Search found 146 matches

by tpm871
Sat Jul 07, 2018 1:48 pm
Forum: Personal Consumer Issues
Topic: Going solar?
Replies: 73
Views: 6131

Re: Going solar?

I recently went solar, and spent a lot of time understanding the financial aspects. After rebates, the cost was about $21k and I estimate that it would return about $50k above and beyond this investment over the life of the panels. Some points to consider: 1. As some have mentioned, getting extra ge...
by tpm871
Sat Dec 31, 2016 2:14 pm
Forum: Investing - Theory, News & General
Topic: Tax Loss Harvesting - Is it worth it?
Replies: 85
Views: 10389

Re: Tax Loss Harvesting - Is it worth it?

I did tax loss harvesting for some emerging markets shares mid-year. Besides taking the loss for tax purposes, it allowed me to shift shares from taxable to tax deferred accounts. I had wanted to shift as well, since dividends on EM tend to be less favorable tax-wise (more unqualified dividends in c...
by tpm871
Sat Aug 30, 2014 12:37 pm
Forum: Investing - Theory, News & General
Topic: Does anyone have 'Lazy Portfolios'?
Replies: 85
Views: 9247

Re: "Three Proofs That Total Stock Market is Efficient"

Saying that it (Total Stock Market Index Fund) is "mathematically lowest risk for highest return" is simply untrue. Not according to this study: Three Proofs That TSM Is Efficient . Best wishes. Taylor Thanks, Taylor. I'd be interested to hear whether everyone agrees with the assumptions made there...
by tpm871
Fri Aug 29, 2014 8:25 pm
Forum: Investing - Theory, News & General
Topic: Does anyone have 'Lazy Portfolios'?
Replies: 85
Views: 9247

Re: Does anyone have 'Lazy Portfolios'?

Actually, the 3 fund portfolio' strengths are not in its outperformance; the outperformance is incidental as a result of its structure; there are many other slice and dice index portfolios, and dare I say, actively managed funds that have "outperformed" over certain time periods. What the 3 fund ge...
by tpm871
Tue May 27, 2014 12:35 am
Forum: Investing - Theory, News & General
Topic: This market is a snoozer, do you like it?
Replies: 45
Views: 5567

Re: This market is a snoozer, do you like it?

I wouldn't put 2013 in the same category as 2008. 2013 wasn't volatile since it mostly just steadily increased. 2008 was wild ride, with huge daily swings both down and up. What I would prefer (but wouldn't necessarily be the most fun) is a market that is constantly oscillating up and down by a non-...
by tpm871
Tue Apr 22, 2014 11:27 pm
Forum: Investing - Theory, News & General
Topic: Bad 401K better than nothing?
Replies: 7
Views: 927

Re: Bad 401K better than nothing?

It depends: 1. If there is an employer match, then you should probably contribute to the 401k. 2. If not, and you don't have enough to max out your IRA contribution, then you should contribute to the IRA instead. 3. If there's no match, you have money beyond the IRA max, and you're going to leave th...
by tpm871
Tue Apr 22, 2014 12:20 am
Forum: Investing - Theory, News & General
Topic: Total bond vs intermediate tax exempt
Replies: 12
Views: 2829

Re: Total bond vs intermediate tax exempt

TPM: unfortunately I have no history in international up until a few months ago. I will see what turns up over the next few years regarding my international holdings. You can see the past tax cost ratios at the schwab site. For example, total stock market vs total international stock market: http:/...
by tpm871
Mon Apr 21, 2014 12:03 am
Forum: Investing - Theory, News & General
Topic: Total bond vs intermediate tax exempt
Replies: 12
Views: 2829

Re: Total bond vs intermediate tax exempt

One other thing that you may want to think about: maybe move all of your total stock market holdings to taxable, and move as much of the total international to tax advantaged as you can. For my holdings, I found that international equities generated more dividends (and had a higher ratio of ordinary...
by tpm871
Mon Jan 27, 2014 12:48 am
Forum: Investing - Theory, News & General
Topic: Portfolio Tweakers - Unite and be ashamed no more
Replies: 37
Views: 3261

