracted peop...
by Ron Scott
Wed Oct 17, 2018 7:00 pm
Forum: Investing - Theory, News & General
Topic: Single Stock Concentration: Google Sheets beta
Replies: 5
Views: 607

Re: Single Stock Concentration: Google Sheets beta

One issue that comes up from time concerns single stock concentration: how much of a single stock is "safe" to keep in a portfolio. If you don't need the money any stock will do. If you NEED the money they all increase your risk to some extent and volatility is probably a good measure to consider. ...
by Ron Scott
Wed Oct 17, 2018 6:31 pm
Forum: Investing - Theory, News & General
Topic: flat for the year
Replies: 27
Views: 2481

Re: flat for the year

double
by Ron Scott
Wed Oct 17, 2018 6:31 pm
Forum: Investing - Theory, News & General
Topic: flat for the year
Replies: 27
Views: 2481

Re: flat for the year

The economy is indeed great, which doesn't mean individual returns are great for the year. PEs are lofty...
by Ron Scott
Wed Oct 17, 2018 6:24 pm
Forum: Investing - Theory, News & General
Topic: "Retirement age uncertainty increases the savings needed for success"
Replies: 48
Views: 4530

Re: "Retirement age uncertainty increases the savings needed for success"

Now to some extent shortages of employees are a made up problem. Raise wages and those shortgages tend to disappear quickly. For the past 15 years or so I had a very difficult time filling advanced- and management-level statistician positions. We hired english-speaking immigrants and attracted peop...
by Ron Scott
Wed Oct 17, 2018 4:06 pm
Forum: Investing - Theory, News & General
Topic: Too Much APPL Stock
Replies: 37
Views: 3666

Re: Too Much APPL Stock

APPL comprises about 3.8% of the S&P500, so your not in bad company...
by Ron Scott
Wed Oct 17, 2018 7:55 am
Forum: Personal Finance (Not Investing)
Topic: Did you retire because you hit your number?
Replies: 71
Views: 6312

Re: Did you retire because you hit your number?

Strange thing is that, while I really liked my work and found it very rewarding I do not miss it. I miss some of the people but not the job per se. Now it’s just my past career than I’m proud of. I moved on right away.

I did not expect to feel this way.
by Ron Scott
Wed Oct 17, 2018 6:54 am
Forum: Personal Finance (Not Investing)
Topic: What do you consider 'enough'?
Replies: 93
Views: 10046

Re: What do you consider 'enough'?

You can never be too rich or too thin.
by Ron Scott
Wed Oct 17, 2018 6:48 am
Forum: Personal Finance (Not Investing)
Topic: Did you retire because you hit your number?
Replies: 71
Views: 6312

Did you retire because you hit your number?

I retired for reasons having nothing to do with money. I went at 61 because a reorganization would have left me with a larger job I could not commit to or get excited about. I could have retired, from a financial perspective, in my early 50s, but then I would have missed my most significant achievem...
by Ron Scott
Tue Oct 16, 2018 10:28 pm
Forum: Investing - Help with Personal Investments
Topic: Investing During Retirement
Replies: 20
Views: 2526

Re: Investing During Retirement

I prefer the advice of Jack Bogle and suggest a 2 fund portfolio. Total US stock market and Total US bond market. No international needed.

I also suggest you keep your age in bonds, i.e., 2/3rds of your portfolio in bonds. If you’re portfolio is sizable and you are risk tolerant, drop 60% to bonds.
by Ron Scott
Tue Oct 16, 2018 9:20 pm
Forum: Investing - Theory, News & General
Topic: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"
Replies: 203
Views: 10640

Re: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"

America's success, which translates to investor success, owes in large measure to the way we treat failure (if you get up and try again all is good) and risk (nothing ventured, nothing gained).

It's hard to beat the attitude.
by Ron Scott
Tue Oct 16, 2018 8:58 pm
Forum: Investing - Theory, News & General
Topic: "Safe" Withdrawal Rate for Early Retirees (or any retiree)
Replies: 213
Views: 16817

Re: "Safe" Withdrawal Rate for Early Retirees (or any retiree)

I have seen lots of comments about "flexibility" and the notion people will not blindly just follow the 4% rule from the Trinity Study. I have not seen anyone mention the articles specifically addressing the myths of flexibility addressed in the Early Retirement Now series. Certainly people will cu...
by Ron Scott
Tue Oct 16, 2018 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: Completing My Portfolio Re-balance - Feedback?
Replies: 6
Views: 510

Re: Completing My Portfolio Re-balance - Feedback?

