Search found 123 matches

by printer
Wed Jul 11, 2018 12:36 pm
Forum: Investing - Theory, News & General
Topic: US Treasuries vs Munis in taxable
Replies: 23
Views: 5838

Re: US Treasuries vs Munis in taxable

You could ask a different question: why not both in taxable?
by printer
Tue Jun 12, 2018 4:02 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: What Makes Factors Endure
Replies: 60
Views: 5026

Re: Larry Swedroe: What Makes Factors Endure

Nice article. I'm a big fan of having objective criteria to define factors. I think what has been done here (a while back, at least as far back as one of Larry's books) to define criteria is really valuable. I'm also a fan of being able to debate and refine the criteria - that is a key part of the s...
by printer
Tue Mar 06, 2018 3:10 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe’s New Book Available: Reducing Risk Of Black Swans
Replies: 130
Views: 17815

Re: Larry Swedroe’s New Book Available: Reducing Risk Of Black Swans

I am mystified as to why this forum seems to worship Swedroe when he is continually changing course and recommending new portfolios that are supposed to give the investor some advantage. The portfolios are based on academic research which is, in turn, always based on backtesting, since no one can r...
by printer
Mon Feb 26, 2018 4:50 pm
Forum: Investing - Theory, News & General
Topic: What exactly happened in Japan...and can it happen here?
Replies: 52
Views: 11622

Re: What exactly happened in Japan...and can it happen here?

It depends what "it" is. If "it" is, "exactly the same thing that happened in Japan happens here" - that asking whether it can happen here is a good question. I think there's useful insight to be gained by looking into this, and I don't know the answers. But to me this question isn't the main questi...
by printer
Sat Jan 20, 2018 2:40 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Lessons From 2017
Replies: 26
Views: 6245

Re: Larry Swedroe: Lessons From 2017

I’ve been struggling with this Peter Lynch quote from the end of the last article for the last year or so as I’ve been taking risk off the table. “Far more money has been lost by investors in preparing for corrections, or anticipating corrections, than has been lost in the corrections themselves.” ...
by printer
Fri Jan 05, 2018 10:45 pm
Forum: Investing - Theory, News & General
Topic: international: low ER, low TCR, but not both
Replies: 21
Views: 1462

Re: international: low ER, low TCR, but not both

There is a good reason for higher-expense funds to have lower tax costs; the expense comes out of the dividend, which would be taxable otherwise. You can see this with different share classes of the same fund, such as Vanguard's Investor and Admiral shares. .. Thank you! I learned something new. Ma...
by printer
Fri Jan 05, 2018 4:49 pm
Forum: Investing - Theory, News & General
Topic: international: low ER, low TCR, but not both
Replies: 21
Views: 1462

Re: international: low ER, low TCR, but not both

The computations in the spreadsheet were originally done by a PhD scientist, and adapted to spreadsheet form and publicized by a PhD-in-training scientist. I think we have a handle what the scientific method is. :P I don't see the value in the experiment though, given that I already showed for the ...
by printer
Fri Jan 05, 2018 4:40 pm
Forum: Investing - Theory, News & General
Topic: international: low ER, low TCR, but not both
Replies: 21
Views: 1462

Re: international: low ER, low TCR, but not both

The international funds that I'm most interested in at the moment are: VT, VXUS, VEA, SPDW, IDEV, SCHF, IEFA, FTIPX, VEU, ACWX, CWI, FSIVX, DIISX. (I'm interested in complementing IEMG and a prospective future international small cap value fund that currently does not exist.) The domestic funds tha...
by printer
Fri Jan 05, 2018 4:39 pm
Forum: Investing - Theory, News & General
Topic: international: low ER, low TCR, but not both
Replies: 21
Views: 1462

Re: international: low ER, low TCR, but not both

The value is that the result of the experiment may not be what you think it will be, and, doing the experiment, or at least being open to it, may give you a way to find problems in the calculations, ways to improve them, and insight about them. https://sciencing.com/testable-prediction-8646215.html ...
by printer
Fri Jan 05, 2018 4:05 pm
Forum: Investing - Theory, News & General
Topic: international: low ER, low TCR, but not both
Replies: 21
Views: 1462

Re: international: low ER, low TCR, but not both

If the tax cost ratio comes from morningstar, then you are wasting your time because that number is bogus. Plus don't forget about a foreign tax credit if it applies. Check out https://www.bogleheads.org/forum/viewtopic.php?t=208818 for more information. Thanks, I'd seen that thread before. Those c...
by printer
Fri Jan 05, 2018 3:22 pm
Forum: Investing - Theory, News & General
Topic: international: low ER, low TCR, but not both
Replies: 21
Views: 1462

