Search found 30 matches

by HootingSloth
Sun Nov 10, 2019 12:38 pm
Forum: Personal Investments
Topic: Bond for a recovering "xen of bad choices"
Replies: 15
Views: 1500

Re: Bond for a recovering "xen of bad choices"

Hi, annu. You may find this thread helpful: https://www.bogleheads.org/forum/viewtopic.php?t=289693. Tyler Aspect's advice to put bonds in a tax deferred account is often, but not always correct, and is less likely to be correct for individuals in the top tax bracket during a low interest rate envir...
by HootingSloth
Tue Oct 08, 2019 1:14 pm
Forum: Investing - Theory, News & General
Topic: Statistics question
Replies: 33
Views: 2804

Re: Statistics question

Is it possible to work out what the expected return would be at the 1st and 5th percentile for a portfolio with an expected return and standard deviation of 5.8% and 11.4%? I'd like to calculate those returns expected in 5 and 10 years. Thankyou Kelly Assuming that the expected return and standard ...
by HootingSloth
Mon Oct 07, 2019 12:04 pm
Forum: Personal Investments
Topic: Excellent Adventure in Taxable?
Replies: 27
Views: 3443

Re: Excellent Adventure in Taxable?

Hi, For a small part of my portfolio I want to be in HEDGEFUNDIE's Excellent Adventure. (I understand that it's risky and the money I'm allocating shouldn't impact my finances if doesn't work out). I have a Vanguard taxable account (with VTSAX) that I am transferring to M1 Finance. I'm requesting s...
by HootingSloth
Mon Sep 23, 2019 5:12 pm
Forum: Investing - Theory, News & General
Topic: Jeremy Siegel Wisdom Tree ETFs
Replies: 20
Views: 2041

Re: Jeremy Siegel Wisdom Tree ETFs

HEDGEFUNDIE, what is a suitable benchmark for a risk parity portfolio using 3x leveraged ETFs? :P Everything really depends on the question you are asking and the goals you have, I suppose. My point was that we know what strategy this fund is trying to follow, and it has so far had the performance y...
by HootingSloth
Mon Sep 23, 2019 8:22 am
Forum: Investing - Theory, News & General
Topic: Jeremy Siegel Wisdom Tree ETFs
Replies: 20
Views: 2041

Re: Jeremy Siegel Wisdom Tree ETFs

NTSX has tripled the return of the S&P 500 since inception: https://www.portfoliovisualizer.com/fund-performance?s=y&symbol=NTSX&benchmark=SPY Can we fairly evaluate WisdomTree as a provider, on the basis of a) thirteen months' performance in b) a single one of its eighty ETF products, with c) $0.0...
by HootingSloth
Sat Sep 21, 2019 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Tax avoidance and estate planning ‘for the rich’?
Replies: 61
Views: 6508

Re: Tax avoidance and estate planning ‘for the rich’?

Many strategies involve relying on non-recognition provisions for corporations and partnerships in order to defer taxation of proceeds from the sale of a business (you can look up, for example, reverse Morris Trust or leveraged mixing bowl transactions) that obviously can't benefit individuals who d...
by HootingSloth
Sun Sep 15, 2019 9:56 am
Forum: Investing - Theory, News & General
Topic: How do You Evaluate Ability and Willingness to Take Risks Associated with Factor Investing
Replies: 48
Views: 1671

Re: How do You Evaluate Ability and Willingness to Take Risks Associated with Factor Investing

Dave, I think that your conclusion is only correct if a "true factor believer" means someone who believes behavior-based explanations of factor returns. You also seem to be expressing a view where there is one relevant dimension of portfolio risk--volatility--when you are referring to a "less risky...
by HootingSloth
Sun Sep 15, 2019 9:15 am
Forum: Investing - Theory, News & General
Topic: How do You Evaluate Ability and Willingness to Take Risks Associated with Factor Investing
Replies: 48
Views: 1671

Re: How do You Evaluate Ability and Willingness to Take Risks Associated with Factor Investing

