Search found 989 matches

by AzRunner
Fri Feb 16, 2018 10:42 pm
Forum: Investing - Theory, News & General
Topic: A time to EVALUATE your jitters
Replies: 254
Views: 223017

Re: A time to EVALUATE your jitters

I haven't been to Bogleheads in a number of months, so I thoroughly enjoyed nisiprius' post. I guess I've lived through too many market drops to get concerned about a 10% drop, even if it is takes place in a week or so. Nisiprius' post is important because your reaction to a market correction is so ...
by AzRunner
Fri Sep 02, 2016 6:18 pm
Forum: Investing - Theory, News & General
Topic: "Are Index Funds Eating the World?"
Replies: 44
Views: 6784

AllianceBernstein, Karl Marx, and Index Investing

Good article by John Rekenthaler. http://news.morningstar.com/articlenet/article.aspx?id=768078 "Aiming High Of the paper itself, I am less envious. It certainly is ambitious. Topics include Marxist principles of social planning; Correlations of global stock prices; An 18-page analysis of the econom...
by AzRunner
Thu Dec 03, 2015 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard TurboTax - Not Available 2015?
Replies: 327
Views: 54154

Vanguard dropping TurboTax discount

I received an e-mail today from TurboTax saying that the discount that Vanguard provided to use TurboTax was being discounted, starting with the 2015 tax season. I called Vanguard to verify and they said it was a cost cutting move. I suspect the cost to Vanguard was climbing higher each year. A litt...
by AzRunner
Fri Sep 25, 2015 4:16 pm
Forum: Investing - Theory, News & General
Topic: Solutions for Retirement Funding & Post-Retirement Payout
Replies: 74
Views: 7150

Re: Solutions for Retirement Funding & Post-Retirement Payout

BobK, Very interesting. Thank you. So, what is a reverse mortgage? Maybe it is an imperfect, fee-laden, term certain SPIA? I pledge you my house. You agree to pay me some amount (for life?). If I die late, you lose. If I die early, there is still a residual value. I doubt a reverse mortgage is ever...
by AzRunner
Sat Jun 13, 2015 1:02 pm
Forum: Investing - Theory, News & General
Topic: M* How to Fine Tune Your Investment Mix in Retirement
Replies: 7
Views: 1710

Re: M* How to Fine Tune Your Investment Mix in Retirement

Thanks for the discussion to date. For many Bogleheads, we are primarily buy and hold with some re-balancing as required. Early in retirement, I primarily sell shares to meet living expenses, looking at my overall equity allocation and my long term capital gain exposure of the various options I have...
by AzRunner
Fri Jun 12, 2015 10:08 pm
Forum: Investing - Theory, News & General
Topic: M* How to Fine Tune Your Investment Mix in Retirement
Replies: 7
Views: 1710

M* How to Fine Tune Your Investment Mix in Retirement

In this article, a discussion between Christine Benz and Jason Stipp, a point they make, in addition to lessening your equity allocation, they suggest: "So, [for example,] there's the small-cap value effect, which has been well documented in a lot of literature, showing that small-cap value stocks o...
by AzRunner
Wed Jul 30, 2014 6:02 pm
Forum: Investing - Theory, News & General
Topic: Expected Future Yield Curve
Replies: 22
Views: 2063

Re: Expected Future Yield Curve

I'd say "A". If things play out as viewed from today, then yes, you will achieve a greater return, if you sell in two years, but then you would have to decide where to invest the money five years earlier than if you held until maturity. The logic in "B" does not make sense. Borrowing for seven years...
by AzRunner
Tue Jul 22, 2014 5:55 pm
Forum: Investing - Theory, News & General
Topic: New 10-Year TIPS Auction July 24 2014
Replies: 17
Views: 2218

Re: New 10-Year TIPS Auction July 24 2014

I am in the process of building a portfolio of 20 issues of 10-year TIPS, with roughly equal par amounts in each. So I buy some in every auction. Some rates are good, some rates are negative. Its just like dollar cost averaging. I find it interesting that bogleheads who (as a group) consistently ad...
by AzRunner
Fri Apr 11, 2014 3:35 pm
Forum: Investing - Theory, News & General
Topic: Tax Managed International
Replies: 27
Views: 2704

Re: Tax Managed International

I spoke with my Vanguard representative today. Since Vg moved to the new index benchmark providers about a year and a half ago, VTMGX has been following the FTSE Developed Markets Index. We now formally lose the potential to deviate from the index, but Vanguard is keen about the linked VEA ETF. In g...
by AzRunner
Thu Apr 10, 2014 10:08 pm
Forum: Investing - Theory, News & General
Topic: A Bubble in Value Stocks?
Replies: 31
Views: 3923

Re: A Bubble in Value Stocks?

