Search found 415 matches

by Portfolio7
Sun Sep 16, 2018 3:24 pm
Forum: Investing - Theory, News & General
Topic: "Four Ways to Boost Investment Returns Without Additional Risk"
Replies: 2
Views: 1354

Re: "Four Ways to Boost Investment Returns Without Additional Risk"

Do funds with low ERs necessarily have lower churn than funds with higher ERs? I don't think that's true. The lowest cost funds out there are indexed and usually have little turnover, but I don't know that we can say that fund A having a lower ER than fund B means that A automatically has lower chu...
by Portfolio7
Sun Sep 16, 2018 1:08 pm
Forum: Investing - Theory, News & General
Topic: Parallels between investing and fantasy football?
Replies: 14
Views: 763

Re: Parallels between investing and fantasy football?

I used to play fantasy baseball... and there are a lot of parallels. If you think of your team as a portfolio of funds, and your star clean-up batter like the S&P500, with a long history of strong performance... he might start the season so slow, you wonder what the problem is. You consider subbing ...
by Portfolio7
Tue Sep 11, 2018 10:59 pm
Forum: Investing - Theory, News & General
Topic: Mother, can I trust the stock market?
Replies: 19
Views: 2235

Re: Mother, can I trust the stock market?

Read this and try not to freak out https://www.bloomberg.com/view/articles/2017-02-17/dole-food-had-too-many-shares Essentially the way everyone owns stock is: Cede & Co., a nominee of the Depository Trust Co., owns all the stock in all the companies. DTC keeps a list of its "participants" -- banks...
by Portfolio7
Tue Sep 11, 2018 1:25 am
Forum: Investing - Theory, News & General
Topic: Value of Vanguard's Allocation Chart? Putting the present in a larger context? Or ???
Replies: 12
Views: 1342

Re: How close are your 12 month earnings compared to Vanguard's Allocation Chart?

Given the scale of returns you posted and translating against the tracking I did, I roughly match a 90/10 portfolio over the entire time I've invested, about 23 years. It's pretty much an apples to oranges compare no matter how you do it, so I'm not sure of the point? I mean, if I'd been 100% US ins...
by Portfolio7
Sat Sep 08, 2018 4:19 pm
Forum: Investing - Theory, News & General
Topic: Lessons from the financial crisis (Pisani, CNBC)
Replies: 52
Views: 4942

Re: Lessons from the financial crisis (Pisani, CNBC)

In 2008 I was working on Wall Street at one of the largest hedge funds in the world. Minimum investment requirements were in the double digit millions, and so the LP investor base was mostly pension funds, endowments, insurance companies and a handful of very high net worth individuals. Between 200...
by Portfolio7
Sat Sep 08, 2018 3:25 pm
Forum: Investing - Theory, News & General
Topic: Lessons from the financial crisis (Pisani, CNBC)
Replies: 52
Views: 4942

Re: Lessons from the financial crisis (Pisani, CNBC)

I don't understand this from the bullet points at the top of the article: "The financial crisis started as what seemed like a minor issue — the failure of the subprime mortgage industry." How is that "a minor issue"? This is how I understand it, but appreciate any pertinant clarifications or correc...
by Portfolio7
Tue Aug 28, 2018 3:22 am
Forum: Investing - Theory, News & General
Topic: Pensions and retirement savings rate
Replies: 30
Views: 2518

Re: Pensions and retirement savings rate

I would not count on the pension at all. Granted it is a gov't pension, but obligations can be reduced in bankruptcy proceedings. My pension is about 10% of what it would have been under the existing terms when I was hired. Try to save enough without it, and let it be the gravy (or the benefit that ...
by Portfolio7
Mon Aug 27, 2018 11:00 pm
Forum: Investing - Theory, News & General
Topic: VMVFX & low volatility performance
Replies: 4
Views: 460

