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Re: Active bond funds better than indexes? Pimco thinks so

tetractys wrote:Uh huh ... even index funds can be subject to manager risk at times, as was TBM back then.


Index funds greatly minimize the risk - and when they err, it tends to be a small tracking error, not a 40%-50% drop.
by Call_Me_Op
Wed Oct 22, 2014 2:45 pm
 
Forum: Investing - Theory, News & General
Topic: Active bond funds better than indexes? Pimco thinks so
Replies: 11
Views: 457

Re: Active bond funds better than indexes? Pimco thinks so

In my opinion, those who advocate against bond indexing are partaking in a form of performance chasing - that is, assuming that they know better than the market as a whole. The big danger in this is manager risk - the risk that the manager of your active bond fund will do something really stupid. Th...
by Call_Me_Op
Wed Oct 22, 2014 12:00 pm
 
Forum: Investing - Theory, News & General
Topic: Active bond funds better than indexes? Pimco thinks so
Replies: 11
Views: 457

Re: Bauer-Ramazani v. TIAA-CREF settled

On the question of whether this "award" may be taxable, I called TIAA-CREF, and they were of no help at all.
by Call_Me_Op
Wed Oct 22, 2014 8:04 am
 
Forum: Investing - Theory, News & General
Topic: Bauer-Ramazani v. TIAA-CREF settled
Replies: 24
Views: 1974

Re: Why do Engineers Think They’ll Be Good at Picking Stocks

Real engineers see the futility of this endeavor. :)
by Call_Me_Op
Tue Oct 21, 2014 4:18 pm
 
Forum: Investing - Theory, News & General
Topic: Why do Engineers Think They’ll Be Good at Picking Stocks?
Replies: 77
Views: 3822

Re: Pimco vs. Jack Bogle on active management of bonds

In my view, active management generally has a huge risk - and that is risk associated with the manager. If I were to invest in an actively-managed bond fund, it would have to have a narrowly-defined charter and very low cost.
by Call_Me_Op
Tue Oct 21, 2014 11:11 am
 
Forum: Investing - Theory, News & General
Topic: Pimco vs. Jack Bogle on active management of bonds
Replies: 18
Views: 1958

Re: Why I won't have bond funds

toto238 wrote:The next 30 years may be BETTER than the last 30 years for bonds.


Interestingly, this scenario can only occur if one's bonds have relatively short duration and would involve a dramatic increase in interest rates over the near term.
by Call_Me_Op
Tue Oct 21, 2014 8:57 am
 
Forum: Investing - Theory, News & General
Topic: Why I won't have bond funds
Replies: 30
Views: 3706

Re: Individual Bonds versus Bond Funds - Again

If you hold a bond fund/ETF for longer than its duration, the bond fund/ETF is better than individual bonds because it's cheaper and easier. There are many assumptions built-into your statement. What you say may be true in a case with a very specific set of assumptions, but I can think of cases whe...
by Call_Me_Op
Mon Oct 20, 2014 4:26 pm
 
Forum: Investing - Theory, News & General
Topic: Individual Bonds versus Bond Funds - Again
Replies: 17
Views: 1212

Re: DOW Watchers Stomach Syndrome

Doc wrote:
Call_Me_Op wrote:Just noise.

Agreed but really LOUD noise.


Just increase the SPF of your earmuffs. :)
by Call_Me_Op
Mon Oct 20, 2014 10:48 am
 
Forum: Investing - Theory, News & General
Topic: DOW Watchers Stomach Syndrome
Replies: 25
Views: 2056

Re: Individual Bonds versus Bond Funds - Again

Kenner,

I agree that these problems, if real, are unlikely to materialize in Vanguard's bond funds (although many are actively managed) and certainly should not be an issue in passively-managed funds.
by Call_Me_Op
Mon Oct 20, 2014 9:59 am
 
Forum: Investing - Theory, News & General
Topic: Individual Bonds versus Bond Funds - Again
Replies: 17
Views: 1212

Re: DOW Watchers Stomach Syndrome

Just noise.
by Call_Me_Op
Mon Oct 20, 2014 9:51 am
 
Forum: Investing - Theory, News & General
Topic: DOW Watchers Stomach Syndrome
Replies: 25
Views: 2056

Re: Individual Bonds versus Bond Funds - Again

Hi kenner,

This excerpt, that the authors states without explanation, counters your argument.

