Search found 858 matches

by typical.investor
Mon Jun 17, 2019 1:10 am
Forum: Personal Consumer Issues
Topic: Restore Corrupted External Hard Drive
Replies: 5
Views: 315

Re: Restore Corrupted External Hard Drive

Around 2010-2012, I backed up all my digital pictures to date on a couple external hard drives. I recently tried to open the picture files and was dismayed that they weren't accessible; the entire hard drive appears to be corrupted. Should I take this to the Geek Squad at Best Buy, or is there a be...
by typical.investor
Sun Jun 16, 2019 6:34 pm
Forum: Investing - Theory, News & General
Topic: What is wrong with AQR?
Replies: 128
Views: 6990

Re: What is wrong with AQR?

Factor enthusiasts argue that single factors like value can be negative for a long time but when one fact like value is negative, the others--MOM, QUAL, SIZE, and LOW VOL--make up the slack and should continue to outperform plain old beta I believe it's been shown that cross-factor correlations are...
by typical.investor
Sun Jun 16, 2019 11:53 am
Forum: Investing - Theory, News & General
Topic: What is wrong with AQR?
Replies: 128
Views: 6990

Re: What is wrong with AQR?

Ben CAPM model simply doesn't do a good enough job of explaining return differences, only about 2/3, but 3 factor model explains above 90%. That is because the stocks have different risk characteristics than AVERAGE of market. My factor book provides the various findings demonstrating unique risks,...
by typical.investor
Sun Jun 16, 2019 10:30 am
Forum: Investing - Theory, News & General
Topic: Alpha Architect: Factor Investing Is More Art, And Less Science
Replies: 1
Views: 212

Re: Alpha Architect: Factor Investing Is More Art, And Less Science

Best quote from the first article was: Sure sounds to me like we are about as close to understanding the science of finance as we are to understanding the science of astrology. Best quote from the second link was: In the end, a factor can only work to the extent they earn a natural risk/mispricing p...
by typical.investor
Sun Jun 16, 2019 12:07 am
Forum: Investing - Theory, News & General
Topic: The Case Against ETFs
Replies: 193
Views: 8202

Re: The Case Against ETFs

I think that the main concern the OP had is that there is now the perception (reality?) that Vanguard is promoting ETFs over mutual funds. The OP wanted to know the rationality behind this decision. I think that his/her concerns could have been addressed more appropriately. Completely false, from t...
by typical.investor
Sat Jun 15, 2019 11:36 pm
Forum: Investing - Theory, News & General
Topic: What is wrong with AQR?
Replies: 128
Views: 6990

Re: What is wrong with AQR?

305 Glad it was helpful. Adding SV tilts provides two ways to use it. First is adding risk and return (so higher return and higher vol if keep market beta the same), OR my preference (certainly in retirement) is to use the higher expected returns to lower beta exposure (the equities you own have hi...
by typical.investor
Sat Jun 15, 2019 12:43 am
Forum: Personal Investments
Topic: [ETF vs. Mutual Fund questions]
Replies: 20
Views: 1035

Re: which is better ETF or MF ???

At Vanguard there is no difference in the tax efficiency of the "mutual" or Exchange Traded version of a fund. For many people, the mechanics of buying and selling the "mutual fund" shares are easier than dealing with ETFs. Dale Assuming of course the fund has an ETF share class. Not all funds at V...
by typical.investor
Fri Jun 14, 2019 11:04 pm
Forum: Personal Investments
Topic: Bond Fund Question - Charles Schwab / Vanguard
Replies: 4
Views: 564

Re: Bond Fund Question - Charles Schwab / Vanguard

SWAGX or SCHZ, which is an ETF, are both 0.040% ER and follow the Bloomberg Barclays US Aggregate Bond Index. So they are extremely similar to the Vanguard fund but hold a little more in US treasuries -- the Vanguard fund follows the Bloomberg Barclays U.S. Aggregate Float Adjusted Index and exclude...
by typical.investor
Fri Jun 14, 2019 8:12 am
Forum: Investing - Theory, News & General
Topic: The Case Against ETFs
Replies: 193
Views: 8202

