Search found 223 matches

by zie
Fri Feb 26, 2021 10:58 am
Forum: Investing - Theory, News & General
Topic: Asset Classes Expected Behaviour
Replies: 9
Views: 714

Re: Expected Behavior

Bogleheads: One of the major benefits of owning a total stock market index fund (or 500 Index fund) is that we are not concerned about "Expected Behavior" which requires time and study (probably to no avail). Jason Zweig explains: I Don't Know, and I Don't Care. Best wishes. Taylor Jack B...
by zie
Thu Feb 25, 2021 3:49 pm
Forum: Investing - Theory, News & General
Topic: Asset Classes Expected Behaviour
Replies: 9
Views: 714

Asset Classes Expected Behaviour

So I'm back. I'm trying to understand various asset classes and what the expected behaviour is of the various assets. This is what I've come up with so far. Gold(IAU and friends) are expected to basically keep up with inflation and to be a "flight to safety". i.e. when stocks/economies cra...
by zie
Mon Feb 22, 2021 4:14 pm
Forum: Personal Consumer Issues
Topic: Typical Lifespan of Generac Propane-Powered, Standby Generator
Replies: 46
Views: 3388

Re: Typical Lifespan of Generac Propane-Powered, Standby Generator

It can depend on the particular model. We have a previously installed 8kw Generac that is no longer sold, because so many problems were encountered. It was Generac’s attempt to hit a lower price point, and the compromises weren’t that well thought out. I believe that it’s 9 years old. I am going to...
by zie
Fri Feb 19, 2021 11:04 am
Forum: Personal Investments
Topic: Financially Ready for Early Retirement? Numbers Check.
Replies: 16
Views: 3723

Re: Financially Ready for Early Retirement? Numbers Check.

If you want to be thorough, and you are accounting for new expenses, you also need to account for reduced expenses. For example, my wife is now a stay at home mom, but when working had a long commute (120 miles 2 or 3 times a week). Between gas, tolls, and projected longevity of the cars that commu...
by zie
Fri Feb 19, 2021 10:39 am
Forum: Investing - Theory, News & General
Topic: M1 money supply
Replies: 40
Views: 3396

Re: M1 money supply

I think the only definition of inflation that matters to americans, and probably a large part of the world(since the US is so much of the global market) is how the Federal Reserve defines it. They are the people that are in charge of inflation in the USA. Inflation is the increase in the prices of g...
by zie
Thu Feb 18, 2021 7:28 pm
Forum: Personal Investments
Topic: Financially Ready for Early Retirement? Numbers Check.
Replies: 16
Views: 3723

Re: Financially Ready for Early Retirement? Numbers Check.

Did you account for healthcare? That can run 20k/yr. (1.8M+900k+430k)*4% = $125,200/yr So using the 4% rule you are just barely there, not including the pensions, Social Security or the 180k you need extra in the first 6 years. pensions = 25k+27k+44k = $96,000/yr So in 12-ish years almost all of you...
by zie
Tue Feb 16, 2021 7:41 pm
Forum: Personal Consumer Issues
Topic: How do Bogleheads cloak their biometrics?
Replies: 13
Views: 1627

Re: How do Bogleheads cloak their biometrics?

Security professionals have long tried to inform people that biometrics work great as a "username" (identification) but fail badly for use as a password( authorization). Lots of implementors have so far lost sight of this fact, and I think it will take at least one giant dump of bioinforma...
by zie
Sun Feb 14, 2021 12:51 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 8805
Views: 857691

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

Has there not been an update since the March 18th post? I am curious to how this is performing now. Is there any other test out there that someone has done similar to this and had it work out? It's stupidly easy to find out: https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=...
by zie
Sun Feb 14, 2021 12:42 pm
Forum: Personal Investments
Topic: Anyone here have a golden butterfly portfolio?
Replies: 45
Views: 9785

Re: Anyone here have a golden butterfly portfolio?

