Search found 237 matches

by venkman
Sat Oct 21, 2017 10:10 pm
Forum: Personal Finance (Not Investing)
Topic: What to do: Financial Advisor for Trust Breaching Fiduciary Duty
Replies: 13
Views: 1028

Re: What to do: Financial Advisor for Trust Breaching Fiduciary Duty

Who is the trustee? Likely worth consulting an attorney, but my understanding is that while trustees owe fiduciary duties, financial advisors do not, unless there is a contractual agreement designating the duty. I think a trustee by definition is required to be a fiduciary. I'm also pretty sure tha...
by venkman
Sat Oct 21, 2017 9:54 am
Forum: Investing - Theory, News & General
Topic: Shiller: the 1987 stock market panic can happen again
Replies: 29
Views: 2442

Re: Shiller: the 1987 stock market panic can happen again

10-year Treasury yields in 1987 before the crash were in the 7-9% range. If you nervous about the stock market, there were alternatives that offered a decent return. Today, there aren't. There's a lot of invested money out there right now, and it has to be invested in something. I don't think stocks...
by venkman
Sat Oct 21, 2017 9:42 am
Forum: Investing - Theory, News & General
Topic: Why do I need bonds? (I'm 30)
Replies: 52
Views: 3364

Re: Why do I need bonds? (I'm 30)

I just want to point out that Berkshire is sitting on $100 billion in cash right now, out of a total market cap of about $465 billion. Presumably because they can't find any attractively-priced companies to acquire. Apparently, cash can sometimes be the worst thing to invest in, except for everythin...
by venkman
Thu Oct 19, 2017 10:21 pm
Forum: Investing - Help with Personal Investments
Topic: Need Advice for Bond Investment
Replies: 4
Views: 481

Re: Need Advice for Bond Investment

Given the current market, economy and interest rates, what do you suggest regarding investing these funds in bonds. 100% in VBTLX now, dollar cost average into VBTLX or other. I have never owned bonds or bond mutual funds and all input is welcome. I don't think it will make much of a difference eit...
by venkman
Thu Oct 19, 2017 9:32 pm
Forum: Personal Finance (Not Investing)
Topic: CFP vs DIY [Certified Financial Planner vs. Do It Yourself]
Replies: 5
Views: 506

Re: CFP vs DIY

Investing is easy, mostly because the best way to do it is also the simplest. Overall financial planning (insurance, retirement, tax issues, estate planning, etc.) can be complicated. There's nothing wrong with paying a one-time fee to a professional CFP to help get everything squared away, if you f...
by venkman
Wed Oct 18, 2017 11:07 pm
Forum: Investing - Help with Personal Investments
Topic: Small article : Investment priorities change
Replies: 6
Views: 764

Re: Small article : Investment priorities change

Their recommendations were to focus on Dividend stocks and referenced Vanguard High Dividend Yield ETF. If someone is investing in an Index Fund and it goes down, one would assume that the Dividend fund is likely to take a hit too. Can someone explain the difference between a Dividend and an Index ...
by venkman
Wed Oct 18, 2017 10:48 pm
Forum: Investing - Help with Personal Investments
Topic: Shift from Roth to 401k?
Replies: 5
Views: 563

Re: Shift from Roth to 401k?

Assuming you're already contributing enough to the 401k to take advantage of a company match (if any), I would keep maxing the Roth for as long as you stay in the 15% bracket. If you were retiring now at age 70.5 and had $1,000,000 in the 401k, just the yearly RMD's would put you very close to the 2...
by venkman
Wed Oct 18, 2017 12:00 am
Forum: Investing - Help with Personal Investments
Topic: Newbie boglehead seeking advice! Please critique my plan!
Replies: 4
Views: 560

Re: Newbie boglehead seeking advice! Please critique my plan!

