Search found 6228 matches

by avalpert
Fri Dec 01, 2017 6:57 pm
Forum: Investing - Theory, News & General
Topic: Bonds Are Riskier Than People Think
Replies: 137
Views: 11794

Re: Bonds Are Riskier Than People Think

Because I was annoyed that the poster said it was not an investment when by any reasonable definition of what an investment is,it is an investment.Thats all,now go write your book :D Ironically,the poster who made the statement is the same person who started that thread the other day where I told y...
by avalpert
Fri Dec 01, 2017 6:57 pm
Forum: Investing - Theory, News & General
Topic: Bonds Are Riskier Than People Think
Replies: 137
Views: 11794

Re: Bonds Are Riskier Than People Think

Because I was annoyed that the poster said it was not an investment when by any reasonable definition of what an investment is,it is an investment.Thats all,now go write your book :D A reasonable definition of an investment is where you put capital at risk with the expectation of future return - do...
by avalpert
Fri Dec 01, 2017 6:42 pm
Forum: Investing - Theory, News & General
Topic: Bonds Are Riskier Than People Think
Replies: 137
Views: 11794

Re: Bonds Are Riskier Than People Think

So I guess investing is now defined by whatever the person believes he is doing.I buy a cd and I am investing.You buy a cd and you are saving.I can actually live with that,but not with someone telling me that I am NOT investing if I buy a CD. I put a good amount of money in a 10 year cd paying 3.4 ...
by avalpert
Fri Dec 01, 2017 6:29 pm
Forum: Investing - Help with Personal Investments
Topic: I'm 100% international with VEU. Is this wise?
Replies: 57
Views: 3124

Re: I'm 100% international with VEU. Is this wise?

was bringing up 1999 supposed to be a warning about the risk of US valuations or a premonition that we are on the verge of another period of huge US outperformance? YES Yes to both? I don't pretend I can predict when market will turn, so I just focus on investing where i see the greatest value. Ove...
by avalpert
Fri Dec 01, 2017 6:24 pm
Forum: Personal Consumer Issues
Topic: Win Bigly - Scott Adams
Replies: 26
Views: 3687

Re: Win Bigly - Scott Adams

If you’re actually interested in persuasion, rather than in a sideways way of discussing politics in Bogleheads, Robert Cialdini’s “Influence” is probably the best current book on the topic. Dale Carnegie is a good place to start as well. While I too strongly recommend Cialdini's book you can hardl...
by avalpert
Fri Dec 01, 2017 6:00 pm
Forum: Investing - Theory, News & General
Topic: Bonds Are Riskier Than People Think
Replies: 137
Views: 11794

Re: Bonds Are Riskier Than People Think

Would you object to someone who didn't consider a savings account an investment? Now sure, a CD may offer a higher rate - but in what other ways is it distinguished from a savings account that it crosses a line from 'savings' to 'investment'? I would object. Would you call T-bills investments? 5-ye...
by avalpert
Fri Dec 01, 2017 5:48 pm
Forum: Investing - Theory, News & General
Topic: Bonds Are Riskier Than People Think
Replies: 137
Views: 11794

Re: Bonds Are Riskier Than People Think

Would you object to someone who didn't consider a savings account an investment? Now sure, a CD may offer a higher rate - but in what other ways is it distinguished from a savings account that it crosses a line from 'savings' to 'investment'? I would object. Would you call T-bills investments? 5-ye...
by avalpert
Fri Dec 01, 2017 5:41 pm
Forum: Investing - Help with Personal Investments
Topic: Should I include cash set aside for home purchase when computing asset allocation
Replies: 20
Views: 753

Re: Should I include cash set aside for home purchase when computing asset allocation

For my risk tolerance/need, I would like my AA to be about 60/40. I have a fairly large chunk sitting in cash that will be used to finance the construction of a new house over the next year or so. So, the question is whether that chunk of cash should be included in the overall portfolio when consid...
by avalpert
Fri Dec 01, 2017 5:32 pm
Forum: Investing - Theory, News & General
Topic: Bonds Are Riskier Than People Think
Replies: 137
Views: 11794