Thanks for the chart. It's always good to look at the flow of money when you start to wonder about these things.
by AzRunner
Thu Apr 10, 2014 10:03 pm
Forum: Investing - Theory, News & General
Topic: Tax Managed International
Replies: 27
Views: 2704

Re: Tax Managed International

Rob, jsl11, Thanks for carrying the water on this issue. I agree with both of you that the fund is no longer what we chose to invest in. Both of the funds had billions in assets, around $23 billion in Tax Managed and 16.5 in Developed Markets. I'm thinking that Vanguard just decided that it wanted o...
by AzRunner
Wed Apr 09, 2014 11:21 pm
Forum: Investing - Theory, News & General
Topic: Tax Managed International
Replies: 27
Views: 2704

Tax Managed International

I was a happy owner of Vanguard Tax Managed International. It has merged with Vanguard Developed Markets (outside North America), yet the fund symbol is still VTMGX, so I'm assuming that its performance was better than the Developed Markets' fund, even though the Tax Managed strategy is being abando...
by AzRunner
Sat Mar 15, 2014 9:59 pm
Forum: Investing - Theory, News & General
Topic: The Arithmetic of Investment Expenses
Replies: 3
Views: 788

Re: The Arithmetic of Investment Expenses

Thanks for posting this article. The article is a worthwhile read and the math is not a major hurdle if you are somewhat comfortable with numbers. Even though there is a slim chance that investing in an actively managed fund with a high expense ratio may end up with higher terminal wealth than a low...
by AzRunner
Wed Jan 01, 2014 11:51 pm
Forum: Investing - Theory, News & General
Topic: Morningstar X-ray
Replies: 22
Views: 3699

Re: Morningstar X-ray

I just went into the M* tools via TRowePrice and updated my portfolio. All is good there again. They have reformatted the site, but I think everything that was there, is still there. There was nothing that I used before that has changed. Perhaps others will note whether there is any increased functi...
by AzRunner
Sun Oct 13, 2013 5:58 pm
Forum: Investing - Theory, News & General
Topic: What is Adequate Compensation for Extending Maturity?
Replies: 22
Views: 1689

Re: What is Adequate Compensation for Extending Maturity?

You should be adequately compensated for the additional interest rate risk for going out longer in duration. My recollection is that Larry's 20 basis point/year recommendation was based on empirical evidence on the risk/reward trade off. In addition, you need to look at your time horizon. Your durat...
by AzRunner
Sun Oct 13, 2013 4:56 pm
Forum: Personal Consumer Issues
Topic: best way to store your gold & silver
Replies: 23
Views: 2748

Re: best way to store your gold & silver

I've sold all my coins over the years, but keeping them in a safe or safe deposit box works fine. Of course, you can buy an ETF and bypass the storage issue completely. With the relatively high capital gains on commodities, it may be better to hold these in a tax advantaged account, if precious meda...
by AzRunner
Thu Aug 01, 2013 11:01 pm
Forum: Investing - Theory, News & General
Topic: Cash is Best Asset Class for Retirees?
Replies: 27
Views: 4098

Re: Cash is Best Asset Class for Retirees?

A take away from this article is that as the stock market continues to climb, as you rebalance, you might just increase your cash holdings instead of buying bonds. I'm looking at that right now as my equities approach the upper bound of my AA. Normally I would add to my short or intermediate term bo...
by AzRunner
Sat Jul 20, 2013 8:06 pm
Forum: Investing - Theory, News & General
Topic: M* Portfolio Manager through T Rowe Price
Replies: 2
Views: 755

Re: M* Portfolio Manager through T Rowe Price

livesoft,

Thanks. I definitely agree on the price.

