Search found 603 matches

by DaufuskieNate
Mon Mar 04, 2024 4:00 pm
Forum: Investing - Theory, News & General
Topic: Aggressive savers: Reduce stocks % the closer you are to your target numbers?
Replies: 32
Views: 3662

Re: Aggressive savers: Reduce stocks % the closer you are to your target numbers?

The first step is to determine what your retirement allocation should look like. Lots of possible answers to that question. If your retirement allocation is more conservative than your current 80/20 then it makes some sense, with only 2 or so years to go, to start getting closer to your retirement allocation. A bad draw with an 80/20 allocation could definitely delay your plans significantly and that would be a shame since you are so close to winning the game.
by DaufuskieNate
Mon Feb 26, 2024 4:22 pm
Forum: Investing - Theory, News & General
Topic: Can you do better than BND?
Replies: 278
Views: 35855

Re: Can you do better than BND?

While widely accepted, that definition of 'risk free' doesn't make any sense to me for 30 year nominal bonds due to interest rate / inflation sensitivity not being accounted for. Yes, you get what you expected to get from a nominal perspective, but how much buying power does that have may have shifted dramatically. As you shorten duration these risks are reduced significantly. Which means TIPS/iBonds would fit my definition except TIPS have more risk during the holding period due to interest rate sensitivity. iBonds have weird/unique risks related to holding period restrictions that are pretty minor in the scheme of things. Totally agree with your comment on long-term nominal bonds. They can really only be used risk-free for long-term nomi...
by DaufuskieNate
Wed Feb 21, 2024 6:39 pm
Forum: Investing - Theory, News & General
Topic: Can you do better than BND?
Replies: 278
Views: 35855

Re: Can you do better than BND?

Bogleheads are an elite group of investors with far more knowledge than the average investor. And yet, the reaction to bond fund performance in 2022 is evidence of a real lack of knowledge of the basics. This can lead to behavioral errors when confronted with a challenging market. In this case, the market of 2022 was pretty normal and to be expected. It's easy to put together a 3-fund portfolio after reading a book or two. It's much more difficult to go beyond superficial knowledge and avoid behavioral errors after the portfolio is set up. So yes, while many Bogleheads can do this, most investors are not prepared intellectually or behaviorally to self-manage a portfolio. Pretty ironic that so many otherwise informed people believe rising r...
by DaufuskieNate
Tue Feb 20, 2024 2:48 pm
Forum: Investing - Theory, News & General
Topic: Can you do better than BND?
Replies: 278
Views: 35855

Re: Can you do better than BND?

It's a bit shocking to see the number of investors who had no idea what to expect from a bond fund in a period of inflation and Fed tightening. Perhaps the universe of those truly capable of successful DIY investing is smaller than we think. I think it is very small. I think this DIY investing stuff gets it's hooks into some people, and we just have this determination to learn it. For most it's just a bunch of mumbo-jumbo and they have no ability|intention|motivation to learn it. It seems like your views have evolved since you created your auto-signature? Not at all. Why do you say that? It sounds like you no longer believe that a simply constructed portfolio (something like a 3 fund portfolio) can be self managed by most investors and tha...
by DaufuskieNate
Tue Feb 20, 2024 11:43 am
Forum: Investing - Theory, News & General
Topic: Can you do better than BND?
Replies: 278
Views: 35855

Re: Can you do better than BND?