Depending on how significant the redemptions are, they may have to sell off their highest-yielding bonds and replace them with those offering a lower yield, or assume more risk to obtain the same return.
by Call_Me_Op
Mon Oct 20, 2014 9:00 am
 
Forum: Investing - Theory, News & General
Topic: Individual Bonds versus Bond Funds - Again
Replies: 17
Views: 1212

Individual Bonds versus Bond Funds - Again

I recently stumbled across an article that attempts to give an explanation of why individual bonds may be preferred over bond funds. Here is a link to the article: http://www.cnbc.com/id/101565187 Read, in particular, under " Selloffs, supply and price ". I believe the essence of the autho...
by Call_Me_Op
Mon Oct 20, 2014 8:11 am
 
Forum: Investing - Theory, News & General
Topic: Individual Bonds versus Bond Funds - Again
Replies: 17
Views: 1212

Re: Dumb CD question

Interestingly, my credit union offers a 5 year CD with no early withdrawal penalty. That is interesting. Are you sure that CU allows early redemptions? Yes, I called recently and specifically asked about their penalty for early redemptions. I was told "at this time, there is none." The ra...
by Call_Me_Op
Mon Oct 20, 2014 7:36 am
 
Forum: Investing - Help with Personal Investments
Topic: Dumb CD question
Replies: 10
Views: 891

Re: Dumb CD question

Interestingly, my credit union offers a 5 year CD with no early withdrawal penalty.
by Call_Me_Op
Mon Oct 20, 2014 6:12 am
 
Forum: Investing - Help with Personal Investments
Topic: Dumb CD question
Replies: 10
Views: 891

Re: Attorney Hourly Rates?

Cheapest I've ever seen is a young attorney who charged $165/hr. Others charge over $400/hr.
by Call_Me_Op
Sun Oct 19, 2014 6:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: Attorney Hourly Rates?
Replies: 41
Views: 2990

Re: Why are 401k plans expensive?

Because they can get away with it?

Why is the average mutual fund expense ratio around 1.5%?
by Call_Me_Op
Sun Oct 19, 2014 6:21 am
 
Forum: Investing - Theory, News & General
Topic: Why are 401k plans expensive?
Replies: 39
Views: 2974

Re: What to do with Mom's IRA

Thanks all for the replies. I like the idea of one of the LifeStrategy funds for her.
by Call_Me_Op
Sat Oct 18, 2014 8:03 am
 
Forum: Investing - Help with Personal Investments
Topic: What to do with Mom's IRA
Replies: 8
Views: 856

Re: Livesoft - Thank you

I just wish he would post more often.
by Call_Me_Op
Fri Oct 17, 2014 5:47 pm
 
Forum: Local Chapters and Bogleheads Community
Topic: Livesoft - Thank you
Replies: 37
Views: 4010

What to do with Mom's IRA

My mom is retired and has an IRA with Oppenheimer Funds, called (something like) Sharebuilder. It uses class A shares with high fees and expenses - and lots of manager risk. I am considering moving her to Vanguard or Fidelity. I'd like a firm that offers automatic rebalancing and will do a good job ...
by Call_Me_Op
Fri Oct 17, 2014 1:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: What to do with Mom's IRA
Replies: 8
Views: 856

Re: TBM too much treasury?

I've come across a few articles ( one quoting Jack Bogle ) suggesting that the Total Bond Index Fund is too heavy in government bonds and investors should consider adding Intermediate corporate bonds to achieve a better diversification . Any opinions on this? Too heavy compared to what? It holds tr...
by Call_Me_Op
Thu Oct 16, 2014 12:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: TBM too much treasury?
Replies: 67
Views: 4132

Re: Your personal risk level: Got your flu shot yet?

