Search found 3861 matches

by afan
Mon Nov 19, 2018 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Is my husband ready to quit tenured professorship to pursue side hustle?
Replies: 64
Views: 5298

Re: Is my husband ready to quit tenured professorship to pursue side hustle?

First of all, going from paycheck to paycheck to PhD at a later age, then tenured professor at an elite liberal arts college is one heck of an accomplishment! Pass on my congratulations. I would hesitate to take this deal as presented. Tenure is a difficult thing to give up. The textbook money sound...
by afan
Sun Nov 18, 2018 3:35 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Daily Market Alerts
Replies: 4
Views: 567

Re: Vanguard Daily Market Alerts

If you are all in broad cap weighted index funds then following your portfolio is trivial. The standard news shows don't report a total stock market index but they report the S&P500, which is near perfectly corellated. They report "bonds" and sometimes the 10 year T note. That tells you what happene...
by afan
Sun Nov 18, 2018 7:24 am
Forum: Investing - Theory, News & General
Topic: Interview with Fidelity's Abigail Johnson
Replies: 25
Views: 2831

Re: Interview with Fidelity's Abigail Johnson

A very clear admission that asset management was the major money maker. You cannot get rich offering competitively priced index funds. Hence the focus on active funds and signing people up to let Fidey run their portfolios. As long as you buy the cheap index funds and decline the other offerings you...
by afan
Sat Nov 17, 2018 9:12 pm
Forum: Investing - Theory, News & General
Topic: QSPIX - thoughts on interesting fund
Replies: 1515
Views: 213967

Re: QSPIX - thoughts on interesting fund

If you have to pay an advisor to get into this fund I am not sure it is realistic to deduct the advisor fee only from those returns. One is far more likely to pay 1%, or whatever, on the entire portfolio. I suppose, if your assets were large enough, you could have a large enough investment is QSPIX ...
by afan
Sat Nov 17, 2018 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: Why I plan on buying a life annuity - even if it is a stupid idea
Replies: 88
Views: 7498

Re: Why I plan on buying a life annuity - even if it is a stupid idea

Input a deferred annuity or pay a premium now and start receiving at age 70 and see what you get. TravelforFun Why would I do that? I am looking for a car, you are asking me to price a snowmobile. And what makes you think that the answer to the problem that you are posing is going to be satisfactor...
by afan
Fri Nov 16, 2018 10:21 am
Forum: Investing - Theory, News & General
Topic: AQR fund family's performance relative to its benchmarks
Replies: 36
Views: 2749

Re: AQR fund family's performance relative to its benchmarks

By way of comparison, Vanguard's multifactor fund. If you run it through factor analysis on portfolio visualizer, even with its very short lifetime, you get a near perfect R2. That means the factors included in the model explain the performance of the fund. For the AQR funds, I don't think the resu...
by afan
Thu Nov 15, 2018 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: Why I plan on buying a life annuity - even if it is a stupid idea
Replies: 88
Views: 7498

Re: Why I plan on buying a life annuity - even if it is a stupid idea

An annuity is not a good solution for declining mental acuity. All sorts of things can go wrong for such a person beyond outright theft. Annuities do not solve bad financial decisions with the income stream one has. They do not prevent spending too much or giving away too much. One can commit to spe...
by afan
Thu Nov 15, 2018 3:07 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth: Creating Alpha Through Beta Funds
Replies: 3
Views: 517

Re: Allan Roth: Creating Alpha Through Beta Funds

For an honest index fund that would be the difference in performance between the index and the fund.

For a fund that includes an active component this calculation would not work. The active bets would swamp these sources of efficiency.
by afan
Thu Nov 15, 2018 12:17 pm
Forum: Investing - Theory, News & General
Topic: AQR fund family's performance relative to its benchmarks
Replies: 36
Views: 2749

Re: AQR fund family's performance relative to its benchmarks

By way of comparison, Vanguard's multifactor fund. If you run it through factor analysis on portfolio visualizer, even with its very short lifetime, you get a near perfect R2. That means the factors included in the model explain the performance of the fund. For the AQR funds, I don't think the resul...
by afan
Thu Nov 15, 2018 11:12 am
Forum: Investing - Theory, News & General
Topic: Vanguard's Quantitative Equity Group Losing Talent
Replies: 61
Views: 3911

Re: Vanguard's Quantitative Equity Group Losing Talent

I would not be so cavalier about this. Many of us have our eye on VFMF, VFVA, etc. for our factor exposure. Turnover on this team is concerning. Yes, but remember that these are not "black box" quant funds that chase every inefficiency they can find. These are funds that are designed to deliver on ...
by afan
Wed Nov 14, 2018 2:23 pm
Forum: Investing - Theory, News & General
Topic: AQR fund family's performance relative to its benchmarks
Replies: 36
Views: 2749

Re: AQR fund family's performance relative to its benchmarks

Of course I could say "I don't know or care what factors, leverage, or weights are represented in the fund. I just know I want it."

