Search found 8560 matches

by Rick Ferri
Wed Feb 20, 2019 11:57 am
Forum: Investing - Theory, News & General
Topic: Portfolio visualizer says no rebalance bonus
Replies: 35
Views: 2173

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: 15
Views: 2100

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: 35
Views: 2173

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: 35
Views: 2173

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...
by Rick Ferri
Fri Feb 15, 2019 5:07 pm
Forum: Investing - Theory, News & General
Topic: Rick Ferri on the Rational Reminder Podcast
Replies: 17
Views: 1833

Re: Rick Ferri on the Rational Reminder Podcast

moneyman11 wrote:
Fri Feb 15, 2019 1:19 pm
Embarrassingly accurate summary of my own investing journey.
Not embarrassing! Most Bogleheads are still working things out. Just read the posts on the Board. So many are hooked on finding perfection, "Should I have 14% in emerging markets or 13%?"

Rick Ferri
by Rick Ferri
Fri Feb 15, 2019 10:33 am
Forum: Investing - Theory, News & General
Topic: Episode 006: "Bogleheads on Investing" with guest Dan Egan
Replies: 22
Views: 2194

Re: Episode 006: "Bogleheads on Investing" with guest Dan Egan

So Rick Ferri mentioned that he himself is starting a company to give hourly advice. Sounded maybe similar to Allan Roth's business model? If Betterment or other roboadvisor had a different platform to implement a 3-fund portfolio in both tax-advantaged and taxable accounts with perhaps tax-loss ha...
by Rick Ferri
Thu Feb 14, 2019 9:53 pm
Forum: Investing - Theory, News & General
Topic: Rick Ferri on the Rational Reminder Podcast
Replies: 17
Views: 1833

Re: Rick Ferri on the Rational Reminder Podcast

The Education of an Index Investor Born in darkness Attracted by shiny objects. Does what others do. Not familiar with benchmarking. No clue about fees. Don't really know what index funds are. Thinks the Dow Jones Industrial Average is the market. Finds indexing enlightenment Discovers what indices...
by Rick Ferri
Thu Feb 14, 2019 9:15 pm
Forum: Investing - Theory, News & General
Topic: Rick Ferri on the Rational Reminder Podcast
Replies: 17
Views: 1833

Re: Rick Ferri on the Rational Reminder Podcast

AHTFY wrote:
Thu Feb 14, 2019 9:14 pm
Thanks for letting us know about this.

Has anyone been listening to this podcast? Is it worthwhile?
Of course it is! :D
by Rick Ferri
Thu Feb 14, 2019 10:14 am
Forum: Investing - Theory, News & General
Topic: Rick Ferri on the Rational Reminder Podcast
Replies: 17
Views: 1833

Rick Ferri on the Rational Reminder Podcast

Benjamin Felix and Cameron Passmore hosted me as their guest on the "Rational Reminder" podcast for Canadian investors. The topics we talked about were generic to investors in all countries.

Rational Reminder with guest Rick Ferri

Enjoy!
Rick
by Rick Ferri
Wed Feb 06, 2019 10:21 am
Forum: Investing - Theory, News & General
Topic: Episode 006: "Bogleheads on Investing" with guest Dan Egan
Replies: 22
Views: 2194

Re: Episode 006: "Bogleheads on Investing" with guest Dan Egan

4strings wrote:
Wed Feb 06, 2019 10:17 am
When will this episode be released? was hoping to listen to it at the gym tonight!
It was released last night all the major podcast distribution sites; iTunes, Sticker, Google Play, Podbean, and others.
by Rick Ferri
Tue Feb 05, 2019 10:25 pm
Forum: Investing - Theory, News & General
Topic: Episode 006: "Bogleheads on Investing" with guest Dan Egan
Replies: 22
Views: 2194

Re: Episode 006: "Bogleheads on Investing" with guest Dan Egan

bzargarcia wrote:
Tue Feb 05, 2019 7:52 pm
Looking forward to this one. I really like Egan’s work.
Dan does an excellent job.

