Search found 6971 matches

by Call_Me_Op
Sun Jul 29, 2018 6:10 am
Forum: Investing - Theory, News & General
Topic: Passive Index Investing, A Bubble Bound To Burst?
Replies: 114
Views: 11877

Re: Passive Index Investing, A Bubble Bound To Burst?

Broadly speaking, we have stocks and we have bonds. If you want to minimize the impact of a stock market meltdown on your portfolio, put more money in bonds and less in stocks. I don't care if we are talking growth stocks, value stocks, dividend stocks, stocks with high insider ownership, etc. A sto...
by Call_Me_Op
Sat Jul 28, 2018 4:39 pm
Forum: Investing - Theory, News & General
Topic: Help Me Understand Bond Funds
Replies: 13
Views: 1311

Re: Help Me Understand Bond Funds

teacherguy wrote:
Sat Jul 28, 2018 3:59 pm
Also, I assume that in a fund I am only earning on the increase in value for each share of the fund. Is that correct? There is no other value at maturity as with individual bonds. Correct?
Not sure what you mean. A bond fund is nothing more than a "basket" of individual bonds.
by Call_Me_Op
Sat Jul 28, 2018 6:42 am
Forum: Investing - Help with Personal Investments
Topic: If Vanguard has 388 funds why should I stick with a 3 fund portfolio?
Replies: 15
Views: 2532

Re: If Vanguard has 388 funds why should I stick with a 3 fund portfolio?

Well, you could invest in all 388 funds - but I assume that is too complex. So the flip side is a simple but still diversified portfolio. Could be a single fund if you want. The question you need to ask when adding funds is what are you getting for the added complexity.
by Call_Me_Op
Fri Jul 27, 2018 6:42 am
Forum: Investing - Help with Personal Investments
Topic: Conservative asset management during retirement?
Replies: 15
Views: 1620

Re: Conservative asset management during retirement?

livesoft wrote:
Thu Jul 26, 2018 12:42 pm
Another guideline is not to go conservative. For example, just stick with a 60/40 portfolio for a long, long time.
...or 40/60
by Call_Me_Op
Thu Jul 26, 2018 11:21 am
Forum: Personal Finance (Not Investing)
Topic: Umbrella Insurance
Replies: 11
Views: 1272

Re: Umbrella Insurance

Hi - Question regarding umbrella insurance... I currently have umbrella insurance (as I own several investment properties), and recently read that umbrella policies typically cover 4 properties. What do real estate investors do when thew own more than those number of properties? I.e. if I'm startin...
by Call_Me_Op
Thu Jul 26, 2018 11:12 am
Forum: Investing - Theory, News & General
Topic: When Buckets Really aren’t Buckets.
Replies: 18
Views: 1970

Re: When Buckets Really aren’t Buckets.

It seems to me that the bucketeers have allowed their strategy to drift over time, so that what people are calling the "Bucket Approach" today is essentially the same as the old-fashioned rebalanced stock/bond mix. At least that's how I see it. The only real difference is the so-called Bucket Approa...
by Call_Me_Op
Thu Jul 26, 2018 7:20 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Size Factor Not Dead
Replies: 46
Views: 4628

Re: Larry Swedroe: Size Factor Not Dead

I don't see how the size factor can ever die when clearly, small companies are riskier than large companies. Why would anyone invest in riskier companies if there were no return premium? Return premium? Isn't it just return potential ? What is a more likely to become a 10-bagger, a 500M market cap ...
by Call_Me_Op
Thu Jul 26, 2018 7:18 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Size Factor Not Dead
Replies: 46
Views: 4628

Re: Larry Swedroe: Size Factor Not Dead

I don't see how the size factor can ever die when clearly, small companies are riskier than large companies. Why would anyone invest in riskier companies if there were no return premium? That could be (and in fact based on the most recent research is ) just more beta and not actually a separate unc...
by Call_Me_Op
Thu Jul 26, 2018 7:05 am
Forum: Personal Consumer Issues
Topic: hearing devices
Replies: 5
Views: 497

Re: hearing devices

Not a precise answer, but my dad tried a generic hearing aid from online and was very unsatisfied. He is very happy with his Costco hearing aids that have been tuned to his specific hearing loss pattern. The modern hearing aids have other important features to address issues such as recruitment. Sim...
by Call_Me_Op
Thu Jul 26, 2018 7:03 am
Forum: Investing - Theory, News & General
Topic: Any reason to hold junk bond fund?
Replies: 50
Views: 4697

Re: Any reason to hold junk bond fund?

