Search found 2218 matches

by Random Walker
Sun Aug 24, 2008 4:33 pm
Forum: Investing - Help with Personal Investments
Topic: Can I rollover a 401K without leaving the job?
Replies: 11
Views: 2791

Can I rollover a 401K without leaving the job?

Can I roll over a 401K into my IRA while I am still employed at the current job? I am actually concerned that the current employer might go bankrupt and the 401K could be lost. Is a 401K at any more or less risk than a 403b? Thanks.

Dave
by Random Walker
Sun Aug 24, 2008 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: Help with integrating 529 into portfolio
Replies: 5
Views: 1218

I struggled with the same thing

I like the idea of looking at your finances in the whole, from top down. I believe that the 529 tax benefits are potentially magnified by putting money into the accounts as early as possible. So if you can afford to do so, I would fill those accounts up as early as possible. What I have done is I ha...
by Random Walker
Sun Aug 17, 2008 10:40 pm
Forum: Investing - Theory, News & General
Topic: Article: Paying off mortgage early & interesting data
Replies: 17
Views: 3897

Something that Can't be Measured

One benefit of paying off the mortgage that I have found is that it provides some financial muscle for me to stick with my chosen AA. I think it adds a little backbone for me to "stay the course" when things don't look so hot.

Dave
by Random Walker
Sat Aug 16, 2008 1:06 pm
Forum: Investing - Theory, News & General
Topic: thought you might enjoy this short video-The Big Rocks
Replies: 4
Views: 1129

Thanks

Larry,
I've read your books. Enjoyed them all. Knew what you were going to say in the interviews and still enjoyed them tremendously. It's great to hear the personality behind the books.

Dave
by Random Walker
Sat Aug 02, 2008 10:46 pm
Forum: Investing - Theory, News & General
Topic: Do Options, Futures, etc. increase market efficiency?
Replies: 5
Views: 1569

Do Options, Futures, etc. increase market efficiency?

I'm currently reading A Demon of Our Own Design by Richard Bookstabber. I'm just getting started, but I think the thesis is that all of the tremendously complicated financial innovations that exist today (options, futures, hedging, and whatever else is out there) has actually contributed to making t...
by Random Walker
Wed Jul 02, 2008 12:28 pm
Forum: Investing - Theory, News & General
Topic: The Intelligent Portfolio: some different points of view
Replies: 5
Views: 1691

The Intelligent Portfolio: some different points of view

I'm currently reading the Intelligent Portfolio. Overall it seems like a very Boglehead type book. But a few thoughts in the book seem very contrary to all my other reading. For example: 1. the book refers to rebalancing as making a market timing bet. 2. the book states that growth has greater expec...
by Random Walker
Sun Jun 22, 2008 12:32 pm
Forum: Investing - Theory, News & General
Topic: One of the Best Retirement Decisions - Scott Burns
Replies: 10
Views: 2852

Start Small and Stay Small

If you don't buy a big house in the first place, then you never need to worry about downsizing! A lot of money can be saved and invested if you never make the jump to a big house. I have a 1 year old now and another on the way. I'm becoming convinced that the smaller the house, the less trouble she ...
by Random Walker
Sun Jun 22, 2008 12:19 am
Forum: Investing - Theory, News & General
Topic: Can TIPs substitute for CCFs in a portfolio?
Replies: 2
Views: 1126

Can TIPs substitute for CCFs in a portfolio?

I'm curious if anyone feels that the affect on a portfolio from TIPs and CCFs are similar. I guess another way to ask this question is "what is the correlation between TIPs and CCFs". I am enamored with the effect of CCFs on a porfolio. I find it intrigueing that a lower returning asset cl...
by Random Walker
Mon Jun 09, 2008 8:52 pm
Forum: Investing - Theory, News & General
Topic: Barton Biggs - War, Wisdom, Wealth
Replies: 3
Views: 1134

Barton Biggs - War, Wisdom, Wealth

Just started reading a good book. I've never liked history, but thought I should learn about WWII. This book is by the Wall Street legend, Barton Biggs. The book is about 3/4 WWII history written in a very enjoyable, readable fashion, and 1/4 description of how the various stock markets around the w...
by Random Walker
Sun May 18, 2008 1:02 pm
Forum: Investing - Theory, News & General
Topic: Money Magazine Does Good!!!
Replies: 6
Views: 2424

Money Magazine Does Good!!!

