Search found 322 matches

by jmk
Tue Mar 19, 2013 7:32 pm
Forum: Investing - Theory, News & General
Topic: From whence value premium?
Replies: 11
Views: 1070

Re: From whence value premium?

Sorry to be a grammar nerd, but "whence" has the 'from' part built into it. :-) Um... while you are technically correct in the strict sense, the issue is not so clear, Linefort: And even a brief look at historical sources shows that from whence has been common since the thirteenth century. It has b...
by jmk
Tue Mar 19, 2013 11:33 am
Forum: Investing - Theory, News & General
Topic: From whence value premium?
Replies: 11
Views: 1070

From whence value premium?

"Fama and French hypothesized that while small-cap and value stocks have higher beta (they have more equity-type risk), they also have additional risk unrelated to beta." I understand mathematically how factor analysis can identify parts which contribute in different amounts to an effect. And I unde...
by jmk
Mon Mar 18, 2013 10:13 pm
Forum: Investing - Theory, News & General
Topic: Why target date funds add TIPS only at retirement?
Replies: 36
Views: 4404

Re: Why target date funds add TIPS only at retirement?

If Vanguard feels TIPS are appropriate for Target Retirement Income why are they not included in Life Strategy Income? Both families are aimed at diferent purposes. Retirement income assumes you're seven years in retirement without a job. LifeStrategy income just assumes you want income or a safer ...
by jmk
Sun Mar 17, 2013 9:51 pm
Forum: Investing - Theory, News & General
Topic: Why target date funds add TIPS only at retirement?
Replies: 36
Views: 4404

Re: Why target date funds add TIPS only at retirement?

This is purely speculation, but I wouldn't be surprised if Vanguard uses TBM just because they want to hedge their bets on investments strategies. Perhaps the argument can be made for 100% TIPS. But how would people in the target retirement funds have felt in 2008, when Vanguard's TIPS fund lost 12...
by jmk
Sun Mar 17, 2013 9:40 pm
Forum: Investing - Theory, News & General
Topic: Why target date funds add TIPS only at retirement?
Replies: 36
Views: 4404

Re: Why target date funds add TIPS only at retirement?

I don't quite understand why I, or anyone else, isn't 100% TIPS in fixed income. Because TIPs expected returns are less than similar nominal bonds since there's no free lunch. So, other things being equal, if one can ride out the inflation-deflation cycles you're better off not paying the premium f...
by jmk
Sun Mar 17, 2013 9:27 pm
Forum: Investing - Theory, News & General
Topic: Why target date funds add TIPS only at retirement?
Replies: 36
Views: 4404

Re: Why target date funds add TIPS only at retirement?

s: Vanguard's approach to target-date funds While the risk of inflation is prevalent throughout an investor’s life cycle, it’s primarily in the later stages that investors must focus on investment tools to provide some protection. This is because for investors in the accumulation stage, inflation p...
by jmk
Sun Mar 17, 2013 2:20 pm
Forum: Investing - Theory, News & General
Topic: Why target date funds add TIPS only at retirement?
Replies: 36
Views: 4404

Why target date funds add TIPS only at retirement?

The Vanguard Target Retirement fund glide path only starts adding TIPS into the mix close to the date of retirement, with a max of 20% of bonds 7 years in. The bond portion is all tbm bond before that. Has Vanguard stated their reasoning? Do you agree? If it makes sense to hedge inflation then, why ...
by jmk
Sat Mar 16, 2013 1:29 pm
Forum: Investing - Theory, News & General
Topic: Larry's nice summary of "expected" return.
Replies: 31
Views: 4640

Larry's nice summary of "expected" return.

I thought this short article from BAM's website was a wonderful reminder about the true nature of risk that is easy to forget once you get into the number crunching. Sometimes Larry's shorthand is hard to follow, but the writing here is articulate yet profound in the best Bogle tradition: http://www...
by jmk
Fri Mar 15, 2013 11:00 am
Forum: Investing - Help with Personal Investments
Topic: VGTSX/VTIAX regions fixed?
Replies: 1
Views: 347

VGTSX/VTIAX regions fixed?

Vanguard Total International tracks the MSCI All Country World ex USA Investable Market Index. Does this index have a fixed setting for Europe, Pacific, Emerging or do the ratios change over time?
thanks
by jmk
Wed Mar 13, 2013 11:36 pm
Forum: Investing - Theory, News & General
Topic: TIAA Real Estate fee reduction?
Replies: 16
Views: 1887

Re: TIAA Real Estate fee reduction?

TIAA Real Estate really isn't the same as a REIT:
this morningstar graph
by jmk
Wed Mar 13, 2013 10:28 am
Forum: Investing - Theory, News & General
Topic: spreadsheet of asset returns 1926 to present?
Replies: 9
Views: 2088

spreadsheet of asset returns 1926 to present?

