Search found 70 matches

by Mazz
Sat Mar 29, 2014 6:56 pm
Forum: Investing - Theory, News & General
Topic: Lazy portfolios: no returns or risk information
Replies: 135
Views: 14827

Re: Lazy portfolios: no returns or risk information

Larimore, What is your point? This person is asking for past returns of asset class investing. (Not picking the next Peter Lynch) I think it is obvious that this person's post is to help determine what percentages should be allocated to certain asset classes. These are factors of total return and risk. If you didn't look at past return, then how would you know that: Equities outperform Bonds Small outperforms Large Value outperforms Growth Are you are trying to just say 'buy the market'? Put everything in Wilshire 5000? Vanguard Total Stock Market? If that is the case, then you are saying nobody should ever tilt their portfolio to small, mid, value, etc. In that is the case, then somebody needs to tell Bill McNabb he has 169 funds he needs ...
by Mazz
Sat Mar 29, 2014 4:46 pm
Forum: Investing - Theory, News & General
Topic: Lazy portfolios: no returns or risk information
Replies: 135
Views: 14827

Re: Lazy portfolios: no returns or risk information

Take a look at IFA.com or FPLcapital.com
They have performance of different static portfolios going back 20 - 30 years.
They are DFA advisors just like AssetBuilder.


I know that somebody in this post said looking at past performance is the 'Worst' thing you can do.
I can see the validity in that statement for actively managed funds.
But when using asset class index funds, I think those numbers are very relevant.

FPLcapital.com actually has the historical performance of a blended index as a comparison to their models.
If you are more interested in knowing the stats on a broad 'capital market' portfolio you can look at those numbers.

I will say, it is amazing how many firms don't put performance information on their websites.
by Mazz
Sat Mar 08, 2014 1:51 pm
Forum: Personal Investments
Topic: Paying $1,000/yr to Vanguard ! Please Help Me
Replies: 40
Views: 8714

Re: Paying $1,000/yr to Vanguard ! PLEASE HELP ME

Dear davidsorensen32,

[OT comments removed by admin LadyGeek]

However, you are really stepping over the dollar to pick up the dime.
You are losing more money by having a mediocre asset allocation.
Your question should really be about that, not your $900 in expense ratios.
by Mazz
Sun Feb 16, 2014 10:49 pm
Forum: Personal Investments
Topic: Should I use S&P 600 or Russell 2000?
Replies: 7
Views: 1840

Re: Should I use S&P 600 or Russell 2000?

Neither.

Buy Russell 2000 Value
by Mazz
Sun Feb 16, 2014 10:27 pm
Forum: Personal Consumer Issues
Topic: Nice couches are pricey, where I can get them for less?
Replies: 62
Views: 29381

Re: Nice couches are pricey, where I can get them for less?

If you can afford $5,000 sofas, then look at Urban Leather (Urban-Leather.com) They are in Houston.
They are expensive compared to Costco, but they are custom made to order and they use a very thick leather.
They are comparable to $10K and $12K sofa sets. You won't be replacing these in 10 years.

If you want a good price and are not picky on style choices, then hit Costco and Sams.
by Mazz
Sun Feb 16, 2014 1:03 pm
Forum: Personal Investments
Topic: LifeStrategy fund vs a prof. managed index portfolio
Replies: 29
Views: 3747

Re: LifeStrategy fund vs a prof. managed index portfolio

The problem with most lifestyle funds, is that they are large cap heavy.

A tilt towards smaller cap and value is better for long term performance.

Here is an equity allocation you can follow: I am posting a link for a Vanguard, WisdomTree, and DFA portfolios:

http://am.fplcapital.com/vanguard-global-equity-folio/

http://am.fplcapital.com/wisdomtree-glo ... ity-folio/

http://am.fplcapital.com/dfa-global-equity-folio/

For fixed income you can follow this one in either Vanguard or PiMCO funds:

http://am.fplcapital.com/pimco-fixed-income-folio/

other models
http://am.fplcapital.com/model-folios/
by Mazz
Sun Feb 16, 2014 9:19 am
Forum: Investing - Theory, News & General
Topic: Just got a free consultation by Personal Capital. Thoughts?
Replies: 50
Views: 12260

