Search found 1098 matches

by fortyofforty
Mon Oct 22, 2018 11:53 am
Forum: Investing - Theory, News & General
Topic: Help me understand dividends
Replies: 145
Views: 12352

Re: Help me understand dividends

Theoretically, Dividends mean the company you own has already made money and is profitable and that is why they are cashing out some of their value. It is like owning a company, and you are the sole owner, and you take some of your company's profits home. At the end of the day, you own the company ...
by fortyofforty
Mon Oct 22, 2018 11:47 am
Forum: Investing - Theory, News & General
Topic: Help me understand dividends
Replies: 145
Views: 12352

Re: Help me understand dividends

Unless you are somehow in control over what investments your ETF or mutual fund makes, then it forces you to lower your ownership of that particular dividend paying stock. It indeed does force it upon you, whether you view it as positive or negative. You can't make up facts to support your position...
by fortyofforty
Mon Oct 22, 2018 6:22 am
Forum: Investing - Theory, News & General
Topic: Help me understand dividends
Replies: 145
Views: 12352

Re: Help me understand dividends

A company, by paying dividends, forces you to lower your risk if you hold it in a mutual fund or ETF. The company is "forcing" anything. If you want to spread you money around, you invest the dividends in some other company. If you want to keep your ownership the same as it was, you reinvest the di...
by fortyofforty
Sun Oct 21, 2018 7:52 pm
Forum: Investing - Theory, News & General
Topic: Help me understand dividends
Replies: 145
Views: 12352

Re: Help me understand dividends

Nobody has brought up that dividends can reduce the risk of owning a particular stock. If shares are owned within a fund, those reinvested dividends get spread across all other stocks in the fund, proportionally, including those of companies that pay no dividends. If owned individually, the owner c...
by fortyofforty
Sun Oct 21, 2018 5:56 pm
Forum: Investing - Theory, News & General
Topic: Help me understand dividends
Replies: 145
Views: 12352

Re: Help me understand dividends

Nobody has brought up that dividends can reduce the risk of owning a particular stock. If shares are owned within a fund, those reinvested dividends get spread across all other stocks in the fund, proportionally, including those of companies that pay no dividends. If owned individually, the owner ca...
by fortyofforty
Sat Oct 20, 2018 6:42 pm
Forum: Investing - Theory, News & General
Topic: Help me understand dividends
Replies: 145
Views: 12352

Re: Help me understand dividends

... It certainly doesn't pay to have the irrational hatred for dividends so often on display by some posters. Dividends serve a purpose, and are one means to begin to obtain that cash return on your investment everyone claims to seek. Please cite, with a link, one example from this forum of irratio...
by fortyofforty
Thu Oct 18, 2018 9:30 pm
Forum: Investing - Theory, News & General
Topic: Help me understand dividends
Replies: 145
Views: 12352

Re: Help me understand dividends

A mutual fund that owned this stock could reinvest the dividends in other stocks, but I think the tax laws require them to report the dividends anyway so they might as well cash you out and let you decide whether to reinvest the dividends. Obviously some tech companies that are trying to grow as fa...
by fortyofforty
Thu Oct 18, 2018 6:35 am
Forum: Investing - Theory, News & General
Topic: Help me understand dividends
Replies: 145
Views: 12352

Re: Help me understand dividends

Wouldn't the tax issue be negated if it was, use my case, held in a 401k? I fail to see how owning more shares doesn't equate to more potential for growth/loss. If I have 1share at $1. 2shares = $2. I'm asking from a place of confusion again. I guess I don't understand at all. Yes, in a 401k you do...
by fortyofforty
Wed Oct 17, 2018 9:50 pm
Forum: Investing - Theory, News & General
Topic: Help me understand dividends
Replies: 145
Views: 12352

Re: Help me understand dividends

You are quoting out of context/misinterpreting. You are either trolling or engineering schools don't teach logic anymore. Enlighten me. Really. Every time I get a dividend, the effect on my net worth is 0. Drawing on my knowledge of arithmetic, I conclude that the sum effect of all dividends over t...
by fortyofforty
Tue Oct 16, 2018 6:46 am
Forum: Investing - Theory, News & General
Topic: Is EMH a tautology?
Replies: 108
Views: 4685

Re: Is EMH a tautology?

The oft-repeated mantra "Nobody knows nothin'" applies to the movement of the equity market--specifically short-term predictions as to the movement of stock prices--not to all fields of endeavor, I believe.
by fortyofforty
Sat Oct 13, 2018 9:05 am
Forum: Investing - Theory, News & General
Topic: Is EMH a tautology?
Replies: 108
Views: 4685

Re: Is EMH a tautology?

