Search found 22 matches

by muffins14
Wed Sep 11, 2019 10:16 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area budget for $350k family income
Replies: 94
Views: 6702

Re: Bay Area budget for $350k family income

Really boggles my mind that $4500 a month is what someone considers reasonable for daycare/preschool
by muffins14
Mon Sep 09, 2019 8:02 pm
Forum: Investing - Theory, News & General
Topic: Diversifying Across Factors - 2 Questions
Replies: 47
Views: 1695

Re: Diversifying Across Factors - 2 Questions

You could likely say that a multi-factor fund has the goal of "diversifying across factors". Specifically I'd interpret the term "diversified across factors" to mean your portfolio has a statistically-significant loading on a factor other than market beta, so market + small, or market+small+value lo...
by muffins14
Tue Aug 27, 2019 2:40 pm
Forum: Investing - Theory, News & General
Topic: Best of Bogleheads - your #1 takeaway
Replies: 147
Views: 12934

Re: Best of Bogleheads - your #1 takeaway

Becoming informed of the existence of the mega-backdoor Roth
by muffins14
Tue Aug 27, 2019 10:47 am
Forum: Investing - Theory, News & General
Topic: "Factors" and language misuse
Replies: 71
Views: 3626

Re: "Factors" and language misuse

I feel like this thread makes the conversation more muddy rather than more clear, and is slipping into language misuse by discussing analogies and judgements rather than just a mathematical explanation. The most helpful summary I've seen recently is the post by vineviz https://www.bogleheads.org/for...
by muffins14
Mon Aug 26, 2019 8:09 pm
Forum: Investing - Theory, News & General
Topic: [Larry Swedroe: Small Value Stocks are Cheap, Factor Investing Works]
Replies: 673
Views: 25293

Re: [Larry Swedroe: Small Value Stocks are Cheap, Factor Investing Works]

I was never defining diversification as the number of stocks as alleged, and merely pointing out that factor funds are missing/avoiding/shorting and or omitting (however you want me to say it) stocks with certain characteristics. And then calling that diversification for good measure. Nice! If you ...
by muffins14
Mon Aug 26, 2019 7:52 pm
Forum: Investing - Theory, News & General
Topic: [Larry Swedroe: Small Value Stocks are Cheap, Factor Investing Works]
Replies: 673
Views: 25293

Re: [Larry Swedroe: Small Value Stocks are Cheap, Factor Investing Works]

So the factor proponents claim of being more diversified is only true if H actually outperforms in your holding period. Since it may or may not depending on your holding period, I call it a bogus claim. You may have more exposure to the drivers of return by tilting to some factor or you may have le...
by muffins14
Mon Aug 26, 2019 11:21 am
Forum: Investing - Theory, News & General
Topic: [Larry Swedroe: Small Value Stocks are Cheap, Factor Investing Works]
Replies: 673
Views: 25293

Re: [Larry Swedroe: Small Value Stocks are Cheap, Factor Investing Works]

Correct. If value outperforms growth (or vice versa), a TSM investor does not benefit at all because they are holding equal amounts of both value and growth. I would mostly agree, but would say the reason they are "equal amounts" is because they hold zero exposure to the value factor and zero expos...
by muffins14
Mon Aug 26, 2019 11:06 am
Forum: Investing - Theory, News & General
Topic: [Larry Swedroe: Small Value Stocks are Cheap, Factor Investing Works]
Replies: 673
Views: 25293

Re: [Larry Swedroe: Small Value Stocks are Cheap, Factor Investing Works]

That is your opinion, not a fact. It's my opinion that Taylor is intelligent. It is a fact that the statement "TSM is exposed to all factors" is incorrect. Is there a dictionary that defines the term "factor exposure"? Because you have to realize that the confusion comes from the term "exposure". I...
by muffins14
Tue Aug 13, 2019 1:16 pm
Forum: Personal Consumer Issues
Topic: Is this 25% savings?
Replies: 67
Views: 4938

Re: Is this 25% savings?

As others have said, you’re thinking about it the right way.

Imagine the sale price was $100 instead of $160; you wouldn’t advertise it as 100% savings just because the original price is 100% more than the sale price of $100
by muffins14
Wed Jul 17, 2019 11:28 am
Forum: Investing - Theory, News & General
Topic: VFMF (Vanguard Multifactor) == Closet Value Index Fund
Replies: 70
Views: 6885

Re: VFMF (Vanguard Multifactor) == Closet Value Index Fund

No resource at my fingertips now, but I believe credit is to measure the premium of lower-credit bonds over higher-credit bonds, and term is to measure the premium of longer-term bonds over shorter-term bonds. In the case of a portfolio without bonds I don't think it would make sense to include thos...
by muffins14
Wed Jul 17, 2019 10:54 am
Forum: Investing - Theory, News & General
Topic: VFMF (Vanguard Multifactor) == Closet Value Index Fund
Replies: 70
Views: 6885