Re: Portfolio Tweakers - Unite and be ashamed no more

I made a few changes, mostly influenced by interest rates. I wouldn't say that I am trying to time interest rate changes; I just think that the long term direction is up, so I made long term changes to my AA: Sold my US Intermediate Treasuries fund (which I had rather than TBM), and set up a five ye...
by tpm871
Sat Jan 11, 2014 3:44 am
Forum: Investing - Theory, News & General
Topic: when you reach"your number"
Replies: 84
Views: 11025

Re: when you reach"your number"

I voted "other". I guess you could sum up my answer as "worry less". I was approaching my number a few years back. I don't like changing jobs, and had been at the same job for quite a while. But being close to my number gave me the comfort level to venture out and try for a better opportunity. I got...
by tpm871
Thu Dec 26, 2013 2:16 am
Forum: Investing - Theory, News & General
Topic: Poll: "Bonds are for safety (True or False)".
Replies: 63
Views: 5448

Re: Poll: "Bonds are for safety (True or False)".

I voted false. It's hard for me to think of bonds as being safe after the bond dips that we had this year. It felt like a preview of far worse declines to come when interest rates start increasing for real. I'd complete the phrase "bonds are for..." with: 1. diversification (negative correlation wit...
by tpm871
Mon Dec 16, 2013 12:42 am
Forum: Investing - Theory, News & General
Topic: Check your Vanguard transactions!
Replies: 5
Views: 1736

Re: Check your Vanguard transactions!

Cosmo wrote:Was this order initially done online or via a human being?
It was done online initially.
by tpm871
Sun Dec 15, 2013 12:13 pm
Forum: Investing - Theory, News & General
Topic: Check your Vanguard transactions!
Replies: 5
Views: 1736

Check your Vanguard transactions!

Last Monday, I put in an order through Vanguard to buy a $10k CD. On Friday, I got a call from Vanguard saying that I didn't have the funds available to cover the transaction. I took a look at my account, and to my surprise there was a huge error: my account was debited more than $93k to buy that $1...
by tpm871
Fri Nov 15, 2013 1:15 am
Forum: Investing - Theory, News & General
Topic: cash vs bond question
Replies: 18
Views: 2590

Re: cash vs bond question

I had part of my bond allocation in a treasury bond fund, and I was annoyed by the dip around mid-year associated with Fed tappering concerns. At first, I thought that I'd reinvest in individual treasury bonds to avoid future dips like that. That would avoid both the risk of losing principal when in...
by tpm871
Sun Nov 10, 2013 11:00 pm
Forum: Investing - Theory, News & General
Topic: How many funds do you have in your portfolio?
Replies: 96
Views: 8433

Re: How many funds do you have in your portfolio?

I'm in the slice & dice camp. I have: US Equity Total stock market Large value Small blend Small value International Equity European index Pacific Rim index Emerging markets index International small index International real estate Bonds CD ladder TIPs / I bonds Municipal bond fund I'd point out tha...
by tpm871
Sat Nov 09, 2013 1:51 am
Forum: Investing - Theory, News & General
Topic: Behavioral Finance: Personality Type Determines Pay
Replies: 4
Views: 1179

Re: Behavioral Finance: Personality Type Determines Pay

It would be interesting to know the distribution of Bogleheads across those types, and whether there are any trends. For example: Are there many artisian and idealist Bogleheads? (My guess is no) Are guardians more likely to favor the three fund approach, and rationals more likely to favor slice & d...
by tpm871
Sun Oct 13, 2013 10:25 am
Forum: Investing - Theory, News & General
Topic: The problem with a 3 fund portfolio
Replies: 65
Views: 8662

