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by Rick Ferri
Sun Apr 14, 2019 7:02 pm
Forum: Investing - Theory, News & General
Topic: "Serious Money" book - Free download
Replies: 17
Views: 2184

Re: "Serious Money" book - Free download

I don't know what quote you’re referring to.

There are active managers who have skill and will beat the market; I just don't know how to identify them in advance.
by Rick Ferri
Sun Apr 14, 2019 2:56 pm
Forum: Investing - Theory, News & General
Topic: "Serious Money" book - Free download
Replies: 17
Views: 2184

"Serious Money" book - Free download

Serious Money was my first investment book, written incognito during the late 1990s when I was still a stockbroker at Smith Barney. It was the beginning of my quest to change the investment advice industry by exposing bad business practices and advocating lower adviser fees. HERE IS A LINK TO "SERI...
by Rick Ferri
Fri Apr 12, 2019 6:16 pm
Forum: Investing - Theory, News & General
Topic: For those who were wondering what really happened...
Replies: 17
Views: 6464

Re: For those who were wondering what really happened...

At least your not claiming ownership of my name. Long story!
by Rick Ferri
Fri Apr 12, 2019 4:18 pm
Forum: Investing - Theory, News & General
Topic: For those who were wondering what really happened...
Replies: 17
Views: 6464

For those who were wondering what really happened...

A lot of people have asked or wondered what really happened three years ago that caused me to leave Portfolio Solutions. Now that a non-compete is over, I opened up to ThinkAdviser reporter Bernice Napach. Hold on to your hats! Rick Ferri Is Back in Business, Challenging the AUM Fee Model Rick Ferri
by Rick Ferri
Tue Apr 09, 2019 11:19 am
Forum: Personal Investments
Topic: Lump Sum Investment Dilemma
Replies: 14
Views: 1245

Re: Lump Sum Investment Dilemma

See my thoughts on investing a lump sum:

6 Ideas for Lump Sum Investing

Rick Ferri
by Rick Ferri
Sun Apr 07, 2019 7:45 pm
Forum: Investing - Theory, News & General
Topic: Are you an Inadvertent Market Timer?
Replies: 6
Views: 1303

Re: Are you an Inadvertent Market Timer?

I don't think that counts as 'inadvertent'; if anything, that would be classic market timing or trend following (markets are up? Buy more! Markets tanked? Sell!). Since I just made up the term, so there are no rules that define advertent from inadvertent. If I asked her, she would say she is doing ...
by Rick Ferri
Sun Apr 07, 2019 12:31 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans to Launch Commodities Fund
Replies: 114
Views: 8248

Re: Vanguard Announces Plans to Launch Commodities Fund

edge wrote:
Sun Apr 07, 2019 12:29 pm
Jeez. Can’t they come out with ETFs for the life strategy funds instead of adding these esoteric things?
+1
by Rick Ferri
Sun Apr 07, 2019 12:08 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans to Launch Commodities Fund
Replies: 114
Views: 8248

Re: Vanguard Announces Plans to Launch Commodities Fund

Don't confuse speculating on the price of a pile of rocks with a company that digs up rocks and sells them. One is speculating on the commodity, the other is investing in a going concern company.

Rick Ferri
by Rick Ferri
Sun Apr 07, 2019 12:05 pm
Forum: Investing - Theory, News & General
Topic: Are you an Inadvertent Market Timer?
Replies: 6
Views: 1303

Are you an Inadvertent Market Timer?

My 86 year old mother is an inadvertent market timer. After a long bull market or sharp bear market, she thinks we need to do something in her portfolio.

