Search found 3402 matches

by Beagler
Mon Sep 09, 2013 9:35 am
Forum: Investing - Theory, News & General
Topic: Lessons From The Recession (AARP)
Replies: 21
Views: 3415

Re: Lessons From The Recession (AARP)

When a reverse mortgage is being processed, isn't the house viewed as an asset from the viewpoint of the underwriter? Things can serve different functions to different people, just as they can have different dollar values to different people (that being the basis of trade). Just because a house is shelter for the owner does not make it shelter for the underwriter. Just because it is an asset to the underwriter does not make it an asset to the owner. Interesting perspective. I see it as an asset (anything owned that has exchange value), even though it's not what I consider an investment (something which I hope will increase in value). "An asset is anything of value that can be converted into cash. Assets are owned by individuals, busin...
by Beagler
Mon Sep 09, 2013 8:18 am
Forum: Investing - Theory, News & General
Topic: Lessons From The Recession (AARP)
Replies: 21
Views: 3415

Re: Lessons From The Recession (AARP)

When a reverse mortgage is being processed, isn't the house viewed as an asset from the viewpoint of the underwriter?
by Beagler
Sun Sep 08, 2013 2:16 pm
Forum: Investing - Theory, News & General
Topic: QUESTIONS FOR Q&A WITH JACK BOGLE
Replies: 36
Views: 8180

Re: QUESTIONS FOR Q&A WITH JACK BOGLE

Question for Mr. Bogle;

Sir, would you please expound on your thoughts on an investor's expected future Social Security payments as they might affect the asset allocation of a pre-retiree. Does it affect the "age in bonds" rule of thumb?

Thank you, Mr. Bogle, for your untiring work on behalf of the average investor.
by Beagler
Sun Sep 08, 2013 1:55 pm
Forum: Investing - Theory, News & General
Topic: YOUR QUESTIONS FOR THE EXPERTS PANEL
Replies: 63
Views: 11556

Re: YOUR QUESTIONS FOR THE EXPERTS PANEL

For investors with mostly taxable accounts, how do you view the challenges of the muni bond market?
by Beagler
Wed Sep 04, 2013 8:40 pm
Forum: Investing - Theory, News & General
Topic: "Social Security is not an asset"
Replies: 50
Views: 5636

Re: "Social Security is not an asset"

Professor Emeritus wrote:...Ab bond that can default is an asset...
Teh column wousl have been more intelligent....
You might want to make some corrections.
by Beagler
Tue Sep 03, 2013 3:33 pm
Forum: Investing - Theory, News & General
Topic: madsinger monthly report (August 2013)
Replies: 12
Views: 2359

Re: madsinger monthly report (August 2013)

Mel Lindauer wrote:
Beagler wrote:Nice to see Wellington continue to best the 3-fund portfolio. :D
And nice to see my I Bonds whipping Wellington and the entire batch (at least for the month)! :-)
You can keep the 1-month returns. I'll keep the CAGR from 1999 forward. :D

(As a long-term Wellington shareholder, I figure if it's good enough for Mr. Bogle, then it's good enough for me :happy )
by Beagler
Tue Sep 03, 2013 12:23 pm
Forum: Investing - Theory, News & General
Topic: It’s the income, stupid!
Replies: 139
Views: 24696

Re: It’s the income, stupid!

From one of the above-quoted links: " In my review of the historical record, I could only find a few cases where annuity owners ended up with less than their insurer promised. One resulted from the 1983 bankruptcy of Baldwin-United, which involved a takeover by MetLife and a court-ordered reduction in benefits. Another involved the 1991 failure of Executive Life, which continued to pay annuity benefits in state-managed rehabilitation mode until this year, when balance sheet deterioration led to liquidation. Going forward, owners of Executive Life annuities that exceed state guaranty caps will suffer losses." If the insurance safety net is so robust, why have there been *any* losses? Also, note that State guarantees seem relatively...
by Beagler
Tue Sep 03, 2013 10:15 am
Forum: Investing - Theory, News & General
Topic: madsinger monthly report (August 2013)
Replies: 12
Views: 2359

Re: madsinger monthly report (August 2013)

Nice to see Wellington continue to best the 3-fund portfolio. :D
by Beagler
Tue Sep 03, 2013 9:36 am
Forum: Investing - Theory, News & General
Topic: It’s the income, stupid!
Replies: 139
Views: 24696

Re: It’s the income, stupid!

