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Re: 250+ replies?? What's the deal?

If you think threads with a few hundred posts is a lot, you ain't seen nuthin': http://www.bogleheads.org/forum/viewtopic.php?f=10&t=88005&newpost=1538021 (Taylor's 3-fund portfolio thread, 455 posts). http://www.bogleheads.org/forum/viewtopic.php?t=5934 (Market Timer's leverage/margin call/...
by G-Money
Sat May 18, 2013 11:31 pm
 
Forum: Forum Issues and Administration
Topic: 250+ replies?? What's the deal?
Replies: 7
Views: 706

Re: Inflation protected, VAIPX vs VTAPX vs VTIP

If Vanguard changed-out the intermediate infl-protected with short-term infl-protected in their retirement asset-allocation accounts -maybe they know something we don't? Carl W. Don't count on it. Vanguard increased the stock allocation in its Target Retirement Funds just in time for the crash in 2...
by G-Money
Sat May 18, 2013 11:52 am
 
Forum: Investing - Help with Personal Investments
Topic: Inflation protected, VAIPX vs VTAPX vs VTIP
Replies: 11
Views: 1509

Re: Buffett on bonds

I'm trying to remember the last time Buffet recommended bonds.
by G-Money
Sat May 18, 2013 11:38 am
 
Forum: Investing - Theory, News & General
Topic: Buffet says no to bonds - recommends equities and cash
Replies: 66
Views: 5303

Re: Refinance Adivice

Here's a calculator that will show you how long it will take to break even. http://www.mtgprofessor.com/calculators/Calculator3a.html My rule of thumb had been to not refi unless I could break even in less than 12 to 18 months (3 of my refis had no closing costs at all). My guess is that with closin...
by G-Money
Sat May 18, 2013 5:04 am
 
Forum: Personal Finance (Not Investing)
Topic: Refinance Adivice
Replies: 8
Views: 522

Re: Bond Fund Duration, NAV & Return After Interest Rate Inc

To answer your question about CD vs TBM, yes, a 5 year CD with a yield higher than TBM would have a higher expected return than TBM. But it wouldn't need to work out that way. The CD will definitely return its APY every year for 5 years. TBM however, could increase in NAV if interest rates were lowe...
by G-Money
Fri May 17, 2013 7:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond Fund Duration, NAV & Return After Interest Rate Increas
Replies: 6
Views: 393

Re: Bond Fund Duration, NAV & Return After Interest Rate Inc

SEC yield is a much better statement of the fund's current yield than distribution yield. A bond with an SEC yield of 2% and a duration of 7 years can reasonably be expected to return 2% annually over the next 7 years. When comparing bond funds, it is much more useful to compare SEC yield, credit ri...
by G-Money
Fri May 17, 2013 7:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond Fund Duration, NAV & Return After Interest Rate Increas
Replies: 6
Views: 393

Re: Another mortgage question

If you can get 3.5% for no closing costs (which is different than no lender's fee--no closing costs includes no cost to you for appraisal, title insurance, filing fees, etc.), then there's no reason not to refi to that rate. If your goal is to pay off the loan in 10 years, I'm not sure it will be po...
by G-Money
Fri May 17, 2013 5:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Another mortgage question
Replies: 14
Views: 782

Re: Another mortgage question

How much are the closing costs?
by G-Money
Fri May 17, 2013 5:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Another mortgage question
Replies: 14
Views: 782

Re: $550M Powerball Jackpot - take cash or annuity?

No need to buy TLT or GLD (except relatively small slices for rebalancing). Just buy 30 year Treasuries at auction and buy this: http://www.time.com/time/specials/packages/article/0,28804,2016258_2016259_2016264,00.html Hah, that's funny but I don't want that much value sitting around my house, too...
by G-Money
Fri May 17, 2013 5:15 pm
 
Forum: Investing - Theory, News & General
Topic: $600M Powerball Jackpot - take cash or annuity?
Replies: 86
Views: 4415

Re: $550M Powerball Jackpot - take cash or annuity?