Also, there is an academic school of thought that your human capital already has the characteristics of a junk bond. No that’s not a joke. You probably want to be diversified AWAY from that if you are still working. I have heard of human capital being thought-of as a bond, but there is never any me...
by Call_Me_Op
Tue Jul 24, 2018 8:12 am
Forum: Personal Consumer Issues
Topic: High voltage powerlines near house
Replies: 72
Views: 5391

Re: High voltage powelines near house

How about those cell towers? They can popup anywhere and probably produce a lot more EM radiation, right? The issue is not EM radiation. EM radiation from power lines would only form at very great distances and would have miniscule power density. The issue is low-frequency (e.g., 60 Hz) reactive fi...
by Call_Me_Op
Tue Jul 24, 2018 8:03 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Size Factor Not Dead
Replies: 46
Views: 4628

Re: Larry Swedroe: Size Factor Not Dead

I don't see how the size factor can ever die when clearly, small companies are riskier than large companies. Why would anyone invest in riskier companies if there were no return premium?
by Call_Me_Op
Mon Jul 23, 2018 11:17 am
Forum: Personal Consumer Issues
Topic: High voltage powerlines near house
Replies: 72
Views: 5391

Re: High voltage powelines near house

How about those cell towers? They can popup anywhere and probably produce a lot more EM radiation, right? The issue is not EM radiation. EM radiation from power lines would only form at very great distances and would have miniscule power density. The issue is low-frequency (e.g., 60 Hz) reactive fi...
by Call_Me_Op
Mon Jul 23, 2018 8:36 am
Forum: Investing - Theory, News & General
Topic: COMING SOON: BOGLEHEADS PODCASTS
Replies: 362
Views: 18409

Re: COMING SOON: BOGLEHEADS PODCASTS

This is indeed exciting!
by Call_Me_Op
Sun Jul 22, 2018 6:52 am
Forum: Personal Consumer Issues
Topic: High voltage powerlines near house
Replies: 72
Views: 5391

Re: High voltage powelines near house

Great question, we have always not bought right next to power lines. Quick question for everyone, how close do you think is too close? We are offering on a house that is about a block away from power lines (no longer visible) from the house. Still it’s walkable down the street to them, if you keep ...
by Call_Me_Op
Sun Jul 22, 2018 6:49 am
Forum: Personal Consumer Issues
Topic: High voltage powerlines near house
Replies: 72
Views: 5391

Re: High voltage powelines near house

I have passed on such a house in the past. Regardless of the facts (and I think there is uncertainty there) there is a negative perception that will affect future prospective buyers.
by Call_Me_Op
Sat Jul 21, 2018 9:32 am
Forum: Personal Finance (Not Investing)
Topic: Is my umbrella policy over priced?
Replies: 20
Views: 1736

Re: Is my umbrella policy over priced?

It is probably high because you live in a high COL area. A high COL area means higher potential awards in personal injury cases.
by Call_Me_Op
Sat Jul 21, 2018 9:29 am
Forum: Investing - Theory, News & General
Topic: Rethinking bond fund
Replies: 13
Views: 1193

Re: Rethinking bond fund

When rebalancing my three fund portfolio, I was looking at the options for my bond fund picks (I'm with Fidelity). They were pretty abysmal. All with YTD in the red. Most feel that interest rates will continue to rise. Given rates have been incredibly low for several years, I'd tend to agree. This ...
by Call_Me_Op
Sat Jul 21, 2018 5:34 am
Forum: Investing - Theory, News & General
Topic: Why Take Risk on Equity Side?
Replies: 78
Views: 5773

Re: Why Take Risk on Equity Side?

I'm confused by the validity of the original question. It seems like discussing equities as "risky" when comparing risk-adjusted returns defeats the whole purpose of using that measure. No - equities are risky by the usual measure of volatility. We can discuss risk-adjusted return as a separate met...
by Call_Me_Op
Thu Jul 19, 2018 10:04 am
Forum: Investing - Theory, News & General
Topic: Why Take Risk on Equity Side?
Replies: 78
Views: 5773

Re: Why Take Risk on Equity Side?

I am not suggesting that we view HY bonds as "safe" the way we would view treasury bonds. I am simply asking why not add some HY bonds in one's RISK portfolio as a diversifier? Thanks, now I understand your point. In that case, wouldn't high-yield bonds be viewed as sort of "equity light"? If the p...
by Call_Me_Op
Thu Jul 19, 2018 8:22 am
Forum: Investing - Theory, News & General
Topic: Why Take Risk on Equity Side?
Replies: 78
Views: 5773

Re: Why Take Risk on Equity Side?

