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by Rick Ferri
Sun Sep 07, 2008 8:38 pm
Forum: Investing - Theory, News & General
Topic: S&P futures trading at 1263 up 21 points
Replies: 32
Views: 5693

Fannie and Freddie served their purpose and now it is time for them to go away. We no longer need government sponsored enterprise to buy and package home mortgages. There is enough private competition for that now.

I am all for the takeover of FNM and FRE, and their eventual dismantling. It is long past the time for the government to let private industry take over and start getting Washington out of that business.

Rick Ferri
by Rick Ferri
Sun Sep 07, 2008 9:43 am
Forum: Investing - Theory, News & General
Topic: CCF impact on overall portfolio returns
Replies: 26
Views: 6074

Several months ago I stopped debating any issue with Rick because of the personal attacks he has made. However, I did continue to point out the factual errors he has made, often repeating the same exact errors. The reason I do that is simple. And the only reason. I want people to have the correct information, the facts, the benefits of the peer review research, etc. With that they can then make up their own mind. Larry, If you have taken anything I have said as a personal attack, then I apologize. That said, this is a debate, and here is how a debate works: There is a systematic way to debate a Proposition put forth by an opponent. Your proposition is that investors should add commodities to a portfolio and I am debating you on this point....
by Rick Ferri
Sat Sep 06, 2008 9:49 pm
Forum: Investing - Theory, News & General
Topic: BOGLEHEADS’ BOOK PROJECT – CALL FOR VOLUNTEERS
Replies: 30
Views: 10536

We are looking for a few good men and women who will work hard and take whatever amount of time and energy is needed to produce quality material. Those folks will be doing this project for personal pride and for the satisfaction in knowing that they are helping MANY other people.

This book will only be published if we get enough dedicated people who are willing to genuinely help. You do not need to be perfect and you do not have to be an experienced writer, but you do have to be committed. So. if you want to make a real difference, volunteer. Don't talk, act!

Rick Ferri
by Rick Ferri
Sat Sep 06, 2008 8:51 pm
Forum: Investing - Theory, News & General
Topic: FNM/FRE Bailout is Imminent
Replies: 32
Views: 6582

Fannie and Freddie are already down over 95% from their highs. If you recall, these companies were at one time very large holdings of Peter Lynch and Warren Buffett. I think it is safe to say that these companies are all done as private entities. Who would have ever guessed this would happen to these rock-solid companies?

The world changes in unpredictable ways, which is why it is good to be an index fund investor. I don't have to predict.

Rick Ferri
by Rick Ferri
Sat Sep 06, 2008 3:27 pm
Forum: Investing - Theory, News & General
Topic: CCF impact on overall portfolio returns
Replies: 26
Views: 6074

Larry,

I was born at night, but not last night. Good luck with your book. I hope your royalties are going to charity.

Rick Ferri
by Rick Ferri
Sat Sep 06, 2008 2:46 pm
Forum: Investing - Theory, News & General
Topic: CCF impact on overall portfolio returns
Replies: 26
Views: 6074

Larry,

I will refrain from comment on this conversation considering you started it to promote your new book, The Only Guide to Alternative Investments You'll Ever Need: The Way Smart Money Diversifies Risk.

Good luck with the book. I hope your royalties are going to a worthy charity.

Rick Ferri
by Rick Ferri
Fri Sep 05, 2008 7:50 pm
Forum: Investing - Theory, News & General
Topic: CCF
Replies: 47
Views: 8886

Dieharder wrote:Isn't it better to add CCF as portfolio insurance against global events that could harm equities and raising inflation.
Like, now?

Have you looked how CCFs are performing in light of the recent downturn in stocks and higher inflation? The PIMCO Commodity Real Return fund is down 25% in the past two months at the same time stocks are approaching new lows and inflation is up. It is all not happening as advertised. This idea that oil is negatively correlated during bad stock markets is not reliable.