Re: VFMF (Vanguard Multifactor) == Closet Value Index Fund

Since this is an equity-only fund, it would be more appropriate to only use the equity factors (and exclude Term and Credit) Re-running the regression there and using daily returns, one finds that USMF has statistically significant loadings on market, size, and BAB. It does result in positive alpha,...
by muffins14
Sat Jul 06, 2019 7:06 pm
Forum: Investing - Theory, News & General
Topic: No More Posts Of Larry Swedroe Essays [by Random Walker]
Replies: 64
Views: 6662

Re: No More Posts Of Larry Swedroe Essays

Ah yes, I would hate to have multiple viewpoints and informed research.
by muffins14
Fri Jul 05, 2019 4:51 pm
Forum: Investing - Theory, News & General
Topic: VFMF (Vanguard Multifactor) == Closet Value Index Fund
Replies: 70
Views: 6885

Re: VFMF (Vanguard Multifactor) == Closet Value Index Fund

I haven't seen a detailed paper, but there is a single bullet point in the product brief here https://advisors.vanguard.com/iwe/pdf/FASFAMF.pdf that leads me to think it's an average of each of the factor scores that make up the other funds (Value, Quality, Momentum). However it's not exactly clear ...
by muffins14
Thu Jun 27, 2019 9:22 am
Forum: Investing - Theory, News & General
Topic: Multi-factor funds: are more factors really better?
Replies: 25
Views: 2686

Re: Multi-factor funds: are more factors really better?

Now show me an equivalent for two multifactor funds that are reasonably comparable with each other. Not an expert here at all, but isn't this the reason to run a factor regression, then compare the residual alpha of the two funds? If two multi-factor funds have the same factor loadings, but one und...
by muffins14
Wed Jun 26, 2019 2:26 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: How Trading Costs Erode Factor Returns
Replies: 43
Views: 4486

Re: Turnover of Factor Funds?

Taylor The following statement is simply not true, not even close to being true Nearly all factor funds have annual turnover exceeding 100%. Larry: According to Factor Research, this is the average annual turnover of various factor funds: Value 298% Size 156% Momentum 704% Low Volatility 230% Quali...
by muffins14
Sat Jun 22, 2019 1:55 pm
Forum: Investing - Theory, News & General
Topic: Small Value vs Multifactor
Replies: 58
Views: 4994

Re: Small Value vs Multifactor

At what level would you say you’re concerned with negative alpha, given that VFMF currently does have negative alpha? How much data across what type of markets would you need to be confident in the regression for a new fund like VFMF that doesn’t have stated factor load targets? That's a good quest...
by muffins14
Sat Jun 22, 2019 12:40 pm
Forum: Investing - Theory, News & General
Topic: Small Value vs Multifactor
Replies: 58
Views: 4994

Re: Small Value vs Multifactor

Would that make IJS the better choice for factor exposure? "Better" is a dangerous word. ;) Depends on your goals and preferences. If I were just picking one US equity funds, I'd probably choose VFMF. The factor exposures are somewhat more balanced than IJS/SLYV/VIOV (i.e. it has somewhat better di...
by muffins14
Mon Jun 17, 2019 10:42 am
Forum: Personal Finance (Not Investing)
Topic: Capital One will only send security notices if you let them spy on you once in a while
Replies: 46
Views: 3273

Re: Capital One will only send security notices if you let them spy on you once in a while

The cost of sending an email message is almost nothing (just ask spammers). [...] That's just a terrible idea, and I doubt this decision came from their tech department, it came from their marketing department. Eh, it likely came from the legal/policy department in consideration of anti-spam laws. ...
by muffins14
Fri May 17, 2019 7:39 pm
Forum: Personal Investments
Topic: Taxes and suggested Fidelity 3 fund portfolio
Replies: 11
Views: 1212

Re: Taxes and suggested Fidelity 3 fund portfolio

Worth noting that FSPSX only contains developed markets, and if that’s important to you, you could check out FTIHX for emerging market inclusion
by muffins14
Thu May 02, 2019 10:33 am
Forum: Personal Finance (Not Investing)
Topic: Giving two week's notice before stock options vest
Replies: 91
Views: 6611

Re: Giving two week's notice before stock options vest

I agree with the thought that you should have negotiated this ahead of time. If you felt that the $20k was important, you could have negotiated the start date accordingly to give your notice and receive the options. It's not uncommon in this tech hiring market for people to have even 2-3 months in b...
by muffins14
Thu Dec 08, 2016 11:55 am
Forum: Personal Finance (Not Investing)
Topic: HELP: salary negotiation
Replies: 17
Views: 3077

Re: HELP: salary negotiation

The advice from Tal- here is spot on in terms of phrasing the ask, if you're actually ready to say yes in the case they match your request.

Another great read is here:

http://haseebq.com/my-ten-rules-for-neg ... job-offer/
by muffins14
Wed Oct 26, 2016 4:18 am
Forum: Personal Finance (Not Investing)
Topic: Got Chase sapphire reserve credit card. Can I close C S preferred
Replies: 16
Views: 3673

Re: Got Chase sapphire reserve credit card. Can I close C S preferred

Just went through the same process myself. Upon calling Chase to cancel the preferred card, they offered to transfer the line of credit on the preferred card onto the reserve, so I didn't lose any spending power. Perhaps that results in some imperceptible credit score benefit by keeping a higher tot...