Re: The problem with a 3 fund portfolio

I do not believe any 3-fund portfolio advocate believes it is the only way. I think many advocates believe that for the amount of mental energy invested in managing finances it delivers on a solid promise: you get the market return cost effectively for very little effort spent around investing choi...
by tpm871
Sun Oct 13, 2013 3:17 am
Forum: Investing - Theory, News & General
Topic: The problem with a 3 fund portfolio
Replies: 65
Views: 8662

Re: The problem with a 3 fund portfolio

I agree with the OP, although I'd say that slice & dice isn't for everyone. If you don't want to spend a bit more time, don't have the risk tolerance to rebalance when it feels uncomfortable, and/or selling to rebalance puts you at a tax disadvantage (e.g., not much room in tax deferred space, not ...
by tpm871
Sun Oct 13, 2013 2:44 am
Forum: Investing - Theory, News & General
Topic: The problem with a 3 fund portfolio
Replies: 65
Views: 8662

Re: The problem with a 3 fund portfolio

4. Market weight isn't a guarantee that it's the best weighting. Just because Europe is X% and Asia is Y% of the world market doesn't mean that's automatically best for you. What is the best weighing for me, then? I don't really care about either, since I live in the US. Where would I come up with ...
by tpm871
Sat Oct 12, 2013 4:36 pm
Forum: Investing - Theory, News & General
Topic: The problem with a 3 fund portfolio
Replies: 65
Views: 8662

Re: The problem with a 3 fund portfolio

I agree with the OP, although I'd say that slice & dice isn't for everyone. If you don't want to spend a bit more time, don't have the risk tolerance to rebalance when it feels uncomfortable, and/or selling to rebalance puts you at a tax disadvantage (e.g., not much room in tax deferred space, not m...
by tpm871
Tue Jun 04, 2013 11:32 pm
Forum: Investing - Theory, News & General
Topic: Controlling emotions
Replies: 37
Views: 3435

Re: Controlling emotions

Here's what I do: 1. Whenever I look at my total portfolio amount, I record what the DJIA was at the time. 2. I don't look at the total again until the DJIA is higher than the last time I looked. So essentially, I get positive reenforcement every time I look, since the total is nearly always higher ...
by tpm871
Sun May 26, 2013 12:52 pm
Forum: Investing - Theory, News & General
Topic: How Would Mr. Bogle Calculate Expected REIT Returns?
Replies: 122
Views: 23301

Re: How Would Mr. Bogle Calculate Expected REIT Returns?

To test my understanding, let me see if I can explain the underlying forces at work: REITs represent physical assets that generate dividends (e.g., from rents on properties). The total dollar value of dividends paid out to all shareholders does not grow very rapidly. Since 90% of the profits are dis...
by tpm871
Sun Apr 28, 2013 11:53 am
Forum: Investing - Theory, News & General
Topic: Stay the course and market timing mix strategy
Replies: 32
Views: 2529

Re: Stay the course and market timing mix strategy

How is contributing to the cash fund during the months when the three real funds are within 10% of targets "investing in the best value"? I don't see how cash is the best value, and this would mean hoarding investable money in cash; i.e. timing. It would seem like the better plan would be to contri...
by tpm871
Sun Apr 28, 2013 10:50 am
Forum: Investing - Theory, News & General
Topic: Stay the course and market timing mix strategy
Replies: 32
Views: 2529

Re: Stay the course and market timing mix strategy

How about the following instead: 1. Have a "four fund" approach instead, using uninvested cash as your other "fund". For example: 45% total stock market 30% total international stock market 25% total bond market 0% cash 2. Look at your actual allocation percentages each month. If any of the non-cash...
by tpm871
Sun Jan 27, 2013 3:22 pm
Forum: Investing - Theory, News & General
Topic: John Bogle: “Invest, and don’t peek”
Replies: 24
Views: 4918

Re: John Bogle: “Invest, and don’t peek”

I do peek, but in a very controlled way. I look at my investments twice per month, to see in any of my rebalancing bands have been triggered. I only make adjustments according to those triggers. Also, I don't always look at the total. When things are down, looking at the total can be depressing. Ins...
by tpm871
Sun Jan 27, 2013 3:05 pm
Forum: Investing - Theory, News & General
Topic: Market "melt up" and the Airplane Game
Replies: 71
Views: 7972

