Search found 634 matches

by TD2626
Thu Sep 06, 2018 8:13 pm
Forum: Investing - Theory, News & General
Topic: Mutual Fund Fee Wars Will Encourage Bad Behavior
Replies: 26
Views: 2652

Re: Mutual Fund Fee Wars Will Encourage Bad Behavior

Low fees are good, and churning is bad. The rational thing to do is to buy and hold in a low-fee, broadly diversified fund. Maybe if Vanguard imposed a small fee - not a 200 to 500 basis point fee, but a 50 - 150 basis point fee - for buying and/or selling, it would discourage short term trading. I ...
by TD2626
Mon Sep 03, 2018 4:14 pm
Forum: Investing - Help with Personal Investments
Topic: What's wrong with putting most of my money into two stocks: Alphabet and Amazon?
Replies: 79
Views: 3292

Re: What's wrong with putting most of my money into two stocks: Alphabet and Amazon?

steve321, do you have any more specific questions on this topic? It looks like things are getting repetitive, and all sides of the issue have been discussed. prudent, I have a question on the risks you mentioned in you previous post; basically if it's so risky why are people who have gotten very ri...
by TD2626
Mon Sep 03, 2018 2:01 pm
Forum: Investing - Theory, News & General
Topic: Does it make sense to invest in individual stocks (like Kanye West) if you stick to what you know?
Replies: 110
Views: 5765

Re: Does it make sense to invest in individual stocks (like Kanye West) if you stick to what you know?

It's worth noting that author (Adam Grossman) of the article the OP cited says in his last paragraph "I still believe that the best path for investors is to stick to low-cost index funds and to steer clear of stock-picking." This isn't something that should be a main focus for long term investors. H...
by TD2626
Mon Sep 03, 2018 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: Emergency fund size
Replies: 72
Views: 6489

Re: Emergency fund size

Also - you can look at potential future known possible large expenses. These are things that would suddenly require large amounts of money but that are at least somewhat predictable. For example, if your car is 15 years old and you know if it has a significant mechanical problem costing for more tha...
by TD2626
Mon Sep 03, 2018 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: Emergency fund size
Replies: 72
Views: 6489

Re: Emergency fund size

I handle it somewhat differently. My preferred asset allocation is 5% in cash, 60% in bonds, and 35% in stocks. My cash allocation is my emergency fund. It’s invested in a money market fund, and it’s enough for me to live on for several years. It isn’t paying very much, but I like knowing that it’s...
by TD2626
Mon Sep 03, 2018 12:04 pm
Forum: Investing - Theory, News & General
Topic: "Ten Things You Should Know About Index Fund Investing"
Replies: 9
Views: 2201

Re: "Ten Things You Should Know About Index Fund Investing"

A very interesting article and a very clear, well written review of the main points of indexing. Thanks for sharing the link. It boils down a lot of information into bite sized chunks and would be helpful to share with anyone who is unfamiliar with indexing. It is especially good that this article l...
by TD2626
Mon Sep 03, 2018 11:52 am
Forum: Personal Finance (Not Investing)
Topic: [How do I include inflation in my pay raise?]
Replies: 29
Views: 1728

Re: [How do I include inflation in my pay raise?]

Since the tax brackets are indexed to inflation, the amount in the highest bracket will not change if you get a raise equal to CPI. The lower bound for that bracket will go up as the tax brackets themselves are changed, and the higher bound will go up with the raise.
by TD2626
Sun Sep 02, 2018 6:41 pm
Forum: Investing - Theory, News & General
Topic: The Power of Passive Investors
Replies: 3
Views: 843

Re: The Power of Passive Investors

Voting by individuals via mutual funds would be pure entertainment. We on this board can't agree on the proper temperature for ale. I'd just love to see a mutual fund allowing individuals vote on a contentious corporate issue! And, with Total Stock and Total International, I'd get to vote 10,000 ti...
by TD2626
Sun Sep 02, 2018 4:53 pm
Forum: Investing - Theory, News & General
Topic: What constitutes a haystack? (for stocks)
Replies: 32
Views: 2534

