Sacramento Bogleheads ~ Meeting 10:30 AM Sat December 10, 2016

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digarei
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Sacramento Bogleheads ~ Meeting 10:30 AM Sat December 10, 2016

Post by digarei » Sun Dec 04, 2016 2:11 am

......
Announcing the 21st meeting of the...
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S a c r a m e n t o A r e a B o g l e h e a d s
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. . . . . . . . . This event . . . . . . . . .
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Date: Saturday, December 10, 2016

Time: 10:30 AM - 12:30 PM  

Optional lunch follows. Midtown Sacramento.
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. D e c e m b e r • 1 0 t h

. Our FIRST EVER MEETING featuring A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. 'NO AGENDA' AGENDA

- Any & All Topics Entertained
- Unlimited Investor Q & A
- Nominations for Future Topics Accepted
- Bizarre but Interesting Subjects Broached
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

There will be

No Presentations
No Predetermined Topics
No Presidential Predictions


We might have a video or two to watch...
and lots of great discussion!           8-)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Second Saturday in December. All are welcome. Please respond
to the RSVP email so that we can provide a count to our host.

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To reserve a seat:

Include the following info:
  • a.  [First Last] Name
    b.  [Forum] User name
    c.  e-mail address
    d.  phone number
    e.  City
- - - - -
Live in the Sacramento area or its outlying communities?

Attend a meeting of like-minded individuals to participate in the "Live... From Sacramento!" version of the 
Bogleheads forum. We meet at 10:30am every month on Second Saturday at a nice location with free parking.


Click below for more information.

SABH - Frequently Asked Questions
• • •  
Connect with Bogleheads in Northern California! Click the link under my user info/avatar.

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hollowcave2
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Re: Sacramento Bogleheads ~ Meeting 10:30 AM Sat December 10, 2016

Post by hollowcave2 » Sun Dec 04, 2016 12:28 pm

Hey, I'll be there. I'd like to know what Bogleheads think of Factor based investing.

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digarei
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Re: Sacramento Bogleheads ~ Meeting 10:30 AM Sat December 10, 2016

Post by digarei » Mon Dec 05, 2016 11:07 am

hollowcave2 wrote:
Hey, I'll be there. I'd like to know what Bogleheads think of Factor based investing.
Many options here:
  • • You could put that question to the group on Saturday

    • Schedule a time during a future meeting where factors are discussed at length

    • Assemble a slide show and present your own ideas to the group

    • Some combination of the above
I think it's a great topic and merits more discussion than we've been able to give it thus far.

Thank you for proposing this.
Connect with Bogleheads in Northern California! Click the link under my user info/avatar.

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digarei
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Dec 10, 2016 - Sacramento Area Bogleheads - Meeting Summary

Post by digarei » Mon Feb 19, 2018 11:30 pm

• • •  
S a c r a m e n t o A r e a B o g l e h e a d s
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Meeting Summary
• • •  
Saturday, December 10, 2016

'NO AGENDA' Agenda 


No Presentations
No Predetermined Topics
No Presidential Predictions

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SABH  Meeting # 21
• • •  

Meeting Notes for December

Not everything worthwhile occurs when we’re paying attention. Formal classroom education is a superb environment for academic learning but important lessons are also learned on the playground. It’s been said that

Life is what happens to us while we are making other plans. (1)

It was with this in mind that a Sacramento Area Bogleheads meeting was scheduled for the Second Saturday of December 2016 with no set agenda or list of topics to be discussed. Yet the apparent lack of structure didn’t seem to impede the inclination of those who came to establish a natural order, from which discussion arose. The

SIXTEEN (16) investors who attended talked about a number of topics during the two hour meeting; a future presenter took the initiative to kickstart a brief discussion about one aspect of estate planning; someone else found the courage to ask the group for assistance in arriving at an asset allocation he could live with; and the chair managed to break up the segments with several short videos.