Re: Market "melt up" and the Airplane Game

Yeah, I saw this quote in an article this morning: Mechling, 47, a married market researcher with no kids from Portland, Ore., admits that the fear of missing out on gains has given her a new sense of urgency to get invested. With the market near a new high, "it's definitely safe to invest now," she...
by tpm871
Thu Jan 03, 2013 1:20 am
Forum: Investing - Theory, News & General
Topic: What was your 2012 return?
Replies: 275
Views: 25923

Re: What was your 2012 return?

Chart of most of the returns provided so far where AA was given and understandable and a specific return provided. The one above 20% return was thrown out to make the chart larger - sorry about that! http://i50.tinypic.com/jrpvtw.jpg What I find interesting about this chart is that I can find my po...
by tpm871
Tue Jan 01, 2013 5:01 pm
Forum: Investing - Theory, News & General
Topic: What was your 2012 return?
Replies: 275
Views: 25923

Re: What was your 2012 return?

12.69% XIRR

My dates are slightly off, since I only had a start total written down from 12/23/11 (return is for 12/23/11 - 1/1/13).

I have a slice & dice portfolio, with current allocations of:

27% U.S. Equity
25% International Equity
11% Alternative (mostly REITs)
28% Bonds
9% Cash
by tpm871
Sat Sep 15, 2012 7:40 pm
Forum: Investing - Theory, News & General
Topic: Comparison of small-cap value ETFs
Replies: 69
Views: 16998

Re: Comparison of small-cap value ETFs

IJS also tracks S&P 600 Value: S&P Small-Cap 600 Value (IJS) Unadjusted expense ratio: 0.29% Average market cap: $940M, 5% mid-cap, 58% small-cap, 37% micro-cap P/E: 16.45 P/B: 1.34 Turnover Ratio: 30% 12 month yield: 1.59% In comparison, VIOV has a 70% turnover and 0.99% yield. My guess is that VIO...
by tpm871
Sun May 06, 2012 10:16 am
Forum: Personal Finance (Not Investing)
Topic: Re: What stops you from retiring today?
Replies: 100
Views: 9111

Re: What stops you from retiring today?

For me, it's mainly uncertainty. I'm not even close to a "normal" retirement age, so there's (hopefully) a lot of years left. The distant future is uncertain, so early retirement seems (financially) scary. Factors to consider: Health care costs -- currently increase well above the rate of inflation ...
by tpm871
Sun Apr 29, 2012 11:44 pm
Forum: Investing - Theory, News & General
Topic: Value averaging rate of return
Replies: 59
Views: 3263

Re: Value averaging rate of return

I still wanted to hear about this from tpm871 or the OP or anyone else. @tpm871 How can you tell when stocks are oversold? How can you tell when stocks are overbought? What is the mean that they revert back to? I don't think you can be too sure of these things. Yes, you can't know the exact values ...
by tpm871
Sun Apr 29, 2012 9:09 am
Forum: Investing - Theory, News & General
Topic: Value averaging rate of return
Replies: 59
Views: 3263

Re: Value averaging rate of return

tpm871 -- Many thanks for your explanation. Could you give an example(s) of band triggers? Is this similar to rebalancing bands? For example, let's say that your threshold for buying/selling is 4% below/above your target. If your target value for this month is $10,000, you would not do anything if ...
by tpm871
Sun Apr 29, 2012 12:11 am
Forum: Investing - Theory, News & General
Topic: Value averaging rate of return
Replies: 59
Views: 3263

Re: Value averaging rate of return

I've been doing value averaging for about five years. The approach looks to take advantage of the following tendencies of the market (and human behavior): 1. Markets occasionally become oversold. 2. Markets occasionally become overbought. 3. Markets have a tendency revert back to the mean. The overs...
by tpm871
Tue Feb 07, 2012 1:11 am
Forum: Investing - Theory, News & General
Topic: Value averaging and MYR -A safer approach to margin?
Replies: 39
Views: 4361

Re: Value averaging and MYR -A safer approach to margin?

