Search found 295 matches

by Liquid
Fri Feb 03, 2012 3:35 pm
Forum: Investing - Help with Personal Investments
Topic: REITs in Roth and Taxable Accounts
Replies: 22
Views: 7948

Re: REITs in Roth and Taxable Accounts

David Swensen author of Unconventional Success recommends a 20% of equity allocation to REITS. I am curious of his thoughts on International REITS now that they are available. While I can not provide his thoughts, international REITS do not provide the protection of 90% passthrough that we enjoy, I...
by Liquid
Fri Feb 03, 2012 1:39 pm
Forum: Investing - Theory, News & General
Topic: "The only way to extreme wealth is buying individual stocks"
Replies: 105
Views: 8662

Re: "The only way to extreme wealth is buying individual sto

Maths on that calculation is off by $20M! Excel function, =FV(.1628,47,17000) = $125,074,326.23 ...and the 401k wasn't available to the general public until 1978 so lop 5 years off and he's left with a paltry $58M :p Hmm seems you are right, 125M then, terrible online compound interest calc. :x Fra...
by Liquid
Fri Feb 03, 2012 12:56 pm
Forum: Investing - Help with Personal Investments
Topic: Trying to be more tax efficient
Replies: 9
Views: 971

Re: Trying to be more tax efficient

Change your placement for all new investments for sure. Then you need to figure out what the hit will be right now, compared to the small drag of paying taxes on dividends on one fund vs another if you exchange them. If it were me, I would just keep what I have in place but direct new funds the mos...
by Liquid
Fri Feb 03, 2012 12:53 pm
Forum: Investing - Help with Personal Investments
Topic: My portfolio 2.0
Replies: 4
Views: 481

Re: My portfolio 2.0

Your emergency fund appears to be on life-support.
by Liquid
Fri Feb 03, 2012 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: Save or Spend?
Replies: 19
Views: 2160

Re: Save or Spend?

So, I'm forced to accept vastly reduced risk adjusted returns on my overall portfolio. How long will this go on? It seems to me like it might be a more permanent condition than many of us would like. This is pure speculation, and no different from asking in a bear market --> stocks are down, this m...
by Liquid
Fri Feb 03, 2012 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: For Gold owners, is it part of your Equity Allocation?
Replies: 42
Views: 2199

Re: For Gold owners, is it part of your Equity Allocation?

I don't want to have a discussion about the validity of Gold as part of an Asset Allocation --- For those with Gold, do you count it in as part of your Equity allocation? In the following breakdown, do you feel I have a 65% or 50% equity exposure? 50% - domestic, international, REIT 15% - Gold 35% ...
by Liquid
Fri Feb 03, 2012 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: Turning wealth into health
Replies: 101
Views: 9464

Re: Turning wealth into health

It's time for me to shed off quite a few pounds! From your experience, what is the most effective use of money in the effort to do that? Here are a few options that I am considering. I would appreciate sharing experiences. Buying a treadmill Gym membership Coach Weight-loss camp Go on a 30-day trek...
by Liquid
Fri Feb 03, 2012 12:33 pm
Forum: Investing - Help with Personal Investments
Topic: Trying to be more tax efficient
Replies: 9
Views: 971

Re: Trying to be more tax efficient

To each their own. However, 5K will likely be small potatoes to the tax hit when you have millions invested, cheers.
by Liquid
Fri Feb 03, 2012 12:31 pm
Forum: Investing - Theory, News & General
Topic: Found winning active fund manager?
Replies: 51
Views: 2590

Re: Found winning active fund manager?