Why then should one take their risk on the equity side? Why not also hold some high-yield bonds? I noticed also that the correlation with US stocks has been 0.58, which is not too high - so may be a decent diversifier. As a conservative investor, the greatest drawback of high yield bonds in my view...
by Call_Me_Op
Thu Jul 19, 2018 8:18 am
Forum: Investing - Theory, News & General
Topic: Why Take Risk on Equity Side?
Replies: 78
Views: 5773

Re: Why Take Risk on Equity Side?

Those results probably have a lot to do with your dataset. Not suggesting you purposefully cherrypicked dates, but those dates happen to include a 30 year bull run for bonds which is just recently coming to a close. Why would that affect risk-adjusted return? I can see that it would boost raw retur...
by Call_Me_Op
Thu Jul 19, 2018 7:59 am
Forum: Investing - Theory, News & General
Topic: Why Take Risk on Equity Side?
Replies: 78
Views: 5773

Re: Why Take Risk on Equity Side?

simplesimon wrote:
Thu Jul 19, 2018 7:58 am
Would you categorize your high-yield bond allocation under equity or bonds when looking at total stock and bond mix?
If you limit me to those two categories, I would split it 50-50. But more generally, I would simply place it in the "risky" category along with my stocks.
by Call_Me_Op
Thu Jul 19, 2018 7:59 am
Forum: Investing - Theory, News & General
Topic: Why Take Risk on Equity Side?
Replies: 78
Views: 5773

Re: Why Take Risk on Equity Side?

Those results probably have a lot to do with your dataset. Not suggesting you purposefully cherrypicked dates, but those dates happen to include a 30 year bull run for bonds which is just recently coming to a close. Why would that affect risk-adjusted return? I can see that it would boost raw retur...
by Call_Me_Op
Thu Jul 19, 2018 7:48 am
Forum: Investing - Theory, News & General
Topic: Why Take Risk on Equity Side?
Replies: 78
Views: 5773

Why Take Risk on Equity Side?

I have been an advocate of "taking your risk on the equity side." However, I noticed that from 1979-2018 (the maximum time period that Portfolio Visualizer has data) the risk-adjusted return for high-yield corporate bonds in actually slightly higher than the risk-adjusted return for the US stock mar...
by Call_Me_Op
Tue Jul 17, 2018 11:38 am
Forum: Investing - Theory, News & General
Topic: 1-year Treasury Bill auction
Replies: 57
Views: 5813

Re: 1-year Treasury Bill auction

Kevin M wrote:
Fri Jul 13, 2018 1:49 pm
IUsing the higher expected yield of 2.38% would provide a taxable-equivalent yield (TEY) of 2.673% for me at 28% federal and 8% state marginal tax rates = 2.38% * (1-27%)/ (1 - 27% - 8%).
Where does the 27% come from?
by Call_Me_Op
Tue Jul 17, 2018 11:29 am
Forum: Investing - Theory, News & General
Topic: Why age is not how to determine risk tolerance
Replies: 17
Views: 2273

Re: Why age is not how to determine risk tolerance

What does your salary have to do with it? Your salary may have nothing to do with your expenses. It is the expenses - specifically expenses once you retire - that count.
by Call_Me_Op
Tue Jul 17, 2018 11:23 am
Forum: Investing - Help with Personal Investments
Topic: Why is my bond fund going up with interest rates?
Replies: 16
Views: 1691

Re: Why is my bond fund going up with interest rates?

I am invested in municipal bond fund fmotx. In the last few months the Fed has raised interest rates, yet the bond fund is on a slow increase in value. I am prepared for bond funds to drop for a while, and have delayed investing more capital for this reason. I know some of the bonds are corporate, ...
by Call_Me_Op
Mon Jul 16, 2018 11:01 am
Forum: Personal Consumer Issues
Topic: Why own a bed?
Replies: 140
Views: 10132

Re: Why own a bed?

