Lessons for Building a Winning Portfolio 11 pptx

... financial chaos of Paris arrived a most extraordinary Scotsman: John Law. After escaping the hangman for killing a man in a 1694 duel, he studied the banking system in Amsterdam and even- tually ... Most American financial authorities realized that this was an awful idea. Unfortunately, Benjamin Strong, the chairman of the Federal Reserve Bank, and Montagu Norman, the Governor of the...

Ngày tải lên: 21/06/2014, 02:20

... above—where we rebalanced a 25/25/25/25 mix of U.S. large and small, foreign and REITs—about 6.5% of the portfolio was trad- ed each year. In a taxable account, rebalancing results in capital gains, which ... money at market bottoms than at market tops. You can think of value averaging as a combination of DCA and rebal- ancing. (Value averaging works just as well in reverse. If you ar...

Ngày tải lên: 21/06/2014, 02:20

... Vanguard Tax-Managed Growth and Income • 5% Vanguard Value Index (IRA) •7.5% Vanguard Tax-Managed Small-Cap Defining Your Mix 269 • 5% Vanguard Small-Cap Value Index (IRA) •12.5% Vanguard Tax-Managed ... Pillars of Investing Table 14-1. “Taxable Ted’s” Value Averaging Path (for $500,000 Stock Allocation) Total Stock Tax-Managed Tax-Managed Market Index Small Cap International REIT (VA) Jan...

Ngày tải lên: 21/06/2014, 12:20

... Walter, 129 Barber, Brad, 199 Barra/Vanguard asset classes, 249 Index Note: locators in bold indicate additional display material. 305 rebalanced back to equal weighting at the end of 1998 and ... combines dollar cost averaging and rebalancing. Asset allocation in retirement is the mirror image of value averaging—you are rebalancing with withdrawals. 4. Rebalance your sheltered accounts once...

Ngày tải lên: 21/06/2014, 12:20

... companies arecalled “growth stocks,” and those ofbad companies arecalled“value stocks.” Let’s considerfor a moment, Wal-Martand Kmart. The formeris finan- cially healthyand universallyadmired, ... withlegendary management, a steadily growing stream of earnings, and a hugepileof cash on hand for emergencies. The latterisasick puppy, having recently declaredbankruptcy due to marginal fi...

Ngày tải lên: 20/06/2014, 20:20

... the case of companies that are buying back their shares. A company that has grown its earnings by 5% per year and annually buys back 5% of its outstanding shares will appreciate by 10% per year, ... observers, and unfortu- nately, this is eventually what happened. Third, and most important, the real beauty of the above formulas is that they can be rearranged to calculate the market’s expect...

Ngày tải lên: 20/06/2014, 20:20

... was the result of a massive collaborative effort to collect and analyze stock and bond prices. As researchers began to examine the aggregate performance of stocks and bonds, it was only natural ... each year. This is the best-case scenario for active- ly managed mutual funds—turn your portfolio over once a year, and you might—just might—match the index. And that’s before taxes. In a...

Ngày tải lên: 20/06/2014, 20:20

... value each year as capital gains. Fortunately, there are now “tax-efficient” index funds designed for taxable accounts, which are generally able to avoid capital gains. In 1999, Vanguard created ... unnecessary capital gains and resultant taxes. For the taxable investor, indexing means never having to pay the tax and investment consequences of a bad manager. Why Can’t I Just Buy and Hol...

Ngày tải lên: 20/06/2014, 20:20

... requirements are immaterial. For example, if you havesaved a largeamount forretirementand do not plan to leavealarge estate for 114 The Four Pillars of Investing Table 4-1. 1901–2000, 100-Year Annualized ... the S&P 500 was less than infla- tion—that is, it had a negative real return—whereas the EAFE beat inflation handily. You’ll also see that the EAFE beat the S&P 500 by a...

Ngày tải lên: 20/06/2014, 20:20

... the roads and public safety made travel a danger- ous, slow, and extremely uncomfortable endeavor. At a stroke, the railroads made overland travel cheap, safe, rapid, and relatively comfortable. ... financial chaos of Paris arrived a most extraordinary Scotsman: John Law. After escaping the hangman for killing a man in a 1694 duel, he studied the banking system in Amsterdam and ev...

Ngày tải lên: 20/06/2014, 20:20