Re: international: low ER, low TCR, but not both

If the tax cost ratio comes from morningstar, then you are wasting your time because that number is bogus. Plus don't forget about a foreign tax credit if it applies. Check out https://www.bogleheads.org/forum/viewtopic.php?t=208818 for more information. Thanks, I'd seen that thread before. Those c...
by printer
Fri Jan 05, 2018 1:51 pm
Forum: Investing - Theory, News & General
Topic: international: low ER, low TCR, but not both
Replies: 21
Views: 1462

Re: international: low ER, low TCR, but not both

My own choices after endless study: Taxable: VT covers the entire world including Emerging Markets Tax free status (individual is not liable for taxes anywhere in the world): 90% IWDA, 10% EIMI (both accumulative, World Developed and Emerging Markets). VWRD covers similarly but I did not want the n...
by printer
Fri Jan 05, 2018 1:48 pm
Forum: Investing - Theory, News & General
Topic: international: low ER, low TCR, but not both
Replies: 21
Views: 1462

Re: international: low ER, low TCR, but not both

If the tax cost ratio comes from morningstar, then you are wasting your time because that number is bogus. Plus don't forget about a foreign tax credit if it applies. Check out https://www.bogleheads.org/forum/viewtopic.php?t=208818 for more information. Thanks, I'd seen that thread before. Those c...
by printer
Fri Jan 05, 2018 6:02 am
Forum: Investing - Theory, News & General
Topic: international: low ER, low TCR, but not both
Replies: 21
Views: 1462

international: low ER, low TCR, but not both

In a nutshell, I'm looking for a total market international fund for a taxable account. I'm interested in what I've previously called "ET" - expense ratio plus tax cost ratio. I looked at about 30 candidate funds. As far as I can tell, some of these funds have roughly the lowest ER in the group, and...
by printer
Tue Oct 03, 2017 2:58 am
Forum: Investing - Theory, News & General
Topic: "Indexing Can Capture Small-Cap Premiums"
Replies: 16
Views: 3163

Re: "Indexing Can Capture Small-Cap Premiums"

My understanding is that the factors explain something like 95% or so or the market return. It seemed like CAPM explained something like 2/3 or so. That sounds about right. And the math is pretty solid. However, just explaining investment returns is only part of the issue. The hard part is showing ...
by printer
Sat May 27, 2017 4:29 am
Forum: Investing - Theory, News & General
Topic: Eliminating Single Positions and Moving to Index Fund
Replies: 28
Views: 4636

Re: Eliminating Single Positions and Moving to Index Fund

1. If, after selling, have you won the game? If so then you might want to sell. 2. I'd be less concerned about how many stocks I have than my stock/bond asset allocation (what % in stocks, what % in bonds, what % in other). 3. Are you comfortable with the current asset allocation, or are you trying ...
by printer
Sun Apr 23, 2017 1:22 am
Forum: Investing - Theory, News & General
Topic: How inefficient is it to hold Total Bond Index in a taxable account?
Replies: 40
Views: 7453

Re: How inefficient is it to hold Total Bond Index in a taxable account?

This is what I do too, not only because of tax, but also because of some possibility of diversification. Historically, for example, VWITX (Vanguard Intermediate-Term Tax-Exempt Fund) behaved at times differently than a total bond market fund such as VBMFX (Vanguard Total Bond Market Index). Although...
by printer
Sun Apr 23, 2017 1:03 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe says "Goodbye."
Replies: 445
Views: 68394

Re: Larry Swedroe says "Goodby."

Larry, I feel that you noticeably raised the quality of discussion in these forums, in many ways, through many effects. It was great being able to talk to someone who knows what they are doing, and you leave in your posts a great resource for people to learn from, to add to your books, articles, etc...
by printer
Wed Mar 08, 2017 6:33 pm
Forum: Investing - Theory, News & General
Topic: selling RSU immediately
Replies: 40
Views: 8193

Re: selling RSU immediately

Theoretical wrote:You're not allowed to short a stock you own long. If you want to do a short-term hedging position, you'd buy an inverse sector ETF or short the ETF for the sector your company's operating in.
Is having unvested RSUs considered "owning" for this purpose?
by printer
Wed Mar 08, 2017 6:29 pm
Forum: Investing - Theory, News & General
Topic: selling RSU immediately
Replies: 40
Views: 8193