Re: Just got a free consultation by Personal Capital. Though

Personal Capital is a joke. The only thing sensible about what they do is the equally weighted sectors. BTW - That is not tactical. Equally weighted sectors is a strategy. It is a good strategy that has worked well in the past. However, you can do that by purchasing the sector funds of Vanguard in equal weights. I spoke to Personal Capital a while back and this is the information I received: 1) They do not have any performance track record or none that they will give you. 2) They charge .90% to manage this portfolio with no track record. 3) They say they purchase mostly large cap stocks. If that is the case, go back to buying your 10 Vanguard ETFs. There big technology is in providing the account aggregation of all of your accounts. If that...
by Mazz
Sat Feb 15, 2014 7:07 am
Forum: Personal Investments
Topic: Please Help a 36 Yr Old With $7m+ Portfolio
Replies: 83
Views: 17796

Re: Please Help a 36 Yr Old With $7m+ Portfolio

First question - Do you own the individual MLPs or in the form of funds? Owning a basket of MLPs, from a tax prospective, is much better. MLPs are a great asset class. Don't let anybody talk you out of them. second - what state do you live in? Look at using Vanguard muni funds. The funds are large enough to grab lower quality and still have stability in value. They have high percentages in BBB and A rated. I used to own individual munis and migrated to the vanguard fixed income funds. Third - owning large cap stocks with above average dividend yields is a great idea. Better than broad based indexes with low dividend yields. But what about small cap and emerging market asset classes? Owning engineered indexed funds for this category is the w...
by Mazz
Fri Feb 14, 2014 10:25 pm
Forum: Personal Investments
Topic: Tax Efficient Portfolio Help
Replies: 18
Views: 2490

Re: Tax Efficient Portfolio Help

ETFs are most tax efficient vehicle. No cap gains distributions. For the kind of funds your looking at, tHere are plenty of ETF options.
by Mazz
Sun Feb 09, 2014 12:29 pm
Forum: Personal Investments
Topic: Schwab or Vanguard
Replies: 56
Views: 8532

Re: Schwab or Vanguard

Vanguard wants you to use their plain vanilla funds.

However, if you want to use RAFI funds or DFA funds, then Vanguard won't be able to accommodate you.
If you want to use Tactical strategies, like F Squared or Good Harbor, then Vanguard won't be able to accommodate you.

Schwab will give you more options and will provide better customer service.

Depending on the size of your account, Schwab has a special 800 number to call, so you get somebody right away.







Any type of enhanced indexed strategy will not
by Mazz
Sun Feb 09, 2014 11:06 am
Forum: Personal Consumer Issues
Topic: CPU speed
Replies: 43
Views: 5017

Re: CPU speed

http://www.cpubenchmark.net/

Best site for seeing true speed of CPUs.
by Mazz
Sun Feb 09, 2014 11:01 am
Forum: Investing - Theory, News & General
Topic: No Free Lunch from Equal Weight S&P 500
Replies: 44
Views: 8228

Re: No Free Lunch from Equal Weight S&P 500

Anybody who would take 1 minute to look at the constituents of the Equally Weighted S&P 500 would see that it is places much weight on larger mid cap stocks. Thus, making it a blended fund of large and mid. No surprise then that the chart posted above places the performance between the two. However, the real discussion on a 'Free Lunch' should be on investing in equal weighted sectors in the S&P 500. I have seen articles that showed performance about 1 percent better than the S&P 500 over the last 40 years and with a lower standard deviation. F-Squared does equal weighted sectors in their portfolios. (they use two different versions, one using iShares and the other using AlphaDEX) Personal Capital also does equal weighted sector...
by Mazz
Thu Jun 20, 2013 10:26 pm
Forum: Personal Investments
Topic: need a portfolio of DFA Funds
Replies: 2
Views: 684

Re: need a portfolio of DFA Funds

I would not look at firms who charge a fee based on a percent of assets under management.

I think flat fee firms firms like Cardiff Park, Evanson, and FPL Capital Management are the only adviors who are being truthfully honest with investors on how much time is really required to service a client.
In a world where 99.99% of advisors charge a fee based on assets, these firms should be applauded.