Re: What constitutes a haystack? (for stocks)

My gosh. We have gone from stock picking to index picking to haystack picking. When will this ever end? Indexers tend to follow the advice of Bogle: “Don't look for the needle in the haystack. Just buy the haystack!”. However, some indexers try to pick haystacks that have the most needles, or try t...
by TD2626
Sun Sep 02, 2018 4:47 pm
Forum: Investing - Theory, News & General
Topic: Investing in the food industry
Replies: 13
Views: 887

Re: Investing in the food industry

All of them Good answer. Individual investors tend to not have the time to put full-time research into stocks and carefully pour over annual reports of companies - so they'd presumably lag behind the returns of professional investment managers. However, there is even debate over whether professiona...
by TD2626
Sun Sep 02, 2018 4:41 pm
Forum: Investing - Theory, News & General
Topic: What constitutes a haystack? (for stocks)
Replies: 32
Views: 2534

Re: What constitutes a haystack? (for stocks)

I believe the "haystack" for stocks is the global equities market, something like Vanguard Total World. In my opinion, this should be the starting point for an equity portfolio design. I think there is only one haystack, one earth. However, that doesn't mean a small and intentional tilt towards US s...
by TD2626
Sun Sep 02, 2018 4:13 pm
Forum: Investing - Theory, News & General
Topic: The Power of Passive Investors
Replies: 3
Views: 843

Re: The Power of Passive Investors

It would be nice if individual investors in mutual funds could vote the shares that they indirectly own through mutual funds. Obviously, this would require a different structure of mutual fund, and a lot of work on the part of investors. Indeed, no individual investor would be able to vote every sha...
by TD2626
Sat Sep 01, 2018 6:10 pm
Forum: Investing - Theory, News & General
Topic: Stocks beginning with the letter 'A' continue to soar!
Replies: 10
Views: 881

Re: Stocks beginning with the letter 'A' continue to soar!

There are tons of arbitrary distinctions, such as what letter the company name starts with or what state the company is headquarted in (is the HQ in Atlanta or Albany?) that shouldn't change one's investment strategy in my opinion. What about zodiac sign of the CEO? Look for Aries? Completely meani...
by TD2626
Sat Sep 01, 2018 5:34 pm
Forum: Investing - Theory, News & General
Topic: Stocks beginning with the letter 'A' continue to soar!
Replies: 10
Views: 881

Re: Stocks beginning with the letter 'A' continue to soar!

There are tons of arbitrary distinctions, such as what letter the company name starts with or what state the company is headquarted in (is the HQ in Atlanta or Albany?) that shouldn't change one's investment strategy in my opinion.
by TD2626
Sat Sep 01, 2018 5:25 pm
Forum: Personal Consumer Issues
Topic: Daily Driver (Car) Over 100K Miles?
Replies: 96
Views: 7114

Re: Daily Driver (Car) Over 100K Miles?

The decision to sell is comes when the cost of repair approaches the value of the vehicle. I understand the sentiment, but I'm not sure I'd agree. Knowing the complete history and condition of one's existing vehicle makes it worth considerably more than a random, unknown, similar vehicle, IMO. What...
by TD2626
Sat Sep 01, 2018 5:09 pm
Forum: Investing - Theory, News & General
Topic: Are CDs considered an investment?
Replies: 75
Views: 4099

Re: Are CDs considered an investment?

Just like at the track or casino? I should have expressly included the common denominator that separates both savings and investments from things like wagers: ownership of an asset. OK, so at the other end of the spectrum is there a common denominator that separates investments from speculation in ...
by TD2626
Sat Sep 01, 2018 4:33 pm
Forum: Investing - Theory, News & General
Topic: The US debt is even larger than stated
Replies: 25
Views: 2086

Re: The US debt is even larger than stated

Do nothing. To begin with, how does the value of the US national debt figure, as a number, into your spreadsheets, your calculations, your asset allocation? It doesn't. So if it's "larger than stated," it doesn't change any numbers. One place, in theory, that one would put this figure directly into...
by TD2626
Sat Sep 01, 2018 4:12 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing Frequency? Daily vs annually?
Replies: 34
Views: 2433

Re: Rebalancing Frequency? Daily vs annually?