If you want portfolio insurance against higher inflation and a bad stock market, put some money in TIPS.

Rick Ferri
by Rick Ferri
Fri Sep 05, 2008 4:17 pm
Forum: Investing - Theory, News & General
Topic: CCF
Replies: 47
Views: 8886

Rick and Larry, is it correct to say that the essence of the disagreement between you is the magnitude and consistency of any benefit that may be achieved by diversifying with CCF's? Is it the case that a large point in contention is that Rick does not agree that examples from backtested portfolios are likely to predict the benefits investors would actually achieve moving forward in practical cases? Thank you. That is a fair assessment that covers about 80% of my concern. There are other reasons, such as higher fees for access. But they are minor compared to my concern that the benefit of this 'asst class' is not what the back-tested data would have you believe. In a sense, are we being fooled by randomness, or is the information actually ...
by Rick Ferri
Fri Sep 05, 2008 2:41 pm
Forum: Investing - Theory, News & General
Topic: CCF
Replies: 47
Views: 8886

The problem with the debate for adding commodities is that it starts with a correlation argument, and that is the wrong place to start. Correlation alone is not a good reason to invest in something. An investment must have a positive total rate of return on its own first to have a true long-term benefit in a portfolio Unfortunately everything stated above, everything is wrong....That is why you look at the WHOLE, not the parts individual. Any effort to do so is simply wrong and produces the wrong answers Stuffing money in a mattress has no correlation with stocks or bonds, and I do not recommend doing that either. Seriously, I am not arguing that there is no MPT benefit from commodities. My argument is that there is not enough long-term be...
by Rick Ferri
Fri Sep 05, 2008 12:19 pm
Forum: Investing - Theory, News & General
Topic: CCF
Replies: 47
Views: 8886

CCF can lower a portfolio's volatility. CCF can allow you to pick up extra fixed income returns by extending duration. CCF can allow you to INCREASE your stock exposure if you buy into the expected negative correlation. That is a bit of a stretch for me but the concept is feasible. I can think of two negatives. First, there is a cost in the form of higher expense ratios for CCFs than stocks. More important, volatility can increase with that approach. Under 'normal' markets it may work, but you have to watch out for the Six Sigma Event when everything goes down together (like the past two months when CCFs are down 25% at the same time stocks are down). Long-term Capital Management thought they had developed a better mouse-trap using such co...
by Rick Ferri
Fri Sep 05, 2008 11:47 am
Forum: Investing - Theory, News & General
Topic: CCF
Replies: 47
Views: 8886

Commodities have negative correlations (at annual level) with both stocks and bonds, but it is not perfectly negative. That means that there will be times when correlations are positive. It doesn't mean that they will always be negative, for a day, week, month or year. This statement is likely true depending on what CCF index is used or manufactured for the analysis. However, it does not fix the low expected real return problem facing commodities over the long-term. The MPT benefit from owning commodities will not make up the lower overall portfolio return from a reduced stock position. You can get lower volatility from CCFs, but you cannot eat it. At some point, Modern Portfolio Theory (MPT) reaches a theoretical limit and Practical Portf...
by Rick Ferri
Fri Sep 05, 2008 7:35 am
Forum: Investing - Theory, News & General
Topic: CCF
Replies: 47
Views: 8886

Most of what Larry wrote about the correlation of commodities is correct. I have done a lot of work showing the commodities are at times negatively correlated with stocks and at times positively correlated. That is not the issue. The problem with the debate for adding commodities is that it starts with a correlation argument, and that is the wrong place to start. Correlation alone is not a good reason to invest in something. An investment must have a positive total rate of return on its own first to have a true long-term benefit in a portfolio. Then you look at the correlations. Commodities fail that initial test. Over the long-term, commodities are the inflation rate, they do not 'beat' the inflation rate. There is no need to go to a corre...
by Rick Ferri
Thu Sep 04, 2008 7:59 pm
Forum: Investing - Theory, News & General
Topic: CCF
Replies: 47
Views: 8886

The S&P 500 is down about 3% today. At the same time oil is down and CCFs are down. Enough said about Larry's fallacy that CCFs are negatively correlated with stocks. It is all variable. There are NOT consistently negatively correlated asset classes. To say otherwise is just plain bad analysis.

