Search found 4381 matches

by afan
Wed Oct 30, 2019 9:02 am
Forum: Investing - Theory, News & General
Topic: If Charles Schwab et al. drop commissions to zero, can we build our own index funds?
Replies: 68
Views: 7585

Re: If Charles Schwab et al. drop commissions to zero, can we build our own index funds?

There are already plenty of opportunities to debate proxy proposals. Even before the huge rise of mutual funds few investors voted their proxies at all. There are lots of people today who own lots of stock directly and could vote their shares. They could but they don't. If you really want to vote yo...
by afan
Sun Oct 27, 2019 9:18 am
Forum: Investing - Theory, News & General
Topic: Assessing the Value of Advice
Replies: 18
Views: 1829

Re: Assessing the Value of Advice

Not to disparage the delivery people. Some do a great job, others less so. But I don't believe that the quality of work depends on a personal relationship. How about this? I don't have a personal relationship with the people who deliver gasoline to gas stations I use. It is highly important to me th...
by afan
Sat Oct 26, 2019 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: Do we need a trust? (MIL to keep extended family away from assets)
Replies: 20
Views: 3666

Re: Do we need a trust? (MIL to keep extended family away from assets)

The most important steps would be seeing an attorney and protecting the physical assets of the house and contents. Attorney should design the legal protection plan. This would include blocking relatives from somehow getting FIL's name on a will. It might include putting the assets in a trust with ei...
by afan
Thu Oct 24, 2019 5:17 pm
Forum: Investing - Theory, News & General
Topic: Public markets too efficient to produce alpha
Replies: 7
Views: 684

Re: Public markets too efficient to produce alpha

"With public markets becoming so efficient it has become difficult to produce returns in excess of market gains, so institutional investors are looking to private markets to generate alpha, he said." https://www.bloomberg.com/news/articles/2019-10-24/blackrock-sees-institutional-clients-moving-to-p...
by afan
Wed Oct 23, 2019 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: Best credit card for 2 mil+ in annual spending?
Replies: 60
Views: 6569

Re: Best credit card for 2 mil+ in annual spending?

Except for the quibble about 1.99 vs 2%, the Fidelity VISA Is the same as Citi double cash. It gives a straight 2% on all purchases that will automatically post to a Fidelity fund. You can have it go to a money market fund. Maybe to the Fidelity CMA. Simplest 2% deal I know about. At your level of s...
by afan
Wed Oct 23, 2019 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Do you plan to actually spend down your portfolio?
Replies: 104
Views: 10110

Re: Do you plan to actually spend down your portfolio?

I hope to have our networth continue to increase during retirement. It should under some pretty conservative estimates of real returns on our investments. The after tax value of SS and RMDs will be considerably more than we have any intention of or interest in spending. So we will be reinvesting the...
by afan
Wed Oct 23, 2019 4:15 pm
Forum: Investing - Theory, News & General
Topic: If Charles Schwab et al. drop commissions to zero, can we build our own index funds?
Replies: 68
Views: 7585

Re: If Charles Schwab et al. drop commissions to zero, can we build our own index funds?

On some financial forum, it may have been whitecoatinvestor, someone reported their experience with an automated TLH service. It produced an 89 page 1099, listing the many security sales for the year. It not only made preparing the tax return a nightmare, it accomplished almost nothing. Apparently m...
by afan
Tue Oct 22, 2019 8:26 am
Forum: Personal Finance (Not Investing)
Topic: UTMA accounts
Replies: 101
Views: 7033

Re: UTMA accounts

Although we got lucky, if we had it to do over again we would not have used UTMAs. Forcing the money into the hands of a very young adult is a serious problem. Even if your kids turn out to be mature and responsible, using the money only for rational purposes, you give up asset protection. The money...
by afan
Mon Oct 21, 2019 12:13 pm
Forum: Investing - Theory, News & General
Topic: Assessing the Value of Advice
Replies: 18
Views: 1829

Re: Assessing the Value of Advice

You could be right about Vanguard not giving you a feeling of personal relationship. I don't need a personal relationship with an employee of my mutual fund company any more than I need a personal relationship with my mail deliverer. That said, the Vanguard article does list this personal relationsh...
by afan
Sun Oct 20, 2019 3:56 pm
Forum: Investing - Theory, News & General
Topic: Whatever happened to the commodities miracle?
Replies: 21
Views: 2835

Re: Whatever happened to the commodities miracle?