Maybe doing a combination of some of the re-balancing approaches discussed here: https://www.bogleheads.org/wiki/Rebalancing could work. For example, doing it at a minimum annually; and also using regular contributions/withdrawals to move closer to the desired allocation, and also rebalancing if the...
by TD2626
Sat Sep 01, 2018 3:57 pm
Forum: Personal Consumer Issues
Topic: The twenty dollar rule
Replies: 44
Views: 3922

Re: The twenty dollar rule

Also - think about purchases that are less than $20 but that are wastefully expensive if you're on a tight budget. For example, a $19.99 entree at a fine restaurant, when one could buy dinner off the dollar menu for $0.99 --- this is a $19 dollar savings. Further, if one gets a expensive coffee for ...
by TD2626
Sat Sep 01, 2018 3:45 pm
Forum: Personal Consumer Issues
Topic: The twenty dollar rule
Replies: 44
Views: 3922

Re: The twenty dollar rule

What the OP meant to say was that both he and his spouse report to each other before spending $20 on anything. The rules are the same for both of them. I think that's kind of ridiculous but whatever works for them and is fair to both is fine. The OP didn't exactly say this. If the OP meant to say t...
by TD2626
Sat Aug 18, 2018 8:54 pm
Forum: Investing - Theory, News & General
Topic: Do You Believe Diversification Is The Right Strategy Only If The Investment Horizon Is Long?
Replies: 28
Views: 2213

Re: Do You Believe Diversification Is The Right Strategy Only If The Investment Horizon Is Long?

If your horizon is short (several years) maybe "saving" is a more appropriate term than "investing". Since a horizon that short calls for low-risk investments (like US Treasury Bills or FDIC savings accounts) you probably don't need do diversify as much. Basically, because riskier investments (stock...
by TD2626
Sat Aug 18, 2018 7:33 pm
Forum: Investing - Theory, News & General
Topic: Workers on Corporate Boards - Principal-Agent Problem
Replies: 17
Views: 1323

Re: Workers on Corporate Boards - Principal-Agent Problem

Many here keep referring to the mutual ownership structure of Vanguard as being one of the main reasons to pick Vanguard, since they do not suffer from the principal-agent problem that non-mutual organizations (virtually all other major money managers) do suffer from. They do not have to "serve two...
by TD2626
Sat Aug 18, 2018 7:05 pm
Forum: Investing - Theory, News & General
Topic: Do You Believe Diversification Is The Right Strategy Only If The Investment Horizon Is Long?
Replies: 28
Views: 2213

Re: Do You Believe Diversification Is The Right Strategy Only If The Investment Horizon Is Long?

At first glance it would seem like diversification is more important the longer the time horizon. Conventionally, if one's time horizon is short (a few years), one can have a FDIC-insured cash account or a short-term, high credit quality bond fund. If the time horizon is medium (several years to 10 ...
by TD2626
Sat Aug 18, 2018 6:48 pm
Forum: Investing - Theory, News & General
Topic: Workers on Corporate Boards - Principal-Agent Problem
Replies: 17
Views: 1323

Re: Workers on Corporate Boards - Principal-Agent Problem

But that is not the deal I am looking for when I enter into deals with corporations, entrusting them with my capital. This somehow feels like betrayal. How is it betrayal, exactly? You can choose not to invest your capital in those companies, no? I agree that it's not "betrayal" exactly -- one know...
by TD2626
Sat Aug 18, 2018 6:38 pm
Forum: Investing - Theory, News & General
Topic: Workers on Corporate Boards - Principal-Agent Problem
Replies: 17
Views: 1323

Re: Workers on Corporate Boards - Principal-Agent Problem

Many here keep referring to the mutual ownership structure of Vanguard as being one of the main reasons to pick Vanguard, since they do not suffer from the principal-agent problem that non-mutual organizations (virtually all other major money managers) do suffer from. They do not have to "serve two...
by TD2626
Sat Aug 18, 2018 6:25 pm
Forum: Investing - Theory, News & General
Topic: S&P500 Global percentages
Replies: 1
Views: 368