Rick Ferri
by Rick Ferri
Thu Sep 04, 2008 9:19 am
Forum: Investing - Theory, News & General
Topic: CCF
Replies: 47
Views: 8886

when you add CCF to a portfolio of stocks and bonds you will find that the impact is far greater than the weighted average contribution of the CCF itself, might be 4-5% higher as I have shown in several examples.
If Larry is trying to imply that adding a CCF fund may add 4%-5% extra return to a portfolio over the expected return of a CCF fund itself, that is exaggeration to the EXTREME. The hypothetical data Larry looked at that covers a specific period of time did show that during that back-tested period, if a CCF actually existed that followed a specific index (not just any commodities index) would have added to return if they were available, which they were not. No real person actually earned those returns.

Rick Ferri
by Rick Ferri
Sun Aug 31, 2008 9:44 am
Forum: Investing - Theory, News & General
Topic: 2008 Super Bowl of Indexing - Bogleheads invited!
Replies: 16
Views: 3962

.

Bumped to the top.
by Rick Ferri
Sun Aug 31, 2008 9:42 am
Forum: Investing - Theory, News & General
Topic: UPDATED OUTLINE FOR NEW BOGLEHEADS’ BOOK
Replies: 49
Views: 10051

Allan wrote:Wow, looks like you’ve covered a lot of important areas. I’m impressed with the range of topics, but it seems to me to do them justice you’re going to end up with a very large book.
Each chapter is to be a "guide" rather than a detailed text book. Each chapter will be 9-12 pages in length and will end with a resource section on where to go to get more information including professional help if applicable.

The Book Committee
by Rick Ferri
Sat Aug 30, 2008 7:20 am
Forum: Investing - Theory, News & General
Topic: UPDATED OUTLINE FOR NEW BOGLEHEADS’ BOOK
Replies: 49
Views: 10051

Thanks for all these great suggestions.

We realize that the topics under each chapter title in the revised outline above are not complete. Our intent is to ensure the outline is not missing any important chapters or including chapters that are unnecessary. For example, based on the boards comments we have included chapters on withdrawal strategies and early retirement strategies, and we have deleted the chapter on college savings.

The first job required of individual chapter author(s) will be to write and submit a detailed outline of their chapter(s) that will cover all the essential topics. Thanks again for all the important input to this ambitious Boglehead community project. Please continue.

The Book Committee
by Rick Ferri
Fri Aug 29, 2008 9:42 am
Forum: Investing - Theory, News & General
Topic: UPDATED OUTLINE FOR NEW BOGLEHEADS’ BOOK
Replies: 49
Views: 10051

Vig, As we discussed in private emails: 1) Is it correct that: The idea of this book is to have non-professionals do the writing, and professionals do the proofing. Yes. That is the intent. 2) Will there be CLUs and estate attorneys (not just JDs) involved in the proofing? That is yet to be determined. It depends on who volunteers. 3) If a "professional" does contribute, will his/her full name be publicized any where? This has to do with insurance for errors & omissions. Yes. Authors will have their forum names and real name (if requested) at the beginning of each chapter. Helpers and experts will have their forum names and real name in the "contributors appendix" if they wish. I don't know what having your name in t...
by Rick Ferri
Thu Aug 28, 2008 10:58 am
Forum: Investing - Theory, News & General
Topic: 2008 Super Bowl of Indexing - Bogleheads invited!
Replies: 16
Views: 3962