I believe the wiki shows a straightforward approach for using large, mid, and small-cap funds to emulate total market
by Ron Scott
Tue Oct 16, 2018 8:52 am
Forum: Investing - Help with Personal Investments
Topic: Completing My Portfolio Re-balance - Feedback?
Replies: 6
Views: 510

Re: Completing My Portfolio Re-balance - Feedback?

I have three thoughts for you: 1. The concept of rebalancing you describe is not what people on this forum mean when they use the term, so be careful of misinterpreting. People here are transferring smaller percentages of their investable assets between stocks and bonds to maintain an overall asset ...
by Ron Scott
Tue Oct 16, 2018 8:20 am
Forum: Investing - Theory, News & General
Topic: "Safe" Withdrawal Rate for Early Retirees (or any retiree)
Replies: 213
Views: 16817

Re: "Safe" Withdrawal Rate for Early Retirees (or any retiree)

You spend frugally in retirement like it's worst past case 1966 whether it is or not. Might die with $10M real portfolio starting with $1M - Woo-hoo Misers dream! But your analysis falls into the same trap that many of the doomsday 2 percenters go down. No reasonably astute person is going to sit b...
by Ron Scott
Tue Oct 16, 2018 6:36 am
Forum: Investing - Theory, News & General
Topic: "Safe" Withdrawal Rate for Early Retirees (or any retiree)
Replies: 213
Views: 16817

Re: "Safe" Withdrawal Rate for Early Retirees (or any retiree)

Does firecalc come with a time machine? :D All these successes are based on past data. Stocks have a wide range of returns which over time gets wider, The wide range of returns is taken into account. No one can predict the future, but virtually every single person on this board is using something h...
by Ron Scott
Mon Oct 15, 2018 11:08 pm
Forum: Investing - Help with Personal Investments
Topic: Completing My Portfolio Re-balance - Feedback?
Replies: 6
Views: 510

Re: Portfolio Re-balance Feedback

I’m confused. Didn’t you pull all of your money out of investments in March and go to cash so you could , as you say, re-balance?

Did you reinvest most of it then and now want to do it again?
by Ron Scott
Mon Oct 15, 2018 4:36 pm
Forum: Local Chapters and Bogleheads Community
Topic: favorite bogleheads posts?
Replies: 113
Views: 24523

Re: favorite bogleheads posts?

LadyGeek wrote:
Sat Oct 13, 2018 4:36 pm
^^^ I moved your post into the on-going discussion.
Outstanding!

And another great one...
hq38sq43 wrote:
Mon Oct 15, 2018 1:38 pm
Warren Buffett on active stock trading:
Calling someone who trades actively in the stock market an investor is like calling someone who engages repeatedly in one-night stands a romantic.
by Ron Scott
Mon Oct 15, 2018 4:24 pm
Forum: Investing - Theory, News & General
Topic: "Safe" Withdrawal Rate for Early Retirees (or any retiree)
Replies: 213
Views: 16817

Re: "Safe" Withdrawal Rate for Early Retirees (or any retiree)

These conversations revolve around risk and how willing you are to accept some risk. If you have a very low risk tolerance, shoot for a withdrawal rate of 3% or less and invest more heavily in bonds. If you feel your tolerance for risk is higher, start with a withdrawal rate of 4% or higher and a h...
by Ron Scott
Mon Oct 15, 2018 2:23 pm
Forum: Investing - Theory, News & General
Topic: What Jack Bogle Expects From the Market
Replies: 11
Views: 2171

Re: JoMoney is TOO optimistic :)

... So people who disagree with his projections are free to do the math: Dividend yield + Earnings growth + Speculative return. And if you think he's too low you should really step up and tell us where you think the growth is coming from in this formula... Despite the tumult, growth on tangible equ...
by Ron Scott
Mon Oct 15, 2018 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: Kids and Money
Replies: 38
Views: 1755

Re: Kids and Money

It is well known now through research and common sense that the children of the rich will do far better in life than the rest. Without actually giving them cash or a house or something, you will be spending money in ways that are meant to ensure their relatively higher standard of living in adulthoo...
by Ron Scott
Mon Oct 15, 2018 1:54 pm
Forum: Investing - Theory, News & General
Topic: What Jack Bogle Expects From the Market
Replies: 11
Views: 2171

