... 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 a...
... building mania, 14 1 14 2, 15 8
GDP and technological diffusion,
13 2 13 4
railroad mania, 14 3 -14 5, 15 9 16 0
South Sea Company, 13 7 14 1, 15 8
Brokers, 19 1–202
Merrill, betrayal of, 19 3 19 4
spreads and commissions, ... years for
each of the four assets in the same manner. For U.S. large, small, foreign, and REITs,
these values are 1. 414 7, 1. 1436, 1. 3385, and 1....
... high-octane
Manhattan Fund.
Unfortunately for Tsai, just at that point, he was struck with a fatal
case of chimpanzee syndrome. The years 19 66 19 67 were mediocre
for Manhattan and in 19 68, the patient ... at a fairly young age, ran Oakmark Fund. Mr.
Sanborn was an undisputed superstar manager. From its inception in
19 91 to year-end 19 98, Oakmark’s annualized return was 24. 9...
... financial chaos of Paris arrived a most extraordinary
Scotsman: John Law. After escaping the hangman for killing a man in
a 16 94 duel, he studied the banking system in Amsterdam and even-
tually ... 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 a...
... $49 ,12 6 $57,8 71 $68,527 $ 81, 538 $97,4 51 $11 6,945
35
$60,5 41 $73,547 $89,992 $11 0,846 $13 7,360 $17 1 ,14 1
40 $73 ,14 4 $ 91, 719 $11 6 ,10 6 $14 8,252 $19 0,768 $247 ,15 4
This page intentionally left blank ... Table 12 -1 that
saving a real $10 0 permonth at a realrate of 4% produces $36,384
after 20 years. So, to produce a real $1, 250,000 nest egg we will have
to save...
... Stock Allocation)
Total Stock Tax-Managed Tax-Managed
Market Index Small Cap International REIT (VA)
January 1, 2003 $3,000 $10 ,000 $10 ,000 $10 ,000
April 1, 2003 $19 , 417 $17 ,500 $19 ,583 $15 , 417
July ... 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...
... 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 19 99, Vanguard created ... expense are least for large-cap
funds, intermediate for small-cap and foreign funds, and greatest for
emerging market funds. They are tabulated in Table 3 -1.
94 The Four Pillars of Inv...
... 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 16 94 duel, he studied the banking system in Amsterdam and...
... 30 years.
As you can see from Figures 12 -1 and 12 -2, a 6.7% withdrawal rate
would actually have depleted all the portfolios in about 15 years. This
means that a “penalty” of about 1. 5%–2% was extracted ... economic impact as
largeasthat of financialjournalism. Just as many automobilepur-
chasers will buy on the basisof a favorable reviewinCar and
Driver,aglowing
money manager st...