Rick
by Rick Ferri
Tue Feb 05, 2019 7:42 pm
Forum: Investing - Theory, News & General
Topic: Episode 006: "Bogleheads on Investing" with guest Dan Egan
Replies: 22
Views: 2194

Episode 006: "Bogleheads on Investing" with guest Dan Egan

Dan Egan is our guest in Episode 6. Mr. Daniel P. Egan is the Director of Behavioral Finance and Investing at Betterment and an up-and-coming leader in the field of improving personal decision making by understanding how psychology interacts with design, money, investing and spending. His research i...
by Rick Ferri
Fri Feb 01, 2019 12:15 pm
Forum: Investing - Theory, News & General
Topic: Portfolio implementation service list
Replies: 2
Views: 286

Portfolio implementation service list

I'm looking for assistance in compiling a list of low-cost portfolio implementation services. What I mean by implementation services is a registered investment adviser (RIA) or investment company (IC) that will take a portfolio the client provides and implements that portfolio for a low fee. The com...
by Rick Ferri
Tue Jan 29, 2019 9:04 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Do Surprises Really Move Markets?
Replies: 30
Views: 1750

Re: Larry Swedroe: Do Surprises Really Move Markets?

Larry tells part of the story when he says, "Prices will not change if the expected happens. It is the unexpected that causes prices to move." The question he does not address is how much prices move relative to expectations. I did a lot of work on this question in the 1990s and found that: 1) the n...
by Rick Ferri
Mon Jan 28, 2019 1:33 pm
Forum: Investing - Theory, News & General
Topic: "Money Savage" podcast with guest Rick Ferri
Replies: 19
Views: 2405

Re: "Money Savage" podcast with guest Rick Ferri

Rick, I have always appreciated your work, but I never listen to podcasts because I don't have 20 minutes of my life to give away to the inefficiency of such listening. I only read transcripts of these so that I can scan them for anything that may add value. Will you be posting a link to the transc...
by Rick Ferri
Mon Jan 28, 2019 10:44 am
Forum: Investing - Theory, News & General
Topic: Another market timing thread (Chart)
Replies: 38
Views: 2628

Re: Another market timing thread (Chart)

Dividends averaged 5% during the period. With dividends reinvested, "the guy" would have come out way ahead staying in the market.
by Rick Ferri
Mon Jan 28, 2019 10:10 am
Forum: Investing - Theory, News & General
Topic: "Money Savage" podcast with guest Rick Ferri
Replies: 19
Views: 2405

"Money Savage" podcast with guest Rick Ferri

I was honored to be asked on the Money Savage with George Grombacher. On this show, we talked about why an investor should endeavor to remove complexity from investing and move towards simplicity, Core 4 Investing, and the four stages of index investor's education. iTunes Google Play Stitcher Spotif...
by Rick Ferri
Sat Jan 26, 2019 11:47 am
Forum: Investing - Theory, News & General
Topic: Set it and forget it
Replies: 74
Views: 13057

Re: Set it and forget it

+1. I was introduced to Jack Bogle (and subsequently Vanguard) in a Frontline documentary, The Retirement Gamble . I watched and felt my eyes widening and my head nodding as Jack spoke because I got it. I mean, I GOT IT. This idea of setting, forgetting, and doing nothing is not only wealth produci...
by Rick Ferri
Wed Jan 23, 2019 2:12 pm
Forum: Personal Investments
Topic: Marketwatch - If everyone invested like John Bogle, markets couldn’t work right
Replies: 54
Views: 3216

Re: Marketwatch - If everyone invested like John Bogle, markets couldn’t work right

Marketwatch - If everyone invested like John Bogle, markets couldn’t work right
But they don't, so no worries.

Rick Ferri
by Rick Ferri
Wed Jan 23, 2019 9:08 am
Forum: Investing - Theory, News & General
Topic: "Bogleheads on Investing" podcast growing audience
Replies: 24
Views: 2660

Re: "Bogleheads on Investing" podcast growing audience

I listen on the Podcast App (not the natives app to iPhone but an app literally called Podcast App). I wonder if those who listen on "other" apps like myself are included into these numbers (like Podbean, Overcast, etc). I believe so because it takes the feed directly from Podbean. All I do is post...
by Rick Ferri
Mon Jan 21, 2019 10:25 pm
Forum: Investing - Theory, News & General
Topic: "Bogleheads on Investing" podcast growing audience
Replies: 24
Views: 2660

Re: "Bogleheads on Investing" podcast growing audience

Dialectical Investor wrote:
Mon Jan 21, 2019 10:14 pm
I've not had the opportunity to listen to any of these yet, but I think William Bernstein would be a great person to interview. Probably on your list already though.
He is on the list.