We have all been trained to view the monthly financial magazines as "financial porn" with their frequent "10 best stocks to buy now" columns. But Money Magazine deserves some serious credit here. In the June issue they have an article titled "The Only 7 Investments You Need ...
by Random Walker
Fri May 16, 2008 8:16 pm
Forum: Investing - Theory, News & General
Topic: Did Vanguard ERs Just Drop Again?
Replies: 2
Views: 1965

Did Vanguard ERs Just Drop Again?

I was just browsing the portfolio watch section of the Vanguard website and I noticed that my average ER is lower than I remember it. I have a pretty well diversified portfolio and my overall ER is 0.12%. I think that is amazing!!! My most expensive fund is 0.25%. What amazing value Vanguard provide...
by Random Walker
Fri May 09, 2008 7:51 pm
Forum: Investing - Theory, News & General
Topic: Question from Four Pillars
Replies: 6
Views: 2666

Good Companies make bad stocks

The performance of a company is not what matters. It is the performance of the company relative to expectations. Good companies have such great hopes and expectations built into their current price that future expected returns are likely to dissappoint. I think the value premium for "bad compan...
by Random Walker
Fri Apr 25, 2008 7:35 pm
Forum: Investing - Theory, News & General
Topic: Vanguard CCFs Fund?
Replies: 3
Views: 1494

Vanguard CCFs Fund?

Do you think Vanguard might offer a commodity futures fund similar to the PIMCO fund PCRIX someday? For that matter, why does Vanguard not offer some of the diversifiers that many of us might be interested in: e.g international small value, tax managed value, international real estate, foreign bonds...
by Random Walker
Fri Apr 25, 2008 7:31 pm
Forum: Investing - Theory, News & General
Topic: Bond Funds versus Ladder Individual Bonds
Replies: 2
Views: 1597

Bond Funds versus Ladder Individual Bonds

Lot's of very intelligent people have recommended laddering individual bonds instead of using index (or near index) bond funds. Is the only reason costs, or are there other reasons. To me the Vanguard bond fund expenses (especially admiral shares) are extremely low. With the fund you get expert mana...
by Random Walker
Mon Apr 21, 2008 9:14 am
Forum: Investing - Theory, News & General
Topic: Sex and stock trading
Replies: 4
Views: 1843

Sex and Stocks

Adds new meaning to HOT Stock Tip!
Dave
by Random Walker
Sun Apr 20, 2008 10:04 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle at Obama/Clinton debate
Replies: 15
Views: 5925

I believe Mr. Bogle is one of the major contributors to the Constitution Center in Philadelphia, where the debate was held. I wouldn't be surprised if his attendance was more a reflection in his dedication to the institution, the political process, and the constitution itself, than any particular po...
by Random Walker
Sun Mar 23, 2008 1:35 pm
Forum: Investing - Theory, News & General
Topic: Sleeping better. It's calmer during the day, too!
Replies: 8
Views: 2678

Completely Agree

I agree. With a diversified portfolio, there should always be something to smile about. Even with heavy equity allocation, you can smile when it goes up and smile when it goes down because the future expected return increases. Haven't slept since your child was born 30 years ago? UhOh, I just had my...
by Random Walker
Sun Mar 23, 2008 1:20 pm
Forum: Investing - Theory, News & General
Topic: Sleeping better. It's calmer during the day, too!
Replies: 8
Views: 2678

Please see my post above: Stocks keep you young

I posted above about how investing can keep people more interested in life and feel younger. Now I realize there is a big difference between day trading and sticking to a fixed equity oriented portfolio, but I bet you still enjoy the stock action from the Boglehead standpoint. Life is more interesti...
by Random Walker
Sun Mar 23, 2008 1:15 pm
Forum: Investing - Theory, News & General
Topic: Charles Ellis: Stay Young by Investing in Stocks!
Replies: 1
Views: 899

Charles Ellis: Stay Young by Investing in Stocks!

I'm re-reading Ellis' Winning the Loser's Game. I find chapter 17 extremely worthwhile to read during volatile times like this. He describes how an individual's time frame might not just be a function of his age. It might be a function of the ages of those around him or a function of financial goals...
by Random Walker
Fri Mar 21, 2008 10:18 am
Forum: Investing - Theory, News & General
Topic: "High net worth investors"
Replies: 25
Views: 6100

The Real Big Money

Larry has pointed out in a few of his books that the real big money is the pension funds and endowments. If there is any smart and big money that is where it is. If I recall, about 40% of this real big money is indexed. I'm currently taking an investing class at the local college. it's supposed to b...
by Random Walker
Thu Mar 20, 2008 11:39 am
Forum: Investing - Theory, News & General
Topic: Another Reason to Hold Bonds
Replies: 47
Views: 10233

Unbelieveable but True!