As I understand it, the gold is to decrease volatility and to hedge insane inflation a little. BTC so far does neither of those things, as far as I'm aware. BTC is like 100% volatility. Gold is like 0% volatility, opposite ends of the spectrum. We have no idea how BTC will handle crazy insane infla...
by zie
Sat Feb 13, 2021 8:41 pm
Forum: Personal Investments
Topic: Anyone here have a golden butterfly portfolio?
Replies: 45
Views: 9785

Re: Anyone here have a golden butterfly portfolio?

Given recent events - I’m beginning to see Bitcoin filling a similar role as gold in the future. As such, I’m considering splitting the gold component of the golden butterfly to be 50/50 gold/btc. Curious if any others have implemented this as such. I know so far it’s not indicating a gold-like res...
by zie
Thu Feb 11, 2021 2:12 pm
Forum: Investing - Theory, News & General
Topic: Trying to understand how ER fees are spent.
Replies: 61
Views: 3516

Re: Trying to understand how ER fees are spent.

Vanguard offers MANY funds, but this trust only seems to concern itself with a few. Who owns all the others? https://www.vanguard.com/pub/Pdf/sai040.pdf You have to look up the SAI for each fund. Some, as you saw, will be grouped with others. They contain a lot more detail about fund expenses than ...
by zie
Thu Feb 11, 2021 1:02 pm
Forum: Investing - Theory, News & General
Topic: Trying to understand how ER fees are spent.
Replies: 61
Views: 3516

Re: Trying to understand how ER fees are spent.

Vanguard offers MANY funds, but this trust only seems to concern itself with a few. Who owns all the others? https://www.vanguard.com/pub/Pdf/sai040.pdf You have to look up the SAI for each fund. Some, as you saw, will be grouped with others. They contain a lot more detail about fund expenses than ...
by zie
Mon Feb 08, 2021 10:24 pm
Forum: Investing - Theory, News & General
Topic: Trying to understand how ER fees are spent.
Replies: 61
Views: 3516

Re: Trying to understand how ER fees are spent.

There are, and it is quite robust. A fund’s ER must reflect the fund’s cost. It is explicit that one fund can’t subsidize another. That's good to know. I had assumed some of the really low (like 0%) ER index funds out there were loss leaders for other products. Thanks for the correction! There are ...
by zie
Mon Feb 08, 2021 10:45 am
Forum: Investing - Theory, News & General
Topic: Trying to understand how ER fees are spent.
Replies: 61
Views: 3516

Re: Trying to understand how ER fees are spent.

zie , if you have objections to the amount of money collected as fees or how it is spent, there is an alternative: You could construct your own "index fund" out of individual stocks! With the DJIA, that would "only" be 30 stocks to buy. (You could also do this with the top 30 --...
by zie
Sun Feb 07, 2021 11:43 pm
Forum: Investing - Theory, News & General
Topic: Trying to understand how ER fees are spent.
Replies: 61
Views: 3516

Re: Trying to understand how ER fees are spent.

IIRC the majority of costs is coming from investment management. i.e. the portfolio manager. Generally they charge a fixed percentage of the AUM. I think the fund has hit maximize efficiency of scale. So bigger isn’t going to lower the cost here. If what you are describing is this: Investment Advis...
by zie
Sun Feb 07, 2021 9:02 pm
Forum: Investing - Theory, News & General
Topic: Trying to understand how ER fees are spent.
Replies: 61
Views: 3516

Re: Trying to understand how ER fees are spent.

Several different questions If you want more details on expenses, look at the Statement of Additional Information. I suspect the SAI will tell you how much V pays to law firms and accounting firms. It probably will not tell you how much of that money went to lawyers and accountants. Vanguard, I ass...
by zie
Sun Feb 07, 2021 7:27 pm
Forum: Investing - Theory, News & General
Topic: Trying to understand how ER fees are spent.
Replies: 61
Views: 3516

Re: Trying to understand how ER fees are spent.

are you saying because vanguard's not a publicly traded company it's hard to see how much they're paid? Fidelity is privately held so that's hard too. Schwab is publicly traded. See what Walter W. Bettinger II got: https://www1.salary.com/Walter-W-Bettinger-II-Salary-Bonus-Stock-Options-for-SCHWAB-...
by zie
Sun Feb 07, 2021 7:11 pm
Forum: Investing - Theory, News & General
Topic: Trying to understand how ER fees are spent.
Replies: 61
Views: 3516

Re: Trying to understand how ER fees are spent.

