Search found 211 matches

by Dominic
Wed Apr 26, 2017 3:16 pm
Forum: Personal Investments
Topic: Fed and newbie boglehead seeking portfolio advice
Replies: 17
Views: 2107

Re: Fed and newbie boglehead seeking portfolio advice

Then fill up the TSP with a 4 to 1 ratio of S fund to C fund (round towards the C fund). This combination is more-or-less US Total Stock Market. I think you may mean 4 to 1 ratio of C fund to S fund. C is the S&P500 and S is the DJ completion index. My bad. I thought S for S&P and C for completion ...
by Dominic
Tue Apr 25, 2017 10:55 pm
Forum: Personal Investments
Topic: Fed and newbie boglehead seeking portfolio advice
Replies: 17
Views: 2107

Re: Fed and newbie boglehead seeking portfolio advice

EDIT: I changed things because the I fund is very incomplete (it is missing small caps and also missing emerging markets). Whoops. Firstly, the G Fund is quite possibly the best thing ever. It has the returns of long term Treasuries with the risk of a money market account. A free lunch, so to speak....
by Dominic
Tue Apr 25, 2017 7:28 pm
Forum: Personal Investments
Topic: Does Portfolio Size Influence Stock/Bond Allocation?
Replies: 43
Views: 6434

Re: Does Portfolio Size Influence Stock/Bond Allocation?

The only real reason I can see portfolio size influencing asset allocation is taxes. Qualified dividends and long term capital gains have favorable tax treatment. Bond dividends (excluding munis, which are only a small piece of the universe of bonds) are taxed at regular/higher rates. At that point,...
by Dominic
Tue Apr 25, 2017 7:20 pm
Forum: Personal Investments
Topic: Diversification of IRA
Replies: 5
Views: 677

Re: Diversification of IRA

The LifeStrategy family of funds are actually hold (4) underlying funds: Total US Stock, Total International Stock, Total US bond and Total International bond. So you are fully diversified across the whole world's stocks and bonds in one "wrapper". This. You're already extremely diversified with a ...
by Dominic
Sun Apr 23, 2017 11:17 pm
Forum: US Chapters
Topic: The next generation of Boglehead authors
Replies: 41
Views: 6936

Re: The next generation of Boglehead authors

How about William Bernstein who wrote a book specifically for millennials (but can be enjoyed by anyone really) called "If You Can. How Millennials Can Get Rich Slowly" and then gave it away for free here: http://www.etf.com/docs/IfYouCan.pdf Someone did excellent threads on Dr. Bill Bernstein's ea...
by Dominic
Sun Apr 23, 2017 10:56 pm
Forum: Personal Consumer Issues
Topic: Aftermarket batteries for cordless tools?
Replies: 10
Views: 6579

Re: Aftermarket batteries for cordless tools?

A battery is a battery unless it explodes. Seriously- the problem with the battery-powered skateboards was fires caused by apparently poor-quality batteries. The Samsung Note fires were caused by poor battery design. There have been a few isolated cases of iPhone fires, caused by aftermarket charge...
by Dominic
Sun Apr 23, 2017 10:53 pm
Forum: US Chapters
Topic: The next generation of Boglehead authors
Replies: 41
Views: 6936

Re: The next generation of Boglehead authors

With the exception of slight legal and structural changes (i.e. the rise of ETFs and minor changes in taxation), investing is fundamentally the same today as it has always been. The classics still work. As a member of what might be called the next generation of Boglehead readers, I'm perfectly conte...
by Dominic
Sat Apr 22, 2017 11:16 am
Forum: Investing - Theory, News & General
Topic: Ally Bank Just Raised 5yr CD to 2.25%
Replies: 28
Views: 5388

Re: Ally Bank Just Raised 5yr CD to 2.25%

ribonucleic wrote:Nice.