But whereas it's fairly easy for 3 fund proponents to identify those who should be over or under exposed to beta, based on their personal situation (and generally using bonds to fill out the lower-risk portion of their portfolio, as you've mentioned), it's MUCH harder to identify those who both: 1)...
by HootingSloth
Sun Sep 15, 2019 9:10 am
Forum: Investing - Theory, News & General
Topic: How do You Evaluate Ability and Willingness to Take Risks Associated with Factor Investing
Replies: 48
Views: 1671

Re: How do You Evaluate Ability and Willingness to Take Risks Associated with Factor Investing

I pretty much like this description. At the end of the day risk in the context of asset allocation is still volatility (perhaps measured by SD of annual returns) and the answer is that after looking at the risk and return of your factor allocated portfolio you decide on how much return you need and...
by HootingSloth
Sun Sep 15, 2019 8:17 am
Forum: Investing - Theory, News & General
Topic: How do You Evaluate Ability and Willingness to Take Risks Associated with Factor Investing
Replies: 48
Views: 1671

Re: How do You Evaluate Ability and Willingness to Take Risks Associated with Factor Investing

Thanks for the thoughtful comments, XacTactX. I get the sense from reading Larry Swedroe's writings that he emphatically disagrees with Fama's belief that for every investor that ought to rationally invest on one side of a factor there should be another investor that ought to rationally take the oth...
by HootingSloth
Fri Sep 13, 2019 6:10 pm
Forum: Investing - Theory, News & General
Topic: How do You Evaluate Ability and Willingness to Take Risks Associated with Factor Investing
Replies: 48
Views: 1671

Re: How do You Evaluate Ability and Willingness to Take Risks Associated with Factor Investing

Thanks, that also seems consistent with Horton's comment that these kinds of strategies may make the most sense when you are approaching and at the start of decumulation.
by HootingSloth
Fri Sep 13, 2019 5:52 pm
Forum: Investing - Theory, News & General
Topic: How do You Evaluate Ability and Willingness to Take Risks Associated with Factor Investing
Replies: 48
Views: 1671

Re: How do You Evaluate Ability and Willingness to Take Risks Associated with Factor Investing

But to be honest I suspect the most important thing that a potential multi-factor investor needs to be aware of about their utility function is how sensitive they are to things like confirmation bias, regret, and/or groupthink. Because constructing a portfolio that looks different from the market i...
by HootingSloth
Fri Sep 13, 2019 5:33 pm
Forum: Investing - Theory, News & General
Topic: How do You Evaluate Ability and Willingness to Take Risks Associated with Factor Investing
Replies: 48
Views: 1671

Re: How do You Evaluate Ability and Willingness to Take Risks Associated with Factor Investing

Apologies if I am derailing the discussion, but perhaps it's better to first agree upon the definition of "risk". For many, risk seems to be mostly (entirely?) focused entirely on volatility. Personally, I define risk in more simple terms - "will I be able to achieve my personal goals?" When viewed...
by HootingSloth
Fri Sep 13, 2019 5:29 pm
Forum: Investing - Theory, News & General
Topic: How do You Evaluate Ability and Willingness to Take Risks Associated with Factor Investing
Replies: 48
Views: 1671

Re: How do You Evaluate Ability and Willingness to Take Risks Associated with Factor Investing

Pretty much, factor funds would be no more than 50% of a stock portfolio, the rest would be in the Broad Indexes. Alternatives, whether the Liquid Alts and/or Interval Funds would be 10% to 20% of a portfolio if you used them at all. Your bond investments would be pretty plain vanilla, The so-calle...
by HootingSloth
Fri Sep 13, 2019 3:46 pm
Forum: Investing - Theory, News & General
Topic: How do You Evaluate Ability and Willingness to Take Risks Associated with Factor Investing
Replies: 48
Views: 1671

Re: How do You Evaluate Ability and Willingness to Take Risks Associated with Factor Investing