Good question and interesting discussion, Lauretta. :beer
by fortyofforty
Wed Oct 10, 2018 4:52 am
Forum: Investing - Theory, News & General
Topic: “It’s probably wise to sell to the sleeping point.” - Jack Bogle
Replies: 83
Views: 11561

Re: “It’s probably wise to sell to the sleeping point.” - Jack Bogle

I have money that I cannot afford to lose. Should I put that money in Vanguard Total Bond Market, or should I put it in Vanguard Treasury Money Market, or maybe I-bonds or bank CD's? Thanks, Smectym There is a continuum of risk, starting at bank savings accounts and CDs, fully guaranteed by the FDI...
by fortyofforty
Tue Oct 09, 2018 6:08 pm
Forum: Investing - Theory, News & General
Topic: “It’s probably wise to sell to the sleeping point.” - Jack Bogle
Replies: 83
Views: 11561

Re: “It’s probably wise to sell to the sleeping point.” - Jack Bogle

With periodic rebalancing, you are buying into the teeth of a bear market. I plan to do just that. However, it is no guarantee against losses. In fact, you buy into losses. I wonder how many of us would be ready, willing, and able to keep buying all the way down if the stock market loses twenty, or...
by fortyofforty
Tue Oct 09, 2018 6:03 pm
Forum: Investing - Theory, News & General
Topic: You know you’re a Boglehead when. . .
Replies: 44
Views: 4890

Re: You know you’re a Boglehead when. . .

Good for you that the outsourcing is to a domestic company. I was just chatting with a long time acquaintance whose employer (he is not affected) will be outsourcing some IT functions to India. Some IT folks there will lose their jobs. Did OP mention that they outsourced to a domestic company? Even...
by fortyofforty
Tue Oct 09, 2018 12:38 pm
Forum: Investing - Theory, News & General
Topic: “It’s probably wise to sell to the sleeping point.” - Jack Bogle
Replies: 83
Views: 11561

Re: “It’s probably wise to sell to the sleeping point.” - Jack Bogle

With periodic rebalancing, you are buying into the teeth of a bear market. I plan to do just that. However, it is no guarantee against losses. In fact, you buy into losses. I wonder how many of us would be ready, willing, and able to keep buying all the way down if the stock market loses twenty, or ...
by fortyofforty
Mon Oct 08, 2018 5:40 pm
Forum: Investing - Theory, News & General
Topic: “It’s probably wise to sell to the sleeping point.” - Jack Bogle
Replies: 83
Views: 11561

Re: “It’s probably wise to sell to the sleeping point.” - Jack Bogle

All this talk of market tops and the need to sell is making me think it's still time to buy. :confused
by fortyofforty
Sun Oct 07, 2018 7:36 pm
Forum: Investing - Theory, News & General
Topic: “It’s probably wise to sell to the sleeping point.” - Jack Bogle
Replies: 83
Views: 11561

Re: “It’s probably wise to sell to the sleeping point.” - Jack Bogle

One problem I have is figuring out how much I will "need". I can know my mortgage payments. I can only estimate my property taxes or utilities, but I am certain they will only increase. Same for my insurance, auto, home, and health. Up, up and up, for sure. Social Security is less "secure" than has ...
by fortyofforty
Sun Oct 07, 2018 7:21 am
Forum: Investing - Theory, News & General
Topic: You know you’re a Boglehead when. . .
Replies: 44
Views: 4890

Re: You know your a Boglehead when. . .

More evidence in support of international equity investing, maybe? Glad you're able to work through this economic setback and stay the course. :beer
by fortyofforty
Sun Oct 07, 2018 6:28 am
Forum: Investing - Theory, News & General
Topic: “It’s probably wise to sell to the sleeping point.” - Jack Bogle
Replies: 83
Views: 11561

Re: “It’s probably wise to sell to the sleeping point.” - Jack Bogle

We love Jack Bogle's philosophical framework. When he deviates from his own oft-cited maxim "Nobody knows nothin'" we can take it for what it's worth. I will choose an asset allocation with which I am comfortable, and stick with it. I don't think you can "Stay the course" if the course heading is co...
by fortyofforty
Sat Oct 06, 2018 7:21 pm
Forum: Investing - Theory, News & General
Topic: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!
Replies: 1194
Views: 99330

Re: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!