I have a good friend who runs a value equity fund of about 30 stocks who is very succesfull has been able to beat the market over past 5yrs, cumulative 5yr return of 24.7% after fees beating 95% of all equity mutual funds. Should i invest a portion of my portfolio with him? He is very smart and see...
by Liquid
Fri Feb 03, 2012 12:27 pm
Forum: Investing - Theory, News & General
Topic: "The only way to extreme wealth is buying individual stocks"
Replies: 105
Views: 8662

Re: "The only way to extreme wealth is buying individual sto

Or invest $138K/year in VFINX @ CAGR 10.3% and in 35 years you've got your $40M. Which is more feasible for the average Joe? Joe Sixpack barely graduates high school. He works hard as a plumber clearing 50k per year. His favorite math teacher always told him he should invest in a 401k, and thats th...
by Liquid
Fri Feb 03, 2012 4:11 am
Forum: Investing - Help with Personal Investments
Topic: Trying to be more tax efficient
Replies: 9
Views: 971

Re: Trying to be more tax efficient

You may want to rearrange for more efficiency, and take a small tax hit if need be, before your holdings become too enormous.
by Liquid
Fri Feb 03, 2012 1:55 am
Forum: Investing - Theory, News & General
Topic: "The only way to extreme wealth is buying individual stocks"
Replies: 105
Views: 8662

Re: "The only way to extreme wealth is buying individual sto

To me, being an early startup employee, not a cofounder, is similar in a lot of ways to picking an individual stock. If you're accepting lower wages in exchange for company stock options, then you're making a financial bet on one company. Next, to get the largest payoff you usually have to hold the...
by Liquid
Fri Feb 03, 2012 1:47 am
Forum: Investing - Help with Personal Investments
Topic: Trying to get started...
Replies: 8
Views: 671

Re: Trying to get started...

jkcrow2315 wrote: What is the best way to go to start this process? Is it absolutely necessary to go seek investment advice from a retail stock broker or can I try my luck with online trading?
As mentioned the best thing to do is nothing, while you read. Online trading is hazardous to your wealth.
by Liquid
Fri Feb 03, 2012 1:39 am
Forum: Investing - Theory, News & General
Topic: Strangest definition of "diversification" ever
Replies: 8
Views: 1060

Re: Strangest definition of "diversification" ever

Adjusting for the effects of other variables, readers with three or fewer types of investments reported median retirement savings of $246,000, compared with $539,000 for those with seven or more types. They are confusing cause and correlation. We see these "diversified portfolios" all the time here...
by Liquid
Fri Feb 03, 2012 1:32 am
Forum: Investing - Help with Personal Investments
Topic: Took a Tad Off the Table
Replies: 24
Views: 4270

Re: Took a Tad Off the Table

empb wrote:Aren't we all up 5.5% this year?
:lol:
by Liquid
Fri Feb 03, 2012 12:52 am
Forum: Personal Finance (Not Investing)
Topic: Keep my car or buy new car?
Replies: 73
Views: 4201

Re: Keep my car or buy new car?

tibbitts wrote: Plus, you have to consider that safety has moved on since 1992.
+1, a death trap is not worth it IMO. Kudos for the impressive reliability though.
by Liquid
Fri Feb 03, 2012 12:47 am
Forum: Investing - Theory, News & General
Topic: New Fiduciary Standard Coming?
Replies: 22
Views: 2175

Re: New Fiduciary Standard Coming?

I was almost fired because I brought up the idea of Vanguard to a client when I was a broker at Smith Barney. Brokers won't/can't recommend something they don't get paid to sell, even if it is in the best interest of a client. Rick Ferri :shock: I suppose I should not be surprised by this, but still.
by Liquid
Fri Feb 03, 2012 12:42 am
Forum: Investing - Theory, News & General
Topic: "The only way to extreme wealth is buying individual stocks"
Replies: 105
Views: 8662

Re: "The only way to extreme wealth is buying individual sto

That was actually the point of my analogy. Italy taking over Europe (again) vs long term 15%/year small value performance (again). In neither case should we extrapolate the past into the future. Nick I believe I gave an adequate proviso to the 15% figure, which was not the point. The point was that...
by Liquid
Fri Feb 03, 2012 12:26 am
Forum: Investing - Theory, News & General
Topic: Facebook IPO will be the biggest disaster in IPO history
Replies: 151
Views: 15870