My 86 Year Old Mother Is An Inadvertent Market Timer on Forbes.com

Rick Ferri
by Rick Ferri
Sun Apr 07, 2019 7:27 am
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans to Launch Commodities Fund
Replies: 114
Views: 8248

Re: Vanguard Announces Plans to Launch Commodities Fund

Eleven years ago, Larry Swedroe and I had a long debate about including commodities in a portfolio. Larry was for included them and I was against it. There are probably a lot of people on this forum who remember this. My reasons have not changed. The Great Commodities Debate Part 1 The Great Commodi...
by Rick Ferri
Sat Apr 06, 2019 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: Hourly vs. retainer for a financial planner
Replies: 64
Views: 3285

Re: Hourly vs. retainer for a financial planner

I've left my wife an "if I die" note. One of the first instructions to her is to pay the 0.3% fee for a Vanguard advisor and request a three fund portfolio. I've been in the business for 30 years and have been told dozens of times that I'm that person for a spouse to contact in the "if I die" note....
by Rick Ferri
Sat Apr 06, 2019 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Hourly vs. retainer for a financial planner
Replies: 64
Views: 3285

Re: Hourly vs. retainer for a financial planner

There is always room for high fee advisers who cater to the name-dropping silver tea set crowd, but you won't find many here. :wink:

Rick Ferri
by Rick Ferri
Sat Apr 06, 2019 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Hourly vs. retainer for a financial planner
Replies: 64
Views: 3285

Re: Hourly vs. retainer for a financial planner

Having a financial plan created by a qualified planner isn't an ongoing exercise. There can be a high one-time charge based on the complexity of a case, but after that, minimal time is needed to update a plan. I am not a financial planner and do not do financial plans. This is my observation of the ...
by Rick Ferri
Sat Apr 06, 2019 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Hourly vs. retainer for a financial planner
Replies: 64
Views: 3285

Re: Hourly vs. retainer for a financial planner

According to an annual review done by Michael Kitces, a comprehensive financial plan written by an experienced CPF takes about 15 hours and cost about $3,500. This is a one-time cost. No-one needs a financial plan every year and no one should be paying for one with their adviser charging 1% annual A...
by Rick Ferri
Sat Apr 06, 2019 12:25 pm
Forum: Personal Finance (Not Investing)
Topic: Hourly vs. retainer for a financial planner
Replies: 64
Views: 3285

Re: Hourly vs. retainer for a financial planner

There are dozens of highly qualified investment advisers who are now charging low fees for portfolio management. In my recent "Bogleheads on Investing" podcast with Allan Roth, we discussed 0.3% as the maximum AUM fee clients should be paying for portfolio management and some advice. Many firms are ...
by Rick Ferri
Sat Apr 06, 2019 10:27 am
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans to Launch Commodities Fund
Replies: 114
Views: 8248

Re: Vanguard Announces Plans to Launch Commodities Fund

It was bound to happen eventually because Vanguard investors are going elsewhere to invest in higher-cost commodity funds. Vanguard is all about offering low-cost alternatives to their investors. They did the same thing with international bond funds and factor funds. This is not an endorsement of th...
by Rick Ferri
Sat Apr 06, 2019 8:54 am
Forum: Personal Investments
Topic: DFA Advisory Fees vs. Weighted Returns
Replies: 9
Views: 530

Re: DFA Advisory Fees vs. Weighted Returns

There are plenty of advisers today who would gladley manage a portfolio using DFA funds or a mix for 0.35% or less. During our "Bogleheads on Investing" podcast, Allan Roth and I discussed an appropriate adviser fee for a managed portfolio (with or without DFA funds). We agreed it should be NO MORE ...
by Rick Ferri
Sat Apr 06, 2019 8:47 am
Forum: Personal Investments
Topic: DFA Advisory Fees vs. Weighted Returns
Replies: 9
Views: 530

Re: DFA Advisory Fees vs. Weighted Returns

"Alpha goes to the manager." "Alpha goes to the manager." "Alpha goes to the manager." What do I mean by this? If an advised account beats the market before adviser fees, it does not outperform after the adviser take their fee because the alpha (outperformance) goes to the manager (adviser). I mana...
by Rick Ferri
Fri Apr 05, 2019 8:37 pm
Forum: Investing - Theory, News & General
Topic: Valuation Informed Indexing
Replies: 37
Views: 1963

Re: Valuation Informed Indexing

Indexing is a great option for those of us who are not yet well-informed on what it takes to pick stocks or funds effectively or who just do not have the time to engage in the research work required to do so. That's about 99% of investors. Even those who are "well informed" usually don't outperform...
by Rick Ferri
Fri Apr 05, 2019 7:15 pm
Forum: Investing - Theory, News & General
Topic: April "Bogleheads on Investing" podcast with special guest Allan Roth!
Replies: 18
Views: 2402

Re: April "Bogleheads on Investing" podcast with special guest Allan Roth!

