Learning For Building a Winning Portfolio 11 doc

... implies a much high- erDRof 25.9%. This isthesame as saying that thepresent value of a weekinParis in a decade has cheapened. Again,an increase in the DR meansthat thepresent value of a future itemhas ... futurec onsumption. That is, a dollar ofincome next year is worthless to us than a dollar today, and a dollarinthirty years, a great dealless than a dollar today. Thus, the...

Ngày tải lên: 21/06/2014, 15:20

... years has penal- ized its taxable shareholders by distributing about 10% of its value each year as capital gains. Fortunately, there are now “tax-efficient” index funds designed for taxable accounts, ... returns elsewhere. What actually happens is that they generate more unnecessary capital gains and resultant taxes. For the taxable investor, indexing means never having to pay the tax and...

Ngày tải lên: 21/06/2014, 15:20

... rise dramatically. If you are value averaging into both taxableand sheltered accounts, as In-Between Ida would haveto do, it is likelythat after atimethe taxableand shelteredhalves of theallocation will ... 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 are retire...

Ngày tải lên: 21/06/2014, 15:20

... high-octane Manhattan Fund. Unfortunately for Tsai, just at that point, he was struck with a fatal case of chimpanzee syndrome. The years 1966–1967 were mediocre for Manhattan and in 1968, the patient ... 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 taxable account, this...

Ngày tải lên: 21/06/2014, 15:20

... the railroads made overland travel cheap, safe, rapid, and relatively comfortable. Even more importantly, the steam engine was undoubtedly the most dramatic, romantic, and artistically appeal- ing ... 1720, had parliament pass the Bubble Act. This legislation required all new companies to obtain parliamentary charters and forbade existing companies from operating Tops: A History of Manias 1...

Ngày tải lên: 21/06/2014, 15:20

... small growth) are not suitable for taxable accounts because of the high turnover necessary to maintain their characteristics. For example, a small-value fund may toss out a stock because it has ... so large growth and large market behave nearly identically. The same goes for small-cap stocks; the small-growth and small-mar- ket subsegments behave in nearly the same way. As you have...

Ngày tải lên: 21/06/2014, 15:20

... ofi nterest rates and taxes. Let’s assume, for example, that you aresubject to the 36% marginalfederalrate and live in a state with a5 %marginalrate. In your taxable account, you can purchase the Vanguard ... Total Stock Market • 20% Vanguard Tax-Managed Small-Cap • 25% Vanguard Tax-Managed International •15% Vanguard REIT (VA) Ted’s from California, so he decides to split his bond port...

Ngày tải lên: 21/06/2014, 15:20

... 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

... 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

... economic impact as largeasthat of financialjournalism. Just as many automobilepur- chasers will buy on the basisof a favorable reviewinCar and Driver,aglowing money manager storycanmove vast amounts ... Mutual Fund 211 2. Do not chase the performance of active managers. Not only does past performance not predict future manager performance, but excellent performance leads to the rapid accum...

Ngày tải lên: 20/06/2014, 20:20