Re: Facebook IPO will be the biggest disaster in IPO history

IPO's in general have a rather poor history. Big hat, little cattle syndrome.
by Liquid
Thu Feb 02, 2012 7:20 pm
Forum: Investing - Help with Personal Investments
Topic: 21 Year Old Investment Noob
Replies: 10
Views: 889

Re: 21 Year Old Investment Noob

mym1990 wrote: I need cat scans for the rest of my life but that is the only thing that is certain, so i will be putting a good chunk away for medical expenses should they ever arise.
Lots of radiation...
by Liquid
Thu Feb 02, 2012 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: how often do u write checks?
Replies: 79
Views: 5132

Re: how often do u write checks?

Very infrequently.
by Liquid
Thu Feb 02, 2012 7:06 pm
Forum: Investing - Theory, News & General
Topic: "The only way to extreme wealth is buying individual stocks"
Replies: 105
Views: 8662

Re: "The only way to extreme wealth is buying individual sto

I prefer small growth, but for a 15% 40 year return, every stock in the index would have to double in value, on average, every 5 years for 40 years. Probability of this happening is about the chance of Italy taking over Europe . Nick Well there was the Roman Empire, so historically the odds are abo...
by Liquid
Thu Feb 02, 2012 7:02 pm
Forum: Personal Finance (Not Investing)
Topic: Frugal Use of an Amazon Gift Card?
Replies: 23
Views: 2543

Re: Frugal Use of an Amazon Gift Card?

I have a few Amazon gift cards piled up between Coinstar and Christmas gifts. I am going through an anti-consumer, low buying phase right now so I am trying not to buy too much except for food and products that save money in the long run, like the Kill A Watt meter and refillable water bottles. Any...
by Liquid
Thu Feb 02, 2012 6:56 pm
Forum: Investing - Theory, News & General
Topic: New Fiduciary Standard Coming?
Replies: 22
Views: 2175

Re: New Fiduciary Standard Coming?

This would be wonderful for many investors, though may cost Bogleheads as index funds are inundated.
by Liquid
Thu Feb 02, 2012 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: Gut my Roth IRA to buy a house?
Replies: 55
Views: 4655

Re: Gut my Roth IRA to buy a house?

Hector wrote:I would rent in desired location.
+1 Why not rent and save for the down payment? I would not gut my Roth.
by Liquid
Thu Feb 02, 2012 2:02 pm
Forum: Investing - Theory, News & General
Topic: "The only way to extreme wealth is buying individual stocks"
Replies: 105
Views: 8662

Re: "The only way to extreme wealth is buying individual sto

I prefer small growth, but for a 15% 40 year return, every stock in the index would have to double in value, on average, every 5 years for 40 years. Probability of this happening is about the chance of Italy taking over Europe. Nick Not really, few of hundreds-thousands in the SV category explode a...
by Liquid
Thu Feb 02, 2012 1:51 pm
Forum: Personal Finance (Not Investing)
Topic: Keep my car or buy new car?
Replies: 73
Views: 4201

Re: Keep my car or buy new car?

The Elantra has been described as a wet noodle, I suspect your will miss your WRX.
by Liquid
Thu Feb 02, 2012 1:39 pm
Forum: Investing - Help with Personal Investments
Topic: Unemployed with $200,000?
Replies: 24
Views: 3920

Re: Unemployed with $200,000?

