Search found 63 matches

by Richard Berg
Fri Dec 05, 2008 3:21 pm
Forum: Personal Investments
Topic: Moving an individual stock portfolio to index funds
Replies: 7
Views: 3186

BGI (Barclays) is the same company that runs the iShares ETFs. Their LifePath funds are top-notch if you prefer that kind of simplicity: unlike any other lifecycle fund I've seen they include healthy doses of small, intl, AND real estate. And they're cheap (0.20% in my former 401k, may vary by compa...
by Richard Berg
Fri Dec 05, 2008 3:18 pm
Forum: Personal Investments
Topic: Why won't Vanguard help the little guy?
Replies: 81
Views: 14398

I kind of agree with the original poster on this in general - not necessarily this particular specialized fund. I understand the counter point of protecting all investors in terms of cost, however... Vanguard fees are already the lowest nearly across the board. It would seem to me that if a for pro...
by Richard Berg
Fri Dec 05, 2008 3:02 pm
Forum: Personal Investments
Topic: Asset class junkie with a catch - no ETFs
Replies: 3
Views: 1038

Asset class junkie with a catch - no ETFs

I am starting work at a new company soon. From an investing POV this has some interesting pluses and minuses. Pro: - more $$ to invest - can roll over my old 401k Con: - due to regulations in the financial industry, I cannot trade anything listed on an exchange. Don't have to liquidate anything I ow...
by Richard Berg
Sat Nov 01, 2008 3:40 pm
Forum: Personal Investments
Topic: Bonds down, stocks down: sell losers to buy more losers!!
Replies: 26
Views: 4495

For those retired, why do you care what happens with your intermediate bond funds i.e., GNMA, TIPs, etc. As long as you get your monthly distribution, you should not even look at the NAV. Terrible advice. Total return is the only thing that matters. Whether it comes from income or asset appreciatio...
by Richard Berg
Sat Nov 01, 2008 3:38 pm
Forum: Personal Investments
Topic: Bonds down, stocks down: sell losers to buy more losers!!
Replies: 26
Views: 4495

So now what do I do in November? Same as always. Re-establish the same AA you had before. (so goes the boglehead line - there are arguments for overweighting severely depressed classes like intl value stocks and corporate bonds) Or nothing. Do you normally rebalance every month? My bonds were suppo...
by Richard Berg
Tue Oct 28, 2008 1:17 pm
Forum: Personal Investments
Topic: Fidelity vs Schwab vs ING Orange: Which for Checking Acct?
Replies: 19
Views: 9114

The other one to consider is Wells Fargo ($25k minimum). I currently have Fidelity MySmart. As a former user of well-regarded online-based accounts (ING, USAA, HSBC) I think it's the best one yet. My complaints: - you cannot deposit money orders into the checking account, only personal & cashier...
by Richard Berg
Tue May 06, 2008 1:24 am
Forum: Investing - Theory, News & General
Topic: Which index is better for international small cap?
Replies: 10
Views: 3490

Right - I should've noted that I'm holding DLS in tax-free.
by Richard Berg
Mon May 05, 2008 6:58 pm
Forum: Investing - Theory, News & General
Topic: Which index is better for international small cap?
Replies: 10
Views: 3490

Here's well known diehard's opinion: http://www.altruistfa.com/Intlsmallcapfunds.htm

I personally went with DLS because of its value tilt. Naturally, I'd like to see something with more diversification and lower expenses...I imagine such a product isn't far away...
by Richard Berg
Fri Apr 11, 2008 10:47 am
Forum: Personal Investments
Topic: Just when I think I'm starting to understand....
Replies: 8
Views: 2190

Taxable - Taxes MF account withdrawals for capital gains.
Not quite. If you hold bonds, money markets, etc in taxable then you will be taxed on the income they produce regardless whether you withdraw it or not. And it will be taxed at your marginal income rate, not the capital gains rate.
by Richard Berg
Thu Apr 10, 2008 5:12 pm
Forum: Personal Investments
Topic: 6 funds too few for entire portfolio?
Replies: 6
Views: 2125

