Search found 1230 matches
- Sat Mar 16, 2024 3:43 pm
- Forum: Investing - Theory, News & General
- Topic: M1 adding monthly fee for users under $10k assets
- Replies: 13
- Views: 1830
Re: M1 adding monthly fee for users under $10k assets
Best decision I made was closing an account there 5 years ago. They wanted to charge me a fee for keeping nothing there in assets (even though it was temporary- I didn’t plan on not ever having assets there again).
- Fri Mar 08, 2024 12:03 pm
- Forum: Personal Finance (Not Investing)
- Topic: feeling stuck with kid expenses and this phase of life
- Replies: 61
- Views: 7376
Re: feeling stuck with kid expenses and this phase of life
When we had 2 in higher cost daycare, from 2015 to 2018, we lowered retirement contributions tremendously. Just had to, there was no other way to make up the $2400 monthly cost. It stunk and it did kind of hurt, not going to lie.
Key was increasing right back when they were out, which we did. We are still paying daycare for 1 that came in 2019, but his daycare ends this June. We will take that savings (roughly 1300/month) and add most of that to retirement accounts.
You will make more money, and those costs do go away. Just stay strong with it, keep faith, and it does get easier.
Key was increasing right back when they were out, which we did. We are still paying daycare for 1 that came in 2019, but his daycare ends this June. We will take that savings (roughly 1300/month) and add most of that to retirement accounts.
You will make more money, and those costs do go away. Just stay strong with it, keep faith, and it does get easier.
- Thu Mar 07, 2024 4:37 am
- Forum: Investing - Theory, News & General
- Topic: Why do large cap growth stocks have periods of outperformance?
- Replies: 35
- Views: 3549
Re: Why do large cap growth stocks have periods of outperformance?
This is ironically why I tilt to SV. I couldn’t handle making this bet and losing from 2000-2010, when the 4% likelihood showed up and I made nothing in the SP500. Lost, in fact.nisiprius wrote: ↑Tue Mar 05, 2024 9:37 amBeautiful!alex_686 wrote: ↑Tue Mar 05, 2024 9:12 am One last thought.
Lets say you proved that a coin had a bias, that it would come up heads 55% of the time.
A fair coin would have 4 straight tails 6% of the time, the unfair one 4%.
With this in mind, how much would you alter you betting? Would you bet your house on this slight advantage? You can only make 1 bet and you won’t know if you have won for 10 years.
- Tue Mar 05, 2024 12:36 pm
- Forum: Personal Consumer Issues
- Topic: about Norway rats
- Replies: 31
- Views: 4745
Re: about Norway rats
2 suggestions:
Get some cats, ones you take care of well (even if they are outside-only).
Use bait/traps. I’ve gotten both online.
I’ve used both, both work well. Cats have always been my best deterrent, but allergic considerations and having ongoing pets might limit this choice.
You’ll want to seal up the entry either way.
Get some cats, ones you take care of well (even if they are outside-only).
Use bait/traps. I’ve gotten both online.
I’ve used both, both work well. Cats have always been my best deterrent, but allergic considerations and having ongoing pets might limit this choice.
You’ll want to seal up the entry either way.
- Mon Mar 04, 2024 9:36 pm
- Forum: Investing - Theory, News & General
- Topic: Emerging Markets Stocks have been a complete disaster
- Replies: 170
- Views: 15837
Re: Emerging Markets Stocks have been a complete disaster
I see it the opposite way. DON’T market time out things because of recent low returns.pascalwager wrote: ↑Mon Mar 04, 2024 8:25 pmSeems like market timing.Bill Bernstein wrote: ↑Mon Mar 04, 2024 7:30 pm "Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell."
--John Templeton
- Mon Mar 04, 2024 3:10 pm
- Forum: Investing - Theory, News & General
- Topic: Emerging Markets Stocks have been a complete disaster
- Replies: 170
- Views: 15837
Re: Emerging Markets Stocks have been a complete disaster
Nathan Drake wrote: ↑Mon Mar 04, 2024 11:40 am Peak pessimism in EM makes me feel good about my large allocation going forward
- Fri Mar 01, 2024 3:29 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard Announces CEO Retirement and Appointment of President
- Replies: 368
- Views: 34499
Re: Vanguard Announces CEO Retirement and Appointment of President
I’m probably wrong, but my first reaction to this was one where the direction goes even further from Bogle. One where Vanguard will begin to offer the full suite of speculative assets for which it doesn’t presently provide a platform.
