Search found 6316 matches

by Wagnerjb
Mon Aug 31, 2015 1:16 pm
Forum: Investing - Theory, News & General
Topic: Does anyone buy individual bonds and CDs?
Replies: 22
Views: 1729

Re: Does anyone buy individual bonds and CDs?

With 7-year Treasury at about 2% last month, those are nice premiums. Were they new issue or secondary market? If the latter, premium or discount? Fidelity, Vanguard, or other? When I've looked in the past, Vanguard typically had slightly better CD rates, but I haven't compared lately. Right now, j...
by Wagnerjb
Mon Aug 31, 2015 9:55 am
Forum: Investing - Theory, News & General
Topic: Managing sequence risk approaching retirement using valuations
Replies: 13
Views: 740

Re: Managing sequence risk approaching retirement using valuations

It is also a reason to be careful about those offers of a lump sum vs pension decisions. The lump sum seems so attractive that it can often dazzle a bit too much especially when the offer happens during a nice bull market. A pension plan is similar to a fixed income instrument, and should be accoun...
by Wagnerjb
Sun Aug 30, 2015 8:12 pm
Forum: Investing - Theory, News & General
Topic: Investing Money for Taxes
Replies: 20
Views: 1148

Re: Investing Money for Taxes

Just wondering how one goes about weighing the trade-off. On one hand you get about 1% higher after-tax yield than a savings account, but could be taking a large enough loss to wipe out five years of gains. In the long run it will probably pay off. Just not sure how one best goes away valuing that ...
by Wagnerjb
Sun Aug 30, 2015 7:06 pm
Forum: Investing - Theory, News & General
Topic: Does anyone buy individual bonds and CDs?
Replies: 22
Views: 1729

Re: Does anyone buy individual bonds and CDs?

People have mentioned picking up 10-year CDs at yields of 3% or even 3.5% recently. Currently seeing yield of 2.9% for 10-year CD at Fidelity, vs. 10-year Treasury at 2.19%, so CD premium of about 70 basis points, which is nice, but a bit below my average over last five years. Kevin Last month, I b...
by Wagnerjb
Sun Aug 30, 2015 6:30 pm
Forum: Investing - Theory, News & General
Topic: Investing Money for Taxes
Replies: 20
Views: 1148

Re: Investing Money for Taxes

Have you ever had to sell this fund at a loss? Looking at the past returns it has some dips, about -5% I would be worried about being forced to sell on a dip. One -5% loss would erase 5 years of gains relative to the savings account. The difference would have to come out of my general emergency fun...
by Wagnerjb
Sun Aug 30, 2015 12:12 am
Forum: Investing - Theory, News & General
Topic: Investing Money for Taxes
Replies: 20
Views: 1148

Re: Investing Money for Taxes

I often am in that situation, and I use the same mutual fund that I use for shorter term needs. That is typically the Vanguard Intermediate term Muni fund. In my case, I have plenty of other assets to use (in case the fund drops) so I am comfortable with the low (but not zero) level of risk in that...
by Wagnerjb
Sat Aug 29, 2015 11:56 pm
Forum: Investing - Theory, News & General
Topic: Does anyone buy individual bonds and CDs?
Replies: 22
Views: 1729

Re: Does anyone buy individual bonds and CDs?

A fair number of Bogleheads buy "brokered CDs". They are essentially CDs purchased on the secondary market. You can search on the many posts that describe the Pro's and Con's of them. I recently purchased a sizable lot of them with a portion of the proceeds from a Pension Lump Sum payout. ...
by Wagnerjb
Sat Aug 29, 2015 11:23 am
Forum: Personal Finance (Not Investing)
Topic: Protecting Your Portfolio From Hackers
Replies: 7
Views: 833

