Swedroe: 2018’s Active Vs. Index Scorecard

[corn18]

Congrats! Sounds like there are a lot of moving parts and risks to manage. I would like to say we were as prudent as you with our wedding cash, but...

[corn18]

This is a great post from bogleheads:

"My portfolio is a beast of its own. It does its thing, I do mine. I can make or lose many thousands...

[corn18]

"It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for."- Robert...

[corn18]

Yes, it includes a $45k / year COLA pension and $55k/year SS starting @ 70. Once I hit 70, our base budget is pretty much covered by the pension + S...

[corn18]

Congrats! Now that we have hit that number, we are focusing on how much do we need to retire. This year we should have enough to pay off our house and...

[corn18]

Would the new 2BR/2BA place be too nice relative to other rentals in the area? Don't want to be renting a penthouse in a green acres neighborhood. The...

[corn18]

Summary: active funds got their butts kicked again in 2018 by passive/index funds. And really suck bad over the last 10 years. This is why I invest...

[corn18]

I see no buy signal in the data. If you want to take the risk and catch a bounce off the crash, I think you are too late.

And everything...

[corn18]

Do you know something someone else doesn't?

[corn18]

I think the next financial crisis will be caused by some sort of cyber hijinks. Whether an attack, glitch or mistake, something will happen and trillions...

[corn18]

If you are brave (or stupid), cash out refi and buy more properties. I would just sit on what you have right now and enjoy the income. Your CAP rates...

[corn18]

OP update:

We have been in our new house a little over 2 months and have some observations. Well, actually, one big observation: single...

[corn18]

Well, that is the boglehead philosophy. Don't just do something, stand there. At least with respect to investing.

I have made some changes...

[corn18]

No clue. If I could predict recessions, I wouldn't need to be posting on SA. The Fed has correctly predicted 12 of the last 8 recessions and they have...

[corn18]

This calculator gets you in the ball park....

[corn18]

You can choose index or active. I doubt VG will abandon low cost index funds but if they do, the revolution has already happened. Just switch to FIDO...

[corn18]

Already been discussed on bogleheads. John Bogle has not been associated with running Vanguard for decades....

[corn18]

As a note, the IRS lowered the safe harbor rule (#2 above) to 85% for 2018 because of the under withholding issues.

[corn18]

Hard to draw a conclusion without any data to support it.

[corn18]

The real question is what would you have paid if there were not tax cuts? A lot of people under withheld when the new withholding tables came out. Doesn't...