In which case it would reasonable for one to ask WHY I want it. WHY do I want a fund whose investment properties are unknown to me?
by afan
Wed Nov 14, 2018 11:12 am
Forum: Investing - Theory, News & General
Topic: AQR fund family's performance relative to its benchmarks
Replies: 36
Views: 2749

Re: AQR fund family's performance relative to its benchmarks

The actual alternative funds have had less of a bad record, some pretty good. For many of these, T-bills are a rather unsatisfying benchmark, but for those with very little equity or bond betas, what would you suggest we use instead? These are harder to really analyze and it's in any case a little ...
by afan
Tue Nov 13, 2018 3:53 pm
Forum: Investing - Theory, News & General
Topic: AQR fund family's performance relative to its benchmarks
Replies: 36
Views: 2749

Re: AQR fund family's performance relative to its benchmarks

Wishful thinking. It would make me very happy if someone would sell me a fund that I reasonably could expect to increase my risk adjusted return over the market. If you look at all the marketing of active funds, they all offer some version of this promise. A huge number of people want desperately to...
by afan
Tue Nov 13, 2018 10:47 am
Forum: Investing - Theory, News & General
Topic: AQR fund family's performance relative to its benchmarks
Replies: 36
Views: 2749

Re: AQR fund family's performance relative to its benchmarks

This thread is about whether it is true that they have delivered what they promised. The way to test that would be to compare performance of each fund to an appropriate benchmark. As the above indicates, identifying the appropriate benchmark is not a trivial undertaking. Until you have done that you...
by afan
Tue Nov 13, 2018 7:39 am
Forum: Investing - Theory, News & General
Topic: AQR fund family's performance relative to its benchmarks
Replies: 36
Views: 2749

Re: AQR fund family's performance relative to its benchmarks

The best way to identify a benchmark is start by looking to R2. Then compare the return distributions. Do they have similar standard deviation, skewness and kurtosis? If so, then you have a good benchmark. If you pick an asset with drastically different SD then that is obviously not an appropriate b...
by afan
Sat Nov 10, 2018 6:33 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone use a Wealth Manager?
Replies: 26
Views: 3116

Re: Anyone use a Wealth Manager?

If someone convinced me that Warren Buffet was using them for financial advice I would be fascinated. I would not hire them as an investment manager for me, but I would be fascinated.
by afan
Fri Nov 09, 2018 12:21 pm
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 172
Views: 12953

Re: A reminder: Stay away from AQR

Or save the fees and for some strategies the tax inefficiency and buy VTI. No one spending massive amounts to market the market. No one charging investors huge fees to pay for the advertising. No elaborate excuses when the high prlced fund does not match its benchmark. No massive fees to an advisor ...
by afan
Fri Nov 09, 2018 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Tell me about establishing trusts for our minor children
Replies: 28
Views: 2703

Re: Tell me about establishing trusts for our minor children

I am of the opinion that my children should not need me to protect them from creditors (including spouses) from beyond the grave when they are adults, they should be able to figure this out themselves. It is no a matter of "figuring it out". Once they have inherited the assets outright they cannot ...
by afan
Fri Nov 09, 2018 9:21 am
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 172
Views: 12953

Re: A reminder: Stay away from AQR

A good example of the spell. For some reason investors are willing to pay 2% fee on AUM for reading his notes, while their funds diminish in value. Of course, one can read his notes for free. It is only when you put money in the funds that you pay 2+% in fees. He is on the list of "smart person, ha...
by afan
Thu Nov 08, 2018 7:34 pm
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 172
Views: 12953

Re: A reminder: Stay away from AQR

Nice to hear that at least some people are rejecting the Koolaid. But given they were chasing pipe dreams, I don't have a lot of confidence they will stop paying people large shares of their assets to put them in funds with massive expense ratios. I was hoping the article would compare the outflows ...
by afan
Thu Nov 08, 2018 7:16 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Documents
Replies: 32
Views: 2636