Re: The Case Against ETFs

I agree that active mutual funds are bad. But I’d argue that “passive” ETFs have encouraged investors to trade more frequently. And this hurts returns. You could argue it, but without any evidence how convinced should anyone be by that argument? SPIVA and DALBAR both report active performance every...
by typical.investor
Thu Jun 13, 2019 8:21 am
Forum: Personal Investments
Topic: Inheritance quadrupled my portfolio--I need advice
Replies: 13
Views: 2823

Re: Inheritance quadrupled my portfolio--I need advice

Is there no-stepped up cost basis on the inherited individual stocks? My understanding was generally the cost basis is the value on the day you inherit them, and thus be able to sell them with minimal gains. Step-Up in Basis If you were to inherit assets that appreciated while they were in possessio...
by typical.investor
Tue Jun 11, 2019 10:31 pm
Forum: Personal Investments
Topic: Triple Levered Retirement Accounts?
Replies: 9
Views: 1131

Re: Triple Levered Retirement Accounts?

Hello all. Really have learned a lot from all of you as I’ve been checking out this forum for awhile and this is my 1st post. Here is my situation: I have low cost index funds in my 401K and my wife does as well. In our taxable account, I feel like I should change the “rules” a bit and focus on fac...
by typical.investor
Tue Jun 11, 2019 4:41 am
Forum: Investing - Theory, News & General
Topic: Excellent Larry Swedroe Podcast Interview: Factors For The Long Run
Replies: 337
Views: 17076

Re: Excellent Larry Swedroe Podcast Interview: Factors For The Long Run

Same thing with investing, smart people when they learn something new that has strong evidence and logic behind it you change your views. Which is it? Factors for the long run? Or change when something new comes along? I don't think "change when something new comes along" quite captures the full me...
by typical.investor
Tue Jun 11, 2019 3:41 am
Forum: Personal Investments
Topic: I wish to set up a trust that uses IB, what paperwork is needed?
Replies: 1
Views: 310

Re: I wish to set up a trust that uses IB, what paperwork is needed?

I think you need legal advice. If you are really setting up a foreign trust, won't the trustee be a foreign person or entity? I presume that's where you'd get the residency. Ah wait... Under prior law, a trust was considered foreign or domestic based upon such factors as the residence of the trustee...
by typical.investor
Mon Jun 10, 2019 8:59 am
Forum: Personal Finance (Not Investing)
Topic: Transferred money from one bank to another, but neither bank has the money
Replies: 10
Views: 1459

Re: Transferred money from one bank to another, but neither bank has the money

I set up 3 transfers from one bank account to an account I have at another bank. The first one I set up to run on the same day, the other two were scheduled on subsequent days. The first one went through fine. For the other two, the sending bank sees them as sent. The receiving bank hasn't received...
by typical.investor
Mon Jun 10, 2019 8:58 am
Forum: Personal Consumer Issues
Topic: I'm thinking about buying a supercar anyone here done this and feedback?
Replies: 233
Views: 11931

Re: I'm thinking about buying an exotic supercar anyone here done this and feedback?

JustinTime wrote:
Mon Jun 10, 2019 8:56 am
She's into horses, so that's her expensive hobby ;)
typical.investor wrote:
Mon Jun 10, 2019 8:52 am
What does the spouse get?

Is the assumption that the spouse wants a supercar too?

Will the spouse worry about you getting carried away?

Just asking ....
Aaah, horsepower.

Ok I see the attraction.
by typical.investor
Mon Jun 10, 2019 8:52 am
Forum: Personal Consumer Issues
Topic: I'm thinking about buying a supercar anyone here done this and feedback?
Replies: 233
Views: 11931

Re: I'm thinking about buying an exotic supercar anyone here done this and feedback?

JustinTime wrote:
Sun Jun 09, 2019 12:24 pm
Hey Everyone,

A little background. I'm married, and 27.
Thanks
What does the spouse get?

Is the assumption that the spouse wants a supercar too?

Will the spouse worry about you getting carried away?