- Sat Feb 24, 2024 4:03 pm
- Forum: Personal Investments
- Topic: Heavy Value Tilt Away from Mag 7 stocks
- Replies: 221
- Views: 13738
Re: Heavy Value Tilt Away from Mag 7 stocks
How have you enjoyed underperforming the market for the last 15 years? At what point to you capitulate? Couldn’t this be applied similarly to anyone not solely in QQQ the last decade? No, the market has not underperformed the market. The market has of course underperformed particular sectors that have outperformed but when you own the total market you are guaranteed not to underperform the total market. Would International be included in the total market? Something like VT (All World ETF) is what I have in mind. Reasonable minds differ on whether international diversification is necessary. IMO it is a good idea. Yeah that’s kind of where I’m at. I think that anyone who has diversified internationally has trailed US-only for 15 years, but I...
- Sat Feb 24, 2024 11:15 am
- Forum: Personal Investments
- Topic: Heavy Value Tilt Away from Mag 7 stocks
- Replies: 221
- Views: 13738
Re: Heavy Value Tilt Away from Mag 7 stocks
Would International be included in the total market? Something like VT (All World ETF) is what I have in mind.aristotelian wrote: ↑Sat Feb 24, 2024 10:59 amNo, the market has not underperformed the market. The market has of course underperformed particular sectors that have outperformed but when you own the total market you are guaranteed not to underperform the total market.donaldfair71 wrote: ↑Sat Feb 24, 2024 9:57 amCouldn’t this be applied similarly to anyone not solely in QQQ the last decade?aristotelian wrote: ↑Fri Feb 23, 2024 8:37 pm How have you enjoyed underperforming the market for the last 15 years? At what point to you capitulate?
- Sat Feb 24, 2024 9:57 am
- Forum: Personal Investments
- Topic: Heavy Value Tilt Away from Mag 7 stocks
- Replies: 221
- Views: 13738
Re: Heavy Value Tilt Away from Mag 7 stocks
Couldn’t this be applied similarly to anyone not solely in QQQ the last decade?aristotelian wrote: ↑Fri Feb 23, 2024 8:37 pm How have you enjoyed underperforming the market for the last 15 years? At what point to you capitulate?
- Sun Feb 18, 2024 8:00 am
- Forum: Personal Investments
- Topic: Small Cap Value - US/International
- Replies: 25
- Views: 2399
Re: Small Cap Value - US/International
Why not start at global Market Cap?masterofcoin wrote: ↑Fri Feb 16, 2024 1:56 pm I appreciate all responses. Understood that 100% SCV is not advisable.
Respectfully, no one gave a direct answer to my question. I included risk parity and global all cap composition to aid in AVUV/AVDV allocation recommendations. If confined to those two ETFs, what would be your recommended split? Why?
Say 60/30/10 US/Developed Int/Emerging
If you DO NOT want emerging, 60/40 US/Developed
- Fri Feb 09, 2024 12:12 pm
- Forum: Investing - Theory, News & General
- Topic: Einhorn: Value is not working
- Replies: 116
- Views: 11368
Re: Einhorn: Value is not working
Interesting, and impressive for BR. I always had heard he was this very dynamic and achieved writer, and I know that he has mentioned (perhaps in jest?) that the article wasn't really supposed to be what it wound up being.RyeBourbon wrote: ↑Fri Feb 09, 2024 11:31 amI wonder how many people knew at the time that the author was 18 years old.donaldfair71 wrote: ↑Fri Feb 09, 2024 11:02 am There's some delicious irony that his interviewer once wrote an entire article covering the "Death of Equities" right before the greatest bull market in equities we have ever seen.
- Fri Feb 09, 2024 11:02 am
- Forum: Investing - Theory, News & General
- Topic: Einhorn: Value is not working
- Replies: 116
- Views: 11368
Re: Einhorn: Value is not working
There's some delicious irony that his interviewer once wrote an entire article covering the "Death of Equities" right before the greatest bull market in equities we have ever seen.