I think IFA and FPL Capital have the best websites. They have model portfolios with significant performance history.

One thing nice about FPL Capital's site is that they have models on non DFA funds (Like Vangurad, Wisdom Tree, and iShares.).
An investor can follow one of these models and not have to necessarily go through an advisor.
by Mazz
Thu Jun 13, 2013 7:59 pm
Forum: Investing - Theory, News & General
Topic: An analysis my colleague did on high yield
Replies: 52
Views: 8689

Re: An analysis my colleague did on high yield

Larry,

I agree. This type of information has been well publicized for years.

However, what about the investor who is merely looking for a higher rate of quarterly income.
Don't you think High Yield has a place for people who 'Need' current income.

If you don't need income above the interest and dividends of a balanced portfolio for a period of 5 years, then a larger allocation to stocks and investment grade bonds is the better portfolio.
by Mazz
Thu Jun 13, 2013 7:47 pm
Forum: Personal Investments
Topic: DFA Funds
Replies: 5
Views: 936

Re: DFA Funds

Normally I would agree that you shouldn't hire an advisor simply because he can give you access to a fund. If you have to spend 1.0% more just to access the funds through an advisor, then it becomes a border line wash. However, if you spend less than .35%, then it is most likely worth the extra additional expenses. I have a couple portfolios in all DFA funds and they have done better than they would have with iShares or Vanguard funds. Somewhere between 1% and 1.5% better. The DFA funds apparently deliver returns that range between 1.00% and 2.00% better than the closest types of alternative funds from iShares and Vanguard. From numbers I have seen for the last 15 years, that appears to be accurate. My advisor has a good slide on his websit...
by Mazz
Wed Jun 12, 2013 8:26 pm
Forum: Personal Investments
Topic: Fans of fundamental index investing?
Replies: 8
Views: 1287

Re: Fans of fundamental index investing?

Do you mean specifically the RAFI funds or are you using 'fundamental' as a generic term?
by Mazz
Wed Jun 12, 2013 8:18 pm
Forum: Personal Investments
Topic: Flat Fee Advisor - Cardiff Park Advisors?
Replies: 50
Views: 15812

Re: Flat Fee Advisor - Cardiff Park Advisors?

Nonnie, I agree. If people (specifically Bogleheads) wish to be negative on advisors, it should be the advisors who charge fees based on assets. Based on all the pontificating that Rick Ferri does about buy and hold Vanguard index funds, his 37 basis points is about 36 basis points too high. Off course he is not nearly as bad as Buckingham (Swedroe's firm), who charges well over 1.00%. I think flat fee firms firms like Cardiff Park, Evanson, and FPL Capital Management are the only adviors who are being truthfully honest with investors on how much time is really required to service a client. In a world where 99.99% of advisors charge a fee based on assets, these firms should be applauded, not criticized. I think most clients would be extreme...
by Mazz
Wed Jun 12, 2013 8:43 am
Forum: Personal Investments
Topic: So my advisor says........
Replies: 51
Views: 6298

Re: So my advisor says........

I think you need to get away from the three fund model.
Don't get me wrong, I think the three fund model is probably better than what 90% of American's do. It is a lot better than letting a bank broker handle your account.

However, you can do better by capturing more weight in certain asset classes. One of the good things about the internet is the amount of information at your finger tips.
There are a handful of advisors (most of which are also DFA advisors) who have their model portfolios on their websites.

Here are just a few that I know of from my digging and researching:
IFA, AssetBuilder, FPL Capital, and Cardiff Park

You easily look at what they are doing and follow it.
by Mazz
Wed Jun 12, 2013 8:22 am
Forum: Personal Investments
Topic: So my advisor says........
Replies: 51
Views: 6298

Re: So my advisor says........

