Search found 5064 matches

Return to advanced search

Re: My Fund is Down?! It's Distribution Time!!

I'm confused? A cash credit no reason or what? They posted the cash credit before start of business but won't post the dividend itself until after the close of business. That's the kind of thing that sometimes happens when you try to merge a mutual fund company into a brokerage firm. :D Hey I was a...
by Doc
Thu Dec 18, 2014 6:18 pm
 
Forum: Investing - Theory, News & General
Topic: [Why did my fund suddenly drop in value?]
Replies: 110
Views: 9193

Re: My Fund is Down?! IT'S DISTRIBUTION TIME!!!

livesoft wrote:Bumpity-do-dah!


I've got a new twist for 2014 :D

My fund did NOT go down but I received a cash credit in my new Vanguard Brokerage account. I love freebies!

"Zip-A-Dee-Doo-Dah
Zip-A-Dee-A
My oh my, what a wonderful day
Plenty of sunshine heading my way"
by Doc
Thu Dec 18, 2014 4:24 pm
 
Forum: Investing - Theory, News & General
Topic: [Why did my fund suddenly drop in value?]
Replies: 110
Views: 9193

Re: Credit Risk vs. Term Risk

Interesting, the tradeoff between term risk and credit risk. I wonder if there is another factor involved in this situation now. Many analysts believe that the Fed will start raising interest rates in mid-2015. As the fed can only increase short term rates, those rates rise typically more precipito...
by Doc
Thu Dec 18, 2014 1:40 pm
 
Forum: Investing - Theory, News & General
Topic: Credit Risk vs. Term Risk
Replies: 11
Views: 838

Re: Total Market fund for Developed countries only

FTSE Developed ex-US has ~4% Korea and ~8% Canada. http://www.ftse.com/analytics/factsheets/Home/Search I'm using Schwab International Equity ETF SCHF (FTSE) to cover this part. & to include more small cap I use SPDR S&P International Small Cap ETF GWX (S&P) which also includes Korea and...
by Doc
Thu Dec 18, 2014 10:59 am
 
Forum: Investing - Theory, News & General
Topic: Total Market fund for Developed countries only
Replies: 17
Views: 1347

Re: Credit Risk vs. Term Risk

It's hard to make correct pronouncements of this nature and one is far better off concentrating on their own situation (i.e. advantages vs the market), like state tax. Let me try to clarify. Intermediate Treasuries and short corporates have similar expected future returns over a time period on the ...
by Doc
Thu Dec 18, 2014 10:28 am
 
Forum: Investing - Theory, News & General
Topic: Credit Risk vs. Term Risk
Replies: 11
Views: 838

Re: Total Market fund for Developed countries only

:D
pradador wrote:The plan was to overweight emerging markets ...


I read your initial statement as overweighting small cap developed international. Much of what I had to say may probably be irrelevant to your question. :(
by Doc
Wed Dec 17, 2014 8:02 pm
 
Forum: Investing - Theory, News & General
Topic: Total Market fund for Developed countries only
Replies: 17
Views: 1347

Re: Credit Risk vs. Term Risk

Well in the last three months the total return difference between the two is 2.14% in favor of the Treasury fund. The SEC yield is based on what a fund has in its portfolio today and if the fund didn't change that is the yield you would receive over the "duration". Of course funds do chan...
by Doc
Wed Dec 17, 2014 7:52 pm
 
Forum: Investing - Theory, News & General
Topic: Credit Risk vs. Term Risk
Replies: 11
Views: 838

Credit Risk vs. Term Risk

In these times of low interest rates many people are straying from a TBM type portfolio to other areas like CD's or High Yield. This made me wonder what kind of trade off there is between going to lower quality or longer duration. Using Vanguard index funds as a model we find Vanguard Short-Term Cor...
by Doc
Wed Dec 17, 2014 1:21 pm
 
Forum: Investing - Theory, News & General
Topic: Credit Risk vs. Term Risk
Replies: 11
Views: 838

Re: Vanguard's International Small Cap Fund -ETF vs Mutual F

If you hold a Vanguard mutual fund at Vanguard and there is a corresponding ETF, Vanguard can/will convert shares of the mutual fund to the ETF without a taxable event: http://www.bogleheads.org/wiki/ETFs_vs_mutual_funds#Vanguard_funds From Vanguard itself: Can I convert my conventional Vanguard mu...
by Doc
Tue Dec 16, 2014 6:28 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard's International Small Cap Fund -ETF vs Mutual Fund
Replies: 17
Views: 1809

Re: Are VG Indexes Weighted by their market capitalization?