Just to compare Vanguard total actual expenses to some of their competitors: VTSAX 1,079,425,760,000 * .0004 =  431,770,304 iTOT 32,280,000,000 * .0003  =  9,684,000 FSKAX 57,710,000,000 * .0001  =  5,771,000 SWTSX 13,730,000,000 * .0003  =  4,119,000 Amazing how different they are in real dollar t...
by zie
Sun Feb 07, 2021 6:59 pm
Forum: Investing - Theory, News & General
Topic: Trying to understand how ER fees are spent.
Replies: 61
Views: 3516

Re: Trying to understand how ER fees are spent.

I still don't see why the OP thinks that the total expenses are somehow high. The comparison to other Total Stock funds in dollar amounts doesn't impress me. The bulk of the expense is associated with managing/administering the accounts. I don't KNOW that they are high, I worry that they might be h...
by zie
Sun Feb 07, 2021 4:32 pm
Forum: Investing - Theory, News & General
Topic: Trying to understand how ER fees are spent.
Replies: 61
Views: 3516

Re: Trying to understand how ER fees are spent.

Just to compare Vanguard total actual expenses to some of their competitors: VTSAX 1,079,425,760,000 * .0004 =  431,770,304 iTOT 32,280,000,000 * .0003  =  9,684,000 FSKAX 57,710,000,000 * .0001  =  5,771,000 SWTSX 13,730,000,000 * .0003  =  4,119,000 Amazing how different they are in real dollar te...
by zie
Sun Feb 07, 2021 4:12 pm
Forum: Investing - Theory, News & General
Topic: Trying to understand how ER fees are spent.
Replies: 61
Views: 3516

Re: Trying to understand how ER fees are spent.

cost = .04 * 1,079,425,760,000 cost = 43,177,030,400 So 43.17 Million dollars a year to run VTSAX. yep, here's the problem, two actually: $43,177,030,400 isn't $43 million. it's $43 billion. but that's only because you used .04 instead of .0004. .04 = 4% .0004 = .04% it only costs .04%. still .0004...
by zie
Sun Feb 07, 2021 4:12 pm
Forum: Investing - Theory, News & General
Topic: Trying to understand how ER fees are spent.
Replies: 61
Views: 3516

Re: Trying to understand how ER fees are spent.

cost = .04 * 1,079,425,760,000 cost = 43,177,030,400 So 43.17 Million dollars a year to run VTSAX. yep, here's the problem, two actually: $43,177,030,400 isn't $43 million. it's $43 billion. but that's only because you used .04 instead of .0004. .04 = 4% .0004 = .04% it only costs .04%. still .0004...
by zie
Sun Feb 07, 2021 4:04 pm
Forum: Investing - Theory, News & General
Topic: Trying to understand how ER fees are spent.
Replies: 61
Views: 3516

Re: Trying to understand how ER fees are spent.

I would bet access to the index is higher than your estimate alone. That is a cost that Vanguard cannot even directly control. Obviously, Vanguard also ladens its ERs with the entire costs of the account services as well (the vast majority of their staff). Since this is allocated by fund size (impr...
by zie
Sun Feb 07, 2021 4:00 pm
Forum: Investing - Theory, News & General
Topic: Trying to understand how ER fees are spent.
Replies: 61
Views: 3516

Re: Trying to understand how ER fees are spent.