JL Collins also doesn't hold specific international equities: https://jlcollinsnh.com/2018/09/25/what-we-own-and-why-we-own-it-2018/ Who is JL Collins? https://www.amazon.com/Simple-Path-Wealth-financial-independence/dp/1533667926 “In the dark, bewildering, trap-infested jungle of misinformation an...
by fortyofforty
Fri Oct 05, 2018 11:00 am
Forum: Investing - Theory, News & General
Topic: Key differences between investing philosophies: Swedroe vs. Bogle
Replies: 144
Views: 7791

Re: Key differences between investing philosophies: Swedroe vs. Bogle

Random Walker wrote:
Wed Oct 03, 2018 12:25 pm
Well, I’m the guy who posts his articles. Just to be clear, I’m not promoting him or his business. I’m promoting the education he provides.
I disagree. By posting his work, repeatedly, you are, in effect, promoting and endorsing it.
by fortyofforty
Mon Oct 01, 2018 7:56 pm
Forum: Investing - Theory, News & General
Topic: Why does Vanguard reccomend 60:40 US:International ratio?
Replies: 52
Views: 7679

Re: Why does Vanguard reccomend 60:40 US:International ratio?

tmcc wrote:
Mon Oct 01, 2018 6:35 pm
International and emerging are total dogs so far this year.
That's true. Is it enough to scare you off? Is it enough to entice you in?
by fortyofforty
Sat Sep 29, 2018 7:55 am
Forum: Investing - Theory, News & General
Topic: Friend got back to me after my advice
Replies: 18
Views: 3870

Re: Friend got back to me after my advice

The next goal should be to convince her that she also doesn't know enough to successfully pick individual stocks, or get rich quick. She'll have to accept "average" as good enough, and understand the basics of index-fund investing, to truly be a successful, long-term investor. Now that she's gotten ...
by fortyofforty
Wed Sep 26, 2018 9:20 pm
Forum: Investing - Theory, News & General
Topic: A bump on the road from active to passive
Replies: 33
Views: 3488

Re: A bump on the road from active to passive

For me the best feature of STAR is the $1,000 price of entry. Even a very small investor can begin the process of building wealth, within the framework of a good company like Vanguard. If they choose later to move to another fund or ETF, once they've built up a little nest egg, great. If not, they c...
by fortyofforty
Sun Sep 23, 2018 9:05 pm
Forum: Investing - Theory, News & General
Topic: Learning How to Value Invest
Replies: 15
Views: 1481

Re: Learning How to Value Invest

I would also recommend reading literature from Tweedy Browne company. They are deep value investors, and their shareholder materials are very educational.
by fortyofforty
Sun Sep 23, 2018 7:08 am
Forum: Investing - Help with Personal Investments
Topic: New to Investing, I feel lost
Replies: 43
Views: 2054

Re: New to Investing, I feel lost

Don't forget that, as young as you are, you have never experienced a bear market. You will open your statements and see the value of your portfolio shrink, over and over. You'll ask yourself what are you doing with your money. You'll realize you'd have made better returns in a CD or bank account. It...
by fortyofforty
Sun Sep 23, 2018 6:51 am
Forum: Investing - Theory, News & General
Topic: A bump on the road from active to passive
Replies: 33
Views: 3488

Re: A bump on the road from active to passive

What I found those was surprising, with STAR having the better average annual returns than the LS and TD funds over 1-year (10.11% v. 7.69% and 8.15%), 3-year (10.00% v. 8.56% and 9.01%), 5-year (9.08% v. 7.87% and 8.34%), and 10-year (7.94% v. 6.56% and 7.08%). You also might be surprised to know ...
by fortyofforty
Sat Sep 22, 2018 2:44 pm
Forum: Investing - Help with Personal Investments
Topic: New to Investing, I feel lost
Replies: 43
Views: 2054

Re: New to Investing, I feel lost

I agree with those who suggested maxing out your 403(b). If you have access to a Roth 403(b), I'd choose that over traditional 403(b). Here's a decent summary of their attributes, by The Motley Fool . After that, you will be dollar-cost averaging into investments, which is not bad. You can invest in...
by fortyofforty
Fri Sep 21, 2018 5:57 pm
Forum: Investing - Theory, News & General
Topic: New [Vanguard] environmental, social, governance (ESG) ETFs
Replies: 25
Views: 1870

Re: New [Vanguard] environmental, social, governance (ESG) ETFs

I recognize you probably did not mean to turn this into a political thread, but you just did anyway. I will not be investing in these so-called "ESG" funds as they tend to target mostly ridiculous social justice warrior causes that play both ends (bilking the consumer and taxpayer, one and the same...
by fortyofforty
Thu Sep 20, 2018 7:22 pm
Forum: Investing - Theory, News & General
Topic: New [Vanguard] environmental, social, governance (ESG) ETFs
Replies: 25
Views: 1870