Thousands of people have downloaded Allan Roth's interview posted today. Here is a list of past Bogleheads on Investing podcast guests: Sep. 2018: John Bogle Oct. 2018: David Blitzer Nov. 2018: Jonathan Clements Dec. 2018: Cristine Benz Jan. 2019: Gus Sauter Feb. 2019: Dan Egan Mar. 2019: Mike Piper
by Rick Ferri
Fri Apr 05, 2019 4:23 pm
Forum: Investing - Theory, News & General
Topic: April "Bogleheads on Investing" podcast with special guest Allan Roth!
Replies: 18
Views: 2402

Re: April "Bogleheads on Investing" podcast with special guest Allan Roth!

There are several different ways to do "direct indexing," all having the same end-goal. The idea of all strategies is to own hundreds of stocks, then selectively harvest losses from the losing stocks. The losses are used to offset a large gain someplace else in your existing portfolio, such as a sin...
by Rick Ferri
Fri Apr 05, 2019 11:54 am
Forum: Investing - Theory, News & General
Topic: April "Bogleheads on Investing" podcast with special guest Allan Roth!
Replies: 18
Views: 2402

April "Bogleheads on Investing" podcast with special guest Allan Roth!

I'm pleased to have Allan Roth, CPA, CFP, as my guest on Episode 008 of the "Bogleheads on Investing" podcast. Our discussion focuses on investment advisers and the investment advice industry. There are surprises. This podcast is also available on several podcast sites including Apple Podcasts, iTun...
by Rick Ferri
Thu Apr 04, 2019 8:20 am
Forum: Investing - Theory, News & General
Topic: The man behind the S&P 500 is retiring
Replies: 4
Views: 1121

The man behind the S&P 500 is retiring

David M. Blitzer, S&P Global Indice's Managing Director & Chief Investment Strategist and Director of Quantitative Services is retiring after 40 years of service. Dr. Blitzer has led the S&P Dow Jones Index Committee since 1995, which includes selecting the stocks that go in and out of the S&P 500 a...
by Rick Ferri
Sat Mar 30, 2019 1:36 pm
Forum: Personal Finance (Not Investing)
Topic: Re-Balancing Approach using 5% Absolute Difference
Replies: 4
Views: 378

Re: Re-Balancing Approach using 5% Absolute Difference

There is no right answer. No one can tell you whether your performance will be better by rebalancing when one asset class is out of parameters or two or all three. The best answer to your question is to say do what's easiest for you because you're the one who has to do it. I will say that precision ...
by Rick Ferri
Thu Mar 28, 2019 1:36 pm
Forum: Investing - Theory, News & General
Topic: Schwab switching to a subscription-based FP in its digital advisory service
Replies: 22
Views: 1852

Re: Schwab switching to a subscription-based FP in its digital advisory service

OK, is this correct? Assuming I have $1,000,000 to invest. If I used someone like Vanguard's Advisory Service that charges 0.30% AUM I'd be paying them $3,000 per year. If I used this new Schwab service I'd pay $360 per year ($30 per month)... plus the initial $300 start-up fee. Surely I'm missing ...
by Rick Ferri
Thu Mar 28, 2019 12:00 pm
Forum: Investing - Theory, News & General
Topic: Schwab switching to a subscription-based FP in its digital advisory service
Replies: 22
Views: 1852

Schwab switching to a subscription-based FP in its digital advisory service

Schwab is doing away with AUM fees in their Schwab Intelligent Advisory, which includes unlimited guidance from a certified financial planner and an in-depth financial plan. Under the new billing, Schwab will charge new customers an upfront fee of $300 and a flat $30 a month starting on April 1, ins...
by Rick Ferri
Wed Mar 27, 2019 7:17 pm
Forum: Personal Investments
Topic: How much should I pay for a financial advisor?
Replies: 27
Views: 1581

Re: How much should I pay for a financial advisor?