Lower correlation between asset classes tends to bring the geometric mean closer to the arithmetic mean of returns. If another asset class is added that only has a mild effect on expected return but a much more significant lack of correlation, then the addition of a lower returning asset class can a...
by Random Walker
Tue Mar 18, 2008 2:23 pm
Forum: Investing - Theory, News & General
Topic: Mr. Market Needs Some Lithium!!!
Replies: 6
Views: 1634

Mr. Market Needs Some Lithium!!!

These ups and downs are certainly reflective of a bipolar personality. Lithium can help stabilize this. Of course if Mr. market has a borderline personality disorder, then it won't do any good. Although Lithium may help Mr. Market, we are more likely to benefit from prozac or pepcid. 2-3% changes pe...
by Random Walker
Mon Mar 17, 2008 1:30 pm
Forum: Investing - Theory, News & General
Topic: Ways to Stay Calm in Bad Markets
Replies: 27
Views: 6313

Bracketology

How can I possibly worry about the stock market now? I've got to get my brackets set before the first tip-off tomorrow night.
by Random Walker
Tue Mar 11, 2008 12:11 pm
Forum: Investing - Help with Personal Investments
Topic: Father in law annuity v. Rollover AA
Replies: 3
Views: 1236

Father in law annuity v. Rollover AA

My father in law is 70 years old. He is considering an ING variable annuity with overall expenses of approximately 3% per year. Of course the salesman will make sure my father in law is in the best funds. I'm proposing that instead of an annuity he simply rollover his assets into a Vanguard IRA acco...
by Random Walker
Mon Mar 10, 2008 8:25 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation/Investing Goals
Replies: 4
Views: 1323

You are on the right track

I am a strong believer in a top down approach: looking at the entire portfolio as one entity. That being said, you need to do it with an understanding of your own personal circumstances. One's own circumstances can easily encompass several different time frames for different goals. Rather than actua...
by Random Walker
Mon Mar 10, 2008 8:15 pm
Forum: Investing - Theory, News & General
Topic: Jonathan Clements in Sunday WSJ
Replies: 12
Views: 3419

Is it investable?

Requirements for a good investment: low cost, low turnover, adds to portfolio efficiency, and the asset class must be easily investable. For me easily investable means there is a Vanguard fund (not ETF) that covers the asset class. So as much as I would like to invest in international RE, I do not a...
by Random Walker
Sat Mar 08, 2008 8:53 pm
Forum: Investing - Theory, News & General
Topic: Bob Brinker book interview: Predictably Irrational
Replies: 10
Views: 2982

Bob Brinker book interview: Predictably Irrational

On the BB show today, Bob interviewed the author of a book called Predictably Irrational. Sounds like a very interesting and enjoyable behavioral finance book by an MIT professor (regretably I forgot his name). Has anyone read this book? Apparrently it is strongly recommended by the author of Wisdom...
by Random Walker
Sat Mar 08, 2008 8:49 pm
Forum: Investing - Theory, News & General
Topic: Did Market Timer Bob Brinker Make the Correct Call?
Replies: 27
Views: 11112

Honeybee88

I don't think we differ significantly. If 1450 is a buying opportunity, then obviously 1300 is more of one. I don't know if his all-in numbers rep-resent bottoms that he does not think the market will drop below or not. Buying all-in at 1450 and dollar cost averaging at 1300 does not make sense to m...
by Random Walker
Sat Mar 08, 2008 7:22 pm
Forum: Investing - Theory, News & General
Topic: Did Market Timer Bob Brinker Make the Correct Call?
Replies: 27
Views: 11112

1450, then 1300

I'm a big Bob Brinker fan and I subscribe to his newsletter. That being said, I think he has proved himself human recently. In the last half year or so, he has recommended dollar cost averaging in above the mid 1450's and at 1450's and lower he has considered a buying opportunity. Now that the marke...
by Random Walker
Wed Feb 27, 2008 12:47 pm
Forum: Investing - Theory, News & General
Topic: For those interested Radio Interview with Bob Brinker
Replies: 48
Views: 13664

Ditto on the market timing issue

I am a huge BB fan. Almost everything I've learned about investing is the result of his reading list. All the Boglehead authors are on the list. Ironically, every book and author he recommends says you cannot time the market. It seems this is his only non boglehead tenet. I have never followed his t...
by Random Walker
Sun Feb 24, 2008 8:22 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Large Cap Value Fund, NOT Tax Efficient? Help.
Replies: 42
Views: 8478

would you let the tax dog wag the AA tail?