As for the unusually high number of bond threads, no one can stop it, as this is all coming from folks who expect bonds to provide better than cash returns but without taking any downside risk at all. It seems people expect bonds to be a free lunch, they are not, nothing is. They can stay in cash if they don't want to see any downward price movements, but then should not have FOMO when bonds beat cash. That behavior won't make bonds an unmitigated disaster, just investor behavior, not learning the fundamentals, and expecting something for nothing. It's a bit shocking to see the number of investors who had no idea what to expect from a bond fund in a period of inflation and Fed tightening. Perhaps the universe of those truly capable of succ...
by DaufuskieNate
Sun Feb 11, 2024 7:46 am
Forum: Investing - Theory, News & General
Topic: Ashwath Damodaran on the S&P 500
Replies: 15
Views: 3540

Re: Ashwath Damodaran on the S&P 500

Gaston wrote: Sat Feb 10, 2024 9:38 pm I thought it interesting that according to the data Dr. Damodaran presented, the return on “all other” stocks in 2023, excluding the Magnificent Seven, was over 12%. Not a bad year by most standards.
Yes, not bad at all. It's also interesting to note that AVLV (large cap value) and AVUV (small cap value) returned over 17% and 22% respectively. Not bad considering that "value is dead." By that standard, anything other than the Magnificent Seven is "dead."
by DaufuskieNate
Wed Jan 31, 2024 9:40 pm
Forum: Investing - Theory, News & General
Topic: Echoes of Dot Com Bubble?
Replies: 230
Views: 24302

Re: Echoes of Dot Com Bubble?

Observations front the Dot Com era: Companies with real products and servicing distribution channels were considered relics of a bygone era with bloated cost structures. While some of this was true, it was exaggerated beyond common sense. Fundamental valuation was thrown out in favor of new measures of worth. Capturing “eyeballs” on the internet was more important than current profits. Those who questioned this logic just didn’t “get it.” Internet start ups were able to raise significant amounts of equity financing with stories that sounded plausible. Some of the money raised went to things like Super Bowl advertising. It’s easy to criticize today, but while it was happening in real time it seemed like maybe things were different. As is com...
by DaufuskieNate
Thu Jan 18, 2024 1:58 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value alternative for IJS
Replies: 5
Views: 800

Re: Small Cap Value alternative for IJS

AVUV & DFSV may be to your liking.
by DaufuskieNate
Tue Jan 16, 2024 5:08 pm
Forum: Investing - Theory, News & General
Topic: Brokerages/Financial Websites Issues
Replies: 11
Views: 1394

Re: Brokerages/Financial Websites Issues

At times, I have to disable my VPN to get into some of these websites. But it's not consistent.
by DaufuskieNate
Tue Jan 16, 2024 9:02 am
Forum: Investing - Theory, News & General
Topic: More Evidence Against Factor Investing
Replies: 650
Views: 46469

Re: More Evidence Against Factor Investing

I wouldn't worry too much about the lack of buzz around large cap growth investing on this forum. Bogleheads largely follow a passive approach to investing. The philosophy of passive investing extends naturally to factor investing. Not so much to LCG where long-term premiums are not seen on the evidence. At the risk of over-simplifying, there are plenty of active investors out there for whom LCG is a steady diet. A lot of active investing depends on stories told and repeated. An analyst at investment bank A tells a story to the investment committee about why stock X is a good investment. Next up, a blast goes out to brokers/advisors repeating the story. This sets off a myriad of discussions between brokers and clients that lead to trades. A...
by DaufuskieNate
Sat Dec 16, 2023 12:15 pm
Forum: Investing - Theory, News & General
Topic: My Case Against Factor Investing
Replies: 93
Views: 19573

Re: My Case Against Factor Investing

KarlJ wrote: Sat Dec 16, 2023 12:00 pm I found it distressing that Rick Ferri apparently is throwing in the towel on the Total Economy portfolio as enumerated in the second edition of All About Asset Allocation. I decided to reexamine my own portfolio that resembles the Total Economy portfolio light of this.
I wouldn't say he has thrown in the towel. There is still a Total Economy portfolio as one of his Core-4 portfolios. https://core-4.com
by DaufuskieNate
Sat Dec 16, 2023 8:38 am
Forum: Investing - Theory, News & General
Topic: Taxable accounts: VTI vs AVUS (VT vs AVGV etc)
Replies: 26
Views: 5953