VMVFX & low volatility performance

VMVFX is Vanguard's Global Minimum Volatility Fund, and intrigues me. I don't have time for a full workup and compare, but have pulled this together: VMVFX is about 60% US 40% Foreign per the Vanguard composition detail. It's a World small-midcap fund, per the morningstar category, but the style box...
by Portfolio7
Wed Aug 22, 2018 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: Help with 401K Funds - Employee Fiduciary
Replies: 6
Views: 602

Re: Help with 401K Funds - Employee Fiduciary

My understanding is that EF doesn't allow Vanguard Admiral shares to be used, only investor. If the company hasn't already done the paperwork, they might also want to look at Guideline, which beats EF on employer costs if there are 15 or fewer participants, doesn't charge an AUM fee, and does offer...
by Portfolio7
Tue Aug 21, 2018 9:48 pm
Forum: Investing - Help with Personal Investments
Topic: Help with 401K Funds - Employee Fiduciary
Replies: 6
Views: 602

Re: Help with 401K Funds - Employee Fiduciary

1. The thought process behind these funds... did I miss anything important, either at a fund level, or portfolio construction level? (I waffled on SCV for a number of reasons, may include it in the end.) Couple of thoughts, but if this were a real 401k plan set of choices, it would be better than a...
by Portfolio7
Tue Aug 21, 2018 12:18 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Determining ESG’s Nature
Replies: 10
Views: 650

Re: Larry Swedroe: Determining ESG’s Nature

ESG makes some people feel like they are doing the right thing. Per a list from Schwab, several standard Vanguard funds fare pretty well in overall ESG measures, despite not being designed around it. Imho there's a fair helping of marketing involved in the ESG designation, but there is legitimacy to...
by Portfolio7
Mon Aug 20, 2018 9:17 am
Forum: Investing - Help with Personal Investments
Topic: Help with 401K Funds - Employee Fiduciary
Replies: 6
Views: 602

Re: Help with 401K Funds - Employee Fiduciary

Thanks. I know, the first 20 or so funds are the important ones. The ones after that are not really needed, but I know one of the partners really wants some of those options... so I tried to keep them on a good track.
by Portfolio7
Sun Aug 19, 2018 6:56 pm
Forum: Investing - Help with Personal Investments
Topic: Help with 401K Funds - Employee Fiduciary
Replies: 6
Views: 602

Help with 401K Funds - Employee Fiduciary

I am hoping for some advice and thoughts. DW is a partner in a small business that has a 401K. They are switching to Employee Fiduciary (based to some degree on analysis on 401k program cost compares that I ran, that they then verified.) Now they have to pick 40 funds to offer from the universe of m...
by Portfolio7
Tue Aug 14, 2018 3:20 pm
Forum: Investing - Theory, News & General
Topic: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!
Replies: 1043
Views: 79696

Re: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!

Help me understand something, The purpose of holding international (and bonds) in a 3-fund portfolio is not entirely about maximizing returns, but rather places a premium on stability and insurance against complete collapse. Right? My understanding: Bonds, yes - but I wouldn't describe the internat...
by Portfolio7
Wed Aug 08, 2018 1:56 pm
Forum: Investing - Theory, News & General
Topic: If it were March, 2000, would you still allocate 50% to Stocks?
Replies: 94
Views: 4662

Re: If it were March, 2000, would you still allocate 50% to Stocks?

OP, your example seems to be about someone having all the money they will ever have to invest at one time and deciding when to invest it all. Does that seem realistic to you? Most folks invest over many, many years. How does your scenario work out if someone invests throughout the time period you'r...
by Portfolio7
Mon Aug 06, 2018 4:52 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 21498

Re: "Don't Obsess About Expense Ratios"

+1

I don't get the hoopla over the Fidelity announcement.
by Portfolio7
Mon Aug 06, 2018 11:56 am
Forum: Investing - Theory, News & General
Topic: Bankruptcy rising for older Americans
Replies: 4
Views: 922

Re: Bankruptcy rising for older Americans

AlohaJoe, thanks for the link. I feel a little foolish now for not being a bit more skeptical of the conclusions drawn. :oops:
by Portfolio7
Mon Aug 06, 2018 10:46 am
Forum: Investing - Theory, News & General
Topic: Bankruptcy rising for older Americans
Replies: 4
Views: 922