A few observations: 1) If the adviser was the person who got you off actively managed funds and into index funds, then he deserves to be paid for his work. 2) If you feel confident that you'll stick to the program and not get caught in the raging river of behavioral risk, then by all means manage the portfolio yourself. 3) If you're not confident that you'll stay the course and would rather have someone else steer the boat and hang with you through rough seas, then pay the guy. Rick Ferri I agree with what Rick said. Regarding point number one. Once the advsior has shown you the light, how much more do you need to pay than the first year? You have basically bought the simplistic insight of passive investing. So why lease when you currently...
by Mazz
Tue Jun 11, 2013 10:59 pm
Forum: Personal Investments
Topic: Leave Expensive Variable Annuity
Replies: 11
Views: 1741

Re: Leave Expensive Variable Annuity

Crow45, My advisor turned me on to Jefferson National. It is by far the best deal anywhere. It is even better than Vanguard if you have more than $85K in the account. JeffNat has Vanguard and DFA funds that you can select. They even have leverage funds from ProShares. You will save a fortune by moving it. Here is something to think about. If you plan on moving some or all of the money out of the Variable Annuity, then when you move it to JeffNat, you may want to setup two VA contracts. If you separate it into two, then they split the cost basis evenly. So you will have two contracts with $250K and a $150K cost basis for each. Now, if you decide to pull out $250K, you will only owe tax on $100K of gain. Under a single contract, you would owe...
by Mazz
Tue Jun 11, 2013 12:19 am
Forum: Investing - Theory, News & General
Topic: Is 3% the new 4%
Replies: 148
Views: 14699

Re: Is 3% the new 4%

Think WisdomTree.

They provide above average dividend yields, while still keeping a high correlation to broad market indices.

You should have no problem pulling 4% a year out from this type of portfolio.
by Mazz
Tue Jun 11, 2013 12:14 am
Forum: Personal Finance (Not Investing)
Topic: Time to surrender qualified annuity?
Replies: 7
Views: 1310

Re: Time to surrender qualified annuity?

I do not know of ANY case where it is better to stay in an annuity because it has a surrender fee.
I can not make this point any clearer.

The higher fees on annuity contracts are so extremely high that it negates any reason to stay in because of the penalty.
Also, these Index linked products are misleading. They NEVER deliver 100% of the return of the market index. NEVER.

I recently helped an employee of mine who was sold a Variable Annuity for her IRA. There was a 5% penalty to get out. The total annual fees (including all of the the hidden fees) were between 2.0 and 3.0% higher than if she had it in an IRA. It didn't make since to stay in this vehicles for the 5 years remaining.

Pull it out and move on.
by Mazz
Fri Jun 07, 2013 1:11 pm
Forum: Personal Investments
Topic: Help me manage a $7 million portfolio.
Replies: 105
Views: 24420

Re: Help me manage a $7 million portfolio.

It's an Annuity! At the end there is nothing left.
The return is nowhere near 4%. Most of the distribution is the return of principle.

The return would be 2.68% if she lived to be 98
The return would be 1.90% if she lived to be 91
The return would be 0.75% if she lived to be 85

This is all based on the numbers you provided, which was $850 per month on a $250,000 Fixed Annuity.
by Mazz
Fri Jun 07, 2013 12:59 am
Forum: Personal Investments
Topic: Help finding tax efficient funds
Replies: 4
Views: 829

Re: Help finding tax efficient funds

ETFs are very tax efficient. Many ETFs do not have capital gain distributions. Thus you only have capital gains when you sell, which could be decades from now.

I like WisdomTree's Dividend ETFs. Their Small Cap Dividned (DES) does well at capturing the returns of the small cap value asset class. The higher dividend payout is a plus.

I saw earlier that even Paul Merriman had recommended the DES along with Vanguard's VBR (Small Cap Value ETF)
by Mazz
Fri Jun 07, 2013 12:23 am
Forum: Personal Investments
Topic: Help me manage a $7 million portfolio.
Replies: 105
Views: 24420

Re: Help me manage a $7 million portfolio.

How is $850 per month on $250K 3 times the rate of 10 year treasuries.
$850 every month for 40 years on $250K principal equals an annual return of 2.68%

That is based on a lady who is currently 58. Thus 40 years takes her to age 98.
Change it to 33 years, and the yield is 1.90%

Fixed Annuities are not good.
Find a fixed annuity that yields closer to a long term bond, and then I can see some merit.
Haven't seen one ever.
by Mazz
Thu Jun 06, 2013 8:38 pm
Forum: Personal Investments
Topic: Help me manage a $7 million portfolio.
Replies: 105
Views: 24420

Re: Help me manage a $7 million portfolio.