Re: Taxable accounts: VTI vs AVUS (VT vs AVGV etc)

I think DFAC is a great TLH partner for AVUS.
by DaufuskieNate
Sun Dec 10, 2023 5:43 am
Forum: Investing - Theory, News & General
Topic: Is it time to secure 5-10 year Treasuries?
Replies: 19
Views: 5278

Re: Is it time to secure 5-10 year Treasuries?

helloyou wrote: Sun Dec 10, 2023 2:19 am I would be down to put most of my medium term cash into this, but I wonder what would happen if I had to sell early
This is your answer. Figure out, to the best of your ability, when you are going to need this money and match the duration of your fixed income to that timeframe. If there's a lot of uncertainty as to when you will need the money, go with a shorter duration and remove the risk. You might guess right as to the direction of interest rates, but it would be just that...a guess. And your odds of guessing right don't improve by asking others on the internet for their guesses.
by DaufuskieNate
Tue Dec 05, 2023 9:10 am
Forum: Investing - Theory, News & General
Topic: Article: "Why "VT and Chill" Is Probably the Best ETF Investing Strategy Out There"
Replies: 69
Views: 19198

Re: Article: "Why "VT and Chill" Is Probably the Best ETF Investing Strategy Out There"

This article is a very simply written piece. In my mind, the target audience is people without a lot of background and experience in investing and finance . The message, which is a good one, would fall flat with this audience if the punch line ended up being a 6% return. ... I do not know about this. Yes, it would be good for someone to hold without much background in finance. But I suspect a lot of us on this thread, myself included, and the author of the paper came to the conclusion with experience of the behavioral pitfalls of many other strategies. And this came with background and experience. I agree with your point. Back in October there was a debate going on whether the author of the article cherry-picked the time period to show a 9...
by DaufuskieNate
Fri Nov 24, 2023 9:30 am
Forum: Investing - Theory, News & General
Topic: What to invest in Roth for 13 year old
Replies: 78
Views: 14311

Re: What to invest in Roth for 13 year old

Lawyered_ wrote: Fri Nov 24, 2023 8:21 am Some options for you, cascading from standard advice to non-standard:

1. 100% VT;
2. 60% VTI; 40% VXUS rebalanced a couple of times a year;
3. 100% AVGE or AVDV;
4. 60% NTSX; 30% NTSI; 10% NTSE; and
5. 90% VT; 10% UPRO, rebalanced quarterly.
3. 100% AVGE or AVGV ???
by DaufuskieNate
Tue Nov 21, 2023 9:29 am
Forum: Investing - Theory, News & General
Topic: New Book on the Life Cycle Model - "The Missing Billionaires: A Guide to Better Financial Decisions"
Replies: 154
Views: 33612

Re: New Book on the Life Cycle Model - "The Missing Billionaires: A Guide to Better Financial Decisions"

Should the broad market CAPE be used to gauge the equity premium for a heavily tilted equity portfolio? Using the broad market CAPE would have resulted in a reduced equity exposure during the tech bubble in 2000. And yet, this was the best time to be heavily invested in SCV equities. What are the alternatives? Broad market CAPE adjusted for factor premiums? Current PE of the portfolio? Curious what ya'll think.
by DaufuskieNate
Fri Nov 17, 2023 10:51 am
Forum: Investing - Theory, News & General
Topic: DFAW Dimensional World Equity ETF
Replies: 23
Views: 1721

Re: DFAW Dimensional World Equity ETF

Both good funds for one-stop global 70/30 U.S./International exposure with modest tilts. For a 60/40 U.S./International fund with stronger tilts, there is also Avantis All Equity Market Value (AVGV).
by DaufuskieNate
Sun Oct 29, 2023 8:45 am
Forum: Investing - Theory, News & General
Topic: Considering shift from Avantis AVGE over to Vanguard VTI/VXUS
Replies: 11
Views: 2231