I always recall the following when contemplating using insurance products for part of the income floor: ... I take zero, absolutely zero, comfort that few insurance companies have failed thus far, just as the wise person took should have taken no comfort about the security of the United States on December 6 1941 or September 10, 2001. I have always believed that there are risky assets, which have high returns, and riskless ones, which have low returns, and that investors should deploy both. I just don't consider SPIA's, in the absence of a federal guarantee, to be in the latter category. Best, Bill While the state guarantees would be useful with an isolated failure, in a severe systemic crisis they wouldn't even be a speed bump. Bill http:/...
by Beagler
Tue Sep 03, 2013 8:26 am
Forum: Investing - Theory, News & General
Topic: More international in target funds generally
Replies: 9
Views: 1354

Re: More international in target funds generally

Why is anyone surprised that VG would change the asset allocation of its TR Funds? Aren't they aware of the major shifts in allocation just a few years into their inception?

http://www.marketwatch.com/story/target ... -their-aim
by Beagler
Mon Sep 02, 2013 9:01 pm
Forum: Personal Investments
Topic: Retiring in 3 years and sitting on 85% cash since 2008
Replies: 75
Views: 10462

Re: Retiring in 3 years and sitting on 85% cash since 2008

First post, great site! I am going to leave the grindstone in 3 years max. Liquidated 90% of my equities assets after recovering most of my 2007-09 losses. Back in 2007-08, I was 90% equities. Ouch... Learned my lesson the hard way. Even had 75% of that sizeable money with high paid "professionals" that I realize now, do not have a clue.... TRUTH. Anyway (wounds licked and moving on), even though my cash is all in MM or various worthless bank accounts not making squat (actually losing due to inflation), I am ok with that. My question: What are other Bogleheads in my similar position doing? Mostly cash and wondering what to do next and when??? Thanks Slipp 1. At the very top of this forum there is post titled Asking Portfolio Ques...
by Beagler
Thu Aug 29, 2013 11:54 pm
Forum: Investing - Theory, News & General
Topic: Should retirement portfolios tilt toward dividend stocks?
Replies: 27
Views: 4121

Re: Should retirement portfolios tilt toward dividend stocks

A Boglehead recently wrote that he feels 'income subject to market price risk is not the foundation for a sustainable retirement strategy.'
by Beagler
Thu Aug 29, 2013 11:49 pm
Forum: Investing - Theory, News & General
Topic: One More "Don't Buy This Book" from Bill Bernstein
Replies: 73
Views: 19050

Re: One More "Don't Buy This Book" from Bill Bernstein

Bill, love your writing style, but this is pretty brazen. :wink:
by Beagler
Thu Aug 29, 2013 11:44 pm
Forum: Investing - Theory, News & General
Topic: the state of unfunded state pension obligations
Replies: 90
Views: 9372

Re: the state of unfunded state pension obligations

The intelligent way to deal with my pension is to pay it.... When the jockey weighs more than the horse, the ride becomes untenable. ...Certainly the obligation to me is equitably "senior" to any bondholder who loaned the state money knowing of the obligation to retirees..... Each State has its own bankruptcy rules re: repayment seniority. And we'll see if State law trumps Federal, where judges have great leverage in unwinding obligations. All of this dovetails with muni rates: if some States are perceived as riskier, investors will demand a higher premium, of course. Underfunding is not rare, and has obvious potential implications for muni bond investors. http://finance.yahoo.com/news/nine-states-with-sinking-pensions.html
by Beagler
Thu Aug 29, 2013 8:59 am
Forum: Investing - Theory, News & General
Topic: the state of unfunded state pension obligations
Replies: 90
Views: 9372

Re: the state of unfunded state pension obligations

Professor Emeritus wrote: The intelligent way to deal with my pension is to pay it....
When the jockey weighs more than the horse, the ride becomes untenable.
by Beagler
Mon Aug 26, 2013 5:47 pm
Forum: Investing - Theory, News & General
Topic: It’s the income, stupid!
Replies: 139
Views: 24696

Re: It’s the income, stupid!