I completely disagree with Technovelist. I think that is horrible advise. Maybe if the investor is an irresponsible rap artist or professional athlete. Fixed annuities are not good investments. There not really investments. First, a don't even know of a fixed annuity that is available without a sales commission to an agent. Second, what interest rate do you think an insurance company is going to guarantee for your mother's lifetime; when we are in an environment of 2% 10 year treasuries. A balanced portfolio of stocks and bonds will do you well. Over time, a Vanguard Total Bond Market fund will distribute more income than a fixed annuity. Personally, I like the WisdomTree Dividend ETFs. The WisdomTree Indices distribute much high dividends ...
by Mazz
Fri May 31, 2013 12:17 am
Forum: Personal Finance (Not Investing)
Topic: MasterDex 10 Annity in IRA
Replies: 6
Views: 1042

Re: MasterDex 10 Annity in IRA

Tell him to look at Jefferson National.
It is by far the best Variable Annuity platform in the country.

They charge a flat annual fee of $240 to be on the platform. Their platform offers a huge selection of good funds from companies like Vanguard, PIMCO, and DFA.
Their VA program is even cheaper than Vanguard.

The cost savings is so huge, it is worth it to transfer now and pay the surrender penalty.

I recently transferred one from Lincoln Financial. The extra high annual fees make it worthwhile to take it away ASAP.
by Mazz
Fri May 31, 2013 12:06 am
Forum: Personal Investments
Topic: Advisor wants to separate me from my money
Replies: 24
Views: 3574

Re: Advisor wants to separate me from my money

I think that there are a handful of 'Enhanced' index funds which are better than standard asset class funds that Vanguard provides. Vanguard is always going to offer the lowest ER, but a think it is worthwhile to pay up a little bit for some of these funds. I believe DFA funds are worthwhile, as long as you don't have to pay a high fee to access them. Other Enhanced funds worth looking at are the RAFI funds, WisdomTree, and AlphaDEX funds. There is a good Vanguard / DFA comparison at : http://www.financialplanning.com/vanguard/dfa-global-equity-vs-vanguard-global-equity-new.html I believe the most important aspect of the chart, is the asset allocation. It is much better than doing the simple Vanguard Total Stock Market (both domestic and in...
by Mazz
Wed May 29, 2013 12:45 am
Forum: Investing - Theory, News & General
Topic: AUM Fees: Taxes and recordkeeping
Replies: 2
Views: 478

Re: AUM Fees: Taxes and recordkeeping

Keith,

If you use a Fee Only Advisor (which is the only way to go if you use an advisor) then they can charge their fee whichever way you want.

For retirement accounts, you should have them charge a different account or pay them directly. This way you keep as much money as possible in your retirement plan, which is growing either tax deferred or tax free (as in a Roth).

If you have a your own company, then the company should pay the fee for their services. This way it is 100% deductible as a business expense. This is much better than dealing with the 2% AGI exclusion.

Mazz
by Mazz
Sun Apr 29, 2012 1:15 pm
Forum: Personal Investments
Topic: Sharing how I chose a low-cost DFA advisor 3 1/2 years ago
Replies: 75
Views: 18533

Re: Sharing how I chose a low-cost DFA advisor 3 1/2 years a

DiehardDisciple, Just out of curiosity, when you conducted your search did FPL Capital Management (based in New Orleans), make your short list? I found them in 2010 on their public website FinancialPlanning.com Like you, I was looking for a flat fee DFA advisor. I found their fee to be the lowest of the various flat fee advisors. I researched and interviewed them extensively. FPL Capital is a boutique size investment firm with a very unique business model that lets them charge a low flat fee for the portfolios that they manage. They then charge an hourly consulting fee for additional wealth management services outside of investing in their model portfolio. They have specific CPAs and attorneys on annual retainer which they make available to...
by Mazz
Sat Apr 28, 2012 10:39 pm
Forum: Personal Investments
Topic: How to Invest Lotto Winnings Boglehead Style
Replies: 18
Views: 3002

Re: How to Invest Lotto Winnings Boglehead Style

If you had $50 - $75 million to invest, why would you even think of owning treasuries?
An all equity portfolio with a tilt to dividend yielding securities would make more sense.
You would have a lower tax rate on dividends than interest income, plus currently dividend yields are higher than than the interest rate on intermediate term bonds.

