Search found 147 matches

by rossington
Sat Sep 21, 2019 12:57 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Individual Stock Investing Increases Risk
Replies: 70
Views: 3454

Re: Larry Swedroe: Individual Stock Investing Increases Risk

abuss368 wrote:
Sat Sep 21, 2019 10:19 am
Back on our stock picking days we had some winners, some huge winners, some losers, and big losers.
Sounds like the dynamics of a total stock market index. :beer
by rossington
Sat Sep 21, 2019 3:37 am
Forum: Personal Investments
Topic: Anyone here has more 200k in a single stock ?
Replies: 25
Views: 2460

Re: Anyone here has more 200k in a single stock ?

If you stay on top of MSFT and continue to do the research and are comfortable with the fundamentals then hold it...especially since it is only 6% of the equity/bond portfolio and you have no need for the money. What makes you think a broad market index will give you a better return? It holds MSFT a...
by rossington
Sat Sep 21, 2019 3:13 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Individual Stock Investing Increases Risk
Replies: 70
Views: 3454

Re: Larry Swedroe: Individual Stock Investing Increases Risk

"randomly chosen stocks " One who would seriously invest their savings would not randomly choose stocks...they would do careful research. One who would seriously invest their savings in passive index/actively managed funds will do the same and not randomly chose funds. The point is not even thinkin...
by rossington
Fri Sep 20, 2019 2:57 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Individual Stock Investing Increases Risk
Replies: 70
Views: 3454

Re: Larry Swedroe: Individual Stock Investing Increases Risk

Again correct sell/buy decisions tend to be outweighed by incorrect sell/buy decisions by a ratio of 2:1 or even 3:1. I have experienced this many times and lots of Bogleheads chuckle when they read this as they have experienced this themselves. I'm not following the math here. If index funds just ...
by rossington
Fri Sep 20, 2019 12:59 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Individual Stock Investing Increases Risk
Replies: 70
Views: 3454

Re: Larry Swedroe: Individual Stock Investing Increases Risk

$10,000 invested into each of those stocks at year-end 1999, with reinvested dividends, would now have "grown" to $3,313.19, $36,912.47 and $27,129.58 respectively. Untouched, the total would now be $67,355.24, while $30,000 invested in the Vanguard Total Stock Market Index Fund would be $94,962.99...
by rossington
Fri Sep 20, 2019 2:45 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Individual Stock Investing Increases Risk
Replies: 70
Views: 3454

Re: Larry Swedroe: Individual Stock Investing Increases Risk

One nitpick I have with this analysis is that the vast majority of stocks are small-caps, so the results are heavily biased towards small-caps. In practice, retail stock pickers tend to prefer large-caps. This takes less uncompensated risk than the median stock because of the internal diversificati...
by rossington
Thu Sep 19, 2019 12:32 am
Forum: Investing - Theory, News & General
Topic: Index funds take US lead in assets
Replies: 22
Views: 1649

Re: Index funds take US lead in assets

The most concerning aspect of the article is this: Indexing giants such as BlackRock Inc., Vanguard Group and State Street Corp. now wield considerable power over corporate America and can cast pivotal votes that determine everything from who sits on a company board to how executives deal with issue...
by rossington
Sat Sep 14, 2019 5:25 am
Forum: Investing - Theory, News & General
Topic: Dividend stocks in a Extremely low interest rate environment
Replies: 16
Views: 2325

Re: Dividend stocks in a Extremely low interest rate environment

Go for it...buy quality companies that have a solid dividend payout history. BUT it can be expensive to accumulate enough shares to get your desired payout these days compared to the past. Depends on your risk tolerance.
by rossington
Fri Sep 06, 2019 6:44 pm
Forum: Personal Investments
Topic: I sold my Johnson and Johnson and Eli Lilly stock, bought VTI
Replies: 14
Views: 1838

Re: I sold my Johnson and Johnson and Eli Lilly stock, bought VTI

ronno2018 wrote:
Fri Sep 06, 2019 5:57 pm
Made $6 today with the trade... :beer

$6 ??
by rossington
Fri Sep 06, 2019 3:12 pm
Forum: Personal Investments
Topic: Trying to wrap my head around VPW
Replies: 28
Views: 3201

Re: Trying to wrap my head around VPW

dbr wrote:
Fri Sep 06, 2019 12:13 pm
According to the Wiki support for and discussion of VPW is here: viewtopic.php?t=120430