Re: Protecting Your Portfolio From Hackers

[*]Keeping hard-copies of statements as evidence of assets and balances in case the firm's records get wiped out. [*]Diversifying investments across several firms, in case one gets hit hard.[/list] I keep electronic copies of my statements, and I use two VERY LARGE brokerages (Vanguard and Fidelity...
by Wagnerjb
Sat Aug 29, 2015 11:19 am
Forum: Investing - Theory, News & General
Topic: Investing Money for Taxes
Replies: 20
Views: 1148

Re: Investing Money for Taxes

I often am in that situation, and I use the same mutual fund that I use for shorter term needs. That is typically the Vanguard Intermediate term Muni fund. In my case, I have plenty of other assets to use (in case the fund drops) so I am comfortable with the low (but not zero) level of risk in that ...
by Wagnerjb
Sat Aug 29, 2015 9:25 am
Forum: Personal Finance (Not Investing)
Topic: Take a 0.74% car loan or pay with cash?
Replies: 43
Views: 2974

Re: Take a 0.74% car loan or pay with cash?

Mathematically speaking it's a no brainer. Take the loan. Put the cash an FDIC insured savings account. Or a CD. Or a short term bond fund. Or pretty much anything. Beating 0.74% over a period of 5 years doesn't require a lot of risk. Honestly I would put it in a 60/40 balanced fund. Or even more a...
by Wagnerjb
Wed Aug 26, 2015 6:50 pm
Forum: Investing - Help with Personal Investments
Topic: Help me restructure my inherited IRA
Replies: 9
Views: 567

Re: Help me restructure my inherited IRA

Wouldn't transferring the whole IRA from MS to Vanguard force me to have to liquidate the CDs? I think you have gotten some good answers to this already. I don't know the answer, but if MS would not transfer them "in kind" to Vanguard, I would consider leaving them at MS (but still move &...
by Wagnerjb
Wed Aug 26, 2015 6:44 pm
Forum: Investing - Theory, News & General
Topic: S & P 500's Global Sales
Replies: 13
Views: 1146

Re: S & P 500's Global Sales

So here is a thought – would you invest in a fund that invests randomly? Heads, so Unilever is in – Tails, so P&G is out? Would you invest in a fund that invested based on rules that don't have an impact of the stock return. Companies with an occult symbol like P&G are in, those who don't a...
by Wagnerjb
Wed Aug 26, 2015 3:13 pm
Forum: Investing - Theory, News & General
Topic: S & P 500's Global Sales
Replies: 13
Views: 1146

Re: S & P 500's Global Sales

Or would you want to invest in a fund that is based on rules that have a causal impact on returns? Liquid markets to US investors, audit standards to US standards, under US jurisdiction, etc. Maybe even "has to have X percentage of revenue from the US" (Not sure how this one would shake o...
by Wagnerjb
Wed Aug 26, 2015 2:20 pm
Forum: Investing - Theory, News & General
Topic: Wash Sale Quiz!
Replies: 38
Views: 2476

Re: Wash Sale Quiz!

livesoft wrote:Investor needs $35,000 to buy a new Lexus at half-off the MSRP


Forget about the wash sale stuff....where can I buy a new Lexus at half off the MSRP? :D
by Wagnerjb
Wed Aug 26, 2015 2:12 pm
Forum: Investing - Help with Personal Investments
Topic: Help me restructure my inherited IRA
Replies: 9
Views: 567

Re: Help me restructure my inherited IRA

I would sell all of the stocks and the mutual funds, and invest in low-cost passive funds (such as those offered by Vanguard). I would first check to see what commission Morgan Stanley would charge to sell the stocks and funds, and if the commissions are much greater than those at Vanguard, I would ...
by Wagnerjb
Wed Aug 26, 2015 1:53 pm
Forum: Investing - Theory, News & General
Topic: S & P 500's Global Sales
Replies: 13
Views: 1146

Re: S & P 500's Global Sales

ray.james wrote:If you look at chart for international companies, they too will look the same.


Exactly! If you are afraid of international investing, just skip it. But the diversification benefits are very real.