Re: Estate Documents

For those who have found this thread and are looking for more information on estate planning, a simple suggestion. Read the posts by Gill and bsteiner. It is easy to search for their them. Newbies should know that bsteiner works actively as an attorney doing estate planning and settling estates. Gil...
by afan
Thu Nov 08, 2018 7:04 pm
Forum: Personal Finance (Not Investing)
Topic: How much money are you leaving your kids after you die?
Replies: 234
Views: 14601

Re: How much money are you leaving your kids after you die?

m@ver1ck wrote:
Thu Nov 08, 2018 4:37 pm
I'm 42 and have a total of 320K in my Vanguard Rollover IRA and ROTH IRA.

The plan is not to have to touch that money ever - it's a buffer, and is invested at 90/10 stocks/bonds. If we don't have to dip into it, this will be theirs.
How are you going to avoid RMDs on the traditional IRA?
by afan
Thu Nov 08, 2018 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: How much money are you leaving your kids after you die?
Replies: 234
Views: 14601

Re: How much money are you leaving your kids after you die?

Interesting discussion. Why do some assume that leaving money to their kids will somehow harm them? Is this a serious concern or a rationalization for profligate spending? I know a number of people who inherited substantial amounts and knew it was coming long before it happened. They did not become ...
by afan
Wed Nov 07, 2018 7:59 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Understanding Risk & Return
Replies: 19
Views: 1555

Re: Larry Swedroe: Understanding Risk & Return

If the market prices risk adjusted returns appropriately, why pusue all these reinsurance, alt, in the past commodity funds? You get market risk adjusted returns at a grossly inflated price.

Why would that be desirable?
by afan
Wed Nov 07, 2018 6:00 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Understanding Risk & Return
Replies: 19
Views: 1555

Re: Larry Swedroe: Understanding Risk & Return

I am glad to see Larry admitting that moments higher than mean and variance are priced. I have been pointing this out for years. It is frustrating however to see him implying that these risks are priced inefficiently and thus suggesting that one can generate higher risk adjusted returns by creating ...
by afan
Tue Nov 06, 2018 5:39 pm
Forum: Personal Finance (Not Investing)
Topic: How much money are you leaving your kids after you die?
Replies: 234
Views: 14601

Re: How much money are you leaving your kids after you die?

We will leave all our assets in trust for our children and their children, if they have any. We do not have a target figure in mind and the second of our death s s likely to be far enough in the future that projecting the value is prone to error. If we both go into long term care for the rest of our...
by afan
Tue Nov 06, 2018 4:48 pm
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 99
Views: 10414

Re: Debunking Bonds in Taxable

This discussion highlights that the optimal location can vary among investors depending on their long term plans for the money, their marginal tax rates, the appetite for risk,bond yields and stock dividend yields. There can be no single correct answer for all people, all tax rates and all levels of...
by afan
Sun Nov 04, 2018 4:42 pm
Forum: Investing - Theory, News & General
Topic: "Individual investors should have access to Private Equity"
Replies: 46
Views: 3432

Re: "Individual investors should have access to Private Equity"

1) The theory behind cap-weighted total stock market indexing is that it is supposed to mirror the "market portfolio," which consists of all of the assets trading within a market. That means the public market. Since private equity doesn't trade freely, publicly, or frictionlessly in the same market...
by afan
Sat Nov 03, 2018 8:59 pm
Forum: Investing - Theory, News & General
Topic: [WSJ: The New Retirement Plan: Save Almost Everything, Spend Virtually Nothing]
Replies: 74
Views: 8466

Re: [WSJ: The New Retirement Plan: Save Almost Everything, Spend Virtually Nothing]

I get the frugality and goal of financial independence. But I don't get the whole retire early thing. For people of this age their ability to generate income for another 30 years is their most valuable asset. Being ABLE to retire at 40 is great. But actually doing so is like liquidating millions in ...
by afan
Sat Nov 03, 2018 8:11 am
Forum: Investing - Theory, News & General
Topic: no dividends in index funds!
Replies: 95
Views: 9288

Re: no dividends in index funds!