You will probably get good answers there.
Congratulations dbr on 30,001 posts!
by rossington
Thu Sep 05, 2019 4:35 pm
Forum: Personal Investments
Topic: First question: "short term reserves" in my mix
Replies: 9
Views: 728

Re: First question: "short term reserves" in my mix

Welcome to the world of taking responsibility for your finances. Bonds should be in your IRA, not in your taxable brokerage account. See wiki Tax-efficient_fund_placement for reasoning. Thanks, I am aware of that, I just started with the VSTAX and opened the IRA account first, and filled it up this...
by rossington
Thu Sep 05, 2019 4:34 am
Forum: Personal Investments
Topic: Self insured Long Term Care Fund
Replies: 36
Views: 2600

Re: Self insured Long Term Care Fund

Beehave, Thanks for the response! First, appreciate the love for the TN soldiers. I was unfamilar with Edmond's story and had to look it up -- thanks much for mentioning him. Alvin York's story of course is better known. Ironically (given that TN is the volunteer state) York was drafted, and I susp...
by rossington
Thu Sep 05, 2019 3:46 am
Forum: Personal Investments
Topic: Has the bond bubble finally arrived? If so, is anyone doing anything about it?
Replies: 88
Views: 9717

Re: Has the bond bubble finally arrived? If so, is anyone doing anything about it?

fredflinstone, I don't know if its a bond bubble, but it certainly makes no sense to me to waste money on bonds. With Vanguard's High Div Yield Idx funds you can get 3.12% on the US stock fund and 4.43% on the foreign fund. Also these pay qualified dividends and will most likely grow around 6%-8% p...
by rossington
Thu Sep 05, 2019 3:12 am
Forum: Personal Investments
Topic: Looking for stream of dividends
Replies: 61
Views: 5057

Re: Looking for stream of dividends

Is the VMMXX 500k your only investment savings or as posted above: by 22twain » Wed Sep 04, 2019 4:16 pm Fredo1 wrote: Wed Sep 04, 2019 10:51 am I’ve been receiving about $1000 a month from prime money market Is this only the interest from the money market fund? If so, at $12,000 per year there must...
by rossington
Wed Sep 04, 2019 4:28 am
Forum: Personal Investments
Topic: negative bond yield
Replies: 15
Views: 1280

Re: negative bond yield

I notice that some European bonds have a negative yield. I don't understand what that means. Does it mean that in just holding that bond that I am losing money because of the negative yield. I was not really happen when Vanguard added foreign bonds to the Target Funds. And I'm even less happy now. ...
by rossington
Wed Sep 04, 2019 4:22 am
Forum: Personal Investments
Topic: negative bond yield
Replies: 15
Views: 1280

Re: negative bond yield

MotoTrojan wrote:
Wed Sep 04, 2019 1:15 am
Yup you’ll pay more than you receive in income, but if rates keep going down you actually make a killing :).
This is good advice? How so?
by rossington
Wed Sep 04, 2019 4:10 am
Forum: Investing - Theory, News & General
Topic: Investing education
Replies: 14
Views: 942

Re: Investing education

Tahoe wrote:
Wed Sep 04, 2019 2:11 am

Can anyone recommend an online investment educational program?
You have arrived at your desired destination.
by rossington
Wed Sep 04, 2019 3:51 am
Forum: Personal Investments
Topic: Bond yield inversion - VBILX
Replies: 11
Views: 817

Re: Bond yield inversion - VBILX

I have a 10+ year horizon and planning to dump most of my bonds... unfortunately I bought them a year and a half ago with erroneous info that I actually needed them and now I have too much for my age and risk tolerance (19% - age 45). Then sell your bonds. Problem solved. But what will you do with ...
by rossington
Wed Sep 04, 2019 3:24 am
Forum: Investing - Theory, News & General
Topic: for those that are nervous about current valuations, etc...
Replies: 5
Views: 1248

Re: for those that are nervous about current valuations, etc...

What information did you take away from the newsletter? This is a very unusual post with no content, just advertising going to the library to read a newsletter with no synopsis provided for discussion. I posted the way I did with an intended audience in mind and I did not want to prejudice what som...
by rossington
Wed Sep 04, 2019 3:14 am
Forum: Personal Investments
Topic: How do you let go of decisions that turned out to be the wrong ones?
Replies: 63
Views: 4863

Re: How do you let go of decisions that turned out to be the wrong ones?

