Optimized Portfolio | John Williamson, APMA® @OptimizedPort
Writes about investing. Part research, part ramblings. Intrigued by Return Stacking®. Tweets ≠ advice. YouTube vids at https://t.co/ITcRYaIGTA optimizedportfolio.com USA Joined September 2020-
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If you're a taxable investor, you don't want dividends... “From 1993 through 2024, our estimates suggest that the annual tax drag on SPY dividend distributions was around 26 basis points per year” For example, we estimate that funds such as JEPQ, JNK, or QYLD might incur…
The weirdly vehement anti-IRA crowd seems to forget the glaring fact that even FIRE folks are probably going to live past 60 years old...
The weirdly vehement anti-IRA crowd seems to forget the glaring fact that even FIRE folks are probably going to live past 60 years old... https://t.co/qtXFGvsXzy
Should some people fire their advisor? Yes. Would some DIYers benefit from a good advisor? Also yes. The whole "nobody needs an advisor" thing is nonsense and needs to go away.
1. We can't just throw around the term "risk" vaguely and cavalierly. Specificity matters with this stuff. I assume Nick is referring to inflation risk here, but most people colloquially recognize and experience risk as short-term downside volatility, for which, yes, stocks are…
1. We can't just throw around the term "risk" vaguely and cavalierly. Specificity matters with this stuff. I assume Nick is referring to inflation risk here, but most people colloquially recognize and experience risk as short-term downside volatility, for which, yes, stocks are…
Stocks definitely tend to preserve purchasing power the best long-term, but U.S. inflation (CPI) has been right at 3% annualized over the last century, and nominal T-bill and 10Y bond returns have been about 3.3% and 4.8% respectively over the same period, so it is incorrect to…
Stocks definitely tend to preserve purchasing power the best long-term, but U.S. inflation (CPI) has been right at 3% annualized over the last century, and nominal T-bill and 10Y bond returns have been about 3.3% and 4.8% respectively over the same period, so it is incorrect to…
Reminder: Dollar cost averaging (DCA) - consciously spreading out a sum of money at intervals - is delaying investment, which is itself a form of market timing, and tends to be inferior to lump sum investing (LSI), which is investing all money as it becomes available. I think…
Reminder: Dollar cost averaging (DCA) - consciously spreading out a sum of money at intervals - is delaying investment, which is itself a form of market timing, and tends to be inferior to lump sum investing (LSI), which is investing all money as it becomes available. I think…
Reminder that productivity ≠ stock returns and that, while perhaps counterintuitive at first glance, tech "revolutions" tend to be somewhat poor investments: pwlcapital.com/investing-tech… But I'm also not sure how any of these premises would render buying the S&P an "outdated" idea.
Reminder that productivity ≠ stock returns and that, while perhaps counterintuitive at first glance, tech "revolutions" tend to be somewhat poor investments: pwlcapital.com/investing-tech… But I'm also not sure how any of these premises would render buying the S&P an "outdated" idea.
Reminder that there are demonstrably safer and more diversified products than these 2 U.S. dividend ETFs.
Reminder that there are demonstrably safer and more diversified products than these 2 U.S. dividend ETFs.
A good financial advisor who understands biases would likely recognize that many prefer to have a dedicated, stable emergency fund because it feels better emotionally. My sizable taxable account serves as my emergency fund, but I'm the first to point out the psychological…
A good financial advisor who understands biases would likely recognize that many prefer to have a dedicated, stable emergency fund because it feels better emotionally. My sizable taxable account serves as my emergency fund, but I'm the first to point out the psychological…
Most people experience risk as short-term volatility, for which bonds are not more risky than stocks. In terms of long term purchasing power risk, bonds are indeed arguably "riskier" than stocks. It's important to define and contextualize the "risk" to which we're referring.
Most people experience risk as short-term volatility, for which bonds are not more risky than stocks. In terms of long term purchasing power risk, bonds are indeed arguably "riskier" than stocks. It's important to define and contextualize the "risk" to which we're referring.
Reminder that "live off the dividends" is just a great way to unnecessarily delay retirement, as you'd be drawing from a smaller subset of the portfolio instead of the whole thing. So many people don't seem to understand this simple mathematical fact (or the 4% Not-a-Rule).…
Reminder that "live off the dividends" is just a great way to unnecessarily delay retirement, as you'd be drawing from a smaller subset of the portfolio instead of the whole thing. So many people don't seem to understand this simple mathematical fact (or the 4% Not-a-Rule).…
Lost Decade 2000-2009 begs to differ. As does 1950-1989. As do many extended rolling periods historically. Massive US dominance is a pretty recent phenomenon: mebfaber.com/2019/07/08/i-d… But of course, the salient comparison is not US vs. ex-US, but rather US vs. global. Subtle but…
Lost Decade 2000-2009 begs to differ. As does 1950-1989. As do many extended rolling periods historically. Massive US dominance is a pretty recent phenomenon: mebfaber.com/2019/07/08/i-d… But of course, the salient comparison is not US vs. ex-US, but rather US vs. global. Subtle but…
Tune in over the next 2 weeks for a series of tweets in which I make the exact opposite claims of the ones I'm quoting.
at this point, I feel like @choffstein deserves a 5 bp royalty for all these new portable alpha/return stacking funds launched within the last 6 months
at this point, I feel like @choffstein deserves a 5 bp royalty for all these new portable alpha/return stacking funds launched within the last 6 months
@CDInewsletter There's the rub, though. By definition, novices don't know how to discern between what is good and bad advice. I think your premise overlooks that fact entirely. As a recent salient example, just look at all the young people piling into sketchy, expensive "income" funds because…
Republican version of this is trading now too. Ticker is $GOP.
Income is a drag, folks. Is income tax inefficiency the price of diversification? There's gotta be a better way.
"forever income" lol the mental gymnastics of these guys is wild.
"forever income" lol the mental gymnastics of these guys is wild. https://t.co/4ERLlkydJR
Vanguard has finally launched the $VTG ETF for the total US treasury bond market with a fee of 0.03%. $GOVT, the comparable fund from iShares that has been around since 2012, costs 0.05%. Brief summary of $VTG here: optimizedportfolio.com/vtg/
Bad way to phrase this for engagement, but also simply false. Stocks are always risky and become less risky as one's holding period gets longer.
Bad way to phrase this for engagement, but also simply false. Stocks are always risky and become less risky as one's holding period gets longer.

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