As for correlations VTI vs BND -0.02, effectively zero BND vs PCRIX 0.14, low but not zero VTI vs PCRIX 0.54, not much of a diversifier It did not make sense and it did not work. CCF managers and investment advisors made a lot of money on the commodities play. Has anyone seen any estimates of how m...
by afan
Fri Oct 18, 2019 7:41 pm
Forum: Investing - Theory, News & General
Topic: Whatever happened to the commodities miracle?
Replies: 21
Views: 2835

Re: Whatever happened to the commodities miracle?

As for correlations VTI vs BND -0.02, effectively zero BND vs PCRIX 0.14, low but not zero VTI vs PCRIX 0.54, not much of a diversifier It did not make sense and it did not work. CCF managers and investment advisors made a lot of money on the commodities play. Has anyone seen any estimates of how mu...
by afan
Fri Oct 18, 2019 5:24 pm
Forum: Investing - Theory, News & General
Topic: Whatever happened to the commodities miracle?
Replies: 21
Views: 2835

Re: Whatever happened to the commodities miracle?

But you were not supposed to look at the performance of the asset in isolation. One was supposed to add it to a portfolio of stocks and bonds, exploiting the low correlation with both to improve risk adjusted return. According to portfolio visualizer, if you added a 10% allocation to PCRIX, one of t...
by afan
Fri Oct 18, 2019 5:11 pm
Forum: Investing - Theory, News & General
Topic: Whatever happened to the commodities miracle?
Replies: 21
Views: 2835

Re: Whatever happened to the commodities miracle?

I am not sure the academic papers made this sound too good to be true. That was more on the marketing side of investment advisors. There was excellent evidence that the returns about match inflation. So it had to be dressed up to look like something investors should want. After the hard reality came...
by afan
Fri Oct 18, 2019 5:00 pm
Forum: Personal Finance (Not Investing)
Topic: NYT: Why Don’t Rich People Just Stop Working?
Replies: 18
Views: 3635

Re: NYT: Why Don’t Rich People Just Stop Working?

Silly article. It assumes that everyone is a lazy jerk, doing the minimum amount of work they can get away with and still manage to live on this earth. From such an attitude, it is easy to see the puzzlement that someone could have their material needs met and continue to work. If all work is so hor...
by afan
Wed Oct 16, 2019 10:04 am
Forum: Investing - Theory, News & General
Topic: Schwab Fixed Monthly Fee CFP Advice
Replies: 24
Views: 2479

Re: Schwab Fixed Monthly Fee CFP Advice

There are two issues, keep them separate 1. Is it appropriate to hold such high allocations in cash? Most people would say no. It is possible that there may be certain situations for certain clients when this is reasonable. Holding money for a down payment, for example. As a default allocation for e...
by afan
Mon Oct 14, 2019 5:03 pm
Forum: Investing - Theory, News & General
Topic: Bloomberg article on Ivy league Hedge funds under performing
Replies: 5
Views: 1191

Re: Bloomberg article on Ivy league Hedge funds under performing

I did not see anything about Ivy League hedge funds. Only about endowments and their investments. Since all the Ivies are nonprofits, I don't know what an "Ivy League hedge fund" would be. The usual response to comparisons between a 60/40 portfolio and endowments is that nonprofits value the diversi...
by afan
Mon Oct 14, 2019 1:05 pm
Forum: Investing - Theory, News & General
Topic: If Charles Schwab et al. drop commissions to zero, can we build our own index funds?
Replies: 68
Views: 7585

Re: If Charles Schwab et al. drop commissions to zero, can we build our own index funds?

No one runs an index fund manually. To create your own index fund you would need to automate all the trading. To reproduce what index funds do you would also need to use options and futures to stay fully invested while some of your money is temporarily in cash. Running an index fund is not as simple...
by afan
Mon Oct 14, 2019 10:37 am
Forum: Investing - Theory, News & General
Topic: Schwab Fixed Monthly Fee CFP Advice
Replies: 24
Views: 2479

Re: Schwab Fixed Monthly Fee CFP Advice

Nate79 wrote:
Mon Oct 14, 2019 10:18 am
Schwab offsets cash with higher yielding, higher risk bonds to result in a no cost robo service...
Good point about thinking skills.
Except that one could use the same strategy with a higher paying money market fund. It is clearly NOT no cost.
by afan
Mon Oct 14, 2019 8:33 am
Forum: Investing - Theory, News & General
Topic: Schwab Fixed Monthly Fee CFP Advice
Replies: 24
Views: 2479

Re: Schwab Fixed Monthly Fee CFP Advice

Both PAS and the Schwab product are designed to gather assets with the attendant fees. Vanguard, being Vanguard, is upfront about the cost. Schwab hides some of the cost in the cash allocation. This encourages people to simply look at the stated fee and conclude Schwab is cheaper. It makes it appear...
by afan
Sat Oct 12, 2019 7:49 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard keeps pushing their financial advisors...why?
Replies: 93
Views: 7855

Re: Vanguard keeps pushing their financial advisors...why?