Thank you Rick for the invitation. I looked at the web site briefly and found lots of sponsors for this event. I am concerned about being bombarded by the sponsors if I attend the convention. Some companies put on conferences for the general public and they are a sponsor love-fests, like the MoneyShow . At that event, the speakers must pay big bucks to get on stage, and sponsors do an all-out assault on the individual investors who just glance their direction. The Super Bowl of Indexing is not a "show" for the public. It an industry conference focusing on academic research and industry issues. So, no one is going to bombard you or try to sell you anything. If you want to talk to a sponsor, you simply go to that sponsor's booth an...
by Rick Ferri
Thu Aug 28, 2008 8:07 am
Forum: Investing - Theory, News & General
Topic: 2008 Super Bowl of Indexing - Bogleheads invited!
Replies: 16
Views: 3962

FYI, members of the academic community are also invited to contact Janet for information.
by Rick Ferri
Thu Aug 28, 2008 8:04 am
Forum: Investing - Theory, News & General
Topic: Starting an RIA? Feedback
Replies: 61
Views: 10172

I can tell you are not in the money management business because if you were you would know that insurance costs and other client overhead costs are directly related to assets under management. In addition, small investors would be shut out under your scenario because it would not be worth the time or potential liability. Rick Ferri You are right. I am not in the Investment Management business. I made my comments from the perspective of an average investor, who might expect to pay you for your time. In a perfect world, beginning investors would have access to your services. Alas, they will likely have to swim with the sharks for a while before they become a "small investor" who you would take in. Small investors (less than $250k) ...
by Rick Ferri
Wed Aug 27, 2008 4:19 pm
Forum: Personal Investments
Topic: Bill Bernstein's inaugural Money Mag column
Replies: 25
Views: 6623

dbonnett wrote:Rick: give Larry his full due, he's a great writer and teacher. You are miffed because whenever he fights he has a beer can opener in his hand.
Last night Hillary Clinton endorsed Barrack Obama. Today I am endorsing Larry with the same enthusiasm.

Rick Ferri
by Rick Ferri
Wed Aug 27, 2008 3:18 pm
Forum: Personal Investments
Topic: Bill Bernstein's inaugural Money Mag column
Replies: 25
Views: 6623

.
That is good news for Dr. Bernstein and for Money readers. He is a wonderful writer who brings original thought to the investment field and will do a great job for the magazine.

Congratulations to Larry also.

Rick Ferri
by Rick Ferri
Wed Aug 27, 2008 3:11 pm
Forum: Investing - Theory, News & General
Topic: Starting an RIA? Feedback
Replies: 61
Views: 10172

IMO, 1) Any detailed financial planning should be a separate line item on an invoice. 2) It seems logical that a planning fee should reflect the actual hours worked on the plan. That can be hourly or an annual retainer. 3) It does not seem logical to me to base a planning fee on the assets in a managed portfolio because that portfolio is only one small portion of the financial plan. The size of a managed portfolio has little to do with the amount of financial planning a person needs. That is like a CPA firm determine their tax preparation fee based on your taxable income. The amount of time it takes a CPA to do your tax returns is only loosely correlated to taxable income. People would not put up with that billing method. Rick Ferri How ab...
by Rick Ferri
Wed Aug 27, 2008 1:37 pm
Forum: Investing - Theory, News & General
Topic: 2008 Super Bowl of Indexing - Bogleheads invited!
Replies: 16
Views: 3962

2008 Super Bowl of Indexing - Bogleheads invited!

You're invited: The largest annual gathering of index aficionados is the Super Bowl of Indexing. The 4-day event attracts more than 750 academics, index providers, product providers, fiduciaries, trustees, and other other with interest in the field. Last year, Jack Bogle was a guest speaker along with Burton Malkiel , Jeremy Siegel , and Paul Samuelson . This year the event will be held on December 7-10 at the Arizona Biltmore Resort and Spa in Phoenix, AZ. The agenda includes a keynote presentation by Harry Markowitz , Nobel Laureate. I have arranged for Bogleheads who are individual investors to attend the conference at no charge. It is an excellent opportunity to meet some of the movers and shakers in the industry, and really get good in...
by Rick Ferri
Wed Aug 27, 2008 9:48 am
Forum: Investing - Theory, News & General
Topic: Insight into 130/30 strategies
Replies: 19
Views: 5377