- Fri Feb 09, 2024 10:58 am
- Forum: Investing - Theory, News & General
- Topic: Einhorn: Value is not working
- Replies: 116
- Views: 11368
Re: Einhorn: Value is not working
Quite honestly, Value hasn't been working at least when you compare it to Growth. FANG, FAANG, MAMAA, The Magnificent Seven, whatever you want to call them have driven home the point that US High Tech is driving the markets. Hence Growth outperforms Value and US outperforms International. Hard to say if the markets have fundamentally changed or if Value will have its day again. People have been talking about how terrible Value has been, that isn't true, Value has been doing just fine; it is the comparisons with Growth that are getting people frustrated. So for now Growth investing and passive indexing are winning, Value has done fairly well but just hasn't kept up. If the author is frustrated, he isn't alone. It might well be that the mark...
- Fri Feb 09, 2024 10:54 am
- Forum: Investing - Theory, News & General
- Topic: Einhorn: Value is not working
- Replies: 116
- Views: 11368
Re: Einhorn: Value is not working
Kind of took it the same way.ivgrivchuck wrote: ↑Thu Feb 08, 2024 4:00 pm Summary:
- His stock picks aren't working
- He is frustrated
- Index funds are to blame
I gave his argument credit and listened attentively until he referenced Michael Green as someone who showed him the light on this.
- Wed Jan 31, 2024 4:54 am
- Forum: Investing - Theory, News & General
- Topic: International (Non-US) versus US Equities (The "Arguments")
- Replies: 5214
- Views: 829741
- Sun Jan 28, 2024 7:33 am
- Forum: Personal Investments
- Topic: Portfolio Review please - Small-Cap Tilt GeoBuffett V1.2
- Replies: 23
- Views: 2218
Re: Portfolio Review please - Small-Cap Tilt GeoBuffett V1.2
You can extend backtests on the DFA funds by using their MF equivalents:
DFSVX
DISVX
DFEVX
DFSVX
DISVX
DFEVX
- Tue Jan 16, 2024 5:38 am
- Forum: Investing - Theory, News & General
- Topic: Where does the loyalty to Vanguard come from?
- Replies: 72
- Views: 6406
- Thu Jan 11, 2024 5:08 am
- Forum: Personal Finance (Not Investing)
- Topic: Delaying SS - The math doesn't seem that great.
- Replies: 25
- Views: 5974
Re: Delaying SS - The math doesn't seem that great.
The math shouldn't be that great. It's supposed to be relatively neutral, at least for one earner. For a couple, if the two benefits are significantly different, there is a bit of advantage to delaying the higher benefit because of the survivor factor (survivor gets the higher of the two benefits). The "longevity insurance" aspect is a tradeoff, not a free lunch. You don't do the delay because you expect to gain financially, you do it to protect against the case where you live an unusually long life and might otherwise run short of money. If you consider the delay to be roughly neutral, it can still offer some potential benefit for space to do some additional Roth conversion, if that is possible/desirable to you. The bolded part ...
- Wed Jan 10, 2024 8:52 am
- Forum: Investing - Theory, News & General
- Topic: Is the reason why hedge funds / managers lose to the S&P 500 because they’re forced to make short term decisions?
- Replies: 81
- Views: 9547
Re: Is the reason why hedge funds / managers lose to the S&P 500 because they’re forced to make short term decisions?
I can't add much more to the thread, don't know enough about hedge funds to really reliably add. One thing I have seen in the posts is the idea that returns need/should be benchmarked to the SP500. As someone in a state pension system mentioned in this thread, and is still over a decade away from drawing, I don't believe I would feel safe at all with all the monies in something so volatile. Would outperform a 60/40, and likely the hedge fund universe over time, but I would be afraid that the market would remain irrational longer than the system can remain solvent. Which leads to the next question, and my quick google search yielded not a whole lot, what is the appropriate benchmark that might be considered a Boglehead-approved, investable a...
- Mon Jan 08, 2024 10:45 am
- Forum: Investing - Theory, News & General
- Topic: Ronald Read the Janitor who amassed 8 million
- Replies: 104
- Views: 24451
Re: Ronald Reed the Janitor who amassed 8 million
To some people, living below means and saving the difference is just natural to do. No more or less than folks who like to run/work out and eat healthy wind up being a pretty good physical shape. The process is the goal and enjoyment, the destination happens to be wealth for the janitor or great health for the runner. But it isn't work at all, or hard. Scorpion and the Frog stuff.
