Search found 3899 matches

by afan
Sat Dec 15, 2018 4:32 pm
Forum: Investing - Theory, News & General
Topic: QSPIX - thoughts on interesting fund
Replies: 1581
Views: 219479

Re: QSPIX - thoughts on interesting fund

Factoring (pardon the pun) in expenses, has it been a clearly better vehicle than cash? Yes. As well as bonds. As well as emerging markets equities. As well as international equities. As well as Sequoia. As well as Total World Equities (until the past year or so). But, for now, it is in a drawdown....
by afan
Tue Dec 11, 2018 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: Has anyone been able to execute a Power of Attorney with Vanguard?
Replies: 27
Views: 1566

Re: Has anyone been able to execute a Power of Attorney with Vanguard?

Have you tried writing them, rather than phone calls?? I wonder whether they would be as cheerful about their defiance of the law when putting it in writing.
by afan
Mon Dec 10, 2018 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: Wills, Estates and Trusts
Replies: 28
Views: 2566

Re: Wills, Estates and Trusts

We paid more than that for a name partner at the downtown office of a big firm in a big city. Almost certainly overkill in legal firepower for our situation. The problem was, we had previously wasted a smaller amount of money for a small office lawyer in the suburbs who came highly recommended but t...
by afan
Mon Dec 10, 2018 5:22 am
Forum: Personal Finance (Not Investing)
Topic: Wills, Estates and Trusts
Replies: 28
Views: 2566

Re: Wills, Estates and Trusts

Eager to hear what bsteiner has to say. My limited experience has left me wary of telling the companies that the person is no longer competent. That triggers their concerns about fraud against the infirm. If one, as trustee of one's own trust, simply tells the world that "Mary Jones is the co truste...
by afan
Sun Dec 09, 2018 8:22 pm
Forum: Personal Finance (Not Investing)
Topic: Wills, Estates and Trusts
Replies: 28
Views: 2566

Re: Wills, Estates and Trusts

In spite of laws requiring them to accept DPOAs, many still refuse. This is well documented on this forum and in the press. When I ran into this, much less than 20 years ago, I had two choices I could have paid a lawyer to sue each of the, more than a dozen, institutions that refused to accept a DPO...
by afan
Sun Dec 09, 2018 11:47 am
Forum: Personal Finance (Not Investing)
Topic: Wills, Estates and Trusts
Replies: 28
Views: 2566

Re: Wills, Estates and Trusts

A major advantage of a living trust comes while you are alive. It can be far easier for the trustee of your trust to manage your affairs if you become incapacitated than for someone to do it under a durable power of attorney. Once you are dead avoiding probate is simply a nice bonus. It can be a big...
by afan
Sun Dec 09, 2018 11:36 am
Forum: Personal Finance (Not Investing)
Topic: Contingent Durable Power of Attorney
Replies: 14
Views: 801

Re: Contingent Durable Power of Attorney

You need not be incapacitated for the bank to serve as trustee. You can appoint it as co or sole trustee any time you want. Potential advantage would be ensuring that the bank has all the information. All bills get sent to the bank. You get to observe it's administrative performance. If you don't bl...
by afan
Sun Dec 09, 2018 8:50 am
Forum: Investing - Theory, News & General
Topic: Vgd alt strategies fund (vasfx) open to retail investors?
Replies: 37
Views: 3035

Re: Vgd alt strategies fund (vasfx) open to retail investors?

A lot of people have that much in retirement accounts and could switch to this fund with no tax implications. Cannot imagine I would want an alt strategy fund and sure I would not pay 0.79% expense ratio for any fund. Maybe if there is someday an alt index fund with a single digit expense ratio... ...
by afan
Sat Dec 08, 2018 4:30 pm
Forum: Investing - Theory, News & General
Topic: The overwhelming majority lose in a zero-sum trading game.
Replies: 52
Views: 5206

Re: The overwhelming majority lose in a zero-sum trading game.

So each day, each active trader has exactly the same expected (arithmetic mean) return as the passives, but the results are more dispersed, so the geometric mean is lower. Iterate this for many days, and an ever increasing majority of the active investors trail the market. This assumes that the por...
by afan
Fri Dec 07, 2018 6:58 pm
Forum: Investing - Theory, News & General
Topic: The overwhelming majority lose in a zero-sum trading game.
Replies: 52
Views: 5206

Re: The overwhelming majority lose in a zero-sum trading game.