Re: Considering shift from Avantis AVGE over to Vanguard VTI/VXUS

There must have been some reason that you chose to invest in AVGE in the first place. So what's changed? Is it that it has a modestly higher expense ratio? You must have known that going in. Are you letting the SCV rhetoric on this forum get to you? AVGE is a very modestly tilted investment. It only has 9% of its portfolio in SCV. It has 7.4% of its portfolio in Apple, Microsoft, Amazon, Nvidia, Alphabet and Meta which is roughly half of what a 70/30 MCW has in these stocks. You must have suspected something like this going in. Are you concerned that its returns do not exactly mirror a MCW portfolio? You must have known this would be the case going in. And why should you care as long as it meets your financial objectives over the long run? ...
by DaufuskieNate
Thu Oct 26, 2023 1:10 pm
Forum: Investing - Theory, News & General
Topic: Dimensional v Avantis
Replies: 50
Views: 11260

Re: Dimensional v Avantis

I think AVNM is more along the lines you are looking for. However, VERY small AUM. Maybe keep an eye on the bid/ask spread.
by DaufuskieNate
Wed Oct 18, 2023 6:23 pm
Forum: Investing - Theory, News & General
Topic: Article: "Why "VT and Chill" Is Probably the Best ETF Investing Strategy Out There"
Replies: 69
Views: 19198

Re: Article: "Why "VT and Chill" Is Probably the Best ETF Investing Strategy Out There"

This article is a very simply written piece. In my mind, the target audience is people without a lot of background and experience in investing and finance. The message, which is a good one, would fall flat with this audience if the punch line ended up being a 6% return. So yes, the timeframe was slightly cherry-picked. At least it wasn't cherry-picked in a way that compared this to other alternatives that happened to do less well during the chosen timeframe. I'm sure the good folks at Vanguard feel that they are fighting the good fight with articles like this intended for the less well initiated.
by DaufuskieNate
Wed Oct 04, 2023 2:12 pm
Forum: Investing - Theory, News & General
Topic: Why do people think Bond Diversification does not work?
Replies: 15
Views: 1200

Re: Why do people think Bond Diversification does not work?

Ironically, your charts show evidence that bond diversification does work. Your "portfolio 2's" have higher returns and lower standard deviations than a simple 50/50 average of the equity and bond funds. A diversifying asset is not a hedge. It doesn't necessarily cover a loss in the other asset all the time. On the other hand, boosting portfolio return and lowering portfolio standard deviation with a portfolio that represents your personal risk tolerance ain't nothing.
by DaufuskieNate
Wed Oct 04, 2023 2:01 pm
Forum: Investing - Theory, News & General
Topic: A Question About Factor Tilting
Replies: 27
Views: 2437

Re: A Question About Factor Tilting

It's probably worth checking the 2 value funds for exposures to other factors such as size and profitability just to see if there are any meaningful differences.
by DaufuskieNate
Sat Sep 09, 2023 4:58 pm
Forum: Investing - Theory, News & General
Topic: BND vs VMFXX
Replies: 20
Views: 3689

Re: BND vs VMFXX

Diversification is usually the right answer. In this case, we are talking about diversification of maturities.
by DaufuskieNate
Sat Aug 19, 2023 5:41 pm
Forum: Investing - Theory, News & General
Topic: Dimensional v Avantis
Replies: 50
Views: 11260

Re: Dimensional v Avantis

donaldfair71 wrote: Sat Aug 19, 2023 3:51 pm
Correct me if I’m wrong but I believe that big/growth outperformed small/value the last year. If so, interesting to me how the deeper value funds (not all- BOSVX, Bridgeway’s deep small value returned only 5.25%) actually outperformed the SP500.