In a separate question: How is providing and marketing PAS beneficial to Vanguard's owners (the funds, and through them the fund shareholders)? Less turnover in fund holdings. PAS will not move in and out of Vanguard funds to chase performance or in response to what some investing guru says will ha...
by afan
Sat Oct 12, 2019 1:27 pm
Forum: Investing - Theory, News & General
Topic: Prominent financial adviser fined $1M
Replies: 24
Views: 4270

Re: Prominent financial adviser fined $1M

The risk of investing based on a cult of personality. Whether the person gives advice on the radio should have no effect on the decision to invest with him. There are lots of opportunities to invest with large heavily regulated mutual funds with no assumptions needed about the honesty of a particula...
by afan
Sat Oct 12, 2019 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: Offered 18-Month, 0% interest loan w/2% fee. Should I take the loan and invest or pass on the offer?
Replies: 72
Views: 5423

Re: Offered 18-Month, 0% interest loan w/2% fee. Should I take the loan and invest or pass on the offer?

I probably would not do it but using it to pay down the mortgage is not a bad idea. OP says there will be no problem paying off the loan, so no risk. The loan rate is substantially less than the mortgage rate, so there would be a profit. It would be worth several hundred dollars, less if the mortgag...
by afan
Sat Oct 12, 2019 10:09 am
Forum: Investing - Theory, News & General
Topic: Do You Think Vanguard Will Join The No Commission Party?
Replies: 40
Views: 5042

Re: Do You Think Vanguard Will Join The No Commission Party?

Vanguard probably makes little money on stock trading as it us. Not a major activity for most of its investors, commissions on stocks already go to $2 on moderate sized accounts and zero for somewhat larger accounts. There is just not that much revenue at stake. Even marketing to those who plan to t...
by afan
Fri Oct 11, 2019 10:40 pm
Forum: Personal Finance (Not Investing)
Topic: Purchasing an old home 100yrs +
Replies: 33
Views: 2361

Re: Purchasing an old home 100yrs +

Buying an old house and renovating can be a good deal if there is some combination of Deteriorated house in a high priced neighborhood. You can get it at a discount because of condition, renovate and get your money back as the value catches up with the neighborhood. You really love the old house loo...
by afan
Fri Oct 11, 2019 10:11 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard keeps pushing their financial advisors...why?
Replies: 93
Views: 7855

Re: Vanguard keeps pushing their financial advisors...why?

I suspect PAS is both a way to bring in some money- charging a lot more than Vanguard collects from expense ratios- and a way to keep assets at Vanguard. PAS will always put the money in Vanguard products and will not trade in and out. So this gives Vanguard a large stable base of assets. If I were ...
by afan
Fri Oct 11, 2019 9:28 am
Forum: Investing - Theory, News & General
Topic: Payment for Order Flow
Replies: 7
Views: 655

Re: Payment for Order Flow

If you buy only highly liquid ETFs the spread will be one cent. Little opportunity for price improvement.
by afan
Wed Oct 09, 2019 7:43 am
Forum: Personal Finance (Not Investing)
Topic: Question for those who have used will prep software
Replies: 11
Views: 1434

Re: Question for those who have used will prep software

My wife and I are planning to move to another state w/in the next couple of years. If we get a will done by an attorney in our state will we have to start from scratch with another attorney in the new state? You might tell the attorney who does your documents now that you are planning to move. Depe...
by afan
Wed Oct 09, 2019 7:35 am
Forum: Personal Finance (Not Investing)
Topic: Buying CDs at Vanguard vs Online Banks
Replies: 25
Views: 5025

Re: Buying CDs at Vanguard vs Online Banks

These are typical services of a corporate trustee. Except for the part about taking over when you become incapacitated. Does the company have your durable power of attorney? Most corporate trustees will not do that. Even if they have a DPOA, how will they know when you are no longer capable of manag...
by afan
Mon Oct 07, 2019 9:44 am
Forum: Personal Finance (Not Investing)
Topic: Question for those who have used will prep software
Replies: 11
Views: 1434