Re: S&P500 Global percentages

Foreign companies also have a large percentage of sales to the US. (Lots of people buy gas from Shell or BP or cars from Toyota, Samsung is a major electronics company, etc). This basically means that US company's returns are dependent on the economies of other nations (so that, for example, someone...
by TD2626
Sat Aug 18, 2018 6:00 pm
Forum: Investing - Theory, News & General
Topic: Diversification
Replies: 13
Views: 849

Re: Diversification

Most of the benefit of "Diversification" comes from the returns on the assets being uncorrelated. If they tend to go in the same direction, you're not getting that. This is ultimately a matter of correlation and correlation coefficients. US and International stocks have a positive, and relatively h...
by TD2626
Sun Jul 15, 2018 5:28 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Look Past Expense Ratios
Replies: 71
Views: 6713

Re: Larry Swedroe: Look Past Expense Ratios

For example, say that I happen to like a high probability of a small downside and a low probability of a big upside--positive skew, "lottery ticket." Then, if what I think I've read is correct, I ought to like small growth stocks. On the other hand, if I want a high probability of a slow and steady...
by TD2626
Mon May 07, 2018 5:23 pm
Forum: Investing - Theory, News & General
Topic: How do brokerages make $s on cheap index funds?
Replies: 57
Views: 5590

Re: How do brokerages make $s on cheap index funds?

It's also a point of vanity to say "We at brokerage ABC hold "X" amount in assets" insinuating that the more they hold the better they must be. They are happy to let a BH have a high 6 or 7 figure account with index funds because it boosts their tagline. Fidelity's S&P 500 fund has more in assets u...
by TD2626
Mon May 07, 2018 7:50 am
Forum: Investing - Help with Personal Investments
Topic: DRIP (Dividend Reinvestment Plan)
Replies: 21
Views: 2081

Re: DRIP (Dividend Reinvestment Plan)

DRIPs I believe were more important historically, when index funds didn't exist. DRIPs still exist and in theory a portfolio of a couple dozen in all different industries, bought and hold for decades, might work but it would be very clunky. Decades ago it was a traditional way to invest cheaply... b...
by TD2626
Wed Apr 18, 2018 10:44 pm
Forum: Investing - Theory, News & General
Topic: Theoretical question. What would happen if 100% of investors are buy and hold.
Replies: 19
Views: 2406

Re: Theoretical question. What would happen if 100% of investors are buy and hold.

I don't think this could ever happen - not 100%. However, it is easy to envision a world where the overwhelming majority of individual investors buy and hold index funds for the overwhelming majority of their portfolios, with some people having small amounts in relatively low cost active funds and w...
by TD2626
Mon Apr 09, 2018 12:44 pm
Forum: Investing - Theory, News & General
Topic: Just how safe is a short-term corporate bond fund?
Replies: 53
Views: 7351

Re: Just how safe is a short-term corporate bond fund?

It's the classic case of incurring higher risk for the expectation of higher reward, in a highly efficient market. This is a great quote. The decision is based on if whether the (possible) higher return is worth the higher risk. Why is the higher return desired or needed? Is the higher risk worth i...
by TD2626
Tue Mar 27, 2018 3:21 pm
Forum: Investing - Theory, News & General
Topic: Engineered Portfolio
Replies: 14
Views: 2127

Re: Engineered Portfolio

It's probably what happens if you do excessive backtesting and go with it. Sometimes the outputs of backtests are a quirk of history and not all that likely to work well in the future. It reminds me of this https://www.bogleheads.org/forum/viewtopic.php?t=5410 Excessively unconventional and highly r...
by TD2626
Tue Mar 27, 2018 3:15 pm
Forum: Investing - Theory, News & General
Topic: Tax Efficiency of Mutual Funds
Replies: 7
Views: 823

Re: Tax Efficiency of Mutual Funds

One thing that index funds, particularly at Vanguard (due to their index/etf structure) do is generally have lower capital gain distributions compared to active funds that trade a lot. Indeed, active funds can sometimes have truly enormous capital gain distributions.
by TD2626
Mon Mar 19, 2018 10:02 am
Forum: Investing - Theory, News & General
Topic: Why is 16 the magic number for FAs?
Replies: 27
Views: 4737

Re: Why is 16 the magic number for FAs?