A bed

1.) Looks better

2.) Keeps you away from dust, bugs, and other critters

3.) Is easier to get into and out of (when you get older and stiff)

5.) Is probably more comfortable due to the compliance of the box spring
by Call_Me_Op
Sat Jul 14, 2018 7:05 am
Forum: Investing - Theory, News & General
Topic: Historical U.S. Portfolio Disasters — Wrapping It All Up
Replies: 32
Views: 2703

Re: Historical U.S. Portfolio Disasters — Wrapping It All Up

Very nice Todd. Always enjoy and appreciate your posts.
by Call_Me_Op
Sat Jul 14, 2018 6:47 am
Forum: Investing - Theory, News & General
Topic: Bucket Portfolio article by Christine Benz
Replies: 85
Views: 6958

Re: Bucket Portfolio article by Christine Benz

If one thinks about it, what Christine is describing is essentially the same as the balanced bogleheads portfolios we discuss regularly here. I see no fundamental differences. This is not a criticism in any way. But the one potentially misleading aspect is that she describes the buckets with a time ...
by Call_Me_Op
Fri Jul 13, 2018 8:33 am
Forum: Investing - Theory, News & General
Topic: Saving 20% of paycheck isn't enough
Replies: 112
Views: 14250

Re: Saving 20% of paycheck isn't enough

A guideline such as "save 10% -20% of your paycheck for retirement" is meaningless. What you need to save is an amount of money that is a certain multiple of your initial annual living expenses. This could translate to savings of less than 10% of your salary or greater than 100%.
by Call_Me_Op
Thu Jul 12, 2018 11:14 am
Forum: Personal Consumer Issues
Topic: Tick Tubes and boxes. Permethrin Fipronil
Replies: 22
Views: 2036

Re: Tick Tubes and boxes. Permethrin Fipronil

Hello people. I just bought a property out in the country I plan on retiring on in 10 years. My GF is currently renting it from me and we have noticed allot of ticks since she moved in probably because there are allot of field mice and deer in the area. Just to be clear, are you noticing them insid...
by Call_Me_Op
Tue Jul 10, 2018 8:04 am
Forum: Investing - Help with Personal Investments
Topic: Expected returns for 80/20 stock bond for next 10 years.
Replies: 169
Views: 13240

Re: Expected returns for 80/20 stock bond for next 10 years.

FIREchief wrote:
Tue Jul 03, 2018 11:48 pm
[Exactly. A: stay the course, B: nobody knows nothing
That would mean that everybody knows something.
by Call_Me_Op
Tue Jul 10, 2018 8:02 am
Forum: Investing - Help with Personal Investments
Topic: Expected returns for 80/20 stock bond for next 10 years.
Replies: 169
Views: 13240

Re: Expected returns for 80/20 stock bond for next 10 years.

averagedude wrote:
Tue Jul 03, 2018 1:16 pm
I can't believe Rick Ferri and all of you bogleheads saying to expect 5% nominal returns in the future. I guess i will have to sell my holdings and contact a SmartVestor Pro. Dave Ramsey says i should get 12%.
Not only that, but you'll get to work with someone who has the heart of a teacher.
by Call_Me_Op
Tue Jul 10, 2018 7:38 am
Forum: Investing - Theory, News & General
Topic: StreetShares bonds
Replies: 23
Views: 1784

Re: Street Smart bonds

I hear warning bells going off (in addition to my usual tinnitus).
by Call_Me_Op
Mon Jul 09, 2018 6:42 am
Forum: Investing - Theory, News & General
Topic: Is it contradictory to be a Boglehead and have substantial allocation towards SCV?
Replies: 30
Views: 2487

Re: Is it contradictory to be a Boglehead and have substantial allocation towards SCV?

Thrifty, Let me repeat my original words, and then explain them - since you are not representing them accurately. "First, the assertion that SCV has under-performed the S&P500 over long time periods is flat-out wrong. There is a small cap premium and a value premium, and these are persistent and per...
by Call_Me_Op
Mon Jul 09, 2018 6:08 am
Forum: Investing - Theory, News & General
Topic: Is it contradictory to be a Boglehead and have substantial allocation towards SCV?
Replies: 30
Views: 2487

Re: Is it contradictory to be a Boglehead and have substantial allocation towards SCV?

ThriftyPhD wrote:
Sun Jul 08, 2018 6:18 pm
Call_Me_Op wrote:
Sun Jul 08, 2018 5:38 pm
Nobody has ever claimed that SCV will beat S&P 500 over every time period.
Well, you did.
Untrue. Please identify where I said that.
by Call_Me_Op
Sun Jul 08, 2018 5:38 pm
Forum: Investing - Theory, News & General
Topic: Is it contradictory to be a Boglehead and have substantial allocation towards SCV?
Replies: 30
Views: 2487

Re: Is it contradictory to be a Boglehead and have substantial allocation towards SCV?