Questions: Some questions may be too generic or take a lot of explanation. Feel free to skip some! 1) Given my context and my aggressive goal, what do you think about my asset allocation and sub-class allocation? 2) Should I buy Extended market (mid and small cap) or Small cap? As mentioned, I woul...
by venkman
Mon Oct 16, 2017 11:14 pm
Forum: Investing - Theory, News & General
Topic: When everything goes up, what goes down & vice versa
Replies: 28
Views: 3096

Re: When everything goes up, what goes down & vice versa

What the Fed did had the net effect of greatly increasing bank reserves across the financial system, thereby freeing banks to lend a lot more. There hasn't been enough demand to borrow anywhere nearly that much, therefore the total quantity of money across the economy, most of which is created by b...
by venkman
Sun Oct 15, 2017 10:43 pm
Forum: Investing - Theory, News & General
Topic: When everything goes up, what goes down & vice versa
Replies: 28
Views: 3096

Re: When everything goes up, what goes down & vice versa

If every type of investment goes up then more money is being spent on investments of all types. That money must come from someplace, so doesn't that imply that cash deposits are reduced, or that debt is increased, or that the money supply is raised? No. Prices of financial assets are set at the mar...
by venkman
Sun Oct 15, 2017 10:20 pm
Forum: Personal Finance (Not Investing)
Topic: Pay Off or Refinance?
Replies: 17
Views: 1452

Re: Pay Off or Refinance?

I think you also have to compare what you would end up with if you took the same amount of money and left it invested it for 15 years while you pay off the mortgage. While there are always the standard disclaimers about market timing, it's entirely possible that a 60/40 portfolio might return less t...
by venkman
Sun Oct 15, 2017 12:25 am
Forum: Investing - Theory, News & General
Topic: Jack Bogle, The Only Way To Beat The Stock Market
Replies: 5
Views: 2394

Re: Jack Bogle, The Only Way To Beat The Stock Market

I like the video, but not the title, since index funds are basically guaranteed NOT to beat the market.

The best part was the "Sponsored by NY Life mutual funds" ad at the beginning. :happy
by venkman
Sun Oct 15, 2017 12:18 am
Forum: Investing - Theory, News & General
Topic: Which would you rather own: AAPL or S&P 600 Small Cap Index?
Replies: 57
Views: 3263

Re: Which would you rather own: AAPL or S&P 600 Small Cap Index?

The reason I'm asking is that every now and then the question comes up, is market cap weighting the best way to invest? Isn't it too concentrated in its top holdings? The way I look at it, the main reason for investing in stocks is so one can participate in corporate earnings. The market cap weight...
by venkman
Fri Oct 13, 2017 11:51 pm
Forum: Investing - Help with Personal Investments
Topic: Inflation-Linked Bond in 401k or i series bond with treasury
Replies: 4
Views: 539

Re: Inflation-Linked Bond in 401k or i series bond with treasury

thanks for the reply . i am 75% stocks 18% bonds ( half Prudential total return and half cref inflation linked bonds) and rest in real estate Real estate is also a good inflation hedge. I don't know what choices you have for bond funds, but the biggest predictor of returns within a given credit/ter...
by venkman
Fri Oct 13, 2017 11:33 pm
Forum: Personal Finance (Not Investing)
Topic: Help Moving From Debt to Wealth
Replies: 6
Views: 1299

Re: Help Moving From Debt to Wealth

In summation: 1) Would you hold the debt if Navient confirms waiving the 6 payments? 2) Try to shoot for tIRA over Roth, factoring in working less to do so, but also losing flexibility of Roth? 3) Should I just fund Roth now or see what happens by April? Long term questions My loans will be paid of...
by venkman
Fri Oct 13, 2017 12:34 am
Forum: Investing - Help with Personal Investments
Topic: Asset allocation question for my parents
Replies: 16
Views: 797