The good thing about having that kind of money, is that you would not have to invest "Boglehead Style"
You can invest like a businessman, not the average Joe investor.
Personally, I would use cash to purchase empty quality office buildings in a stagnate economy.
An investment that you control that generates high returns with low downward volatility. That's how the super rich invest.
by Mazz
Sat Apr 28, 2012 10:20 pm
Forum: Personal Investments
Topic: Can I transfer my home to my corp so can deduct all expenses
Replies: 48
Views: 4197

Re: Can I transfer my home to my corp so can deduct all expe

Like martello said, you will be able to deduct all related expenses even if it is still in your name.

I don't know what type of corporation you have or what the nature of the business is, but for liability reasons, many times you don't want an active and operating company owning a piece of property.
Usually, if a company owns a piece a property, they merely own the property (like a holding company).
by Mazz
Sat Apr 28, 2012 10:08 pm
Forum: Personal Consumer Issues
Topic: Window world?
Replies: 18
Views: 7996

Re: Window world?

I have a tremendous amount of experience with them. I have used them to replaced hundreds of windows over the past 6 years on various properties that I own. The Window World price caught my attention. However, I never cut corners on construction and I don't mind paying up for quality. Thus, I (with the help of my architect) conducted my research and due diligence on their product before purchasing. Here are some points worth knowing: 1) The windows are made by a large company called Alside. WW then has Alside put the WW private label name on the windows. You can look them up online. Alside's vinyl windows have received very good reviews from consumer reports. Their Vinyl windows had better scores than Pella's vinyl windows. 2) Like most bra...
by Mazz
Mon Mar 12, 2012 1:08 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Portfolio Advisory Service
Replies: 68
Views: 60018

Re: Fidelity Portfolio Advisory Service

The fees are way too high!

There are thousands of independent RIAs (Registered Investment Advisors) who custody their clients' accounts at Fidelity.
(In fact many of these RIAs also offer Schwab and TD Ameritrade).
Most RIAs charge a fee that is around 1%. Some charge as low as .25%.
Both are significantly cheaper than the Fidelity In house product.

If you looking to place your money with one of the "big" firms, then you may want to look at Schwab.
Schwab owns an RIA firm called Windhaven. Windhaven only invest in ETFs and has had a solid track record.

They only charge .60% to .75% per year.
by Mazz
Mon Mar 12, 2012 12:43 pm
Forum: Personal Investments
Topic: Choosing a DFA advisor
Replies: 2
Views: 468

Re: Choosing a DFA advisor

Bitzer, It depends what you need or require from the advisor. If you don't require any real guidance, then I would lean towards who is cheaper. It also depends on whether or not the advisor is willing to implement the portfolio or allocation that you desire. Some advisors will only implement their idea of what you need, whereas others will allow you to select the allocations that you desire in the DFA funds. It is probably best to look for an advisor who charges a flat annual fee. Depending on the size of your account, you may find that your annual rate may be as low .o1% to 03% (1 to 3 basis point). Another benefit of the flat annual fee approach, is there is no additional cost if you leave all of your assets in the same brokerage account....
by Mazz
Sun Mar 11, 2012 10:30 am
Forum: Personal Investments
Topic: What do you think of this DFA advisor?
Replies: 92
Views: 8819

Re: What do you think of this DFA advisor?

Livesoft,

Why didn't you create a Vanguard portfolio for your sister to follow?

I would hate to see somebody I care about use an insurance agent as an investment advsor.

Mazz
by Mazz
Sat Mar 10, 2012 7:59 pm
Forum: Personal Investments
Topic: What do you think of this DFA advisor?
Replies: 92
Views: 8819

Re: What do you think of this DFA advisor?

Friend,
You are off to a good start to look for a Fee Only Advisor.
However, the Flat Annual Fee Advisor is becoming more popular.
There are plenty of Flat Fee Advisors who charge annual rates that range between $1K and $6K.
You may want to look at some of these firms.