Profitability did outperform the past year, likely the cause for Avantis and DFA alpha.
Good insight. AVUV, DFSV and RSV were all hurt by their exposures to small/value. They gained from exposures to profitability. Interestingly, RSV lost even more due to it's deeper value exposure, but partially made it for it by gaining from a high negative momentum exposure. Negative momentum exposure is normally not a good thing, but it paid off during this short timeframe.
by DaufuskieNate
Fri Aug 18, 2023 10:54 am
Forum: Investing - Theory, News & General
Topic: What are you[r] go to bond funds for taxable accounts?
Replies: 40
Views: 5076

Re: What are you go to bond funds for taxable accounts?

I use MUB. 85% of portfolio rated AA or higher. 7 bp fee.
by DaufuskieNate
Thu Aug 17, 2023 8:03 pm
Forum: Investing - Theory, News & General
Topic: Dimensional v Avantis
Replies: 50
Views: 11260

Re: Dimensional v Avantis

White Coat Investor wrote: Thu Aug 17, 2023 7:03 pm Thanks for the thread everybody. Here are some interesting one year returns for small value ETFs:

ETF 1- year Returns
VBR 8.54%
VIOV 6.08%
VTWV 4.29%
IJS 6.10%
IWN 3.71%
SVAL 1.82%
SLYV 6.16%
RZV 12.35%
DFSV 13.04%
AVUV 13.45%

Kind of reads like an AVUV advertisement doesn't it?
I'm fan of both Avantis and DFA. But we need to hold ourselves to a higher standard than treating 1-year returns more that what they are. Especially if we hold ourselves out to be among those who have experience and knowledge in this area.
by DaufuskieNate
Wed Aug 16, 2023 6:07 pm
Forum: Investing - Theory, News & General
Topic: [Help reacting to article saying] Market massively overvalued and will crash ?
Replies: 39
Views: 2866

Re: [Help reacting to article saying] Market massively overvalued and will crash ?

Once we fully realize and understand at a deep level that the media is just selling ads, life gets simpler. No need to be whipsawed by prognostications that go one way and then another on a daily basis. It's easy to see with subjects where we have a background of experience, learning and understanding. What's scary is that it's the same problem with subjects we know little or nothing about.
by DaufuskieNate
Sat Aug 12, 2023 9:59 am
Forum: Investing - Theory, News & General
Topic: Quantifying impact of calls on Muni bond funds
Replies: 15
Views: 1646

Re: Quantifying impact of calls on Muni bond funds

There is a concept in fixed income called the "option adjusted spread." An internet search of this term will provide you with the ability to go as deep as you want into this subject. It gets very technical. Yields, volatilities, duration, likelihood of calls and puts, and likelihood of prepayments in the case of mortgage-backed securities all enter into the analysis of the option adjusted spread.
by DaufuskieNate
Sat Aug 05, 2023 10:12 am
Forum: Investing - Theory, News & General
Topic: How Can Quality Be a "Risk Premium"?
Replies: 68
Views: 5328

Re: How Can Quality Be a "Risk Premium"?

Quality as a risk premium is not intuitive at all. The best explanation I have heard involves looking at the quality factor in conjunction with other risk factors, especially value. An example would be 2 stocks with the same market, size and value exposures. Let's say that they each trade at a 15 p/e multiple, so you pay $15 for $1 of earnings. If one of them has a higher quality/profitability score, then it must be riskier. Why? Because it appears to be the more profitable company but the stock trades at the same multiple, or discount rate. And if it's riskier it must earn an extra return for taking on that risk. In this sense, the quality factor proxies for and picks up some additional element of risk that is not captured by the other fac...
by DaufuskieNate
Sat Jul 22, 2023 3:24 pm
Forum: Investing - Theory, News & General
Topic: Courage Required - William Bernstein
Replies: 57
Views: 8723