I hope they follow suit with their Online Savings account. 1.00% isn't as competitive as it used to be.
They quietly raised the savings interest rate to 1.05% at some point in the last couple days.
by Dominic
Fri Apr 21, 2017 11:55 am
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 430
Views: 47378

Re: I don't understand the case for EE bonds

There has yet to be a 15-year period where stocks have lost money, but it's not impossible for it to happen in the future. Based on data in our Simba backtest spreadsheet, US stocks had a cumulative real return of -5% over the 17-year period 1965-1981 (inclusive). Of course that high-inflation peri...
by Dominic
Thu Apr 20, 2017 8:48 pm
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 430
Views: 47378

Re: I don't understand the case for EE bonds

There has yet to be a 15-year period where stocks have lost money, but it's not impossible for it to happen in the future. Based on data in our Simba backtest spreadsheet, US stocks had a cumulative real return of -5% over the 17-year period 1965-1981 (inclusive). Of course that high-inflation peri...
by Dominic
Thu Apr 20, 2017 6:49 pm
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 430
Views: 47378

Re: I don't understand the case for EE bonds

There has yet to be a 15-year period where stocks have lost money, but it's not impossible for it to happen in the future. It's even more possible for them to return below 3.5% nominally. EE bonds guarantee that return for 20 years, and are also state-tax free. The coupons are tax-deferred at the fe...
by Dominic
Wed Apr 19, 2017 8:47 pm
Forum: Investing - Theory, News & General
Topic: Those that hold international equities at market-cap weight: what is your method?
Replies: 24
Views: 4269

Re: Those that hold international equities at market-cap weight: what is your method?

I have a question regarding Vanguard Total World Stock. This fund holds only 7774 equities. Vanguard Total Stock Market holds 3601, and Vanguard Total International Stock Market holds 6172. Does anyone know what the Total World Stock fund's index excludes? (It tracks an all-cap index.) I did some de...
by Dominic
Wed Apr 19, 2017 9:51 am
Forum: Investing - Theory, News & General
Topic: Article-Argument against Buffet and Bogle's International Advice
Replies: 36
Views: 5357

Re: Article-Argument against Buffet and Bogle's International Advice

I just float along using Vanguard Total World. As of the end of last month, it was US 53.3%, the rest International. That number moves a fraction up/down each month. I never worry about market timing or rebalancing. :beer Which is a record high for the US % going by the MSCI All-World index and mor...
by Dominic
Tue Apr 18, 2017 10:17 pm
Forum: Personal Investments
Topic: Which bond funds/ETFs should I add to my portfolio?
Replies: 20
Views: 2604

Re: Which bond funds/ETFs should I add to my portfolio?

Any advice on TIPS? For US bonds, I am considering either TIPS or BND or a combination of both. TIPS in combination with Total Bond if your portfolio is bond-heavy (I'd say this is somewhere around a 60/40 equity/fixed income split). Otherwise, BND is sufficient. Vanguard offers Total International...
by Dominic
Mon Apr 17, 2017 10:36 pm
Forum: Personal Investments
Topic: Opinion on Vanguard Energy (VGENX)
Replies: 18
Views: 3021

Re: Opinion on Vanguard Energy (VGENX)

jebmke wrote:for that amount, at his age I would just consolidate it all in Total Market Index.
I'd consolidate but also add an international allocation around 20-40%.
by Dominic
Mon Apr 17, 2017 7:16 pm
Forum: Investing - Theory, News & General
Topic: Is all the money flowing into index funds bad?
Replies: 21
Views: 3767

Re: Is all the money flowing into index funds bad?