Norm
by AzRunner
Sat Jul 20, 2013 5:36 pm
Forum: Investing - Theory, News & General
Topic: M* Portfolio Manager through T Rowe Price
Replies: 2
Views: 755

M* Portfolio Manager through T Rowe Price

Is anyone else having problems bringing up the Morningstar Portfolio Manager through the T Rowe Price site? I'm just getting a blue screen at the site, but everything else at T Rowe Price seems to work. Maybe they are having a temporary issue, but I thought I'd check. I haven't used the tool recentl...
by AzRunner
Sat Dec 15, 2012 12:17 am
Forum: Investing - Theory, News & General
Topic: CD Ladder vs. Short Term Investment Grade Fund in Roth IRA
Replies: 10
Views: 2078

Re: CD Ladder vs. Short Term Investment Grade Fund in Roth I

I am also interested in potentially buying CDs through Vanguard Brokerage. I see them as an alternative to the low rates on Treasuries. My fixed income plan calls for Short term and Intermediate term bonds funds and TIPS or Treasuries, each holding between 25-50%. My TIPS are just about at 25% and n...
by AzRunner
Sun Dec 09, 2012 11:56 pm
Forum: Investing - Theory, News & General
Topic: Should we really invest in short term bonds now?
Replies: 36
Views: 4057

Re: Should we really invest in short term bonds now?

As long as your holding period is truly at least as long as your fund's duration, and you don't panic if interest rates rise and your bond's principal decreases, then you are right, just stay the course. Bernstein has been advocating a very short duration on bonds for a number of years. Eventually i...
by AzRunner
Tue Oct 02, 2012 1:32 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Changing Indexes
Replies: 5
Views: 2123

Re: Vanguard Changing Indexes

ChicagoBooth has been a Finance leader and their CRSP indices, coming from the University of Chicago's Center for Research in Security Prices should be sound, although the proof is in the pudding. It's good that Vanguard is continuing to look to lower costs to their investors.

Norm
by AzRunner
Sun Sep 23, 2012 11:16 pm
Forum: Investing - Theory, News & General
Topic: Any reason to go outside Vanguard?
Replies: 15
Views: 2141

Re: Any reason to go outside Vanguard?

Tilters believe the small cap value premiums can't be captured at vanguard. Even modest tilters do use the Vanguard Smallcap Value Index fund. If you don't like the loading factors, just buy more of it. If you look at expense ratio, tracking error, simplicity of keeping all your funds at Vanguard, ...
by AzRunner
Thu Aug 09, 2012 10:48 pm
Forum: Investing - Theory, News & General
Topic: Your Best One Line of Wisdom
Replies: 238
Views: 19767

Re: Your Best One Line of Wisdom

Costs matter.
by AzRunner
Tue Jul 17, 2012 2:27 pm
Forum: Investing - Theory, News & General
Topic: forecasting the equity risk premium
Replies: 60
Views: 4317

Re: forecasting the equity risk premium

Rodc Now that you have done all that, somewhere well down the list of priorities you finally get to asset allocation. If you have done the above and you pick any allocation between, oh, say 40% to 70% stocks, rest bonds, stick to it for years, later adjust as you see how your investing, career and ...
by AzRunner
Thu Jul 12, 2012 10:01 pm
Forum: Investing - Theory, News & General
Topic: Consumption Strikes Back
Replies: 0
Views: 468

Consumption Strikes Back

This link has an overview of the paper, Consumption Strikes Back? Measuring Long-Run Risk , by Hansen, Heaton and Li. http://www.chicagobooth.edu/capideas/may-2012/heaton.aspx Between the article and the video, you get an idea of the paper, which looks pretty meaty. http://cowles.econ.yale.edu/confe...
by AzRunner
Fri Jul 06, 2012 11:26 pm
Forum: Investing - Theory, News & General
Topic: Investment Grade versus Treasury
Replies: 24
Views: 2427

Re: Investment Grade versus Treasury

I use both funds in addition to individual TIPS. As mrpotatoheadsays , if an individual investment grade corporate starts to falter and it is rated below investment grade, these funds will sell, but they will take a loss on those bonds. My view is that the bond market is extremely efficient. Risk an...
by AzRunner
Fri Jul 06, 2012 11:13 pm
Forum: Investing - Theory, News & General
Topic: Ways to View Break-even Inflation Rates
Replies: 21
Views: 3849

Re: Ways to View Break-even Inflation Rates

Thanks. Great post.