- Mon Dec 25, 2023 7:53 pm
- Forum: Investing - Theory, News & General
- Topic: How does Fidelity make money if offering free trades
- Replies: 34
- Views: 5512
Re: How does Fidelity make money if offering free trades
Good point.Mountain Doc wrote: ↑Mon Dec 25, 2023 3:26 pmI think the bid/ask spread is going to market makers, not brokers.donaldfair71 wrote: ↑Mon Dec 25, 2023 3:14 pm This may or may not answer your question, but I just assume that Vanguard happily executes my ETF purchases for the pennies they get in bid/ask spread.
- Mon Dec 25, 2023 3:14 pm
- Forum: Investing - Theory, News & General
- Topic: How does Fidelity make money if offering free trades
- Replies: 34
- Views: 5512
Re: How does Fidelity make money if offering free trades
This may or may not answer your question, but I just assume that Vanguard happily executes my ETF purchases for the pennies they get in bid/ask spread.
Seems like it was a lifetime ago where I’d have to also include a $7 fee for every purchase of non-VG ETFs. Guess it’s been several years.
Seems like it was a lifetime ago where I’d have to also include a $7 fee for every purchase of non-VG ETFs. Guess it’s been several years.
- Fri Dec 22, 2023 10:47 pm
- Forum: Investing - Theory, News & General
- Topic: New "Bogleheads on Investing" podcast #65: Dr. Qian Wang, Vanguard economic and market outlook of 2024
- Replies: 43
- Views: 7042
Re: New "Bogleheads on Investing" podcast #65: Dr. Qian Wang, Vanguard economic and market outlook of 2024
Great episode. Thanks for always having interesting guests that add to the discourse.
- Fri Dec 15, 2023 3:57 pm
- Forum: Investing - Theory, News & General
- Topic: AVUV surges past 2021 high
- Replies: 42
- Views: 7828
- Fri Dec 15, 2023 3:02 pm
- Forum: Investing - Theory, News & General
- Topic: AVUV surges past 2021 high
- Replies: 42
- Views: 7828
Re: AVUV surges past 2021 high
I am, but it’s part of a bigger slice of SV I allocate to in my portfolio.
If it becomes a significant part of my portfolio, I rebalance out of it. My concerns for Avantis itself going out of business? I would consider that risk to be similar to any of the fund companies going out of business. One I don’t worry much about, but if I did, I don’t know how I’d invest in any fund or ETF.
- Fri Dec 15, 2023 2:57 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard Multifactor fund VFMF has had a bad year
- Replies: 189
- Views: 24242
Re: Vanguard Multifactor fund VFMF has had a bad year
It's nearly the end of 2023. How are we feeling about VFMF? Personally, I need to decide whether to invest new money in it to get it up to my target allocation, or start thinking about other funds. Backtest, 70/30, vs. VTI: https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=1buhPesd7cRJWvxBcuV3tN IMO VFMF has done a great job of consistently targeting the factors it is designed to (quality/value/momentum). I would not use short term performance to judge a factor strategy, if you're concerned on ~5 year time frame, better to just invest in total market. Bingo. What we want to know is whether or not it’s achieving exposure(s) intended by the fund. I don't know, but I bought the fund when it was new and still have it. My impres...
- Mon Dec 11, 2023 5:27 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard Multifactor fund VFMF has had a bad year
- Replies: 189
- Views: 24242
Re: Vanguard Multifactor fund VFMF has had a bad year
Bingo. What we want to know is whether or not it’s achieving exposure(s) intended by the fund.HippoSir wrote: ↑Mon Dec 11, 2023 2:46 pmIMO VFMF has done a great job of consistently targeting the factors it is designed to (quality/value/momentum). I would not use short term performance to judge a factor strategy, if you're concerned on ~5 year time frame, better to just invest in total market.foosball wrote: ↑Mon Dec 11, 2023 2:03 pm It's nearly the end of 2023. How are we feeling about VFMF? Personally, I need to decide whether to invest new money in it to get it up to my target allocation, or start thinking about other funds.
