Search found 53 matches

by Eferv
Sat Jan 14, 2012 6:56 am
Forum: Personal Investments
Topic: Compound returns + added contributions calculator
Replies: 4
Views: 554

Compound returns + added contributions calculator

Hi all, Anyone know a good calculator that considers not only a starting sum, rate of return, and ending sum, but also allows for monthly or annual contributions? It would be ideal if I could change the contributions at certain intervals (for me to simulate years of flat wages or a sudden promotion)...
by Eferv
Sun Dec 25, 2011 6:35 am
Forum: Personal Investments
Topic: Swedroe's portfolio shows up in the NYTimes
Replies: 46
Views: 9295

Re: Swedroe's portfolio shows up in the NYTimes

The 40% allocation to TIPS seems like it would really hurt the long term portfolio return. Anyone know why Larry doesn't use other types of bonds (say half in long term T-Bonds)
by Eferv
Sat Dec 24, 2011 6:34 am
Forum: Personal Investments
Topic: Global REIT Recommendations
Replies: 9
Views: 1525

Re: Global REIT Recommendations

It was an interesting response nonetheless, thanks for the info.
by Eferv
Sat Dec 24, 2011 4:06 am
Forum: Personal Investments
Topic: Global REIT Recommendations
Replies: 9
Views: 1525

Global REIT Recommendations

Hi all,

Does anyone know of a good, low expense global REIT ETF?

I know I can create allocations between a US and Ex-US fund but I would prefer a single fund for its simplicity, efficiency, and global cap weighting. This is assuming the expense ratio isn't significantly worse than VNQ + VNQI
by Eferv
Thu Dec 22, 2011 7:56 pm
Forum: Investing - Theory, News & General
Topic: Is Home Bias necessarily bad?
Replies: 51
Views: 6436

Re: Is Home Bias necessarily bad?

^^I sure hope that chart is right. My current plan is

35% US
20% Developed
10% Emerging Markets
by Eferv
Wed Dec 21, 2011 5:55 pm
Forum: Investing - Theory, News & General
Topic: Is Home Bias necessarily bad?
Replies: 51
Views: 6436

Is Home Bias necessarily bad?

Hi, I haven't made my allocation decisions yet but I'm loosely modeling the Swenson Portfolio, which allocates 30% to US stocks, and then only 15% and 10% to Foreign Developed & Emerging Markets. This looks like a home bias. Question is, is that bad? Swenson mentions that US stocks have the best...
by Eferv
Fri Dec 09, 2011 11:41 pm
Forum: Investing - Theory, News & General
Topic: Are REITs overpriced?
Replies: 34
Views: 3478

Re: Are REITs overpriced?

If you widen your timeframe to 100+ years (passing the house down to your kids) then the value of the investment becomes much more apparent. But not an outstanding investment over the past 100+ years: http://i44.tinypic.com/9s6pzr.png Source: Real vs Nominal Housing Prices: United States 1890-2010 ...
by Eferv
Fri Dec 09, 2011 11:21 pm
Forum: Investing - Theory, News & General
Topic: Are REITs overpriced?
Replies: 34
Views: 3478

Re: Are REITs overpriced?

THE VALUE OF THE LAND! Which is included in your purchase. You're not just buying the building; real estate is the whole package (unless you have weird terms) If you just needed a place to live you would rent. You buy a home because real estate is an investment. That's not true. You don't rent,, be...
by Eferv
Fri Dec 09, 2011 11:08 pm
Forum: Investing - Theory, News & General
Topic: Are REITs overpriced?
Replies: 34
Views: 3478

Re: Are REITs overpriced?

ilmartello wrote:THE VALUE OF THE LAND!
Which is included in your purchase. You're not just buying the building; real estate is the whole package (unless you have weird terms)

If you just needed a place to live you would rent. You buy a home because real estate is an investment.
by Eferv
Fri Dec 09, 2011 10:28 pm
Forum: Investing - Theory, News & General
Topic: Calculating historical performance?
Replies: 2
Views: 510

Calculating historical performance?