It's flowing out of active funds into index funds, so prices shouldn't change significantly. Overall, the market is going to be fine, and index investors will be fine. There will be enough arbitrage to keep the market efficient, and the rest of us will take market returns and perform better than ave...
by Dominic
Mon Apr 17, 2017 4:53 pm
Forum: Investing - Theory, News & General
Topic: comparing total returns of vfinx and avisx from inception date of 8/31/76
Replies: 6
Views: 837

Re: comparing total returns of vfinx and avisx from inception date of 8/31/76

Thank you oldzey. I wonder if the commission of 5 3/4 % was included. The only thing I can say is the future returns MAY favor VFINX. Looking at the edge of the graph, I'm fairly sure that it does not include the commission. Everything starts from an even $10,000. Vanguard will likely outperform. L...
by Dominic
Mon Apr 17, 2017 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: Ally 1 Day Transfer
Replies: 40
Views: 9744

Re: Ally 1 Day Transfer

Superorb wrote:Is Ally a hard or soft pull to open? I recently opened an Alliant CU account which has 1day transfers too, but their cutoff is 12:00 noon Central Time so 11am for me in Denver.
I opened my first Ally accounts (checking and savings) last June and no hard pull was made.
by Dominic
Mon Apr 17, 2017 4:26 pm
Forum: Investing - Theory, News & General
Topic: Is it necessary to diversify across Factors?
Replies: 126
Views: 10204

Re: Is it necessary to diversify across Factors?

Again, I reiterate, this discussion is mainly academic, with little practical value for most people. A typical 401k just doesn't give you a realistic chance to engage in figment investing. I enjoy the occasional academic discussion. Please don't spoil this one. Not every debate has to cater to the ...
by Dominic
Mon Apr 17, 2017 1:08 pm
Forum: Investing - Theory, News & General
Topic: "Yield surge: Remember the real role of bonds"
Replies: 14
Views: 2550

Re: "Yield surge: Remember the real role of bonds"

The market knows that the Fed is planning to raise the federal funds rate this year. So a lot of the yield change should already be in place.
by Dominic
Mon Apr 17, 2017 9:15 am
Forum: Investing - Theory, News & General
Topic: Chase.com - Anybody having issues?
Replies: 14
Views: 3330

Re: Chase.com - Anybody having issues?

If the virus scan comes up clean, but Chase still doesn't work, try a different browser. If the other browser works, clear your cache in your primary browser.

I had this issue in Firefox before and clearing the cache fixed it.
by Dominic
Sat Apr 15, 2017 8:22 am
Forum: Personal Investments
Topic: Best for Scottrade transfer?
Replies: 14
Views: 2917

Re: Best for Scottrade transfer?

I haven't heard any news since the original announcement of the acquisition/merger. I am wondering if they intend to operate as a single firm or whether they plan to keep both names active. I may be looking for a broker if I don't like what the new firm looks like and their policies. Last I saw, th...
by Dominic
Fri Apr 14, 2017 10:57 pm
Forum: Investing - Theory, News & General
Topic: Investing question
Replies: 16
Views: 1517

Re: Investing question

Thanks for all the replys. I agree with international diversification especially equities . From what I've read US investors should stay away from international bonds, not sure exactly why, currency risk perhaps, any thoughts on this? Currency risk depends on the fund. Vanguard's international bond...
by Dominic
Fri Apr 14, 2017 5:03 pm
Forum: Investing - Theory, News & General
Topic: Investing question
Replies: 16
Views: 1517

Re: Investing question

Japan's total stock market has been stagnant even after adding dividends. However, Japanese investors whose portfolios were diversified with Japanese stocks, international stocks, and bonds made returns. Even if America is the next Japan (and there's no real reason to fear that), the 3 fund portfoli...
by Dominic
Fri Apr 14, 2017 11:34 am
Forum: Personal Investments
Topic: Best 2050 Target Date Fund
Replies: 20
Views: 3123

Re: Best 2050 Target Date Fund

Vanguard = Fidelity >> T. Rowe Should you choose Fidelity, be careful to get the Fidelity Freedom Index fund, and not the Fidelity Freedom fund. The Freedom Index fund is more or less the same as Vanguard's (Vanguard has more international, but it's not significant). The Freedom fund is pretty much...
by Dominic
Thu Apr 13, 2017 7:59 pm
Forum: Personal Investments
Topic: Best 2050 Target Date Fund
Replies: 20
Views: 3123