Bankruptcy rising for older Americans

https://www.nytimes.com/2018/08/05/business/bankruptcy-older-americans.html Bankruptcy rates up 66% for pre-retirees (age 55 to 64). Up 204% for age 65 and over. Usual suspects: Health care, debt, unexpected family burdens, but also student loans for their kids is in the mix. The net is that these f...
by Portfolio7
Fri Aug 03, 2018 6:58 pm
Forum: Personal Consumer Issues
Topic: Touring Singapore in October
Replies: 9
Views: 666

Re: Touring Singapore in October

I have only been there on business, but I really liked visiting Arab Street. Very atmospheric. If the 6 yo is an adventurous eaters, there are a few restaurants... and a McDonalds knock-off about a block away, as I remember! I had Schawarma there, it was great. There is a 'China' area and an 'India'...
by Portfolio7
Fri Aug 03, 2018 6:08 pm
Forum: Local Chapters and Bogleheads Community
Topic: How did you become a Boglehead?
Replies: 53
Views: 3727

Re: How did you become a Boglehead?

I guess I've always been a Boglehead at heart - or maybe 90% of one - all the reading I did led me to the 10 principles independently. I was determined to start saving asap, then investing with low cost index funds. My one experience with a financial analyst only hurried me along the road. When I st...
by Portfolio7
Fri Aug 03, 2018 5:52 pm
Forum: Investing - Theory, News & General
Topic: HELOC
Replies: 20
Views: 1398

Re: HELOC

If it's a no fee and draw HELOC, why not? If bank close it, so let it. The problem comes if they close it AFTER you have used the contents to buy an asset. As long as the asset is liquid, you're fine, but you can't treat it like cash. Then there are behavioral issues that tend to result from having...
by Portfolio7
Fri Aug 03, 2018 12:39 pm
Forum: Investing - Theory, News & General
Topic: 3 Levels of Wealth
Replies: 125
Views: 11905

Re: 3 Levels of Wealth

Great thread. People can also be up or down the 10 point scale. We're 5 or 6 if you look at our assets, but they're all illiquid for one reason or another, including the 401K (at least, I treat it that way.) So we are really at 2 and it will be some time before we have a large pile of cash. What I r...
by Portfolio7
Fri Aug 03, 2018 12:13 pm
Forum: Investing - Theory, News & General
Topic: Treasury Bonds are the Only Bonds You Need
Replies: 188
Views: 19875

Re: Treasury Bonds are the Only Bonds You Need

As a rule, the duration of your bonds should match your investment horizon. If you are more 10 years from retirement, the bulk of your bonds should be intermediate or long-term bonds, not a cash-like pseudo-insurance product like a GIC. I thought that guidance was meant primarily to prevent investm...
by Portfolio7
Fri Aug 03, 2018 12:09 pm
Forum: Investing - Theory, News & General
Topic: Treasury Bonds are the Only Bonds You Need
Replies: 188
Views: 19875

Re: Treasury Bonds are the Only Bonds You Need

As a rule, the duration of your bonds should match your investment horizon. If you are more 10 years from retirement, the bulk of your bonds should be intermediate or long-term bonds, not a cash-like pseudo-insurance product like a GIC. I thought that guidance was meant primarily to prevent investm...
by Portfolio7
Thu Aug 02, 2018 1:56 pm
Forum: Investing - Theory, News & General
Topic: Treasury Bonds are the Only Bonds You Need
Replies: 188
Views: 19875

Re: Treasury Bonds are the Only Bonds You Need

As a rule, the duration of your bonds should match your investment horizon. If you are more 10 years from retirement, the bulk of your bonds should be intermediate or long-term bonds, not a cash-like pseudo-insurance product like a GIC. I thought that guidance was meant primarily to prevent investm...
by Portfolio7
Tue Jul 31, 2018 2:18 pm
Forum: Investing - Theory, News & General
Topic: Are millennials botching their asset allocations?
Replies: 68
Views: 7624

Re: Are millennial botching their asset allocations?