Just asking ....
by typical.investor
Mon Jun 10, 2019 6:59 am
Forum: Investing - Theory, News & General
Topic: Perpetual Withdrawal Rates for 18 Portfolios
Replies: 50
Views: 4829

Re: Perpetual Withdraw Rates for 18 Portfolios

For all the flack that a prominent forum member brings against it, Merriman's Ultimate portfolio would certainly have done a lot better for retirees than the 3-fund; both have a 40% bond allocation. Can you tell me who the forum member is and what his criticism comes down to? I have this question t...
by typical.investor
Mon Jun 10, 2019 2:22 am
Forum: Investing - Theory, News & General
Topic: Perpetual Withdrawal Rates for 18 Portfolios
Replies: 50
Views: 4829

Re: Perpetual Withdrawal Rates for 18 Portfolios

MotoTrojan wrote:
Mon Jun 10, 2019 1:46 am
I feel that a longer timeframe or a variety of lengths would be more meaningful.
It does go up to 40 years.

It's interesting to see the SWR and PRW converge.

This is for my actual allocation.

Image
by typical.investor
Mon Jun 10, 2019 12:30 am
Forum: Investing - Theory, News & General
Topic: Perpetual Withdrawal Rates for 18 Portfolios
Replies: 50
Views: 4829

Re: Perpetual Withdraw Rates for 18 Portfolios

In my opinion these tests are meaningless. Who insisted our portfolio must maintain its starting value despite of our withdrawals? By keeping this unrealistic requirements you bring up lots of witches' brews. Check out the NYTimes for a sad article on the abuse that disabled people in group homes f...
by typical.investor
Fri Jun 07, 2019 11:02 am
Forum: Investing - Theory, News & General
Topic: Excellent Larry Swedroe Podcast Interview: Factors For The Long Run
Replies: 337
Views: 17076

Re: Excellent Larry Swedroe Podcast Interview: Factors For The Long Run

Food for thought. Here is what Fama and French really say about Smart Beta: Smart Beta is Silly Talk If you're going to go this route, and I'm not saying you should are shouldn't, but if you do, know what this is, know the cost, and know the risk. Rick Ferri So to summarize the debate, Rick would s...
by typical.investor
Thu Jun 06, 2019 9:12 am
Forum: Investing - Theory, News & General
Topic: US stocks still look better than anywhere else
Replies: 100
Views: 7533

Re: US stocks still look better than anywhere else

While American outperformance continues to defy history, the rest of the world remains trapped in a bear market. https://www.bloomberg.com/news/articles/2019-06-04/u-s-stocks-still-look-better-than-anywhere-else?srnd=premium Stock markets around the globe, excluding the U.S., remain 25% below the p...
by typical.investor
Thu Jun 06, 2019 8:21 am
Forum: Investing - Theory, News & General
Topic: Excellent Larry Swedroe Podcast Interview: Factors For The Long Run
Replies: 337
Views: 17076

Re: Excellent Larry Swedroe Podcast Interview: Factors For The Long Run

Rick the common criticisms against factor investing/tilting is that 1) it is needlessly complicated, 2) hasn't done all that well for 10+ years leading to tracking error/investor regret/behavioral mistakes, and 3) requires expensive (1%) advisor access often. ... #3 gets less and less accurate by t...
by typical.investor
Thu Jun 06, 2019 7:44 am
Forum: Personal Consumer Issues
Topic: Trip to Watertown, CT
Replies: 12
Views: 725

Re: Trip to Watertown, CT

It's Martha Steward country (she often visits these local shops), so things are very quaint and fairly expensive. Mostly, you will find antique shops, decent restaurants, and some nice hiking/walking/biking. Woodbury (and maybe Southbury) has some nice antique stores, as well as good restaurants/br...
by typical.investor
Tue Jun 04, 2019 5:04 am
Forum: Personal Finance (Not Investing)
Topic: Can I afford this 2.3 million dollar home?
Replies: 251
Views: 21118

Re: Can I afford this 2.3 million dollar home?