When I interview Bill, the three of us will have an enlightening conversation. :wink:

Rick Ferri
by Rick Ferri
Mon Jan 21, 2019 7:51 pm
Forum: Investing - Theory, News & General
Topic: "Bogleheads on Investing" podcast growing audience
Replies: 24
Views: 2660

"Bogleheads on Investing" podcast growing audience

Gus Sauter, our January guest, reached 5,000 downloads in less than two weeks. That's a record! . Episode - Guest - Released - Downloads 001: John C. Bogle ...09/14/2018...11,606 002: Dr. David Blitzer ...10/05/2018....5,852 003: Jonathan Clements ...11/06/2018....6,398 004: Christine Benz ...12/13/...
by Rick Ferri
Thu Jan 17, 2019 7:38 pm
Forum: Investing - Theory, News & General
Topic: The Worth Of A Man: A Tribute To John C. Bogle
Replies: 45
Views: 5509

Re: The Worth Of A Man: A Tribute To John C. Bogle

Fallible wrote:
Thu Jan 17, 2019 7:34 pm
While reading your tribute Rick, I was nodding in agreement all the way until I got to your line: “Rest in peace, Jack. You’ve done enough.” And I thought, yes, he has done enough, but would he ever have agreed to that?
Oh, hell no!

Rick Ferri
by Rick Ferri
Thu Jan 17, 2019 7:07 am
Forum: Investing - Theory, News & General
Topic: Does Microcap add diversification to Total Stock Market Index fund?
Replies: 20
Views: 1679

Re: Does Microcap add diversification to Total Stock Market Index fund?

In Rick Ferri's book All About Asset Allocation he mentions that Micro-cap stocks tend to be mutually exclusive from most broad U.S. equity benchmarks, and their performance tends not to correlate highly with the rest of the market. This creates a diversification benefit. He states its difficult to...
by Rick Ferri
Wed Jan 16, 2019 8:16 pm
Forum: Investing - Theory, News & General
Topic: The Worth Of A Man: A Tribute To John C. Bogle
Replies: 45
Views: 5509

The Worth Of A Man: A Tribute To John C. Bogle

A Bogleheads tribute to Mr. Bogle now on Forbes.com

The Worth Of A Man: A Tribute To John C. Bogle

Rick Ferri
by Rick Ferri
Wed Jan 16, 2019 7:10 pm
Forum: Investing - Theory, News & General
Topic: The Bogle Rule
Replies: 24
Views: 4541

The Bogle Rule

It frustrated Jack Bogle to see our leaders in Washington struggle with the concept of imposing a fiduciary duty on all financial advisers who guide individual investors. This effort is called the fiduciary rule. In Jack's honor, I propose we rename this effort "The Bogle Rule".
by Rick Ferri
Wed Jan 16, 2019 5:47 pm
Forum: Investing - Theory, News & General
Topic: John Bogle has died at age 89
Replies: 856
Views: 49290

Re: John Bogle is dead at 89

Most people who come into the investment industry choose to make money. Jack Bogle chose to make a difference.

And he did.

RIP
by Rick Ferri
Wed Jan 16, 2019 12:17 pm
Forum: Investing - Theory, News & General
Topic: Further diversifying the 60/40 portfoilio?
Replies: 29
Views: 3672

Re: Further diversifying the 60/40 portfoilio?

The quest to find a perfect portfolio leads to a web of complexity and nothing of value.

Rick Ferri
by Rick Ferri
Wed Jan 16, 2019 8:55 am
Forum: Investing - Theory, News & General
Topic: Investment advisors- is regulatory burden higher on fiduciaries?
Replies: 54
Views: 2799

Re: Investment advisors- is regulatory burden higher on fiduciaries?

Broker suitability: Walk into a car dealership. Describe your ideal car. The salespeople recognize the competitor across the street has the perfect model, although their company has one model that might fit your needs. They recommend their model. Adviser fiduciary: Walk into a car dealership. Descr...
by Rick Ferri
Tue Jan 15, 2019 8:48 am
Forum: Investing - Theory, News & General
Topic: An Annuity Hater Revisits SPIAs
Replies: 22
Views: 3104

An Annuity Hater Revisits SPIAs

Allan Roth revisits whether a single premium immediate annuity (SPIA) is a good option to hedge against longevity risk and inflation: An Annuity Hater Revisits SPIAs "A SPIA provides some longevity insurance at a reasonable rate. Even using a corporate-bond comparison, the cost of longevity insuranc...
by Rick Ferri
Thu Jan 10, 2019 7:48 pm
Forum: Investing - Theory, News & General
Topic: January "Bogleheads on Investing" podcast with Gus Sauter now available
Replies: 32
Views: 2981

Re: January "Bogleheads on Investing" podcast with Gus Sauter now available

Those with knowledge will retire and others without knowledge will take over, so the cycle will repeat.