Hi, I'd like to be able to test my model portfolio allocations for historical returns and drawdown performance. But I'm not sure how to do this. My current test portfolio is: US Large Blend Stk - 22% (VV) US Small Value Stk - 9% (VBR) Foreign Developed Large Mix Stk - 12% (VEA) Ex-US Small Cap Stk -...
by Eferv
Fri Dec 09, 2011 10:22 pm
Forum: Investing - Theory, News & General
Topic: Are REITs overpriced?
Replies: 34
Views: 3478

Re: Are REITs overpriced?

Unless someone plans on being homeless for part of their live they are always going to need shelter. A place you live in as a place you live in. It's a consumer asset. It's not an investment. You are not looking at this from an investment standpoint. Your example completely ignores renting. Also th...
by Eferv
Fri Dec 09, 2011 3:50 am
Forum: Investing - Theory, News & General
Topic: Are REITs overpriced?
Replies: 34
Views: 3478

Re: Are REITs overpriced?

Not when you plan on living in it. It doesn't produce income. In fact it creates costs for you to in terms of maintenance. T Costs are not created by you moving into the home. Your home can also produce income while you live in it (room rental). The bottom line is that residential real estate is an...
by Eferv
Fri Dec 09, 2011 1:45 am
Forum: Investing - Theory, News & General
Topic: Are REITs overpriced?
Replies: 34
Views: 3478

Re: Are REITs overpriced?

A home is not just a place to live in though. It has value as an income producing asset.

If it helps, think of the question this way: if you own a $300,000 investment property, does it make sense to add an extra REIT allocation to your portfolio?
by Eferv
Thu Dec 08, 2011 10:54 pm
Forum: Investing - Theory, News & General
Topic: Are REITs overpriced?
Replies: 34
Views: 3478

Re: Are REITs overpriced?

True but as part of the same asset class I imagine that there are correlation problems.

If a house costed $50k I probably wouldn't be too concerned but where I live, I will likely pay $500k for my home (So Cal)
by Eferv
Thu Dec 08, 2011 10:52 pm
Forum: Investing - Theory, News & General
Topic: How to find out the tilt of a certain fund?
Replies: 2
Views: 299

Re: How to find out the tilt of a certain fund?

Just what I was looking for, thanks!
by Eferv
Thu Dec 08, 2011 9:37 pm
Forum: Investing - Theory, News & General
Topic: Are REITs overpriced?
Replies: 34
Views: 3478

Re: Are REITs overpriced?

My issue with REITs is that if I buy them and then a house, I feel overexposed.

Is this not the case?
by Eferv
Thu Dec 08, 2011 9:25 pm
Forum: Investing - Theory, News & General
Topic: How to find out the tilt of a certain fund?
Replies: 2
Views: 299

How to find out the tilt of a certain fund?

Hi, I emailed Vanguard regarding the tilt of their Small Value Fund VBR after reading on here that it is not 100% small value. Surprisingly Vanguard hasn't responded after a few days. Is there a good source for this info? I'd like to check out the tilts some other stock funds for comparison as well....
by Eferv
Wed Dec 07, 2011 7:46 pm
Forum: Investing - Theory, News & General
Topic: SV indexes: do costs suck out all of their premiums?
Replies: 25
Views: 1879

Re: SV indexes: do costs suck out all of their premiums?

Thanks to everyone for the advice. To be honest I'm still hazy on whether mixing the small value ETF would be worth it or not.

IMO for this topic it would be helpful to talk about the stock returns in isolation from the rest of the portfolio
by Eferv
Tue Dec 06, 2011 4:22 pm
Forum: Investing - Theory, News & General
Topic: SV indexes: do costs suck out all of their premiums?
Replies: 25
Views: 1879

SV indexes: do costs suck out all of their premiums?

Hi, I saw this posted in another thread: Most SV indexes have negative alpha most of the time and extra trading costs above Total Stock Market. MSCI index seemed to lose about .2%/mo to negative alpha based on some earlier data I found on this forum. I didn't do the calculations myself. Take away an...
by Eferv
Sun Dec 04, 2011 6:16 am
Forum: Investing - Theory, News & General
Topic: What percentage of assets are in passive funds?
Replies: 5
Views: 747

What percentage of assets are in passive funds?

Anyone know how much money is in passive funds compared to active?
by Eferv
Fri Dec 02, 2011 7:05 am
Forum: Investing - Theory, News & General
Topic: How to find coupon interest payment info for a bond fund?
Replies: 1
Views: 225

How to find coupon interest payment info for a bond fund?