For the most part I stopped subscribing to the belief that there are distinct generational differences between demographic cohorts. In my experience the ratio of aggressive risk-taking investors, risk-averse investors, and people who don't save or invest at all, are roughly the same across all gene...
by Portfolio7
Mon Jul 30, 2018 1:00 pm
Forum: Investing - Theory, News & General
Topic: Developed World Small Cap for more diversification?
Replies: 5
Views: 657

Re: Developed World Small Cap for more diversification?

Yes, but... everything in investing seems to require three hands (on the one hand, OTOH, and there is usually at least a third consideration!) I am a tweaker too. One of the things I'm slowly learning in a visceral manner is that entire markets (& economic conditions) change over time, and the time ...
by Portfolio7
Wed Jul 25, 2018 9:51 pm
Forum: Investing - Theory, News & General
Topic: Best source for simple market news?
Replies: 26
Views: 2243

Re: Best source for simple market news?

Bloomberg.com offers pretty even-handed summaries like that but the new paywall is pretty expensive, and I'm not likely to take the plunge to pay for it, but that's the one column I almost never read. However.... The real question is why do you want it? This type of info, even in the most pristine f...
by Portfolio7
Mon Jul 23, 2018 6:03 pm
Forum: Investing - Theory, News & General
Topic: Are socially responsible funds just another marketing ploy?
Replies: 25
Views: 2214

Re: Are socially responsible funds just another marketing ploy?

Of course, but doesn't mean it doesn't work. My wife wouldn't invest otherwise, so all her (minor investments) are in ESG funds. I carefully omit mentioning how minor their social commitment actually is, so she can feel good imagining her money is hard at work educating orphans, saving whales, and ...
by Portfolio7
Fri Jul 20, 2018 12:39 am
Forum: Investing - Theory, News & General
Topic: The joys of investing
Replies: 23
Views: 2946

Re: The joys of investing

Investing fascinates me. It's like fantasy baseball, but better, you don't have to come in first to win... in fact, doing average is great! But really, every asset class is so much like a baseball player, with different abilities (this one does well during deflation, this other one when interest rat...
by Portfolio7
Thu Jul 19, 2018 2:02 pm
Forum: Investing - Theory, News & General
Topic: I may have understood why it's so hard to save and invest
Replies: 75
Views: 11227

Re: I may have understood why it's so hard to save and invest

I automate contributions, but also track balances and project them. This helps me see the value in the $1500 deposit. In 30 years that's $15K or more. Also, I have savings goals (% of $ earned, $ of income, multiple of expense) that I track in my spreadsheet. Seeing those tick closer to my targets m...
by Portfolio7
Thu Jul 19, 2018 12:52 pm
Forum: Personal Consumer Issues
Topic: Help - Custodian for Employee Fiduciary Transition
Replies: 0
Views: 138

Help - Custodian for Employee Fiduciary Transition

I'm not sure if this is the best place to post my question, so mods, please move as appropriate. My wife's very small firm (she is a partner) is moving to Employee Fiduciary to administer their 401K program (they are fairly generous with their employees for such a small firm.) This is all new to her...
by Portfolio7
Wed Jul 18, 2018 4:07 pm
Forum: Investing - Theory, News & General
Topic: Invest in Tesla?
Replies: 330
Views: 24984

Re: Invest in Tesla?

I love the idea of Tesla, and am kind of a fan, but no way would I own the stock. My sense is that the price implies a decade of success and significant margin growth, beyond a standard car company (and I'm borrowing from some folks I've read here, not doing the math myself.) In any case, it sounds ...
by Portfolio7
Mon Jul 16, 2018 9:59 am
Forum: Investing - Theory, News & General
Topic: Saving 20% of paycheck isn't enough
Replies: 112
Views: 14035