Re: Asset allocation question for my parents

Interests are different in different countries. I know in the US have very low interest but developing nations have a much higher rate. They also have a much higher risk of default, which is why they have to pay those higher interest rates. Any investment that offers higher return will ALWAYS have ...
by venkman
Fri Oct 13, 2017 12:26 am
Forum: Investing - Help with Personal Investments
Topic: Inflation-Linked Bond in 401k or i series bond with treasury
Replies: 4
Views: 539

Re: Inflation-Linked Bond in 401k or i series bond with treasury

Should one buy Inflation-Linked Bond in 401k accounts when treasury offers i series bonds with no loss of principal . I have lost money on my cref bonds https://www.tiaa.org/public/pdf/ffs/194408506.pdf where as treasury i series bonds continue to beat it . I would definitely not put money into any...
by venkman
Thu Oct 12, 2017 11:58 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation question for my parents
Replies: 16
Views: 797

Re: Asset allocation question for my parents

Thank you! I do find Western culture more 'independent minded'. The real estates are indeed mortgage free and is generating income, however a couple of them are only generating roughly 0.5% net profit a year (not counting the increase in land value). Bear in mind that if I put those in Fixed Income...
by venkman
Thu Oct 12, 2017 11:39 pm
Forum: Investing - Theory, News & General
Topic: Understanding What Makes Vanguard So Successful
Replies: 12
Views: 1913

Re: Understanding What Makes Vanguard So Successful

I think Jack Bogle's vision for Vanguard was similar to Elon Musk's vision for Tesla: not necessarily to become the dominant player in the market, but to be so disruptive as to force the rest of the market to start doing things his way. Probably the biggest driver of Vanguard's success is 40+ years ...
by venkman
Wed Oct 11, 2017 10:13 pm
Forum: Investing - Theory, News & General
Topic: Offensive Valuations
Replies: 45
Views: 4128

Re: Offensive Valuations

You guys will love the forgotten asset class 'Cash' (i.e. 1.25% savings accounts like Ally which can go way up or down based on interest rates to protect from inflation). Cumulative inflation so far this year is already around 1.7%. When does the yield go up on the savings account to protect agains...
by venkman
Wed Oct 11, 2017 9:53 pm
Forum: Investing - Theory, News & General
Topic: Vanguard bond ETF/funds
Replies: 21
Views: 1200

Re: Vanguard bond ETF/funds

oh also, it was mentioned some people may not like ETF's because you might not buy at a fair price? with Mutual Funds, you have no idea what the price will be, so is that fair also? By definition, you will get a fair price when you buy an (open-end) mutual fund, since the price is based on the fair...
by venkman
Tue Oct 10, 2017 9:55 pm
Forum: Investing - Theory, News & General
Topic: Buy when there's blood in the streets!
Replies: 39
Views: 6273

Re: Buy when there's blood in the streets!

After hearing "Buy when there's blood in the streets!" talk among investors over the years my question is for a index fund investor that's already fully invested without tons of cash laying around how could one actually "buy" any decent quantity of stocks upon a crash? If your investment philosophy...
by venkman
Tue Oct 10, 2017 2:24 am
Forum: Investing - Help with Personal Investments
Topic: Very confused by Bonds
Replies: 18
Views: 2113

Re: Very confused by Bonds

You mention a "little risk is a good thing"--I totally agree. However, I already have a LOT of risk (not a little) in my equity position of the portfolio. I am ok with that risk. After all, after my EF, I am 100% equity. I am looking to add a safe % of AA now. For this allocation of money (AA), I a...
by venkman
Tue Oct 10, 2017 1:33 am
Forum: Investing - Theory, News & General
Topic: 100% in bond to wait for market crash?
Replies: 122
Views: 11781

Re: 100% in bond to wait for market crash?

I recommend you spend some time listening to Dave Ramsey's investment advice.