For amusement value I looked up the daily trade values for my funds and realized I'd have to spread out my purchases if I didn't want to move the market: VBR $17.6 million VWO $757.1 million TLT $937.6 million GLD $1857.7 million So I guess dollar cost averaging is the way to go if you're going to ...
by G-Money
Fri May 17, 2013 4:50 pm
 
Forum: Investing - Theory, News & General
Topic: $600M Powerball Jackpot - take cash or annuity?
Replies: 86
Views: 4415

Re: What were the little things that led you to index invest

It was simple math for me. When I started out, I knew that I knew nothing about investing. As I was reading about mutual funds, I came across a description of an index fund--average returns with below-average costs. For someone who knew he didn't know what he was doing, this was immediately appealin...
by G-Money
Fri May 17, 2013 4:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: What were the little things that led you to index investing?
Replies: 48
Views: 1821

Re: $550M Powerball Jackpot - take cash or annuity?

I found that online resources report federal tax on lottery winnings is 25%. State taxes vary, California is 0%. Ordinary income tax. California tax is only zero on its own state lottery. Since Powerball is not a CA state lottery, the top tax rate of 13.3% will apply. a. California Lottery Winnings...
by G-Money
Fri May 17, 2013 12:34 pm
 
Forum: Investing - Theory, News & General
Topic: $600M Powerball Jackpot - take cash or annuity?
Replies: 86
Views: 4415

Re: $550M Powerball Jackpot - take cash or annuity?

I found that online resources report federal tax on lottery winnings is 25%. Where did you find that? Here's what I found: The prize, no matter how the winners take it, is considered income. So the highest federal tax rate of 35% will apply. http://money.cnn.com/2012/11/30/pf/taxes/powerball-lotter...
by G-Money
Fri May 17, 2013 12:07 pm
 
Forum: Investing - Theory, News & General
Topic: $600M Powerball Jackpot - take cash or annuity?
Replies: 86
Views: 4415

Re: Vanguard Should Have Passive Funds, Without Indexes

I think a company the size of Vanguard could produce a set of funds similar to DFA in that they don't track an index per-se, are very low-cost, and don't require an advisor to sell them. Vanguard offers many low-cost actively managed funds which do a good job of sticking to their knitting. What OP ...
by G-Money
Fri May 17, 2013 12:00 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard Should Have Passive Funds, Without Indexes
Replies: 13
Views: 1149

Re: Bond Duration change in regards to interest expectation?

This is not about you, G-Money, or about me. It is about words versus investment strategies - and about how some words are more meaningful to some people, less meaningful (meaningless) to others. So, words like "market timing" used in relation to an investment strategy are just words. All...
by G-Money
Fri May 17, 2013 10:36 am
 
Forum: Investing - Theory, News & General
Topic: Bond Duration change in regards to interest expectation?
Replies: 13
Views: 468

Re: Roth IRA & Index Fund Transaction Fees

I would not buy a Schwab mutual fund at eTrade if there was a transaction fee. I wouldn't buy any mutual fund with a transaction fee. Couldn't you buy the Schwab mutual fund at Schwab? Otherwise, look for no-transaction fee ETFs, whether at eTrade or elsewhere.
by G-Money
Fri May 17, 2013 10:18 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth IRA & Index Fund Transaction Fees
Replies: 4
Views: 181

Re: Bond Duration change in regards to interest expectation?

richard wrote:Everyone knows bond yields will increase and prices decrease at some point.

I must be behind the curve. I don't even know that much.
by G-Money
Fri May 17, 2013 10:07 am
 
Forum: Investing - Theory, News & General
Topic: Bond Duration change in regards to interest expectation?
Replies: 13
Views: 468

Re: Great new Amazon delivery option

The whole reason I use Amazon is so I don't need to go somewhere to get something, it can just be delivered straight to my door. I can't imagine I'll be getting any use out of that option. I guess it's a nice feature for more valuable deliveries or folks who live in apartments/condos/etc.
by G-Money
Fri May 17, 2013 10:04 am
 
Forum: Personal Consumer Issues
Topic: Great new Amazon delivery option
Replies: 18
Views: 2403

Re: Bond Duration change in regards to interest expectation?

"Market timing" is nothing but words. Yes. But words have meaning. Here's what I mean when I say "market timing": Market timing is the strategy of making buy or sell decisions of financial assets (often stocks) by attempting to predict future market price movements. The predicti...
by G-Money
Fri May 17, 2013 10:01 am
 
Forum: Investing - Theory, News & General
Topic: Bond Duration change in regards to interest expectation?
Replies: 13
Views: 468

Re: Bond Duration change in regards to interest expectation?