Efficient when talking about a mutual fund usually refers to the trading costs incurred in order to track the index. Market weighted indexes are efficient because if a particular stock or sector outperforms the rest, the fund does not have to buy more in order to track the index. The tracking is &qu...
by Doc
Tue Dec 16, 2014 9:09 am
 
Forum: Investing - Theory, News & General
Topic: Are VG Indexes Weighted by their market capitalization?
Replies: 2
Views: 362

Re: Is it speculation to use the Callan Periodic table?

My thought is: the public and individual investor are often wrong. If that's true, going against the public would be right. Since the public often buys as prices rise and sell as prices fall, buy doing the opposite (buying asset classes that are most recently underperforming/falling), and holding t...
by Doc
Mon Dec 15, 2014 7:57 pm
 
Forum: Investing - Theory, News & General
Topic: Is it speculation to use the Callan Periodic table?
Replies: 26
Views: 1779

Re: Is it speculation to use the Callan Periodic table?

What if there was no rebalancing, only the annual purchase of the lowest producing asset class? That's just rebalancing by other means. It may not be as precise as buying and selling to return to target but it still has the same effect provided your annual contributions are large enough. If you onl...
by Doc
Mon Dec 15, 2014 5:23 pm
 
Forum: Investing - Theory, News & General
Topic: Is it speculation to use the Callan Periodic table?
Replies: 26
Views: 1779

Re: TIPS Mutual Funds

One asset class that is rarely mentioned on this forum with respect to an inflationary hedge is money market funds. With essentially a zero duration they are immune to interest rate risk and principal loss. Better is 4 wk Treasury bills. They are not quite giving them way yet but last week's went o...
by Doc
Mon Dec 15, 2014 12:46 pm
 
Forum: Investing - Theory, News & General
Topic: TIPS Mutual Funds
Replies: 42
Views: 2868

Re: Roth versus Traditional Debate

Your basically complaining that your getting more money when you are retired than when you were working:) It should be pointed out how much better it is to do ROTH conversions compared to ROTH contributions from a tax point of view. Getting to shift risk onto someone else is a very nice benefit. I ...
by Doc
Mon Dec 15, 2014 11:28 am
 
Forum: Investing - Theory, News & General
Topic: Roth versus Traditional Debate
Replies: 48
Views: 3299

Re: Roth versus Traditional Debate

In standard economic speak "marginal" means a derivative. Operationally this means the change in tax when you make a small change in income. How small is a problem. Too small and the tax tables turn marginal tax rate into a shah function. Too large and linear approximations are not reason...
by Doc
Mon Dec 15, 2014 10:45 am
 
Forum: Investing - Theory, News & General
Topic: Roth versus Traditional Debate
Replies: 48
Views: 3299

Re: TIPS Mutual Funds

#Cruncher wrote: archbish99 wrote: TIPS and nominals both price in the expectations of inflation. It's only the yields of nominal bonds that incorporate the expected rise in the Consumer Price Index. Since TIPS yields are in terms of constant dollars, the expected rise in the CPI is irrelevant to t...
by Doc
Mon Dec 15, 2014 10:35 am
 
Forum: Investing - Theory, News & General
Topic: TIPS Mutual Funds
Replies: 42
Views: 2868

Re: Are TIPs good in inflation & deflation?