Hi, I have a newbie question related to finding coupon payment information for bond funds? I'm trying to find out how much coupon interest payments were paid out during a recent holding period (fantasy portfolio) for VGLT and SCHP. My holding period was from 9/12/2011 to 11/23/2011 for both securiti...
by Eferv
Fri Dec 02, 2011 12:09 am
Forum: Investing - Theory, News & General
Topic: Factoring in Cash Assets?
Replies: 8
Views: 709

Factoring in Cash Assets?

I've always thought of cash assets as T-Bills, but I'm now realizing that my checking and savings accounts are also cash assets.

Do you guys count these funds as part of your portfolio? If so, what are some general guidelines on how to factor them?

Thanks
by Eferv
Thu Dec 01, 2011 4:35 pm
Forum: Investing - Theory, News & General
Topic: Value vs Growth stock
Replies: 6
Views: 474

Value vs Growth stock

Amateur question alert:

I've read on here that value stocks are the lowest priced 33% and growth stocks are the highest priced. Can someone clarify what this is (it couldn't be based on absolute stock price I imagine)

Is there a term for the middle 33% of stocks?


Thanks!
by Eferv
Thu Dec 01, 2011 5:56 am
Forum: Investing - Theory, News & General
Topic: What is a good ratio of Large/Small Cap stock?
Replies: 44
Views: 9387

What is a good ratio of Large/Small Cap stock?

Hi,

Are there any guidelines on how much small cap stock to have per large cap?

I have a TSM fund, which I've read is weighted 75/15/10, and will soon add a Small Cap Value fund (100% Small Cap) Mid caps will also get squeezed by a few percent depending on how much I allocate to the small value fund
by Eferv
Sun Nov 27, 2011 1:22 am
Forum: Personal Investments
Topic: How to calculate Asset betas?
Replies: 4
Views: 448

How to calculate Asset betas?

Hi,

I'm taking a finance class and need to calculate the beta for each of the assets I'm holding in a dummy portfolio (VTI, VBR, VEA, VWO, VLGT, SCHP). Anyone know how to calculate the beta for individual assets?

Thanks
by Eferv
Tue Nov 15, 2011 1:39 am
Forum: Personal Investments
Topic: Brokerage with automated rebalancing?
Replies: 5
Views: 754

Brokerage with automated rebalancing?

Hi, Anyone know of a good brokerage that allows the setup of a portfolio, and automatic rebalancing via rules (ie rebalance once per year on Jan 1)? I just read about https://www.folioinvesting.com. They cost $10 per order plus $60 per year for low trade volume (which we all do). Just wanted to see ...
by Eferv
Wed Nov 02, 2011 5:25 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on Value Investing
Replies: 27
Views: 2261

Thoughts on Value Investing

Value Investing, most famously used by Warren Buffet, uses fundamental analysis plus market timing to select potentially under-priced stocks and hold them long term (or sell when overpriced). I've been curious about this approach for a long time but have never tried it. It seems like one of the more...
by Eferv
Sat Sep 03, 2011 1:08 am
Forum: Investing - Theory, News & General
Topic: Do voting rights matter any more?
Replies: 12
Views: 1947

Do voting rights matter any more?

Hi,

I don't invest in individual stocks but am curious--do voting rights matter anymore for individual investors? Or is this only important in very limited situations for institutions?

Thanks
by Eferv
Wed Aug 24, 2011 10:41 am
Forum: Investing - Theory, News & General
Topic: If FDIC Accounts Are Safe As Treasury Bills then Why...?
Replies: 96
Views: 9488

CDARs allow multi-millions to be conveniently insured:

http://www.pacificenterprisebank.com/ho ... ness/cdars
by Eferv
Wed Aug 24, 2011 10:39 am
Forum: Investing - Theory, News & General
Topic: Looking to get into rental properties, book recs and advice?
Replies: 57
Views: 6111

As an outsider, small commercial properties seem to avoid the major tenant-related headaches of residential properties. I'm not talking about 5+ unit apartments buildings, but small office properties, retail strips, and maybe industrial. For you commercial property, commercial tenant landlords--how ...
by Eferv
Mon Aug 22, 2011 10:05 pm
Forum: Investing - Theory, News & General
Topic: Help understanding the tax side of the business
Replies: 4
Views: 488

