Search found 1090 matches

by Avo
Thu Jul 13, 2017 7:47 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 3095
Views: 1950052

Re: The Three-Fund Portfolio

Uh, no you don't! This is the Three-Fund Portfolio thread! Three for all and all for three!
by Avo
Thu Jul 13, 2017 6:46 pm
Forum: Personal Investments
Topic: 3 fund vs robo investing program
Replies: 28
Views: 5445

Re: 3 fund vs robo investing program

Mostly fluff, IMO. Of course there are such things as the CAPM and MPT and factor-based investing, but I don't see anyone who actually knows this stuff well (eg Larry Swedroe, various other posters here) coming up with anything like this portfolio. I could be wrong though. Maybe one of our more know...
by Avo
Thu Jul 13, 2017 6:31 pm
Forum: Personal Investments
Topic: 3 fund vs robo investing program
Replies: 28
Views: 5445

Re: 3 fund vs robo investing program

I took a look at a sample Schwab "intelligent" portfolio: http://i64.tinypic.com/s4mk4w.png The design principles here are not at all obvious. Bond allocation seems a combination very risky (half of bonds + cash is in high yield and EM bonds) and money-losing (cash, really? at what interes...
by Avo
Tue Jul 11, 2017 12:20 am
Forum: Personal Consumer Issues
Topic: Moving a car cross country
Replies: 54
Views: 4177

Re: Moving a car cross country

A quick google search turned up this driving service, I'm sure there are more:

http://www.crosscountrydriver.com
by Avo
Mon Jul 10, 2017 1:13 am
Forum: Investing - Theory, News & General
Topic: My Favorite Alternative Funds
Replies: 229
Views: 43119

Re: My Favorite Alternative Funds

Well I'm pretty disappointed with QSPNX, which has been flat for the past 1.5 years:

Image
by Avo
Sun Jul 09, 2017 5:12 pm
Forum: Investing - Theory, News & General
Topic: Weak Evidence for International in Vanguard Research - Am I Missing Something?
Replies: 77
Views: 8730

Re: Weak Evidence for International in Vanguard Research - Am I Missing Something?

Well it seems my V=0.3 is much too high. A standard deviation of 0.1 (that is, 10%) corresponds to a variance of just 0.01. (Variance is the square of standard deviation.) A +/- 50% swing with a linear path (as seen in the 1980s in Nisi's plot) is a variance of just 0.08. With these smaller variance...
by Avo
Sat Jul 08, 2017 2:47 pm
Forum: Investing - Theory, News & General
Topic: Weak Evidence for International in Vanguard Research - Am I Missing Something?
Replies: 77
Views: 8730

Re: Weak Evidence for International in Vanguard Research - Am I Missing Something?

Here's a simple mathematical exercise that I found instructive. Assume the US market and the exUS market both have the same variance. Then the optimal (minimum variance) portfolio is 50-50, no matter what the correlation R between the two markets is. (50-50 is also pretty close to current valuations...
by Avo
Fri Jul 07, 2017 4:38 pm
Forum: Investing - Theory, News & General
Topic: Weak Evidence for International in Vanguard Research - Am I Missing Something?
Replies: 77
Views: 8730

Re: Weak Evidence for International in Vanguard Research - Am I Missing Something?

Well that's a good question.

I would like to see a quantification of currency fluctuations as an expected decrease in Sharpe ratio for intl stocks vs domestic (for a US investor). Surely this has been calculated by somebody somewhere, but I haven't seen it ...
by Avo
Fri Jul 07, 2017 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Long term care insurance - is it worth it?
Replies: 159
Views: 20873

Re: Long term care insurance - is it worth it?

You can take this with a grain of salt, but my Genworth agent (who represents several companies) thinks Genworth is the best in industry for paying claims. YMMV. My wife & I have Genworth policies, purchased a few years ago (we are both 61 now). But you can now find stories online of problems w...
by Avo
Fri Jul 07, 2017 3:39 pm
Forum: Investing - Theory, News & General
Topic: Weak Evidence for International in Vanguard Research - Am I Missing Something?
Replies: 77
Views: 8730

Re: Weak Evidence for International in Vanguard Research - Am I Missing Something?