Re: selling RSU immediately

If you think you should sell upon vesting, and the reason is to increase diversification (reduce risk), I wonder if you should consider shorting the stock when you receive the RSU grant, and then closing the short (and selling the vested shares) when the vesting occurs. This creates a new risk, thou...
by printer
Thu Feb 23, 2017 3:48 pm
Forum: Investing - Theory, News & General
Topic: behavior and bogleheads wiki page on passively owning individual stocks
Replies: 10
Views: 1451

Re: behavior and bogleheads wiki page on passively owning individual stocks

Thanks for responding. It helps me better understand the motivation of the people working on the wiki page. As for this wiki page, I have a few recommendations: (1) Consider what standard you want to use. For example, you could use a standard similar to what wkipedia uses. Specifically, when authori...
by printer
Wed Feb 22, 2017 1:26 pm
Forum: Investing - Theory, News & General
Topic: behavior and bogleheads wiki page on passively owning individual stocks
Replies: 10
Views: 1451

Re: behavior and bogleheads wiki page on passively owning individual stocks

Hmm. Where is the evidence that owning individual stocks makes one more subject to behavioral errors than owning index funds? Shouldn't the wiki page cite something if it is going to make that claim? Also, if that is actually the case, then I'd also expect that slicing and dicing is more subject to ...
by printer
Wed Feb 22, 2017 1:28 am
Forum: Investing - Theory, News & General
Topic: behavior and bogleheads wiki page on passively owning individual stocks
Replies: 10
Views: 1451

behavior and bogleheads wiki page on passively owning individual stocks

The https://www.bogleheads.org/wiki/Passively_managing_individual_stocks wiki page says: empirical studies have shown that individual investors exhibit multiple behavioral errors that result in poor performance. and Owning individual stocks instead of an index fund is kind of like seeing how the pro...
by printer
Thu Feb 16, 2017 12:14 am
Forum: Investing - Theory, News & General
Topic: Flat or sublinear fund expense instead of percentage
Replies: 9
Views: 1119

Flat or sublinear fund expense instead of percentage

Dear Vanguard, Similar to paying a financial advisor a flat fee for professional advice, would it make sense, at least for some funds, for Vanguard to have the annual fee* be flat or something sublinear in the amount managed, rather than a percentage? Does Vanguard strive to follow the following ten...
by printer
Wed Feb 15, 2017 10:45 pm
Forum: Investing - Theory, News & General
Topic: Iceland triggering second thoughts on foreign bonds?
Replies: 42
Views: 5843

Re: Iceland triggering second thoughts on foreign bonds?

... I'm suspicious of arguments that the US is special, that what can happen in other countries cannot happen in the US, that there is no diversification benefit to US citizens holding non-US bonds because US treasuries are riskless , that there is anything that is actually riskless. The risk free ...
by printer
Sat Jan 21, 2017 10:48 am
Forum: Investing - Theory, News & General
Topic: Replicating Index with Individual Stocks vs Index Fund
Replies: 28
Views: 4194

Re: Replicating Index with Individual Stocks vs Index Fund

A fairer comparison is to consider net real outcomes, and funds have a distinct disadvantage. A " High Bracket Investors Should Avoid Mutual Funds And ETFs " article by Phil DeMuth (Apr 25, 2016) notes Mutual funds and ETFs cannot pass along their internal losses to shareholders. Shareholders get t...
by printer
Mon Jan 02, 2017 3:22 am
Forum: Investing - Theory, News & General
Topic: Diversifying SCV with MTUM: yea or nay?
Replies: 29
Views: 3495

Re: Diversifying SCV with MTUM: yea or nay?

IJS and VIOV have momentum loading near zero, according to portfoliovisualizer.com with its default settings. My meager understanding: some funds make an attempt to be momentum-neutral even when momentum is not the primary aim of the fund. This happens with some value funds for example - if somethin...
by printer
Sun Jan 01, 2017 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: Delayed Gratification In Life & its fallacies
Replies: 56
Views: 7343

Re: Delayed Gratification In Life & its fallacies

Frugal = spending only on things that make you happy.
by printer
Thu Dec 29, 2016 11:48 pm
Forum: Investing - Theory, News & General
Topic: What am I missing w/this back-tested asset allocation?
Replies: 72
Views: 7477

Re: What am I missing w/this back-tested asset allocation?

Part of what Taylor is pointing out is that you may be able to reduce the number of funds - a simplification of sorts - while not materially changing the portfolio's underlying assets. You can look at how much of your total bond market fund (say VBTLX) is in long term treasuries (and how it will loo...
by printer
Wed Jun 22, 2016 2:55 am
Forum: Investing - Theory, News & General
Topic: Has market volatility increased?
Replies: 5
Views: 1022

Re: Has market volatility increased?

