In Plus episode 470, we correct a misstatement about immediate annuities. We explore whether European stocks can be a replacement for U.S. value stocks. We analyze the Alpha Architect 1-3 Month Box ETF (BOXX), which has used an options strategy to replicate the return of Treasury bills without generating ordinary income. Finally, we consider why the U.S. and other countries have rules that limit who can invest in alternative investments. … [Read more...]
422 Plus: A TIPS Trade, TIPS Taxes, Wash Sale Update, and Finding Alternative Investment Funds
In Plus episode 422, we discuss a recent TIPS purchase David made. We review how TIPS are taxed, including what are original issue discounts. We look at examples of tax loss harvesting trades that Schwab Intelligent Portfolios made that they don't believe violate the wash sale rule. Finally, we discuss the challenge for individual investors in finding alternative investment managers in the venture capital and leveraged buyout areas. … [Read more...]
301: Use Caution with Alternative Investments
How alternative investment opportunities, such as venture capital, private equity, real estate and real assets, are increasing for individuals. Why these opportunities differ from what is available to institutional investors and how to evaluate them like a pro. Alternative investments are a private investment vehicle. You can learn more about investment vehicles in this guide. Topics covered include: What are alternative investments and how are they structured. What are 5 factors … [Read more...]
180 Plus: Stable Value Funds, Self Directed IRAs and Multi-manager Portfolios
This week November 11, 2017 on Money For the Rest of Us Plus, we look at how to decide between a stable value fund option and a bond fund within a tax deferred retirement plan. We review what to look for in a multi-manager advisor recommended portfolio service. Finally, we look at how self-directed individual retirement accounts can be used to invest in alternative investments such as real estate and what are some examples of prohibited transactions within self directed IRAs. … [Read more...]
180: Can You Outperform Harvard’s Endowment?
Why have college endowments underperformed a simple three fund Vanguard portfolio? Should you mirror a simple two or three fund portfolio or invest more like an endowment with multiple asset classes? Photo by Bill Badzo In this episode you’ll learn: How have college endowments underperformed a simple three Vanguard fund portfolio.What's the difference between time weighted and dollar weighted returns.Why are college endowments shifting more of their portfolios to alternative … [Read more...]
MNY117 Plus: Alternative Investments and Antifragility
This week on Money For the Rest of Us Plus we review the imputed interest rate sensitivity (i.e. duration) of various asset classes and why hedge fund like strategies are not sensitive to changes in interest rates. We then look at options for non-accredited individual investors to invest in liquid alternative strategies. We also revisit what it means to be antifragile and how can one implement a barbell investment strategy that combines both aggressiveness and paranoia. As part of our … [Read more...]
