Search found 4912 matches

by JoMoney
Sun May 20, 2018 7:19 am
Forum: Investing - Theory, News & General
Topic: Dividend / no dividend index funds?
Replies: 26
Views: 1997

Re: Dividend / no dividend index funds?

patrick013 wrote:
Sat May 19, 2018 1:44 pm
... I will probably buy some when interest rates peak...
Please let us know "when interest rates peak", it will be interesting to see how your prediction works out.
by JoMoney
Sun May 20, 2018 6:32 am
Forum: Investing - Theory, News & General
Topic: How to see if small/mid cap is undervalued relative to large cap?
Replies: 2
Views: 327

Re: How to see if small/mid cap is undervalued relative to large cap?

Also, I would point out that Vanguard's Mid-Cap Index fund used to follow S&P 400 index, they changed that sometime in the later 2000's, and I would point out that not all broad-market Mid-Caps performed the same. The S&P indices have requirements for seasoning, profitability, and other factors that...
by JoMoney
Sun May 20, 2018 6:20 am
Forum: Investing - Theory, News & General
Topic: How to see if small/mid cap is undervalued relative to large cap?
Replies: 2
Views: 327

Re: How to see if small/mid cap is undervalued relative to large cap?

Yes, in the late 1990's stocks, especially particular segments like tech stocks, growth stocks, and some of the largest cap stocks that were dominating the market... but, I would also point out that stocks in general were pretty high priced. Even though small/mid cap stocks outperformed following th...
by JoMoney
Sun May 20, 2018 4:01 am
Forum: Personal Finance (Not Investing)
Topic: Converting property in to neighborhood park. Trust needed?
Replies: 13
Views: 889

Re: Converting property in to neighborhood park. Trust needed?

I imagine they would need to decide if they want to donate the land to the City/County/Municipality under the provision that it be designated a public park, or if they want it to be a private park open only to certain members of a HOA community or something... Either way, the zoning of the land, and...
by JoMoney
Sat May 19, 2018 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Capital One now at 1.60 [Money Market Rate To 1.60% APY]
Replies: 40
Views: 3111

Re: Capital One now at 1.60 [Money Market Rate To 1.60% APY]

My only comment with cap one money market is that it takes a while for the transfer to occur. It seems like it’s 3 or 4 days after the money is withdrawn from my bank before it’s actually transferred to the money market account. If you bank with Capital One using a 360 checking account, you can tra...
by JoMoney
Sat May 19, 2018 7:22 am
Forum: Investing - Theory, News & General
Topic: Rob Arnott:index Investors Buy High, Sell Low
Replies: 35
Views: 3130

Re: Rob Arnott:index Investors Buy High, Sell Low

... Yes this very basic arithmetic is undeniable. But since empirically we find that small, value, momentum and quality stocks have outperformed over the long haul; one can suppose that if they invest in those, they will likely have higher than market resutls, because the stocks having the opposite...
by JoMoney
Sat May 19, 2018 7:06 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 390
Views: 17575

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

... I still don't understand how someone can have a higher taxable income in retirement than their working years. Combination of pensions, social security, real estate income, and interest. It happens, and I understand the problem, and am sympathetic to complaints about how tax money is used, but a...
by JoMoney
Sat May 19, 2018 6:50 am
Forum: Investing - Theory, News & General
Topic: Rob Arnott:index Investors Buy High, Sell Low
Replies: 35
Views: 3130

Re: Rob Arnott:index Investors Buy High, Sell Low

^ The 'math' of the total market, has the advantage that it starts with a unity. We can add up an entire market and describe the whole consistently across time. We can make statements about the aggregate even if we don't really know much about the individual pieces and how their risks, returns, etc....
by JoMoney
Sat May 19, 2018 5:56 am
Forum: Investing - Theory, News & General
Topic: Rob Arnott:index Investors Buy High, Sell Low
Replies: 35
Views: 3130

Re: Rob Arnott:index Investors Buy High, Sell Low

... Thanks for the feedback! However, please correct me if I am wrong; in this thread I understood cross trading to mean that a company like Vanguard or BlackRock will not buy or sell new stocks that need to enter an ETF (let's call it ETF1); instead, they will transfer them from another ETF (say E...
by JoMoney
Sat May 19, 2018 3:51 am
Forum: Investing - Theory, News & General
Topic: Rob Arnott:index Investors Buy High, Sell Low
Replies: 35
Views: 3130