Re: Sept 20--Vanguard Expands ESG Fund Offerings With Low-Cost ESG ETFs

How was it decided what is and isn’t responsible? Which gets me to my second question. Nuclear power is not responsible????? It’s the most effective, reliable way for us to fight changes in climate that may be caused by humans. Count me out on these offerings. This is why I avoid such nonsense. I w...
by fortyofforty
Sun Sep 16, 2018 9:16 pm
Forum: Investing - Theory, News & General
Topic: Alternative investments - Art, memorabilia, artifacts, antiques
Replies: 17
Views: 1210

Re: Alternative investments - Art, memorabilia, artifacts, antiques

Something is only worth what someone else will pay you for it. With stocks, the market is constantly being adjusted. With one of a kind pieces of art, or other collectibles, you just don't know. I've come to the conclusion that you'd better like the stuff you buy as "investments" since you might get...
by fortyofforty
Sun Sep 16, 2018 6:21 pm
Forum: Investing - Theory, News & General
Topic: Q&A WITH JACK BOGLE - ASK YOUR QUESTIONS HERE
Replies: 66
Views: 14984

Re: Q&A WITH JACK BOGLE - ASK YOUR QUESTIONS HERE

Jack,

Would you consider this to be the "Golden Age" of investing for small investors? What major changes to the industry would you like to see? What major changes or trends do you foresee coming in the next decade or two?
by fortyofforty
Sat Sep 15, 2018 4:20 pm
Forum: Investing - Theory, News & General
Topic: Why Bull Markets Are Dangerous
Replies: 152
Views: 19177

Re: Why Bull Markets Are Dangerous

Wow, seniors wanting to push “all in”.... if my Starbucks barista starts giving me hot stock tips I’m selling everything. My 92 year old mother in law is pretty comfortable being all in. I did talk her into buying 10K worth of a Vanguard Bond Fund ETF. I work with a lot of people who are very comfo...
by fortyofforty
Sat Sep 15, 2018 6:54 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - wash sale rule
Replies: 57
Views: 3270

Re: Tax loss harvesting - wash sale rule

We should drop all the insults, no matter how softly phrased, since they are insults, nonetheless. Here is a simple example. Imagine an index that tracks exactly one share each of exactly ten companies. It's the One-Ten Index. We have Company A that charges .0501% fees, and Company B that charges ....
by fortyofforty
Fri Sep 14, 2018 7:24 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - wash sale rule
Replies: 57
Views: 3270

Re: Tax loss harvesting - wash sale rule

We should drop all the insults, no matter how softly phrased, since they are insults, nonetheless. Here is a simple example. Imagine an index that tracks exactly one share each of exactly ten companies. It's the One-Ten Index. We have Company A that charges .0501% fees, and Company B that charges ....
by fortyofforty
Fri Sep 14, 2018 3:12 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - wash sale rule
Replies: 57
Views: 3270

Re: Tax loss harvesting - wash sale rule

We should drop all the insults, no matter how softly phrased, since they are insults, nonetheless. Here is a simple example. Imagine an index that tracks exactly one share each of exactly ten companies. It's the One-Ten Index. We have Company A that charges .0501% fees, and Company B that charges .0...
by fortyofforty
Fri Sep 14, 2018 2:19 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - wash sale rule
Replies: 57
Views: 3270

Re: Tax loss harvesting - wash sale rule

I think the IRS originally got it right when they said two different mutual funds can not be substantially identical. They should have left that guidance in the documents and left it at that. To broadly say to mutual funds that track the same index are substantially identical is false and we know t...
by fortyofforty
Fri Sep 14, 2018 12:27 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - wash sale rule
Replies: 57
Views: 3270

Re: Tax loss harvesting - wash sale rule

I think the IRS originally got it right when they said two different mutual funds can not be substantially identical. They should have left that guidance in the documents and left it at that. To broadly say to mutual funds that track the same index are substantially identical is false and we know t...
by fortyofforty
Fri Sep 14, 2018 7:35 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - wash sale rule
Replies: 57
Views: 3270

Re: Tax loss harvesting - wash sale rule

Earl Lemongrab wrote:
Thu Sep 13, 2018 11:21 pm
I won't bother arguing with you. You don't have the basic knowledge.
Keep arguing indirectly, then. It's as different as two funds that follow the S&P 500 index. :beer I'm done trying to educate you, as it appears hopeless. People can read your "advice" and make up their own minds.
by fortyofforty
Fri Sep 14, 2018 7:32 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - wash sale rule
Replies: 57
Views: 3270