I wonder if "exactly 16" is more common than "about 16" -- maybe one could look at posts on this board to find that out! I think wealth management is a dying industry, sort of like horse buggy whip makers in the 1920's. I think John Bogle in one of his books even recommends that young people choosin...
by TD2626
Mon Mar 19, 2018 9:49 am
Forum: Investing - Theory, News & General
Topic: How much TLH can be done with a 3 fund portfolio?
Replies: 19
Views: 1332

Re: How much TLH can be done with a 3 fund portfolio?

Each individual lot is a TLH opportunity. Sorry, what do you mean by "each individual lot"? If you use the specific identification method for tracking cost basis and calculating capital gains and losses, each individual purchase of a stock, ETF, or mutual fund creates a "lot" with its own cost basi...
by TD2626
Sun Feb 11, 2018 11:23 pm
Forum: Investing - Theory, News & General
Topic: Just how safe is a short-term corporate bond fund?
Replies: 53
Views: 7351

Re: Just how safe is a short-term corporate bond fund?

It's the classic case of incurring higher risk for the expectation of higher reward, in a highly efficient market. This is a great quote. The decision is based on if whether the (possible) higher return is worth the higher risk. Why is the higher return desired or needed? Is the higher risk worth i...
by TD2626
Sun Feb 11, 2018 11:10 pm
Forum: Personal Finance (Not Investing)
Topic: Yes, one is required to use the tax tables. So plan wisely to save a few dollars
Replies: 23
Views: 3852

Re: Yes, one is required to use the tax tables. So plan wisely to save a few dollars

This is impressive! (More or less impossible for many, though, especially those who don't have the information they need to do this in or compiled before the end of the year, though.)
by TD2626
Fri Feb 09, 2018 10:43 pm
Forum: Investing - Theory, News & General
Topic: Funds without dividends
Replies: 17
Views: 1717

Re: Funds without dividends

A hypothetical non-dividend fund would potentially not be diversified enough. It may have a growth tilt, as well - though value is not synonymous with high dividend yeild. Remember single company stocks are considered very risky, also. Maybe do calculations to see if the tax savings from a low divid...
by TD2626
Fri Feb 09, 2018 10:36 pm
Forum: Investing - Help with Personal Investments
Topic: Accredited investor resources
Replies: 25
Views: 1873

Re: Accredited investor resources

Why would someone want to invest in these sorts of things? In my opinion people seem to wrongly think "its an opportunity limited to few, so it must be good". Um, instead it's often overly risky and non-transparent - and total market index funds may be used even for large portfolios. Nevada has tens...
by TD2626
Fri Feb 09, 2018 9:56 pm
Forum: Investing - Theory, News & General
Topic: "The stock market is officially in a correction... here's what usually happens next"
Replies: 83
Views: 14746

Re: "The stock market is officially in a correction... here's what usually happens next"

"Stay the course" is not the same as "Buy and hold." Corrections and bear markets can often be an opportunity to rebalance, sell an unwanted fund, tax-loss harvest or move to another company. These seem like good points. One question: By "sell an unwanted fund" would you be referring to a situation...
by TD2626
Fri Jan 19, 2018 12:43 am
Forum: Investing - Help with Personal Investments
Topic: Are ETFs Really That Safe?
Replies: 29
Views: 3757

Re: Are ETFs Really That Safe?

A big concern is the fact that many etfs are small and/or concentrate on tiny sectors of the market. Also, they allow short term speculation. Responsible buy and hold investors tend to dislike narrow sector bets and short term trading. I guess in a sense etfs could be unsafe in the wrong hands (e.g....
by TD2626
Wed Jan 10, 2018 1:15 am
Forum: Investing - Theory, News & General
Topic: How diversified are you really with cap weighted foreign markets?
Replies: 37
Views: 2397

Re: How diversified are you really with cap weighted foreign markets?