Backtest, 70/30, vs. VTI:
https://www.portfoliovisualizer.com/bac ... WvxBcuV3tN
- Sat Nov 25, 2023 7:49 am
- Forum: Personal Investments
- Topic: Sold All Bond Funds to follow Individual Treasury Ladder Strategy
- Replies: 99
- Views: 9614
Re: Sold All Bond Funds to follow Individual Treasury Ladder Strategy
In order to maintain the average duration of the bond index and yield associated with the duration, bonds need to be sold before maturity in an intermediate bond fund which results in a realized loss in a rising rate environment. I would never sell a treasury note and realize a loss before maturity in a rising rate environment. It really doesn't matter. As soon as yields go up, the yield of your existing bond goes up. Some of that yield will be coupon, some will be recovery of face value. But your $1,000 yielding 3% is now $900 yielding 4% or whatever, and it doesn't matter if you exchange that bond for a longer maturity bond today or next year. Please explain what I'm missing here and why my calculation is not resulting in similar return....
- Wed Nov 22, 2023 5:03 pm
- Forum: Personal Consumer Issues
- Topic: Hey Men, what are you wearing to the gym?
- Replies: 123
- Views: 17391
Re: Hey Men, what are you wearing to the gym?
T shirt and pocketed mesh shorts have served me well for going on a quarter century.
- Mon Nov 20, 2023 4:31 pm
- Forum: Personal Investments
- Topic: Do you rebalance with new money, or do you stick with set percentage based contribution?
- Replies: 16
- Views: 1079
Re: Do you rebalance with new money, or do you stick with set percentage based contribution?
I contribute set amounts then rebalance in the Summer. Just works best for me but not right for everyone.
- Wed Nov 15, 2023 5:05 am
- Forum: Investing - Theory, News & General
- Topic: 30/70 is as good as 60/40
- Replies: 179
- Views: 25952
Re: 30/70 is as good as 60/40
Yep.
And in the case of bonds, as we found out in 2022, they were all but guaranteed to behave differently. “Return free risk”.
- Mon Nov 13, 2023 2:22 pm
- Forum: Personal Finance (Not Investing)
- Topic: How much does your employer sponsered health insurance cost you?
- Replies: 85
- Views: 7960
Re: How much does your employer sponsered health insurance cost you?
It’s about 62/month.
My wife and I get a discount by working in the same school district. If either of us left, would vault to about 260/month. 3 kids, but they don’t increase the cost at all.
This is for Anthem Healthkeepers HMO.
My wife and I get a discount by working in the same school district. If either of us left, would vault to about 260/month. 3 kids, but they don’t increase the cost at all.
This is for Anthem Healthkeepers HMO.
- Fri Nov 10, 2023 4:50 am
- Forum: Investing - Theory, News & General
- Topic: 8% SWR!
- Replies: 112
- Views: 13055
Re: 8% SWR!
If you retire at 65, pick up some consulting or other extras, have low expenses, SS and/or a pension, live to expected age of 80, 8% could be conservative. Listen to the clip from the beginning -- he was giving this advice to a 30 year old. The guy was planing FI base on 3% withrawls and Dave to him to plan for 12% returns in deciding when he could quit his job. It's hard to imagine a more irresponsible answer to a guy with $100k in assets who is 30. But if you follow it to the end, he tells the guy to stay on the Ramsey plan. More specifically, to stay on the plan to save 15% towards retirement until house is paid off and then increase savings at that point. So he says nutty stuff in his rants but gets back to a perfectly reasonable actio...
- Thu Nov 09, 2023 9:45 am
- Forum: Investing - Theory, News & General
- Topic: Does the S&P 500 track Large Cap or TSM more closely?
- Replies: 22
- Views: 1880
Re: Does the S&P 500 track Large Cap or TSM more closely?
When Tesla met all objective standards by the September reconstitution, yet wasn't added until December, they did just that: Used subjective opinion to not add them to the SP500. I will grant that S&P had gotten itself into a pickle. A key point to running a investable index fun is that you want it to be investable. That is, you don't want distortions. i.e., trading costs should be low. So whenever you reconstitute a index you do not want people (hedge funds, arbitrage traders, etc.) front running you and grabbing free profits. There is no way one could have added Tesla to the index without massive distortions. Note, other indexes didn't have this problem. The vast majority of large cap funds use the S&P index as their benchmark, i...
- Thu Nov 09, 2023 9:26 am
- Forum: Investing - Theory, News & General
- Topic: Does the S&P 500 track Large Cap or TSM more closely?
- Replies: 22
- Views: 1880
Re: Does the S&P 500 track Large Cap or TSM more closely?