Re: Question for those who have used will prep software

And that is why you need an attorney as well as software. Someone who knows what they are doing can write the will manually. Someone who does not know what they are doing can use software to prepare a document without realizing that it does not do what they want.
by afan
Sun Oct 06, 2019 4:53 pm
Forum: Investing - Theory, News & General
Topic: Over Confident in Old-age: Cognitive Decline and Financial Literacy
Replies: 83
Views: 8072

Re: Over Confident in Old-age: Cognitive Decline and Financial Literacy

We have a younger generation heir who has our DPOA and is successor trustee. Knows that they can bring in Vanguard or some other entity as co trustee if managing our simple financial lives becomes a hassle. Mt primary plan for assuring mental acuity is my job performance. As long as I am doing well ...
by afan
Sat Oct 05, 2019 4:40 pm
Forum: Investing - Theory, News & General
Topic: Over Confident in Old-age: Cognitive Decline and Financial Literacy
Replies: 83
Views: 8072

Re: Over Confident in Old-age: Cognitive Decline and Financial Literacy

Having someone manage your investments will do little to solve the problem of cognitive decline. Leaving assets in a handful of index funds dies not require much mental acuity. Resisting sales pitches mat take more. But an advisor cannot keep you from buying that over priced annuity or penny stock. ...
by afan
Sat Oct 05, 2019 2:38 pm
Forum: Personal Finance (Not Investing)
Topic: Asset protection
Replies: 34
Views: 3322

Re: Asset protection

Before doing anything about protection from malpractice exposure, get some information about the coverage her employer provides. Many health care professionals get their coverage from their employers, it may be perfectly reliable.
by afan
Fri Oct 04, 2019 12:21 pm
Forum: Investing - Theory, News & General
Topic: Insurance for mutual funds to guarantee index returns?
Replies: 25
Views: 2041

Re: Insurance for mutual funds to guarantee index returns?

There are variable universal life policies that guarantee no negative years. But they charge so much for this downside protection that they do not come close to matching the index. Plus, they will cap payment at some figure that cuts off the really good years with high market returns. Since the comp...
by afan
Thu Oct 03, 2019 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: Chase Bank canceling credit cards??
Replies: 29
Views: 4838

Re: Chase Bank canceling credit cards??

Worth the effort to call and check. Banks have been known to make mistakes in their records.
by afan
Thu Oct 03, 2019 2:04 pm
Forum: Personal Investments
Topic: Is private wealth management worth it?
Replies: 47
Views: 6211

Re: Is private wealth management worth it?

It may be worthwhile to get overall financial advice. Roth would be a good source for that. Ferri, as far as I know, only advises on investing, not on the other decisions that one would make having recently come into money. If the OP does not want to DIY the investing, then Vanguard PAS could be goo...
by afan
Wed Oct 02, 2019 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Family Legacy Services - what is this?
Replies: 12
Views: 1795

Re: Vanguard Family Legacy Services - what is this?

But "call us" is not much of an explanation of what they are offering to do. It seems to be something different from flagship, PAS or trustee services. It is not legal or funancial estate plannung. There are 4 people listed as the team. Two are CFP's. The other two have no financial or estate planni...
by afan
Tue Oct 01, 2019 2:09 pm
Forum: Investing - Theory, News & General
Topic: Vanguard PAS -- one size fits all?
Replies: 19
Views: 2771

Re: Vanguard PAS -- one size fits all?

Is it true that PAS does not charge its AUM fee for cash held in the account? Money market fund- no fee, short term bond fund- AUM fee? Seems odd. I was struck that the average age for all the investors was early - mid 60's. So the Vanguard 60/40 might be driven mainly by age There was also little v...
by afan
Sun Sep 29, 2019 11:01 am
Forum: Personal Consumer Issues
Topic: Going to a wedding party
Replies: 48
Views: 4450

Re: Going to a wedding party

aqan, As you can see from these replies, traditions vary widely. It depends on the couple, the families and to some extent the region. Since the invitation is from a close friend, just ask. Mention that you have never been to an American wedding. You have already taken care of the gift. Ask about ho...
by afan
Fri Sep 27, 2019 9:00 pm
Forum: Investing - Theory, News & General
Topic: Fidelity - No fiduciary policy?
Replies: 16
Views: 1192

Re: Fidelity - No fiduciary policy?

This is not worth so much angst. You got a good answer in the other thread. Fiduciary is nor a magic wand that assures that all the advice will be perfect. It does not mean the advisor has to find you the least expensive options, even if they come from a competitor. Vanguard typically will have good...
by afan
Fri Sep 27, 2019 8:59 pm
Forum: Investing - Theory, News & General
Topic: Fidelity - No fiduciary policy?
Replies: 16
Views: 1192

Re: Fidelity - No fiduciary policy?

