Search found 18 matches

by mlz
Mon Jul 30, 2018 11:49 am
Forum: Personal Consumer Issues
Topic: ACT test - got 34, try for 36?
Replies: 61
Views: 7528

Re: ACT test - got 34, try for 36?

Standardized test scores are very noisy measurements of the student's intrinsic abilities. Proof? If test scores were noiseless measurements, everyone's super score would just equal to the highest single-sitting score. Think of it this way: your kid has some internal intrinsic score, which is measur...
by mlz
Fri Jul 27, 2018 9:11 am
Forum: Personal Consumer Issues
Topic: Toughest Purchase of my Life. Engagement Ring time
Replies: 229
Views: 17972

Re: Toughest Purchase of my Life. Engagement Ring time

What's the point of insuring a ring? Insurance, of necessity, is a losing proposition, but allow you to meet sudden high expenses. Replacing an $8000 ring doesn't seem to meet that definition. One, it's not a tremendously high cost, or at least it shouldn't be for a Boglehead who's presumably not l...
by mlz
Thu Jul 26, 2018 6:06 pm
Forum: Personal Consumer Issues
Topic: Engineers come in.
Replies: 108
Views: 8900

Re: Engineers come in.

I will go against the grain here. I did my CSEE in 2006-2009, and I absolutely cruised through the first year and half (on a double courseload, no less!). The classes will get drastically harder as things go on; intro calc is child's play compared to the upper division math classes that you will be...
by mlz
Thu Jul 26, 2018 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance and order of deaths
Replies: 49
Views: 3462

Re: Inheritance and order of deaths

Trying to make everything square to the penny with everybody is impossible and probably not fair (or I guess the preferred term is "equitable") anyway. My wife's mother passed away last year. My wife spent countless hours, easily full time for six months, sorting out her mother's affairs....
by mlz
Wed Jul 25, 2018 6:34 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance and order of deaths
Replies: 49
Views: 3462

Re: Inheritance and order of deaths

I've recently had some discussions with family members about their wills and trusts. My wife and I haven't set anything up yet, so it's got me reading up on estate planning. Something that many articles discuss is "fairness", that is, that different descendants receive "fair" sh...
by mlz
Wed Jul 25, 2018 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance and order of deaths
Replies: 49
Views: 3462

Re: Inheritance and order of deaths

There are no "discontinuities" if you change your will each time your family situation changes. That's exactly what many people do when the change in situation means their will no longer suits their desires. Forgetting to do so is where people mess up. Depends how you change your will. An...
by mlz
Wed Jul 25, 2018 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance and order of deaths
Replies: 49
Views: 3462

Re: Inheritance and order of deaths

People need to be attentive to their estate plans, wills, and account beneficiary designations. Any time a death of a potential beneficiary of an estate occurs others need to consider how that may impact their own estate planning. The only ways to avoid this kind of "maintenance" is to no...
by mlz
Wed Jul 25, 2018 10:47 am
Forum: Personal Finance (Not Investing)
Topic: Inheritance and order of deaths
Replies: 49
Views: 3462

Inheritance and order of deaths

I've recently had some discussions with family members about their wills and trusts. My wife and I haven't set anything up yet, so it's got me reading up on estate planning. Something that many articles discuss is "fairness", that is, that different descendants receive "fair" sha...
by mlz
Mon Jul 23, 2018 8:11 am
Forum: Personal Consumer Issues
Topic: Engineers come in.
Replies: 108
Views: 8900

Re: Engineers come in.

So my question for engineers out there, are those who are "wired" for this field just suppose to be able to cruise through it like he thinks he needs to or does being confused, needing to study, and having trouble all part of the curve? Yes, some people are wired for certain subjects. In ...
by mlz
Mon Jul 16, 2018 9:38 am
Forum: Personal Finance (Not Investing)
Topic: How often do you buy a primary residence?
Replies: 46
Views: 4451

Re: How often do you buy a primary residence?