Re: Bonds Are Riskier Than People Think

We could argue that the poster who doesn't want the CD to be an investment is a person who does not hold the asset "with the hope that . . ." and does not hold the asset as "goods . . . used in the future to create wealth" therefore for him it is not an investment. I think that is what that poster ...
by avalpert
Fri Dec 01, 2017 5:15 pm
Forum: Investing - Help with Personal Investments
Topic: I'm 100% international with VEU. Is this wise?
Replies: 57
Views: 3124

Re: I'm 100% international with VEU. Is this wise?

panchilly wrote:
Fri Dec 01, 2017 4:20 pm
avalpert wrote:
Fri Dec 01, 2017 4:06 pm
was bringing up 1999 supposed to be a warning about the risk of US valuations or a premonition that we are on the verge of another period of huge US outperformance?
YES
Yes to both?
by avalpert
Fri Dec 01, 2017 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: The College Bubble - investment opportunities after the collapse?
Replies: 114
Views: 7689

Re: The College Bubble - investment opportunities after the collapse?

While we may very well be on the verge of a bursting bubble against college graduates (and education and knowledge in general), short of trying to guess which para-military group will pair with which reality star to offer the quickest pathways to leeching off of autocratic power I don't see investme...
by avalpert
Fri Dec 01, 2017 4:06 pm
Forum: Investing - Help with Personal Investments
Topic: I'm 100% international with VEU. Is this wise?
Replies: 57
Views: 3124

Re: I'm 100% international with VEU. Is this wise?

I find it real funny that folks think it is perfectly OK to have 100% of your stocks in US equities but accuse someone who is 100% international of being a gambler. US stocks haven't been this expensive since 1999/2000.. Look how that turned out. How it turned out is that US stocks outperformed non...
by avalpert
Fri Dec 01, 2017 3:37 pm
Forum: Investing - Theory, News & General
Topic: Amount You Need To Save Annually Over Lifespan
Replies: 80
Views: 8726

Re: Amount You Need To Save Annually Over Lifespan

Assuming the same contribution and linear growth it is a fairly straightforward math problem - but the assumptions involved are arbitrary and almost certainly wrong so the exercise is not a particularly helpful one.

What decision are you trying to make?
by avalpert
Fri Dec 01, 2017 2:01 pm
Forum: Investing - Help with Personal Investments
Topic: Is investing in the stock market just like investing in a house for appreciation?
Replies: 33
Views: 1284

Re: Is investing in the stock market just like investing in a house for appreciation?

do not think in terms of 'cash flow' vs 'capital gains' - just focus on total returns of the investment. That's a good point, so let's maybe try to simplify things. You have a large chunk of cash. What do you do with it? Consider 2 options: (1) put it in a stock index fund (or mixed with bonds), an...
by avalpert
Fri Dec 01, 2017 1:56 pm
Forum: Investing - Help with Personal Investments
Topic: I'm 100% international with VEU. Is this wise?
Replies: 57
Views: 3124

Re: I'm 100% international with VEU. Is this wise?

No, it isn't wise to exclude about 50% of the global market from your equity holdings - might it work out for you, sure, but it isn't wise.
by avalpert
Fri Dec 01, 2017 1:32 pm
Forum: Investing - Help with Personal Investments
Topic: Divs and Cap Gains are killing me
Replies: 96
Views: 7622

Re: Divs and Cap Gains are killing me

That was the initial reason to go with Wellesley - to have a fund that balances Bonds/Stocks - BUT it has 31% turnover The 31% turnover in Wellesley may not be a problem since the fund is 60% in bonds which typically don't generate a lot of capital gains. That's not typically true. Bond fund do lot...
by avalpert
Fri Dec 01, 2017 1:30 pm
Forum: Investing - Help with Personal Investments
Topic: Is investing in the stock market just like investing in a house for appreciation?
Replies: 33
Views: 1284

Re: Is investing in the stock market just like investing in a house for appreciation?