I've been in this adviser industry for 30 years and know the market. Financial advisers fees are the last bastion of gluttony in the investment industry. The good news is they are coming down FAST! It's a very competitive market for clients. The published average for a $1 mm portfolio management rel...
by Rick Ferri
Tue Mar 26, 2019 8:10 am
Forum: Investing - Theory, News & General
Topic: Submit questions for Allan Roth, my next "Bogleheads on Investing" podcast guest
Replies: 22
Views: 1807

Re: Submit questions for Allan Roth, my next "Bogleheads on Investing" podcast guest

I appreciate all the suggestions and I will attempt to add a couple of specific investment related questions if there is time. As a reminder: The theme of our discussion will be investment advice and investment advisers . We'll talk about where people get advice, the quality of advice, conflicts of ...
by Rick Ferri
Tue Mar 26, 2019 3:57 am
Forum: Investing - Theory, News & General
Topic: Submit questions for Allan Roth, my next "Bogleheads on Investing" podcast guest
Replies: 22
Views: 1807

Submit questions for Allan Roth, my next "Bogleheads on Investing" podcast guest

Allan Roth will be my next Bogleheads on Investing podcast guest. The theme of our discussion will be investment advice and investment advisers . We'll talk about where people get advice, the quality of advice, conflicts of interest, the state of the adviser market, and ideas on how to avoid gettin...
by Rick Ferri
Thu Mar 07, 2019 6:04 pm
Forum: Investing - Theory, News & General
Topic: Guest Mike Piper on "Bogleheads on Investing" podcast talking Social Security
Replies: 17
Views: 3812

Re: Guest Mike Piper on "Bogleheads on Investing" podcast talking Social Security

3-20Characters wrote:
Thu Mar 07, 2019 4:36 pm
Listening now. Thanks Rick and Mike! A typo on the description page:

Oblivious Investsor blog

Oblivious Investor blog
Fixed. Thanks! :oops:
by Rick Ferri
Thu Mar 07, 2019 7:07 am
Forum: Investing - Theory, News & General
Topic: Guest Mike Piper on "Bogleheads on Investing" podcast talking Social Security
Replies: 17
Views: 3812

Re: Guest Mike Piper on "Bogleheads on Investing" podcast talking Social Security

All of Wade D. Pfau's articles on Social Security can be found on his website at RetirementReseacher.com.

Rick Ferri
by Rick Ferri
Wed Mar 06, 2019 5:57 pm
Forum: Investing - Theory, News & General
Topic: Guest Mike Piper on "Bogleheads on Investing" podcast talking Social Security
Replies: 17
Views: 3812

Guest Mike Piper on "Bogleheads on Investing" podcast talking Social Security

. Mike Piper , a.k.a. ObliviousInvestor.com was my guest this month on the "Bogleheads on Investing" podcast. We discussed all things Social Security including his book, Social Security Made Simple, and his FREE opensource Social Security calculator at OpenSocialSecurity.com Enjoy! Bogleheads on Inv...
by Rick Ferri
Mon Mar 04, 2019 4:41 am
Forum: Investing - Theory, News & General
Topic: Questions for Mike Piper - Next "Bogleheads on Investing" guest
Replies: 22
Views: 2526

Re: Questions for Mike Piper - Next "Bogleheads on Investing" guest

Thank you for your questions. We will try to answer as many general questions as time permits. The podcast will be posted by Wednesday evening.

The topic is now closed.

Rick Ferri
by Rick Ferri
Sat Mar 02, 2019 10:46 am
Forum: Investing - Theory, News & General
Topic: Do most financial advisors push the lump sum option?
Replies: 42
Views: 2928

Re: Do most financial advisors push the lump sum option?

No one can provide the OP with the best solution without knowing ALL the details about this case. Speculating that "advisers are biased" because of fees, commissions, or whatever are not constructive because they may cause the OP to make the wrong choice.