The diversification benefit of US total market vs S&P 500 is also minimal; but most here recommend total market. Why the dichotomy in thinking? Similarly, it seems to me that the total world market should be the starting point. Then we can discuss reasons for tilting away from it. Possible reaso...
by Avo
Fri Jul 07, 2017 3:29 pm
Forum: Investing - Theory, News & General
Topic: My Favorite Alternative Funds
Replies: 229
Views: 43119

Re: My Favorite Alternative Funds

matjen wrote:you do require an advisor but that is easily accomplished for as little as 1K a year for your entire household
Really? I would be interested in knowing about an advisor with fees this low that gives access to Stone Ridge (and/or DFA).
by Avo
Thu Jun 29, 2017 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: vetting/finding a financial advisor
Replies: 58
Views: 4487

Re: vetting/finding a financial advisor

Buckingham, Larry Swedroe's firm, has an office 1.5 hours from Philadelphia.
by Avo
Thu Jun 29, 2017 11:03 am
Forum: Investing - Theory, News & General
Topic: Tax free investing with hedge funds
Replies: 2
Views: 529

Re: Tax free investing with hedge funds

The numbers in the article implicitly assume that taxes are assessed annually on gains at 39%!

Blatantly dishonest marketing puff piece.
by Avo
Wed Jun 28, 2017 4:14 pm
Forum: Personal Investments
Topic: Should I Sell Energy Index (VDE) and take loss?
Replies: 51
Views: 6497

Re: Should I Sell Energy Index (VDE) and take loss?

I was in a similar situation a couple years ago. I held another energy ETF, IXC, and watched it go down & down. It was about 3% of my portfolio. At the end of 2015, I finally took the tax loss & sold. I haven't looked back until now. I see I sold near the bottom! :shock: I put the proceeds e...
by Avo
Tue Jun 27, 2017 1:33 pm
Forum: Personal Investments
Topic: Is the use of hedge funds an issue for preservation of capital goal
Replies: 6
Views: 667

Re: Is the use of hedge funds an issue for preservation of capital goal

Always passive wrote:My question is whatever the advisor would be liable for the hedge funds' performance in case they go under like some have done.
No! The advisor just collects his fee. As does the hedge fund. No guarantees, no paybacks if it doesn't work out.
by Avo
Tue Jun 27, 2017 12:38 pm
Forum: Personal Investments
Topic: Realizing gains in retirement accounts
Replies: 10
Views: 1004

Re: Realizing gains in retirement accounts

Do you have an asset allocation in mind? That is, what fraction of your investments should be in bonds and in stocks? If not, consider deciding on that as the starting point for how you want to invest. Then, if you are not currently at that allocation (due to rise of stock funds), you should re-bala...
by Avo
Mon Jun 26, 2017 10:33 pm
Forum: Personal Investments
Topic: Anyone know the Wells Fargo total bond fund? (Similar to vanguard)
Replies: 9
Views: 1204

Re: Anyone know the Wells Fargo total bond fund? (Similar to vanguard)

The OP says the funds are now at Vanguard. OP, there are no tax consequences for buying, selling, or exchanging within an IRA. (There may be a transaction fee for selling the WF fund.) So you can sell the WF, and buy a Vanguard bond fund. Since the account is now at Vanguard, Vanguard funds are the ...
by Avo
Mon Jun 26, 2017 7:27 pm
Forum: Personal Investments
Topic: Got out of my groove, multiple moving parts, how to get back in rhythm.
Replies: 2
Views: 710

Re: Got out of my groove, multiple moving parts, how to get back in rhythm.

You need 110 to 135K within a year.

You have 115K in taxable.

I would put it all in cash now.
by Avo
Mon Jun 26, 2017 5:51 pm
Forum: Investing - Theory, News & General
Topic: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry
Replies: 142
Views: 15828

Re: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry

[Larry] would say that you are making a big concentrated bet on a single factor, market beta. SV is diversifying across factors that have low correlations to each other: market, size, value. When one thinks about diversifying acros factors, risk factors, sources of return, the typical 60/40 portfol...
by Avo
Mon Jun 26, 2017 3:16 pm
Forum: Investing - Theory, News & General
Topic: Bond funds vs. Dividend Funds?
Replies: 5
Views: 1071

Re: Bond funds vs. Dividend Funds?