Re: Courage Required - William Bernstein

TheTimeLord wrote: Sat Jul 22, 2023 3:13 pm As I read it they were in stocks because they knew how to value them and they were cheap, cheap, cheap plus they knew severe bear markets are usually followed by powerful bull markets. How is that passive investing logic?
I didn't read read this any differently than truly passive investors can stay the course after long periods of underperformance because they know that these things cycle back and forth. Sort of like not bailing out on a well thought out globally diversified strategy just because of a long period of underperformance in non-U.S. equities. On this point, it seems that a lot of Bogleheads aren't all that passive after all.
by DaufuskieNate
Thu Jun 22, 2023 9:21 am
Forum: Investing - Theory, News & General
Topic: "Are You Questioning Your Foreign Stock Funds?"
Replies: 122
Views: 12579

Re: "Are You Questioning Your Foreign Stock Funds?"

galeno wrote: Fri Jul 03, 2020 1:22 pm And really. Who else does the Canada/USA/Mexico trading block REALLY need? This trading block can tell the rest of the world to "pound sand".
Not sure that North America is ready to wean itself off imports of rare earth and other key minerals used in defense products, technology, electric vehicles and batteries.
by DaufuskieNate
Thu Jun 22, 2023 8:48 am
Forum: Investing - Theory, News & General
Topic: Paper: "Smart beta" is a mirage due to data mining in backtested indexes
Replies: 115
Views: 10136

Re: Paper: "Smart beta" is a mirage due to data mining in backtested indexes

The data used in this study seems suspect. The majority (60%) of the ETF start dates are in the period of 2015-2018. The data sample ends in December 2019. That's a very short period to draw any conclusions. It it also a timeframe where we already know that many factor strategies under-performed. Well, they do say that their results " cannot be explained by variation in factor premia..." But you're right, three years isn't long enough. The first three years after inception of the DFA US Micro Cap Fund, formerly called something else, DFSCX, were fantastic. Only after that did it experience fourteen years of underperformance, quickly losing back the early gains. And, yes, "variation in factor premia" is the key. It IS in...
by DaufuskieNate
Thu Jun 22, 2023 7:31 am
Forum: Investing - Theory, News & General
Topic: Paper: "Smart beta" is a mirage due to data mining in backtested indexes
Replies: 115
Views: 10136

Re: Paper: "Smart beta" is a mirage due to data mining in backtested indexes

The data used in this study seems suspect. The majority (60%) of the ETF start dates are in the period of 2015-2018. The data sample ends in December 2019. That's a very short period to draw any conclusions. It it also a timeframe where we already know that many factor strategies under-performed.
by DaufuskieNate
Sat Jun 10, 2023 8:43 am
Forum: Investing - Theory, News & General
Topic: Investments you wouldn't touch with a 10 foot pole
Replies: 242
Views: 26779

Re: Investments you wouldn't touch with a 10 foot pole

Variable annuities and structured Investments from a broker.
by DaufuskieNate
Thu May 18, 2023 9:07 am
Forum: Investing - Theory, News & General
Topic: Diminishing Returns on Contributions Thought Experiment
Replies: 11
Views: 933

Re: Diminishing Returns on Contributions Thought Experiment

A one-size-fits-all heuristic doesn't exist, or more accurately, doesn't capture the nuances of your individual situation. All of saving and investing comes down to one thing: managing your lifetime consumption. Everyone has different answers to the questions surrounding the value of consumption today versus the value of consumption in the future. A well-designed financial plan should help sort this out. Ideally, you should feel that you have enough today and in the future. If you've gone beyond this point, you can start thinking about how you want to distribute what's left over. But distributing assets is really just another form of managing your lifetime consumption.
by DaufuskieNate
Mon May 15, 2023 5:11 pm
Forum: Investing - Theory, News & General
Topic: Bogle on "Factor Funds"
Replies: 264
Views: 13262

Re: Bogle on "Factor Funds"

muffins14 wrote: Mon May 15, 2023 4:09 pm What would be helpful as guidelines to make this post actionable?
Bogle created the first index fund marketed to retail investors in 1976. At the time, this was a great innovation. Bogle could possibly even have be characterized as a rebel within the mutual fund industry.