He can get the foreign tax credit if he uses the new All-World-ex-US funds in place of EAFE.
by Richard Berg
Thu Apr 10, 2008 4:30 pm
Forum: Personal Investments
Topic: 6 funds too few for entire portfolio?
Replies: 6
Views: 2125

Looks fine. Maybe substitute short-term Treasuries for TBM to achieve more of a "barbell" effect.
by Richard Berg
Thu Apr 03, 2008 9:14 pm
Forum: Personal Finance (Not Investing)
Topic: Digital TV...new digital recorders?
Replies: 4
Views: 1671

You'll need to plug your old analog VCRs and DVRs into a digital tuner box.

I doubt anyone will make digital pocket TVs. (Do they even make them today?) All the money is being made in iPods.
by Richard Berg
Sat Mar 22, 2008 10:04 pm
Forum: Personal Investments
Topic: IRA investing when your income is near the limit
Replies: 2
Views: 1154

IRA investing when your income is near the limit

I usually make IRA contributions in January, but we don't find out about raises/bonuses until August. Thanks to a very nice bonus last year, I'm having to withdraw more than half of my 2007 contribution. From the looks of it, this is an annoying amount of paperwork with Vanguard and may even require...
by Richard Berg
Tue Mar 18, 2008 12:26 pm
Forum: Personal Investments
Topic: Boglehead approach to 'foreign currency investing'?
Replies: 43
Views: 8213

Don't forget the carry (yield spreads). Interest rates in the U.S. are often higher than abroad, so it's easy to lag $ investments even if your currency speculations are correct. I see this repeated again and again on this board, but when I look at the yield of foreign government bonds in an intern...
by Richard Berg
Mon Mar 17, 2008 11:37 pm
Forum: Investing - Theory, News & General
Topic: Bear Stearns- Efficient Market?
Replies: 23
Views: 4919

Just because markets are (mostly) efficient doesn't mean they are crystal balls. Were markets overvalued on 9/10/2001? No...they simply ran into one of many possible "unknown unknowns." BS was going to great lengths to obfuscate the bad debt hiding under their balance sheet. It's not surpr...
by Richard Berg
Mon Mar 17, 2008 11:19 pm
Forum: Personal Investments
Topic: The danger of holding company stock
Replies: 21
Views: 6511

How much do you consider to be too much in company stock? $1, assuming you're a Boglehead. If anything, there are good arguments for taking a short position in your company and/or industry. If you're not a Boglehead, obviously you'd want to take a concentrated position in whatever stocks you predic...
by Richard Berg
Fri Mar 14, 2008 5:18 pm
Forum: Investing - Theory, News & General
Topic: Good Finanical Porn
Replies: 28
Views: 6866

D, Your example isn't for an accumulator. It's for an investment already made. An accumulator would be continuing to invest, at lower prices. I'd rather invest new money in the index at 800 than at 1000. No, the example applies to accumulators. Why should past prices determine future returns? If an...
by Richard Berg
Fri Mar 14, 2008 5:13 pm
Forum: Investing - Theory, News & General
Topic: MSN Money: 60% budget plan
Replies: 14
Views: 3324

I have no idea what the 401K matching requirements are now. Same. 50% up to 6%, i.e. 3% of salary unless you're dumb enough not to take the free money. So the typical tactic was 10% after tax salary into the ESPP and 6% into the 401K. My tactic: 50% of gross into Roth 401k ~30% goes to taxes, SS, M...
by Richard Berg
Fri Mar 14, 2008 2:50 am
Forum: Investing - Theory, News & General
Topic: Good Finanical Porn
Replies: 28
Views: 6866