Best wishes.
by Wagnerjb
Wed Aug 26, 2015 10:14 am
Forum: Investing - Help with Personal Investments
Topic: Another Wash Rule ?
Replies: 7
Views: 601

Re: Another Wash Rule ?

"Substantially identical" is also defined in Pub 550. Again, I have seen some differing opinions about what that means. Different share classes of the same mutual fund and ETF would be an obvious example of identical investments. I would also consider two index funds from two different pr...
by Wagnerjb
Wed Aug 26, 2015 9:18 am
Forum: Investing - Help with Personal Investments
Topic: Threshold for tlh
Replies: 4
Views: 445

Re: Threshold for tlh

1. Do not let a loss become a long-term loss. Always harvest while a loss is still short-term. Just to clarify, I think the advice is "Do not let a short-term loss become a long-term loss." Sometimes an investment that you have held for several years takes a dive, and you have an opportun...
by Wagnerjb
Tue Aug 25, 2015 10:03 am
Forum: Investing - Theory, News & General
Topic: [spurned advisor purports there is a Vanguard] Class Action Suit?
Replies: 43
Views: 5312

Re: Class Action Suit?

He is grasping at straws.
by Wagnerjb
Sun Aug 23, 2015 6:19 pm
Forum: Personal Finance (Not Investing)
Topic: wash sale rule??
Replies: 1
Views: 320

Re: wash sale rule??

Based on a quick look at the two funds - lined up against each other for annual total return over the past 4 years - I don't see enough similarity that (In my Opinion) these would be considered a wash sale pair.

Best wishes.
by Wagnerjb
Sun Aug 23, 2015 8:41 am
Forum: Investing - Help with Personal Investments
Topic: Substantially Identical?
Replies: 15
Views: 1336

Re: Substantially Identical?

From a post I made several years ago: Substantially identical securities. Two issues of U.S. Treasury 2 1/4 percent bonds which differ slightly only as to first call, maturity and interest payment dates, are substantially identical securities within the meaning of the wash sales provisions. Conseque...
by Wagnerjb
Sat Aug 22, 2015 9:07 pm
Forum: Investing - Help with Personal Investments
Topic: Substantially Identical?
Replies: 15
Views: 1336

Re: Substantially Identical?

^^ I see. You have no rulings to cite. From the referenced pdf: This white paper is a work in progress. We are currently requesting comments on its contents as we complete the final version of this paper. Please send your comments to jmichaels@g2ft.com. We look forward to hearing from you. g2ft.com...
by Wagnerjb
Sat Aug 22, 2015 7:36 pm
Forum: Investing - Help with Personal Investments
Topic: Substantially Identical?
Replies: 15
Views: 1336

Re: Substantially Identical?

... I believe there is a Tax Court ruling that two Treasury bonds that aren't identical are considered "substantially identical". I recall that the maturity dates of the two were not identical, but close to each other. Same for the interest rate. This is a helpful example to understand wh...
by Wagnerjb
Sat Aug 22, 2015 6:20 pm
Forum: Investing - Help with Personal Investments
Topic: Substantially Identical?
Replies: 15
Views: 1336

Re: Substantially Identical?

Outside of funds, "substantially identical," in practice, means having the same CUSIP number. I think, but can't prove, that congress intended the wording to prevent anybody from successfully avoiding a wash sale by arguing "but your honor, the xyz corp shares I bought weren't litera...
by Wagnerjb
Sat Aug 22, 2015 11:27 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio of a 51 year old - can you help?
Replies: 11
Views: 2177

Re: Portfolio of a 51 year old - can you help?