Thanks, I didn't realize that bond returns were not considered capital gains. That seems bizarre to me. One more "shot in the dark" question: Anyone know of a way to buy RE estate using unrealized gains in a stock fund, without selling the stock and triggering taxes? I know, it's probably ...
by Eferv
Mon Aug 22, 2011 9:34 pm
Forum: Investing - Theory, News & General
Topic: Help understanding the tax side of the business
Replies: 4
Views: 488

Help understanding the tax side of the business

Hi,

Fairly basic question: What are the reasons for putting the bond funds inside the tax-free accounts? (instead of say, a stock fund)

Thanks
by Eferv
Sun Aug 21, 2011 11:34 am
Forum: Investing - Theory, News & General
Topic: For the funds that actually do beat the market
Replies: 28
Views: 3871

Re: For the funds that actually do beat the market

Past Performance is NOT indicative of future returns . If the SEC said that to me I would say "Oh ya, SEC? Then is it also wrong to expect greater long term returns from stocks than bonds?" History is all we have for testing our best guesses of what works. Don't forget why you prefer pass...
by Eferv
Sun Aug 21, 2011 6:17 am
Forum: Investing - Theory, News & General
Topic: For the funds that actually do beat the market
Replies: 28
Views: 3871

For the funds that actually do beat the market

I was talking to a friend about my new understanding of passive management and its superiority to regular mutual funds. He brought up the point that there are funds that have beat the market for 15+ years--post-2008 as well. From what I've read I do recall seeing funds that seem to have done well ov...
by Eferv
Sat Aug 20, 2011 8:58 am
Forum: Investing - Theory, News & General
Topic: US Total Stock Market - How much foreign exposure?
Replies: 4
Views: 1126

US Total Stock Market - How much foreign exposure?

Hi,

Does anyone know how much US stock exposure is in:

Foreign Developed Stocks
Emerging Market Stocks

(From our multi-national companies)

Thanks
by Eferv
Fri Aug 19, 2011 11:09 am
Forum: Personal Investments
Topic: Roth IRA long term political risk
Replies: 9
Views: 3069

Roth IRA long term political risk

Hi, I don't follow politics too closely so maybe someone better informed could lend an opinion: What are the chances of the US changing the Roth IRA policy in the future, such that 1) taxes will be assessed on all withdrawals just like an IRA, but perhaps at a lower rate, and 2) This new policy will...
by Eferv
Thu Aug 18, 2011 5:24 pm
Forum: Personal Investments
Topic: Are short term Gov bonds even worth it?
Replies: 2
Views: 733

Are short term Gov bonds even worth it?

Hi, I'm looking for a place to keep my short term funds. In my case that means funds that I would like to be able to access and spend in 2 weeks if need be. This of course necessitates a very low risk investment. From what I can see, short term government bonds seem to have fairly low volatility. Pr...
by Eferv
Thu Aug 18, 2011 4:56 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on corporate bond risk premiums
Replies: 101
Views: 7817

Thanks Larry. I guess VCSH-- Vanguard Short Term Corp Bonds is out of the question then because it sounds like you buy individual corporate bonds. Or do you know of a good non-callable bond fund?

Thanks
by Eferv
Thu Aug 18, 2011 3:11 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on corporate bond risk premiums
Replies: 101
Views: 7817

Thoughts on corporate bond risk premiums

I'm learning about bonds from David Swenson's book "Unconventional Success" and he strongly recommends against corporate bonds: The negatives of corporate bonds do not offset the chance of excess returns • Even AAA corporate bonds have credit risks (IBM) • Liquidity is much worse than Gove...
by Eferv
Thu Aug 18, 2011 11:54 am
Forum: Investing - Theory, News & General
Topic: Confused about cash assets
Replies: 9
Views: 1107

Confused about cash assets

Can someone tell me why Treasury notes are a "cash" asset?

Also, are there any TIPS that are considered cash assets?

Thanks
by Eferv
Thu Aug 18, 2011 8:16 am
Forum: Investing - Theory, News & General
Topic: How to measure added risk of a value tilt?
Replies: 1
Views: 416

How to measure added risk of a value tilt?