I actually have forgone the value tilt in my aa because it is predominantly taxable. But i am a big believer in the value tilt. I have substituted tax managed small cap for small cap value. Do people feel value tilt is worth the tax hit or not? Thanks.
Dave
by Random Walker
Thu Feb 14, 2008 8:31 pm
Forum: Investing - Help with Personal Investments
Topic: college costs
Replies: 28
Views: 5788

Vanguard Web Site

FWIW, the Vanguard college planning site uses a 6% yearly increase in college costs. I think this sounds pretty reasonable: a bit (maybe 2 bits) above inflation.

Dave
by Random Walker
Tue Feb 12, 2008 12:32 pm
Forum: Investing - Theory, News & General
Topic: slice and dice with high annual contribution?
Replies: 5
Views: 1136

I am in a similar position

About 12-13% of my annual contributions fit into my tax advantaged space. I too would like to add a value tilt and possibly even add commodities. But from my allocation below you can see the compromises I've made. Total Stock Market 37.5% Tax Managed Small Cap 12.5% Europe 10% Pacific 10% Emerging 1...
by Random Walker
Mon Feb 11, 2008 1:13 pm
Forum: Investing - Theory, News & General
Topic: Tax-efficiency of value funds - update
Replies: 9
Views: 2615

Value tilt in taxable?

Do the benefits of value tilt outweigh the potential costs in a taxable account? I am very interested in value tilt, but after TIPs and REITs I have no additional room in tax deferred accounts. I would really like to have a small value tilt. Instead I am using tax managed small cap in taxable accoun...
by Random Walker
Sat Feb 09, 2008 10:23 am
Forum: Investing - Help with Personal Investments
Topic: Can CCFs or precious metals improve this AA?
Replies: 6
Views: 1719

With regard to international. I like the idea of rebalancing between the three funds. I was impressed by the change in the EAFE composition over the last 25 years as shown in Rick's book. I must admit this is the fun part of my portfolio. I like seeing how the 3 funds move in relation to each other....
by Random Walker
Fri Feb 08, 2008 7:11 pm
Forum: Investing - Help with Personal Investments
Topic: Can CCFs or precious metals improve this AA?
Replies: 6
Views: 1719

Tramper Al

I posted a minimally simpliied version of the portfolio. Overall I have 10% short bonds. In tax deferred accounts it is short term bond index fund and in taxable it is limited term munis.

Dave
by Random Walker
Fri Feb 08, 2008 3:00 pm
Forum: Investing - Help with Personal Investments
Topic: Can CCFs or precious metals improve this AA?
Replies: 6
Views: 1719

Can CCFs or precious metals improve this AA?

I am 45 years old and this is my portfolio Taxable Total Stock Market 37.5% Tax Managed Small Cap 12.5% Europe 10% Pacific 10% Emerging Markets 10% Short Term Bonds 10% Tax Deferred REIT 5% TIPs 5% I'm currently reading Gibson's 4th edition Asset Allocation. It has made me very interested in commodi...
by Random Walker
Thu Feb 07, 2008 1:48 pm
Forum: Investing - Theory, News & General
Topic: Wealth Building
Replies: 25
Views: 5236

Food and Asset Allocation

If you do enough eating and drinking, then you do not need to worry so much about the effects of inflation and outliving your money. In fact you can probably create an asset allocation formula that has an inverse relationship between the number of calories consumed and the percent allocated to stock...
by Random Walker
Thu Feb 07, 2008 12:50 pm
Forum: Investing - Theory, News & General
Topic: Wealth Building
Replies: 25
Views: 5236

Taxes as a fraction of net worth instead of income

I read in The Millionaire Next Door that one should think about their yearly taxes as a percent of their net worth in addition to a percent of their income. I don't really have much control over my yearly employment income and consequently my yearly taxes on employment income. But by managing all of...
by Random Walker
Thu Feb 07, 2008 12:43 pm
Forum: Investing - Theory, News & General
Topic: Great Quote: Gibson's Next Edition is Out
Replies: 24
Views: 7310

Is Gibson getting into the Larry v. Rick debate?

I'm about half way through the 4th edition now. I too previously read the 3rd. He clearly says something that I think Larry will agree with and I believe is the crux of the argument between Larry and Rick. Gibson states (footnote p. 162) that the addition of an asset class with lower expected return...
by Random Walker
Tue Feb 05, 2008 5:48 pm
Forum: Investing - Theory, News & General
Topic: Great Quote: Gibson's Next Edition is Out
Replies: 24
Views: 7310

Ouch!!!