Yes, it is true. And the reason is simply that TIPS guarantee, on a pretax basis, a known real return whether the Consumer Price Index goes up, down, or stays the same. Isn't this only true if you purchase at auction. If I buy a bond with an inflation factor of 1.1 and we have deflation of 10% over...
by Doc
Sun Dec 14, 2014 7:23 pm
 
Forum: Investing - Theory, News & General
Topic: Are TIPs good in inflation & deflation?
Replies: 6
Views: 856

Re: Turnover Expense impact on Expense Ratio

Regarding bond funds: I think derivatives also can add to the reported high turnover in bond funds. A 30 day interest rate swap gives you a turn over of x12. And an overnight investment of cash of 1% of your portfolio is what 360% turnover for 1% of your portfolio which alone adds 3.6% to the total ...
by Doc
Sun Dec 14, 2014 7:12 pm
 
Forum: Investing - Theory, News & General
Topic: Turnover Expense impact on Expense Ratio
Replies: 22
Views: 742

Re: Turnover Expense impact on Expense Ratio

One nice thing about an index fund is that you can pretty well bypass all such questions simply by looking at whether the fund is tracking its index, and how well. Yeh, that's what it says in the book but: SPDR S&P International Small Cap ETF GWX had a turnover of some 50% for the year 2014 fis...
by Doc
Sun Dec 14, 2014 7:05 pm
 
Forum: Investing - Theory, News & General
Topic: Turnover Expense impact on Expense Ratio
Replies: 22
Views: 742

Re: Roth versus Traditional Debate

In standard economic speak "marginal" means a derivative. Operationally this means the change in tax when you make a small change in income. How small is a problem. Too small and the tax tables turn marginal tax rate into a shah function. Too large and linear approximations are not reason...
by Doc
Sun Dec 14, 2014 6:51 pm
 
Forum: Investing - Theory, News & General
Topic: Roth versus Traditional Debate
Replies: 48
Views: 3299

Re: TIPS Mutual Funds

My impression is that a fair number of TIPS holders engage in market timing. I think you could come to that conclusion based on some of Larry Swedroe's posts. If I recall he has a formula for when TIPs are a good buy and when not so good. His "formula" was for trading 10 yr TIPS vs. short...
by Doc
Sun Dec 14, 2014 1:16 pm
 
Forum: Investing - Theory, News & General
Topic: TIPS Mutual Funds
Replies: 42
Views: 2868

Re: Roth versus Traditional Debate

I guess we are lost in semantics. To me "marginal rate" is what you pay in tax on the next dollar earned. I'm not really sure what your definition means, but I don't think it is the same. Unfortunately, I will have to take some time to digest the rest of what you said. Some of it makes se...
by Doc
Sun Dec 14, 2014 12:55 pm
 
Forum: Investing - Theory, News & General
Topic: Roth versus Traditional Debate
Replies: 48
Views: 3299

Re: Total Market fund for Developed countries only

Adding in a 1.5% allocation to Canada won't make a difference in one's retirement outcome (although it might make investing more "fun" for people who thrive on complexity/perfection). No but 15% emerging market might. Even if the EM and Canada have a similar weight in the overall portfoli...
by Doc
Sun Dec 14, 2014 12:51 pm
 
Forum: Investing - Theory, News & General
Topic: Total Market fund for Developed countries only
Replies: 17
Views: 1347

Re: Roth versus Traditional Debate

Forgive me for picking this nit, but I don't think this is quite right either. If most or all of a person's taxable income is coming from a retirement account (IRA, 401k, etc.) then it will be taxed at different levels before reaching the highest level. Less we get lost in semantics: Marginal rate ...
by Doc
Sun Dec 14, 2014 12:17 pm
 
Forum: Investing - Theory, News & General
Topic: Roth versus Traditional Debate
Replies: 48
Views: 3299

Re: Total Market fund for Developed countries only

I looked at the allocation of Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) Besides Europe and Pacific developed markets, Vanguard lists the following: Emerging Markets 18.8% Middle East 0.5% North America 7.4% If you group Middle East with Emerging, Vanguard's allocation, wh...
by Doc
Sun Dec 14, 2014 12:03 pm
 
Forum: Investing - Theory, News & General
Topic: Total Market fund for Developed countries only
Replies: 17
Views: 1347