According to the SEC, an 'index' is anything anyone wants it to be. The requirements for using an index in a mutual fund is that there is that the holdings of the index must be available daily, and the holdings are supposed to be selected according to a set of published rules, although the rules can be very vague. Consequently, the word 'index' has a different and more obscure meaning in investing today then it did 20 years ago. The best way to combat that 'everything is an index' push by the investment industry is to categorize indexes. I label cap-weighted representations of markets and market sectors as "Market Indexes" and all of the customized stuff as "Strategy Indexes". Market indexes measure the returns of market...
by Rick Ferri
Tue Aug 26, 2008 8:56 pm
Forum: Personal Finance (Not Investing)
Topic: Effect of Olympics on Real Estate Prices?
Replies: 16
Views: 4223

I was living near LA in 1984, home of the summer Olympics. That year there was a housing slump. I also lived in MI during the past lean automotive years. Having the SuperBowl XL in Detroit in 2006 did nothing. Home prices are still declining in MI as good paying auto jobs continue to disappear.

So, I do not think there is any link. Home prices have most to do with job creation in an area. If good paying jobs are increasing, home prices increase and vice versa.

Rick Ferri
by Rick Ferri
Tue Aug 26, 2008 8:19 pm
Forum: Personal Investments
Topic: Collateralized Commodity Futures ? - Larry's Article
Replies: 114
Views: 28692

One paper cited an example of a commodities future earning several percent a year while the spot price lost 3% a year. This may have just been noise of course, but it illustrates that futures don't have to return the same as spot. Why do you think they will? I have looked at that report and noticed it started during a year when commodities happened to be at a very low level. Also, the authors of that index are now marketing their index methodology to investment managers. So, I am not sure there was no financial incentive for the study. I just look at commodities logically. There is no reason to expect commodities or CCFs to outperform inflation. Commodities do not generate interest or dividends. They are not going concerns. They do not gro...
by Rick Ferri
Tue Aug 26, 2008 8:12 pm
Forum: Investing - Theory, News & General
Topic: Home prices are down 15.4% from a year ago
Replies: 68
Views: 14074

That is what the man who created the Case/Shiller index reported today. I tend to think he knows what he is talking about.
by Rick Ferri
Tue Aug 26, 2008 7:01 pm
Forum: Investing - Theory, News & General
Topic: Home prices are down 15.4% from a year ago
Replies: 68
Views: 14074

The housing problem has bottomed. Several areas are showing positive increases, and only a few still have large inventory overhang.

I listened to Karl Case, co-creator of the Case/Shiller Index today on Bloomberg. His outlook was quite positive for housing in most of the country. He said the index is overshadowing the fact that 11 of the 20 regions showed positive price gains over the last measured three month period ending in June. Only the hard hit CA, NV and FL markets were still showing loses. He attributed that to overbuilding in those markets, and he expects the recent government bailout program to help.


Rick Ferri
by Rick Ferri
Tue Aug 26, 2008 12:30 pm
Forum: Investing - Theory, News & General
Topic: Starting an RIA? Feedback
Replies: 61
Views: 10172

If an advisor does a financial plan for a client and therafter they choose that firm to be an investment consultant on their portfolio at .50% (which includes some clearly described ongoing financial planning) rather than Rick's firm at .25% (with no ongoing financial planning) are they the victim of a bait & switch, a conflict of interest or are they perhaps just a savvy consumer? No way to answer without knowing the scope of services provided. Effective tax-management alone might be able to make up a 0.25% differential in advisory fees. - DDB IMO, 1) Any detailed financial planning should be a separate line item on an invoice. 2) It seems logical that a planning fee should reflect the actual hours worked on the plan. That can be hour...
by Rick Ferri
Tue Aug 26, 2008 11:32 am
Forum: Personal Investments
Topic: Collateralized Commodity Futures ? - Larry's Article
Replies: 114
Views: 28692