I've got to respectfully disagree. I do agree that the book is primarily written for financial planners. It appears to be a guide for planners to use to create a productive relationship with their clients. It instructs planners to instill a substantial amount of financial knowledge in their clients....
by Random Walker
Tue Feb 05, 2008 4:25 pm
Forum: Investing - Theory, News & General
Topic: Great Quote: Gibson's Next Edition is Out
Replies: 24
Views: 7310

Great Quote: Gibson's Next Edition is Out

One of the best investing books that I have read is Asset Allocation: Balancing Financial Risk by Roger Gibson. Finally found the new 2008 edition at the bookstore. This one is updated with lessons from the 2000-2003 bear market. I highly recommend the book. One great quote I found in the book today...
by Random Walker
Thu Jan 17, 2008 4:06 pm
Forum: Investing - Theory, News & General
Topic: International Correlations
Replies: 2
Views: 838

International Correlations

Do you think correlations between the various worldwide stock markets (US, Eur, Pac, and EM) are on the rise for good?
by Random Walker
Tue Jan 01, 2008 10:38 pm
Forum: Investing - Theory, News & General
Topic: Has anybody read Muhlenkamp's new book?
Replies: 1
Views: 862

Has anybody read Muhlenkamp's new book?

The book is called Ron's Road to Wealth by Ron Muhlenkamp. I've only just started the book, but so far it is very interesting. He basically reviews his last 40 years in investing with an emphasis on inflation, changes in inflation, and effects on stocks and bonds. So far I've seen a great explanatio...
by Random Walker
Sat Dec 29, 2007 8:30 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard's Tax Exempt Bond Funds
Replies: 14
Views: 3314

Ltd Term Muni Fund

I too use bonds entirely for risk control. The risk for me is on the equity side. Therefore I keep the duration quite short. I use the limited term tax exempt. I thought this was plenty short enough at duration 2.7 years.
Dave
by Random Walker
Sat Dec 29, 2007 8:24 pm
Forum: Investing - Help with Personal Investments
Topic: Do you treat 529 as part of total asset allocation
Replies: 5
Views: 1608

I'm a Lumper

Like Livesoft, I incorporate the 529 as part of my overall AA. I like thinking of everything under one umbrella. It's convenient for me that my retirement time is about the same time as junior going to college, but I think I would take this approach either way. As junior gets older, the % bonds in t...
by Random Walker
Tue Dec 25, 2007 8:03 pm
Forum: Investing - Help with Personal Investments
Topic: OOPs, we contributed too much to a 529
Replies: 8
Views: 1749

529

Ilan1h, You and I are on the same page of the playbook. I'm hoping that this one year sacrifice will be all that is needed. I expect to get about 6% return. It's all in total stock market. I actually think it's going to be a close call. At 6 percent over 17 years, I think the 120K can grow to 300-35...
by Random Walker
Tue Dec 25, 2007 4:49 pm
Forum: Investing - Help with Personal Investments
Topic: I've never tax loss harvested
Replies: 17
Views: 4537

I've never tax loss harvested

This is my portfolio: Total Stock Market 37.5% Tax Managed Small Cap 12.5% Europe 10% Pacific 10% Emerging Market 10% REIT 5% Short Bonds 10% TIPs 5% I've never tax loss harvested. I keep my holdings very close to their above weights with DCA of new money. I just took note of some of the dividends I...
by Random Walker
Tue Dec 25, 2007 4:06 pm
Forum: Investing - Help with Personal Investments
Topic: OOPs, we contributed too much to a 529
Replies: 8
Views: 1749

OOPs, we contributed too much to a 529

My wife and I believe the 529 plans are an extraordinary opportunity. It seems to us that the earlier money is in the account, the bigger the advantage. I know each parent can contribute 12,000 per year and that you can effectively front load 5 years worth in a single year. That means a couple can p...
by Random Walker
Sun Dec 16, 2007 1:56 pm
Forum: Investing - Theory, News & General
Topic: Global Bonds
Replies: 27
Views: 4374

Depends on purpose of bonds in your AA

I think if the purpose of bonds in your AA is simply for risk control, then there is not much need for global bonds. For accumulators with high percent stocks in portfolios I do not see much use for ex US bonds. The relatively light allocation to US bonds achieves the goal for that portion of the po...