What was the actual difference between your stable value and bonds? I can't see how it can actually be that significant to be stressed about.
by rossington
Wed Sep 04, 2019 3:01 am
Forum: Personal Investments
Topic: Is this a real strategy?
Replies: 17
Views: 1821

Re: Is this a real strategy?

Vague question, and vague answers are fine! My dad's small portfolio is managed by a financial advisor. I looked at his statement and saw that he earned a whopping 5% the first half of 2019, while S & P or total stock market index had earned roughly 18%. He's in almost 100% equities. 6 or 7 individ...
by rossington
Tue Sep 03, 2019 4:49 am
Forum: Personal Investments
Topic: Need help diversifying -- 17.8% of investments are in a single stock
Replies: 19
Views: 2415

Re: Need help diversifying -- 17.8% of investments are in a single stock

Your basis is what the stock value was on the date you acquired it...not zero. If Biogen went public in 1991 how did you acquire shares at birth? But, aside from that 3k is not a "tax hit" for you since the stock was a gift in the first place. AND at 31 you can afford to hold it and wait until it ga...
by rossington
Tue Sep 03, 2019 4:03 am
Forum: Personal Investments
Topic: Has the bond bubble finally arrived? If so, is anyone doing anything about it?
Replies: 88
Views: 9717

Re: Has the bond bubble finally arrived? If so, is anyone doing anything about it?

What is your reasoning for calling the current market a bond "bubble"?
Why do you think the bond market could collapse?
You seem to be equating bond and equity behavior as the same.
by rossington
Sun Sep 01, 2019 5:10 am
Forum: Investing - Theory, News & General
Topic: Receiving $100K per year on a $2.5MM Portfolio
Replies: 35
Views: 7619

Re: Receiving $100K per year on a $2.5MM Portfolio

What parts of the portfolio are providing your current income...just what you mentioned?
How close are you to generating 100k/yr?
by rossington
Wed Aug 28, 2019 3:37 am
Forum: Investing - Theory, News & General
Topic: Yield curve slope and rate levels?
Replies: 5
Views: 664

Re: Yield curve slope and rate levels?

What I wonder is, is the ratio of this spread to the absolute value of interest rates of concern? Shouldn’t both the spread and level of rates be involved in slowing or speeding up the economy. Or are they best considered separately? OK, I'll take a swing at your question. My sense is they should b...
by rossington
Tue Aug 27, 2019 7:12 pm
Forum: Investing - Theory, News & General
Topic: Best of Bogleheads - your #1 takeaway
Replies: 151
Views: 14178

Re: Best of Bogleheads - your #1 takeaway

This Forum (and it's resources) is addicting...in a most wonderful way. :beer
by rossington
Tue Aug 27, 2019 4:17 am
Forum: Personal Investments
Topic: Vanguard Energy Fund (VGENX) - should I continue to hold or sell it?
Replies: 18
Views: 1337

Re: Vanguard Energy Fund (VGENX) - should I continue to hold or sell it?

How much did you pay vs. where you stand now? What % of your portfolio is the holding?
This will help with giving more accurate advice.
by rossington
Sat Aug 24, 2019 3:13 am
Forum: Investing - Theory, News & General
Topic: A theory of one's general investing mindset: 'Good enough' or 'Optimize'
Replies: 297
Views: 12472

Re: A theory of one's general investing mindset: 'Good enough' or 'Optimize'

but when it comes to predicting human behavior, we're often not far from clueless. Well Will, now that you have figured out that investing is no more than a psychology and unpredictable how do YOU feel? . (I have to add that it does appear that many Forum posters do not agree with the Boglehead the...
by rossington
Fri Aug 23, 2019 6:23 pm
Forum: Personal Investments
Topic: Best funds for dividends
Replies: 24
Views: 2394

Re: Best funds for dividends

What i am being told is if you get qualified ( maybe it Non) dividends they are taxed at cap gains % not as ordinary tax rates. With my wife working that might saves us some money. What i cant find out how do you know if they are qualified or non qualified dividends? The FIDO man told me if they we...
by rossington
Fri Aug 23, 2019 3:14 am
Forum: Investing - Theory, News & General
Topic: Bond appreciation is impossible without market timing.
Replies: 94
Views: 5406

Re: Bond appreciation is impossible without market timing.