I'm speculating, of course, but it SOUNDS logical. :D

Rick Ferri
by Rick Ferri
Thu Jan 10, 2019 6:15 pm
Forum: Investing - Theory, News & General
Topic: January "Bogleheads on Investing" podcast with Gus Sauter now available
Replies: 32
Views: 2981

Re: January "Bogleheads on Investing" podcast with Gus Sauter now available

Rick, Can you please explain what "arbitraged away" means? I heard it on the podcast and also see it in your response above, but I still don't understand it :oops: Great Podcast! Thanks for your time and effort. It means investment companies start exploiting the price difference until overcrowding ...
by Rick Ferri
Thu Jan 10, 2019 10:29 am
Forum: Investing - Theory, News & General
Topic: January "Bogleheads on Investing" podcast with Gus Sauter now available
Replies: 32
Views: 2981

Re: January "Bogleheads on Investing" podcast with Gus Sauter now available

Both. I'll record more than an hour and then cut one or two questions that either the guest didn't know or the answer didn't really fit the rest of the interview or may have violated some legal or compliance rule. The question I cut after the interview with Gus was his views on High Frequency Tradin...
by Rick Ferri
Thu Jan 10, 2019 10:07 am
Forum: Investing - Theory, News & General
Topic: January "Bogleheads on Investing" podcast with Gus Sauter now available
Replies: 32
Views: 2981

Re: January "Bogleheads on Investing" podcast with Gus Sauter now available

Echoing the other comments -- great interview. Really down to earth and non-dogmatic guy. I thought his take on factors (like value) and their shelf-lives before they're arbitraged away was particularly thought provoking. In a sense, Gus was saying that factor premiums are arbitraged away to the ex...
by Rick Ferri
Wed Jan 09, 2019 8:35 pm
Forum: Investing - Theory, News & General
Topic: Net net stocks
Replies: 13
Views: 1331

Re: Net net stocks

These [cheap stocks] used to be available in the US but are now mostly available abroad. I want to make sure I understand. You're saying this website is making the argument that it's as hard as heck to pick winning stocks here in the US where we live, but easy to pick winning stocks in foreign mark...
by Rick Ferri
Wed Jan 09, 2019 3:01 pm
Forum: Investing - Theory, News & General
Topic: Gus Sauter: the next "Bogleheads on Investing" podcast guest
Replies: 28
Views: 2216

Re: Gus Sauter: the next "Bogleheads on Investing" podcast guest

Gus and I did not talk about current market conditions or his thoughts valuation or the ERP. Aswath Damodaran would make an excellent guest at some time in the future.

Rick Ferri
by Rick Ferri
Wed Jan 09, 2019 2:38 pm
Forum: Investing - Theory, News & General
Topic: Gus Sauter: the next "Bogleheads on Investing" podcast guest
Replies: 28
Views: 2216

Re: Gus Sauter: the next "Bogleheads on Investing" podcast guest

sunnywindy wrote:
Tue Jan 08, 2019 3:53 pm
If the active ETFs are deemed successful, are they planning to offer more? Potentially more multifactor funds in International and EM?

Thanks!
Gus is no longer employed by Vanguard and since investment companies do not make announcements like this public, he would not know.
by Rick Ferri
Wed Jan 09, 2019 6:03 am
Forum: Investing - Theory, News & General
Topic: January "Bogleheads on Investing" podcast with Gus Sauter now available
Replies: 32
Views: 2981

Re: January "Bogleheads on Investing" podcast with Gus Sauter now available

Good podcast. Except you didn't ask my question. :twisted: Your questions was: "Ask him why Vanguard created the S&P 600 value index fund VIOV and the new factor funds (VFMF, VFVA, etc.) and then put them in the dungeon of the website and barely marketed them. Were they made to suit a particular in...
by Rick Ferri
Tue Jan 08, 2019 7:26 pm
Forum: Investing - Theory, News & General
Topic: January "Bogleheads on Investing" podcast with Gus Sauter now available
Replies: 32
Views: 2981