One would argue that, with respect to the realized risk adjusted returns, the stock picking by active investors is random. So it is reasonable to model their behavior as random deviations from the market. That does not mean they intend it to be random. They may well use highly systematic approaches....
by afan
Fri Dec 07, 2018 10:48 am
Forum: Investing - Theory, News & General
Topic: The overwhelming majority lose in a zero-sum trading game.
Replies: 52
Views: 5206

Re: The overwhelming majority lose in a zero-sum trading game.

I just like knowing an actual human is at the helm, such as like the volatile times we're in now. I just can't believe no one has any idea at all about what to do. Many of us lack your confidence in the contribution of humans to these investment decisions. The evidence against humans being able to ...
by afan
Thu Dec 06, 2018 3:44 pm
Forum: Investing - Theory, News & General
Topic: The overwhelming majority lose in a zero-sum trading game.
Replies: 52
Views: 5206

Re: The overwhelming majority lose in a zero-sum trading game.

Then the conclusion is indeed that after sufficient time, it is almost certain that amongst the actives, there will be exactly 1 winner (above average) and the rest are all losers (below average), while the passives are all exactly average (hence tied for 2nd place). This is a rigorous conclusion, ...
by afan
Thu Dec 06, 2018 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Questions about protecting Premarital Assets
Replies: 21
Views: 1958

Re: Questions about protecting Premarital Assets

Some of the answers will depend on your state. Keep in mind that many people move from one state to another. The answers could change. You need to consult an attorney who knows the laws of your current state and consider whether you need a prenup. If you take money out of your sole assets for family...
by afan
Thu Dec 06, 2018 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: A simple will (vs. trust) for a simple guy?
Replies: 11
Views: 1111

Re: A simple will (vs. trust) for a simple guy?

It does not seem that a trust would accomplish anything for disposing of your assets at your death. A living trust can make things much easier for someone to take over and manage your affairs if you become incapacitated while still alive. In theory, a DPOA permts someone to do this. In practice many...
by afan
Wed Dec 05, 2018 6:33 pm
Forum: Investing - Theory, News & General
Topic: The overwhelming majority lose in a zero-sum trading game.
Replies: 52
Views: 5206

Re: The overwhelming majority lose in a zero-sum trading game.

[quote]The active investors more concentrated bets are like the coin flip examples, where the average (arithmetic mean) of their holdings always exactly tied with the passive investors, but the geometric mean (and median) is increasingly lower as time goes on, and the distribution of the active inve...
by afan
Wed Dec 05, 2018 6:27 pm
Forum: Investing - Theory, News & General
Topic: Edward Jones a Review and Analysis: Can Edward Jones be Used for a Boglehead Three Fund Portfolio?
Replies: 36
Views: 3571

Re: Edward Jones a Review and Analysis: Can Edward Jones be Used for a Boglehead Three Fund Portfolio?

I don't get the point of this. This is a high priced company that does not exist to let investors run 3-fund portfolios. To the extent one could do it at all, the price will be far higher than with any number of brokers that compete on price. At those normal price brokers the annual fees should be e...
by afan
Mon Dec 03, 2018 2:46 pm
Forum: Investing - Theory, News & General
Topic: Big endowments don't beat simple 60/40 over 10 yrs.
Replies: 25
Views: 3186

Re: Big endowments don't beat simple 60/40 over 10 yrs.

The risk adjusted returns are why the economics, finance and other quantitative faculty at these universities have been complaining for decades that the schools should fire all their high priced investment managers and just index. The universities claim that their various hedge fund, private equity,...
by afan
Mon Dec 03, 2018 2:15 pm
Forum: Investing - Theory, News & General
Topic: Bogle Sounds a Warning on Index Funds
Replies: 103
Views: 17979

Re: Bogle Sounds a Warning on Index Funds

There is logic in portraying this as more an issue for index funds than active funds. If active managers don't like what a company is doing they can try to influence the company or they can sell their shares. Index fund managers have to own the shares, even if they think the company management is lo...
by afan
Mon Dec 03, 2018 6:13 am
Forum: Personal Finance (Not Investing)
Topic: Help me understand "Payout Rate" for an Annuity
Replies: 58
Views: 3249

Re: Help me understand "Payout Rate" for an Annuity

What these calculations proved is that for fixed duration annuities the return is little different than if you held bonds yourself. The quoted payout rate is perhaps purposefully confusing to make the consumer think it is a return. True. But with the annuity you get protection from bad market resul...
by afan
Sun Dec 02, 2018 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: Help me understand "Payout Rate" for an Annuity
Replies: 58
Views: 3249