Yeah, the time factor is related to the fact that the lot is a rare opportunity, the likes of which will likely be unavailable in the future. The total cost of the project is 2.3 mil including land. So obviously the value of the land can be considered equity in the property. Ok, so buy the lot alre...
by typical.investor
Sun Jun 02, 2019 5:37 am
Forum: Personal Consumer Issues
Topic: Tariffs increase kicking in: who is likely more affected , Costco, Walmart, or dollar general stores (and customers)
Replies: 16
Views: 2006

Re: Tariffs increase kicking in: who is likely more affected , Costco, Walmart, or dollar general stores (and customers)

Since the details of the tariffs haven't even been announced, and since there often seems to be a disconnect between what governments threaten and what they actually end up doing, I don't think this is actionable information. I think the effects are likely to be irregular, surprising, and unpredict...
by typical.investor
Sun Jun 02, 2019 4:03 am
Forum: Personal Consumer Issues
Topic: Tariffs increase kicking in: who is likely more affected , Costco, Walmart, or dollar general stores (and customers)
Replies: 16
Views: 2006

Re: Tariffs increase kicking in: who is likely more affected , Costco, Walmart, or dollar general stores (and customers)

Read article about buying items before tariffs increase cost of items. Started looking at Laptops, Apple hardware, and golf clubs earlier as result. Anyone else moving up purchasing items? Despite the board's general reactions of "ignore news" which seem to conflate stock prices (which do likely ge...
by typical.investor
Wed May 29, 2019 6:00 am
Forum: Non-US Investing
Topic: US expat in australia, question about tax efficiency
Replies: 1
Views: 265

Re: US expat in australia, question about tax efficiency

Hi, I'm a US citizen living in Australia. I have about 1M in cash savings right now. I'm 31, with a medium risk profile, generally looking for something I won't touch for 20+ years. I understand that I should avoid any non-US domicile ETFs because they are PFIC and a pain when it comes to tax retur...
by typical.investor
Mon May 27, 2019 11:28 pm
Forum: Personal Consumer Issues
Topic: How a SIM swap attack works
Replies: 28
Views: 3271

Re: How a SIM swap attack works

For Vanguard users, please write to Tim Buckley requesting the ability to disable SMS backup from Yubikeys. If you do that give him a suggestion on how to reset a customer's online access if the YubiKey is lost. Your answer can't be "there isn't a way". Medallion signature guarantee That could be a...
by typical.investor
Mon May 27, 2019 11:09 pm
Forum: Non-US Investing
Topic: US Taxes + Foreign (NZ) Investing / Is Kiwisaver a PFIC?
Replies: 18
Views: 4145

Re: US Taxes + Foreign (NZ) Investing / Is Kiwisaver a PFIC?

Thanks for the replies and the websites, I had not yet seen fixthetaxtreaty.org yet -- great website. So glad at least some people are making noise about this. It makes living outside of the USA oppressingly prohibitive. I hope that at least the Kiwisaver problem gets fixed. I have looked into a pl...
by typical.investor
Sun May 26, 2019 1:33 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance how to designate an international beneficiary
Replies: 9
Views: 500

Re: Life insurance how to designate an international beneficiary

Life insurance is not part of estate. It is a contract benefiting a third party between the insured and the company. There are no estate taxes on such a transaction add it's not a estate. I believe the concern was if the beneficiaries kept the money in the US. On their death there would be estate t...
by typical.investor
Sun May 26, 2019 1:21 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance how to designate an international beneficiary
Replies: 9
Views: 500

Re: Life insurance how to designate an international beneficiary

Life insurance is not part of estate. It is a contract benefiting a third party between the insured and the company. There are no estate taxes on such a transaction add it's not a estate. I believe the concern was if the beneficiaries kept the money in the US. On their death there would be estate t...
by typical.investor
Sun May 26, 2019 1:18 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance how to designate an international beneficiary
Replies: 9
Views: 500

Re: Life insurance how to designate an international beneficiary

be aware that the estate tax exemption is very low for non-citizens. even if you yourself are a citizen, probably your relatives are not. i'm guessing an insurance payout is not considered part of your estate, but even so, it would become part of your relatives' estate once the policy paid out. not...
by typical.investor
Sat May 25, 2019 10:11 pm
Forum: Personal Investments
Topic: Short term Muni ETF's
Replies: 14
Views: 1453

Re: Short term Muni ETF's

I'd go SMB. Sure SUB is cheaper, more liquid and tracks better, but SHB has better returns nonetheless. Average spread is $0.02. So unless you are really trading large amounts, I am not sure if that will really have an impact. SUB and SHM track to the S&P Short Term National AMT-Free Municipal Bond ...
by typical.investor
Sat May 25, 2019 10:43 am
Forum: Investing - Theory, News & General
Topic: How Much Diversification is Enough?
Replies: 24
Views: 2423

Re: How Much Diversification is Enough?