Note that I don't recommend you FOLLOW Dave Ramsey's investment advice. Just listen to it, and you'll feel much better about being in the stock market. :mrgreen:
by venkman
Tue Oct 10, 2017 1:22 am
Forum: Personal Finance (Not Investing)
Topic: Conflicting goals, and limited income
Replies: 6
Views: 1052

Re: Conflicting goals, and limited income

I think your first step should to formulate an estimate of how much money it will cost to build the home you want to build. Figure out what it would cost to build today, and then assume the cost increases each year with inflation (currently under 2%, but you might assume 3% just to be conservative)....
by venkman
Sun Oct 08, 2017 9:58 pm
Forum: Investing - Theory, News & General
Topic: Buffett: U.S. Stocks have been safer than Cash or Treasuries over the last 50 Years.
Replies: 19
Views: 2913

Re: Buffett: U.S. Stocks have been safer than Cash or Treasuries over the last 50 Years.

Surely you jest. And please don't call me Shirley. Warren Buffett is fully aware of index investing. He has been recommending it to us average know-nothing investors for years now. Warren is a value investor and he is a businessman, he looks to control whole businesses or large chunks. Index invest...
by venkman
Sat Oct 07, 2017 10:16 pm
Forum: Investing - Theory, News & General
Topic: Buffett: U.S. Stocks have been safer than Cash or Treasuries over the last 50 Years.
Replies: 19
Views: 2913

Re: Buffett: U.S. Stocks have been safer than Cash or Treasuries over the last 50 Years.

https://www.cnbc.com/2017/05/05/warren-buffett-reveals-whats-holding-him-back-from-putting-berkshires-cash-to-work.html Warren Buffett told CNBC that Berkshire Hathaway has $90 billion in cash, and he's looking to "buy a big business." The billionaire investor has been talking for a while now about...
by venkman
Sat Oct 07, 2017 2:50 am
Forum: Investing - Help with Personal Investments
Topic: Creating a 3 Fund Portfolio??
Replies: 5
Views: 1067

Re: Creating a 3 Fund Portfolio??

I saw the .25% purchase fee on the total stock fund, so if I can avoid it by buying the ETF what is the trade off. Is there any disadvantage to having the ETF instead of the fund? The main difference with an ETF is that you have to buy and sell it on the open market, so its value might fluctuate th...
by venkman
Sat Oct 07, 2017 2:27 am
Forum: Investing - Help with Personal Investments
Topic: Transferring Roth IRA from American Funds to Vanguard
Replies: 3
Views: 337

Re: Transferring Roth IRA from American Funds to Vanguard

Within our current brokerage account we have my wife's Rollover IRA, my wife's Roth IRA account, AND my Roth IRA account. Do I have to initiate a transfer for each account? I started the transfer process with Vanguard for my Roth IRA and it asks, "Do you have an option contract in your account?" I'...
by venkman
Sat Oct 07, 2017 1:57 am
Forum: Investing - Theory, News & General
Topic: Bogle himself is saying we will expect like 3% for the next decades
Replies: 141
Views: 15528

Re: Bogle himself is saying we will expect like 3% for the next decades

Stocks are highly valued, but so is everything else. The issue is a relatively high amount of capital in the markets. As long as that persists, expected returns will be low for everything. The Fed paring down its balance sheet might help in the long term, but that process will be painfully slow.
by venkman
Fri Oct 06, 2017 3:52 am
Forum: Investing - Help with Personal Investments
Topic: Where do you think the money will come from to move the overall market higher?
Replies: 31
Views: 2247

Re: Where do you think the money will come from to move the overall market higher?

I see the continued demand for equities coming from the fact that most other investment options don't look very good right now either...
by venkman
Fri Oct 06, 2017 3:37 am
Forum: Investing - Help with Personal Investments
Topic: Creating a 3 Fund Portfolio??
Replies: 5
Views: 1067

Re: Creating a 3 Fund Portfolio??