First, the assertion that SCV has under-performed the S&P500 over long time periods is flat-out wrong. There is a small cap premium and a value premium, and these are persistent and pervasive (over long time periods). Look at the data yourself. Not that I'm against SCV, but there are some examples ...
by Call_Me_Op
Sun Jul 08, 2018 4:35 pm
Forum: Investing - Theory, News & General
Topic: Is it contradictory to be a Boglehead and have substantial allocation towards SCV?
Replies: 30
Views: 2487

Re: Is it contradictory to be a Boglehead and have substantial allocation towards SCV?

It seems to me that investing in SCV is completely contradictory for Bogleheads, particularly having a substantial allocation towards SCV. Aren't we Bogleheads supposed to believe in reversion to the mean, and that the past is not prologue? How do those who invest in SCV reconcile with those founda...
by Call_Me_Op
Fri Jul 06, 2018 9:17 am
Forum: Investing - Theory, News & General
Topic: Treasury Auction - Nobody Came: "Great T-Bill Massacre"
Replies: 145
Views: 12753

Re: Treasury Auction - Nobody Came: "Great T-Bill Massacre"

Another way to describe that is to say "The Market" wanted to buy $85 billion worth of notes. The Government only wanted to sell $35 Billion. It's a little more complicated than that, in that weaker demand can drive up rates. But in other fields, anything over 2.0 is considered a successful auction...
by Call_Me_Op
Fri Jul 06, 2018 6:37 am
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation once you reach your target
Replies: 42
Views: 3275

Re: Asset Allocation once you reach your target

I don't like the idea of "X years in expenses in bonds" (without some equities) because I would not want to be in my rocking chair watching my portfolio deplete toward zero. I would always keep some money in equities and view the portfolio as a whole, with the goal that the overall portfolio increas...
by Call_Me_Op
Fri Jul 06, 2018 6:25 am
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation once you reach your target
Replies: 42
Views: 3275

Re: Asset Allocation once you reach your target

Interesting question. I think in this case, one's willingness to take risk might trump the need to take risk. For me, equities in the range of 30%-40% would be as much as I could stomach - assuming I had more than enough. The other 60%-70% wold be in high quality short-intermediate bonds. I think wh...
by Call_Me_Op
Fri Jun 29, 2018 6:10 am
Forum: Investing - Theory, News & General
Topic: Emerging Markets in Bear Territory
Replies: 65
Views: 9038

Re: Emerging Markets in Bear Territory

If you do not know why you have tilted toward EM, you will have a hard time sticking with it.
by Call_Me_Op
Thu Jun 28, 2018 8:03 am
Forum: Investing - Help with Personal Investments
Topic: Umbrella Policy: Right amount for $7 mil net worth?
Replies: 76
Views: 11123

Re: Umbrella Policy: Right amount for $7 mil net worth?

80-90% of personal umbrella claims are for auto accidents. If you almost never drive, don't own any dangerous pets, don't have any high risk hobbies, like boating or flying a private plane, and rent an apartment or condo, I question whether you need an umbrella policy at all. All insurance applies ...
by Call_Me_Op
Thu Jun 28, 2018 8:02 am
Forum: Investing - Help with Personal Investments
Topic: Umbrella Policy: Right amount for $7 mil net worth?
Replies: 76
Views: 11123

Re: Umbrella Policy: Right amount for $7 mil Net Worth?

dgm wrote:
Wed Jun 27, 2018 6:57 pm
How does umbrella work?

If you have a 5 mil umbrella and a 7 mil net worth, are you still bankrupt if someone successfully sues for 12 million? or are you only liable for 2m and the insurance company for 5m
In that contrived scenario, you are out of luck.
by Call_Me_Op
Wed Jun 27, 2018 11:44 am
Forum: Investing - Theory, News & General
Topic: Is there a reversion to the mean for everything?
Replies: 29
Views: 1912

Re: Is there a reversion to the mean for everything?

As the title says, is there? I mean for example treasuries were the way to go to last years but lowering of interest rates surely helped their gains. Will there be a reversion to the mean when interest rates rise again? And will an investor be better off in a diversified index like total bond? No. ...
by Call_Me_Op
Wed Jun 27, 2018 8:17 am
Forum: Investing - Theory, News & General
Topic: Keeping up with inflation
Replies: 24
Views: 2174

Re: Keeping up with inflation

Balanced portfolio
by Call_Me_Op
Wed Jun 27, 2018 6:36 am
Forum: Personal Consumer Issues
Topic: Home AC filters - does MPR matter ? [Microparticle Performance Rating]
Replies: 16
Views: 1609

Re: Home AC filters - does MPR matter ?

Most of the cheap filters will do nothing for odors and gases. Why are you getting the filters?