Reading the book Value Averaging, by Edleson, one would think the buying would be primarily at market dips and one would be reducing leverage as the market rises. If JCW is employing leverage, after fully funding retirement accounts, this may be an appropriate strategy. I've been doing value averag...
by tpm871
Sun Feb 05, 2012 2:28 pm
Forum: Investing - Theory, News & General
Topic: [Poll]Which is better: Lumpsum or DCA?
Replies: 63
Views: 3338

Re: [Poll]Which is better: Lumpsum or DCA?

Here's a similar question: You intend to contribute $17,000 to your 401(k) for the year. Is it better to make equal contributions throughout the year with each paycheck ("DCA") or to contribute most of the first several paychecks of the year until you reach $17,000 ("lumpsum"). Assume that you could...
by tpm871
Sun Feb 05, 2012 8:44 am
Forum: Investing - Theory, News & General
Topic: [Poll]Which is better: Lumpsum or DCA?
Replies: 63
Views: 3338

Re: [Poll]Which is better: Lumpsum or DCA?

DCA is probably better in this example, since Boris would miss 30 years worth of returns. His money would lose value due to inflation, and he would likely buy at higher prices. But of course there's always an exception -- Boris may have done better in investing in Japan, if he had waited until right...
by tpm871
Sat Feb 04, 2012 9:43 pm
Forum: Investing - Theory, News & General
Topic: St. Petersburg Paradox
Replies: 26
Views: 2261

Re: St. Petersburg Paradox

Here's the wikipedia page: http://en.wikipedia.org/wiki/St_Petersburg_Paradox Yes, one of the things to consider is that the "house" would run out of money if you were lucky enough. But for this poll, let's assume that never happens. I voted $100, because it seems like playing would have a good ente...
by tpm871
Sat Feb 04, 2012 1:12 pm
Forum: Investing - Theory, News & General
Topic: St. Petersburg Paradox
Replies: 26
Views: 2261

St. Petersburg Paradox

A recent WSJ article mentions the St. Petersburg Paradox while discussing the possibility of investing in the Facebook IPO: http://online.wsj.com/article/SB10001424052970204662204577200862677176998.html?mod=WSJ_PersonalFinance_PF4 Wikipedia describes the St. Petersburg Paradox as: Consider the follo...
by tpm871
Mon Jan 30, 2012 12:53 am
Forum: Investing - Theory, News & General
Topic: Any reason to have different allocation in ROTH?
Replies: 16
Views: 1609

Re: Any reason to have different allocation in ROTH?

I put the higher expected return funds in my Roth IRA, due to the fact that no taxes will ever be owed. Given a choice of having my biggest gains in my Roth IRA or my Trad IRA, I'd pay fewer taxes if my Roth IRA has the bigger gains. I have had these in my Roth IRA: 1. REITs 2. Emerging Markets 3. S...
by tpm871
Sat Jan 21, 2012 9:23 am
Forum: Investing - Theory, News & General
Topic: POLL: At what net-worth does an individual become wealthy?
Replies: 78
Views: 8069

Re: POLL: At what net-worth does an individual become wealth

Like others wrote, I think of it in terms of being able to quit your job and live comfortably on a fairly low annual withdrawal rate. I conservatively pick a 2.3% annual withdrawal rate. I read a study somewhere that concluded that this rate is highly likely to be "infinitely sustainable" wrt likely...
by tpm871
Mon Jan 02, 2012 2:27 am
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 2248
Views: 1420113

Re: The Three Fund Portfolio

In terms of fees, you'd be better off with a mix of Vanguard Europe, Pacific Rim, and Emerging Markets fund rather than ISM. Europe and Pacific (which comprise most of ISM) have an ER of 0.14, whereas ISM has an ER of 0.20. There's also better rebalancing opportunities with having them separate, and...
by tpm871
Mon Jan 02, 2012 1:31 am
Forum: Investing - Theory, News & General
Topic: credit, debit, or cash?
Replies: 54
Views: 3566

Re: credit, debit, or cash?

wjwhitney wrote:Credit for all the reasons mentioned.