I've read that value tilting with small cap value actually reduces risk against a Total Stock Market fund by itself, which is very unintuitive to me.

How can I calculate the increase/decrease in risk for a given TSM/SCV combination?

Thanks
by Eferv
Thu Aug 18, 2011 3:55 am
Forum: Investing - Theory, News & General
Topic: Constant cash flux within companies?
Replies: 1
Views: 438

Constant cash flux within companies?

Hi,

I'm just wondering--How do public companies deal with constant changes in their company's value? Am I wrong to assume that a company's valuation directly affects the funds they have for operations?

Thanks
by Eferv
Thu Aug 18, 2011 3:12 am
Forum: Investing - Theory, News & General
Topic: Is there a relationship between returns and GDP growth?
Replies: 2
Views: 564

Is there a relationship between returns and GDP growth?

Hi,

I'm just curious for my own understanding: Is there a strong relationship between stock market returns and GDP growth? What other factors make up the difference?

Thanks
by Eferv
Wed Aug 17, 2011 6:09 pm
Forum: Investing - Theory, News & General
Topic: Tell me why you don't like this form of market timing
Replies: 29
Views: 3037

Tell me why you don't like this form of market timing

1. Wait until equities fall 20% from their peak 2. Take 50% of your desired stock position 3. Wait until equities fall to 30% off peak OR 6 months from #1, whichever comes first 4. Take the remaining 50% of your stock position 5. Invest passively ever after. Never again a market timing trade I call ...
by Eferv
Wed Aug 17, 2011 5:33 pm
Forum: Investing - Theory, News & General
Topic: Drawdown Charts
Replies: 3
Views: 698

Drawdown Charts

Hi,

Does anyone know of a good source for seeing historical drawdowns for the major asset classes? As much as I have been reading lately, I still do not have a good historical understanding of peak-to-trough drawdowns, as well as lengths and frequencies, in stocks and bonds,

Thanks
by Eferv
Wed Aug 17, 2011 4:19 pm
Forum: Investing - Theory, News & General
Topic: Modified Swenson Portfolio
Replies: 14
Views: 1903

This is his small investor portfolio. Here is the portfolio he recommends, after he made a small revision in 09: US Equity | 30% Foreign Developed Equity | 15% Emerging Market Equity | 10% Real Estate | 15% US Treasury Bonds | 15% US TIPS | 15% Since EM is all large-cap as is EAFE, what are you goin...
by Eferv
Wed Aug 17, 2011 4:04 pm
Forum: Investing - Theory, News & General
Topic: If passive management suddenly became popular
Replies: 1
Views: 570

If passive management suddenly became popular

Hi, I've been curious about what would change in the market if the correct style of investing became popular. Let's pretend for a moment that in another 5-10 years from now, there is a large movement away from actively managed funds to passive management, to the point that active funds have been gre...
by Eferv
Wed Aug 17, 2011 3:46 pm
Forum: Investing - Theory, News & General
Topic: Modified Swenson Portfolio
Replies: 14
Views: 1903

Modified Swenson Portfolio

Swenson's adjusted Portfolio had 15% in REITs, which I needed to remove due to personal private RE assets. I weighted the extra 15% into the equities: US Total Stock Market | 37% Foreign Developed Equity (EAFE) | 20% Emerging Market Equity | 13% US Treasury Bonds | 15% US TIPS | 15% Is this a reason...
by Eferv
Wed Aug 17, 2011 12:11 pm
Forum: Investing - Theory, News & General
Topic: Total market vs sliced fund portfolio
Replies: 26
Views: 5217

Thanks Bob; What allocation would you allot across all 3 cap sizes? 60/20/20?

Or would you ignore mid cap and do 80% large, 20% small like the graph shows?
by Eferv
Wed Aug 17, 2011 12:06 pm
Forum: Investing - Theory, News & General
Topic: Conservative active management?
Replies: 21
Views: 2518

Here's another question I have: What if a market seems to fundamentally change, or assumptions about performance/volatility change? Swenson adjusted the Emerging Markets allocation to 10% and REIT to 15%, presumably because Emerging Markets 10 years later are more evolved, and stress tests on REITs ...