100% agree, LH. Market timing is market timing. I have no problem with "short bonds always," if that's what's appropriate for an investor. But I do have a problem with "short bonds now." Here is the way I look at it. You should "stay the course" in terms of your risk p...
by G-Money
Fri May 17, 2013 9:56 am
 
Forum: Investing - Theory, News & General
Topic: Bond Duration change in regards to interest expectation?
Replies: 13
Views: 468

Re: $550M Powerball Jackpot - take cash or annuity?

Sounds familiar: http://www.bogleheads.org/forum/viewtopic.php?t=94579&f=2 I'm in the camp of avoiding counter-party risk in this situation. Cash for me. But where do you put the cash? :moneybag Invest according to your AA, taking into account your new need, willingness, and ability to take ris...
by G-Money
Fri May 17, 2013 9:31 am
 
Forum: Investing - Theory, News & General
Topic: $600M Powerball Jackpot - take cash or annuity?
Replies: 86
Views: 4415

Re: $550M Powerball Jackpot - take cash or annuity?

Sounds familiar: viewtopic.php?t=94579&f=2

I'm in the camp of avoiding counter-party risk in this situation. Cash for me.
by G-Money
Fri May 17, 2013 9:11 am
 
Forum: Investing - Theory, News & General
Topic: $600M Powerball Jackpot - take cash or annuity?
Replies: 86
Views: 4415

Re: Bond Duration change in regards to interest expectation?

100% agree, LH. Market timing is market timing.

I have no problem with "short bonds always," if that's what's appropriate for an investor. But I do have a problem with "short bonds now."
by G-Money
Fri May 17, 2013 9:04 am
 
Forum: Investing - Theory, News & General
Topic: Bond Duration change in regards to interest expectation?
Replies: 13
Views: 468

Re: Annuity Feature in the Vanguard Balanced Index

Thanks for the link. My guess is that the Balanced Index may once have had an annuity feature. Given the reference to the Wilshire index (which was replaced by MSCI, which was replaced by CRSP), my bet is the info is at least 10 years old. I currently hold Balanced Index in my 401k, and haven't seen...
by G-Money
Fri May 17, 2013 7:28 am
 
Forum: Investing - Theory, News & General
Topic: Annuity Feature in the Vanguard Balanced Index
Replies: 7
Views: 469

Re: Vanguard Should Have Passive Funds, Without Indexes

So what you're saying is that Vanguard should be both Vanguard and DFA. I've never understood the thinking that Vanguard should be all things to all people. Vanguard is a store. If you like some of the products it offers, you should buy them. If you don't like some of its products, but prefer the pr...
by G-Money
Fri May 17, 2013 6:54 am
 
Forum: Investing - Theory, News & General
Topic: Vanguard Should Have Passive Funds, Without Indexes
Replies: 13
Views: 1149

Re: Annuity Feature in the Vanguard Balanced Index

I just checked the Vanguard page for annuities, and while there is a "Vanguard Variable Annuity - Balanced Portfolio," it is very different than the balanced fund. It's actively manage, investing in value stocks for the equity portion and corporate bonds for the fixed income portion. And s...
by G-Money
Fri May 17, 2013 6:41 am
 
Forum: Investing - Theory, News & General
Topic: Annuity Feature in the Vanguard Balanced Index
Replies: 7
Views: 469

Re: Annuity Feature in the Vanguard Balanced Index

Interesting. When I look up VBIAX on the Vanguard website, I see this language under the "Investment Strategy" section: Investment strategy The fund employs a “passive management”—or indexing—investment approach designed to track the performance of two benchmark indexes. The fund invests b...
by G-Money
Fri May 17, 2013 6:33 am
 
Forum: Investing - Theory, News & General
Topic: Annuity Feature in the Vanguard Balanced Index
Replies: 7
Views: 469

Re: Is VTIP better than VIPSX?