I think OP is referring to the example of TSLA being added to the S&P 500 in December 2020 when it was brought in as the 6th highest market cap company. The S&P committee members protected investors from a possible sham company for a long time. How should the S&P committee acted instead? After the abuses of index manipulation during the dot.com boom age the S&P put in some objective safeguards to prevent a similar case of abuse. 1 year positive earnings from core earnings. Objectively speaking, Tesla for a long time did not have positive core earnings. It was only profitable form a series of one off expectational actions that, in the words of Tesla, were not expected to be repeated in the future. Are you suggesting that the...
- Wed Nov 08, 2023 7:08 am
- Forum: Investing - Theory, News & General
- Topic: Is Vanguard STAR Fund still relevant in 2023?
- Replies: 56
- Views: 12166
Re: Is Vanguard STAR Fund still relevant in 2023?
$21.5 billion in net assets as of 9/30/2023. Peter Lynch's darling of the 1980s Fidelity Magellan still has $26B in it, and it is 0.52% expense ratio fund that holds Microsoft, Amazon, NVIDIA, Alphabet, and Meta as Top 5 holdings. It would be interesting to see what STAR's actual top holdings were by company not by fund. Copy/Pasted so please excuse layout: Microsoft Corp(USD) MSFT 2.06 -- Info Tech Vanguard STAR Inv (USD) VGSTX 2.06 2023-09-30 -- Amazon.com Inc(USD) AMZN 1.20 -- Cons Disc Vanguard STAR Inv (USD) VGSTX 1.20 2023-09-30 -- NVIDIA Corp(USD) NVDA 1.03 -- Info Tech Vanguard STAR Inv (USD) VGSTX 1.03 2023-09-30 -- Apple Inc(USD) AAPL 0.98 -- Info Tech Vanguard STAR Inv (USD) VGSTX 0.98 2023-09-30 -- Eli Lilly and Co(USD) LLY 0.8...
- Mon Nov 06, 2023 12:40 pm
- Forum: Personal Investments
- Topic: On the fence of adding small cap value
- Replies: 49
- Views: 6975
Re: On the fence of adding small cap value
First time poster I've been on the fence about Adding a tilt toward small cap value. As of the moment I am very happy with my asset allocation. I just started getting into the low cost index fund investing space about a year and half ago. As of the moment I'm 80/20 US/Intl with zero bonds (yes i'm aware of the risk) I'm also 28 as well. My 401k has ample amount of Fidelity funds to allow me to mirror that AA across accounts using FXAIX/FTIHX. I've been thinking of adding AVUV at about 25% to be at 55% FXAIX, 25%AVUV and 20% FTIHX. I would hope it would add about 0.5-1.0 increase in returns over 30+ years as well as some added diversification. My concerns are though, I would only want to add AVUV and not any of Fidelitys small cap value fun...
- Wed Nov 01, 2023 7:53 pm
- Forum: Investing - Theory, News & General
- Topic: William Bernstein on TIPS, asset allocation, and four deep risks
- Replies: 189
- Views: 30090
Re: William Bernstein on TIPS, asset allocation, and four deep risks
Being able to buy small amounts of fixed maturity TIPS through iShares is an excellent point, thanks for bringing that up. But once you have enough to meet the secondary market minimums, you're better off with a ladder, of course. I think a lot of people are just afraid to learn how to navigate the brokerage sites' Treasury trading menu. And, of course, you can buy small amounts at auction, but only for 5, 10, and 30 years. The best part of a ladder is it's fire and forget. You show the maturities to the kids, and they can see where your HOA dues are coming from. It's a lot simpler than teaching them how to rebalance your TIPS funds to match your life expectancy. First off, loved the episode and all your writings. You should know that you’...
- Sun Oct 29, 2023 8:42 pm
- Forum: Investing - Theory, News & General
- Topic: William Bernstein on TIPS, asset allocation, and four deep risks
- Replies: 189
- Views: 30090
Re: William Bernstein on TIPS, asset allocation, and four deep risks
Being able to buy small amounts of fixed maturity TIPS through iShares is an excellent point, thanks for bringing that up. But once you have enough to meet the secondary market minimums, you're better off with a ladder, of course. I think a lot of people are just afraid to learn how to navigate the brokerage sites' Treasury trading menu. And, of course, you can buy small amounts at auction, but only for 5, 10, and 30 years. The best part of a ladder is it's fire and forget. You show the maturities to the kids, and they can see where your HOA dues are coming from. It's a lot simpler than teaching them how to rebalance your TIPS funds to match your life expectancy. First off, loved the episode and all your writings. You should know that you’...