In the 47 years since that time, what, if any, innovations in mutual funds/ETF's are worth considering?
by DaufuskieNate
Sun May 14, 2023 3:31 pm
Forum: US Chapters
Topic: Searching for Lost Contributors
Replies: 544
Views: 140573

Re: Is member vineviz doing alright?

imbogled wrote: Sun May 14, 2023 3:17 pm
DaufuskieNate wrote: Sun May 14, 2023 3:04 pm He posts regularly on Rational Reminder, along with RobertT, Larry Swedroe and several other cogent former contributors to Bogleheads.
Given that information above. Is there a chance that he may have stopped contributing to the Bogleheads forum? With almost 15,000 posts in five years it would be a terrible shame to see him go.
If you find his comments interesting (I certainly do), why not check out Rational Reminder?
by DaufuskieNate
Sun May 14, 2023 3:04 pm
Forum: US Chapters
Topic: Searching for Lost Contributors
Replies: 544
Views: 140573

Re: Is member vineviz doing alright?

He posts regularly on Rational Reminder, along with RobertT, Larry Swedroe and several other cogent former contributors to Bogleheads.
by DaufuskieNate
Mon May 08, 2023 2:33 pm
Forum: Investing - Theory, News & General
Topic: AQR: International Diversification—Still Not Crazy after All These Years
Replies: 295
Views: 18561

Re: AQR: International Diversification—Still Not Crazy after All These Years

strummer6969 wrote: Mon May 08, 2023 1:28 pm How about a three dish portfolio: 1/3 tacos, 1/3 burritos, 1/3 chimichangas?
Chimichanga would be a good "alternative."
by DaufuskieNate
Fri May 05, 2023 6:15 pm
Forum: Investing - Theory, News & General
Topic: “Stop Playing”..What Does This Really Mean?
Replies: 98
Views: 12443

Re: “Stop Playing”..What Does This Really Mean?

In Vegas, it means leaving the table after you have won big because staying longer will almost certainly lose you money.
by DaufuskieNate
Thu May 04, 2023 8:50 am
Forum: Investing - Theory, News & General
Topic: What is your expectation for portfolio growth in retirement?
Replies: 73
Views: 7430

Re: What is your expectation for portfolio growth in retirement?

Definitely less as an expectation. Although I think it can be hard to shift perspectives in retirement. After working for many years and watching a portfolio grow, it's an entirely different mindset to watch it decline. But I'd rather spend it in meaningful ways. My plan is to give the kids a good education without having to go into debt. After that, maybe a small inheritance. I think learning to thrive on your own leads to greater happiness.
by DaufuskieNate
Mon May 01, 2023 8:03 pm
Forum: Investing - Theory, News & General
Topic: Taxable asset level and “exotic” investments
Replies: 42
Views: 2426

Re: Taxable asset level and “exotic” investments

At what asset level in liquid post-tax money do people start investing in more “exotic” investments like hedge funds, PE funds, etc? To what asset levels does the Boglehead approach scale? I wonder if there are billionaires out there that just invest in VTI, VOO etc. ?? 1) People invest in hedge funds, PE funds, etc. if they have enough assets to attract an advisor that sells these expensive products. Likely north of $10m... 2) The Boglehead approach can handle VERY large amounts, including those amounts that would be of interest to advisors who sell hedge funds, PE funds, etc. 3) Billionaires did not get there by investing in VTI, VOO, etc. They own their own companies, run large enterprises, etc. So it's not likely that they just invest ...
by DaufuskieNate
Sun Apr 30, 2023 2:25 pm
Forum: Investing - Theory, News & General
Topic: How Do You Like My New 'Doo
Replies: 445
Views: 107059

Re: How Do You Like My New 'Doo

I'm curious to understand your thoughts on taking SS at your retirement age vs. waiting longer. I've been waiting to claim, but I'm always interested in other perspectives.
by DaufuskieNate
Sun Apr 16, 2023 12:15 pm
Forum: Investing - Theory, News & General
Topic: How Do You Like My New 'Doo
Replies: 445
Views: 107059