Re: Help me understand "Payout Rate" for an Annuity

Using annuities need not deprive heirs. To the extent that one is using the annuity for living expenses one is not depleting other investments as rapidly. For those who live long lives and thus make out well on the annuity they could save the heirs a good amount of money. For those, including many o...
by afan
Sun Dec 02, 2018 9:35 am
Forum: Investing - Theory, News & General
Topic: Bogle Sounds a Warning on Index Funds
Replies: 103
Views: 17979

Re: Bogle Sounds a Warning on Index Funds

The last thing I would want would be having my index fund company embroiled in the political issues that arise in proxy fights. Right now, by keeping their voting quiet the funds avoid the politics. For those who perceived the large voting strength of the funds to be a problem there is a solution. F...
by afan
Fri Nov 30, 2018 9:36 pm
Forum: Investing - Theory, News & General
Topic: TIAA: compensation of Wealth Management Advisor
Replies: 19
Views: 1927

Re: TIAA: compensation of Wealth Management Advisor

I think there are two sets of people at TIAA. There are the salespeople (who they call wealth management advisors) and the back office staff. The salespeople are just that. There jobs are getting people to buy expensive products. The back office people are the ones you get when you call the main num...
by afan
Fri Nov 30, 2018 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: Gift tax question
Replies: 175
Views: 6664

Re: Gift tax question

With all the focus on the bank and the IRS, not much has been said about what to do with the coop board. I suggest the novel idea of telling them the truth. Get their requirements and discuss the situation with them. If they would approve the OP based on having a $130,000 loan, then go with the loan...
by afan
Fri Nov 30, 2018 7:10 am
Forum: Personal Finance (Not Investing)
Topic: Gift tax question
Replies: 175
Views: 6664

Re: Gift tax question

Although the OP seems to want to keep everything above board, many of the responses are suggesting dishonest behaviour, justified by the speculation that one might not be caught. ASSUMING HONEST BEHAVIOR ALL AROUND. Mortgage: do as the OP has done and tell the mortgage company that you will be takin...
by afan
Thu Nov 29, 2018 8:15 pm
Forum: Investing - Theory, News & General
Topic: TIAA: compensation of Wealth Management Advisor
Replies: 19
Views: 1927

Re: TIAA: compensation of Wealth Management Advisor

I have three times been contacted by TIAA wealth managers. Each time it was a cold call and it took a while to realize that they were not calling me about a problem with my account. The first time we had a confusing discussion. He said he could offer free advice for retirement. I said great and star...
by afan
Mon Nov 26, 2018 7:43 pm
Forum: Investing - Theory, News & General
Topic: AQR/Liquid Alt Performance
Replies: 60
Views: 2816

Re: AQR/Liquid Alt Performance

Saving a little more while working, then spending just a little less in retirement, will also boost portfolio size and longevity. Only fifteen more years until there will be two ten-year return cycles for the AQR fund(s). I remember the Magellan fund, Bill Miller's Legg Mason Capital Management Val...
by afan
Sun Nov 25, 2018 6:17 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Munis Increasingly Risky
Replies: 94
Views: 8955

Re: Larry Swedroe: Munis Increasingly Risky

If you buy a fund, like VWIUX, you need not worry about the tiny (0.03% in a Moody's report) default risk of A rated munis.Risk of AA was lower. https://www.gpo.gov/fdsys/pkg/CRPT-110hrpt835/html/CRPT-110hrpt835.htm If your fund holds one of them and the value goes to zero then you lose only that sh...
by afan
Sun Nov 25, 2018 6:06 pm
Forum: Investing - Theory, News & General
Topic: Advisor Perspectives Article: Are You Paying For Liquidity You Don’t Need?
Replies: 45
Views: 3298

Re: Advisor Perspectives Article: Are You Paying For Liquidity You Don’t Need?

Not sure how the daily dollar volume relates to premium or discount on the shares...

ETFs have the creation unit structure keeping prices in line with NAV and, usually, relatively low expense ratios.
by afan
Sun Nov 25, 2018 1:15 pm
Forum: Investing - Theory, News & General
Topic: Advisor Perspectives Article: Are You Paying For Liquidity You Don’t Need?
Replies: 45
Views: 3298

Re: Advisor Perspectives Article: Are You Paying For Liquidity You Don’t Need?