Re: My conclusions on commodities

A CCF portfolio has three components of return. There probably is a fairly reliable return of about 4% to be earned from rebalancing within a diversified portfolio. That is wildly optimistic. The CRB index has been doing actual daily rebalancing between an equal weighted basked of commodities for over 50 years and the portfolio benefit has only been about 1.0 to 1.5% before fees and commissions. The CRB is a real index, not an not optimized back-filled index. Secondly, there is a reliable return of about 1% to be earned in interest from collateral. Interest expenses are built into futures prices. A 1% return from interest means that there should be a 1% lower return from price appreciation over spot. There is no free lunch in the futures m...
by Rick Ferri
Tue Aug 26, 2008 11:22 am
Forum: Investing - Theory, News & General
Topic: Insight into 130/30 strategies
Replies: 19
Views: 5377

Larry, You are trying to debate a meaningless topic, i.e. what is “the theory” behind active management. It an irrelevant point because “theory” does not lead well to “reality”, which is why we all agree that low-cost passive investing is the best option for most people. As a CFA, money manager, and former investment management consultant, I happen to find investment theories of personal interest. By understanding active strategies and then comparing the expected returns to the actual returns is the reason I become a true believer in indexing. Many active management strategies look terrific on paper (or “in theory”), however the actual results are typically quite different and not impressive. This is one reason I am against ETF companies be...
by Rick Ferri
Mon Aug 25, 2008 5:29 pm
Forum: Investing - Theory, News & General
Topic: Insight into 130/30 strategies
Replies: 19
Views: 5377

larryswedroe wrote:My only comment is that there is no reason to think that "these funds are fine in theory." There is no logical reason to believe that. There is no evidence to suggest it is true. And the evidence from hedge funds that can engage in such strategies is miserable.
As I said, in theory the active managers should have more knowledge and skill to outperform investors that do not have knowledge or skill. But in practice, that does not happen. So, Larry is simply repeated what I have already said twice, "There is no evidence to suggest it is true."

Rick Ferri
by Rick Ferri
Mon Aug 25, 2008 1:28 pm
Forum: Investing - Theory, News & General
Topic: Starting an RIA? Feedback
Replies: 61
Views: 10172

Re: Correction

Vig Oren wrote:Rick Ferri: I changed the language in my above post to: Rick, MIGHT BE sending clients to Garret Planning .

But, I remember from a post of your that you do or did send. Does it make much difference? :roll:
To be very clear, most of the referrals we make to the Garrett network are people who call in to our company and ask us to do a one-time portfolio review for a fee or provide hourly financial advice. These people are not interest in portfolio management services. Since we are not in the business of one-time portfolio reviews for a fee or hourly financial advice, we refer that business to the Garrett Network. That is what they do.

Rick Ferri
by Rick Ferri
Mon Aug 25, 2008 11:34 am
Forum: Investing - Theory, News & General
Topic: Insight into 130/30 strategies
Replies: 19
Views: 5377

Re: Insight into 130/30 strategies

dmcmahon wrote:I don't understand why the "concept is fine in theory".
Because in theory, active management should work, i.e professionals have information and skill the public does not have and should be able to capitalize on that. It is only in practice that most active management strategies fail to deliver, and it is not possible to separate the future successes from the failures.