I want to start my answer here, but because I think this assumption (" it is very easy to understand the nature of the risk" in a single-factor CAPM) glosses over the fact that it would be virtually impossible for an individual investor to objectively choose a portfolio even in such an environment....
by HootingSloth
Fri Sep 13, 2019 3:18 pm
Forum: Investing - Theory, News & General
Topic: How do You Evaluate Ability and Willingness to Take Risks Associated with Factor Investing
Replies: 48
Views: 1671

Re: How do You Evaluate Ability and Willingness to Take Risks Associated with Factor Investing

Count me among the factor skeptics, so I am going against your recommendation for folks such as I to ignore this thread. The input is still very much appreciated, thanks. :sharebeer For what it is worth, I do not personally have any factor tilts in my portfolio, and would only be willing to switch ...
by HootingSloth
Fri Sep 13, 2019 1:34 pm
Forum: Investing - Theory, News & General
Topic: How do You Evaluate Ability and Willingness to Take Risks Associated with Factor Investing
Replies: 48
Views: 1671

How do You Evaluate Ability and Willingness to Take Risks Associated with Factor Investing

For those of you who have decided to adopt factor investing because of a desire to diversify across multiple distinct sources of risk, how do you evaluate your ability and willingness to take on risks associated with factors other than market beta? This question comes from a perspective that factor ...
by HootingSloth
Wed Sep 04, 2019 9:02 am
Forum: Investing - Theory, News & General
Topic: For those who have bonds in taxable, why and which ones?
Replies: 42
Views: 3682

Re: For those who have bonds in taxable, why and which ones?

While the recommendation for bonds in tax-deferred is a general recommendation, it isn't always correct. There are several reasons bonds in taxable might be better: Low bond yields reducing the tax cost of bonds (currently the case). A 401(k) with better stock than bond options. High tax rates on q...
by HootingSloth
Sun Sep 01, 2019 7:53 am
Forum: Investing - Theory, News & General
Topic: Jason Zweig in Today's WSJ Discusses Target Retirement Funds
Replies: 54
Views: 8135

Re: Jason Zweig in Today's WSJ Discusses Target Retirement Funds

Effectively what TDFs seem to do during market dives is not so much ¨locking in losses¨ as Rick suggested above, but simply not fully rebalancing back into stocks because the desired equity percentage is now lower than before. So, as you point out with your numerical example, those whose TDFs had t...
by HootingSloth
Fri Aug 23, 2019 8:25 am
Forum: Personal Finance (Not Investing)
Topic: CPA Tax question about "Temporary 100 percent expensing for certain business assets (first-year bonus depreciation)"
Replies: 8
Views: 407

Re: CPA Tax question about "Temporary 100 percent expensing for certain business assets (first-year bonus depreciation)"

It turns out that this may be extremely tricky and you will have to do more research. I got some help from someone teaching me how to fish and he sent me the e-mail below. Did you update TurboTax recently? Did Intuit act on anything since then? Were the proposed rule changes actually implemented? S...
by HootingSloth
Wed Aug 21, 2019 3:53 pm
Forum: Personal Investments
Topic: When Did You Ease Up On Saving Aggressively?
Replies: 170
Views: 13796

Re: When Did You Ease Up On Saving Aggressively?

I hope this question is appropriate to tackle here rather than in a separate thread. How do people feel about the other side of the same coin: when would you ease up on earning? Let's say that, through a high savings rate (~40% of gross income), you have saved up 12x or 13x expenses in your 30s so t...
by HootingSloth
Sat Aug 10, 2019 12:44 pm
Forum: Investing - Theory, News & General
Topic: Why do dividends still exist?
Replies: 204
Views: 12579

Re: Why do dividends still exist?

The tax differences between buybacks and dividends are sometimes overstated. A stock redemption must be "substantially disproportionate" or it will be taxed as a dividend. If a corporation wants to return capital to all shareholders proportionately, or nearly proportionally, there would be no tax di...
by HootingSloth
Fri Aug 02, 2019 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: Buying $20k worth of mortgage points.
Replies: 47
Views: 3577

Re: Buying $20k worth of mortgage points.