I think your math is off. 0.04% is .0004 If you look at that annual report , for 2019 it shows almost $390million in expenses across the fund's nearly $900 billion in assets (across all share classes)... (Numbers are all x 1000): https://i.postimg.cc/jS7JjxXF/VTI.png You are totally correct I misse...
by zie
Sun Feb 07, 2021 2:31 pm
Forum: Investing - Theory, News & General
Topic: Trying to understand how ER fees are spent.
Replies: 61
Views: 3516

Trying to understand how ER fees are spent.

I'm trying to do my due diligence and understanding how the ER works, and what those expenses are, but have become sort of stuck and am reaching out to, hopefully, better understand where all my money is going. Expense Ratio is apparently calculated[0] thusly: Expense Ratio = Total Fund Costs / Tota...
by zie
Sat Feb 06, 2021 10:44 pm
Forum: Personal Investments
Topic: How to invest money you may want to use in mid term?
Replies: 39
Views: 4142

Re: How to invest money you may want to use in mid term?

One thing you can do is mix/match your amount in stocks based on your time frame and your desire to accept risk. For instance to my family, I recommend a 20/80 AA fund for savings in the 1-5 year time frame, and more aggressive AA's for more retirement and other longer-term investments. But wait, wh...
by zie
Thu Feb 04, 2021 5:59 pm
Forum: Investing - Theory, News & General
Topic: Educate me about the "naked short" issue
Replies: 44
Views: 3879

Re: Educate me about the "naked short" issue

Naked shorts happen all the time and generally is not a big deal. I would be surprised if this had any real impact with GaneStop. I suspect that this is a bogie man. I agree with this basic point, which seems to me the important one. Considering that limiting to 'regular' shorts itself creates no c...
by zie
Thu Feb 04, 2021 3:51 pm
Forum: Investing - Theory, News & General
Topic: 10 interesting and useful ETFs with less than $1b AUM
Replies: 43
Views: 3378

Re: 10 interesting and useful ETFs with less than $1b AUM

SPCX: the only ETF to invest in pre-acquisition-announcement SPACs VTI doesn’t hold SPACs. Any self-proclaimed Boglehead should be invested in SPCX if they were truly committed to investing in the “haystack”. I agree VTI doesn't invest in SPAC's, so there could be some argument for holding some SPA...
by zie
Sat Jan 30, 2021 11:10 pm
Forum: Personal Consumer Issues
Topic: Off the grid
Replies: 38
Views: 4075

Re: Off the grid

But if this was my property and that was the cost just for hookup I wouldn't even consider a utility. I'd go off-grid in a heartbeat. Well if I was living there all the time it would be one thing....but to ask a family that is renting from us to ration electric use I dont think its a solid plan...w...
by zie
Sat Jan 30, 2021 9:47 pm
Forum: Personal Investments
Topic: Low-budget retirement ideas with $300K to $400K net worth
Replies: 21
Views: 3004

Re: Low-budget retirement ideas with $300K to $400K net worth

You just cut your expenses down to 40k/yr (since you make 80k and saving 50%). That's likely already a pretty big lifestyle change for you. Now you are proposing on living on 300k*4% = 12k/yr; That's yet another MAJOR lifestyle change. Is it possible to live on 12k/yr? Yes. Most people don't like th...
by zie
Fri Jan 29, 2021 5:04 pm
Forum: Personal Consumer Issues
Topic: Off the grid
Replies: 38
Views: 4075

Re: Off the grid

I am off-grid. I agree with vtMaps, being on-grid is usually the better option, though $78k could get you a lot of electricity system, so it might be cheaper to off-grid it. To do off-grid properly, you have to figure out how much electricity you will need. Also, you need to take into account water,...
by zie
Thu Jan 28, 2021 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 1842
Views: 274224

Re: Fidelity as a one stop shop

VictorStarr apparently talks about how to do it further up the thread, here: https://www.bogleheads.org/forum/viewtopic.php?p=5547781#p5547781 So you don't have to click, here is their instructions: Lately, I faced a problem of transfering money to accounts that I do not own (my adult children). If ...
by zie
Mon Jan 18, 2021 7:21 pm
Forum: Personal Investments
Topic: Car note ending, saving for next car
Replies: 29
Views: 2796

Re: Car note ending, saving for next car

I'm not sure I follow on expected overall return on FIKFX being lower than BSJP. I guess it all depends on the overall market and interest rates. Certainly in the recent past, FIKFX has definitely won out over BSJP, though perhaps that trend won't continue. I'm just not sure why you think that? The...
by zie
Mon Jan 18, 2021 5:18 pm
Forum: Personal Investments
Topic: Check up: What am I doing well? What should I change?
Replies: 15
Views: 2224

Re: Check up: What am I doing well? What should I change?