A random walk model says your expected returns are the same in either case. You're misunderstanding the "random walk." Malkiel would never make the mistake of saying expected returns stay the same. To grossly oversimplify, the "randomness" of the walk is how you get from 1000 to...
by Richard Berg
Wed Mar 12, 2008 3:39 pm
Forum: Personal Investments
Topic: Roth 401ks
Replies: 3
Views: 1498

The limits and restrictions are the same as regular 401k's.
by Richard Berg
Mon Mar 10, 2008 10:12 pm
Forum: Personal Investments
Topic: Boglehead approach to 'foreign currency investing'?
Replies: 43
Views: 8213

1) Get a time machine. You're 2 years late to the party. 2) Don't forget the carry (yield spreads). Interest rates in the U.S. are often higher than abroad, so it's easy to lag $ investments even if your currency speculations are correct. 3) Good luck competing against all the professional carry tra...
by Richard Berg
Tue Mar 04, 2008 10:13 am
Forum: Personal Investments
Topic: To tilt or not to tilt
Replies: 2
Views: 1077

DFA. Simply put, I think there's a very good chance I'll have more $$ in my pocket in 20 years.
by Richard Berg
Fri Feb 29, 2008 9:30 pm
Forum: Personal Investments
Topic: I live in the most corrupt and crooked state in the nation
Replies: 28
Views: 9187

It's sad that I knew exactly which state would be mentioned before I clicked.
by Richard Berg
Wed Feb 27, 2008 11:51 am
Forum: Personal Investments
Topic: Sell my nice car to add to investment portfolio?
Replies: 15
Views: 3419

I think the car is fine, so long as you resolve to drive it into the ground from this point forward.

Dump the Forex hedge fund!
by Richard Berg
Sat Feb 23, 2008 5:11 pm
Forum: Personal Investments
Topic: Help me understand why I need bonds
Replies: 55
Views: 10911

I second dbr's recommendation of John Norstad's website. I had the honor of meeting and engaging in many conversations with John at Diehards 3 in Chicago. We talked about the fallacy of time diversification and the concept that equity risk increases with time. Yet Wall Street and the media keep chu...
by Richard Berg
Mon Feb 18, 2008 5:08 pm
Forum: Personal Investments
Topic: Financial doom/gloom: Where are you positioned now?
Replies: 22
Views: 4771

Still 100% equities, cap-weighted. Thinking about buying into SCV and/or REIT once my 401k plan offers a self-directed brokerage plan next month.
by Richard Berg
Mon Feb 18, 2008 5:06 pm
Forum: Personal Investments
Topic: In this time of uncertainty, why equities at all?
Replies: 48
Views: 11809

I don't get where this "rule #1" came from
Buffett.
by Richard Berg
Fri Feb 01, 2008 5:51 pm
Forum: Personal Investments
Topic: HSBC Direct Savings Accounts... 1099?
Replies: 8
Views: 6460

I got a paper one last year. Hasn't arrived yet this year.
by Richard Berg
Thu Jan 31, 2008 3:56 pm
Forum: Personal Investments
Topic: Do TIPS FUNDS really work?
Replies: 27
Views: 5882

There are no canonical "benefits of TIPS." They are just another type of security that may or may not fit your goals. If you want something like a savings account that's guaranteed to never lose money while also protecting against inflation, i-bonds are the closest equivalent. Buying indiv...
by Richard Berg
Thu Jan 31, 2008 3:51 pm
Forum: Personal Investments
Topic: Dividend Paying Stocks: Should I care about NAV fluctuations
Replies: 32
Views: 5041

You're somewhat letting the tail wag the dog, you're assuming there will be appreciation and I really don't think retirees should rely too heavily on growth...it's too risky. Huh? The assumptions came straight from your post. Of course, nobody knows what kind of appreciation we will see from stocks...
by Richard Berg
Thu Jan 31, 2008 3:46 pm
Forum: Personal Investments
Topic: Do TIPS FUNDS really work?
Replies: 27
Views: 5882