Right. Don't buy country-specific products just because they're offered and "cheap." This is a non sequitur vis-à-vis Total International Stock Market or Total World, though. Good point - these are not the kinds of buy and hold funds that would likely be held by Bogleheads, in my opinion. Why would...
by TD2626
Wed Jan 10, 2018 1:02 am
Forum: Investing - Theory, News & General
Topic: Corporate bonds vs. Treasuries
Replies: 52
Views: 6049

Re: Corporate bonds vs. Treasuries

If you don't need to touch your investment portfolio for the next 30 years the experts recommend a small amount of Treasuries with that high equity allocation because of the negative correlation of Treasuries with stocks in times of stress. It has nothing at all to do with selling your investments ...
by TD2626
Wed Jan 10, 2018 12:41 am
Forum: Investing - Help with Personal Investments
Topic: How crucial are Admiral shares?
Replies: 6
Views: 1795

Re: How crucial are Admiral shares?

The nice thing is that this can be in theory partially quantified - one could calculate exactly how much in excess fees are being paid, and compound this effect out for many years. I believe a lot of the issue with fees comes from compounding - e.g. the fact that you'd hope to earn money on the mone...
by TD2626
Wed Jan 10, 2018 12:35 am
Forum: Investing - Theory, News & General
Topic: 2017 Callan Periodic Table of Investment Returns
Replies: 35
Views: 5700

Re: 2017 Callan Periodic Table of Investment Returns

It's interesting the performance of Russell 2000 Value relative to other things given SCVs popularity. One must remember that investing for a lifetime-length goal is often a 40-70 year endeavor so single years likely don't matter much --- but SCV supporters shouldn't expect too much (if anything) an...
by TD2626
Wed Dec 27, 2017 10:57 pm
Forum: Investing - Theory, News & General
Topic: Public Service Credit Union (PSCU) of Colorado is trying Reverse Tier Savings to attract new deposits
Replies: 15
Views: 2243

Re: Reverse tier savings?!

^^^ Sorry, I wasn't clear. PSCU is my B&M financial home. I keep a month of living expenses (<$2K) in savings... just because. --Today my <$2K is earning 0.10%. --The teller said she could convert the account ("no extra effort on my part"). --I move in new money ( through actually, which I do every...
by TD2626
Wed Dec 27, 2017 5:55 pm
Forum: Investing - Theory, News & General
Topic: Public Service Credit Union (PSCU) of Colorado is trying Reverse Tier Savings to attract new deposits
Replies: 15
Views: 2243

Re: Reverse tier savings?!

BH Reverse tier savings My little CU is trying this no-fee no-minimum-balance savings account idea. Only restriction, it must be new money: 0-2K: 3.25% APY 2-5K: 1.5% APY 5-10K: 0.75% APY 10-50K: 0.4% APY >50K: 0.3% APY vs. their current personal share (savings) account: 0.10% APY. While I’m a conv...
by TD2626
Wed Dec 27, 2017 5:44 pm
Forum: Investing - Theory, News & General
Topic: How to setup a crypto-currency "index fund" (Bitcoin, etc.)
Replies: 77
Views: 7521

Re: Speculating vs. Boglehead Investing

Perhaps the board could have a crypto currency sub-forum. ;) Not sure if this was meant tongue-in-cheek, but if this helps people who don't want to think about crypto-currencies avoid popping into threads to mutter "ponzi" or "tulip" repeatedly, rather than contributing to the topic at hand, that w...
by TD2626
Wed Dec 27, 2017 5:11 pm
Forum: Investing - Theory, News & General
Topic: Muni Money Market funds starting to look good!
Replies: 139
Views: 27291

Re: Muni Money Market funds starting to look good!

Thanks for the links and post. It's good to see that short-term yields are rising in both taxable and tax exempt funds. That being said, rising rates on savings accounts probably aren't as important as many think. If a hypothetical investor has $90,000 in stocks and $10,000 in cash, and gets (in a h...