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  • The Debate About Whether To Hire An Active Fund Manager To Beat The Market Or Use A Passive Index Fund Is Over [View article]
    Personally I use only broad ETF's to cover the world's markets and rebalance when they break out of their assigned and preset ranges. I have made the most mistakes when I think I know better than the rules I made for myself. I have consistently outperformed 95+% of mutual funds or averages.

    I strongly believe that any strategy consistently applied will work out over the long term. People ruin their chances of success by continually changing their approach.
    Aug 30 12:45 PM | Likes Like |Link to Comment
  • 5 Commandments For Investors (Or Why Dogs Can't Catch Frisbees) [View article]
    One of the better articles I have ever read.

    Decide on your allocations; decide at what allocation imbalance you will rebalance; rebalance only those allocations that meet your rebalancing criteria; and do it all over again even it you think you should do something different.

    This approach has given me a 15+% return over the last five years.

    Again, keep it as simple as possible!
    Jul 1 12:47 PM | Likes Like |Link to Comment
  • The 4% Plan: Adjusting Your Sails For 2014 [View article]
    For the 30% bond/cash portion of my portfolio, I use MUAB thru MUAG laddered. Currently, there is not much difference between bonds and cash.
    Mar 10 12:37 PM | Likes Like |Link to Comment
  • Equal Vs. Cap Weighted ETFs: Dividend And Risk Consequences [View article]
    What is the effect of Company E falling out of the S&P and being replaced by Company F that is rapidly growing?
    Mar 7 11:27 AM | Likes Like |Link to Comment
  • 6 Easy Pieces: Fundamentals Of Asset Allocation Explained [View article]
    After getting your liabilities (ex your home) to a 30 day status, follow Rule no. 4 and nothing else.
    Mar 4 02:40 PM | Likes Like |Link to Comment
  • The 4% Plan: Adjusting Your Sails For 2014 [View article]
    I have found myself in the 15% tax bracket instead of the 39% tax bracket since the dividends are usually minimal. The lack of dividends is a consideration when I pick the ETF's I want to invest in.
    Dec 18 07:20 PM | Likes Like |Link to Comment
  • The 4% Plan: Adjusting Your Sails For 2014 [View article]
    I use the 4% rule in the following manner:

    Figure a 4% distribution at the end of each quarter for the next quarter. Make distribution from cash so there are no tax consequences, i.e., tax free distribution.

    No adjustment for inflation (just live on less for a while).

    Assets invested 75% in equities and 25% in bonds and cash. Rebalance when your allocations to the various classes are more than 10% our of line. Over five years, the rebalancing has pretty well equaled out gains and losses.
    Dec 18 04:04 PM | Likes Like |Link to Comment
  • Surprising Asset Allocation Results That Really Aren't Surprising [View article]
    Since any adviser would be very happy with 80% of his trades profitable, I invest in broad index ETF's in the various categories and am very happy with a return that is consistently better than 67% of all actively managed funds. I might spend two hours a week on my approach. A successful adviser have to spend at least thirty hours per week to be successful and he will have to endure many good and bad years.
    May 16 03:02 PM | 1 Like Like |Link to Comment
  • The recent drop in the VIX to below 15 is about the 5th time at that level in the last 2 years, notes MarketTech, and the other instances have indeed coincided with market tops. The pullback in the S&P 500 on the other 4 occasions tended to last for about 2 months and range from 6-19%. [View news story]
    In spite of the recent run, I believe a correction is due. The long term outlook is very foggy with the lack of confidence caused by Washington's lack of direction. Support for my position is growing. I also have been wrong before.
    Aug 16 01:20 PM | Likes Like |Link to Comment
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