Re: Saving 20% of paycheck isn't enough

Just Ignore it. Most people are laid off before 50 if not earlier and never get back to good jobs. Plan accordingly. Sorry you feel that way David. While he may have an overly pessimistic view. His larger point is valid. Especially in some fields, if you are planing to retire 60+, it would be wise ...
by Portfolio7
Fri Jul 06, 2018 6:41 pm
Forum: Investing - Theory, News & General
Topic: SS taken at 62 vs. 70, but measured from 70+
Replies: 189
Views: 11879

Re: SS taken at 62 vs. 70, but measured from 70+

Ok, so I often hear that delaying social security until 70 vs. taking it early at 62 is often the beneficial thing to do because of the pseudo ~ 8% return that you get on delayed Social Security. In my case, for me to do that, I would have to spend down my portfolio to "buy" the "age 70 SS annuity"...
by Portfolio7
Tue Jul 03, 2018 6:25 pm
Forum: Investing - Theory, News & General
Topic: SS taken at 62 vs. 70, but measured from 70+
Replies: 189
Views: 11879

Re: SS taken at 62 vs. 70, but measured from 70+

Ok, so I often hear that delaying social security until 70 vs. taking it early at 62 is often the beneficial thing to do because of the pseudo ~ 8% return that you get on delayed Social Security. In my case, for me to do that, I would have to spend down my portfolio to "buy" the "age 70 SS annuity"...
by Portfolio7
Sun Jul 01, 2018 8:56 pm
Forum: Investing - Theory, News & General
Topic: What is your one favorite Fidelity Fund??
Replies: 59
Views: 5557

Re: What is your one favorite Fidelity Fund??

I carry fewer and fewer Fidelity funds over time, and I wouldn't recommend the one I do carry, but it works for me. FOCKX slots into my portfolio at 7% of total allocation, and returns have been stellar over the couple years I've owned it. The fees are very high at 70 basis points and I suspect I'm...
by Portfolio7
Sun Jul 01, 2018 5:45 pm
Forum: Investing - Theory, News & General
Topic: What is your one favorite Fidelity Fund??
Replies: 59
Views: 5557

Re: What is your one favorite Fidelity Fund??

I carry fewer and fewer Fidelity funds over time, and I wouldn't recommend the one I do carry, but it works for me. FOCKX slots into my portfolio at 7% of total allocation, and returns have been stellar over the couple years I've owned it. The fees are very high at 70 basis points and I suspect I'm ...
by Portfolio7
Sat Jun 30, 2018 6:45 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 1937
Views: 358453

Re: What are you up YTD? [Year To Date]

0.58% YTD as of the end of June. 70/30. This is a great thread. The longer it goes, the more I feel the pointlessness of it, and the less desire I have to compare to any other returns. Anyways, like Greg Maddux once said to George Will, the past is history (the future is perfect :wink: .)
by Portfolio7
Fri Jun 29, 2018 4:22 pm
Forum: Investing - Theory, News & General
Topic: Is there a way to avoid bad companies in S&P 500?
Replies: 92
Views: 4834

Re: Why would creating an intelligent S&P 475 be so difficult to do?

Not sure if I get the distinction between an intelligent fund and an active fund… ultimately what is the difference between a fund that picks winners and a fund that identifies and omits losers? Both of those are active funds. I don't know what an intelligent fund is, that sounds like marketing.
by Portfolio7
Thu Jun 28, 2018 10:03 pm
Forum: Investing - Theory, News & General
Topic: The cost of reducing portfolio volatility
Replies: 25
Views: 2593

Re: The cost of reducing portfolio volatility

Volatility risk almost always starts and ends with bonds, though some alternatives will perform as well or better for short times, maybe even longer times (but I have no such faith.). I tend to think of volatility risk as a strategic question that is lifecycle dependent, and appreciate any thoughts ...
by Portfolio7
Wed Jun 20, 2018 11:27 pm
Forum: Investing - Theory, News & General
Topic: Is technology the reason for low inflation?
Replies: 57
Views: 3477

Re: Is technology the reason for low inflation?