Re: Tax loss harvesting - wash sale rule

Earl, I am not sure most would make the argument quite the way fortyofforty has here, but my impression is that it is a majority view among BHs that two funds tracking the exact same index (not just same asset class) should be considered substantially identical for TLH purposes, notwithstanding min...
by fortyofforty
Thu Sep 13, 2018 8:55 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - wash sale rule
Replies: 57
Views: 3270

Re: Tax loss harvesting - wash sale rule

Your dispute is ill-founded. When you buy a fund that has, as its mandate, to follow a particular index, you are choosing to own that basket of stocks, indirectly. An actively managed fund is quite different. However, an index fund is mandated to follow a certain index or, if it's something like a t...
by fortyofforty
Thu Sep 13, 2018 7:27 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - wash sale rule
Replies: 57
Views: 3270

Re: Tax loss harvesting - wash sale rule

It's only frivolous because you don't want to admit that owning an S&P 500 Index Fund from one adviser could be considered "substantially identical" to holding an S&P 500 Index Fund from another adviser. I wouldn't swap Investor for Admiral shares, or jump from Fidelity to Vanguard S&P 500 Index Fu...
by fortyofforty
Thu Sep 13, 2018 5:32 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - wash sale rule
Replies: 57
Views: 3270

Re: Tax loss harvesting - wash sale rule

Just curious if you'd consider owning ten shares each of Amazon, Microsoft, and Exxon in Fidelity "substantially identical" to owning ten shares each of Amazon, Microsoft, and Exxon in Schwab. This is a frivolous question. The law and the IRS pubs already explicitly cover the situation. It's only f...
by fortyofforty
Thu Sep 13, 2018 6:31 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - wash sale rule
Replies: 57
Views: 3270

Re: Tax loss harvesting - wash sale rule

I believe that mutual fund share classes that can convert to a different class without tax liability are substantially identical for the reasons given above. I think that includes Vanguard ETF to other share classes even though Vanguard doesn't allow direct conversion. I think that's just a decisio...
by fortyofforty
Mon Sep 10, 2018 2:05 pm
Forum: Investing - Theory, News & General
Topic: Why Bull Markets Are Dangerous
Replies: 152
Views: 19177

Re: Why Bull Markets Are Dangerous

The fact that everyone "in the know" is expecting a crash, or significant bear market, is a counter-indicator pointing to continued good equity performance. You don't know until you know, and then it's too late. Even the guy on the corner with the sandwich board sign saying "THE END IS NIGH" will ev...
by fortyofforty
Sun Sep 09, 2018 9:09 pm
Forum: Investing - Theory, News & General
Topic: Why Bull Markets Are Dangerous
Replies: 152
Views: 19177

Re: Why Bull Markets Are Dangerous

The problem is my barista gave me stock tips in January. My Uber driver told me about his portfolio in March. My dog-walker explained options and futures trading to me in May. My newspaper delivery driver told me about emerging market debt in July. When do I sell? When is the "top" and when is it to...
by fortyofforty
Sun Sep 09, 2018 7:13 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - wash sale rule
Replies: 57
Views: 3270

Re: Tax loss harvesting - wash sale rule

It would, it seems, fall on each individual investor to decide for herself if two investments are "substantially identical". For me, if the two investments track an identical index, no matter the ticker symbols, I consider them to be "substantially identical". Unless and until the IRS hits one of us...
by fortyofforty
Sun Sep 09, 2018 7:07 pm
Forum: Investing - Theory, News & General
Topic: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!
Replies: 1194
Views: 99330

Re: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!

“For 240 years it’s been a terrible mistake to bet against America, and now is no time to start. America’s golden goose of commerce and innovation will continue to lay more and larger eggs. America’s social security promises will be honored and perhaps made more generous. And, yes, America’s kids w...
by fortyofforty
Sun Sep 09, 2018 5:57 pm
Forum: Investing - Theory, News & General
Topic: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!
Replies: 1194
Views: 99330

Re: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!

this thread has reminded me to buy international this week buy low sell high is nice Could you do just as well by shorting the USD ? “For 240 years it’s been a terrible mistake to bet against America, and now is no time to start. America’s golden goose of commerce and innovation will continue to la...
by fortyofforty
Sun Sep 09, 2018 7:49 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - wash sale rule
Replies: 57
Views: 3270

Re: Tax loss harvesting - wash sale rule

This should be no problem, but Bogleheads are not subject to being witnesses at your IRS hearing. As was mentioned, do not forget to stop automatic reinvestment of dividends and capital gains. You might just move everything into the Federal Money Market settlement fund. You would not be out of TBM f...