- Sun Oct 29, 2023 5:53 am
- Forum: Investing - Theory, News & General
- Topic: Considering shift from Avantis AVGE over to Vanguard VTI/VXUS
- Replies: 11
- Views: 2203
Re: Considering shift from Avantis AVGE over to Vanguard VTI/VXUS
When the value-tilted all-equity-markets Avantis AVGE fund became available, I thought it would be an easy single fund solution that could take some of the thought and worry out of rebalancing. So I made it the majority of my taxable equity allocation. Now a year later, I'm second guessing if a semi-managed fund at a 0.23-0.25% ER with a factor tilt is really the right approach for a long-term taxable account. Once I've built up significant capital gains, I will be unable to easily adjust this position given the tax implications. I'm sure the fact that AVGE has underperformed a 70/30 total US / international stock market index by ~3% doesn't help the perception, though I recognize that's largely in the noise. My AVGE position has now cross...
- Fri Oct 27, 2023 8:40 am
- Forum: Investing - Theory, News & General
- Topic: Fidelity to copy Vanguard's dual ETF / MF expired patent
- Replies: 61
- Views: 6481
Re: Fidelity to copy Vanguard's dual ETF / MF expired patent
I believe this is #2 See: DFA applying to have ETF as share class of mutual fund The old open ended mutual fund shops with captive shareholders are looking to stave off long-term loss of assets. I can only hope the SEC approves this. It can only be good for investors. I guess all that is left is competing on advice services and customer care. There is almost not moat left anywhere in the fund management business. Zero fees is truly where we'll end up in the relatively near future. Really, there doesn't seem to be much money left on the table for those poor croupiers (w/ a nod to Jack). BTW, I think we can assume the the open ended mutual fund is essentially extinct and will die with the last Boomer (or maybe GenXer). Love for this to happe...
- Thu Oct 26, 2023 8:13 pm
- Forum: Investing - Theory, News & General
- Topic: Fidelity to copy Vanguard's dual ETF / MF expired patent
- Replies: 61
- Views: 6481
Re: Fidelity to copy Vanguard's dual ETF / MF expired patent
Love for this to happen, but as long as MFs can keep their monopoly on workplace retirement plans, I worry that they’ll always be with us. My MegaCorp plan allows 99% of all assets to be held in the brokerage option and 100% of that can be ETFs. It is just a matter of time before that monopoly is broken too. It just a matter of the plan sponsor choosing the option to provide a brokerage window/option. Like I said, I hope to heck it’s true and you’re right. I know in my workplace plan, we have a brokerage option in our 403b but legally they’re not permitted to use ETFs even though we have a brokerage option. Of course 457 plans can hold ETFs but our investment committee feels that that’s just a step too far in allowing folks the freedom the...
- Thu Oct 26, 2023 8:04 pm
- Forum: Investing - Theory, News & General
- Topic: Fidelity to copy Vanguard's dual ETF / MF expired patent
- Replies: 61
- Views: 6481
Re: Fidelity to copy Vanguard's dual ETF / MF expired patent
I believe this is #2 See: DFA applying to have ETF as share class of mutual fund The old open ended mutual fund shops with captive shareholders are looking to stave off long-term loss of assets. I can only hope the SEC approves this. It can only be good for investors. I guess all that is left is competing on advice services and customer care. There is almost not moat left anywhere in the fund management business. Zero fees is truly where we'll end up in the relatively near future. Really, there doesn't seem to be much money left on the table for those poor croupiers (w/ a nod to Jack). BTW, I think we can assume the the open ended mutual fund is essentially extinct and will die with the last Boomer (or maybe GenXer). Love for this to happe...
- Tue Oct 17, 2023 9:22 pm
- Forum: Personal Investments
- Topic: International Small Cap Value?
- Replies: 29
- Views: 4568
Re: International Small Cap Value?
I use AVDV, Avantis International Dev SCV. It serves all the purposes I want it to serve.
Dimensional’s ETF, while new, has a long-established track record as a Mutual Fund. If you want to approximate the exposures it might deliver, you can use DISVX as a proxy for historic attributes.
Dimensional’s ETF, while new, has a long-established track record as a Mutual Fund. If you want to approximate the exposures it might deliver, you can use DISVX as a proxy for historic attributes.