Is investing in the stock market just like investing in a house for appreciation? They are both investing for capital gains right? I mean there are obvious differences but I would like a different viewpoint on their similarities vs differences (but more so their similarities). No, they aren't simil...
by avalpert
Fri Dec 01, 2017 11:44 am
Forum: Investing - Help with Personal Investments
Topic: Investing for Cash Flow vs Capital Gains. Which one is better?
Replies: 6
Views: 590

Re: Investing for Cash Flow vs Capital Gains. Which one is better?

Investing for Cash Flow vs Capital Gains. Which one is better? To my understanding, investing for capital gains (e.g. in the stock market) is heavily taxed and passive income from cash flow investments is the least taxed income. This is incorrect - 'cash flow' is taxed as income at your marginal ra...
by avalpert
Fri Dec 01, 2017 10:21 am
Forum: Investing - Help with Personal Investments
Topic: Investing for Cash Flow vs Capital Gains. Which one is better?
Replies: 6
Views: 590

Re: Investing for Cash Flow vs Capital Gains. Which one is better?

Investing for Cash Flow vs Capital Gains. Which one is better? To my understanding, investing for capital gains (e.g. in the stock market) is heavily taxed and passive income from cash flow investments is the least taxed income. This is incorrect - 'cash flow' is taxed as income at your marginal ra...
by avalpert
Thu Nov 30, 2017 11:20 pm
Forum: Investing - Help with Personal Investments
Topic: retirement strategy
Replies: 24
Views: 2641

Re: retirement strategy

It sounds like you are talking about the difference between $1.1m in equities and $1.3m in equities - not sure the upside there would make all that much difference for you in the long run whereas the sequence of return risk could cause issues. I'm increasingly leaning towards starting retirement wit...
by avalpert
Thu Nov 30, 2017 10:24 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth via Solo 401k
Replies: 9
Views: 528

Re: Mega Backdoor Roth via Solo 401k

I can probably have my accountant handle the 1099 for me. Would just need to be on top of him/it like everything else he does. Who did you use online by the way? $2.90 mailed sounds very cheap. I use Tax1099.com . Perfect. So I could do it in the following year along with my 25% employer match afte...
by avalpert
Thu Nov 30, 2017 10:20 pm
Forum: Investing - Theory, News & General
Topic: Everyone, Even a Passive Vanguard Investor, is a Factor Investor (Alpha Architect/Jack Vogel, 11-30-17)
Replies: 39
Views: 1548

Re: Everyone, Even a Passive Vanguard Investor, is a Factor Investor (Alpha Architect/Jack Vogel, 11-30-17)

"Yes, simply investing in the market (i.e. the Sp500) is not really passive — this is a factor-investing bet." Boy do I hate it when people equivocate on the word 'passive' to try to imply that it is all the same type of bet in the end. Otherwise, nothing new here - I'm pretty sure everyone knows t...
by avalpert
Thu Nov 30, 2017 10:02 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth via Solo 401k
Replies: 9
Views: 528

Re: Mega Backdoor Roth via Solo 401k

I use discount solo 401k for my plan - they are well priced, were very responsive as we developed the plan and haven't been any trouble as we maintain it. I act as my own administrator, it isn't difficult or time consuming but you need to be comfortable taking on that responsibility for yourself. W...
by avalpert
Thu Nov 30, 2017 9:43 pm
Forum: Investing - Theory, News & General
Topic: Vanguard to launch US 'smart beta' ETFs - Will this board burn down?
Replies: 129
Views: 11301

Re: Vanguard to launch US 'smart beta' ETFs - Will this board burn down?

