Search found 27 matches

by n00b590
Fri Mar 02, 2018 10:57 pm
Forum: Investing - Theory, News & General
Topic: Harvard blows $1Billion picking stocks, averaged 4.4% returns over last decade
Replies: 79
Views: 10206

Re: Harvard blows $1Billion picking stocks, averaged 4.4% returns over last decade

WhiteMaxima wrote:
Fri Mar 02, 2018 1:39 pm
Why doesn't Havard chose 3 fund folio? Do they think they are smarter than market?
Illiquidity premium
by n00b590
Tue Feb 27, 2018 6:24 pm
Forum: Investing - Theory, News & General
Topic: AAPL, AMZN, or GOOG?
Replies: 77
Views: 7159

Re: AAPL, AMZN, or GOOG?

..
VTI
by n00b590
Mon Feb 26, 2018 9:32 pm
Forum: Investing - Theory, News & General
Topic: how did you determine your risk tolerance?
Replies: 138
Views: 7819

Re: how did you determine your risk tolerance?

because i have a mortgage...and like all young families my house is my biggest "asset". nonetheless, search threads on "mortgage as a negative bond" and it suggests that i should be 100% bonds , so from that perspective i'm already way too aggressive to even have stocks at all. i obviously disagree...
by n00b590
Sun Feb 25, 2018 11:20 pm
Forum: Investing - Theory, News & General
Topic: how did you determine your risk tolerance?
Replies: 138
Views: 7819

Re: how did you determine your risk tolerance?

because i have a mortgage...and like all young families my house is my biggest "asset". nonetheless, search threads on "mortgage as a negative bond" and it suggests that i should be 100% bonds , so from that perspective i'm already way too aggressive to even have stocks at all. i obviously disagree...
by n00b590
Fri Feb 23, 2018 9:24 pm
Forum: Investing - Theory, News & General
Topic: Buy and Hold
Replies: 7
Views: 741

Re: Buy and Hold

Personally I would hold onto it, but it all depends on your risk tolerance. 6% of your portfolio is certainly much higher than ideal, but the ability to defer capital gains tax (or avoid it entirely) is a very real benefit--a rather substantial one, if your cost basis is ~$3 per share. That benefit ...
by n00b590
Tue Feb 20, 2018 12:02 am
Forum: Investing - Theory, News & General
Topic: Sequence of returns risk while accumulating
Replies: 65
Views: 4192

Re: Sequence of returns risk while accumulating

Unless I'm missing something, it seems your Monte Carlo simulations show the effects of variability in the actual time-weighted returns as well, not just in the sequence of returns. They are both risks to keep in mind, but I don't see how you can draw any conclusions on sequence risk specifically wh...
by n00b590
Mon Feb 19, 2018 8:35 pm
Forum: Investing - Theory, News & General
Topic: Interactive Brokers fee structure for passive investors
Replies: 39
Views: 3091

Re: Interactive Brokers fee structure for passive investors

IB is definitely geared towards active investors, especially those who want to trade 'exotic' instruments. Not suitable for buy-and-holders at all. This includes a pretty sizeable leap of logic; The same argument has been made about Merrill Edge and their free trades, and it is poor reasoning IMO. ...
by n00b590
Sun Feb 18, 2018 10:34 am
Forum: Investing - Help with Personal Investments
Topic: Really need an advice: sell the house or rent it out
Replies: 40
Views: 2345

Re: Really need an advice: sell the house or rent it out

All, Negative cash flow is not the same thing as losing money. Can you please explain? Part of the mortgage payment goes towards the principal on the loan, building equity. It would be like saying that making a 401k contribution is losing money. A complete discounted cash flow analysis that include...
by n00b590
Sun Feb 18, 2018 5:53 am
Forum: Investing - Help with Personal Investments
Topic: Really need an advice: sell the house or rent it out
Replies: 40
Views: 2345

Re: Really need an advice: sell the house or rent it out

All,

Negative cash flow is not the same thing as losing money.
by n00b590
Thu Feb 15, 2018 9:22 pm
Forum: Investing - Help with Personal Investments
Topic: Pledged Asset Line (PAL)/Line of Credit for Real Estate Investments
Replies: 9
Views: 687

Re: Pledged Asset Line (PAL)/Line of Credit for Real Estate Investments

- You are limited to $200,000 per day in withdrawals. - You are limited to $600,000 per week in withdrawals. Good post.. just a slight clarification, those are only the limits if you have either the basic security card or the "IB Key" app for 2FA. There is no limit on withdrawals if you use the Dig...
by n00b590
Thu Feb 15, 2018 6:49 pm
Forum: Investing - Help with Personal Investments
Topic: Pledged Asset Line (PAL)/Line of Credit for Real Estate Investments
Replies: 9
Views: 687

Re: Pledged Asset Line (PAL)/Line of Credit for Real Estate Investments

As mentioned in the thread you linked, Interactive Brokers has the best margin loan rates of anywhere I've seen: currently 1.72% - 2.92% depending on loan size (fed funds rate plus 0.3% - 1.5%) . I've done my fair share of looking and don't think you can find any other security-based loan with a bet...
by n00b590
Thu Feb 15, 2018 4:17 pm
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 915
Views: 198355

Re: Should I use margin to buy a balanced fund?