Rick Ferri
by Rick Ferri
Mon Aug 25, 2008 9:12 am
Forum: Investing - Theory, News & General
Topic: Insight into 130/30 strategies
Replies: 19
Views: 5377

Insight into 130/30 strategies

130/30 strategies are a relatively new idea being promoted to the public. The strategy revolves around an active management strategy that buys 130% of 'good' stocks and offsets the extra risk by shorting 30% in 'bad' stocks. Thus, the portfolio is supposed to maintain 100% equity exposure (represented as a beta of 1) while supposedly outperforming the stock market. The concept is fine in theory, but remember that these same money managers have a historically had a difficult time picking 'good stocks' that beat the stock market without the extra 30% leverage. Apparently, the newest excuse for under-performance by active managers is that they were limited to only buying stocks (long-only strategies), and could not sell-short bad stocks (long-...
by Rick Ferri
Mon Aug 25, 2008 8:23 am
Forum: Investing - Theory, News & General
Topic: NEW BOGLEHEADS BOOK
Replies: 116
Views: 38008

Re: Who is the target reader?

Barry Barnitz wrote:300 pages would be about right for a proper, full, discussion of 401-k , 403-b, and the IRA types of employer plans, along with a full discussion of defined benefit plans; a consideration of the rollover IRA, and how all these plans distribute income.
The Bogleheads Guide to Retirement Planning will offer introductory level information on many different retirement planning issues, and point to sources were people can get more detailed information. Each chapter will have a resource section at the end. More information on a uniform chapter layout and content level will be provided to authors in coming weeks.

Rick Ferri
by Rick Ferri
Sun Aug 24, 2008 8:06 pm
Forum: Investing - Theory, News & General
Topic: NEW BOGLEHEADS BOOK
Replies: 116
Views: 38008

An ideal team to cover these [insurance] chapters would be Larry Swedroe as a team leader and the team to include: meph, DDB, and BlueMarlin08. Vig Oren, We wish to refrain from having members publicly recommend authors other than themselves because we wish to avoid public debates about who would be a good author and who would not. That serves no useful purpose and may lead to hard feelings. Only volunteers will be involved in this project. This book is being done using an orderly methodology within a strict time line and structure. At this point, we are simply asking for input on a basic outline. What we need is for a specific recommendation on a particular subject that we might be missing, backed up with a few bullet points. We are not a...
by Rick Ferri
Sun Aug 24, 2008 4:22 pm
Forum: Personal Consumer Issues
Topic: "Commodity Price Movements in the Short-Run & Long-
Replies: 1
Views: 1061

So, what he is saying is that we are in for a period of slow price declines until we hit a point that is somewhat higher than where prices where about 5 years ago. That makes sense.

Rick Ferri
by Rick Ferri
Sun Aug 24, 2008 3:37 pm
Forum: Investing - Theory, News & General
Topic: NEW BOGLEHEADS BOOK
Replies: 116
Views: 38008

Vig Oren,

It looks like you already have that chapter written! We will be looking for you to volunteer to be an author.

:D
by Rick Ferri
Sun Aug 24, 2008 1:05 pm
Forum: Investing - Theory, News & General
Topic: NEW BOGLEHEADS BOOK
Replies: 116
Views: 38008

Thank you!

This conversation will remain open through Monday evening. Aug. 25th. If there are any other suggestions not yet mentioned, please post them today (Sunday) or tomorrow (Monday). On Tuesday, the book committee will be compiling suggestions and write a revised outline. The revised outline will be posted on Friday, August 29. We will be seeking comments on that outline at that time.

Thank you for the outstanding contributions so far. There have been some great suggestions and we will attempt to implement them all. Please understand that there 25 chapters in the book, with each chapter will be limited to 12 pages maximum and that entire book will be no more than 330 pages w/ forward, introduction, appendix, index, etc.

The Book Committee
by Rick Ferri
Sun Aug 24, 2008 10:56 am
Forum: Investing - Theory, News & General
Topic: What finance magazines do Bogleheads read?
Replies: 46
Views: 10702

Over the years I got them all; Barrons, Forbes, Fortune, Kiplingers, Money, etc. Now I just receive the WSJ and get all other information on-line.

