Search found 52 matches

by HootingSloth
Tue Aug 04, 2020 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: I was recently given a 14% raise and...
Replies: 46
Views: 5927

Re: I was recently given a 14% raise and...

For what it is worth, I work in an industry and position where most people leave after a few years for a job that pays substantially less. So I have always expected my salary to go down, but it has continued ratcheting up significantly each year for the last decade or so. Our household income has in...
by HootingSloth
Tue Aug 04, 2020 10:32 am
Forum: Investing - Theory, News & General
Topic: What Would Be Your US/Int Equity Split If You Lived Outside US?
Replies: 58
Views: 2485

Re: What Would Be Your US/Int Equity Split If You Lived Outside US?

I would listen to siamond's wonderful analysis on the blog and do what I do now: invest 80% in proportion to global market cap plus a 20% tilt towards stocks in countries with the same currency as mine.
by HootingSloth
Thu Jul 23, 2020 12:29 pm
Forum: Personal Investments
Topic: Inherited taxable gains - liquidate to simplify or not?
Replies: 14
Views: 747

Re: Inherited taxable gains - liquidate to simplify or not?

If the stepped up basis started in January 2020 I'm not sure any gains since then would be counted as long term. Your holding period would be only 6 months and any gain since January would be counted as short term. If you have short term gains of ~45K I would definitely wait till next year. Maybe s...
by HootingSloth
Thu Jul 23, 2020 10:44 am
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 1548
Views: 204720

Re: Post your Financial Milestone Announcements Here

Just realized this morning that we are able to comfortably live on my wife's salary alone. We are saving and investing over 100% of mine now. Given our relative job stability (hers being high and mine being not so much, currently) - this particular milestone definitely feels good. Thank you, Bogleh...
by HootingSloth
Thu Jul 16, 2020 4:23 pm
Forum: Personal Consumer Issues
Topic: Kitchen Cabinets
Replies: 28
Views: 2858

Re: Kitchen Cabinets

We did IKEA cabinet boxes with custom fronts from Semihandmade. We were very happy with the results. Excellent balance between cost and getting the look that you want.
by HootingSloth
Thu Jul 02, 2020 6:28 pm
Forum: Investing - Theory, News & General
Topic: The magic of stock indices
Replies: 29
Views: 2019

Re: The magic of stock indices

However, there just is not that much "magic" required. Essentially all of the improvement would be captured by a rule that says to add any corporation whose common shares become listed on one of a handful of public exchanges. Correct. You'll definitely have some shares of the winners in your index....
by HootingSloth
Thu Jul 02, 2020 12:40 pm
Forum: Investing - Theory, News & General
Topic: The magic of stock indices
Replies: 29
Views: 2019

Re: The magic of stock indices

You are correct that the indexes would not have done nearly as well if there were never any additions of ne companies to the indexes from the date they were first implemented. However, there just is not that much "magic" required. Essentially all of the improvement would be captured by a rule that s...
by HootingSloth
Fri Jun 12, 2020 12:19 pm
Forum: Personal Investments
Topic: Douglas Theory Investing
Replies: 10
Views: 723

Re: Douglas Theory Investing

Seconding RadAudit , this sounds like an iteration of the old “Dogs of the Dow” strategy. Now someone wants to promote the “Nobility of the NASDAQ?”* *(I’m killing myself here as I can’t come up with a synonym for “large” that begins with the letter n . Any help here, logophiles?). My vote is for "...
by HootingSloth
Tue Jun 09, 2020 11:12 am
Forum: Personal Investments
Topic: A Prodigal Boglehead Returns (poorer)
Replies: 32
Views: 4798

Re: A Prodigal Boglehead Returns (poorer)

I also put in a market order during a TLH and got rocked again, the volatility that day was so great in minutes I had lost thousands again. Getting burned in a similar way is one factor that made me really learn to love Vanguard's mutual funds instead of ETFs. I managed to TLH on a day where there ...
by HootingSloth
Sun Jun 07, 2020 4:00 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 3136
Views: 543189

Re: What are you up YTD? [Year To Date]

Using Beardstown math, I am up about 10% YTD and up about 5% from the all time highs. My asset allocation is 80/20 (but I only rebalanced through contributions because they kept me pretty close to target). It felt somewhat strange to lose almost three years of spending and then gain it back in the s...
by HootingSloth
Sat Jun 06, 2020 11:32 am
Forum: Personal Investments
Topic: Is there a retirement savings "crunch time"- and are we in it??
Replies: 30
Views: 3731

Re: Is there a retirement savings "crunch time"- and are we in it??

Thank you for the replies and examples of how others have considered the early/middle/later years of savings towards retirement goals. Sorry if this post came across the wrong way - was not intended. Up to this point it has just been save as much as possible with no specific plan for later. I've be...
by HootingSloth
Fri Jun 05, 2020 1:42 pm
Forum: Investing - Theory, News & General
Topic: Anyone not bother with Tax Loss Harvesting?
Replies: 116
Views: 7337

Re: Anyone not bother with Tax Loss Harvesting?