I'd give him a copy of the bogleheads guide, and then leave it alone.

Investing for income (and ignoring principal fluctuations) is a very popular meme. He should not make any changes until he's completely comfortable with the new (to him) investing paradigm.
by Avo
Mon Jun 26, 2017 11:32 am
Forum: Personal Investments
Topic: Looking into selling a structured settlement and need some advice
Replies: 66
Views: 6932

Re: Looking into selling a structured settlement and need some advice

First of all, condolences on the loss that led to this settlement. I am thinking of selling it to begin a business (buying properties and renting them out and also flipping and selling). Do you have any experience doing this? How would it go if you appeared on Shark Tank ? Would the sharks back you ...
by Avo
Mon Jun 26, 2017 10:21 am
Forum: Personal Investments
Topic: Looking to diversify my U.S. stock allocation
Replies: 9
Views: 949

Re: Looking to diversify my U.S. stock allocation

FTIPX, Fidelity Total International Index Fund Premium Class, is a newer fund that includes small caps.
by Avo
Sun Jun 25, 2017 8:23 pm
Forum: Personal Finance (Not Investing)
Topic: Deleted
Replies: 54
Views: 6868

Re: irrevocable trust for children receiving an inheritance

What is the point of a corporate co-trustee? Won't that just get the money invested in non-boglehead ways, at what we would regard as very high fees?
by Avo
Sun Jun 25, 2017 5:32 pm
Forum: Personal Finance (Not Investing)
Topic: Deleted
Replies: 54
Views: 6868

Re: irrevocable trust for children receiving an inheritance

The problem is the trust terminates when the grandchildren turn 30. It was probably not my parents' intention to leave their grandkids this very large sum of money without encumbrances at that age, but as it currently stands that is what will happen. I don't understand why this is a problem. It sou...
by Avo
Sun Jun 25, 2017 4:35 pm
Forum: Investing - Theory, News & General
Topic: How Do You Like My New 'Doo
Replies: 260
Views: 55387

Re: How Do You Like My New 'Doo

Thank you for going through the time and effort to accurately track your performance in picking individual stocks. When I read your opening post about one of your stocks going up 50% in a day, I felt jealous. Then I remembered that when I tried to pick individual stocks, I had one go down 50% in a d...
by Avo
Sat Jun 24, 2017 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Mediator for ownership division of primary home
Replies: 46
Views: 6358

Re: Mediator for ownership division of primary home

Google or Yelp will turn up lots of mediators in your area. Call them and explain the situation and see what they say. I agree that your mom's position makes no sense. I would get an appraisal of the house now, and take the ratio of that to the original sales price as the gain made on each person's ...
by Avo
Sat Jun 24, 2017 2:00 pm
Forum: Investing - Theory, News & General
Topic: How Do You Like My New 'Doo
Replies: 260
Views: 55387

Re: How Do You Like My New 'Doo

For comparison, according to M*, VTSMX (total market) went up by a factor of 3.386830 from 6/7/2002 to 6/7/2017 (15 years), including reinvestment of distributions, which annualized is 8.47%.
by Avo
Sat Jun 24, 2017 1:16 pm
Forum: Personal Investments
Topic: Help me help my 92 yo grandfather
Replies: 11
Views: 1325

Re: Help me help my 92 yo grandfather

I would not take on any management/advice duties. I absolutely positively would not do anything with tax consequences when you have no idea what his tax situation is! But: does he have an estate plan? What happens to his accounts if he can no longer manage them at all due to cognitive decline? A liv...
by Avo
Sat Jun 24, 2017 12:47 am
Forum: Investing - Theory, News & General
Topic: Treasury Direct - only one beneficiary allowed
Replies: 6
Views: 1579

Re: Treasury Direct - only one beneficiary allowed

I believe that's how it was in the days of paper bonds: one co-owner OR one beneficiary, not both.
by Avo
Thu Jun 22, 2017 3:02 pm
Forum: Personal Consumer Issues
Topic: LG washer and dryer "NFC tag on" feature
Replies: 36
Views: 27342

Re: LG washer and dryer "NFC tag on" feature

Of course it would be very easy for the washer to keep track of the number of cycles and then turn on an indicator light when it's time to run the tub-clean cycle, all without having to send this info to a phone ... I recently bought an LG washer with the NFC tag feature, but since I don't have an a...
by Avo
Thu Jun 22, 2017 2:57 pm
Forum: Personal Investments
Topic: 27 year olds: Purchased annuities
Replies: 4
Views: 1131