VTIP is better if you want a shorter duration tips fund. The VIPSX is better if you want longer duration. Simply a matter of preference and need.
by G-Money
Thu May 16, 2013 6:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is VTIP better than VIPSX? [Short-Term vs. (longer) TIPS]
Replies: 13
Views: 1321

Re: Allocation in Multiple Accounts + Emergency Funds

Looks like a fine plan to me. My only quibble is I think you could increase the % in international. But if you're happy with 15%, then leave it there. I think the percentage is 20%, that was an early version of the question. I was trying to mirror the Vanguard Target Retirement 2025 Fund (VTTVX). A...
by G-Money
Thu May 16, 2013 6:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Allocation in Multiple Accounts + Emergency Funds
Replies: 6
Views: 370

Re: Are Short Term Bond Funds My Answer

GNMAs are riskier than short-term investment-grade bonds, but the higher yield of GNMAs represents the market's estimation of proper compensation for that risk. If your goal is simply to preserve the nominal value of your principal, then short-term investment grade bonds do a better job of this than...
by G-Money
Thu May 16, 2013 6:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Are Short Term Bond Funds My Answer
Replies: 10
Views: 1178

Re: Allocation in Multiple Accounts + Emergency Funds

Looks like a fine plan to me. My only quibble is I think you could increase the % in international. But if you're happy with 15%, then leave it there. I may need to balance within the 401k to match the Total Stock Fund. Unlikely. If, for example, small caps grow faster than the large caps, small cap...
by G-Money
Thu May 16, 2013 5:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Allocation in Multiple Accounts + Emergency Funds
Replies: 6
Views: 370

Re: Emerging Market Bond Fund is available

In fairness, must mutual fund companies that have loads don't call them "loads." Usually they are called "sales charges" which sounds very much like a "purchase fees." And, to the extent both a sales charge and a purchase fee constitute a portion of assets which are no...
by G-Money
Thu May 16, 2013 4:28 pm
 
Forum: Investing - Theory, News & General
Topic: Emerging Market Bond Fund is available
Replies: 75
Views: 4215

Re: disregarding ''daily noise"

Repeat after me:

"It's all priced in."
"It's all priced in."
"It's all priced in."

By the time you're reading about it, it's all priced in.
by G-Money
Thu May 16, 2013 4:04 pm
 
Forum: Investing - Theory, News & General
Topic: disregarding ''daily noise"
Replies: 34
Views: 1860

Re: Protecting Gains

Appreciate a "Helper" link to this process to find out how this works. I understood that "puts" were rather risky??? only because they seem to make investing more like gambling :?: The strategy you're proposing is also risky. You outline a plan for jumping out of a stock, but wh...
by G-Money
Thu May 16, 2013 4:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Protecting Gains
Replies: 21
Views: 1473

Re: Protecting Gains

Evidently some of the bigger brokers? etc have set this strategy into effect already when you hear about computer sell off''s. Like I said, the big "boys" do it and I do not know what criteria they use to "trigger" a sale order. I think, more often than not, what you're reading ...
by G-Money
Thu May 16, 2013 3:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Protecting Gains
Replies: 21
Views: 1473

Re: You probably know a person like this

Actually, I don't know anybody like that. What a phenomenally unlucky fellow. :)
by G-Money
Thu May 16, 2013 3:10 pm
 
Forum: Investing - Theory, News & General
Topic: You probably know a person like this
Replies: 22
Views: 3013

Re: VG ex-US Small-Cap Fund or ETF in IRA?

VSS has consistently traded at a premium of between 0.50% and 0.75%. My bet is that once the purchase fee disappears for VFSVX, so will the premium for VSS. So, if you're planning on selling out of the fund before Vanguard eliminates the purchase fee on VFSVX, go with the ETF (good luck timing that ...
by G-Money
Thu May 16, 2013 3:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: VG ex-US Small-Cap Fund or ETF in IRA?
Replies: 13
Views: 698

Re: Credit Union or Roth for Emergency Funds?

Stan Dup wrote:Hmmm, I am just feeling confident on the three-fund retirement portfolio idea. I have not devoted any time to this. I will have to do more research.

Which fund are you using for bonds for the 3-fund portfolio? Chances are, it's a perfectly fine fund for your emergency fund, too.
by G-Money
Thu May 16, 2013 1:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: Credit Union or Roth for Emergency Funds?
Replies: 12
Views: 573

Re: buying bank IRA CDs with IRA money

letsgobobby wrote:where does one find a listing of the best IRA CD rates? Bankrate?

My favorites:
http://www.depositaccounts.com/
http://www.fatwallet.com/forums/finance/682884/
by G-Money
Thu May 16, 2013 12:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: buying bank IRA CDs with IRA money
Replies: 6
Views: 224

Re: Credit Union or Roth for Emergency Funds?