Rick Ferri
by Rick Ferri
Sun Aug 24, 2008 9:38 am
Forum: Investing - Theory, News & General
Topic: Is the Market itself Broken?
Replies: 32
Views: 5890

"The market climbs a wall of worry."

You can always find reasons not to invest.

.
by Rick Ferri
Sat Aug 23, 2008 2:48 pm
Forum: Personal Investments
Topic: Does this make sense at all? Unchartered territory for me...
Replies: 18
Views: 4079

You could also immediately swap into the Total International Stock Index (VGTSX), hold it for the required 2 months to avoid a redemption fee, then switch back to VFWIX. That way you are not out of the market during the 30 days period and will not miss any upside if it occurs.

Rick Ferri
by Rick Ferri
Sat Aug 23, 2008 2:19 pm
Forum: Investing - Theory, News & General
Topic: NEW BOGLEHEADS BOOK
Replies: 116
Views: 38008

Paul, The way we see it, this book should be a compilation of what the Boglehead community thinks is most important when planning for retirement rather than focusing on investing. The outline posted by Mel is in no way a final outline or even a draft outline. It is a starting point for discussion. Next week, we will compile all the ideas and post an outline that will be much closer to the final. The book is intended to compliment the first Boglehead book and be the second in a series. Thus, we have the Bogleheads on Investing book and now Bogleheads on Retirement Planning . There could be a third book depending on the success of this one that focuses on retirement only, and the title could "Bogleheads on Life in Retirement" or 'Bo...
by Rick Ferri
Fri Aug 22, 2008 4:32 pm
Forum: Investing - Theory, News & General
Topic: NEW BOGLEHEADS BOOK
Replies: 116
Views: 38008

MidPack (and others),

We hear you loud and clear!

Accumulation and distribution phases. Got it!

:wink:
by Rick Ferri
Fri Aug 22, 2008 1:46 pm
Forum: Investing - Theory, News & General
Topic: NEW BOGLEHEADS BOOK
Replies: 116
Views: 38008

savermike wrote:I can probably kick in with proofreading and editing. Does the publisher have a house style guide? Does the project?

Probably isn't fair to start chiming in at this early stage. Nonetheless: worth pointing out that you don't have to retire if you don't want to.

Mike
Mike,

This first post is a simply introduction to the project and a request for thoughts on improving the outline and chapter titles. In the coming weeks, Mel will be posting more information on how to potentially get involved with this project as an author or as a technical expert including proofreader.

Thanks!

The Book Committee
by Rick Ferri
Fri Aug 22, 2008 12:42 pm
Forum: Investing - Theory, News & General
Topic: NEW BOGLEHEADS BOOK
Replies: 116
Views: 38008

Rodc wrote:It seems heavy on investing and light on planning, although of course I haven't seen the text.
There is no text, yet.

At this point we are hoping for specific chapter suggestions to improve on the proposed outline above. The main focus of this book is retirement planning rather than investing. The second Bogleheads book should complement the first Bogleheads book, not replace it.

Rick Ferri
by Rick Ferri
Thu Aug 21, 2008 1:24 pm
Forum: Investing - Theory, News & General
Topic: The Index Premium and its Hidden Cost for Index Funds
Replies: 35
Views: 7567

Derek Tinnin, I completely agree and commend you for using GIPS in your practice. From an insider's prospective, the proper calculation of returns and full disclosure of performance methodology adds tremendously to an advisor's credibility. My suggestion for investors who hire advisors is to establish a relevant composite benchmark in advance and include it in the Investment Policy Statement. The quarterly performance monitor from the advisor should compare the net-of-fee return of a portfolio to the composite benchmark. Each asset class should also be compared to a relevant benchmark, and that benchmark should not be the investment itself. In the case of IFA, their asset class benchmarks for different funds are so-called IFA Indexes, which...