Did you listen to the audio? Would you expect an index fund to have Alpha? I wouldn’t. I would if I was suggesting that factors don't explain the performance of the funds - the lower ER gives it a performance advantage that would show up as alpha. Why would one expect that factors wouldn’t explain ...
by avalpert
Thu Nov 30, 2017 9:32 pm
Forum: Investing - Theory, News & General
Topic: Vanguard to launch US 'smart beta' ETFs - Will this board burn down?
Replies: 129
Views: 11301

Re: Vanguard to launch US 'smart beta' ETFs - Will this board burn down?

GreatOdinsRaven wrote:
Thu Nov 30, 2017 9:31 pm
Did you listen to the audio?

Would you expect an index fund to have Alpha? I wouldn’t.
I would if I was suggesting that factors don't explain the performance of the funds - the lower ER gives it a performance advantage that would show up as alpha.
by avalpert
Thu Nov 30, 2017 9:29 pm
Forum: Investing - Theory, News & General
Topic: Vanguard to launch US 'smart beta' ETFs - Will this board burn down?
Replies: 129
Views: 11301

Re: Vanguard to launch US 'smart beta' ETFs - Will this board burn down?

It's funny because MCV is an ad hoc way to get exposure to the size factor, so why not make the bet transparent and go SCV. I don't think MCV is an ad hoc way to get exposure to the size factor - it just depends on how much size exposure you want to get for about the same value exposure as SCV fund...
by avalpert
Thu Nov 30, 2017 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Lost my job; use part of emergency fund to pay down HELOC?
Replies: 20
Views: 1792

Re: Lost my job; use part of emergency fund to pay down HELOC?

I agree with others - right now is not the time to reduce your liquidity. Paying down the HELOC increase 'cash flow' because you reduced your assets on hand - it decreases flexibility, not increases it.

Hold on to the cash until your employment situation is clarified.
by avalpert
Thu Nov 30, 2017 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth via Solo 401k
Replies: 9
Views: 528

Re: Mega Backdoor Roth via Solo 401k

I use discount solo 401k for my plan - they are well priced, were very responsive as we developed the plan and haven't been any trouble as we maintain it. I act as my own administrator, it isn't difficult or time consuming but you need to be comfortable taking on that responsibility for yourself. W...
by avalpert
Thu Nov 30, 2017 8:22 pm
Forum: Investing - Theory, News & General
Topic: Which of these investments would you have wanted to hold?
Replies: 6
Views: 660

Re: Which if these investments would you have wanted to hold?

It looks like the yellow return series was the least nerve rattling. The magenta return series seems pretty scary. But guess what? All three charts depict the same thing. No, they don't. They may have the same overall characteristics in the end but since the X-axis is depicting sequence of time the...
by avalpert
Thu Nov 30, 2017 8:17 pm
Forum: Investing - Theory, News & General
Topic: Vanguard to launch US 'smart beta' ETFs - Will this board burn down?
Replies: 129
Views: 11301

Re: Vanguard to launch US 'smart beta' ETFs - Will this board burn down?

It's funny because MCV is an ad hoc way to get exposure to the size factor, so why not make the bet transparent and go SCV. I don't think MCV is an ad hoc way to get exposure to the size factor - it just depends on how much size exposure you want to get for about the same value exposure as SCV fund...
by avalpert
Thu Nov 30, 2017 5:25 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth via Solo 401k
Replies: 9
Views: 528

Re: Mega Backdoor Roth via Solo 401k

I use discount solo 401k for my plan - they are well priced, were very responsive as we developed the plan and haven't been any trouble as we maintain it. I act as my own administrator, it isn't difficult or time consuming but you need to be comfortable taking on that responsibility for yourself. Wh...
by avalpert
Thu Nov 30, 2017 4:36 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Contribution 2018
Replies: 28
Views: 1592