bobcat2 wrote:
The DC industry has been shifting its efforts to a more outcome-oriented approach, in which workers are asked to create retirement plans with the assistance of online tools and other resources which help to determine the retirement nest egg they need.....
Link to article - http://www.dfaus.com/pdf/IgnitesManaged ... EPRINT.pdf

BobK
From the article: "In all fairness, there are a number of concerns regarding relatively low managed account adoption due to program fees and the level of customization that can be attained with limited participant inputs."
Hmmm, let's hear more about those fees.
by Beagler
Sun Aug 18, 2013 10:18 pm
Forum: Investing - Theory, News & General
Topic: Time to abandon a global portfolio?
Replies: 21
Views: 3749

Re: Time to abandon a global portfolio?

pop77 wrote:
Pop77, this paper does nothing but state the obvious. What new information did you learn from this?
...The chart on page 2 is golden. I am going to print it and stick it at my desk....
The Callen table has been much-discussed on this forum. No sense in re-inventing the wheel. :happy

http://bit.ly/18ECkUZ
by Beagler
Sun Aug 18, 2013 4:55 pm
Forum: Investing - Theory, News & General
Topic: Time to abandon a global portfolio?
Replies: 21
Views: 3749

Re: Time to abandon a global portfolio?

pop77 wrote:
Much needed reassurance for many on this forum....
Reassurance is NOT synonymous with reinforcement.
by Beagler
Sun Aug 18, 2013 12:26 pm
Forum: Investing - Theory, News & General
Topic: Purple Chips book - the royal blue chip stocks
Replies: 16
Views: 2520

Re: Purple Chips book - the royal blue chip stocks

SpaceCommander wrote:... That's why you can't hardly ever pick up those stocks on sale....
You're right. Recalling the post-9/11 stock market dips, IIRC did provide a buying opportunity: XOM went from $41.24 to $35.83; JNJ dropped from $55.82 that month down to $52.24; KO dropped a little from $25.10 to $23.40.
(Efficient market? :happy )
by Beagler
Sun Aug 18, 2013 12:11 pm
Forum: Investing - Theory, News & General
Topic: Twenty year anniversary - Fama-French paper
Replies: 18
Views: 2589

Re: Twenty year anniversary - Fama-French paper

Morningstar lists 2/19/1993 as the first trade date for DFA Large Cap Value (DFLVX). (Open to correction if others have a more accurate date.)
by Beagler
Mon Aug 12, 2013 12:07 pm
Forum: Investing - Theory, News & General
Topic: The Reformed Broker- "Memo to the Passive Investing Taliban"
Replies: 28
Views: 5107

Re: The Reformed Broker- "Memo to the Passive Investing Tali

"Graham having done so on his death bed in 1976..." A little dramatic, huh?
by Beagler
Sun Aug 11, 2013 4:17 pm
Forum: Personal Investments
Topic: TD Ameritrade Reviews?
Replies: 31
Views: 17169

Re: TD Ameritrade Reviews?

FWIW, didn't VG "recommend" them when they expunged all but the largest 401(k) plans from working directly with VG?
by Beagler
Sun Aug 11, 2013 4:04 pm
Forum: Investing - Theory, News & General
Topic: Why must 401Ks be company specific?
Replies: 27
Views: 3046

Re: Why must 401Ks be company specific?

Or, just raise the tax advantaged retirement contribution limit to a total of $23,000 a year for any combination of roth, traditional IRA, or 401K. Simple. Yes. I thought of simply quadrupling the IRA limits. With 40(k)s there is the issue of employer contributions. Some employers make none, some make matching contributions, and some make contributions as a sort of DC pension plan, in lieu of the DB plans they no longer have. Keith Since the current IRA contribution limit is $6,500 (including catchup) and the current 401(k) contribution limit is $23,000 (including catchup), I think they should raise the limit to a total of $29,500. Great point. Think of the fees that investors would save by eschewing the high-fee plans at workplaces and sh...
by Beagler
Sun Aug 11, 2013 3:47 pm
Forum: Investing - Theory, News & General
Topic: Inflation Bonds - Convince Me - Yes or No!
Replies: 61
Views: 8367

Re: Inflation Bonds - Convince Me - Yes or No!