- Tue Oct 17, 2023 8:50 pm
- Forum: Investing - Theory, News & General
- Topic: High TIPS Yields are a Retiree's Best Friend - John Reckenthaler
- Replies: 62
- Views: 9942
Re: High TIPS Yields are a Retiree's Best Friend - John Reckenthaler
Seems like a wonderful plan. A no-brainer, indeed.Stormbringer wrote: ↑Tue Oct 17, 2023 8:23 pmWe are laddering enough so that, when combined with Social Security, our basic retirement expenses are covered. It just seems like such a no-brainer.TipsQuestions wrote: ↑Tue Oct 17, 2023 7:28 pm The only question, is how much of your portfolio to devote to such a ladder?
We can then be more aggressive with the rest.
- Mon Oct 16, 2023 8:54 pm
- Forum: Investing - Theory, News & General
- Topic: WSJ: Factor ETFs Fail to Deliver Their Promised Returns
- Replies: 207
- Views: 16373
Re: WSJ: Factor ETFs Fail to Deliver Their Promised Returns
For anyone that is interested: https://www.wsj.com/articles/dfa-funds-are-booming-but-that-adviser-fee-matters-1488769801 It turns out that in the past the DFA funds did not overperform after advisor fees (~1%). You would need to argue that your DFA advisor was adding services you otherwise would have paid for to justify the lagging performance. That could definitely be true for some people. The 2021 fund fee schedule is below. A ~1% advisor fee would be added to this historically. The fund fee was further reduced by 13% for 2022, but we know past fees were at least this big. Dimensional Funds start with a D and Vanguard funds start with a V. Performance is Jan 2000 to March 31 2021. stated, expense, net performance Small Value DFSVX 10.62...
- Mon Oct 16, 2023 4:15 am
- Forum: Investing - Theory, News & General
- Topic: WSJ: Factor ETFs Fail to Deliver Their Promised Returns
- Replies: 207
- Views: 16373
Re: WSJ: Factor ETFs Fail to Deliver Their Promised Returns
This is the factor equivalent to the "Death of Equities" pronouncement. Load up, 'cause factors are about to go on a massive bull run. Surely all the factors can't have a bull run at the same time. If 'bull run' means 'outperforming the total market'. This is an important and prescient post, amid much longer ones, that I fear will get drowned out. There’s a lot of discussion re: factors where using them could lead to some disastrous outcome. That just hasn’t been shown to be the case. While SP500 has delivered, what, 13% the last decade, even a person who’s been in all value, even in all small value, has compounded at about the historic market return. I think sometimes folks think “disaster” as absolute rather than relative. Now ...
- Sun Oct 15, 2023 8:42 pm
- Forum: Investing - Theory, News & General
- Topic: WSJ: Factor ETFs Fail to Deliver Their Promised Returns
- Replies: 207
- Views: 16373
Re: WSJ: Factor ETFs Fail to Deliver Their Promised Returns
This is the factor equivalent to the "Death of Equities" pronouncement. Load up, 'cause factors are about to go on a massive bull run. Surely all the factors can't have a bull run at the same time. If 'bull run' means 'outperforming the total market'. This is an important and prescient post, amid much longer ones, that I fear will get drowned out. There’s a lot of discussion re: factors where using them could lead to some disastrous outcome. That just hasn’t been shown to be the case. While SP500 has delivered, what, 13% the last decade, even a person who’s been in all value, even in all small value, has compounded at about the historic market return. I think sometimes folks think “disaster” as absolute rather than relative. Now ...
- Thu Oct 12, 2023 7:10 am
- Forum: Investing - Theory, News & General
- Topic: If dividend irrelevance is true, then why did ...?
- Replies: 144
- Views: 19357
Re: If dividend irrelevance is true, then why did ...?
How dividends affect share is of course up the market. The clear implication from this article was that this after-hours announcement of an increased dividend that a positive impact of the share price. Focusing solely on that, as I stated in the original post, how can you possibly draw the conclusion that dividend changes are no effect on share price, when this is only one of thousands of examples of dividend announcements doing just that? Before looking for an explanation it’s important to make sure that this effect actually exists. A statistical analysis of S&P 500 companies’ price movements after dividend change announcements over the last 20 years would be a good step in that direction. The logical next step in believing what the O...