Re: Total Market fund for Developed countries only

SPDR® S&P® World ex-US ETF (GWL) - 0.34% ER. - Covers market but carries a high cost. Schwab International Equity ETF (SCHF) and Schwab International Small-Cap Equity ETF (SCHC) - 0.09% and 0.19% ER - Lower fees but need two funds. iShares Core MSCI EAFE (IEMG) - 0.14% ER - No Canada but includ...
by Doc
Sun Dec 14, 2014 9:39 am
 
Forum: Investing - Theory, News & General
Topic: Total Market fund for Developed countries only
Replies: 17
Views: 1347

Re: Question for bond experts about Treasury STRIPS

But I do still think that chasing the last 15 basis points in efficiency with strip ladders is a load of complexity that the average investor can afford to avoid....especially the retiree who is well advised to keep things simple, if not for their own benefit, for their spouse or trustee's benefit....
by Doc
Thu Dec 11, 2014 7:49 pm
 
Forum: Investing - Theory, News & General
Topic: Question for bond experts about Treasury STRIPS
Replies: 14
Views: 1591

Re: Vanguard Wish List

I'd love Vanguard to provide checking and credit card services comparable to Fidelity Cash Management Account and Fidelity 2% cash back cards. Currently VanguardAdvantage cash management services are available for free only to the 3 comma club, and there are no credit card offerings. Banks do a goo...
by Doc
Wed Dec 10, 2014 7:39 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard Wish List
Replies: 44
Views: 2981

Re: Poll: Your Portfolio Tax Diversification

Well so far the old farts fogies like me are in the minority with only 9% having a 75% taxable portfolio. I am beginning to understand why there is so little interest in my rants about the complexities of the tax code w/r/t SS. :D
by Doc
Wed Dec 10, 2014 7:31 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: Your Portfolio Tax Diversification
Replies: 45
Views: 2428

Re: TIPs, Total Bond Market, or Both?

abuss368 wrote:My concern is how the Intermediate Term TIPS fund will react, considering the long duration (i.e. 8+-), with a change in real interest rates.


"the" :?:

Use another index product like TIPX - SPDR Barclays 1-10 Year TIPS ETF
by Doc
Wed Dec 10, 2014 4:43 pm
 
Forum: Investing - Theory, News & General
Topic: TIPs, Total Bond Market, or Both?
Replies: 35
Views: 3349

Re: Question for bond experts about Treasury STRIPS

To an investor, there is no practical difference between a coupon strip and a principal strip. Both are zero-coupon Treasury securities. But there is a technical difference. Each issue of Treasury securities is identified with a unique CUSIP number. When a note or bond is stripped, each new securit...
by Doc
Mon Dec 08, 2014 10:48 am
 
Forum: Investing - Theory, News & General
Topic: Question for bond experts about Treasury STRIPS
Replies: 14
Views: 1591

Re: TIPs, Total Bond Market, or Both?

If all of one's fixed income is inside tax-advantaged accounts tax efficiency is the same and can be ignored. Some posters will claim it makes a difference between tax-deferred and tax-free, but only because they misunderstand the math, having been misled by strictly political words coined by the l...
by Doc
Mon Dec 08, 2014 10:36 am
 
Forum: Investing - Theory, News & General
Topic: TIPs, Total Bond Market, or Both?
Replies: 35
Views: 3349

Re: VBS upgrade roll out has started

This workaround is only useful if we are talking non-retirement accounts. If you want to move money from traditional to Roth as a conversion, it's not ideal. Still, it'll be coming back next year allegedly There are a heck of a lot of these little "gotcha's" in this new system. I didn't e...
by Doc
Sat Dec 06, 2014 2:28 pm
 
Forum: Investing - Theory, News & General
Topic: "Vanguard converting mutual fund accounts to brokerage?
Replies: 246
Views: 15594

Re: TIPs, Total Bond Market, or Both?