Deleted duplicate
by afan
Fri Sep 27, 2019 3:59 pm
Forum: Investing - Theory, News & General
Topic: Fidelity - No fiduciary policy?
Replies: 16
Views: 1192

Re: Fidelity - No fiduciary policy?

To get back to the point. Some parts of the financial services industry function in a fiduciary capacity and some do not. In general, the SEC-regulated part is fiduciary and the FINRA-regulated part is not. There is a "solely incidental" exception that acknowledges that brokers have selling securiti...
by afan
Fri Sep 27, 2019 2:13 pm
Forum: Investing - Theory, News & General
Topic: Fidelity - No fiduciary policy?
Replies: 16
Views: 1192

Re: Fidelity - No fiduciary policy?

I did not think brokers act as fiduciaries. Neither Fidelity nor anyone else. It is possible that some parts of Fidelity, a very large organization, has employees whose jobs conform to a fiduciary standard. Perhaps when they are the advisor for employer retirement funds, for example. Brokers are not...
by afan
Wed Sep 25, 2019 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: Article on Deferred Annuities on HumbleDoller
Replies: 15
Views: 1072

Re: Article on Deferred Annuities on HumbleDoller

The idea might work for a very narrow subset of the population. They need enough money to put it away for many years with a high probability of never getting anything back. But also little enough money to have a reasonable concern about running out. They then need to estimate their personal life exp...
by afan
Wed Sep 25, 2019 4:06 pm
Forum: Personal Finance (Not Investing)
Topic: Success stories of NOT buying more/too much house
Replies: 109
Views: 18614

Re: Success stories of NOT buying more/too much house

We stayed in our starter house for 18 years. Only moved when careers took us to another city. We loved that house. It had plenty of land, being in the exurbs, but a painfully long commute. The money we saved by having a small mortgage and low taxes was all invested and we are way better off for it. ...
by afan
Wed Sep 25, 2019 11:52 am
Forum: Personal Finance (Not Investing)
Topic: Trust Services
Replies: 204
Views: 25635

Re: Trust Services

In spite of their claims to highly personalized investment plans, the companies are not set up do do things completely differently for each trust. To do that would require far more employees and much higher expenses. They might do unique investing for a large trust that required it. For a typical bo...
by afan
Wed Sep 25, 2019 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard frequent trading: help understand
Replies: 21
Views: 1292

Re: Vanguard frequent trading: help understand

Vanguard would have no say over who traded VTI or how frequently. If you want to day trade in this fund the etf would be the way to do it. Trading in the etf does not impose any costs on the fund or its shareholders. Any costs would be borne by the parties to the trade. They have both. Some investor...
by afan
Wed Sep 25, 2019 11:06 am
Forum: Investing - Theory, News & General
Topic: Swedroe Advocates: LENDX, SRRIX, AVRPX, QRPRX/QSPRX
Replies: 119
Views: 8152

Re: Swedroe Advocates: LENDX, SRRIX, AVRPX, QRPRX/QSPRX

The industry players are motivated to earn money. There is nearly no money to be made in cap weighted indexing. So the active management part of the industry has to come up with something else. One needs a story and high enough fees to pay the salespeople to do the hard work of selling them. The hig...
by afan
Wed Sep 25, 2019 7:43 am
Forum: Personal Finance (Not Investing)
Topic: Trust Services
Replies: 204
Views: 25635

Re: Trust Services

Under a traditional trust company relationship it seems that the profit comes from managing the assets. If Schwab puts money into its own broad market index fund rather than VTI the expense ratio is so low that there is not much profit to be made. I can understand why they might prefer to keep it in...
by afan
Wed Sep 25, 2019 7:06 am
Forum: Investing - Theory, News & General
Topic: Swedroe Advocates: LENDX, SRRIX, AVRPX, QRPRX/QSPRX
Replies: 119
Views: 8152

Re: Swedroe Advocates: LENDX, SRRIX, AVRPX, QRPRX/QSPRX

The following is NOT about any particular individual. It is NOT an attack on anyone. It is an observation about the nature of the investment advisory industry. Start with the financial advice that is often preached on bogleheads: Do it yourself. Don't pay anyone anything to do this simple work for y...
by afan
Sat Sep 21, 2019 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: Term Life Insurance advice needed
Replies: 12
Views: 1110

Re: Term Life Insurance advice needed

The amount you need can be estimated better than jus X times income. You need to look at your overall financial picture. How much you own in total. What are your current expenseS? Are you saving for kids' education? Planning to move to a more expensive house? Compare your future expenses to your ass...