Re: Best 2050 Target Date Fund

T. Rowe Price and Vanguard use the same stock/bond/TIPS allocation. However, Vanguard uses 4 simple index funds, while TRP's target funds hold about 15 funds (complexity for the sake of complexity, I'd argue). Moreover, TRP holds slightly less international stock (which is okay), but way, way more u...
by Dominic
Thu Apr 13, 2017 5:35 pm
Forum: Personal Investments
Topic: international funds question
Replies: 15
Views: 1998

Re: international funds question

trying to understand, what is the difference in TISM and EM + DM Another difference is Canada. TISM has it at ~6%. Neither DM nor EM has it. This is no longer the case. DM changed its index in 2015 to add Canadian exposure. For this reason, I'd argue that you should not split into European, Pacific...
by Dominic
Thu Apr 13, 2017 5:16 pm
Forum: Personal Investments
Topic: international funds question
Replies: 15
Views: 1998

Re: international funds question

trying to understand, what is the difference in TISM and EM + DM Another difference is Canada. TISM has it at ~6%. Neither DM nor EM has it. This is no longer the case. DM changed its index in 2015 to add Canadian exposure. For this reason, I'd argue that you should not split into European, Pacific...
by Dominic
Tue Apr 11, 2017 12:30 pm
Forum: Personal Investments
Topic: Portfolio recommendation
Replies: 4
Views: 905

Re: Portfolio recommendation

Currently would he be earning gains on the unvested amount? If he moves the 60% over what happens to the portion that is not vested? I'm not exactly sure how vesting works in this situation. I'd assume he's allowed to withdraw/roll over 60% of whatever his account balance is. I'm guessing the best ...
by Dominic
Mon Apr 10, 2017 11:40 pm
Forum: Investing - Theory, News & General
Topic: "Did Declining rates actually matter"
Replies: 26
Views: 2677

Re: "Did Declining rates actually matter"

Really interesting article. However, I'm curious as to how this looks with real returns instead of nominal. Although the bond returns of the last 35 years were excellent, falling interest rates coincided with falling inflation rates.
by Dominic
Mon Apr 10, 2017 10:57 pm
Forum: Investing - Theory, News & General
Topic: Will There Ever Be A Time When There Are No Emerging Markets?
Replies: 14
Views: 2420

Re: Will There Ever Be A Time When There Are No Emerging Markets?

Some countries will always be more developed than others. The standard for what is "developed" vs. "emerging" vs. "frontier" will probably shift. They're relative terms, the same way small/mid/large-cap are relative.
by Dominic
Mon Apr 10, 2017 10:10 pm
Forum: Personal Investments
Topic: Portfolio recommendation
Replies: 4
Views: 905

Re: Portfolio recommendation

In the new 401k, I'd ignore everything but: - JPMorgan Equity Index Fund Class A OGEAX - ER .45% - BlackRock International Index Fund Investor A Shares MDIIX ER .37% - Dreyfus Bond Market Index Fund Investor Shares DBMIX ER .4% In the old, I'd ignore everything but: Total U.S. Stock Market Index Fun...
by Dominic
Mon Apr 10, 2017 6:00 pm
Forum: Personal Investments
Topic: Vanguard vs fidelity & sp500 vs total market?
Replies: 12
Views: 2157

Re: Vanguard vs fidelity & sp500 vs total market?

Total stock market is more diversified -- it includes the S&P 500 and thousands of other stocks. For that reason, I suggest you buy total stock market. The only time I'd buy an S&P fund is if it were much cheaper than the total stock market fund available in my employer's plan, which does happen pre...
by Dominic
Mon Apr 10, 2017 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: pay of credit cards with savings
Replies: 10
Views: 1177

Re: pay of credit cards with savings

Pay it now.