You gave us nothing to work with as noted. Nevertheless, some ideas. Purchase an extremely cheap home in cash to avoid rent. Severely cut expenses. Put the rest of the money in a safe bank account paying interest. Find a job, any job ASAP. Look for ideal job AFTER finding any job.
by Liquid
Thu Feb 02, 2012 1:30 pm
Forum: Investing - Theory, News & General
Topic: "The only way to extreme wealth is buying individual stocks"
Replies: 105
Views: 8662

Re: "The only way to extreme wealth is buying individual sto

Donno. Seems to me a Boglehead could invest in 100% global small value and walk away in 40 years with "extreme wealth." :greedy 15% (caution* theoretical *caution) return compared to Buffet's 20% is not to shabby, especially considering he is a manager and business owner not simply a passive investor.
by Liquid
Thu Feb 02, 2012 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: Home is a Consumption Item, Not an Investment
Replies: 111
Views: 12658

Re: Home is a Consumption Item, Not an Investment

http://dictionary.reference.com/browse/invest A home is an investment. It maintains value expectantly, and expectantly, its nominal gain will not be taxed if <500K (if married?, whatever the figure is), so it avoids inflation tax. It behavorially and functionally, is an investment de facto, because...
by Liquid
Thu Feb 02, 2012 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: Share Your Money-Saving "Secrets" Here
Replies: 110
Views: 11654

Re: Share Your Money-Saving "Secrets" Here

mwm158 wrote:It's pretty easy not to spend money.
+1

It actually takes more effort to spend money than to do nothing. Simply sit on your hands, and count your imputed gold bullion as it rolls in. :lol:
by Liquid
Thu Feb 02, 2012 1:03 pm
Forum: Investing - Help with Personal Investments
Topic: Motley Fool Stock Advisor
Replies: 21
Views: 6900

Re: Motley Fool Stock Advisor

Congratulations on having so much money invested at such a young age! If the Motley Fool system worked consistently on a risk-adjusted basis, no one would be a Boglehead. We'd all be on the Motley Fool board! Obviously, this is a philosophical choice. My prediction is that if you did the Motley foo...
by Liquid
Thu Feb 02, 2012 1:00 pm
Forum: Investing - Theory, News & General
Topic: residential real estate as an investment,
Replies: 78
Views: 9818

Re: residential real estate as an investment,

Interesting and useful article, thanks for sharing. Purchasing a property based solely on anticipated appreciation is speculation (though this can be an educated guess based on local factors, etc). This is not accurate though: "There are things you can do with investments -- like rebalance and tax-m...
by Liquid
Thu Feb 02, 2012 12:43 pm
Forum: Investing - Help with Personal Investments
Topic: Wellington (5 star) vs. VTSMX (4 star)
Replies: 5
Views: 1282

Re: Wellington (5 star) vs. VTSMX (4 star)

Morningstar's star rating system is neigh useless.
by Liquid
Thu Feb 02, 2012 12:40 pm
Forum: Investing - Theory, News & General
Topic: Why you need a Roth IRA
Replies: 12
Views: 1862

Re: Why you need a Roth IRA

To Roth! :beer
by Liquid
Wed Feb 01, 2012 10:33 pm
Forum: Investing - Theory, News & General
Topic: Will you be investing in the Facebook IPO?
Replies: 67
Views: 9069

Re: Will you be investing in the Facebook IPO?

No, I will not be helping facebook execs to cashout.
by Liquid
Wed Feb 01, 2012 9:41 pm
Forum: Investing - Theory, News & General
Topic: Gene Fama on Econtalk
Replies: 12
Views: 2679

Re: Gene Fama on Econtalk

Fascinating discussion, thanks for sharing. Of note though, I do not agree that "I don't know" is a compelling alternative theory.
by Liquid
Mon Jan 23, 2012 5:55 pm
Forum: Investing - Theory, News & General
Topic: Vanguard - What we believe: Risk
Replies: 21
Views: 2195

Re: Vanguard - What we believe: Risk

BigD53 wrote:Yes, it's a terrible example. Vanguard needs to get real. How many people have a portfolio of several Million dollars?