Ninegrams wrote:No flu shot for me. Show me the peer reviewed studies of efficacy and maybe I'll change my mind.


+1
by Call_Me_Op
Thu Oct 16, 2014 12:51 pm
 
Forum: Personal Consumer Issues
Topic: Your personal risk level: Got your flu shot yet?
Replies: 93
Views: 2954

Re: TBM too much treasury?

I've come across a few articles ( one quoting Jack Bogle ) suggesting that the Total Bond Index Fund is too heavy in government bonds and investors should consider adding Intermediate corporate bonds to achieve a better diversification . Any opinions on this? Too heavy compared to what? It holds tr...
by Call_Me_Op
Thu Oct 16, 2014 10:58 am
 
Forum: Investing - Help with Personal Investments
Topic: TBM too much treasury?
Replies: 67
Views: 4132

Re: Your personal risk level: Got your flu shot yet?

jebmke wrote:I get one in early November every year. Haven't been sick since 1997.


Never get one. Haven't been sick (with suspected flu) since circa 1975.
by Call_Me_Op
Thu Oct 16, 2014 9:04 am
 
Forum: Personal Consumer Issues
Topic: Your personal risk level: Got your flu shot yet?
Replies: 93
Views: 2954

Re: -11.33% YTD, asking for some guidance

OP, were you not aware that the stock market fluctuates in value?
by Call_Me_Op
Thu Oct 16, 2014 8:34 am
 
Forum: Investing - Help with Personal Investments
Topic: -11.33% YTD, asking for some guidance
Replies: 57
Views: 3375

Re: ETF vs. Mutual Funds

ETF you have to buy the whole thing or none at all Perhaps (sort of) true with Vanguard. Fidelity, however, has 70 commission-free ETF's. You are misquoting, coolguy954 was referring to buying fractional shares, if you have $100 to invest you can get 0.5 shares of VG Total Stock mutual fund or what...
by Call_Me_Op
Wed Oct 15, 2014 10:23 am
 
Forum: Investing - Help with Personal Investments
Topic: ETF vs. Mutual Funds
Replies: 17
Views: 1168

Re: Bauer-Ramazani v. TIAA-CREF settled

Can anyone comment on whether this lawsuit award is taxable as ordinary income?
by Call_Me_Op
Wed Oct 15, 2014 10:21 am
 
Forum: Investing - Theory, News & General
Topic: Bauer-Ramazani v. TIAA-CREF settled
Replies: 24
Views: 1974

Re: ETF vs. Mutual Funds

coolguy954 wrote:ETF you have to buy the whole thing or none at all


Perhaps (sort of) true with Vanguard. Fidelity, however, has 70 commission-free ETF's.
by Call_Me_Op
Wed Oct 15, 2014 8:40 am
 
Forum: Investing - Help with Personal Investments
Topic: ETF vs. Mutual Funds
Replies: 17
Views: 1168

Re: ETF vs. Mutual Funds

I am not particularly partial to either. I will use an index fund if available for the desired asset class. If not, I will use an ETF.
by Call_Me_Op
Wed Oct 15, 2014 8:39 am
 
Forum: Investing - Help with Personal Investments
Topic: ETF vs. Mutual Funds
Replies: 17
Views: 1168

Re: Limited Term Tax Exempt as a spot for short term savings

It's acceptable assuming you can tolerate a loss of some principal. +1 Return of principal should be the overriding factor when needing liquidity in a short (<5 years) period of time. Would the OP feel fine taking 1% of their down payment over to the Bellagio in Vegas for a spin of the roulette whe...
by Call_Me_Op
Tue Oct 14, 2014 2:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Limited Term Tax Exempt as a spot for short term savings?
Replies: 24
Views: 2345