On the hsa, however, I need to think about that some more. It is really hard to walk away from a tax deductible, tax deferred and tax fee program (the proverbial trifecta). If nothing else, its saves a $1000+ each year in taxes - which is still worth some hassle, I think. Still, as I mentioned, you...
by Wagnerjb
Sat Aug 22, 2015 10:14 am
Forum: Investing - Theory, News & General
Topic: Buy and Hold
Replies: 10
Views: 1403

Re: Buy and Hold

Bogleheads investment philosophy : Keep costs low http://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_philosophy#Keep_costs_low 3 fund has a average 0.2% expense ratio, $1M initial portfolio has a yearly $2,000/year drag. 20 years $40,000. The equivalent of 1 years income if a 4% withdrawal ...
by Wagnerjb
Sat Aug 22, 2015 10:05 am
Forum: Investing - Theory, News & General
Topic: Buy and Hold
Replies: 10
Views: 1403

Re: Buy and Hold

Background http://www.forbes.com/forbes/1999/0614/6312298a.html Bogle recommends the ultimate in buy-and-hold investing: a completely static portfolio. He would buy the 50 largest companies in the S&P 500 and then never buy another. The portfolio would ignore the constant small adjustments that...
by Wagnerjb
Sat Aug 22, 2015 9:56 am
Forum: Investing - Theory, News & General
Topic: How long will you"Stay the Course"?
Replies: 99
Views: 8662

Re: How long will you"Stay the Course"?

The Wizard wrote:My resolve hasn't broken in forty-some years of investing thus far, so I anticipate a similar pattern for the next forty...


Same here
by Wagnerjb
Fri Aug 21, 2015 5:28 pm
Forum: Investing - Help with Personal Investments
Topic: Brokered CDs - 2 interesting things
Replies: 10
Views: 1038

Re: Brokered CDs - 2 interesting things

One great thing I like about Vanguard brokerage (probably true if Fidelity) is that no broker (=salesperson) is constantly phoning (or emailing) all the time with alleged good deals. Such brokers (I have been hounded from time to time by such folks) always claim that they have better deals, etc. an...
by Wagnerjb
Fri Aug 21, 2015 5:16 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Options for Employer Retirement Account
Replies: 1
Views: 148

Re: Help with Options for Employer Retirement Account

I would go with Fidelity and use their two Spartan funds. Use the rest of your portfolio to balance the overall asset allocation to meet your targets.

Best wishes.
by Wagnerjb
Fri Aug 21, 2015 9:24 am
Forum: Investing - Theory, News & General
Topic: Bogle: retirees should focus on dividends
Replies: 157
Views: 15500

Re: Bogle: retirees should focus on dividends

I probably didn't explain the dilemma very succinctly. The problem is if you've built a large tax-efficient portfolio, with TSM as the core, you can't just swap it out for the High Dividend Yield fund in order to gain a larger dividend stream in retirement. Logistically it doesn't make sense. 1) Co...
by Wagnerjb
Thu Aug 20, 2015 6:58 pm
Forum: Investing - Help with Personal Investments
Topic: Brokered CDs - 2 interesting things
Replies: 10
Views: 1038

Re: Brokered CDs - 2 interesting things

I recently waded into the brokered CD market to invest a large share of a pension Lump Sum that I received in July. Like you, I checked at least daily (on the Fidelity and Vanguard sites....I have funds at both locations) and I consistently found the brokered CDs to have superior rates to those that...
by Wagnerjb
Thu Aug 20, 2015 6:41 pm
Forum: Investing - Theory, News & General
Topic: Current Value of Real Property Assets on "VTI" Corporate Balance Sheets?
Replies: 7
Views: 587

Re: Current Value of Real Property Assets on "VTI" Corporate Balance Sheets?