There are plenty of reasons not too like one of the subsets, but each seems to have a reasonable role to play. If you want to slice and dice or more style purity, go right ahead. As far as I'm concerned one of the most important reasons to slice & dice fixed income is tax efficiency. Short term...
by Doc
Sat Dec 06, 2014 1:03 pm
 
Forum: Investing - Theory, News & General
Topic: TIPs, Total Bond Market, or Both?
Replies: 35
Views: 3349

Re: VBS upgrade roll out has started

Except that automatic exchange offers the options of "dollars," "percent," "shares," and "declining balance" whereas automatic withdrawal only offers the option of "dollar amount." I'm not sure that matters--so far I've never used anything but "...
by Doc
Sat Dec 06, 2014 12:32 pm
 
Forum: Investing - Theory, News & General
Topic: "Vanguard converting mutual fund accounts to brokerage?
Replies: 246
Views: 15594

Re: 1099-B and Vanguard's Cost Basis Amount

I've always kept track of cost basis in an excel spreadsheet and continue to do so, though I suppose it's less important if all you have are covered shares. However, I don't completely trust them, and have already experienced problems with cost basis calculations which they eventually corrected. Th...
by Doc
Sat Dec 06, 2014 12:00 pm
 
Forum: Investing - Theory, News & General
Topic: 1099-B and Vanguard's Cost Basis Amount
Replies: 27
Views: 2324

Re: TIPs, Total Bond Market, or Both?

new2bogle2 wrote:
Doc wrote:Sorry Taylor but times have changed.



Taylor who :confused


See the absolute first post on this board - "The Three Fund Portfolio" . We old Fogies all know who Taylor is. :D

In order to optimize your tax efficiency you may need to have more then three funds in your portfolio.
by Doc
Sat Dec 06, 2014 11:50 am
 
Forum: Investing - Theory, News & General
Topic: TIPs, Total Bond Market, or Both?
Replies: 35
Views: 3349

Re: VBS upgrade roll out has started

Just to be clear: am I correct that this change eliminates the 3 day wait for a sold ETF to go to Money Market Fund? No I think it still takes 3 days (was actually 4) to go into your MM fund. But the money is there as cash and you can buy something else with it in the same account. The problem with...
by Doc
Sat Dec 06, 2014 11:40 am
 
Forum: Investing - Theory, News & General
Topic: "Vanguard converting mutual fund accounts to brokerage?
Replies: 246
Views: 15594

Re: VBS upgrade roll out has started

Automatic investment Automatic exchange Automatic withdrawal Checkwriting My VG rep said auto exchange is coming back sometime first half of 2015. Everything else mentioned is still available. In fact, I like the new checkwriting better. I can set up my money market as the main fund to write checks...
by Doc
Sat Dec 06, 2014 11:30 am
 
Forum: Investing - Theory, News & General
Topic: "Vanguard converting mutual fund accounts to brokerage?
Replies: 246
Views: 15594

Re: How do you rebalance?

I'd either ignore it or sell enough to get back to a 15% allocation (near the middle of the band). I do it this way because "momentum" makes sense to me - I like to let my investments go where they want - "ride the wave" as someone said recently....until there is either too much...
by Doc
Sat Dec 06, 2014 11:12 am
 
Forum: Investing - Theory, News & General
Topic: How do you rebalance?
Replies: 40
Views: 3142

Re: TIPs, Total Bond Market, or Both?

It was not that long ago that TIPS were highly recommended. It wasn't too long ago that even Jack Bogle was advocating changing the TBM index because it was too heavy in Treasuries. Yet people are still advocating adding TIPS to TBM. Hey guys, TIPS stands for Treasury Inflation Protected Securities...
by Doc
Fri Dec 05, 2014 7:53 pm
 
Forum: Investing - Theory, News & General
Topic: TIPs, Total Bond Market, or Both?
Replies: 35
Views: 3349

Re: Someone tried to login to my vanguard account yesterday

Coincidences do happen I am unable to register for an online account with my insurance company. Their system insists that I'm already registered because someone else with exactly the same name and last 4 SSN is already registered. Yes they do. Yesterday a call to Vanguard elicited my last 4 SSN dig...
by Doc
Fri Dec 05, 2014 10:06 am
 
Forum: Investing - Theory, News & General
Topic: Someone tried to login to my vanguard account yesterday
Replies: 29
Views: 2956

Re: How do you rebalance?