I like DFA funds, but I don't think every fund in your portfolio needs to be a DFA fund.
Look for advisors that use low cost funds from various families: DFA, Vanguard, iShares, etc.

If the account is large enough, then I would not use the Core DFA funds.
The advisor should be sophisticated enough to structure a portfolio that will target the weight in the specific asset class.

Hope this helps,
Mazz
by Mazz
Sat Feb 25, 2012 12:28 am
Forum: Personal Investments
Topic: MLPs
Replies: 18
Views: 2452

Re: MLPs

There are now a couple of funds in which they are setup a little different than other MLP related funds of the past. The major player in this arena is SteelPath Funds. (http://www.SteelPath.com) Their distributions are mostly treated as a return of capital. Thus you do not pay tax on these distributions. If (or when) you sell your positions, your capital gains may be higher because you would have lowered your cost basis over the years with these 'Return of capital' distributions. However, the tax rate on long term capital gains is currently very favorable. Plus, it may be years before you get your cost basis down to zero. Another fund to look at as the Alerian MLP ETF (AMLP). This ETF is treated like SteelPath funds, which is different than...
by Mazz
Tue Jan 31, 2012 9:04 am
Forum: Personal Finance (Not Investing)
Topic: Disability Insurance
Replies: 3
Views: 456

Re: Disability Insurance

Unfortunately, Disability Insurance (DI) is still hard (if not impossible) to purchase in a no load environment.

However, DI policies can be customized to your needs and specialty, so it is probably good to talk with somebody that knows that product.

I have dealt with that a group that specializes in DI. They are very knowledgeable about the different types of DI policies.
Their website is www.DisabilityCenter.com

Ask about an ADL (Activities of Daily Living) rider on any DI policy you get. It is a cheap rider and gives a sizable monthly payment if you get "severely' disabled.
by Mazz
Mon Jan 23, 2012 8:11 am
Forum: Personal Finance (Not Investing)
Topic: Ben Stein/Variable Annuity
Replies: 27
Views: 4251

Cheaper VA than even Vanguard

Biggest problem in the past with Variable Annuities has been the annual cost associated with being in the vehicle and the limited funds to choose from.

There is a relatively new insurance company that is now offering a VA with a flat annual fee.
The company is Jefferson National. The only fee they charge is a flat annual fee of $240.

For VA over $70K, that makes them cheaper than Vanguard.
They have hundreds of funds to choose from, including Vanguard and DFA.

If you already have money in a VA and it is over $70K, then you may want to look at these folks.
by Mazz
Mon Jan 23, 2012 8:00 am
Forum: Personal Investments
Topic: 2010-2011 top 10 highest-paid CEOs of S&P 500 companies
Replies: 1
Views: 550

Re: 2010-2011 top 10 highest-paid CEOs of S&P 500 companies

Great work extracting the data from the SEC website. It would be interesting to see all 500.

I think this shows how powerless the individual investors are in America.
I don't think most investors would approve of these outrageous salaries. Most of this money should go back to the shareholders.

It doesn't bother me to see guys like Ellison, Lauren, or Moffett on the list because they started those companies from scratch.
The others should be highly compensated, but not at such over inflated levels.
by Mazz
Wed Sep 21, 2011 11:57 pm
Forum: Personal Investments
Topic: MLP
Replies: 7
Views: 2223

MLP

The easiest way to get MLP Exposure is the Alerian MLP Index. Ticker AMJ.

If you have enough money, a good SMA (Separately Managed Account) is Energy Income Partners. They are a money manager from Connecticut.

Or just buy the 10-15 largest MLPs.

Individual ownership of MLPs is the best for taxes. You basically pay no income tax on MLP distributions if you own the individual stocks.
by Mazz
Thu Mar 03, 2011 8:37 pm
Forum: Investing - Theory, News & General
Topic: DFA vs Vanguard Portfolios - Big Difference Over Last 10 yrs
Replies: 85
Views: 16608

Did you click on the fund by fund comparison?