It's 16% return. Should you need the remainder of the rainy day fund in the event of an emergency, you can charge it to the card and you're back where you're at now. If you don't need it, then you're earning 16%.
by Dominic
Fri Apr 07, 2017 9:52 pm
Forum: Personal Investments
Topic: Best Investment For A College Student?
Replies: 8
Views: 1078

Re: Best Investment For A College Student?

After paying off any high interest student loans (if you have them), the best investments you can make to save for your future are in index funds. Don't trade individual stocks, forex, options, and futures. Trade commissions add up fast, and you're one human with a few thousand dollars to trade comp...
by Dominic
Fri Apr 07, 2017 5:25 pm
Forum: Personal Investments
Topic: Stock Price Differences
Replies: 6
Views: 833

Re: Stock Price Differences

You can't actually "buy" the S&P 500 index from S&P. They dump a bunch of stock data into an equation, and that's the index value. It so happens that their methodology/equation makes the index worth $2,000 right now. However, the index funds you actually can buy basically divide the S&P's calculatio...
by Dominic
Thu Apr 06, 2017 9:10 pm
Forum: Investing - Theory, News & General
Topic: Why cheaper index funds translate into lower future returns
Replies: 26
Views: 5117

Re: Why cheaper index funds translate into lower future returns

-snip- In reality, what happens is that by buying an index fund, I prevent people from selling stock to me at inflated valuations based on "castles in the air" stories about hot companies. I am much less likely to engage in a bidding war over a stock or participate in driving up its value. I agree....
by Dominic
Thu Apr 06, 2017 8:11 pm
Forum: Personal Investments
Topic: VG has any funds for Frontier Markets??
Replies: 25
Views: 3802

Re: VG has any funds for Frontier Markets??

Emerging markets you mean? Frontier markets are a step deeper than emerging markets. Emerging markets include big players like China, India, Russia, South Africa, Mexico, etc. Frontier markets are on the development level of Argentina, Nigeria, Tunisia, Vietnam, Bangladesh, Lithuania, etc. So to an...
by Dominic
Thu Apr 06, 2017 12:29 pm
Forum: Personal Investments
Topic: How Do I Factor-Diversify for Cheap?
Replies: 8
Views: 1115

Re: How Do I Factor-Diversify for Cheap?

I took a look through the threads everyone linked -- a lot of good stuff in there. In particular, I wasn't aware that these funds make so much money off of lending compared to my usual cap-weighted funds. It's good to hear that the higher expense ratios cancel out somewhat. So at this point, I'm sta...
by Dominic
Thu Apr 06, 2017 12:14 pm
Forum: Investing - Theory, News & General
Topic: Which Larry Portfolio variation would you choose?
Replies: 30
Views: 4926

Re: Which Larry Portfolio variation would you choose?

If I'm 12 years from retirement, I'd take the second portfolio. With a shorter time horizon, more bonds will be better with a really risky equity side.
by Dominic
Wed Apr 05, 2017 6:29 pm
Forum: Personal Investments
Topic: How Do I Factor-Diversify for Cheap?
Replies: 8
Views: 1115

How Do I Factor-Diversify for Cheap?

I've started reading up on factors, and chosen small+value and momentum as my goal factors. I'm trying to figure out how to do this with funds available to the general public, which have low expense ratios, low bid/ask spreads, and high AUM. Based on my research, it looks like there aren't really an...
by Dominic
Sun Apr 02, 2017 2:24 pm
Forum: Investing - Theory, News & General
Topic: nice short piece on the math of factor investing
Replies: 202
Views: 16400

Re: nice short piece on the math of factor investing

Separately .... Larry - I think it would be beneficial to have a list of risk factors available to the average investor across asset classes. From my understanding there is: Equity: - beta - value - size - momentum Bond: - credit - term Other: - liquidity (not sure how the average investor accesses...
by Dominic
Thu Nov 03, 2016 3:53 pm
Forum: Personal Consumer Issues
Topic: Any recs for a Linux-compatible laptop?
Replies: 62
Views: 9395

Re: Any recs for a Linux-compatible laptop?