(Let's hear it for the 99%! :lol: )
Apparently a lot of Bogleheads.

http://www.bogleheads.org/forum/viewtop ... st=1276622
by Liquid
Mon Jan 23, 2012 5:53 pm
Forum: Investing - Theory, News & General
Topic: Vanguard - What we believe: Risk
Replies: 21
Views: 2195

Re: Vanguard - What we believe: Risk

Liquid – If I understand your “end of study period” comment correctly, it does not represent the Monte Carlo approach. From the entire population of years 1926-2009, I’m using statistics for return-rate probability distributions: arithmetic means, standard deviations, and correlation coefficients. ...
by Liquid
Mon Jan 23, 2012 12:46 pm
Forum: Investing - Theory, News & General
Topic: Vanguard - What we believe: Risk
Replies: 21
Views: 2195

Re: Vanguard - What we believe: Risk

I contend that the conclusion reported by Vanguard is invalid – that 100% stocks should be reported as having a higher 45-year failure rate, as well as more risk of failure much earlier. What I contend makes the Vanguard conclusion invalid is the inadequacy of their samples. They used just one 45-y...
by Liquid
Mon Jan 23, 2012 12:36 pm
Forum: Investing - Theory, News & General
Topic: My Annual Hedge Fund update
Replies: 24
Views: 2572

Re: My Annual Hedge Fund update

Hedge funds continue to perform exceptionally

for fund managers.
by Liquid
Mon Jan 23, 2012 12:29 pm
Forum: Investing - Help with Personal Investments
Topic: 27yo, $165k assets, help with high return portfolio
Replies: 17
Views: 2149

Re: 27yo, $165k assets, help with high return portfolio

YDNAL wrote: 10-15% returns and lowest risk possible is pie in the sky.
True.
by Liquid
Mon Jan 23, 2012 12:27 pm
Forum: Investing - Help with Personal Investments
Topic: 27yo, $165k assets, help with high return portfolio
Replies: 17
Views: 2149

Re: 27yo, $165k assets, help with high return portfolio

Rick Ferri's 30 year asset class forecast has a highest nominal return of 8.5% for emerging markets and 7.5% for US small cap. If one were to prowl around the range of estimates that might be found, there are probably pundits who would take those numbers over 10%. Obviously the point is that the vo...
by Liquid
Sun Jan 22, 2012 11:59 pm
Forum: Investing - Help with Personal Investments
Topic: Lifecycle Investing Leverage Strategy Using LEAPS - How To?
Replies: 136
Views: 14670

Re: Lifecycle Investing Leverage Strategy Using LEAPS - How

After three years of debt repayment, and I mean really massive bills arriving every month, I've built up such an aversion to debt and leverage that I'll never take these kinds of risks again. My portfolio managed a 13% gain last year, and by living modestly and saving, it's grown to $200K. Perhaps ...
by Liquid
Sun Jan 22, 2012 11:37 pm
Forum: Personal Consumer Issues
Topic: Do you take showers or baths
Replies: 15
Views: 2009

Re: Liquid showers

VictoriaF wrote:
Liquid wrote:I shower once a year, whether I need it or not.
Being Liquid, even once a year must be tricky.

Victoria
Tricky, but not impossible. I do find a yearly evaporation to both cleansing and relaxing.
by Liquid
Sun Jan 22, 2012 11:27 pm
Forum: Investing - Help with Personal Investments
Topic: 27yo, $165k assets, help with high return portfolio
Replies: 17
Views: 2149

Re: 27yo, $165k assets, help with high return portfolio

Sure, for example, a small-cap blend index fund has expected long-term returns of >10%. Please note this is not an endorsement. Where did this number come from? Nominal or real returns? Different people make different estimates of expected returns for different asset classes, but they're all just t...
by Liquid
Sun Jan 22, 2012 11:23 pm
Forum: Personal Finance (Not Investing)
Topic: good place for storing short term money
Replies: 8
Views: 1478

Re: good place for storing short term money

Bank savings accounts are available ~1% intrest currently.