Regarding FI. I totally agree this is a milestone to strive for and one I am very interested in. In short, how do you define Financial Independence? How do you map out the math to project when you reach this milestone? Thank for taking the time to offer a response. I really appreciate it! Generally...
by zie
Mon Jan 18, 2021 5:01 pm
Forum: Personal Investments
Topic: Car note ending, saving for next car
Replies: 29
Views: 2796

Re: Car note ending, saving for next car

Oh! This is interesting. I've been using FIKFX(a 20/80 AA TSM/bond fund) for this use case(and other savings). FIKFX is certainly a reasonable fund to use for something like this. Somewhat lower overall risk and expected return overall than BSJP, but a credible choice. I'm not sure I follow on expe...
by zie
Mon Jan 18, 2021 12:23 pm
Forum: Personal Investments
Topic: Car note ending, saving for next car
Replies: 29
Views: 2796

Re: Car note ending, saving for next car

. 3) A product like BulletShares: This would be "held to maturity". Return of investment highly likely. If you were in my shoes, what would you choose and why? If personally suggest #3 using something like Invesco BulletShares 2025 HY Corp Bd ETF (BSJP). You’ll be averaging into it over 4...
by zie
Mon Jan 18, 2021 11:41 am
Forum: Personal Investments
Topic: SAFE $150K investment
Replies: 10
Views: 1648

Re: SAFE $150K investment

"Roughly in order of safety: * FDIC insured accounts (HYSA, CD's, etc) * Treasuries(to include I/EE bonds, tips, etc) * Money Market funds(MMF) (SIPC insured) * MYGA's (SPIC insured) * Bank Accounts not FDIC insured, i.e. you went over the FDIC limits. * Stable Value Funds (SVF) (Not available...
by zie
Sun Jan 17, 2021 9:16 pm
Forum: Investing - Theory, News & General
Topic: Start Date Sensitivity: A Potentially Important Variable Impacting Portfolios
Replies: 97
Views: 6449

Re: Start Date Sensitivity: A Potentially Important Variable Impacting Portfolios

Pinwheel is a good portfolio but i have 2 problems with it: 1. It holds too much REIT. I'd replace 5% of it with VPU and 5% of it with LEMB. 2. 10% Cash is not needed if one has a stable paycheck. I have only 1-2 months of expenses cash buffer. I understand #2, though 10% could be considered your e...
by zie
Sun Jan 17, 2021 4:06 pm
Forum: Investing - Theory, News & General
Topic: Start Date Sensitivity: A Potentially Important Variable Impacting Portfolios
Replies: 97
Views: 6449

Re: Start Date Sensitivity: A Potentially Important Variable Impacting Portfolios

Right, the question is, turtle or hare? :) The SDS being low is a turtle approach, slow and steady and consistent growth, say a few percent, but pretty much there for any given economic condition. Hence these portfolios as being labeled "permanent". The choice between comparatively high r...
by zie
Sun Jan 17, 2021 12:31 pm
Forum: Personal Investments
Topic: SAFE $150K investment
Replies: 10
Views: 1648

Re: SAFE $150K investment

One, you didn't define "safety". Two, you didn't define your term, i.e. how long do you need to keep this investment safe? Others have hinted or outright asked these questions, but you need good answers to get good suggestions. If you hold FDIC insured or equivalent, than, the $1 will stil...
by zie
Sat Jan 16, 2021 11:17 am
Forum: Investing - Theory, News & General
Topic: Start Date Sensitivity: A Potentially Important Variable Impacting Portfolios
Replies: 97
Views: 6449