Re: Another TIPS Thread

Funds are for convenience and diversification, especially if buying or selling in dribs and drabs. I personally prefer the certainty of individual issues.
by Call_Me_Op
Tue Oct 14, 2014 12:57 pm
 
Forum: Investing - Theory, News & General
Topic: Another TIPS Thread
Replies: 5
Views: 501

Re: It's a good day to be heavy in REITs

The REIT index contains a 138 securities all concentrated in a single highly volatile market sector, while the total market index contains 3742 securities across all market sectors. Do you honestly believe that those two funds carry the same amount of risk? I was just referencing Vanguard. Why do t...
by Call_Me_Op
Tue Oct 14, 2014 12:55 pm
 
Forum: Investing - Theory, News & General
Topic: It's a good day to be heavy in REITs
Replies: 42
Views: 3971

Re: TIPS & Rick Ferri

The topic of "phantom income" is of interest to me because the only place I have available for TIPS is my taxable account. I currently hold a small number of TIPS there - and will add if real rates become attractive.
by Call_Me_Op
Tue Oct 14, 2014 9:23 am
 
Forum: Investing - Theory, News & General
Topic: TIPS & Rick Ferri
Replies: 28
Views: 4910

Re: Tax efficiency of short term bonds

livesoft wrote:I suppose that tax-efficiency boils down how much taxes one would pay on the total return of an investment.


I would state it as follows. Tax efficiency is the ratio of taxes paid to total realized or realizable return.
by Call_Me_Op
Tue Oct 14, 2014 6:48 am
 
Forum: Investing - Theory, News & General
Topic: Tax efficiency of short term bonds
Replies: 10
Views: 597

Re: TIPS & Rick Ferri

Doc,

Good point. The difference is that you are not normally "forced" to reinvest the dividend, and if you were to need it to pay taxes it could be used for such. But good point nonetheless.
by Call_Me_Op
Tue Oct 14, 2014 6:43 am
 
Forum: Investing - Theory, News & General
Topic: TIPS & Rick Ferri
Replies: 28
Views: 4910

Re: Limited Term Tax Exempt as a spot for short term savings

It's acceptable assuming you can tolerate a loss of some principal.
by Call_Me_Op
Tue Oct 14, 2014 6:40 am
 
Forum: Investing - Help with Personal Investments
Topic: Limited Term Tax Exempt as a spot for short term savings?
Replies: 24
Views: 2345

Re: When people put all their eggs in the wrong basket

ginmqi wrote:
I mean are people THAT stupid or are the financial industry THAT shrewed?


What does the financial industry have to do with it? People are free to invest/speculate as they wish. The "financial industry" would not support everything in one stock because it gives them no commission.
by Call_Me_Op
Tue Oct 14, 2014 6:23 am
 
Forum: Investing - Theory, News & General
Topic: When people put all their eggs in the wrong basket
Replies: 215
Views: 20381

Re: is anything 'cheap' out there?

This came from our discussion of CALPERs new investment strategy in real estate (direct investment, not funds, blue chip assets). I was questioning whether this was all a bit 'late to the party'. To continue I would say this is all an example of what is confronting all multi asset investors. There ...
by Call_Me_Op
Mon Oct 13, 2014 3:10 pm
 
Forum: Investing - Theory, News & General
Topic: is anything 'cheap' out there?
Replies: 54
Views: 5478

Re: Fidelity Investments Hacked

According to all the accounts I have read, this was an attempted hack. I have not heard that Fidelity's defenses were overcome.
by Call_Me_Op
Mon Oct 13, 2014 3:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fidelity Investments Hacked
Replies: 21
Views: 2495

Re: Gold: Is now the time?

Isn't that the essence of how an AA and rebalancing work? Not really. For most, it is not sufficient that an asset have low or varying correlation with other assets, but that it also have a positive real return. Gold does not meet the latter criterion over very long holding periods. That's not to s...
by Call_Me_Op
Mon Oct 13, 2014 11:22 am
 
Forum: Investing - Theory, News & General
Topic: Gold: Is now the time?
Replies: 36
Views: 2294

Re: Gold: Is now the time?