1. Are there any advantages to choosing an ETF for one of these such as the Total Stock Market ETF over the Index fund? 2. I read the boglehead page on the differences of the Total Int Stock Index and FTSE All World ex-US, but I still don't see any difference or why to choose one over the other. An...
by venkman
Fri Oct 06, 2017 2:57 am
Forum: Investing - Help with Personal Investments
Topic: Trying to convince my sister not to use a financial advisor
Replies: 59
Views: 4039

Re: Trying to convince my sister not to use a financial advisor

Tell her the guy who started Vanguard is predicting her real return will only be 0.6% over the next decade (4% nominal - 2% inflation - 1.4% advisor fees).

Point out how she can more than triple that by losing the advisor.
by venkman
Tue Oct 03, 2017 11:00 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Check/Feedback
Replies: 2
Views: 260

Re: Portfolio Check/Feedback

Personally, I would suggest making VTI the core of your portfolio (not necessarily 100%, but certainly the biggest holding you have--say, 40%+). Then tilt from there, if you like; but pick a few tilts to concentrate on. Anything less than 10% of your total portfolio is probably not going to make eno...
by venkman
Tue Oct 03, 2017 9:39 pm
Forum: Investing - Theory, News & General
Topic: The Future of Active vs Index Investing
Replies: 33
Views: 2515

Re: The Future of Active vs Index Investing

I mean there was no staying the course with Enron, Lehman, Kodak, more recently Equifax, etc.. I wonder how many passive funds were forced to hold on to these companies when it was pretty clear the future was very bleak. For every active manager who sold those companies on the way down, there was a...
by venkman
Mon Oct 02, 2017 10:50 pm
Forum: Investing - Help with Personal Investments
Topic: New to Investing - Trying to find my feet
Replies: 8
Views: 591

Re: New to Investing - Trying to find my feet

Get in touch with Vanguard; they'll be happy to help you transfer your IRA from PNC. I would definitely do that ASAP. I don't know for sure if PNC has hidden fees they might try to charge you, but I know Vanguard won't. Especially if you plan to invest in Vanguard funds. A good starting point is jus...
by venkman
Mon Oct 02, 2017 9:55 pm
Forum: Investing - Theory, News & General
Topic: The Future of Active vs Index Investing
Replies: 33
Views: 2515

Re: The Future of Active vs Index Investing

I mean there was no staying the course with Enron, Lehman, Kodak, more recently Equifax, etc.. I wonder how many passive funds were forced to hold on to these companies when it was pretty clear the future was very bleak. For every active manager who sold those companies on the way down, there was a...
by venkman
Mon Oct 02, 2017 9:42 pm
Forum: Investing - Theory, News & General
Topic: Mutual fund vs ETF prices
Replies: 15
Views: 1184

Re: Mutual fund vs ETF prices

VTI is $130.18 today, while VTSAX is $63.36.... Related note, can someone clarify the % return each day for the ETF vs the MF? Should these potentially be the same each day? The premium/discount could vary from day to day with the ETF, so it might not track the underlying fund exactly. Also, VTI sh...
by venkman
Sat Sep 30, 2017 11:50 pm
Forum: Investing - Help with Personal Investments
Topic: New 100K portfolio - which bonds?
Replies: 6
Views: 1051

Re: New 100K portfolio - which bonds?

Do you guys think is a good idea to invest 30% of the new 100K taxable account in bonds - tax exempt - perhaps as you suggested a combination of state munis (Vanguard Pennsylvania Long-Term Tax-Exempt) and Vanguard Intermediate-Term Treasury Fund An idea that has been previously suggested on these ...
by venkman
Fri Sep 29, 2017 12:55 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice
Replies: 2
Views: 336

Re: Portfolio Advice

Start here: https://www.bogleheads.org/wiki/Getting_started The general philosophy on these forums is that the vast majority of your portfolio should be in low-cost index funds. Many of your current funds are not what would be considered low-cost. You can get better help if you format your post as s...
by venkman
Fri Sep 29, 2017 12:41 am
Forum: Investing - Help with Personal Investments
Topic: Help with building a portfolio - new ESOP distribution
Replies: 3
Views: 344