Re: Rob Arnott:index Investors Buy High, Sell Low

Fair point. I don't know how much of an effect that has. Just looking at the most recent iShares Core MSCI Emerging Markets semi-annual report they cross-traded $33 million in purchases out of a total of $6.3 billion (one half of 1%) $87 million in sales out of a total of $774 million (11%) So they...
by JoMoney
Sat May 19, 2018 12:27 am
Forum: Investing - Theory, News & General
Topic: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?
Replies: 76
Views: 9109

Re: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?

Why do you listen to Buffet about bonds but ignore him about equities? Does he tell you to invest in things besides stocks? No, he doesn't. Well, I have heard him make comments about buying a farm, but usually it's just as an analogy that when people buy a farm or private business they don't go loo...
by JoMoney
Fri May 18, 2018 11:49 pm
Forum: Investing - Theory, News & General
Topic: Rob Arnott:index Investors Buy High, Sell Low
Replies: 35
Views: 3130

Re: Rob Arnott:index Investors Buy High, Sell Low

Aren't VG and the other large fund companies allowed to swap stocks between funds? Seems like that would take most of the wind out of the sails of people trying to front run the S&P500 index. When company number 500 drops out of the index, they can transfer most of it to a completion index. Likewis...
by JoMoney
Fri May 18, 2018 12:45 pm
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 9866

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

... If you have the option to put it in Roth, I don't see any reason not to do so. Paying ordinary income tax on years worth of earnings seems like a high price to pay for ERISA protection. Depending on state that might not even be worth much. I don't qualify to make Roth or deductible IRA contribu...
by JoMoney
Fri May 18, 2018 12:16 pm
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 9866

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

... If you have the option to put it in Roth, I don't see any reason not to do so. Paying ordinary income tax on years worth of earnings seems like a high price to pay for ERISA protection. Depending on state that might not even be worth much. I don't qualify to make Roth or deductible IRA contribu...
by JoMoney
Fri May 18, 2018 10:39 am
Forum: Investing - Theory, News & General
Topic: Rob Arnott:index Investors Buy High, Sell Low
Replies: 35
Views: 3130

Re: Rob Arnott:index Investors Buy High, Sell Low

Looking at PRF , an ETF that tracks RA's RAFI 1000 , according to Portfolio Visualizer over the 12+ years of the fund it barely squeaked out a little more return that VTSAX (Vanguard Total Stock Market) but with higher standard deviation , lower Sharpe. Even a slight tilt to smaller more volatile st...
by JoMoney
Fri May 18, 2018 10:09 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 390
Views: 17575

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

It potentially costs you more for each dollar going into a Roth, but it is likely worth more to you after it's already in (provided you will only withdraw it after age 59.5 when you can make qualified tax-free withdrawals). If you don't have other taxable income to bring your marginal rate up to wha...
by JoMoney
Fri May 18, 2018 3:52 am
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 9866

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

Yes, I max it out. Under my employers plan, I have the option to withdraw my after-tax amount should I change my mind. It would come with a pro-rata amount of earnings that could be subject to a 10% penalty, but I don't expect I'll be withdrawing it. I also have the option to roll it into a Roth acc...
by JoMoney
Thu May 17, 2018 10:23 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 390
Views: 17575

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

A consumption tax will impact the spending form both a Roth and a traditional account. The argument should be over which one will leave you with more spendable income. JoMoney, Globally, the trend is to lower the income tax rate while implementing the consumption tax. And, gradually lower the incom...
by JoMoney
Thu May 17, 2018 10:10 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 390
Views: 17575

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

A consumption tax will impact the spending form both a Roth and a traditional account. The argument should be over which one will leave you with more spendable income.
by JoMoney
Thu May 17, 2018 9:28 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 390
Views: 17575