Our VWETX has performed very satisfactorily over the last 10+ years. https://www.morningstar.com/funds/xnas/vwetx/quote
Very well managed fund.
No market timing involved.
Bond funds and individual bonds are two separate entities.
*At the very least OP why do you think VBTLX is up this year?*
by rossington
Thu Aug 22, 2019 6:45 pm
Forum: Personal Investments
Topic: Personal Capital Sales Pitch -- Thank You Bogleheads
Replies: 4
Views: 769

Re: Personal Capital Sales Pitch -- Thank You Bogleheads

Now you can put it on the "I'll never do that again" list. :beer
by rossington
Thu Aug 22, 2019 2:47 am
Forum: Investing - Theory, News & General
Topic: Why do dividends still exist?
Replies: 204
Views: 11805

Re: Why do dividends still exist?

A dividend returns excess profits to shareholders with no risk of stock volatility...it is a defined payout. A stock buyback requires a shareholder to rely on the market (and it's volatility) to determine whether they can capture the gain.... thus the shareholder must closely monitor the market and ...
by rossington
Fri Aug 16, 2019 5:29 pm
Forum: Personal Investments
Topic: market timing, soft version
Replies: 6
Views: 880

Re: market timing, soft version

What was your AA in 2008? How did you feel then? Compare that to now.
Tweaking is one thing, timing is another.
by rossington
Fri Aug 16, 2019 3:35 pm
Forum: Personal Investments
Topic: No Risk Tolerance - What Can I do ?
Replies: 32
Views: 1871

Re: No Risk Tolerance - What Can I do ?

so what we have now is what we must live on Our rent, utilities and expenses have been averaging about $2,400 a month. We have approx. $80K in savings that we need to find a way to produce $400 a month out of. You say "we"....Is there a spouse or someome living with you that is capable of working?
by rossington
Fri Aug 16, 2019 4:39 am
Forum: Investing - Theory, News & General
Topic: 30 year treasury yield drops below 2% for the first time in history
Replies: 41
Views: 5385

Re: 30 year treasury yield drops below 2% for the first time in history

I cant imagine anyone buys 30 year treasuries yielding 1.99% to actually hold for 30 years. Obviously, interest rates will go up some time in the next 30 years. I presume people buying these are just betting rates will continue to fall in the short term so they can sell these for a profit. It's not...
by rossington
Thu Aug 15, 2019 5:01 am
Forum: Investing - Theory, News & General
Topic: Should long-term investors ignore interim bond fund value changes when calculating asset allocations?
Replies: 10
Views: 799

Re: Should long-term investors ignore interim bond fund value changes when calculating asset allocations?

I have been assessing this myself (frequently) lately. I still keep coming to the conclusion that long term VBTLX provides the best way to minimize equity risk. If rates do rise (and that is a big IF) stocks will take a hit too but to a greater degree than VBTLX.
by rossington
Thu Aug 15, 2019 4:14 am
Forum: Investing - Theory, News & General
Topic: [Larry Swedroe: Small Value Stocks are Cheap, Factor Investing Works]
Replies: 673
Views: 26857

Re: Larry Swedroe: Small Value Stocks are Cheap

I like Bogleheads. But with all due respect their continued infatuation with Total Stock Market Index after 30 years of underperformance relative to long term treasuries from 1982-2012 reminds me of the description of people getting married for third or fourth time, a triumph of hope over experienc...
by rossington
Thu Aug 15, 2019 3:20 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 12071
Views: 2056023

Re: U.S. stocks in free fall

Recession? No way. China feeling the pressure?...wonder why.
VWETX has been having some RG(ood)D(ays) lately. :happy
by rossington
Tue Aug 13, 2019 6:27 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle's Articles and Speeches
Replies: 5
Views: 604

Re: Jack Bogle's Articles and Speeches

abuss368 wrote:
Tue Aug 13, 2019 6:02 pm
Hi Taylor -

I thought this thread would be more responsive!
Well I'm going to post...this is great stuff. Bookmarked them both. Keep it coming!
by rossington
Tue Aug 13, 2019 4:20 pm
Forum: Investing - Theory, News & General
Topic: "Retirement Planning Is Complicated. Your Retirement Portfolio Shouldn't Be"
Replies: 40
Views: 3833

Re: "Retirement Planning Is Complicated. Your Retirement Portfolio Shouldn't Be"

I retired 38 years age at the age of 57. During this time I learned a few things about investing. One of these is the value of "simplicity" which I selected for my "signature" at the bottom of this post. Taylor, I haven't been here long enough so I would like to know when you decided to move to the...
by rossington
Tue Aug 13, 2019 4:35 am
Forum: Personal Investments
Topic: Can having wealthy parents be a justification for a more aggressive investment strategy?
Replies: 97
Views: 7249

Re: Can having wealthy parents be a justification for a more aggressive investment strategy?