Sure, I guess I agree. But a big part of low inflation has been increased global integration. With that seemingly poised for at least some degree of rollback, I’m not sure low inflation can be assumed to continue. Tips vs REITS + international + value? I’ll keep the latter. US stocks are priced to r...
by typical.investor
Sat May 25, 2019 12:04 am
Forum: Personal Consumer Issues
Topic: Fly cross-country with a cat
Replies: 56
Views: 2122

Re: Fly cross-country with a cat

Who cares if someone else doesn't like cats? A lot of people don't like tons of other things - people of different races, immigrants, little kids, and whatever. You're not there to please everyone. Flying with a common, clean, domestic pet like a cat out of probable necessity is a socially accepted...
by typical.investor
Fri May 24, 2019 11:48 pm
Forum: Investing - Theory, News & General
Topic: The hidden risk of ETFs
Replies: 9
Views: 1308

Re: The hidden risk of ETFs

There's a much broader risk here than is even implied in the OP's post. Every security you own, whether ETF or not, has loads of counterparty risk. There's a whole chain of trust and custody between we (the investors) and the underlying value we supposedly are entitled to. Securities lending aside,...
by typical.investor
Fri May 24, 2019 9:37 pm
Forum: Personal Consumer Issues
Topic: Fly cross-country with a cat
Replies: 56
Views: 2122

Re: Fly cross-country with a cat

It saddens me to read some of the responses here from people who seem to disregard the fact that there are enough people who are allergic to cats. I am allergic and would never in my wildest dreams have thought I would have to bring allergy medication with me when I fly. As a matter of fact, once s...
by typical.investor
Thu May 23, 2019 8:25 am
Forum: Non-US Investing
Topic: US ETF available for EU investors
Replies: 3
Views: 240

Re: US ETF available for EU investors

Hello Ted, thank you for a quick reply. Could you please explain why unattractive because of US tax? Non-US investor can have w8-ben form signed and if the ETF was bought before this ugly EU regulation we can still hold it until sold. I am not aware something related to taxes has changed since the ...
by typical.investor
Wed May 22, 2019 3:22 am
Forum: Non-US Investing
Topic: US Taxes + Foreign (NZ) Investing / Is Kiwisaver a PFIC?
Replies: 18
Views: 4145

Re: US Taxes + Foreign (NZ) Investing / Is Kiwisaver a PFIC?

I believe it depends on how it’s set up. It also seems the US is improving its ability to detect them. https://www.nzustax.com/us-citizens-kiwisaver/ With information exchange now occurring between the IRD and the US under FATCA, the IRS has dramatically advanced its ability to detect unreported acc...
by typical.investor
Mon May 20, 2019 8:46 am
Forum: Investing - Theory, News & General
Topic: Factor ETFs For Diversification Or “Diworsification”
Replies: 126
Views: 5979

Re: Factor ETFs For Diversification Or “Diworsification”

In any case, if size and value explain 90% of returns for diversified portfolios, then why is a portfolio (as suggested in this thread) of 25% size/value, 25% momentum, 25% low volatility and 25% quality called "diversification"? Why have 75% of your portfolio in the factors that explain 10% of ret...
by typical.investor
Mon May 20, 2019 5:39 am
Forum: Investing - Theory, News & General
Topic: Factor ETFs For Diversification Or “Diworsification”
Replies: 126
Views: 5979

Re: Factor ETFs For Diversification Or “Diworsification”

I see now that French is referring to the low market-to-book portfolios as "growth", so your confusion is understandable. My confusion? Pardon me. Either way, I think it's important that you read the papers to see what it is being done so that you can understand this stuff for yourself. You'll see ...
by typical.investor
Mon May 20, 2019 4:28 am
Forum: Investing - Theory, News & General
Topic: Factor ETFs For Diversification Or “Diworsification”
Replies: 126
Views: 5979

Re: Factor ETFs For Diversification Or “Diworsification”