Hi Marcopolo, I’ll call it semi momentary brain lapse. But I must confess, I don’t know a lot about taxes. I do appreciate that taxes are frequently the biggest portfolio expense, but I have loosened up on the tax efficiency mantra some in favor of not letting the tax tail wag the investing dog. As...
by afan
Thu Nov 01, 2018 11:01 am
Forum: Personal Finance (Not Investing)
Topic: Tell me about establishing trusts for our minor children
Replies: 28
Views: 2703

Re: Tell me about establishing trusts for our minor children

Losing both parents then leaving school, activities and all friends to move to a foreign country does not sound like a great solution.

Very generous of brother in law to relocate if needed. Does he have US citizenship or permanent resident status? If not, could he actually make that move?
by afan
Thu Nov 01, 2018 10:43 am
Forum: Investing - Help with Personal Investments
Topic: Limitations of RMD tool for reinvesting
Replies: 9
Views: 663

Re: Limitations of RMD tool for reinvesting

Are you selling the IRA fund, then moving the cash? P erhaps it is tax inefficient and you don't want it in a taxable account. But you do not have to sell it, you could simply distribute enough shares to cover the RMD. You could sell it once it is on the taxable side, if that is what you want to do....
by afan
Thu Nov 01, 2018 4:36 am
Forum: Personal Finance (Not Investing)
Topic: Tell me about establishing trusts for our minor children
Replies: 28
Views: 2703

Re: Tell me about establishing trusts for our minor children

You should check with Vanguard about pricing for multiple trusts. In the past the fee based on assets would be calculated for the collection of trusts as a whole, with a smaller fee for each trust. So three trusts would be more expensive than one, but less than three independent trusts would have be...
by afan
Wed Oct 31, 2018 5:14 pm
Forum: Investing - Theory, News & General
Topic: ETF provider State Street unintentionally promotes traditional index funds
Replies: 38
Views: 2744

Re: ETF provider State Street unintentionally promotes traditional index funds

If you buy the highly liquid ETFs from Vanguard the spread is typically one penny, or less. I have not seen it higher. The discount or premium is typically tiny as well. If you buy Vanguard ETFs or the mutual fund version you get the same tax advantages. For other mutual funds, not from Vanguard, th...
by afan
Tue Oct 30, 2018 7:53 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard as a trustee
Replies: 33
Views: 3075

Re: Vanguard as a trustee

Bltn, If you have family members who will serve as trustee for free, such that the only expenses are accounting and tax preparation then there is no way Vanguard or any other paid fiduciary can compete on price. If you have faith in the family members' competence then there is nothing Vanguard could...
by afan
Sun Oct 28, 2018 9:27 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Two Articles On Reinsurance
Replies: 56
Views: 5338

Re: Larry Swedroe: Two Articles On Reinsurance

Fascinating that people are assuming 1. They know the risk and return distributions of a small number of funds based on a few years of real world data AND 2. They can predict the performance of actively managed funds in this (or any other) asset class. They are so sure of their predictions that they...
by afan
Sat Oct 27, 2018 9:50 am
Forum: Investing - Theory, News & General
Topic: R2 (R squared) comparison tool?
Replies: 7
Views: 543

Re: R2 (R squared) comparison tool?

In portfolio visualizer, go to "Asset Correlations" enter the tickers for the funds of interest.
PV will give you R values.
Just square them to get R2.
by afan
Sat Oct 27, 2018 9:44 am
Forum: Investing - Theory, News & General
Topic: Beware of Interval Funds
Replies: 18
Views: 2634

Re: Beware of Interval Funds

Since the funds are new, there are no long term data. There are some long term data for certain hedge funds that may have pursued similar investment strategies, along with other strategies not reflected in these interval funds. Hedge fund data is so confounded by reporting bias as to fail completely...
by afan
Sat Oct 27, 2018 9:33 am
Forum: Investing - Help with Personal Investments
Topic: Help! For a larger size taxable account do I pay an advisor?
Replies: 51
Views: 4057

Re: Help! For a larger size taxable account do I pay an advisor?

Thanks for all the responses! My taxable account is at Fidelity. So if I went to a 3 fund portfolio, how do the below 3 funds look? If I sell off the holdings in the account Im looking at an unfortnate 80K loss. Thinking I would do 60%- 70US / 20-30% Inernational / 10%- 20% Bonds. Suggestions? Also...
by afan
Thu Oct 25, 2018 4:57 am
Forum: Personal Finance (Not Investing)
Topic: Living Revocable Trust
Replies: 15
Views: 1557

Re: Living Revocable Trust

There is not much point in creating a living trust but only putting a dollar into it. That plus a pourover will ensures that your will has to be probated. Avoiding probate may not be worth much, but this strategy will not avoid probate. In order to avoid probate, all or nearly all of your estate has...
by afan
Tue Oct 23, 2018 6:46 am
Forum: Personal Finance (Not Investing)
Topic: Should I own my home through an LLC?
Replies: 20
Views: 2838

Re: Should I own my home through an LLC?