I am a CPA, and I can vouch that the book value is easy to get. Maybe it might take some effort to compile it, but it is all there. That being said, most would agree (me too) that the book value is not helpful to making any kind of investment decision. Unfortunately, the more important variable (mar...
by Wagnerjb
Wed Aug 19, 2015 3:31 pm
Forum: Investing - Theory, News & General
Topic: Bogle: retirees should focus on dividends
Replies: 157
Views: 15500

Re: Bogle: retirees should focus on dividends

Yes, I know these people also. And some manage to live this way year after year. I have seem some get a 'Rude Awakening' with a Life changing event. This can be painful. We had a very rich car dealer end up in dire straights a few years ago. http://www.startribune.com/denny-hecker-files-for-chapter...
by Wagnerjb
Wed Aug 19, 2015 2:37 pm
Forum: Investing - Theory, News & General
Topic: Bogle: retirees should focus on dividends
Replies: 157
Views: 15500

Re: Bogle: retirees should focus on dividends

Your retirement needs don't arbitrarily scale up with your income while working. That doesn't make any sense, unless you are using a model of extreme 100% hedonic adaptation. The guy making $300,000 doesn't need to spend $200,000 per year in retirement. That's excessive. He can easily downgrade his...
by Wagnerjb
Wed Aug 19, 2015 1:58 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio of a 51 year old - can you help?
Replies: 11
Views: 2177

Re: Portfolio of a 51 year old - can you help?

I don't see a lot of benefit in contributing to the non-deductible IRA's. They are such a small part of your portfolio and you're not planning on doing a backdoor Roth. Unlike a taxable account, you can't withdraw that money until 59.5 without penalty. When you do withdraw, the distributions are ta...
by Wagnerjb
Wed Aug 19, 2015 1:38 pm
Forum: Investing - Theory, News & General
Topic: Bogle: retirees should focus on dividends
Replies: 157
Views: 15500

Re: Bogle: retirees should focus on dividends

If you have gotten to your taxable space, you probably have several million net worth. In that scenario you can probably safely live off the 2% dividend yield of the total stock market. Why on earth would somebody do that? The savings math is identical for the guy making $30,000 and the guy making ...
by Wagnerjb
Wed Aug 19, 2015 9:11 am
Forum: Investing - Theory, News & General
Topic: How many here follow Bogle's "no international" theory?
Replies: 82
Views: 5306

Re: How many here follow Bogle's "no international" theory?

My target is 50% international, and I am at 47% (as of my last monthly update).
by Wagnerjb
Tue Aug 18, 2015 9:03 pm
Forum: Investing - Help with Personal Investments
Topic: Company Directors Acquiring Stock
Replies: 12
Views: 1050

Re: Company Directors Acquiring Stock

I don't know why I didn't just give the company name. The SEC filings are public information. The company is BIO-key (BKYI). They offer fingerprint authentication software. They have contracts with the FBI, NCR, AT&T, Aeon Credit Services Malaysia, and numerous others. They're in partnership wi...
by Wagnerjb
Tue Aug 18, 2015 1:49 pm
Forum: Investing - Help with Personal Investments
Topic: Company Directors Acquiring Stock
Replies: 12
Views: 1050

Re: Company Directors Acquiring Stock

Last week a CFO and Directors of a penny stock filed SEC Reports that showed them acquiring large amounts of Common Stock and Stock Options. Would this normally be considered good news or bad news. They've been negotiating with a large company for several months for a large investment from them and...
by Wagnerjb
Tue Aug 18, 2015 1:33 pm
Forum: Investing - Theory, News & General
Topic: Should you own foreign stocks?
Replies: 67
Views: 4351

Re: Should you own foreign stocks?

VGTSX largest weighted stock is Nestle SA that is recently paying a 2.92% dividend yield http://www.bloomberg.com/quote/NESN:VX and it looks like Switzerland have a 35% dividend withholding tax pdf page 8 http://www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-switzerlandguide-2...
by Wagnerjb
Tue Aug 18, 2015 1:22 pm
Forum: Investing - Help with Personal Investments
Topic: My retirement number..is this realistic?
Replies: 18
Views: 2229

Re: My retirement number..is this realistic?

Hi rcmx: your goal is a bit aggressive in my opinion, but it is possible with a strong equity market. Instead, in your shoes I would focus on the things I can control: a) Keep your Asset Allocation appropriate for you. Do not ramp up risk in order to (hopefully) achieve some arbitrary goal. b) Stay ...
by Wagnerjb
Tue Aug 18, 2015 9:23 am
Forum: Investing - Theory, News & General
Topic: Should you own foreign stocks?
Replies: 67
Views: 4351

Re: Should you own foreign stocks?