Re: Help with building a portfolio - new ESOP distribution

Questions: 1. I want to slowly deploy all of my cash holdings. I am thinking something like a certain percentage every quarter until fully deployed instead of going all in at once. What are your thoughts on this? 2. How would you recommend that I construct my portfolio? Should I follow the 3 or 4 f...
by venkman
Fri Sep 29, 2017 12:07 am
Forum: Personal Finance (Not Investing)
Topic: Bigger down payment or CDs?
Replies: 18
Views: 1457

Re: Bigger down payment or CDs?

Well, I guess the way I was looking at it was paying about 1% right now. And while I might not go out tomorrow and take a huge loan just to be liquid, I was trying to be smart with the fact that this is probably the cheapest money I can borrow in my life. If I decide I wanted to take a loan out lat...
by venkman
Thu Sep 28, 2017 11:32 pm
Forum: Personal Finance (Not Investing)
Topic: I am in the investment advice industry and I'm not sure if I provide any value
Replies: 67
Views: 6431

Re: I am in the investment advice industry and I'm not sure if I provide any value

While it's better than the commission model, the AUM fee model still results in an inherent conflict of interest for the advisor--namely the fact that it is in the advisor's interest for you to keep all of your assets under the advisor's management. If you have a choice between, say, paying down a m...
by venkman
Thu Sep 28, 2017 2:43 am
Forum: Investing - Help with Personal Investments
Topic: Investment advice - Potential windfall
Replies: 7
Views: 848

Re: Investment advice - Potential windfall

I assume interest rates are going rise for the near/medium term, then drop to offset an economic slowdown coming in the mid/long term ... also assume the market will normalize with a 10% - 20% correction in the near term ... again, just stupid opinions on my part ... right now feel like the market ...
by venkman
Thu Sep 28, 2017 2:13 am
Forum: Investing - Help with Personal Investments
Topic: How to leave Morgan Stanley?
Replies: 5
Views: 675

Re: How to leave Morgan Stanley?

ACJC wrote: ↑
Thu Sep 28, 2017 2:02 am
Will Morgan Stanley charge me?
I don't know for sure. They may have some fees for closing accounts (probably in the $50-$100 range per account), but that's dirt cheap, compared to the amount you will save in fees over the life of the investment by being with Vanguard instead of MS.
by venkman
Thu Sep 28, 2017 2:06 am
Forum: Investing - Help with Personal Investments
Topic: How long a track record should a new fund have before I invest?
Replies: 13
Views: 813

Re: How long a track record should a new fund have before I invest?

Portfolio Visualizer data for REDWX goes back to Dec. 2015. Numbers from Dec 2015 through Aug. 2017: REDWX: 15.06% CAGR / 13.05% Stdev / 1.12 Sharpe ratio VFINX: 12.58% CAGR / 8.35% Stdev / 1.42 Sharpe ratio On a risk-adjusted basis over its brief lifespan, it seems to be losing to the S&P 500.
by venkman
Thu Sep 28, 2017 1:47 am
Forum: Investing - Help with Personal Investments
Topic: How to leave Morgan Stanley?
Replies: 5
Views: 675

Re: How to leave Morgan Stanley?

I rolled over a 403b, 2 custodial accounts and index account with them :(. I wish I would have looked into all this stuff earlier! Thank you! If you want to transfer your accounts from Morgan Stanley to Vanguard, just call/go online to Vanguard and tell them you want to make the switch. Once you ge...
by venkman
Thu Sep 28, 2017 1:27 am
Forum: Personal Finance (Not Investing)
Topic: Bigger down payment or CDs?
Replies: 18
Views: 1457

Re: Bigger down payment or CDs?

Another way to look at it is to pretend you're starting at zero. Would you borrow this amount of money at a rate of 3.75% just for the sake of having liquidity? That's essentially the same choice you have to make.