Re: How Do You Like My New 'Doo

Another aspect of this has to do with life planning. What is it that I am going to do in retirement? I want to do some travel and am thinking about other things I want to do. My late father once joked that I could sit at the Charles Schwab office and watch the market news and the stock ticker. Life is about a whole lot more than that. Yes, it is a whole lot more. I like to think of retirement as an opportunity to become the best version of yourself as you can. For me, working full time had very little to do with this. In retirement, I have pursued health/fitness, family time, learning new subjects unrelated to professional/career goals, and spending a small amount of time in part-time work that I find fulfilling. Everyone is different and ...
by DaufuskieNate
Sun Apr 16, 2023 6:50 am
Forum: Investing - Theory, News & General
Topic: How Do You Like My New 'Doo
Replies: 445
Views: 107059

Re: How Do You Like My New 'Doo

Congratulations Nedsaid. You have reached financial independence, which is a great feeling.
by DaufuskieNate
Thu Apr 06, 2023 9:14 am
Forum: Investing - Theory, News & General
Topic: submit ?s: Cybersecurity - keeping your $ safe online [Bogleheads® Live]
Replies: 42
Views: 4401

Re: submit ?s: Cybersecurity - keeping your $ safe online [Bogleheads® Live]

Given the prevalence of phishing schemes, why do financial institutions still send out emails to customers with links to their websites?
by DaufuskieNate
Wed Apr 05, 2023 5:45 am
Forum: Investing - Theory, News & General
Topic: Avantis AVLV vs AVUS for a value tilt total US market
Replies: 10
Views: 1640

Re: Avantis AVLV vs AVUS for a value tilt total US market

AVUS is an all-cap fund. It has over 2,000 holdings and benchmarks the Russell 3000 index. It has a mild value tilt.

AVLV is a large cap fund. It has a little over 200 holdings and benchmarks the Russell 1000 value index. It has a stronger value tilt.

If you want a stronger value tilt, AVLV matches up well with AVUV giving you exposure to large and small cap funds. AVUS would cover small and large cap in one fund. It has more holdings, more growth stocks and less of a value tilt.
by DaufuskieNate
Sun Apr 02, 2023 11:24 am
Forum: Investing - Theory, News & General
Topic: Are Bogleheads rational about Social Security decisions?
Replies: 252
Views: 25907

Re: Are Bogleheads rational about Social Security decisions?

Also, longer term... once all the baby boomers are gone (20-25 years more?), there will be far fewer people drawing benefits, so that should reduce the strain on the system. A lot can happen over decades. We should at least be clear on what this report actually says. It includes a 75-year projection. The shortfall of 23% grows to 29% by 2097. Demographics are actually one of the easiest things to project with reasonable accuracy. So, as far as reduced strain on the system from the demise of baby boomers goes, that's not what the report suggests. The problem with the report is it only is based on current known information. Any changes made would make this report invalid. Just one change to either the revenue side or expenditure side changes...
by DaufuskieNate
Sun Apr 02, 2023 11:09 am
Forum: Investing - Theory, News & General
Topic: Are Bogleheads rational about Social Security decisions?
Replies: 252
Views: 25907

Re: Are Bogleheads rational about Social Security decisions?

Tom_T wrote: Sun Apr 02, 2023 10:57 am Also, longer term... once all the baby boomers are gone (20-25 years more?), there will be far fewer people drawing benefits, so that should reduce the strain on the system. A lot can happen over decades.
We should at least be clear on what this report actually says. It includes a 75-year projection. The shortfall of 23% grows to 29% by 2097. Demographics are actually one of the easiest things to project with reasonable accuracy. So, as far as reduced strain on the system from the demise of baby boomers goes, that's not what the report suggests.