Today, I went back 21 years to see if his advice was valid. These are the results of investing $10,000 in Vanguard Total U.S. Stock Market Index Fund (VTSMX) on 7/14/1994 compared with the same investment at the same time in Vanguard Total International Index Fund (VGTSX): VTSMX is now worth $70,75...
by Wagnerjb
Mon Aug 17, 2015 3:20 pm
Forum: Investing - Help with Personal Investments
Topic: Using a dividend ETF for retirement income
Replies: 5
Views: 466

Re: Using a dividend ETF for retirement income

Bogle_Feet wrote:That's crazy. Do like everyone else does and invest in a bond index fund or two and a stock index fund or two. Not enough dividend yield? Simple sell off a portion of your principal.


I agree with this advice.
by Wagnerjb
Mon Aug 17, 2015 9:59 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio of a 51 year old - can you help?
Replies: 11
Views: 2177

Re: Portfolio of a 51 year old - can you help?

I think your target of 5 more years is probably realistic, although you will need some appreciation in your portfolio to get there. Let's start from the back and work forward. You want to spend $170k in retirement. Since most of your investments are in after-tax accounts, I imagine you will need to ...
by Wagnerjb
Sun Aug 16, 2015 8:54 am
Forum: Investing - Theory, News & General
Topic: Build Your Own Robo-Advisor
Replies: 21
Views: 2418

Re: Build Your Own Robo-Advisor

So this started out as a thought experiment: would it be possible to replicate 80% of the functionality of a robo-advisor at 5% of the cost using a spreadsheet and a brokerage account? How about 95% of the functionality at 0% of the cost? A simple Excel spreadsheet will help you monitor your Asset ...
by Wagnerjb
Fri Aug 14, 2015 9:55 am
Forum: Investing - Theory, News & General
Topic: commodities and long-short strategies
Replies: 7
Views: 774

Re: commodities and long-short strategies

Larry - this fund that you recommend (QSPIX) has an expense ratio of 1.50%, is likely only offered through an advisor, and smells an awful lot like a hedge fund with its long-short strategy. I think I will pass.

Best wishes.
by Wagnerjb
Thu Aug 13, 2015 8:37 pm
Forum: Investing - Theory, News & General
Topic: GE Capital Bank now Goldman Sachs Bank?
Replies: 5
Views: 830

Re: GE Capital Bank now Goldman Sachs Bank?

What if I currently have $250k in Goldman Sachs brokered CDs and also have $250k in GE brokered CDs? I assume you are somehow grandfathered in to having the full protection for the entire $500k. Can anybody verify? Looks like it to me: https://www.fdic.gov/consumers/consumer/news/cnsum10/having_dep...
by Wagnerjb
Thu Aug 13, 2015 8:27 pm
Forum: Investing - Theory, News & General
Topic: GE Capital Bank now Goldman Sachs Bank?
Replies: 5
Views: 830

Re: GE Capital Bank now Goldman Sachs Bank?

From the article: "The amount includes about $8 billion in online deposit accounts and $8 billion in brokered certificates of deposit." Does anybody know what happens to the $250k of FDIC protection in this case? What if I currently have $250k in Goldman Sachs brokered CDs and also have $2...
by Wagnerjb
Thu Aug 13, 2015 10:46 am
Forum: Investing - Theory, News & General
Topic: a look at impact of financialization of commodities
Replies: 20
Views: 1880

Re: a look at impact of financialization of commodities

grayfox I read these explanations of why CCFs should have high expected return just like stocks, I've never read a paper that predicts high expected returns from commodities. larry Huh? Here is the summary of the Gorton paper (highlighting is mine): We construct an equally-weighted index of commodi...

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