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

By using a pre-tax traditional account I get the tax benefit today, and the optionality of being able to pay taxes on it and convert to Roth in the future. Thanks to the Tax Cuts and Jobs Act of 2017, I could convert money over to Roth today and be better off than had I paid taxes on it and directly...
by JoMoney
Thu May 17, 2018 5:19 pm
Forum: Investing - Theory, News & General
Topic: more rotten service from Vanguard [ACH transfer, fund availability]
Replies: 26
Views: 3005

Re: more rotten service from Vanguard

It's available to trade immediately, but not available to withdraw.
by JoMoney
Thu May 17, 2018 2:10 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 390
Views: 17575

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

... Paying more in taxes today (by contributing to Roth) has zero relevance to having a small balance. This doesn't even make sense. ... Not everyone is able to max out their tax advantaged accounts. Somebody with an average income making a contribution to a pre-tax account vs Roth will by definiti...
by JoMoney
Wed May 16, 2018 6:38 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 390
Views: 17575

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

There are many many people who visit and use this site and are not among the super wealthy image some have created as "typical" Boglehead. The consequence of having too much taxable money in retirement is having to pay more taxes. The consequence of paying more in taxes today and a smaller balance i...
by JoMoney
Wed May 16, 2018 6:18 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Value Premium Lives!
Replies: 39
Views: 2789

Re: Larry Swedroe: Value Premium Lives!

...I'm not saying the value premium does not exist, I'm saying most investors don't have the patience to capture it... Considering the (lack of a) FF Large-Value "Premium" over the past 30+ years, some investors may not live long enough to capture it. http://i.imgs.fyi/img/3bbv.png "Small-Value" pr...
by JoMoney
Wed May 16, 2018 6:10 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Value Premium Lives!
Replies: 39
Views: 2789

Re: Larry Swedroe: Value Premium Lives!

Being totally selfish, the more people who don't believe in the value premium, the larger it is likely to be. So I'm OK with y'all concluding it is a bunch of Edward Jones. I think you would actually need people arguing there is a "growth" premium, to have a counter-party your style preference migh...
by JoMoney
Wed May 16, 2018 6:05 pm
Forum: Investing - Theory, News & General
Topic: How to decide VT vs VTI?
Replies: 6
Views: 761

Re: How to decide VT vs VTI?

I think either is a fine choice. Despite there being some potential advantages in expenses and tax management of keeping your international/domesticate in separate funds, I'm partial to the simplicity of a single fund. I'm also partial to VTI (personally I use an S&P 500 index), as Mr.Bogle has argu...
by JoMoney
Wed May 16, 2018 2:32 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Value Premium Lives!
Replies: 39
Views: 2789

Re: Larry Swedroe: Value Premium Lives!

I apologize if I misspoke. Though I do believe he has held Wellington fund, described by Morningstar as a LV fund, for a very long time. Perhaps he only holds it for sentimental reasons. I was not speaking from a source, but here is a link to a Bogle lecture on Wellington. He does describe the equi...
by JoMoney
Wed May 16, 2018 2:23 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Value Premium Lives!
Replies: 39
Views: 2789

Re: Larry Swedroe: Value Premium Lives!

While at Vanguard Mr.Bogle helped create the first "Value" and "Growth" index funds, he thought they might be useful for people in different tax situations, but expected over the long-term they'd have roughly similar returns ( which is what they have done mostly over the past 25+ years ). ...when Va...
by JoMoney
Wed May 16, 2018 4:46 am
Forum: Investing - Help with Personal Investments
Topic: Friend says "Stock market will crash, invest in silver" - thoughts?
Replies: 127
Views: 7519

Re: Friend says "Stock market will crash, invest in silver" - thoughts?

... Obviously nobody knows what's happening next, and there are lots of predictions of poor game in the future... And yet people continue to listen to such predictions, as if there was some credible indicator that wasn't already being priced in to people's expectations. Maybe it is secret informati...
by JoMoney
Tue May 15, 2018 1:12 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6539
Views: 1401754

Re: U.S. stocks in freefall

It's been looking like a "range-bound" market, maybe it will have to reach a new high or break through the low for the year, or even the month, before people will get excited.
by JoMoney
Tue May 15, 2018 12:19 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Long Bond ETF VCLT .in 2008 scenario?
Replies: 6
Views: 419

Re: Vanguard Long Bond ETF VCLT .in 2008 scenario?