My question: What is "other"?
I put "other" up there just in case. The only others that come to mind are bitcoins and PayPal, both of which I'm only vaguely familiar with.

But I'm curious about who voted "other" above.
by tpm871
Sun Jan 01, 2012 1:06 pm
Forum: Investing - Theory, News & General
Topic: credit, debit, or cash?
Replies: 54
Views: 3566

credit, debit, or cash?

You frequently hear the "get out of debt" experts saying that people should live on cash rather than credit cards. But I suspect that more Bogleheads use credit cards than cash. I think there are two main types of credit card people (most Bogleheads being the second type, I'm guessing): 1. Those who...
by tpm871
Sat Dec 31, 2011 12:53 pm
Forum: Investing - Theory, News & General
Topic: Funny...
Replies: 26
Views: 1899

Re: Funny...

I have about a 30% allocation to bonds (mix of Treasuys, TIPs, and munis), but I don't think of it as outperforming in the long run. Instead, I like that they are inversely correlated with equities, providing rebalancing opportunities when the market takes a dive. That worked well for me back in Nov...
by tpm871
Sun Dec 11, 2011 11:47 pm
Forum: Investing - Theory, News & General
Topic: Coming shortage of equity investors
Replies: 21
Views: 2521

Re: Coming shortage of equity investors

If it does happen, those of us in stocks will probably be collecting some really nice dividends.
by tpm871
Sun Dec 11, 2011 9:35 am
Forum: Investing - Theory, News & General
Topic: Am I on the right track???
Replies: 2
Views: 369

Re: Am I on the right track???

Looks fairly good. A few suggestions: 1. Think about what kind of tax style account you're using for each. REITs, bonds, TIPS should go in tax deferred accounts. But you should use your Roth IRA for the higher expected return assets of these, since you won't pay any taxes on future returns. So I'd p...
by tpm871
Sat Dec 03, 2011 8:37 am
Forum: Investing - Theory, News & General
Topic: Rick's Rules for Lump Sum Investing
Replies: 215
Views: 16625

Re: Rick's Rules for Lump Sum Investing

I was in exactly the situation you describe earlier this year: I had changed jobs and rolled over my 401(k) into my IRA. In doing so, about 20% of my portfolio was liquidated in order to make the transfer. I handled it differently than you suggested, and here's how it went: * I sold equity assets gr...
by tpm871
Sun Nov 20, 2011 10:20 am
Forum: Investing - Theory, News & General
Topic: - New investor here - Willing to help out with a quick Q ??
Replies: 64
Views: 4509

Re: - New investor here - Willing to help out with a quick Q

I'd suggest thinking about investing differently. Most people tend to think about investing kind of like playing the lottery: "If only I pick the right number [investment] at the right time, I'll do very well." In doing so, you're betting on only one possible future (e.g., a bull market for stocks)....
by tpm871
Sun Nov 13, 2011 11:02 pm
Forum: Investing - Theory, News & General
Topic: Is there any agreement on what money is?
Replies: 62
Views: 4552

Re: Is there any agreement on what money is?

"Bitcoins" would have been an interesting option.

http://en.wikipedia.org/wiki/Bitcoin
by tpm871
Sun Nov 13, 2011 1:51 pm
Forum: Investing - Theory, News & General
Topic: Questions on Value Averaging
Replies: 12
Views: 3142

Re: Questions on Value Averaging

Interesting, I've read about opportunistic rebalancing before but never formally incorporated into my investment strategy. What tolerance band do you use? 20%? I'm doing something a bit different here too. My thought was that different asset classes have different levels of volatility, so the bands...