You need to hear from a lawyer who knows the asset protection law in your state. The protection of a single member LLC varies depending on the state.

Your also living there could complicated things. You need to understand what your current insurance would cover.
by afan
Mon Oct 22, 2018 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: Is there a wills/trust/estate planning forum you'd recommend
Replies: 7
Views: 1797

Re: Is there a wills/trust/estate planning forum you'd recommend

You can learn a lot by searching for any posts by "bsteiner" an expert estate planning attorney who posts here regularly. Also posts by "Gill", an attorney and CPA who spent his career in bank trust departments. "Firechief" is not an attorney, but a very interested boglehead who contributes a lot. I...
by afan
Mon Oct 22, 2018 7:03 am
Forum: Personal Finance (Not Investing)
Topic: Retire now or in the Spring. - changing work conditions
Replies: 35
Views: 3656

Re: Retire now or in the Spring. - changing work conditions

As others have commented, any plausible interpretation of 65x expenses suggests you can retire now. To refine it a little. Does that 65x mean you could cover your entire retirement expenses, without Social Security or your pension? Or does it mean 65x the gap between SS plus pension and your retirem...
by afan
Mon Oct 22, 2018 4:48 am
Forum: Personal Finance (Not Investing)
Topic: New scam hackers spoofing actual correspondence with your own history
Replies: 8
Views: 1557

Re: New scam hackers spoofing actual correspondence with your own history

Interesting. I don't recall ever receiving an attachment from my financial firms. They all send a notice that there is a secure message waiting for me and I must login to my account to collect it. I don't remember them embedding a link in the email. In any case, I would never follow such links. I al...
by afan
Sun Oct 21, 2018 9:40 am
Forum: Investing - Theory, News & General
Topic: Malkiel no longer endorses blind-folded monkeys, likes smart beta
Replies: 31
Views: 3477

Re: Malkiel no longer endorses blind-folded monkeys, likes smart beta

Agree that there is an obsession with following the statements of gurus rather than looking at the data. I don't care what a guru says. I might be interested in in a proper academic study, reviewing carefully collected data and published in Journal of Finance, or a comparable high level academic jou...
by afan
Mon Oct 15, 2018 5:02 am
Forum: Investing - Theory, News & General
Topic: Does anyone invest in commodities through an index?
Replies: 27
Views: 1745

Re: Does anyone invest in commodities through an index?

This thread stimulated me to go back and view some of the many older posts on the holy grail of investment- the CCF fund PCRIX. There was a stretch when this generated lots of excitement on here. There were people desperate to get in. Strategies to get around its high investment minimum. Speculation...
by afan
Sat Oct 13, 2018 7:03 pm
Forum: Personal Consumer Issues
Topic: Making Winter Camping more comfortable
Replies: 39
Views: 2727

Re: Making Winter Camping more comfortable

If you are sleeping on the ground, then a good pad under the sleeping bag makes a big difference. Closed cell foam is best for insulation. If it is cold enough, perhaps two pads. A good warm sleeping bag. Wicking clothing next to your skin. Change into fresh clothing before you go to bed. The clothe...
by afan
Fri Oct 12, 2018 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: Should we rent a car or take our low mileage 2006 Volvo on a family trip?
Replies: 49
Views: 3240

Re: Should we rent a car or take our low mileage 2006 Volvo on a family trip?

Trip or no trip, if you need new tires get them! Big safety improvement over worn tirea. Tires that are still legal can be far from their best. I replace them well before the treadwear indicators demand. Have a mechanic check the rest of the car. If it is in good shape you are not likely to get some...
by afan
Thu Oct 11, 2018 6:45 am
Forum: Personal Finance (Not Investing)
Topic: Consultant Advice: Commission - What to watch out for
Replies: 11
Views: 955

Re: Consultant Advice: Commission - What to watch out for

Agree you need a lawyer. Your obligations dpened on what the contract said.
From the broker's point of view they have already done their part of the deal- bringing you the client.The fact that they will not bring more does not change the service they already provided.

But legally? You need a lawyer.