Most bond funds buy & sell bonds to maintain a constant maturity. Constant maturity = constant risk level = what most people are looking for from an asset allocation perspective. They can either get this from a traditional bond fund or by maintaining their own bond ladder. By contrast, if you ha...
by Richard Berg
Thu Jan 31, 2008 2:47 pm
Forum: Investing - Theory, News & General
Topic: How to invest in Dubai?
Replies: 68
Views: 22253

The incredible growth in Dubai seems very similar to the "Asian Tigers" of the mid-90s. Then 1998 hit. It would be instructive to visit Malaysia and see all of the half-constructed skyscrapers -- cheaper than making an investment mistake by chasing performance, and you get a nifty vacation...
by Richard Berg
Tue Jan 29, 2008 8:32 pm
Forum: Personal Investments
Topic: Swensen's new EM allocation recommendation
Replies: 23
Views: 7873

Note that Emerging markets are a significantly bigger piece of the global equity pie than they were when the book was being written. I'm not sure there's much to this.
by Richard Berg
Tue Jan 29, 2008 5:24 pm
Forum: Personal Investments
Topic: Why won't Fidelity allow FDRXX as "core account" i
Replies: 18
Views: 16170

Fidelity does allow FDRRX as core accounts in IRAs and Roths, just not in taxable accounts. I don't know why. Seems obvious enough - taxable accounts have way more churn. Did you see the mySmartCash thread? I need to re-read it, but it appears that by using it properly one can basically keep the co...
by Richard Berg
Tue Jan 22, 2008 3:07 pm
Forum: Investing - Theory, News & General
Topic: Favorable season update
Replies: 2
Views: 1427

Favorable season update

Sorry, couldn't resist.

I wonder where the posters betting on a January Effect have gone?
by Richard Berg
Mon Jan 21, 2008 6:18 pm
Forum: Personal Investments
Topic: Where to invest cash in current market?
Replies: 10
Views: 3111

Any belief I may have had in efficient markets is pretty shaken given the recent volatility.
Why? Volatility has to be expected in a complex feedback-driven system (as any market must be to even approach efficiency).
by Richard Berg
Mon Jan 21, 2008 6:10 pm
Forum: Personal Investments
Topic: Taxes on $1 million bonus
Replies: 12
Views: 3317

I agree with LH2004. It makes me an unpopular figure on college sports forums, but from a finance perspective like the Diehards one there should be no question. Take the money. (This assumes you have an actual offer in hand. Lots of kids screw up their lives when a few scouts whisper $$s in their ea...
by Richard Berg
Fri Jan 18, 2008 1:47 pm
Forum: Personal Investments
Topic: Young Professional Seeking Advice - Inheritance and Debt
Replies: 16
Views: 3678

I would sell the stock and pay off the car. Having that much of your net worth tied up in a single stock is way too risky. Meanwhile, the interest rate on the car is high enough that it's a "free lunch" no comparable investment can provide. It sounds like you're living well below your mean...
by Richard Berg
Wed Jan 09, 2008 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Any legitimate ways to make money from home?
Replies: 45
Views: 12002

Any legitimate ways to make money from home?
Rent out a room.
by Richard Berg
Tue Dec 04, 2007 3:41 pm
Forum: Investing - Theory, News & General
Topic: McKinsey: World’s new financial power brokers, 2007-12
Replies: 4
Views: 1754

I'm glad they only tried to forecast 5 years. This balance is hardly set in stone. 20 years ago everyone was writing articles about the excess capital flowing from Japan. Not many generations before that the British were the world's bankers, and the Dutch before them...
by Richard Berg
Wed Oct 31, 2007 1:23 pm
Forum: Investing - Theory, News & General
Topic: Active management by individual investors is a Loser's Game
Replies: 18
Views: 5493

http://faculty.haas.berkeley.edu/odean/Current%20Research.htm http://www.dalbarinc.com/content/printerfriendly.asp?page=2001062100 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=892743 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=931180 http://www.marketwatch.com/News/Story/Story.aspx?guid...
by Richard Berg
Fri Aug 17, 2007 3:58 pm
Forum: Investing - Theory, News & General
Topic: Buffett, Grantham, Miller, Schiller on the correction
Replies: 6
Views: 2804