Is there an accepted explanation for why daily volatility increased?
by printer
Tue Jun 14, 2016 12:18 pm
Forum: Investing - Theory, News & General
Topic: Iceland triggering second thoughts on foreign bonds?
Replies: 42
Views: 5843

Re: Iceland triggering second thoughts on foreign bonds?

Iceland is broke--they can't pay it back. To me, international bonds make no sense (aside from a couple of isolated countries like the UK). Personally, I am suspicious of foreign sovereign debt. Niall Ferguson wrote an excellent book called "The Cash Nexus" and he explains a few things about foreig...
by printer
Tue Jun 14, 2016 12:59 am
Forum: Investing - Theory, News & General
Topic: Iceland triggering second thoughts on foreign bonds?
Replies: 42
Views: 5843

Re: Iceland triggering second thoughts on foreign bonds?

When I saw the title of the thread and the first few words of the OP, I thought it was an argument for investing in foreign bonds, i.e., if you live in Iceland, you might be glad you did, and if it can happen there, it can happen anywhere.
by printer
Sun May 29, 2016 5:08 pm
Forum: Investing - Theory, News & General
Topic: How much do costs matter?
Replies: 25
Views: 3070

Re: How much do costs matter?

When I come across two funds that are otherwise indistinguishable, for taxable accounts, I choose the one with the lower ET (expense ratio plus tax cost ratio). Of course, this never happens. Two particular funds are always different. But ET is one of the things I look at when deciding which funds t...
by printer
Sun May 29, 2016 1:45 am
Forum: Investing - Theory, News & General
Topic: Got a Question for Jack Bogle? Post it Here.
Replies: 88
Views: 17513

Re: Got a Question for Jack Bogle? Post it Here.

If you were going to construct one or more global total stock market funds that does not use market-cap weighting, perhaps at Vanguard, what weighting system would you choose?
by printer
Sun May 29, 2016 12:50 am
Forum: Investing - Theory, News & General
Topic: Retiree feelings about nest egg
Replies: 36
Views: 8265

Retiree feelings about nest egg

For those that have retired: when you think about living off your nest egg, how does it feel, for you? Your savings go up, your savings go down, you spend money, maybe you obtain some additional funds to invest, some time goes by - it seems to me that this could feel very different after retirement ...
by printer
Thu Apr 21, 2016 4:34 pm
Forum: Investing - Theory, News & General
Topic: If past performance doesn't indicate future performance, why buy stocks?
Replies: 43
Views: 5473

Re: If past performance doesn't indicate future performance, why buy stocks?

I really like the OPs question. I'm confident that past performance is a big factor in why people buy stocks at all, e.g., as an asset class. I see the idea, "The future doesn't necessarily look like the past" as being a good heuristic to keep in mind. That doesn't mean it's good to make this heuris...
by printer
Wed Apr 13, 2016 2:49 am
Forum: Investing - Theory, News & General
Topic: Rebalancing in a taxable account isn't so simple
Replies: 77
Views: 16132

Re: Rebalancing in a taxable account isn't so simple

This might be one place where a roboadvisor could really help. If you have both a taxable account and a non-taxable account, one thing you may be able to do is mirror portions of your taxable account in a non-taxable account. Then, for rebalancing, you can get some of the benefit by rebalancing in t...
by printer
Thu Mar 10, 2016 2:44 am
Forum: Investing - Theory, News & General
Topic: New Yorker: Is Passive Investing Actively Hurting the Economy?
Replies: 36
Views: 7363

Re: New Yorker: Is Passive Investing Actively Hurting the Economy?

I think it's a valid question and it's one I've asked myself. I wonder, though. If too many people are investing passively, then maybe you should invest actively. If too many people are investing actively, then maybe you should invest actively. This might not work under all conditions but it may wor...
by printer
Sun Feb 21, 2016 11:09 pm
Forum: Investing - Theory, News & General
Topic: When does the long term start?
Replies: 59
Views: 11157

Re: When does the long term start?

he implicitly equates estimating a probability distribution via sampling, with the probability distribution itself. This seems hard to avoid altogether. might the S&P 500 go down next week and never again reach today's level? Because it never happened in the past, arguing in terms of probabilities ...
by printer
Sat Feb 20, 2016 7:03 pm
Forum: Investing - Theory, News & General
Topic: When does the long term start?
Replies: 59
Views: 11157

Re: When does the long term start?