I have problem with his initial assumptions. Real-World Costs Of course …money is never free. I then raided the Federal Reserve Bank of St. Louis’s database (FRED), downloaded the monthly federal-funds interest rate, and simulated three borrowing costs. I permitted institutions to borrow at the fed...
by n00b590
Mon Feb 12, 2018 10:43 pm
Forum: Investing - Theory, News & General
Topic: how did you determine your risk tolerance?
Replies: 138
Views: 7819

Re: how did you determine your risk tolerance?

bling, Which part do you not understand? I have a choice A) Keep one year of the emergency fund and get 0% return. In exchange, I do not face the danger of selling my portfolio at 50% or more losses for at least one year. B) Do not keep one year of the emergency fund and have to sell at 50% or more...
by n00b590
Mon Feb 12, 2018 10:32 pm
Forum: Investing - Theory, News & General
Topic: how did you determine your risk tolerance?
Replies: 138
Views: 7819

Re: how did you determine your risk tolerance?

bling, Which part do you not understand? I have a choice A) Keep one year of the emergency fund and get 0% return. In exchange, I do not face the danger of selling my portfolio at 50% or more losses for at least one year. B) Do not keep one year of the emergency fund and have to sell at 50% or more...
by n00b590
Mon Feb 12, 2018 10:07 pm
Forum: Investing - Theory, News & General
Topic: how did you determine your risk tolerance?
Replies: 138
Views: 7819

Re: how did you determine your risk tolerance?

bling, Which part do you not understand? I have a choice A) Keep one year of the emergency fund and get 0% return. In exchange, I do not face the danger of selling my portfolio at 50% or more losses for at least one year. B) Do not keep one year of the emergency fund and have to sell at 50% or more...
by n00b590
Mon Feb 12, 2018 9:47 pm
Forum: Investing - Theory, News & General
Topic: U-Haul Investors Club
Replies: 14
Views: 2826

Re: U-Haul Investors Club

willthrill81 wrote:
Mon Feb 12, 2018 7:06 pm
I'd invest significantly more in my Roth account if for no other reason than the returns are uncorrelated to that of stocks
Correlations always increase in bear markets. If the stock market crashes, you can count on seeing a big spike in P2P lending defaults.
by n00b590
Sat Dec 09, 2017 5:33 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 101
Views: 7605

Re: Stocks always in taxable for tax efficient investing?

Buying non-divided paying stocks would also increase his likelihood of achieving more wealth, to be fair. This is one of those cases where reduced diversification increases volatility, but does not change expected return. Correct. Most of us invest with an eye towards risk-adjusted return. No reaso...
by n00b590
Sat Dec 09, 2017 5:29 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 101
Views: 7605

Re: Stocks always in taxable for tax efficient investing?

Thesaints wrote:
Sat Dec 09, 2017 5:16 pm
This is one of those cases where reduced diversification increases volatility, but does not change expected return.
Wrong. Better tax efficiency means higher expected (after-tax) returns.
by n00b590
Sat Dec 09, 2017 5:27 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 101
Views: 7605

Re: Stocks always in taxable for tax efficient investing?

I don't see how proper financial planning with a view towards maximizing after-tax returns can be taken to extremes. I've seen that statement before and it's never made any sense. Maximizing after-tax returns would mean buying only individual zero-dividend domestic stock(s) in taxable and never sel...
by n00b590
Sat Dec 09, 2017 4:13 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 101
Views: 7605

Re: Stocks always in taxable for tax efficient investing?

I don't see how proper financial planning with a view towards maximizing after-tax returns can be taken to extremes. I've seen that statement before and it's never made any sense. Maximizing after-tax returns would mean buying only individual zero-dividend domestic stock(s) in taxable and never sel...
by n00b590
Sat Dec 09, 2017 4:01 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 101
Views: 7605

Re: Stocks always in taxable for tax efficient investing?

I don't see how proper financial planning with a view towards maximizing after-tax returns can be taken to extremes. I've seen that statement before and it's never made any sense. Maximizing after-tax returns would mean buying only individual zero-dividend domestic stock(s) in taxable and never sel...
by n00b590
Tue Dec 05, 2017 12:54 pm
Forum: Investing - Help with Personal Investments
Topic: Reached 4M target. Taking money off table. Advice?
Replies: 120
Views: 20613

Re: Reached 4M target. Taking money off table. Advice?

Here is my thought about the mortgage. My interest rate is 3.25. I deduct my mortgage from my taxes, and it comes off the top. Of course taxes are progressive so it comes off the highest rate I pay. So I figure after the tax deduction I figure I pay an effective mortgage rate of 2.75% My 10 year ra...
by n00b590
Tue Dec 05, 2017 1:01 am
Forum: Investing - Help with Personal Investments
Topic: KF Tax Management Strategy
Replies: 33
Views: 1534

Re: KF Tax Management Strategy

D) I sell 40K to 50K of my stocks and realized about 20K to 25K worth of long-term capital gain. Can I do better? You can withdraw via portfolio loan / margin to avoid having to realize gains. See: https://www.bogleheads.org/forum/viewtopic.php?f=2&t=201734 Leverage isn't for everyone, but it's a p...
by n00b590
Tue Dec 05, 2017 12:46 am
Forum: Investing - Theory, News & General
Topic: Ok reasons for a 37 year old to have a 60/40 mix?
Replies: 61
Views: 9505

Re: Ok reasons for a 37 year old to have a 60/40 mix?

In this post , I did a Portfolio Visualizer run comparing an 80/20 LifeStrategy fund and a 60/40 LifeStrategy fund for the 20-year time frame 1995 to 2015. The difference was about 0.2% CAGR per year. Ha! The tax drag alone on a bond fund can cost upwards of 1% a year vs equities in the higher tax ...