"We bought the original house for $X and we sold it for $1.08X (all transaction costs are deducted). Our new house costs $1.05X so we didn't really make any money BUT we literally lived 5 years in a brand new construction for free. That's what matters - our primary residence will never get old...
by mlz
Mon Jul 16, 2018 9:15 am
Forum: Personal Finance (Not Investing)
Topic: Are Credit Cards Actually Convenient?
Replies: 91
Views: 7915

Re: Are Credit Cards Actually Convenient?

On a trip to Austria a couple years ago, my card was declined by multiple merchants. I suspect this was an issue with the compatibility of the European chip-and-pin system with the American chip-and-signature system at the time, as the rejection was happening on the merchants's end (my cc company wa...
by mlz
Mon Jul 16, 2018 9:03 am
Forum: Investing - Theory, News & General
Topic: Market cap weighting vs rebalancing
Replies: 16
Views: 2120

Re: Market cap weighting vs rebalancing

Thanks for the info! Here is an additional point of confusion: Consider the following two possible markets: - Market 1: The market consists of just two companies, A and B. Both companies are quite large, and have identical projected returns x% per year, since they are both considered identically ris...
by mlz
Thu Jul 12, 2018 9:49 am
Forum: Personal Consumer Issues
Topic: Which degree to pursue?
Replies: 18
Views: 1802

Re: Which degree to pursue?

Would having too many degrees be viewed negatively? Potentially relevant story: My dad loved school, and collected many degrees. After several years of working as an engineer, he went to law school to get a JD to become a lawyer. Then some years later, he decided to get an LLM, which is an advanced...
by mlz
Thu Jul 12, 2018 9:27 am
Forum: Personal Consumer Issues
Topic: Is expensive olive oil worth it?
Replies: 63
Views: 8393

Re: Is expensive olive oil worth it?

In my experience, there is a definitely taste difference between different olive oils. We buy our oil from a boutique olive oil shop in town that lets us taste-test, and when comparing side-by-side we can notice a difference between their oils. That said, once we get home (and don't have the side-by...
by mlz
Wed Jul 11, 2018 7:06 pm
Forum: Investing - Theory, News & General
Topic: Market cap weighting vs rebalancing
Replies: 16
Views: 2120

Re: Market cap weighting vs rebalancing

If one, and let's confine ourselves to US stock exchanges for the moment although the reasoning transfers to many other markets, adopts an allocation other than the cap-weighted market portfolio one can expect gross returns different from it. They may be higher or lower. The ones who get less have ...
by mlz
Wed Jul 11, 2018 6:05 pm
Forum: Investing - Theory, News & General
Topic: Market cap weighting vs rebalancing
Replies: 16
Views: 2120

Re: Market cap weighting vs rebalancing

Thanks everyone for the responses! I should have noted that I'm much too lazy to try anything more adventurous than a few passive index funds :D. I have little interest in trying to highly optimize my own portfolio. However, I'm fascinated by the theory behind things (I joke with my wife that "...
by mlz
Wed Jul 11, 2018 3:24 pm
Forum: Investing - Theory, News & General
Topic: Market cap weighting vs rebalancing
Replies: 16
Views: 2120

Market cap weighting vs rebalancing

Short version: market cap-weighting a fund seems to run counter to the general principle that periodic rebalancing improves returns for a given level of risk. While market-cap weighting is great from an efficiency perspective, it seems sub-optimal in terms of risk-reward trade-offs. Are there other ...
by mlz
Tue Jul 10, 2018 4:40 pm
Forum: Investing - Theory, News & General
Topic: Six stocks make up 98% of S&P 500 gains in 2018
Replies: 100
Views: 17397

Re: Six stocks make up 98% of S&P 500 gains in 2018

I suspect the 98% number is relatively meaningless. Based on the numbers given in the article, it looks like each company's contribution to S&P 500 returns as w * r / R, where: - w is the weight of that company in the S&P500 - r is the return of that company for the last year - R is the tota...