Instead my question is this: can the high probability of a large inheritance be valid justification for investing in a riskier (i.e. 100% stock index funds) portfolio? Welcome! The answer is "No". There are far too many situations that will take that near-certain probability to zero. What happens i...
by rossington
Mon Aug 12, 2019 3:33 am
Forum: Personal Investments
Topic: tax implications of late father's inherited property sale
Replies: 12
Views: 1241

Re: tax implications of late father's inherited property sale

Why has the property not been sold for 30 years? Please elaborate.
by rossington
Sat Aug 10, 2019 5:24 am
Forum: Investing - Theory, News & General
Topic: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"
Replies: 247
Views: 18132

Re: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"

Exactly right. Coca Cola has earnings. It paid the dividend from prior earnings and is likely to have earnings in the future, which is why the payment of a dividend is rarely, if ever, a permanent reduction in the stock price making that issue a red herring. The stock price dips for a few days, whi...
by rossington
Sat Aug 10, 2019 4:50 am
Forum: Investing - Theory, News & General
Topic: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"
Replies: 247
Views: 18132

Re: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"

Bonds pay interest, and so therefore are quite different from stocks. You can call a bond fund payout a dividend, but the underlying bonds don't pay dividends they pay interest. Since stocks pay dividends based on who owned the stock just 4 days a year, the stock price has to be affected 4 time a y...
by rossington
Sat Aug 10, 2019 4:29 am
Forum: Investing - Theory, News & General
Topic: Why do dividends still exist?
Replies: 204
Views: 11805

Re: Why do dividends still exist?

Without dividends, there wouldn't be much incentive to buy stocks of slow-growth companies like utilities. Their total return would be the same because the dividend would be used for a buy back or something else to add value This is not true with respect to utilities. They are completely regulated ...
by rossington
Fri Aug 09, 2019 12:54 pm
Forum: Investing - Theory, News & General
Topic: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"
Replies: 247
Views: 18132

Re: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"

**Regarding the statements that a dividend reduces the stock price by an equal amount at ex dividend and the effect on the stock valuation.** Can anyone here please provide absolute proof that a company's stock price beyond it's ex dividend dates has any additional relationship with those payouts? ...
by rossington
Fri Aug 09, 2019 3:31 am
Forum: Personal Finance (Not Investing)
Topic: Pretty much broke --- what would you advise?
Replies: 85
Views: 9319

Re: Pretty much broke --- what would you advise?

7eight9 wrote:
Thu Aug 08, 2019 8:40 pm
She is currently collecting unemployment. Will last app. 4 more months. Job prospects are grim.
I don't believe in this attitude.
Time to get any jobs even multiple jobs...help wanted signs are everywhere. Not time for excuses...unless a low standard of living is more desirable.
by rossington
Fri Aug 09, 2019 3:14 am
Forum: Investing - Theory, News & General
Topic: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"
Replies: 247
Views: 18132

Re: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"

**Regarding the statements that a dividend reduces the stock price by an equal amount at ex dividend and the effect on the stock valuation.** Can anyone here please provide absolute proof that a company's stock price beyond it's ex dividend dates has any additional relationship with those payouts? F...
by rossington
Thu Aug 08, 2019 12:18 pm
Forum: Investing - Theory, News & General
Topic: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"
Replies: 247
Views: 18132

Re: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"

Okay, so now I'm in the unfamilar position of defending the dividend people .... no wonder these debates never end. How often does dividend yield in the broader indexes change by 50% in dollar amount ? Hardly ever, but we've seen three different periods AFTER the Great Depression when real (inflati...
by rossington
Thu Aug 08, 2019 4:19 am
Forum: Investing - Theory, News & General
Topic: Need help understanding Dividend and Capital Gains
Replies: 13
Views: 779

Re: Need help understanding Dividend and Capital Gains

Simply your payout is the value of the dividend multiplied by the number of shares you own. I don't know of any companies that will pay a single annual dividend, it is usually declared per share and paid on a quarterly basis thus totaled for all 4 quarters gives you the annual dividend. The dollar a...