Re: January "Bogleheads on Investing" podcast with Gus Sauter now available

We could have gone on for a couple more hours! One question that had to be cut due to a time constraint was Gus's view of high frequency trading. He is for it. We both agreed that while HFT may make your blood boil, the algos do make the market more liquid and only get fractions of a penny on each s...
by Rick Ferri
Tue Jan 08, 2019 10:44 am
Forum: Investing - Theory, News & General
Topic: January "Bogleheads on Investing" podcast with Gus Sauter now available
Replies: 32
Views: 2981

Re: January "Bogleheads on Investing" podcast with Gus Sauter now available

duplin county wrote:
Tue Jan 08, 2019 10:16 am
Great interview. I feel Gus did not address Fidelity offering zero amount requirement for initial investing while Vanguard requires $3000 to start.
I'm speculating he would answer that Vanguard ETFs do not have minimums.
by Rick Ferri
Mon Jan 07, 2019 10:55 pm
Forum: Investing - Theory, News & General
Topic: January "Bogleheads on Investing" podcast with Gus Sauter now available
Replies: 32
Views: 2981

January "Bogleheads on Investing" podcast with Gus Sauter now available

You will enjoy this special podcast with Gus Sauter , former Director and Chief Investment Officer of the Vanguard Group. Gus led the Quantitative Investing Group since joining Vanguard and head investment manager of Vanguard index funds from 1987 through 2003. He is also the creator of Vanguard's e...
by Rick Ferri
Mon Jan 07, 2019 10:39 pm
Forum: Investing - Theory, News & General
Topic: Gus Sauter: the next "Bogleheads on Investing" podcast guest
Replies: 28
Views: 2216

Re: Gus Sauter: the next "Bogleheads on Investing" podcast guest

This podcast is now available. Thank you to all who participated by asking question. We were able to cover most questions although not all questions due to a time constraint.

"Bogleheads on Investing" podcast guest Gus Sauter

Rick Ferri
The host
by Rick Ferri
Sat Jan 05, 2019 7:54 pm
Forum: Personal Investments
Topic: VG advises 15% International Bonds (VTABX)... Why?
Replies: 48
Views: 3820

Re: VG advises 15% International Bonds (VTIAX)... Why?

International bonds add more complexity and add slightly higher cost to a fixed income portfolio. IMO, they are not necessary and I do not recommend them . That being said, if someone believes the international bond story and wants them, I would not argue with them. Rick Ferri Really? https://core-...
by Rick Ferri
Sat Jan 05, 2019 8:58 am
Forum: Personal Investments
Topic: VG advises 15% International Bonds (VTABX)... Why?
Replies: 48
Views: 3820

Re: VG advises 15% International Bonds (VTIAX)... Why?

International bonds add more complexity and add slightly higher cost to a fixed income portfolio. IMO, they are not necessary and I do not recommend them . That being said, if someone believes the international bond story and wants them, I would not argue with them. Rick Ferri Really? https://core-...
by Rick Ferri
Fri Jan 04, 2019 5:27 am
Forum: Personal Investments
Topic: BAM Advisor: Advice on alt funds and allocations
Replies: 54
Views: 2818

Re: BAM Advisor: Advice on alt funds and allocations

Advisers make investing complicated for the purpose of job security. Let's look at this pragmatically. Your being asked to add LENDX 6.7%, QSPRX 5.8%, and DFGEX 2.7%. Those percentages are so precise they create the illusion of importance by making you think there is some scientific formula that sol...
by Rick Ferri
Wed Jan 02, 2019 5:17 pm
Forum: Investing - Theory, News & General
Topic: Gus Sauter: the next "Bogleheads on Investing" podcast guest
Replies: 28
Views: 2216

Gus Sauter: the next "Bogleheads on Investing" podcast guest

I am interviewing Gus Sauter, former Chief Investment Officer (CIO) of Vanguard as my next podcast guest. Gus worked at Vanguard for 25 year and was CIO from 2002 to 2012. The interview will be recorded on Monday and posted later in the week. If you would like to ask Gus a question, please post it b...
by Rick Ferri
Wed Jan 02, 2019 12:51 pm
Forum: Personal Investments
Topic: VG advises 15% International Bonds (VTABX)... Why?
Replies: 48
Views: 3820

Re: VG advises 15% International Bonds (VTIAX)... Why?

International bonds add more complexity and add slightly higher cost to a fixed income portfolio. IMO, they are not necessary and I do not recommend them. That being said, if someone believes the international bond story and wants them, I would not argue with them.

Rick Ferri