ThinkPads are excellent. All hardware should be Linux-compatible. They are durable and relatively easy to maintain (parts are widely available if something should break). They can be found used quite easily as well. If you're looking for a 15" screen, shoot for a T500 series. Anything T520 or above ...
by Dominic
Fri Sep 23, 2016 6:19 pm
Forum: Investing - Theory, News & General
Topic: Help understanding the attraction to W & W [Wellington/Wellesley]
Replies: 38
Views: 6454

Re: Help understanding the attraction to W & W [Wellington/Wellesley]

Wellington's success has little to do with management. They apparently avoid tracking error against large cap value, and they choose their high quality corporate bonds well. Their performance appears to be based on the factors they've chosen: value and term. Dominic - I don't understand what you me...
by Dominic
Fri Sep 23, 2016 10:43 am
Forum: Investing - Theory, News & General
Topic: Help understanding the attraction to W & W [Wellington/Wellesley]
Replies: 38
Views: 6454

Re: Help understanding the attraction to W & W [Wellington/Wellesley]

I have backtested Wellington and was able to replicate its performance using a 65/35 split of large cap value and long term Treasuries. Granted, a long term Treasury fund is not a perfect replacement for long term investment grade bonds, but it's the closest I can get with the backtesting tools I ha...
by Dominic
Fri Sep 09, 2016 4:56 pm
Forum: Personal Investments
Topic: Why are Treasury prices AND Stock prices both down today?
Replies: 45
Views: 9583

Re: Why are Treasury prices AND Stock prices both down today?

The market is anticipating rising interest rates because the Fed is moving closer to that. There can be a short term correlation between stocks and bonds in a market with changing interest rates. Bond yields rose in accordance with the rising interest rates. Thus, bond principal fell. For similar re...
by Dominic
Sun Sep 04, 2016 9:29 pm
Forum: Personal Investments
Topic: Wellington vs. Total Market and CD's
Replies: 17
Views: 4333

Re: Wellington vs. Total Market and CD's

I am of the opinion that Wellington's outperformance is entirely a result of its asset allocation (large cap growth and long term investment grade bonds) and luck. I've backtested various asset allocations, and one something like 60/40 large cap growth/long term Treasuries fell just short of Welling...
by Dominic
Thu Aug 11, 2016 7:04 pm
Forum: Investing - Theory, News & General
Topic: Bogle & Buffett on International Investing
Replies: 107
Views: 16342

Re: Bogle & Buffett on International Investing

Bogle said limit international, but he also said buy broad, cheap index funds. International/world stock indices are cheap these days, and they're the broadest equity investment out there. In the long run, currencies can't be expected to return anything. So in the long run, I don't see any risk in h...
by Dominic
Thu Aug 11, 2016 6:55 pm
Forum: Personal Investments
Topic: TIPS
Replies: 9
Views: 1359

Re: TIPS

My take on it is that TIPS will have a real return that is lower than traditional bonds in the long run. There's less risk in TIPS (since inflation risk is effectively gone), so the return should be lower. With that said, I would argue that if you don't expect to touch the money for a while, stay ou...
by Dominic
Sat Aug 06, 2016 10:00 pm
Forum: Personal Investments
Topic: Design Your Own Balanced Portfolio!
Replies: 4
Views: 1014

Re: Design Your Own Balanced Portfolio!

60% Equities 45% Vanguard Total Stock Market Index 15% Vanguard International Stock Market Index 40% Bonds 30% Vanguard Total Bond Market Index 10% Vanguard Inflation-Protected Securities I chose 3/4 domestic and 1/4 international to stay diversified internationally without being overly aggressive ...