I know on this site is a wonderful spreadsheet by Simba of Vanguard returns from 1972 to 2011.
I used to have a similar spreadsheet going back to 1926 or maybe even 1871 for various broad asset class returns.
Can anyone point me to this?
by jmk
Tue Mar 12, 2013 1:18 pm
Forum: Investing - Theory, News & General
Topic: Aren't V & S a less efficient way to increase risk?
Replies: 10
Views: 1453

Re: Aren't v & s a less efficient way to increase risk?

They are IMO clearly unique risks, whatever you think about the risk vs. behavioral story. That is demonstrated simply by looking at the annual correlations Beta to size has been about 0.4, size to value about 0. and Value to Beta about 0.1 Those numbers change everything. I didn't realize the corr...
by jmk
Mon Mar 11, 2013 5:27 pm
Forum: Investing - Theory, News & General
Topic: Aren't V & S a less efficient way to increase risk?
Replies: 10
Views: 1453

Re: Aren't v & s a less efficient way to increase risk?

Thank you and that is helpful. I don't personally think it's intuitive that distressed or small companies have unique risk beyond just more of the good old equity risk. Of course I'm not qualified to take on Fama and French. But Bogle seems to agree with me. I compare this so-called value/small risk...
by jmk
Mon Mar 11, 2013 11:23 am
Forum: Investing - Theory, News & General
Topic: Aren't V & S a less efficient way to increase risk?
Replies: 10
Views: 1453

Aren't V & S a less efficient way to increase risk?

I'm confused about the purported benefits of value and small equities. Suppose value or small funds have higher risks (and expected returns) compared to the market as a whole. If you tilt to value or small your expected return goes up but so does your risk. Since expenses are much higher (as is turn...
by jmk
Sat Mar 09, 2013 9:30 am
Forum: Personal Consumer Issues
Topic: What's Your Favorite Hot Sauce?
Replies: 84
Views: 5535

Re: What's Your Favorite Hot Sauce?

Sontava.
Belize habanero, line, carrots.
by jmk
Thu Feb 28, 2013 11:54 am
Forum: Forum Issues and Administration
Topic: Relation of this to M* forum?
Replies: 7
Views: 974

Relation of this to M* forum?

At one point this site mirrored the M* boglehead forum, right? Are posts here now separate?
by jmk
Thu Feb 28, 2013 11:53 am
Forum: Investing - Help with Personal Investments
Topic: Rule-of-thumb for when expensive 401/403/457 not worth it?
Replies: 4
Views: 403

Rule-of-thumb for when expensive 401/403/457 not worth it?

Many 401/403/457s have hig- ER funds plus extra yearly fees, either worked into ER or as a separate percentage. There tend to be distribution fees. etc. Of course one should max out IRAs and matched 401s first. But how about after that point? For the average investor in the accumulation phase, is ev...
by jmk
Wed Feb 27, 2013 2:19 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover Question: Vanguard index IRA vs. TIAA Cref 403B
Replies: 22
Views: 4325

Re: Rollover Question: Vanguard index IRA vs. TIAA Cref 403B

Doesn't TIAA add a fee (either direct or the expense ratio) if you use Vanguard funds through them in a 403b?
by jmk
Wed Feb 27, 2013 10:18 am
Forum: Investing - Help with Personal Investments
Topic: Managing needs when equities put in taxable
Replies: 5
Views: 502

Re: Managing needs when equities put in taxable

This seems to be a common misunderstanding of tax efficiency....; if your tax-deferred account is larger than your bond allocation, then stock index funds also benefit from being placed in tax-deferred accounts. I see that now, and thx. I do feel my rather obvious main point should be emphasized mo...
by jmk
Tue Feb 26, 2013 10:35 pm
Forum: Investing - Help with Personal Investments
Topic: Managing needs when equities put in taxable
Replies: 5
Views: 502

Re: Managing needs when equities put in taxable

Thanks!. That is exactly the situation I was asking about. The rub is identified in the article: Make sure your taxable account is large enough. If your taxable account is not large enough, say twice as large as the cash needs, then you may not have enough money in your taxable account during a mark...
by jmk
Tue Feb 26, 2013 10:05 pm
Forum: Investing - Help with Personal Investments
Topic: Managing needs when equities put in taxable
Replies: 5
Views: 502

Managing needs when equities put in taxable

It's said one should treat all your assets as a whole and allocate the bond portion in tax sheltered and the equity portion in taxable accounts. This might work if you never needed to touch it, But how does one handle the many big expenses of life that come along the way before retirement? Replacing...
by jmk
Wed Dec 21, 2011 7:31 pm
Forum: Personal Finance (Not Investing)
Topic: What happens when IRA RMD not taken by death?
Replies: 1
Views: 473

What happens when IRA RMD not taken by death?

If an IRA's RMD of $2000 was not taken prior to the owner's death, and his trust is the beneficiary, when is his RMD due? The trustees/beneficiaries will be setting up Stretch IRAs of their own with their own RMDs. But there might not be time to file the paperwork to get permission to take the decea...