Closed end would be a good structure for these illiquid funds. People could get out whenever they wanted but would have to accept market price. Having your fund sell at a deep discount is apparently embarrassing for the sponsors. Closed end would also put pressure on the start up. You need strong ma...
by afan
Sun Nov 25, 2018 7:30 am
Forum: Investing - Theory, News & General
Topic: Advisor Perspectives Article: Are You Paying For Liquidity You Don’t Need?
Replies: 45
Views: 3298

Re: Advisor Perspectives Article: Are You Paying For Liquidity You Don’t Need?

Any illiquid investment will be difficult or impossible to use for rebalancing. These interval funds are no different than owning real estate, timberland, or hedge funds with lockup periods. If you put any money at all into interval funds, it has to be amounts you are willing to leave there for a ve...
by afan
Sat Nov 24, 2018 8:58 pm
Forum: Investing - Theory, News & General
Topic: Advisor Perspectives Article: Are You Paying For Liquidity You Don’t Need?
Replies: 45
Views: 3298

Re: Advisor Perspectives Article: Are You Paying For Liquidity You Don’t Need?

I find this interesting. The market prices risk. One can take a handful of liquid publicly traded stocks, package them in a closed end fund, and see the market decrease the price of the fund shares relative to the cumulative share prices on the open market. Lower price of the closed end shares resu...
by afan
Sat Nov 24, 2018 6:49 pm
Forum: Investing - Theory, News & General
Topic: Advisor Perspectives Article: Are You Paying For Liquidity You Don’t Need?
Replies: 45
Views: 3298

Re: Advisor Perspectives Article: Are You Paying For Liquidity You Don’t Need?

Many hedge funds have lockup periods and lousy investment returns. Just being illiquid does assure good performance. Lots of people and businesses invested in real estate before the crash. Illiquid. Did badly.
by afan
Sat Nov 24, 2018 5:18 pm
Forum: Investing - Theory, News & General
Topic: Advisor Perspectives Article: Are You Paying For Liquidity You Don’t Need?
Replies: 45
Views: 3298

Re: Advisor Perspectives Article: Are You Paying For Liquidity You Don’t Need?

Afan, I agree and disagree. I agree that the inherent nature of the investments is illiquid and thus deserves an illiquidity premium. But I disagree about illiquidity alone not deserving a premium. It seems only common sense that an investor can only be attracted to illiquidity if there is a premiu...
by afan
Sat Nov 24, 2018 1:27 pm
Forum: Investing - Theory, News & General
Topic: Advisor Perspectives Article: Are You Paying For Liquidity You Don’t Need?
Replies: 45
Views: 3298

Re: Advisor Perspectives Article: Are You Paying For Liquidity You Don’t Need?

The argument for interval funds is not that returns magically increase because a particular investor has artificially reduced her liquidity. Interval funds are supposed to choose investments that are themselves illiquid. By limiting investors' access to funds, the interval funds can capture the illi...
by afan
Sat Nov 24, 2018 1:26 pm
Forum: Investing - Theory, News & General
Topic: Advisor Perspectives Article: Are You Paying For Liquidity You Don’t Need?
Replies: 45
Views: 3298

Re: Advisor Perspectives Article: Are You Paying For Liquidity You Don’t Need?

I find this interesting. The market prices risk. One can take a handful of liquid publicly traded stocks, package them in a closed end fund, and see the market decrease the price of the fund shares relative to the cumulative share prices on the open market. Lower price of the closed end shares resu...
by afan
Wed Nov 21, 2018 6:34 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Munis Increasingly Risky
Replies: 94
Views: 8955

Re: Larry Swedroe: Munis Increasingly Risky

In addition to being hopelessly conflicted, the ratings agencies have a long history of systematically overestimating credit risk in munis. Munis have had lower default rates than similarly rated corporate bonds. Based on this, without running the numbers, one should give an edge in expected risk fo...
by afan
Tue Nov 20, 2018 5:54 am
Forum: Personal Finance (Not Investing)
Topic: Is my husband ready to quit tenured professorship to pursue side hustle?
Replies: 97
Views: 10391

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

Francine, I understand that writing a textbook is a lot of work. But essentially all textbooks are written by professors. I am not aware of any exceptions. Few are written by retired professors. That means many people manage to work as professors and write. My questions revolved around whether there...
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: 97
Views: 10391

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: 606

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: 28
Views: 3587

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: 1581
Views: 219479

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: 117
Views: 10756

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: 2893

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: 117
Views: 10756

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: 575

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: 2893

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: 4155

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: 2893

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?