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Thank you for the very helpful insights!

Folks, I just read "The Intelligent Portfolio" by Christopher Jones, the CIO of Financial Engines. http://www.amazon.com/Intelligent-Portfolio-Practical-Investing-Financial/dp/0470228040 Good book by the way. The author has an interesting chapter on holding individual stocks and shows that...

Folks, One question I've heard made is that there is no need for REITs if you own a rental property. To investigate I calculated the correlation of the REIT index with the Case Shiller Composite 10 Home Price Index (HPI) since 1987 and found there's only a 19% correlation between the two. The corre...

Folks, One question I've heard made is that there is no need for REITs if you own a rental property. To investigate I calculated the correlation of the REIT index with the Case Shiller Composite 10 Home Price Index (HPI) since 1987 and found there's only a 19% correlation between the two. The correl...

Let me frame this another way. Is there validity to the argument that the gov't shares in the risk of assets held in a taxable accounts if those assets are index funds held for the long haul?? I'm not seeing it.

Ha! I figured it was data mining for the product pushers.

Here's an interesting difference of opinion: JPMorgan states Returns for S&P 500 dividend paying stocks have significantly exceeded those of non-dividend paying stocks. http://www.jpmorganinstitutional.com/cm/BlobServer/Dividneds_More_than_Income_pdf.pdf?blobkey=id&blobwhere=1321477714741&am...

In theory, one should maintain the same AA in Roth as in Traditional, or try a best guess estimate to correct for future tax impacts.. In actuality, I tend to put more US equities (especially REIT and small cap) in Roth and more bonds in Traditional. I don't bother correcting for tax implications b...

Folks, What asset class do you hold in your Roth acct and why? On the one hand I want to grow my roth as large as possible (no RMDs, tax free distributions) so I hold those assets with the highest risk/return profiles (small cap value, mico caps,etc). Another school of thought is that the gov't effe...

I am 0% TIPS, but been buying I-bonds at the annual limit the past three years. So they are about 26% of my bonds. For your first $10k (+$5k with tax return) per year, it seems I-bonds at 1.67% yield are the clearly better choice now than negative yield on TIPS for new money. Or am I missing someth...

Please check my understanding of The five year constant maturity yield for a nominal treasury is 0.78 and -1.41 for TIP. Expected inflation is 2.19=0.78-(-1.41). If inflation is 2.19 the TIP holder will receive 2.19-1.41=0.78 nominal return and -1.41 real return. The nominal bond holder will receive...

Folks I've been back testing different retirement portfolios using boglehead simba's great spreadsheet and I've decided on a value tilt (which I took from Bill Bernstein) but I'm up in the air on a small tilt. The portfolio will not be drawn from but large volatility is undesired. This is for a rela...

Can anyone point to a methodology to compare bond funds. For example VGD short term corp ETF (VCSH) has a yield/duration of 1.2%/2.9 years, all investment grade. VGD short term bond (BSV) has same duration and a yield of 0.55%, the investment grade is a notch higher as the portfolio is treasury/agen...

I apologize if this question has been asked in the past but can anyone point to any research concerning how much of a bond allocation should be in TIPS and how much in nominal bonds?

Thanks

Kelly

Thank you!

Does anyone know whether the IRS will allow a partial deductible IRA contribution if a 401k fails a non-discrimination test and, therefore, is forced to refund some of an employee's contribution?

Thanks

Kelly

The securities are held by 3 rd party, creditors would not have legal claim to assets held by each fund.Lots of posts explain this http://www.google.com/search?sitesearch=bogleheads.org&q=if+vanguard+went+bankruptcy Here is about. Com says http://mutualfunds.about.com/b/2010/04/28/your-mutual-f...

This question has been asked before but without a clear answer. I get this question from folks when I tell them they're better off putting all their money in a portfolio of Vanguard ETFs. My thinking is that, in the unlikely event of a non-fraud type failure, the person still owns the securities tha...

I don't pay much attention to master limited partnerships but I was surprised to see the high yield on these things. EEP has a yield of 7.4%. What's the catch??

Kelly

If taxes are figured in and the exclusion ratio is really 78% then I believe the number will be higher than 6.57% that you would have to earn on the lump sum, since you would have to pay the taxes up front in year 1 and have $5962 withheld for those taxes no matter what the taxes turn out to be, so...

Here is another example (the numbers have been changed to protect the innocent): I have a Tax Sheltered (fixed) Annuity. It used to have a cash value of $95,000 and an annuitization value of $100,000. I rolled $90,000 over to another TSA. The remaining values are $5000 cash value and $10,000 annuit...

Folks I inherited a fixed annuity which, if I annuitize over ten years, pays an inconceivable rate of 8.32%. The surrender value is $29,808. The annuitization value is $35,195. I believe the difference is attribute to the first year 10% interest "bonus" on what was originally a $85,000 dep...

To clarify, there are several payout options. Both the 10 year and 20 yr rates equal 4.8%. 10 year is the minimum payout period.

The ten year payment is $3650.90 and the 20 is $2249.56. The surrender value is $29,807 and the annuitization value is $35,195.

Thanks

Kelly

Fantastic! Thank you for that effort.

Folks, I inherited a fixed annuity with a cash value of $29,807 and an annuitization value of $35,195. It appears that the difference is attributed to a 10% first year bonus on the original $85,000 purchase. There have been some withdrawals since. I can take a $29,807 lump sum or the payout option i...

Folks, I'm trying to find a bond calculator or excel template that will allow me to see what is going on with the amortization of a negative yield TIP. On a year by year basis I'd like to see how the coupons return a negative yield. I'm trying to model the second bond in this link http://www.treasur...