Re: 27 year olds: Purchased annuities

I don't understand annuities (sorry), but a quick google search turned up this:

https://www.write403bdirect.com/Product/Detail/137
by Avo
Thu Jun 22, 2017 1:44 pm
Forum: Personal Investments
Topic: Allocation Decisions: LENDX, SRRIX and QSPIX
Replies: 63
Views: 18956

Re: Allocation Decisions: LENDX, SRRIX and QSPIX

I do have a modest amount in QSPNX (can't get the I version); I decided to get in before the close, just in case this was something worthwhile long term (I'm still undecided). The fund "seeks to earn a positive total return over a reasonable period of time regardless of market conditions or gen...
by Avo
Thu Jun 22, 2017 11:54 am
Forum: Personal Investments
Topic: Allocation Decisions: LENDX, SRRIX and QSPIX
Replies: 63
Views: 18956

Re: Allocation Decisions: LENDX, SRRIX and QSPIX

QSPIX has been essentially flat since the end of 2015. Does this worry anyone?
by Avo
Thu Jun 22, 2017 1:30 am
Forum: Personal Investments
Topic: Do Indexers Need 401(k) Plans?
Replies: 15
Views: 4169

Re: Do Indexers Need 401(k) Plans?

You don't pay capital gains tax at all on gains on 401k money, whereas you do on taxable. You pay ordinary income tax on both. Example: You make $1000 that you contribute to your 401k. It grows by 50% to $1500. You take out the entire $1500. You pay ordinary income tax of 28% on the total, which is ...
by Avo
Wed Jun 21, 2017 4:11 pm
Forum: Investing - Theory, News & General
Topic: Closet Index fund?
Replies: 31
Views: 3542

Re: Closet Index fund?

Whatever. Most of us are not interested in labeling actively-managed funds that we would not consider buying.
by Avo
Wed Jun 21, 2017 3:47 pm
Forum: Personal Investments
Topic: Financial advisor question
Replies: 58
Views: 7475

Re: Financial advisor question

What's a reasonable fee to pay and should it be capped at a certain amount? Thanks in advance. A benchmark for full-service financial planning and investment management, by a firm that will be a fiduciary to you, is Buckingham Strategic Wealth, the firm of long-time contributor here, and author of ...
by Avo
Wed Jun 21, 2017 3:35 pm
Forum: Investing - Theory, News & General
Topic: Closet Index fund?
Replies: 31
Views: 3542

Re: Closet Index fund?

The phrase "closet index fund" is not precisely defined. Generally it refers to an actively-managed fund whose results closely follow those of a passively managed index fund (for some particular index, like the S&P500), but there is no general agreement on how close the results need to...
by Avo
Wed Jun 21, 2017 12:38 pm
Forum: Personal Investments
Topic: Financial advisor question
Replies: 58
Views: 7475

Re: Financial advisor question

GCCSX is a class C fund, and therefore the 1% load is likely back-end, not front end; meaning that you pay it when you sell, not when you buy; and that it likely does not apply after a certain holding period, usually one year.

Not that any of this matters. The OP is paying far more than necessary.
by Avo
Wed Jun 21, 2017 10:47 am
Forum: Personal Investments
Topic: advise on three fund portfolio
Replies: 5
Views: 1031

Re: advise on three fund portfolio

Yes we ignore all "sell alerts". And "buy alerts".

Who is sending you these? Get them turned off.
by Avo
Wed Jun 21, 2017 1:19 am
Forum: Personal Investments
Topic: Series EE US bonds of deceased
Replies: 7
Views: 1335

Re: Series EE US bonds of deceased

Very sorry for the loss of your son.