Norm
by AzRunner
Sun Jun 17, 2012 3:00 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Voice Verification
Replies: 21
Views: 3810

Re: Vanguard Voice Verification

I too have used it to avoid the need for medallion guarantees, very useful for when we are out of the country and it is near impossible to get such a guarantee. I have found that it gives some false negatives, especially early in the morning. I often need to give three samples before it OKs me. How...
by AzRunner
Thu Jun 14, 2012 11:15 pm
Forum: Investing - Theory, News & General
Topic: POLL: Has your investment course changed in 15 years?
Replies: 52
Views: 3750

Re: POLL: Has your investment course changed in 15 years?

I was core and explore 15 years ago. As actively managed funds disappointed they were sold and the appropriate index fund was purchased. Eventually I abandoned actively managed equity funds.

Norm
by AzRunner
Thu Jun 14, 2012 10:57 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Voice Verification
Replies: 21
Views: 3810

Re: Vanguard Voice Verification

Norm, Have you actually used this voice verification system to your satisfaction? My main concern is that voice is not as unique as other biometrics such as "iris" or "fingerprints." For example, my voice may sound completely different when I have a cold/flu. Just signed up today. I haven't tried i...
by AzRunner
Thu Jun 14, 2012 3:59 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Voice Verification
Replies: 21
Views: 3810

Vanguard Voice Verification

I signed up for the Vanguard Voice Verification for telephone transactions. This article may or may not be the specific software that Vanguard is using, but it provides some interesting background on the capability. http://www.authentify.com/solutions/voice_biometrics.html A voice biometric is a num...
by AzRunner
Sat Jun 09, 2012 7:35 pm
Forum: Investing - Theory, News & General
Topic: Not so Expert
Replies: 6
Views: 786

Re: Not so Expert

Good article. Perhaps the financial-advice industry survives because the idea that the future is unknowable is just unsatisfying. Some forecast—any forecast—is therefore comforting. Mr Tetlock suggests that “we believe in experts in the same way that our ancestors believe in oracles; we want to beli...
by AzRunner
Mon Jun 04, 2012 10:43 pm
Forum: Investing - Theory, News & General
Topic: The $100 Billion Oxymoron - William Bernstein
Replies: 27
Views: 4227

Re: The $100 Billion Oxymoron - William Bernstein

Good article. William Bernstein rarely disappoints. How many Facebook purchasers do you think have exerted the considerable effort of estimating Facebook's future advertising revenues? Using the word "investor" to describe these folks is akin to calling Tony Soprano a Catholic. Joe Nocera got closes...
by AzRunner
Wed Apr 18, 2012 11:07 pm
Forum: Investing - Theory, News & General
Topic: I still don't get Vanguard's NAV pricing
Replies: 5
Views: 1070

Re: I still don't get Vanguard's NAV pricing

natureexplorer The NAV is a mechanical calculation that just takes the aggregate price/share * number of shares of all the funds holdings. It is the market that creates a premium or a discount based on supply and demand. If the premium or discount becomes too large, designated market participants w...
by AzRunner
Sun Apr 08, 2012 11:40 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value - What Funds & How Much do you tilt?
Replies: 156
Views: 9963

Re: Small Cap Value - What Funds & How Much do you tilt?

Here is our portfolio in the M* grid: 21--17--14 / 52 07--07--04 / 18 14--10--05 / 29 -------------- 42--34--23 So we have a modest tilt towards small-cap and to value. Basically I buy in to the arguments made by Fama-French, Larry Swedroe and Rick Ferri on the benefits of the risk premiums associat...
by AzRunner
Sun Apr 01, 2012 8:33 pm
Forum: Investing - Theory, News & General
Topic: What if you pay more than a billion dollars in fees?
Replies: 15
Views: 1536

Re: What if you pay more than a billion dollars in fees?

Ironically, Vanguard Headquarters in Valley Forge, PA is their counter example that the state has decided to spurn.