The value factor is HML. HML (High Minus Low) is the average return on the two value portfolios minus the average return on the two growth portfolios, HML = 1/2 (Small Value + Big Value) - 1/2 (Small Growth + Big Growth). Sorry, that's simply incorrect. Whatever source you're referring to has got i...
by typical.investor
Mon May 20, 2019 4:13 am
Forum: Investing - Theory, News & General
Topic: Factor ETFs For Diversification Or “Diworsification”
Replies: 126
Views: 5979

Re: Factor ETFs For Diversification Or “Diworsification”

Are we intentionally ignoring how factors are constructed now? On the contrary, I'm paying very close attention to the way that factors are constructed. Take a look at the datasets provided by Ken French , AQR , MSCI , or Alpha Architects and find the returns for a "growth factor". Or read Fama & F...
by typical.investor
Mon May 20, 2019 3:46 am
Forum: Investing - Theory, News & General
Topic: Factor ETFs For Diversification Or “Diworsification”
Replies: 126
Views: 5979

Re: Factor ETFs For Diversification Or “Diworsification”

Growth isn't a factor, but neither is value in my context. Reality is the only "context" I'm interested in, and in reality you're half right: growth isn't a factor, but value most certainly is. Silly. Are we intentionally ignoring how factors are constructed now? If the value premium is negative, i...
by typical.investor
Mon May 20, 2019 2:32 am
Forum: Non-US Investing
Topic: Leaving the country, to sign up for Fidelity or for Schwab
Replies: 6
Views: 1023

Re: Leaving the country, to sign up for Fidelity or for Schwab

I heard these two work well for resident with a EU address. I mostly plan to buy bonds/bond funds, low six digit figure. Do you have some preference? Am with Schwab International so obviously that's my preference. Will Fidelity really take you? In any case, I am not sure of the timing of signing up...
by typical.investor
Mon May 20, 2019 1:58 am
Forum: Personal Investments
Topic: alternatives to 529 plans
Replies: 44
Views: 2212

Re: alternatives to 529 plans

As per this comparison, Nevada plan wins against California plan in terms fees & expenses: https://vanguard.wealthmsi.com/comp529main.php?vang1=NV2&planid1=CA2&planid2= Which seems obvious given NV plan offers Vanguard funds. I didn't like the NV plan. It has poor choices for short-term fixed incom...
by typical.investor
Mon May 20, 2019 1:39 am
Forum: Investing - Theory, News & General
Topic: Factor ETFs For Diversification Or “Diworsification”
Replies: 126
Views: 5979

Re: Factor ETFs For Diversification Or “Diworsification”

Which definition of risk supports the assertion that value funds are riskier? Losing? Well aren't companies with a higher book much more difficult to evaluate should the need to liquidate arise. You have to sell equipment that was obtained for a particular purpose into perhaps a depressed market. W...
by typical.investor
Mon May 20, 2019 1:21 am
Forum: Investing - Theory, News & General
Topic: Factor ETFs For Diversification Or “Diworsification”
Replies: 126
Views: 5979

Re: Factor ETFs For Diversification Or “Diworsification”

Small growth funds have had more volatlity than small value in most cases. Not sure why I keep hearing that small value is riskier. I think the idea is that value stocks have a risk that is not reflected by volatility. Could be something like all the this time it is different narratives end up bein...
by typical.investor
Sun May 19, 2019 9:01 am
Forum: Personal Investments
Topic: I'm 37, late to the game, worth about 35k...
Replies: 42
Views: 7227

Re: I'm 37, late to the game, worth about 35k...

Contribution to a Roth IRA requires earned income. I don’t believe there is any requirement that it has to be earned within US, or that you have to have “taxed” income (meaning you paid non-zero taxes to the US government). Unless you have been just living off your investments for the past few year...
by typical.investor
Sun May 19, 2019 6:04 am
Forum: Investing - Theory, News & General
Topic: High commissions ($15 + .1%). Add less frequently?
Replies: 5
Views: 509

Re: High commissions ($15 + .1%). Add less frequently?

In general, you should not have to pay any commission at all. In the event there is something you really want that you cannot get without commission, try to buy it only once or twice a year. What situation are you in that you think a commission is necessary? I think the OP wants to use a non-US bro...