You should be able to redeem the bond by filling out a form and mailing it in:

https://www.treasurydirect.gov/indiv/re ... ath.htm#no

You will need a medallion signature guarantee from a bank or credit union.
by Avo
Tue Jun 20, 2017 6:01 pm
Forum: Investing - Theory, News & General
Topic: "Waiting for the Market to Crash is a Terrible Strategy"
Replies: 27
Views: 7324

"Waiting for the Market to Crash is a Terrible Strategy"

I recently came across this article, which seems relevant as the US market keeps hitting new highs:

"Waiting for the Market to Crash is a Terrible Strategy" by Samuel Lee:

http://svrn.co/blog/2017/5/14/waiting-f ... e-strategy
by Avo
Tue Jun 20, 2017 5:44 pm
Forum: Investing - Theory, News & General
Topic: Loss Calc Help - Old Mutual Fund
Replies: 2
Views: 679

Re: Loss Calc Help - Old Mutual Fund

Focus on computing the total cost basis, not the basis per share. Your total cost basis is your original investment, plus the total of dividends and capitals gains that were used to buy additional shares, minus fees paid via share redemption. Then, divide this total cost basis by the current number ...
by Avo
Tue Jun 20, 2017 2:02 pm
Forum: Personal Investments
Topic: Financial advisor question
Replies: 58
Views: 7475

Re: Financial advisor question

That's a great article.

OP, an option is to consult a fee-only fiduciary planner (as explained in the article) for a set fee, and then implement the plan yourself, avoiding ongoing AUM fees.
by Avo
Tue Jun 20, 2017 1:44 pm
Forum: Personal Investments
Topic: Financial advisor question
Replies: 58
Views: 7475

Re: Financial advisor question

Yes, you are paying far more than you need to. You could easily pay zero if you are willing to do a little bit of learning. The hard part (because your "advisor", actually a salesperson, has undoubtedly made things as complicated as possible) will be to make the transition. If you don't fe...
by Avo
Tue Jun 20, 2017 1:17 pm
Forum: Personal Investments
Topic: Please Help Me Understand These Bond Funds
Replies: 4
Views: 1069

Re: Please Help Me Understand These Bond Funds

Long-term bonds are much more sensitive to rising interest rates. Principal will fall in such an environment, which we may be entering. This risk is not visible over the past 10 years (and more), during which interest rates fell.
by Avo
Tue Jun 20, 2017 12:19 pm
Forum: Personal Investments
Topic: Retirement Portfolio - on the right track?
Replies: 4
Views: 1044

Re: Retirement Portfolio - on the right track?

The plan seems overly complicated to me. Where are the accounts currently held? (eg Fidelity, Vanguard?) You could greatly simplify. I would drop the REIT & small-cap tilts, which are too small to make much difference even if they work out (and no guarantee that they will). You could, for exampl...
by Avo
Mon Jun 19, 2017 10:49 pm
Forum: Personal Investments
Topic: selling before the 30 day period FSTA [Fidelity Consumer Staples Index]
Replies: 4
Views: 910

Re: selling before the 30 day period FSTA [Fidelity Consumer Staples Index]

Hold it for the 30 days. While you're waiting, work on formulating a long-term investment plan. If that's not feasible, after you've sold FSTA, just buy FSTMX (total market) instead of Blue Chip (actively managed, high expense ratio) or 500 index (incomplete market representation, possibly subject t...
by Avo
Mon Jun 19, 2017 6:32 pm
Forum: Personal Investments
Topic: In need of suggestions and help
Replies: 5
Views: 819

Re: In need of suggestions and help

Welcome to the forum! First of all, I tend to be more conservative than most here, and even to me, 650% stock at age 30 for a retirement portfolio is much too conservative . I have advised my 28 year old daughter to use Vanguard Target Date 2055, which is 90% stock. So I would recommend 80/20 lifest...
by Avo
Mon Jun 19, 2017 4:13 pm
Forum: Personal Investments
Topic: Please help with this portfolio
Replies: 10
Views: 1262

Re: Please help with this portfolio

In addition to the fund expense rations, the "Advisory Solutions Model" also imposes a very hefty 1.44% AUM fee: https://www.edwardjones.com/investments-services/wealth-management/advisory-solutions/fund-models.html https://www.edwardjones.com/images/advisory-solutions-fund-model-scherdule...
by Avo
Mon Jun 19, 2017 12:06 pm
Forum: Personal Investments
Topic: Please help with this portfolio
Replies: 10
Views: 1262

Re: Please help with this portfolio

It's the usual EJ mess.

Do your parents still trust their EJ advisor? If so, nothing any of us can say here will be relevant.