Any recommendations on a Vanguard fund to keep the emergency funds in? I probably should keep that money in something a little safer than my long term investments. I'd use a short or intermediate-term, investment grade bond fund. Be sure to check growth-of-$10,000 charts to see how they performed i...
by G-Money
Thu May 16, 2013 12:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: Credit Union or Roth for Emergency Funds?
Replies: 12
Views: 573

Re: buying bank IRA CDs with IRA money

While you're investigating, I'd also find out how to get your money out of a bank IRA CD, particularly if the bank does not have an IRA savings/MM account option.
by G-Money
Thu May 16, 2013 12:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: buying bank IRA CDs with IRA money
Replies: 6
Views: 224

Re: Airfare keeps going up. Buy now or wait?

I'll preface this with saying I have no experience with booking (or taking) international flights. So perhaps others on the forum can contribute actual knowledge about typical pricing trends for these flights. If you have an inflexible schedule, and you're willing to pay $2,050, then I'd just book t...
by G-Money
Thu May 16, 2013 12:27 pm
 
Forum: Personal Consumer Issues
Topic: Airfare keeps going up. Buy now or wait?
Replies: 38
Views: 1654

Re: Another worried bond investor

But to say that investors who choose a higher-yielding TBM over CDs with similar or lower yields "idiotic" is, IMO, both rude and inaccurate. It would be rude and inaccurate. But that wasn't what I said. What I said was that making the choice to invest based on "convenience" whe...
by G-Money
Thu May 16, 2013 11:35 am
 
Forum: Investing - Help with Personal Investments
Topic: Another worried bond investor
Replies: 50
Views: 2701

Re: Another worried bond investor

given the rates, decent alternatives are found in CDs/Cash which has never been the case before. I'm not sure I'd say "never." Back in 2007, PenFed was offering 6% CDs when the 10-year Treasury was in the 4%-5% range. I believe over much of the past decade, the best CDs have offered a yie...
by G-Money
Thu May 16, 2013 11:04 am
 
Forum: Investing - Help with Personal Investments
Topic: Another worried bond investor
Replies: 50
Views: 2701

Re: Emerging Market Bond Fund is available

Can I assume they're still building this fund, looking at the load and the higher expense ratios? There is no load. Is not a "purchase fee" another name for "load"? No, because a load is money that goes to the sales channel to reward them for selling the fund, while the purchase...
by G-Money
Thu May 16, 2013 10:11 am
 
Forum: Investing - Theory, News & General
Topic: Emerging Market Bond Fund is available
Replies: 75
Views: 4215

Re: Another worried bond investor

So, for the retail investor, to get the equivalent of the zero risk savings account, you would have to go out to 7 years on the yield curve, with its associated interest rate risk. You can draw your own conclusion, but to me, it is pretty clear where I want to be on the yield curve now. I think tha...
by G-Money
Thu May 16, 2013 9:58 am
 
Forum: Investing - Help with Personal Investments
Topic: Another worried bond investor
Replies: 50
Views: 2701

Re: Credit Union or Roth for Emergency Funds?

If the options are keeping an emergency fund in taxable or funding a Roth, then funding the Roth is preferable, since you can pull the contribution (not any gains) at any time tax- and penalty-free. Roth space is use-it-or-lose-it, so it'd be a shame to waste it. You can still in est the emergency f...
by G-Money
Thu May 16, 2013 12:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Credit Union or Roth for Emergency Funds?
Replies: 12
Views: 573

Re: Another worried bond investor

Can others more knowledgeable than me comment on whether they agree with these comments and how does one compute the % change in bond prices for 1% change in interest rates? The key is duration. This Wiki article explains it better than I could: http://www.bogleheads.org/wiki/Bonds:_Advanced_Topics...
by G-Money
Thu May 16, 2013 12:12 am
 
Forum: Investing - Help with Personal Investments
Topic: Another worried bond investor
Replies: 50
Views: 2701

Re: Another worried bond investor

Tip from Uncle Buck You invest in the NOW. Now is bonds yielding next to nothing and its not going to change anytime soon. You should have no more then 20% bonds at any age at this time. When yields raise invest as they go up. The people who stick their head in the sand and invest according to thei...
by G-Money
Wed May 15, 2013 11:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: Another worried bond investor
Replies: 50
Views: 2701
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