With I Bonds you won't ever lose principal. What are your thoughts on those?
by Beagler
Sat Aug 10, 2013 12:52 pm
Forum: Investing - Theory, News & General
Topic: Article regarding DFA's addition of Profitability screen
Replies: 28
Views: 4069

Re: Article regarding DFA's addition of Profitability screen

Here is a brief article consistent with some of the research/news that Larry Swedroe has presented in the past few months. DFA is adding this factor. Sweeping changes under way at DFA "Thanks to a breakthrough in asset-pricing research last year, DFA is adding a third layer of screening to its equity portfolios, which already tilt toward small and value stocks. The new layer, or dimension, focuses on a company's persistence of profitability — basically a stock's ability to earn a profit consistently." http://www.investmentnews.com/article/20130807/FREE/130809943 It should not surprise investors that cap-weighting might not be the be-all, end-all of investing. Are there other rational options other than cap-weighting? You beta bel...
by Beagler
Sat Aug 10, 2013 12:49 pm
Forum: Investing - Theory, News & General
Topic: Article regarding DFA's addition of Profitability screen
Replies: 28
Views: 4069

Re: Article regarding DFA's addition of Profitability screen

alec wrote:
Ranger wrote:What i don't understand is that Benjamin Graham taught and used gross profitability extensively. Why such a basic factor is a recent phenomenon is puzzling to me.
And buffet was a disciple of Graham. :oops:
Was? Has he passed away?
by Beagler
Thu Aug 08, 2013 8:19 pm
Forum: Investing - Theory, News & General
Topic: For munis, bond fund or ladder
Replies: 116
Views: 15940

Re: For munis, bond fund or ladder

It's kind of surreal to read a thread where Larry is acknowledging the value of active management of a fixed income portfolio.
by Beagler
Tue Aug 06, 2013 5:51 am
Forum: Investing - Theory, News & General
Topic: madsinger monthly report (July 2013)
Replies: 7
Views: 1402

Re: madsinger monthly report (July 2013)

Thanks for the update.

Wellington beats 3-fund portfolio going back to 1999? Nice.
by Beagler
Sun Aug 04, 2013 6:08 pm
Forum: Investing - Theory, News & General
Topic: David Swensen lazy portfolio critique?
Replies: 16
Views: 4292

Re: David Swenson lazy portfolio critique?

spotty_dog wrote:You'll note that the pie chart says REAL ESTATE, not REIT. It's my understanding that in his book Swensen lays out his reasons for emphasizing that asset class so highly, and that he specifies either direct Real Estate holdings or TIAA-CREF Real Estate Account holdings for this portion of the portfolio.
You're right, it is important to keep in mind that the VG REIT fund owns not a single piece of real estate.
by Beagler
Fri Aug 02, 2013 11:17 am
Forum: Investing - Theory, News & General
Topic: Scott Adams on Active Managers
Replies: 29
Views: 3735

Re: Scott Adams on Active Managers

Will Vanguard be closing and liquidating those active funds names Wellington and Wellesley?
by Beagler
Thu Jul 25, 2013 12:12 pm
Forum: Investing - Theory, News & General
Topic: how best to diversify
Replies: 8
Views: 2138

Re: how best to diversify

Investing is boring wrote:Interesting theory. But how would a retail investor who refuses to pay the high fee's for DFA advisors access these factor? Further, how would one monitor these factors to maintain a balance? Seems like it is all theory without practical implementation advice.
A competent advisor is there to monitor and help guide the investor who feels they need help, right? Plenty of investor choose to go it alone. Others feel they benefit from advice. There's no "one size fits all."
by Beagler
Sat Jul 20, 2013 12:29 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle's investments
Replies: 24
Views: 4359

Re: Jack Bogle's investments

Think about it... Mr. Bogle has enjoyed a "significant" amount of success, the goal being "enough". He has spent his life sharing his good fortune with charitable organizations, his family and all of us who are the OWNERS of Vanguard :D Not really. (When was the last time you received a Vanguard voting proxy?) "Vanguard CEO Bill McNab sticks to the technical, legal definition of The Vanguard Group as a private company: 'When we say we are shareholder owned, it's more metaphorically than technically from a legal standpoint. Because the shareholders actually own shares in the funds and then the funds own us. It's a great way to live.'"  The House that Bogle Built, p. 171. Is this something to worry about? As VG'...
by Beagler
Sat Jul 20, 2013 9:18 am
Forum: Investing - Theory, News & General
Topic: Jack Bogle's investments
Replies: 24
Views: 4359

Re: Jack Bogle's investments

convert949 wrote:Think about it... Mr. Bogle has enjoyed a "significant" amount of success, the goal being "enough". He has spent his life sharing his good fortune with charitable organizations, his family and all of us who are the OWNERS of Vanguard :D
Not really. (When was the last time you received a Vanguard voting proxy?)