If you are 70 and have $1,000,000 and a $1,000 loss living on SS and dividend income then it probably doesn't matter much. If you are 40 and have $250,000 and a $125,000 loss and are in a federal/state 40%+ marginal tax rate it can make a bigger difference. Ah -- good point. I'm 31 and my biggest l...
by HootingSloth
Sat May 23, 2020 12:52 pm
Forum: Investing - Theory, News & General
Topic: The Taleb Asness 'debate' in the light of Bogleheads philosophy
Replies: 146
Views: 7366

Re: The Taleb Asness 'debate' in the light of Bogleheads philosophy

At least to me, there seems to be a disconnect between Taleb and Mandelbrot's narrative books and the actual academic financial literature. If you read Taleb or Mandelbrot, you might get the impression that everyone goes around blithely assuming that changes in the prices of financial assets follow ...
by HootingSloth
Sat May 09, 2020 7:30 pm
Forum: Personal Finance (Not Investing)
Topic: Very Low Student Loan Interest Rate - Invest Instead?
Replies: 34
Views: 1974

Re: Very Low Student Loan Interest Rate - Invest Instead?

For what it is worth, I have been in biglaw now for many years, graduating shortly after the global financial crisis. I applied a laser focus early on to paying off my loans in full. In retrospect, I would have ended up getting a far higher return if I had invested more early on, but I have never fo...
by HootingSloth
Fri May 01, 2020 11:20 am
Forum: Investing - Theory, News & General
Topic: The Bottom Line on Factor Investing
Replies: 290
Views: 12775

Re: The Bottom Line on Factor Investing

Here is the bottom line on factor investing for me: There is strong evidence that the portfolio that is most likely to maximize the Sharpe ratio (i.e., have the best trade-off between "risk" and return where "risk" is, for this purpose, defined solely in terms of variance) over sufficiently long per...
by HootingSloth
Mon Mar 23, 2020 2:27 pm
Forum: Investing - Theory, News & General
Topic: Young investors, how do you feel about your 1st market crash?
Replies: 132
Views: 9143

Re: Young investors, how do you feel about your 1st market crash?

Wife and I are 33. Before this decline, we were investing about two-thirds of our take home pay into stocks and bonds at the percentages my spreadsheet would spit out. Now, we are investing about two-thirds of our take home pay all into stocks because the spreadsheet says that is where the money sho...
by HootingSloth
Thu Feb 27, 2020 12:59 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 19474
Views: 2696841

Re: U.S. stocks in free fall

I am buying more during Corona dip. Reasons: 1) Vaccine will most likely be found in following months; 2) Panic means blood in streets means -> buy the dip; 3) US will keep printing money; 4) What are alternatives if not stocks? 5) Even if 5%-10% people die Apple will still produce computers, Coca ...
by HootingSloth
Mon Feb 24, 2020 12:33 pm
Forum: Personal Consumer Issues
Topic: Relocating back east / Fair Lawn, NJ / Are we crazy?
Replies: 104
Views: 6734

Re: Relocating back east / Fair Lawn, NJ / Are we crazy?

I grew up in a house within walking distance of Fair Lawn. Absolutely a wonderful area for children. The high cost of living has not prevented my parents from deciding to stay.
by HootingSloth
Wed Feb 12, 2020 5:01 pm
Forum: Investing - Theory, News & General
Topic: Can a company buy itself?
Replies: 31
Views: 2059

Re: Can a company buy itself?

I am imagining a company decides to use its cash, or some of it, to buy back all of its shares--and it succeeds in doing so. ... [N]ow they are a for-profit company with literally no owner. You are missing that the cash of the company is owned by the shareholders. The last shareholder cannot sell h...
by HootingSloth
Mon Feb 10, 2020 3:56 pm
Forum: Investing - Theory, News & General
Topic: 15 years from retirement. What AA?
Replies: 22
Views: 1547

Re: 15 years from retirement. What AA?

If you are only investing $10,000 a year now, and will only be investing $10,000 a year for the next four years, then your AA over the next four years will be essentially irrelevant. Future contributions are going to totally swamp different investment returns from different AAs over this initial tim...
by HootingSloth
Mon Dec 16, 2019 11:25 pm
Forum: Personal Investments
Topic: Pay Student Loans before Starting Taxable Investments?
Replies: 44
Views: 1822

Re: Pay Student Loans before Starting Taxable Investments?

Just for another personal perspective, my wife and I graduated law school with a little over $300k in student loan debt at a similar interest rate. We decided to mostly focus on paying it down rapidly and finished paying it off several years ago. With the benefit of hidsight, we know that we would h...
by HootingSloth
Fri Dec 06, 2019 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Your credit card debt dies when you die (usually)
Replies: 128
Views: 6336

Re: Your credit card debt dies when you die (usually)

I think it is important to first make the distinction that several others have made between what you believe your heirs and executor/personal representative ought to do and what the law requires. If I agreed to pay someone back for a loan and then died before doing so, I would want my heirs to pay b...
by HootingSloth
Sun Nov 10, 2019 12:38 pm
Forum: Personal Investments
Topic: Bond for a recovering "xen of bad choices"
Replies: 15
Views: 2280

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: 3088

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: 33
Views: 5803

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: 37
Views: 3852

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: 37
Views: 3852

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: 7113

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: 1852

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: 1852

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: 1852

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: 1852

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: 1852

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: 1852

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: 1852

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: 1852

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: 1852

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: 1852

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: 1852

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: 4437

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: 56
Views: 9160

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: 426

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: 171
Views: 15039

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: 13250

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: 4078

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: 1482

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: 845

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: 11574

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: 11574

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: 11574

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...