Norm
by AzRunner
Sun Apr 01, 2012 1:59 am
Forum: Investing - Theory, News & General
Topic: How Friends Help Friends Become Indexers
Replies: 22
Views: 2553

Re: How Friends Help Friends Become Indexers

I agree with Jacobkg ; friends that are new to investing are quite open to indexing. Once someone has been investing in actively managed funds, it is difficult to move them to indexing. In the past, I've tried with close friends, but now I just do my own things. If someone asks, I tell them I use lo...
by AzRunner
Fri Mar 30, 2012 10:21 pm
Forum: Investing - Theory, News & General
Topic: What is your target allocation to TIPS? {Poll}
Replies: 83
Views: 15272

Re: What is your target allocation to TIPS? {Poll}

My target allocation to TIPS is 50%, but I am at 25% since they have been bid up so high.

Norm
by AzRunner
Fri Mar 30, 2012 10:06 pm
Forum: Investing - Theory, News & General
Topic: The Generation of the First Index Fund
Replies: 0
Views: 297

The Generation of the First Index Fund

Interesting article on the generation of the first index fund. It comes from ChicagoBooth, so expect some back patting. It also draws on Peter L. Bernstein's Capital Ideas: The Improbable Origins of Modern Wall Street . We had it all ready to go,” say McQuown. “Until Fischer and Myron [Scholes] made...
by AzRunner
Tue Mar 13, 2012 7:14 pm
Forum: Investing - Theory, News & General
Topic: Social Security Earnings History
Replies: 4
Views: 727

Re: Social Security Earnings History

Past earnings are adjusted for inflation.

Norm
by AzRunner
Fri Feb 10, 2012 10:15 pm
Forum: Investing - Theory, News & General
Topic: Bond Fund Duration
Replies: 2
Views: 463

Re: Bond Fund Duration

I do not have the math at hand, but by withdrawing the interest from the bond fund, you are obviously violating a key premise of holding the bond fund for the duration to ensure that you obtain the yield at which you bought the fund. I would say that you are preserving the nominal yield at that poin...
by AzRunner
Mon Feb 06, 2012 10:25 pm
Forum: Investing - Theory, News & General
Topic: ok - what's with all the TIPS?
Replies: 35
Views: 3792

Re: ok - what's with all the TIPS?

Patience in investing is under appreciated. Market environments and interest rates change. Even if your asset allocation calls for a certain investment, the price you pay for it matters, especially for fixed income. Norm Norm, Does the price you pay for fixed income differ in any fundamental way fr...
by AzRunner
Sun Feb 05, 2012 9:27 pm
Forum: Investing - Theory, News & General
Topic: ok - what's with all the TIPS?
Replies: 35
Views: 3792

Re: ok - what's with all the TIPS?

About 25% of my fixed income allocation is in individual TIPS. Ideally I'd like to see the allocation be 50%, but given the way they have been bid up, I don't see buying anymore until their yield increases. The key with fixed income instruments is the price you buy them at and their associated yield...
by AzRunner
Sun Feb 05, 2012 9:07 pm
Forum: Investing - Theory, News & General
Topic: What's the Use of Wond'rin'?
Replies: 7
Views: 1209

Re: What's the Use of Wond'rin'?

Bravo!

Norm
by AzRunner
Sat Feb 04, 2012 11:00 pm
Forum: Investing - Theory, News & General
Topic: Add Momentum to a Portfolio?
Replies: 14
Views: 1455

Re: Add Momentum to a Portfolio?

Tonen wrote:I've always thought the sImplest way to utilise momentum is just use allocation tolerance bands? Daily rebalancing = no momentum, fairly wide tolerance bands/ infrequent rebalancing = momentum. The latter also cuts down on transaction and tax costs.
+1

Norm
by AzRunner
Sat Feb 04, 2012 10:49 pm
Forum: Investing - Theory, News & General
Topic: Do you read the Annual Reports from the funds you are in?
Replies: 15
Views: 1446

Re: Do you read the Annual Reports from the funds you are in

I used to read them, but since all my funds are indexed, there really is not much that they can say that is news to me. I know Vanguard does an excellent job of following its benchmark. I get an on-link now, but I don't take the time to glance at them anymore. In a similar vein, I used to go to the ...