Re: Start Date Sensitivity: A Potentially Important Variable Impacting Portfolios

Given a start date of high valuation (with low expected return), low beta portfolios will likely outperform. And given a start date of low valuation (with high expected return), high beta portfolios will likely outperform. The way I look at it, outperformance is better judged internally than extern...
by zie
Fri Jan 15, 2021 9:00 pm
Forum: Personal Consumer Issues
Topic: Secure email provider
Replies: 23
Views: 1968

Re: Secure email provider

Gmail does not scan your emails for ads. This concern is overblown. I agree with the technical bits, but disagree with your overall perspective. Chicago a year ago told Google, give us everything you have on this suspect[0]. And as we know, Google keeps everything possible about you, not just email...
by zie
Thu Jan 14, 2021 12:39 am
Forum: Personal Investments
Topic: Check up: What am I doing well? What should I change?
Replies: 15
Views: 2224

Re: Check up: What am I doing well? What should I change?

I was very lazy with my math, but I came up with a net worth of about 1.5-ish million @ age 60, assuming nothing else changes, and you just max the 19.5k/yr It seems your expenses right now are roughly 84k/yr(35k/7 * 12). At 25x that means you need roughly 2.1 million laying around. So my math could...
by zie
Wed Jan 13, 2021 1:18 pm
Forum: Personal Consumer Issues
Topic: Any real world Tiny House experience here?
Replies: 29
Views: 2150

Re: Any real world Tiny House experience here?

If you don't own the land you are at risk for at least 2 problems: 1) Rent going up. 2) After the landlord cancels the rental agreement for any reason, most mobiles homes after being stuck in 1 place for a while(read a decade or so) are generally not moveable. Otherwise pretty much everyone else cov...
by zie
Thu Jan 07, 2021 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage refinance and loan shuffling
Replies: 5
Views: 583

Re: Mortgage refinance and loan shuffling

Overall seems like a sensible plan. If you consider a mortgage as a negative bond, there is basically no chance your bond holdings will return more than your mortgage interest rate(s) during the next 5 years for sure, and probably longer. So cashing out your bonds to buy back the negative bond seems...
by zie
Thu Jan 07, 2021 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: What did you spend in 2020?
Replies: 204
Views: 12866

Re: What did you spend in 2020?

I spent right around the MIT living wage amount for my current area: https://livingwage.mit.edu/. This does not include my investing which was more than 2x my spend.
by zie
Thu Jan 07, 2021 12:06 pm
Forum: Personal Investments
Topic: Older + no investments + windfall = what to do?
Replies: 13
Views: 2147

Re: Older + no investments + windfall = what to do?

I assume you paid whatever taxes are owed on that windfall already? If you haven't you need to set aside whatever taxes will be owed **FIRST**(both state and federal). Otherwise, I agree take your time here. You won the game, but be smart about the money. Blowing it on cars and houses and whatever e...
by zie
Wed Jan 06, 2021 11:42 am
Forum: Personal Finance (Not Investing)
Topic: Quit Claim Deed? - Adding Fiancee/Wife to House
Replies: 21
Views: 1485

Re: Quit Claim Deed? - Adding Fiancee/Wife to House

You can presumably, get a local judge(or other recognized official in your area) to preform a legal wedding, nothing fancy, only need 4 people total (the both of you a judge and a witness). Do it outside to minimize covid. Once Covid is over, you can then have a real ceremony where everyone comes an...
by zie
Wed Jan 06, 2021 11:22 am
Forum: Personal Finance (Not Investing)
Topic: Estate Planning: Who to Name?
Replies: 20
Views: 1636

Re: Estate Planning: Who to Name?

One of the things I plan on doing once we are past the covid mess, is invite all the people I love and care about out to a vacation(that I mostly/completely pay for) The main reason of course is to just see everyone again, but one of the reasons is to go through my estate planning paperwork with eve...