Re: 401k Contribution 2018

It's inferior? I guess I stand corrected. PS - I am rolling my eyes as I type this. I'm not sure what you are rolling your eyes at - the math is fairly straight forward. Really? Say I had $52,000 from a windfall and I wanted to invest it. Say I could either put it all in now or add $1,000 / week. I...
by avalpert
Thu Nov 30, 2017 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Contribution 2018
Replies: 28
Views: 1592

Re: 401k Contribution 2018

Don't be so sure about that. In the grand scheme of thing, majority of people are dollar cost averaging their retirement. No, in the grand scheme of things people lump sum smaller amounts when it becomes available - that isn't dollar cost averaging it is periodic investing and the financial industr...
by avalpert
Thu Nov 30, 2017 2:32 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Contribution 2018
Replies: 28
Views: 1592

Re: 401k Contribution 2018

It's inferior? I guess I stand corrected. PS - I am rolling my eyes as I type this. I'm not sure what you are rolling your eyes at - the math is fairly straight forward. Really? Say I had $52,000 from a windfall and I wanted to invest it. Say I could either put it all in now or add $1,000 / week. I...
by avalpert
Thu Nov 30, 2017 2:14 pm
Forum: Investing - Help with Personal Investments
Topic: Where to best set up 401k for Self Employed Contractor?
Replies: 8
Views: 261

Re: Where to best set up 401k for Self Employed Contractor?

For an individual 401k the employee contribution must be made before 12/31. That isn't true. If you are taxed as an S-Corp and paid a W2 it does have to be withheld from your paychecks within 2017 - but if you are a sole proprietor you have to elect the contribution in 2017 and then have until you ...
by avalpert
Thu Nov 30, 2017 1:36 pm
Forum: Investing - Help with Personal Investments
Topic: Decision Needed - How to Invest Rental Income?
Replies: 16
Views: 633

Re: Decision Needed - How to Invest Rental Income?

As others said, need more detail to provide a specific answer.

As a general response, do not treat your rental income any differently than you would any other cash inflows - what is the optimal way to deploy your cash will be true regardless of the source.
by avalpert
Thu Nov 30, 2017 1:31 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Contribution 2018
Replies: 28
Views: 1592

Re: 401k Contribution 2018

I imagine most people around here are a fan of dollar cost averaging. You imagine wrong - a quick search of the (many) past threads would show most to not be fans of DCA because it is inferior to lump sum investing. It's inferior? I guess I stand corrected. PS - I am rolling my eyes as I type this....
by avalpert
Thu Nov 30, 2017 1:27 pm
Forum: Investing - Theory, News & General
Topic: Mutual Funds and Taxation
Replies: 18
Views: 1120

Re: Mutual Funds and Taxation

What about capital gains/dividends in an IRA? I thought those aren't taxed? The context was taxable accounts. Distributions in an IRA are tax deferred and the tax is paid when the money is withdrawn from the IRA. Please don't think IRAs are not taxed. (Also be aware of required minimum distribuiton...
by avalpert
Thu Nov 30, 2017 1:05 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Contribution 2018
Replies: 28
Views: 1592

Re: 401k Contribution 2018

I imagine most people around here are a fan of dollar cost averaging. You imagine wrong - a quick search of the (many) past threads would show most to not be fans of DCA because it is inferior to lump sum investing. It's inferior? I guess I stand corrected. PS - I am rolling my eyes as I type this....
by avalpert
Thu Nov 30, 2017 12:53 pm
Forum: Investing - Help with Personal Investments
Topic: Best way to minimize taxes for sole proprietors (1099)?
Replies: 9
Views: 479

Re: Best way to minimize taxes for sole proprietors (1099)?