I don't think that this is data mining since they are showing a fund by fund comparison on an annual basis for the last 11 years.

http://financialplanning.com/vanguard/d ... -etfs.html
by Mazz
Thu Mar 03, 2011 8:09 pm
Forum: Investing - Theory, News & General
Topic: DFA vs Vanguard Portfolios - Big Difference Over Last 10 yrs
Replies: 85
Views: 16608

DFA vs Vanguard Portfolios - Big Difference Over Last 10 yrs

My DFA advisor sent me an e-mail today with a link to their website that shows a good DFA & Vanguard comparison.

I thought that others may find this interesting.

The details can be found at the following link:

http://financialplanning.com/vanguard/d ... y-new.html

or

Vanguard.FinancialPlanning.com
by Mazz
Wed Dec 29, 2010 7:06 pm
Forum: Personal Investments
Topic: Rydex Funds
Replies: 13
Views: 2422

Rydex equal weighted sector performance

I downloaded the holdings today from the Rydex equal weighted sector funds to see the composition of each.

Turns out that the holdings in the sector funds are members of the S&P 500. So, they are large cap funds. They just equal weight the positions, so their are no mega cap weights in the portfolio from the likes of Exxon or Apple.

These Rydex sector funds go back to 2006. So they have real returns for over four years. Since inception, all 9 of their equal weighted sector funds has outperformed the cap weighted sector funds.

I an looking to move on this strategic approach. Anybody else have any feedback before I pull the trigger.
by Mazz
Tue Dec 28, 2010 10:51 am
Forum: Personal Investments
Topic: Advisors During Retirement
Replies: 19
Views: 3135

seeking an advisor

AveJoeInv,

Take a look a FinancialPlanning.com

I signed up with them recently and have been very pleased with what I get for the price. With their platform I can still maintain as much control and flexibility as I desire.

I do know that they offer certain additional consulting at an hourly rate.

Mazz
by Mazz
Tue Dec 28, 2010 10:34 am
Forum: Personal Investments
Topic: Rydex Funds
Replies: 13
Views: 2422

ER

I'll pay an extra 30 bps to earn an extra 300 bps.

Unless you would rather be "Penny wise and pound foolish"
by Mazz
Tue Dec 28, 2010 10:30 am
Forum: Personal Investments
Topic: Rydex Funds
Replies: 13
Views: 2422

Weight Of All Names

Actually, the funds are large/mid cap oriented
It looks like the funds have about 50 names in each sector fund.

So it is about half large cap and half mid cap names.
Biggest difference is they are equal weighted.

For example, Apple and Motorola have the same weighting in the tech fund.
Despite the fact that Apple market cap is currently 100 times larger than Motorola.
by Mazz
Tue Dec 28, 2010 9:41 am
Forum: Personal Investments
Topic: Rydex Funds
Replies: 13
Views: 2422

Rydex Sector Fund Performance

The expense ratio is not as relevant of a question or concern on this topic.
However, I think it is 50 bps.

These are a different style of sector index funds.
They are equally weighted. So a mid cap company will have the same weight as a super large cap company.

In looking at their performance since inception, they have blown away the performance of the Sector Spiders and the Vanguard sector funds.

In light of this information, I am thinking of redirecting my strategy of the funds I use for my equal weighted sector portfolio.

This is why I am seeking feedback on this topic.
by Mazz
Mon Dec 27, 2010 9:06 pm
Forum: Personal Investments
Topic: Rydex Funds
Replies: 13
Views: 2422

Rydex Funds

Anybody have any strong opinions on the new equal weighted sector / equal weighted position Rydex Funds? I have been doing equal weighted sectors for years using Sector Spiders, but these new equal weighted sectors funds from Rydex look very appealing. The sector funds' performance looks exceptional. Here is the tickers for a most of them: Rydex S&P Equal Weight Consumer Discretionary ETF - RCD Rydex S&P Equal Weight Consumer Staples ETF - RHS Rydex S&P Equal Weight Energy ETF - RYE Rydex S&P Equal Weight Financial ETF – RYF Rydex S&P Equal Weight Health Care ETF - RYH Rydex S&P Equal Weight Industrials ETF - RGI Rydex S&P Equal Weight Materials ETF - RTM Rydex S&P Equal Weight Technology ETF – RYT Rydex S&am...