I'm not certain what index VCLT is supposed to track, but from the prospectus it appears they compare it to "Bloomberg Barclays U.S. 10+ Year Corporate Bond Index" Here's a Morningstar growth chart for that index, which has a longer history going back to 1999: Chart Link It looks like from the begi...
by JoMoney
Tue May 15, 2018 11:47 am
Forum: Personal Finance (Not Investing)
Topic: Credit card with no credit history
Replies: 15
Views: 801

Re: Credit card with no credit history

My first credit card was with a local bank, they gave me a card with a very low limit (but no required security deposit). I see Capital One offers a "secured" MasterCard with no annual fee, and the amount of security deposit may be flexible based on credit worthiness. I use Capital One for other ban...
by JoMoney
Tue May 15, 2018 11:27 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Long Bond ETF VCLT .in 2008 scenario?
Replies: 6
Views: 419

Re: Vanguard Long Bond ETF VCLT .in 2008 scenario?

I'm not certain what index VCLT is supposed to track, but from the prospectus it appears they compare it to "Bloomberg Barclays U.S. 10+ Year Corporate Bond Index" Here's a Morningstar growth chart for that index, which has a longer history going back to 1999: Chart Link It looks like from the begin...
by JoMoney
Mon May 14, 2018 10:06 am
Forum: Forum Issues and Administration
Topic: The front page is ugly
Replies: 127
Views: 8829

Re: The front page is ugly

Youngblood wrote:
Mon May 14, 2018 9:52 am
Yep it works great, but how about adding some color options to the current design?
There are browser plugins you can get to change colors, especially for high-contrast reading... for example, 'Care your Eyes' or 'Stylebot' plugins for Chrome in the Chrome-store.
by JoMoney
Mon May 14, 2018 6:49 am
Forum: Forum Issues and Administration
Topic: The front page is ugly
Replies: 127
Views: 8829

Re: The front page is ugly

I like the front page, especially how quickly it loads / lack of pictures (other than the one small logo).
by JoMoney
Mon May 14, 2018 1:46 am
Forum: Investing - Help with Personal Investments
Topic: Margin debt ratio
Replies: 39
Views: 2336

Re: Margin debt ratio

Edward Thorp in one of his papers looked at the 59 year period from 1929-1984 and came up with 117% invested in S&P500 as being Kelly optimal growth, and at 170% being pretty certain of hitting a ruinous sequence of returns at some point.. http://www.edwardothorp.com/wp-content/uploads/2016/11/TheKe...
by JoMoney
Mon May 14, 2018 1:32 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Prime Money Market instead of bond fund
Replies: 40
Views: 4958

Re: Vanguard Prime Money Market instead of bond fund

For how long? You can chart the total return of VBTLX and VMMXX and see that VBTLX outperforms in the long run. That was in a bond bull market. Perhaps if the bear is here... history won't look like the future? Good point. Bonds were in a bull market for more than three decades. That's an unusually...
by JoMoney
Sun May 13, 2018 5:13 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Prime Money Market instead of bond fund
Replies: 40
Views: 4958

Re: Vanguard Prime Money Market instead of bond fund

For money expected to be needed 1 year or less, sounds good to me.
by JoMoney
Fri May 11, 2018 11:54 pm
Forum: Investing - Theory, News & General
Topic: [Bloomberg to Launch Cryptocurrency Index]
Replies: 8
Views: 800

Re: The Cryptocurrency IYndex ETF is here

The article talks about the creation of an "index" but I don't see anything about a fund or "ETF" tracking the index.

...it would be interesting to see how closely an ETF/ETN would track the index, how big of a spread would exist, and who the players would be in creating and redeeming shares/cryptos.
by JoMoney
Fri May 11, 2018 7:27 pm
Forum: Personal Consumer Issues
Topic: Anyone buy carbon offsets when flying?
Replies: 111
Views: 4306

Re: Anyone buy carbon offsets when flying?

... +1. This reminds me of when the Prius first came out and there were “studies” that came out saying that an F150 was better for the environment because of the Prius batteries. Totally bunch of lies. It amazes me how far people will go to protect the status quo. Calling something "totally bunch o...
by JoMoney
Fri May 11, 2018 5:06 pm
Forum: Personal Consumer Issues
Topic: Anyone buy carbon offsets when flying?
Replies: 111
Views: 4306

Re: Anyone buy carbon offsets when flying?