Putting all the stock funds in taxable accounts and bond funds in tax-deferred acounts (like the wiki "Tax-efficient fund placement" suggests) makes it difficult to rebalance. Bill you might want to re-read that Wiki article. Efficient Low-yield money market, cash, short-term bond funds
by Doc
Thu Dec 04, 2014 5:19 pm
 
Forum: Investing - Theory, News & General
Topic: How do you rebalance?
Replies: 40
Views: 3142

Re: Theory on eligibility to upgrade to Vanguard Brokerage a

This dual system also exists (or used to exist) at T. Rowe Price. I believe both Vanguard and Price created a freestanding brokerage operation that was difficult to integrate with its house mutual fund operation. Fidelity integrated its brokerage operation with its mutual fund operation shortly aft...
by Doc
Wed Dec 03, 2014 10:48 am
 
Forum: Investing - Theory, News & General
Topic: Theory on eligibility to upgrade to Vanguard Brokerage accou
Replies: 12
Views: 2109

Re: How do you rebalance?

Other choices: In the accumulation phase, you can rebalance with contributions. In the withdrawal phase, you can rebalance with withdrawals. Jeff I don't know whether to applaud you for saving so much or lament you for having such a small portfolio that you can rebalance with contributions/withdraw...
by Doc
Wed Dec 03, 2014 10:45 am
 
Forum: Investing - Theory, News & General
Topic: How do you rebalance?
Replies: 40
Views: 3142

Re: Theory on eligibility to upgrade to Vanguard Brokerage a

It's a tiny issue but it is annoying all out of proportion to its size, both because it gives you the impression that Vanguard is making it hard to buy their own funds, and also because this issue does not seem to exist elsewhere. I suspect that it's a "legal" issue. Each Vanguard fund is...
by Doc
Wed Dec 03, 2014 9:44 am
 
Forum: Investing - Theory, News & General
Topic: Theory on eligibility to upgrade to Vanguard Brokerage accou
Replies: 12
Views: 2109

Re: What % of your fixed-income is TIPs?

Just so. It doesn't much matter how much risk one takes in bonds if one owns mostly equities. It also doesn't much matter what return is earned in bonds if one owns mostly equities. Right. That's the argument for being 100% Treasuries even long term for your FI if you have a heavy equity allocation.
by Doc
Wed Dec 03, 2014 9:38 am
 
Forum: Investing - Theory, News & General
Topic: What % of your fixed-income is TIPs?
Replies: 71
Views: 3500

Re: Theory on eligibility to upgrade to Vanguard Brokerage a

Does anyone see an advantage to the customer for this switch? If you are only investing in Vanguard mutual funds there is not much difference. Money moves in and out about a day faster on the brokerage platform as far as I can tell. The real benefit is not having a two to four day delay in exchangi...
by Doc
Wed Dec 03, 2014 9:20 am
 
Forum: Investing - Theory, News & General
Topic: Theory on eligibility to upgrade to Vanguard Brokerage accou
Replies: 12
Views: 2109

Re: What % of your fixed-income is TIPs?

Back to the original question. I don't think that TIPS as a percentage of your fixed income portfolio is relevant. If your idea is to have a total bond market type portfolio you should be replacing some of the Treasuries in TBM with TIPS. You would then have to add back corporates to keep the "...
by Doc
Wed Dec 03, 2014 9:14 am
 
Forum: Investing - Theory, News & General
Topic: What % of your fixed-income is TIPs?
Replies: 71
Views: 3500

Re: What % of your fixed-income is TIPs?

I like TIPS but I wouldn't recommend that anyone commit heavily to them without looking hard at 2008-2009 and deciding how they feel about it. A somewhat more illuminating picture might be to compare a TIPS fund with an intermediate term Treasury fund. http://quotes.morningstar.com/chart/fund/chart...
by Doc
Wed Dec 03, 2014 9:01 am
 
Forum: Investing - Theory, News & General
Topic: What % of your fixed-income is TIPs?
Replies: 71
Views: 3500
Next

Return to advanced search