I don't see how the answer can be anything but a resounding yes. All the fiber-optic cable laid down in the late 1990's that enabled the worldwide scope of the internet also allowed a lot of work to move overseas, with instantaneous communication. Technology also means that companies now require far...
by Portfolio7
Tue Jun 19, 2018 12:56 pm
Forum: Investing - Theory, News & General
Topic: What does it mean: Rule No. 1: Never lose money
Replies: 75
Views: 7209

Re: What does it mean: Rule No. 1: Never lose money

This is my point. People need to understand that fundamental difference between what we are doing and what Buffett does. I think this is a good point. It was never my intent when originally posting to suggest that we all should be following Buffett's investment advice. I was trying to understand so...
by Portfolio7
Tue Jun 19, 2018 9:12 am
Forum: Investing - Theory, News & General
Topic: Why do we need 529?
Replies: 42
Views: 4327

Re: Why do we need 529?

Another reason to go Roth IRA is potentially better control over your investments. In any case, the hard part for us was funding it. Our money went to retirement savings, and monetary gifts to the boys went to the 529. The latter ended up woefully insufficient; in retrospect we would have been wiser...
by Portfolio7
Mon Jun 18, 2018 5:22 pm
Forum: Investing - Theory, News & General
Topic: What does it mean: Rule No. 1: Never lose money
Replies: 75
Views: 7209

Re: What does it mean: Rule No. 1: Never lose money

"Never Lose Money" Actionable? Tangible? j A large number of posts suggest this comment is largely about managing risk in several forms. A Boglehead perspective would recognize several tools we use to do so: - Using Index Funds where possible - Rebalancing periodically - Avoiding the purchase of in...
by Portfolio7
Mon Jun 18, 2018 4:54 pm
Forum: Investing - Theory, News & General
Topic: What does it mean: Rule No. 1: Never lose money
Replies: 75
Views: 7209

Re: What does it mean: Rule No. 1: Never lose money

nisiprius wrote:
Mon Jun 18, 2018 3:26 pm
Rule #1: Nobody actually knows what Buffett means by many of the things he says.
Rule #2: never forget rule #1.
;-) Now that there was funny, I don't care who ya are! Thanks for the laugh!
by Portfolio7
Mon Jun 18, 2018 3:24 pm
Forum: Investing - Theory, News & General
Topic: What does it mean: Rule No. 1: Never lose money
Replies: 75
Views: 7209

Re: What does it mean: Rule No. 1: Never lose money

I'm not so willing to entirely discount anything WB attaches importance to, and he repeats this 'rule' with gusto in the recent biographic documentary. In simpler terms, I think he meant to be "risk averse", (rather than "loss averse"). The latter term is the more common understanding of the words ...
by Portfolio7
Mon Jun 18, 2018 2:21 pm
Forum: Investing - Theory, News & General
Topic: What does it mean: Rule No. 1: Never lose money
Replies: 75
Views: 7209

Re: What does it mean: Rule No. 1: Never lose money

I'm not so willing to entirely discount anything WB attaches importance to, and he repeats this 'rule' with gusto in the recent biographic documentary. In simpler terms, I think he meant to be "risk averse", (rather than "loss averse"). The latter term is the more common understanding of the words h...
by Portfolio7
Mon Jun 18, 2018 12:28 pm
Forum: Investing - Theory, News & General
Topic: What does it mean: Rule No. 1: Never lose money
Replies: 75
Views: 7209

What does it mean: Rule No. 1: Never lose money

I recently ran across a screed from Charlie Bilello (post: https://pensionpartners.com/the-1-rule-in-investing/) attacking Warren Buffett's well known credo "Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1." I realized I think of this differently than I used to. I once thought more...
by Portfolio7
Sun Jun 17, 2018 9:18 pm
Forum: Investing - Theory, News & General
Topic: Very confused with the current market
Replies: 112
Views: 12886

Re: Very confused with the current market

- It has been history higher and higher. - the fundamental law says it will recycle every 10 years - I had been on cash for 10 months Please don't tell me I should not time the market. What's going wrong? For every complex problem there is an answer that is clear, simple, and wrong. (Mencken) There...