7.20.2022

Seems legit

WSJ:

Calpers’ stock portfolio returned minus 13.1%, while bonds returned minus 14.5%, the pension fund said. Those losses delivered a double blow for retirement funds and other savers who have long relied on those two assets to move in opposite directions.

Private equity and real estate returned 21.3% and 24.1%, respectively.
It's a CalPERS miracle! 

Everything with observable market prices went down, but everything CalPERS values subjectively went up! By double digits!

4.23.2022

Quotations from Chairman Varones

 Inflation is progressive utopians encountering resource constraints for the first time.

4.08.2022

Taxable brokerage vs. traditional 401(k) account

The common wisdom says pre-tax 401(k)s and IRAs beat taxable accounts hands-down. But it's not so clear to me. If you put buy-and-hold stocks or index funds in a taxable brokerage account, it's actually remarkably tax-efficient because of the ability to defer capital gains, and the preferable tax rates on dividends and capital gains.

Here's a spreadsheet where you can play with the assumptions (you'll have to make a copy for  yourself to edit): link

Yes, traditional beats taxable in simplified base case, but this ignores:

  • tax loss harvesting 
  • HIFO withdrawals 
  • foreign tax credits
  • higher potential future tax rates
With the federal government running perpetual deficits of 3% - 5% of GDP, is it really out of the question that tax rates on wealthy retirees could hit 37%? That's about the point where taxable beats pre-tax even before considering HIFO and tax loss harvesting.

1.10.2022

AOC has Covid


Anybody else think horse paste might be worth a try?


Mmmkay....

President who usurped Congressional spending authority to issue an executive order handing out hundreds of billions of dollars right before ...