Re: What Jack Bogle Expects From the Market

Bogle: It hasn't changed from what we talked about last year very much. But there's a reality to the stock market--let's take that first. The reality is that the fundamental return, the dividend yield plus the earnings growth of companies, drives the long term return of the stock market. The only t...
by Ron Scott
Mon Oct 15, 2018 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: CA vs NY: TAXES / BENEFITS
Replies: 11
Views: 716

Re: CA vs NY: TAXES / BENEFITS

And if you're thinking about the city:

NYC Income Tax Brackets
Married, Filing Separately
New York Taxable Income Rate
$25,000 - $50,000 3.591%
$50,000 - $500,000 3.648%
$500,000+ 3.876%
by Ron Scott
Mon Oct 15, 2018 11:55 am
Forum: Investing - Theory, News & General
Topic: What events hurt US equity returns in the past 100 years?
Replies: 12
Views: 1080

Re: What events hurt US equity returns in the past 100 years?

I thought the world wars were net positives for the US markets in the 20th century.
by Ron Scott
Mon Oct 15, 2018 8:23 am
Forum: Investing - Help with Personal Investments
Topic: Best way to Invest 10 Million Portfolio at 40 without income
Replies: 56
Views: 8661

Re: Best way to Invest 10 Million Portfolio at 40 without income

My thoughts: 1. Youre not even at the halftime break. You’re too young to know what you’ll want your lifestyle to be for the rest of your life. Assume it will evolve to cost more than you anticipate today. 2. 90-10 is aggressive by definition and for the reasons others stated above. At least 25% in ...
by Ron Scott
Sun Oct 14, 2018 10:57 pm
Forum: Investing - Theory, News & General
Topic: What events hurt US equity returns in the past 100 years?
Replies: 12
Views: 1080

What events hurt US equity returns in the past 100 years?

Those who ask “what have we learned from the past?” have similar interests as those who believe future impactful occurrences have precedents in the past that are worth analyzing. Others argue that some of the major impactful events in the past were unprecedented and could not be considered probable ...
by Ron Scott
Sun Oct 14, 2018 9:32 pm
Forum: Investing - Help with Personal Investments
Topic: Muscular Portfolios Questions
Replies: 9
Views: 1055

Re: Muscular Portfolios Questions

Brian Livingston suggests that one should select a "specific day" each month to "tune up" one's portfolio. On that day, one should immediately buy any top-three ETFs that one does not hold. Now my question: If in any one month the market begins to "plummet," should one not wait for the "specific da...
by Ron Scott
Sun Oct 14, 2018 3:08 pm
Forum: Investing - Theory, News & General
Topic: Is EMH a tautology?
Replies: 108
Views: 4639

Re: Is EMH a tautology?

Uh boy... A major implication of the theory is that a diversified low-fee portfolio--with no "information cost"--will beat stock picking. Hence, the chance of picking an undervalued stock is essentially random...and keeping trading to a minimum would be the way to go. You're still not getting it: t...
by Ron Scott
Sun Oct 14, 2018 2:36 pm
Forum: Investing - Theory, News & General
Topic: Is EMH a tautology?
Replies: 108
Views: 4639

Re: Is EMH a tautology?

You need to read what people wrote before you shoot. I spoke of diversification , not active vs. passive funds. I know when the passive party started. I guess you confused me because diversification has nothing at all to do with EMH. The primary implication of the EMH that people focus on is that i...
by Ron Scott
Sun Oct 14, 2018 2:19 pm
Forum: Investing - Theory, News & General
Topic: Is EMH a tautology?
Replies: 108
Views: 4639

Re: Is EMH a tautology?

You need to read what people wrote before you shoot. I spoke of diversification , not active vs. passive funds. I know when the passive party started. I guess you confused me because diversification has nothing at all to do with EMH. The primary implication of the EMH that people focus on is that i...
by Ron Scott
Sun Oct 14, 2018 2:09 pm
Forum: Investing - Theory, News & General
Topic: Has the US bull become addicted to corporate buybacks?
Replies: 16
Views: 1532

Re: Has the US bull become addicted to corporate buybacks?

1. Corporate buybacks now account for the largest share of trading in US stocks, surpassing individual and institutional buying. 2. This year corporations will buy back more than $1 trillion in stock, a record. Something is wrong with the assertion in Item 1 above. It is not believable that “ buyba...