"Vanguard CEO Bill McNab sticks to the technical, legal definition of The Vanguard Group as a private company: 'When we say we are shareholder owned, it's more metaphorically than technically from a legal standpoint. Because the shareholders actually own shares in the funds and then the funds own us. It's a great way to live.'"  The House that Bogle Built, p. 171.
by Beagler
Fri Jul 19, 2013 11:42 am
Forum: Investing - Theory, News & General
Topic: Detroit to default on $2.5B of debt
Replies: 63
Views: 10672

Re: Detroit to default on $2.5B of debt

"There's no reason for a bondholder to feel like there's any type of security" when investing in Detroit bonds, said Dan Solender, director of municipal-bond management at investment firm Lord Abbett & Co., which owns some Detroit bonds. http://finance.yahoo.com/news/detroit-bankruptcy-sets-creditor-battle-005500133.html As a conservative investor, I would steer far clear of any such bonds, no matter who the insurer. The problem is the infectious nature of this..how much fear it spreads to other larger cities..people don't think in vacuum when investing,,they will develop a mindset I should stay away from all muni bonds now for a long spell..especially if this drags on in the news for several years with being sued and legal f...
by Beagler
Fri Jul 19, 2013 11:36 am
Forum: Investing - Theory, News & General
Topic: Jack Bogle's investments
Replies: 24
Views: 4359

Re: Jack Bogle's investments

From the article: "My retirement accounts are more like a 50-50 split between stocks and bonds, because of a longer time horizon and because yields on bonds are extremely unattractive right now. The equity side is mostly in Total Stock Market Index (VTSMX), but I still have a little bit in the Wellington Fund (VWELX), which I've been investing in for many decades. I don't ever want to sever that relationship. Bonds in my retirement accounts are about 30 percent Treasuries and 70 percent investment-grade corporates, like the Vanguard Intermediate-Term Corporate Bond Index (VICBX)."

Interesting to see his retirement account bonds breakdown. Also, his attachment to Wellington Fund is understandable.
by Beagler
Fri Jul 19, 2013 11:25 am
Forum: Investing - Theory, News & General
Topic: Detroit to default on $2.5B of debt
Replies: 63
Views: 10672

Re: Detroit to default on $2.5B of debt

"There's no reason for a bondholder to feel like there's any type of security" when investing in Detroit bonds, said Dan Solender, director of municipal-bond management at investment firm Lord Abbett & Co., which owns some Detroit bonds.
http://finance.yahoo.com/news/detroit-b ... 00133.html

As a conservative investor, I would steer far clear of any such bonds, no matter who the insurer.
by Beagler
Wed Jul 17, 2013 8:58 pm
Forum: Investing - Theory, News & General
Topic: [Sad news - Pat Larimore]
Replies: 225
Views: 26689

Re: [Sad news - Pat Larimore]

Deepest condolences to Taylor and his family. May all of your good memories help to sustain you during this difficult time.
by Beagler
Mon Jul 15, 2013 5:40 am
Forum: Investing - Theory, News & General
Topic: Cap-weighted funds
Replies: 18
Views: 1709

Re: Cap-weighted funds

Enron proves your point.
by Beagler
Fri Jul 05, 2013 8:05 pm
Forum: Investing - Theory, News & General
Topic: Best Stories about meeting Jack Bogle
Replies: 7
Views: 2505

Re: Best Stories about meeting Jack Bogle

Mr. Bogle signed a book for me at an event at which he was speaking. He was distinguished, gracious, and his personality magnetic. I wish the world had more like him.
by Beagler
Thu Jul 04, 2013 2:36 pm
Forum: Investing - Theory, News & General
Topic: Sell-Off Risk in Bond Funds
Replies: 56
Views: 6888

Re: Sell-Off Risk in Bond Funds

richard wrote: ...other than one or two cases in which Vanguard bet wrong on interest rates, I can't remember a Vanguard stock or bond fund diverging significantly from its benchmark, including in 2008.