Anyone else have any input on the best way to minimize taxes for sole proprietors (1099)? The basics are there - if you don't have employees use a 401k plan to maximize the amount you can put away pre-tax and claim all legitimate business expenses. Anything else is likely having the tax tail waggin...
by avalpert
Thu Nov 30, 2017 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: Treatment of lump-sum for unused sick time
Replies: 10
Views: 861

Re: Treatment of lump-sum for unused sick time

It will almost certainly appear in Box 1 of your W2 and be treated as earned income - that is the correct treatment.
by avalpert
Thu Nov 30, 2017 12:35 pm
Forum: Investing - Theory, News & General
Topic: Mutual Funds and Taxation
Replies: 18
Views: 1120

Re: Mutual Funds and Taxation

Just to reinforce the above: There can be dividends which are always taxable (except for tax exempt investments) There can be capital gains distributions which are always taxable (even for tax exempt instruments) There can be capital gains incurred when then investor sells the investment which are ...
by avalpert
Thu Nov 30, 2017 12:31 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Contribution 2018
Replies: 28
Views: 1592

Re: 401k Contribution 2018

I've the options of contributing entire amount of $18,500 for 2018 towards 401k in lump sum in month of Jan or spread over 12 months. While contributing lump sum has advantage of longer growth period, spreading over 12 months supports the idea of dollar cost averaging. Please advise which method is...
by avalpert
Thu Nov 30, 2017 12:29 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Contribution 2018
Replies: 28
Views: 1592

Re: 401k Contribution 2018

MrNewEngland wrote:
Wed Nov 29, 2017 5:16 pm
I imagine most people around here are a fan of dollar cost averaging.
You imagine wrong - a quick search of the (many) past threads would show most to not be fans of DCA because it is inferior to lump sum investing.
by avalpert
Thu Nov 30, 2017 12:23 pm
Forum: Investing - Help with Personal Investments
Topic: Best way to minimize taxes for sole proprietors (1099)?
Replies: 9
Views: 479

Re: Best way to minimize taxes for sole proprietors (1099)?

Anyone else have any input on the best way to minimize taxes for sole proprietors (1099)? The basics are there - if you don't have employees use a 401k plan to maximize the amount you can put away pre-tax and claim all legitimate business expenses. Anything else is likely having the tax tail waggin...
by avalpert
Wed Nov 29, 2017 10:21 pm
Forum: Investing - Theory, News & General
Topic: Mutual Funds and Taxation
Replies: 18
Views: 1120

Re: Mutual Funds and Taxation

Dividends distributed in a taxable account are taxed whether you reinvest or not. If the fund manager sells shares and has a net gain, the fund is generally required to distribute that gain to the shareholders. That would be taxable. So how does the Mutual Fund work in general. Lets take an SP500 i...
by avalpert
Wed Nov 29, 2017 10:13 pm
Forum: Investing - Help with Personal Investments
Topic: Generating earned income for young kids IRA
Replies: 18
Views: 1650

Re: Generating earned income for young kids IRA

Anyone have any other ideas for generating earned income in a kids name? ... I'm talking exclusively about kids too young to have a functional skill worth charging for. ... It's about finding a way to give a kid a head start on saving before they could be expected to have any interest or capability...
by avalpert
Wed Nov 29, 2017 9:21 pm
Forum: Personal Consumer Issues
Topic: Luggage Update for Travel
Replies: 73
Views: 3929

Re: Luggage Update for Travel

I fail to see what the big deal is about checking a bag. I've never had one lost in dozens of business trips, and in most cases,it only takes an extra 5 minutes or so to retrieve. I didn’t mind checking bags until a trip last winter. My bag was misplaced on a direct flight from Newark to Cayman Isl...
by avalpert
Wed Nov 29, 2017 5:01 pm
Forum: Investing - Theory, News & General
Topic: Vanguard to launch US 'smart beta' ETFs - Will this board burn down?
Replies: 129
Views: 11301

Re: Vanguard to launch US 'smart beta' ETFs - Will this board burn down?

Wouldn't we need to see substantial outperformance of value or any of these factors due to the crowding before the underperformance? Have we seen that yet? I thought the out performance was prior to Fama-French. I believe he is suggesting you should see out performance as demand kicks up with the p...