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Re: Bond exposure in my portfolio

Right now i have 20% of my retirement portfolio in a total bond fund from fidelity. In my individual investment account i have a long term treasury bond (FLBAX) and some exposure to TIP's and corporate bonds via ETFs. Are these good bonds to hold on to with the rising interest rates and current mar...
by Call_Me_Op
Thu Oct 23, 2014 12:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond exposure in my portfolio
Replies: 7
Views: 568

Re: Bond fund, why such high returns?

I was planning to invest in the following european bond fund: https://www.justetf.com/ch-en/etf-profile.html?region=Europe&index=EuroMTS%2BInvestment%2BGrade%2BEurozone%2BGovernment%2BBond&assetClass=class-bonds&distributionPolicy=distributionPolicy-accumulating&isin=FR0010028860&am...
by Call_Me_Op
Thu Oct 23, 2014 12:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond fund, why such high returns?
Replies: 13
Views: 1473

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

...See, for example, Oppenheimer Core Bond A. I see that Nisi has already mentioned this fund. My mother was a holder - one of the reasons I am moving her IRA to Vanguard (and index funds)... How awful. Just curious: was she holding during the drop, and just how aware is she of what happened in tha...
by Call_Me_Op
Thu Oct 23, 2014 12:00 pm
 
Forum: Investing - Theory, News & General
Topic: Active bond funds better than indexes? Pimco thinks so
Replies: 34
Views: 1966

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

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. The article is about bonds funds. I know - that's what I was talking about. I was addressi...
by Call_Me_Op
Thu Oct 23, 2014 11:02 am
 
Forum: Investing - Theory, News & General
Topic: Active bond funds better than indexes? Pimco thinks so
Replies: 34
Views: 1966

Re: Bogle and dry powder

livesoft wrote:So is "Wet Powder" something like Total US Bond Index fund shares?


No, wet powder might be something like junk bonds.
by Call_Me_Op
Thu Oct 23, 2014 9:33 am
 
Forum: Investing - Theory, News & General
Topic: Bogle and dry powder
Replies: 25
Views: 1681

Re: Bogle and dry powder

I have seen Mr. Bogle's dry powder quotes a lot and his use of the term dry powder is a bit different than what I have heard from others. Having said that and looking at his quote below it makes me wonder what is he intending to say about bonds as an investment. Is he saying they are a good investm...
by Call_Me_Op
Thu Oct 23, 2014 9:30 am
 
Forum: Investing - Theory, News & General
Topic: Bogle and dry powder
Replies: 25
Views: 1681

Re: Bogle and dry powder

I have seen Mr. Bogle's dry powder quotes a lot and his use of the term dry powder is a bit different than what I have heard from others. Having said that and looking at his quote below it makes me wonder what is he intending to say about bonds as an investment. Is he saying they are a good investm...
by Call_Me_Op
Thu Oct 23, 2014 9:10 am
 
Forum: Investing - Theory, News & General
Topic: Bogle and dry powder
Replies: 25
Views: 1681

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

Doc wrote:
Call_Me_Op wrote:
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.


The article is about bonds funds.


I know - that's what I was talking about.
by Call_Me_Op
Thu Oct 23, 2014 7:04 am
 
Forum: Investing - Theory, News & General
Topic: Active bond funds better than indexes? Pimco thinks so
Replies: 34
Views: 1966

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: 34
Views: 1966

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: 34
Views: 1966

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: 2034

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: 108
Views: 6269

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: 1973

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: 47
Views: 6178

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: 1220

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: 2085

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: 1220

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: 2085

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: 1220

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: 1220

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: 898

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: 898

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: 3014

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: 3014

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: 860

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: 4052

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: 860

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: 4216

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: 2966

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: 4216

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: 2966

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: 3385

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: 1193

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: 2034

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: 1193

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: 1193

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: 2370

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: 503

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: 3980

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: 4920

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: 601

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: 4920

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: 2370

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: 222
Views: 21985

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: 5491

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: 2510

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: 2298
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