The 2002 TBM debacle comes to mind. http://www.sec.gov/Archives/edgar/data/ ... inprog.txt
by Beagler
Sat Jun 22, 2013 3:34 pm
Forum: Investing - Theory, News & General
Topic: Do you own Detroit municipal bonds?
Replies: 10
Views: 1802

Do you own Detroit municipal bonds?

“It definitely sets a precedent, and there’s definitely going to be a penalty going forward for the city and the state,” said Dan Solender, director of munis at Lord Abbett & Co. in Jersey City, New Jersey. The company oversees $19.5 billion of local debt.

http://www.bloomberg.com/news/2013-06-1 ... nings.html

Is anyone a bit more jittery about holding muni's?
by Beagler
Sat Jun 22, 2013 8:17 am
Forum: Investing - Theory, News & General
Topic: Why is the Market having a major sell off?
Replies: 121
Views: 12249

Re: Why is the Market having a major sell off?

zakinov wrote:What i don't understand is, Bernake said yesterday that the tapering will not begin until unemployment reaches 6.5%, among other criteria. He said strictly this is a threshold, and the stimulus will continue unchanged until that point.

So why is there a major sell off, when no bad news was given? What's actually going to happen when the tapering does begin?
Perhaps because investors realize that the price of borrowed money will be be set by the market to correlate with risk, and not be distorted by central bank intervention.
by Beagler
Wed Jun 19, 2013 12:19 pm
Forum: Investing - Theory, News & General
Topic: advantage over Wall Street: the long term vantage
Replies: 2
Views: 541

advantage over Wall Street: the long term vantage

"The irony is that while Wall Street has more information than you, its short time horizon forces it to deal with more randomness than you have to. That's your edge. And it's why any bumpkin who buys an index fund and forgets about it will beat the vast majority of professional money managers over time. "

http://www.fool.com/investing/general/2 ... treet.aspx
by Beagler
Sun Jun 16, 2013 6:38 pm
Forum: Investing - Theory, News & General
Topic: Christine Benz interviews T. Rowe Price finan. planner
Replies: 2
Views: 1037

Christine Benz interviews T. Rowe Price finan. planner

Benz: Let's talk about the challenging environment that retirees are facing, and specifically the conundrums, the multiple issues created by very low yields currently. I'd like to look at annuities, start there, because historically they have been sort of standard planning advice for people getting ready to retire. The single premium immediate annuities that I know a lot of planners like you recommend have relatively low payouts at this point. So, does that mean that they shouldn't be part of retirees' toolkits? Fahlund : No, I don't think so. Maybe not the single premium annuity right now, because of the very low rate. But certainly tax-deferred annuities, variable annuities, you'd have the option to go with equities, heavily into equitie...
by Beagler
Sun Jun 16, 2013 5:32 pm
Forum: Investing - Theory, News & General
Topic: An analysis my colleague did on high yield
Replies: 52
Views: 8659

Re: An analysis my colleague did on high yield

...I would like to know what other Vanguard fund I would be wiser to invest in than VWEAX that will produce $1100 to $1200 per month like clockwork? If you listen closely you can hear the sounds of crickets chirping. The stock reply (no pun intended) might be that, in addition to the VFINX + Treasuries combination mentioned in the article, there is the approach of tilting to size and value in equities and selling off appreciated shares. But who could blame an investor who is comfortable with the payout, if the NAV fluctuation does't bother her and she does't plan on liquidating shares. Every investor must decide for themselves. Since the IT Treasuries used in the study have seen a huge rise in value not likely to be repeated anytime soon, ...
by Beagler
Sun Jun 09, 2013 9:20 pm
Forum: Personal Investments
Topic: Investing in Foreign Bonds
Replies: 14
Views: 2596

Re: Investing in Foreign Bonds

Upon reading the comments, I'd gather than if Mr. Ferri or Dr. Bernstein were running the Vanguard Target Retirement Funds they would not have added in't bonds.
by Beagler
Sun Jun 09, 2013 9:10 pm
Forum: Investing - Theory, News & General
Topic: "Late Bloomer Millionaires" -- A Gem
Replies: 48
Views: 21648

Re: "Late Bloomer Millionaires" -- A Gem

Congratulations on the interview.