Rick Ferri
by Rick Ferri
Thu Feb 28, 2019 4:20 pm
Forum: Forum Issues and Administration
Topic: Keep Bogleheads Free! (as in unaffiliated)
Replies: 52
Views: 5074

Re: Keep Bogleheads Free! (as in unaffiliated)

Certainly the trend has been for the forum to be less tilted towards Vanguard over time rather than more, no? After all, the Morningstar forum was called "Vanguard Diehards" while the modern incarnation does not include Vanguard in its name, the wiki gives instructions on how to construct a low-cos...
by Rick Ferri
Thu Feb 28, 2019 2:41 pm
Forum: Forum Issues and Administration
Topic: Keep Bogleheads Free! (as in unaffiliated)
Replies: 52
Views: 5074

Re: Keep Bogleheads Free! (as in unaffiliated)

So there is no confusion, I started this conversation as an open discussion about the future of the Bogleheads, which includes a discussion about Vanguard, to which I am giving my opinion that there should be no affiliation between the Bogleheads and Vanguard.

Rick Ferri
by Rick Ferri
Thu Feb 28, 2019 2:29 pm
Forum: Forum Issues and Administration
Topic: Keep Bogleheads Free! (as in unaffiliated)
Replies: 52
Views: 5074

Re: Keep Bogleheads Free! (as in unaffiliated)

Title changed for clarity. :happy
by Rick Ferri
Thu Feb 28, 2019 2:22 pm
Forum: Forum Issues and Administration
Topic: Keep Bogleheads Free! (as in unaffiliated)
Replies: 52
Views: 5074

Re: Keep Boglehead's Free!

Free meaning unaffiliated.
by Rick Ferri
Thu Feb 28, 2019 2:19 pm
Forum: Forum Issues and Administration
Topic: Keep Bogleheads Free! (as in unaffiliated)
Replies: 52
Views: 5074

Keep Bogleheads Free! (as in unaffiliated)

This post may be premature; however, I feel an open discussion has to begin. The Boglehead's was an idea inspired by Jack Bogle. It was created on Morningstar by Taylor Larimore in the late 1990s and moved here a few years later. I've been involved for most of that time as have many others. This is ...
by Rick Ferri
Sun Feb 24, 2019 6:34 am
Forum: Investing - Theory, News & General
Topic: Questions for Mike Piper - Next "Bogleheads on Investing" guest
Replies: 22
Views: 2526

Questions for Mike Piper - Next "Bogleheads on Investing" guest

Mike Piper will be my guest next week on the Bogleheads on Investing podcast. Mike runs the Oblivious Investor blog and is the author of several books including Social Security Made Simple . He is also the creator of the free Open Social Security calculator. We'll be discussing Social Security in th...
by Rick Ferri
Wed Feb 20, 2019 11:57 am
Forum: Investing - Theory, News & General
Topic: Portfolio visualizer says no rebalance bonus
Replies: 38
Views: 2978

Re: Portfolio visualizer says no rebalance bonus

The purpose of diversification and rebalancing is to reduce the risk of a large loss. Any return benefit that may come from doing this is a benefit, but as Jack Bogle would say, "Don't count on it." Rick Ferri But compare: Passive Investing Beats the Markets ...regular rebalancing of low-cost index...
by Rick Ferri
Wed Feb 20, 2019 11:55 am
Forum: Investing - Theory, News & General
Topic: REIT's and Rick Ferri
Replies: 28
Views: 4893

Re: REIT's and Rick Ferri

Commercial real estate is about 13% of GDP but only represents about 3% of the stock market. Investing an extra 10% in property REITs increased the allocation in commercial real estate closer to its weight in the real economy. Some people say the correlation between REITs and the rest of the market ...
by Rick Ferri
Wed Feb 20, 2019 11:14 am
Forum: Investing - Theory, News & General
Topic: Portfolio visualizer says no rebalance bonus
Replies: 38
Views: 2978

Re: Portfolio visualizer says no rebalance bonus

The purpose of diversification and rebalancing is to reduce the risk of a large loss. Any return benefit that may come from doing this is a benefit, but as Jack Bogle would say, "Don't count on it."

Rick Ferri
by Rick Ferri
Wed Feb 20, 2019 5:15 am
Forum: Investing - Theory, News & General
Topic: Portfolio visualizer says no rebalance bonus
Replies: 38
Views: 2978

Re: Portfolio visualizer says no rebalance bonus

Not rebalancing always ends with higher returns if the stock market goes higher over the period. Your portfolio also ends up with a much larger allocation to equity than when you started, which means you've taken more risk over the period than if you did rebalance. If your goal is to have the most m...