With commodities down and the dollar strong would now be the time for those so inclined to add Gold to their portfolios? Or should people wait for more damage? Obviously this would be a long term type of play. You need to be able to answer "why are you adding gold and why is it a good value at...
by Call_Me_Op
Mon Oct 13, 2014 10:43 am
 
Forum: Investing - Theory, News & General
Topic: Gold: Is now the time?
Replies: 36
Views: 2294

Re: Gold: Is now the time?

With commodities down and the dollar strong would now be the time for those so inclined to add Gold to their portfolios? Or should people wait for more damage? Obviously this would be a long term type of play. You need to be able to answer "why are you adding gold and why is it a good value at...
by Call_Me_Op
Mon Oct 13, 2014 9:58 am
 
Forum: Investing - Theory, News & General
Topic: Gold: Is now the time?
Replies: 36
Views: 2294

Re: TIPS & Rick Ferri

Doc wrote:
Call_Me_Op wrote:... circumventing the "phantom income problem?"


Do we ever worry about the "phantom reinvestment of dividends problem"?


Can you clarify?
by Call_Me_Op
Mon Oct 13, 2014 9:57 am
 
Forum: Investing - Theory, News & General
Topic: TIPS & Rick Ferri
Replies: 28
Views: 4910

Re: Just read All About Asset Allocation by Mr. Ferri.. Help

Greg, The advantage of slice-and-dice a la Ferri is somewhat small and not guaranteed. Some folks prefer to keep it very simple, like 3 or 4 (very broadly diversified) funds total. I forgot who said this (maybe Taylor?), but when experts continually argue over something it probably doesn't make much...
by Call_Me_Op
Mon Oct 13, 2014 8:56 am
 
Forum: Investing - Theory, News & General
Topic: Just read All About Asset Allocation by Mr. Ferri.. Help!
Replies: 12
Views: 1344

Re: ETF's instead of index funds?

It seems so logical to use them instead of Index funds since there are no minimums. Problem is, once you pass the $10K minimum, however soon that is, you're stuck with the clunkiness of ETFs forever. At least in a taxable account. If said clunkiness is not a problem for you, then no big deal. Ogd, ...
by Call_Me_Op
Mon Oct 13, 2014 8:49 am
 
Forum: Investing - Theory, News & General
Topic: ETF's instead of index funds?
Replies: 24
Views: 1336

Re: ETF's instead of index funds?

Does anybody strictly use ETF's instead of index funds? It seems so logical to use them instead of Index funds since there are no minimums. Not necessarily. You may be forgetting that there is generally a fee to buy and sell them. So. for example, if you want to add a little every month, unless the...
by Call_Me_Op
Mon Oct 13, 2014 8:44 am
 
Forum: Investing - Theory, News & General
Topic: ETF's instead of index funds?
Replies: 24
Views: 1336

Re: TIPS & Rick Ferri

Since we are talking about TIPS, is anyone aware of ETFs that invest in TIPS having a series of defined maturity dates? If so, this might be a good way to build a TIPS ladder in taxable while circumventing the "phantom income problem?" I know it wouldn't solve the tax problem per se (nothi...
by Call_Me_Op
Mon Oct 13, 2014 8:33 am
 
Forum: Investing - Theory, News & General
Topic: TIPS & Rick Ferri
Replies: 28
Views: 4910

Re: Avoid logging into brokerage account

With the recent correction in the market, risk tolerance levels will be tested. Maybe you're more risk averse than you thought..Or maybe the contrary. With that being said, do you generally avoid logging into your brokerage accounts especially during periods of correction? No, I don't avoid it. I f...
by Call_Me_Op
Mon Oct 13, 2014 7:48 am
 
Forum: Investing - Theory, News & General
Topic: Avoid logging into brokerage account
Replies: 17
Views: 1696
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