One other wrinkle to consider: You should try to evaluate the break even date for buying points versus increasing your down payment on an after-tax basis, which can make buying points look relatively more favorable, especially after tax reform. Because of the SALT limit and higher standard deduction...
by HootingSloth
Fri Apr 05, 2019 2:12 pm
Forum: Personal Investments
Topic: Disastrous amount of brokerage transfer fee slapped by Trade Station?
Replies: 18
Views: 1309

Re: Disastrous amount of brokerage transfer fee slapped by Trade Station?

My suggestion at this point, since it sounds like your money is at Merrill now, would be to buy a three fund portfolio at Merrill, and consider the various fees you paid getting to this point to be a lesson that you had to learn to become a good investor. +1. Go ahead and see if you can get the fee...
by HootingSloth
Fri Mar 01, 2019 10:38 am
Forum: Personal Finance (Not Investing)
Topic: Which dept to pay down 1st? Mortgage w/pmi or student loan?
Replies: 10
Views: 821

Re: Which dept to pay down 1st? Mortgage w/pmi or student loan?

I think the effective interest rate of mortgage w/PMI is right at 5.75%. This is after deducting the interest on taxes. Does this sound about right? If so, sounds like this might be the best thing to tackle 1st. The student loan seems better to me. I believe that mortgage prepayments will not have ...
by HootingSloth
Mon Feb 18, 2019 11:38 am
Forum: Personal Finance (Not Investing)
Topic: What net worth supersedes Bogleheads’s strategy
Replies: 123
Views: 11046

Re: What net worth supersedes Bogleheads’s strategy

- And your compensation package includes all insurances required (added income) - your housing costs are low for a metro area - Utilities are extremely low for a metro area ($1K is not enough for cell service here) - Your numbers do not account for children , for care, for absence during and after ...
by HootingSloth
Mon Feb 18, 2019 10:57 am
Forum: Personal Finance (Not Investing)
Topic: What net worth supersedes Bogleheads’s strategy
Replies: 123
Views: 11046

Re: What net worth supersedes Bogleheads’s strategy

Probably the least "extraordinary" path for two married professionals who LBTM is to live off of the lower-paid spouse's salary and save the higher-paid spouse's salary. For two married lawyers, it is not terribly extraordinary to have student loans paid off by about 30 after 5 years of working. Sa...
by HootingSloth
Mon Feb 18, 2019 10:22 am
Forum: Personal Finance (Not Investing)
Topic: What net worth supersedes Bogleheads’s strategy
Replies: 123
Views: 11046

Re: What net worth supersedes Bogleheads’s strategy

Probably the least "extraordinary" path for two married professionals who LBTM is to live off of the lower-paid spouse's salary and save the higher-paid spouse's salary. For two married lawyers, it is not terribly extraordinary to have student loans paid off by about 30 after 5 years of working. Say...
by HootingSloth
Wed Feb 06, 2019 5:32 pm
Forum: Personal Finance (Not Investing)
Topic: Employer wants to borrow $50k
Replies: 51
Views: 3105

Re: Employer wants to borrow $50k

First, I agree with everyone else that you should not do this. Second, the market terms for a loan of this nature (by all appearances a bridge loan for a distressed business seeking to avoid bankruptcy) are probably more like a 12-15% interest rate, along with a first priority lien on all assets of ...
by HootingSloth
Mon Jan 28, 2019 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct problems? Anyone have success with a return which includes "backdoor" Roth reporting?
Replies: 62
Views: 4646

Re: TaxAct problems? Anyone have success with a return which includes "backdoor" Roth reporting?

I am having what sounds like the exact same problem. Whenever I try to enter in a non-deductible traditional IRA contribution, the software says "Saving..." indefinitely. When I log back in, it is then unable to open my return for a number of hours.