In the end, the meeting seemed as structured as any other, and it was the first event in many months that actually started on time and ended on time. The coordinator blames himself: he tried ‘not planning’ but it didn’t work. 😄

Meeting time 10:30 AM - 12:30 PM

First hour

Introductions
Chapter business
• •  Members agree that links to audio may be published
• •  to those who attend meetings and to core members
3 short videos (2)

Second hour

Discussion

One person requested help in determining an Asset Allocation (AA) for retirement funds that he explained were currently invested in an “80/20 fund” at Vanguard but his risk tolerance was low—more than a 10% loss would be too much to bear. These funds will be invested 5-6 years or longer. There was also a portion of savings outside of this account in cash.

Members suggested that he take these actions:
  • 1. Create an emergency fund to cover at least one year of living expenses with high-yield savings or CDs
    2. Incorporate remainder of cash holding into investment portfolio
    3. Establish an overall portfolio AA no higher than 60/40 stocks/bonds
    4. Use Vanguard’s Total Bond Market Index or Intermediate Term Bond Index fund for the bond allocation

Other Topics of conversation

What is Factor Investing and why is it suddenly so popular?

Could we set aside an entire meeting to discuss bonds? (3)

How often should one rebalance? (4)

Next, Christy ("carruthers209") introduced her upcoming four part series on Estate Planning by distributing a handout authored by Taylor Larimore entitled, ‘Letter of Final Instruction’. Its purpose is to aggregate essential personal and financial information that will assist a spouse or child after your death. The letter encapsulates important documents or instructs those who survive you where to locate them. (5)

Discussion of Estate Planning led someone to ask

What happens to bodies donated for medical research and education? (6)

The coordinator then read aloud excerpts from a humorous piece entitled, “Stupid Things Finance People Say”. (7)

“Morgan Housel” wrote:
  • “Earnings were positive before one-time charges.”

    This is Wall Street's equivalent of,

    "Other than that Mrs. Lincoln, how was the play?"


    “He predicted the market crash in 2008.”

    He also predicted a crash in 2006, 2004, 2003, 2001,

    • •  1998, 1997, 1995, 1992, 1989, 1984, 1971...
  • Source: See Notes (7)

The meeting was adjourned at 12:30 PM
• • •  
After the meeting, SIX members met for lunch at Masullo Pizza on Riverside.

Audio recording of this meeting was sent to participants on 12-11-2016.
Meeting notes were completed and posted to the forum on 2-19-2018. 


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Notes   

1) Life is what happens to us while we are making other plans.
Quotation attributed to Allen Saunders.

(2) Videos presented:

“Millennials Can Stop Freaking Out About Investing” (2016) ~ Nir Kaissar (Bloomberg)

"Never Bear Too Much or Too Little Risk" (2009) ~ Rick Van Ness Alternate link

"The Sentiment Cycle"  (2012) ~ Barry Ritholtz

(3) Six months later, there were two meetings dedicated to discussion of bonds:

Bond Basics 6/10/2017
Bond Mania! 7/08/2017

See: June 10, 2017 - Sacramento Area Bogleheads - Meeting Summary

(4) How often should one rebalance?

Vanguard research shows little difference in returns between monthly, quarterly, annual or bi-annual rebalancing. They recommend investors rebalance their portfolios once every year or two should the equity portion exceed their rebalancing band.

“For most broadly diversified stock and bond fund portfolios (assuming reasonable expectations regarding return patterns, average returns, and risk), annual or semiannual monitoring, with rebalancing at 5% thresholds, is likely to produce a reasonable balance between risk control and cost minimization for most investors.”

Best practices for portfolio rebalancing (2015) 16 pp

Vanguard has also published other white papers on this topic:

Portfolio Rebalancing in Theory and Practice (2007) 16 pp
Best practices for portfolio rebalancing (2010) 17 pp

(5) The Letter of Final Instruction could include, for example:

Will and/or Trust
Medical directive, HIPA form
How to contact your
Physician
Accountant
Financial Advisor
Banker
Insurance agent
Location of
Important documents
Safety Deposit Boxes
Investments
Bank accounts

(6) What happens to bodies donated for medical research and education?

One member with first hand knowledge of this topic from her time in medical school said that after use, the bodies are cremated before being returned to donors (typically, family).

(7) Excerpts were read from:

Stupid Things Finance People Say ~ Morgan Housel, The Motley Fool (2013)

• • •  
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SABH Meeting # 21

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