How many are familiar with those other views? If not, why not? Not all smart people espouse Diehard views. Don’t you owe it to yourself to become familiar with contrary views? John Absolutely. That's why I posted the link. Ben Stein's piece is good bait for Diehards, but nothing we don't already kn...
by Richard Berg
Fri Aug 17, 2007 12:31 pm
Forum: Investing - Theory, News & General
Topic: Buffett, Grantham, Miller, Schiller on the correction
Replies: 6
Views: 2804

Buffett, Grantham, Miller, Schiller on the correction

13 big names in all -- check CNN Money. The frequently cited investors in the title say exactly what you'd expect if you're familiar with their views. Then Ben Stein weighs in with a surprisingly Boglehead counterpoint: No one is too stupid to make money in the stock market. But there are many who a...
by Richard Berg
Wed Apr 18, 2007 1:26 am
Forum: Investing - Theory, News & General
Topic: Are private elite universities worth it?
Replies: 139
Views: 65297

Assuming your state schools are good, I think they're an easy choice over places like Emory. I've never seen the point of paying Ivy fees for 2nd tier schools. You can make a good argument that the top tier offers things state schools cannot. A large % your friends will go on to become leaders in th...
by Richard Berg
Sat Apr 14, 2007 7:24 pm
Forum: Investing - Theory, News & General
Topic: New Efficient Frontier Article
Replies: 12
Views: 4422

Where'd you find it? I looked all over.

Unfortunately, it doesn't work.

SMTP error from remote server after RCPT command:
host mx1.business.mindspring.com[198.185.2.67]:
550 bill@efficientfrontier.com...User unknown
by Richard Berg
Fri Apr 13, 2007 9:45 pm
Forum: Personal Finance (Not Investing)
Topic: Photo Management and Storage
Replies: 6
Views: 2853

I think Flickr is the best thing since sliced bread. (Better, actually...sliced bread goes stale quicker, dumb idea if you ask me...knives are fun!) I can't see myself ever using a client-side photo database again.
by Richard Berg
Thu Apr 12, 2007 10:52 pm
Forum: Investing - Theory, News & General
Topic: How much do you save?
Replies: 9
Views: 4279

I'm still not sure how to count tax-deferred contributions. Here's my intuition: the traditional 401k & IRA contributions need to be discounted by your marginal tax rate, and Roth 401k / Roth IRA contributions should not. Additionally, your disposal income will be slightly lower in the Roth case...
by Richard Berg
Wed Apr 11, 2007 3:40 pm
Forum: Investing - Theory, News & General
Topic: New Efficient Frontier Article
Replies: 12
Views: 4422

Does anyone have contact info for WBern? I wish he would add an RSS feed to Efficient Frontier. Without this forum I'd always miss new issues (tragic!)
by Richard Berg
Tue Apr 03, 2007 5:56 pm
Forum: Investing - Theory, News & General
Topic: Periodic Table of Investment Returns
Replies: 57
Views: 29935

Thanks Travis: I appreciate your bringing this issue to light. To the extent anyone is fooled by our terminology, we should be concerned. For example, when you showed that Larry is hopelessly confused about the definition of "loser's game", it led to poor reasoning and ultimately inaccurat...
by Richard Berg
Mon Apr 02, 2007 4:59 pm
Forum: Investing - Theory, News & General
Topic: To those that pick stocks - what strategies do you use?
Replies: 21
Views: 8931

I don't have the time, interest, or spare cash to invest in stocks right now. If I did, I would follow the Buffett school to the letter: core analysis based on Graham/Dodd discounted cash flow when forecasting growth, prioritize sustainable competitive advantage (moats) no newsletters / rating servi...