Not explicitly, or that I know of, but it's entirely possible something like that was buried in the cost of a ticket I've bought. Also, I don't like the idea of the finance-ialization of "carbon credits", for a great many reasons, I don't like the lack of transparency in what's being done with money...
by JoMoney
Thu May 10, 2018 1:37 am
Forum: Investing - Theory, News & General
Topic: Professor Andrew Lo interviews John Bogle
Replies: 10
Views: 1792

Re: Professor Andrew Lo interviews John Bogle

Thanks for posting this. Really interesting to hear Mr. Bogle talk about his endowment portfolio @
56:22
Half Indexed U.S. Balanced Fund - Half Managed U.S. Balanced fund... with a touch of gold and emerging markets.
by JoMoney
Wed May 09, 2018 11:32 pm
Forum: Investing - Help with Personal Investments
Topic: Why are stock returns expected to be so low over the next decade?
Replies: 27
Views: 4427

Re: Why are stock returns expected to be so low over the next decade?

... The average nominal return for stocks during the 20th century was around 7 percent. Could someone explain why the forecasts for stocks moving forward are so gloomy?... The average " nominal " return was around 10% The average " real " (inflation adjusted) return was close to 7% http://i57.tinyp...
by JoMoney
Wed May 09, 2018 4:11 am
Forum: Investing - Theory, News & General
Topic: Avoid Emerging Markets due to stricter securities regulation in Developed Markets? Lessons from SZSE..Maybe not?
Replies: 26
Views: 2605

Re: Avoid Emerging Markets due to stricter securities regulation in Developed Markets? Lessons from SZSE..Maybe not?

...let's think of something plausible to ex post justify a decision I've already made... :thumbsup Highly likely that someone is drawn to points that buttress prior decisions... but I would suspect it's the people who's decision isn't working out the way they expected / desired are the ones going o...
by JoMoney
Wed May 09, 2018 2:27 am
Forum: Personal Consumer Issues
Topic: Question for Australia residents (store gift idea)
Replies: 4
Views: 287

Re: Question for Australia residents (store gift idea)

Give them a Visa or Master Card gift card, not for a specific store.
by JoMoney
Wed May 09, 2018 2:20 am
Forum: Investing - Theory, News & General
Topic: Idea: An exchange to buy/sell ETFs at the NAV?
Replies: 10
Views: 535

Re: Idea: A marketplace to buy/sell ETFs at the NAV?

You can use limit orders for whatever value you feel the ETF is worth, and if you're matched with another buyer/seller who has a similarly commensurate opinion it will execute. The whole point is to not have to care about this at all, like mutual funds. Someone who doesn't want to care about it sou...
by JoMoney
Wed May 09, 2018 2:02 am
Forum: Investing - Theory, News & General
Topic: Idea: An exchange to buy/sell ETFs at the NAV?
Replies: 10
Views: 535

Re: Idea: A marketplace to buy/sell ETFs at the NAV?

You can use limit orders for whatever value you feel the ETF is worth, and if you're matched with another buyer/seller who has a similarly commensurate opinion it will execute.
by JoMoney
Wed May 09, 2018 1:40 am
Forum: Investing - Help with Personal Investments
Topic: Question on safety of ETFs
Replies: 32
Views: 2014

Re: Question on safety of ETFs

I don't use ETFs, I prefer what Mr.Bogle calls TIFs Traditional Index Funds. If I was prone to being drawn to trade, I would think avoiding ETFs would be even more important. The Vanguard ETF products also give access to the equivalent TIF that their mutual fund products do. Bogle's use of the word...
by JoMoney
Wed May 09, 2018 1:12 am
Forum: Investing - Help with Personal Investments
Topic: Question on safety of ETFs
Replies: 32
Views: 2014

Re: Question on safety of ETFs

I don't use ETFs, I prefer what Mr.Bogle calls TIFs Traditional Index Funds.
If I was prone to being drawn to trade, I would think avoiding ETFs would be even more important.