Regarding http://mathieu.bouville.name/finance/when-does-long-term-start/ : I like a lot of the article. Figure 1, for example, reflects some thinking that is very similar to a way that I think about expected return and risk. Take some period (he took 1871-2015), look at 5 year periods, compute some...
by printer
Wed Feb 10, 2016 9:43 pm
Forum: Investing - Theory, News & General
Topic: A look at the small cap premium
Replies: 58
Views: 7712

Re: A look at the small cap premium

Hi Larry, I wasn't questioning whether the small cap premium exists. What I was asking about is the logic in the article. If the logic is, "People used the wrong benchmark, and they should use CRSP6-10" then this raises the question of why. When discussing benchmarks, the article uses words like "su...
by printer
Wed Feb 10, 2016 4:49 pm
Forum: Investing - Theory, News & General
Topic: A look at the small cap premium
Replies: 58
Views: 7712

Re: A look at the small cap premium

Larry, how did you convince yourself that you are not cherry picking data to look for trends? For example, someone skeptical in the spirit of the skepticism you mention in the article might ask why you picked CRSP 6-10 to look at, and not CRSP 9-10 or CRSP-10 (if it exists).
by printer
Sat Feb 06, 2016 12:09 pm
Forum: Investing - Theory, News & General
Topic: Ben Carlson on Individual vs. Institutional Investing
Replies: 2
Views: 814

Re: Ben Carlson on Individual vs. Institutional Investing

Another advantage for individuals is that they can buy things with relatively small total asset values, whereas for an investor with more capital like Warren Buffett, buying one of those assets would not affect overall returns. Buffett is quoted as saying something like if he had only $1M to invest ...
by printer
Sat Feb 06, 2016 12:00 pm
Forum: Investing - Theory, News & General
Topic: Asset location strategies for taxes are OK; but not great
Replies: 75
Views: 11011

Re: Asset location strategies for taxes are OK; but not great

I feel like I'm pretty naive about this and could be making a significant mistake, but when I looked at this a few years ago, there were so many complicating factors and uncertainty about future life circumstances that I wasn't sure what the optimal taxable/non-taxable locations were. So, I decided ...
by printer
Sun Jan 31, 2016 2:36 am
Forum: Investing - Theory, News & General
Topic: Equal weight index funds
Replies: 75
Views: 17068

Re: Equal weight index funds

"Beyond Cap Weight: The Empirical Evidence For a Diversified Beta" By Rob Arnott, Vitali Kalesnik, Paul Moghtader and Craig Scholl Journal of Indexes, January/February 2010 https://www.researchaffiliates.com/Production%20content%20library/JOI_Jan_Feb_2010_Beyond_Cap_Weight_The_Empirical_Evidence_for...
by printer
Fri Jan 29, 2016 5:42 pm
Forum: Investing - Theory, News & General
Topic: Regret of selling winning stocks early
Replies: 65
Views: 11336

Re: Regret of selling winning stocks early

There are a lot of ways to think about it. Regret is only one. Another is that you could have used the proceeds to invest in a company that went up 100x in the same period. Do you regret not doing that, too?
by printer
Tue Jan 26, 2016 12:56 am
Forum: Investing - Theory, News & General
Topic: is it time to raise cash
Replies: 3
Views: 1566

Re: is it time to raise cash

1. The time to buy something is before the other people with cash start bidding the price of the thing up.

2. If someone's assets are x% stock and (100-x)% cash, and stocks tank, then cash holdings rise as a percentage of assets.
by printer
Sun Jan 03, 2016 5:48 am
Forum: Investing - Theory, News & General
Topic: Lump Sum vs Dollar Cost Averaging
Replies: 9
Views: 1429

Re: Lump Sum vs Dollar Cost Averaging

This is a false choice. You can do both: put half in now, and DCA the rest. That might make you feel better. Or it might make you feel worse.
by printer
Sun Jan 03, 2016 5:44 am
Forum: Investing - Theory, News & General
Topic: Any point to Tax-gain harvest...
Replies: 3
Views: 620

Re: Any point to Tax-gain harvest...

I think the #1 reason is simply that you want the money for something else, e.g., rebalancing. You could give some of the gain to charity. I believe that you can do this without being taxed on the gain, and deduct the donation. I'm not sure if you get the full deduction. If you have more unmatched l...
by printer
Fri Jan 01, 2016 3:32 pm
Forum: Investing - Theory, News & General
Topic: why indexing wins
Replies: 18
Views: 3739

Re: why indexing wins

Larry, given the n stocks in the TSM, do the corresponding n returns in a given year behave as though they sample a normal distribution? A normal distribution is expected when the result is a sum of many small, nearly-independent events. But stock gains are not the result of small events; some stoc...