Search found 6329 matches

by Wagnerjb
Wed Sep 02, 2015 3:01 pm
Forum: Investing - Theory, News & General
Topic: Does anyone buy individual bonds and CDs?
Replies: 32
Views: 2654

Re: Does anyone buy individual bonds and CDs?

What I meant was that a person managing small sums of wealth can take the time to manage small lots. To an investor with millions or billions of dollars it may not be worth the time to buy $100 CDs in tiny lots of 4. They are looking for a minimum amount per transaction to justify the effort. Are y...
by Wagnerjb
Wed Sep 02, 2015 2:50 pm
Forum: Investing - Help with Personal Investments
Topic: Puzzled? New Issue vs Secondary yield difference?
Replies: 3
Views: 202

Re: Puzzled? New Issue vs Secondary yield difference?

I just went through this process a month ago when investing a pension Lump Sum payout. What you see is a slam dunk over new issue CDs. But......you must be willing to hold to maturity. If you might need to sell the CD - for rebalancing or for emergency needs - then I don't think the brokered CDs are...
by Wagnerjb
Wed Sep 02, 2015 2:39 pm
Forum: Investing - Theory, News & General
Topic: 401(k) IRA Rollover Promotion Money
Replies: 16
Views: 701

Re: 401(k) IRA Rollover Promotion Money

Paul, it is the receiving IRA custodian who is giving the "rollover bonus", apparently by calling it "interest". Who'd a thunk? I think the IRS will eventually challenge these incentives. It isn't accrued interest on the new IRA since it was opened--it's an incentive, a gift. jo...
by Wagnerjb
Wed Sep 02, 2015 2:34 pm
Forum: Investing - Theory, News & General
Topic: "Investors are fleeing once-popular emerging markets."
Replies: 50
Views: 5016

Re: "Investors are fleeing once-popular emerging markets."

trueblueky wrote:Appears some have overweighted EM and are now bailing. Correct assessment?


Probably true.

In my case, I am deliberately overweight EM and am rebalancing by adding to EM.
by Wagnerjb
Wed Sep 02, 2015 2:30 pm
Forum: Investing - Theory, News & General
Topic: S&P500 vs Dow30
Replies: 26
Views: 1443

Re: S&P500 vs Dow30

Taking the dividends each year and investing those in the broader index resulted in a final total accumulation gain that was higher than the indexes total gain. In practice instead of deploying dividends into a index fund you might simply just add another stock to the set - accumulate all dividends...
by Wagnerjb
Wed Sep 02, 2015 9:35 am
Forum: Investing - Theory, News & General
Topic: Does anyone buy individual bonds and CDs?
Replies: 32
Views: 2654

Re: Does anyone buy individual bonds and CDs?

Still there but only 4 left! So $388. I did my search (and post) at 6PM, well after the markets were closed. So that offer won't change until the market opens the next morning. By the way, the $4,000 offer is for a face value of $4,000 and thus the price paid will be $3880 (not $388). Incredible, t...
by Wagnerjb
Wed Sep 02, 2015 9:08 am
Forum: Investing - Theory, News & General
Topic: S&P500 vs Dow30
Replies: 26
Views: 1443

Re: S&P500 vs Dow30

Think about if you had $1,000,000 to invest and you split that in half and bought $500,000 / 30 = $16,667 invested in each of the 30 Dow stocks using one half Clive - we already know how this movie ends. Look at Bridgeway Blue Chip 35 index fund - it is a low-cost passive fund that owns 35 of the v...
by Wagnerjb
Wed Sep 02, 2015 8:38 am
Forum: Investing - Theory, News & General
Topic: Does anyone buy individual bonds and CDs?
Replies: 32
Views: 2654

Re: Does anyone buy individual bonds and CDs?

I am done building my portfolio of CDs, but I bet a dollar this particular bargain is gone by 9AM tomorrow morning. :D


I just checked this morning - at 8:30 - and this bargain is snatched up and gone :D
by Wagnerjb
Tue Sep 01, 2015 6:56 pm
Forum: Investing - Theory, News & General
Topic: "Theory versus reality: Gliding into retirement."
Replies: 2
Views: 562

Re: "Theory versus reality: Gliding into retirement."

While I suspect the findings are valid for people's entire portfolios, note that the study was done solely on IRA balances.
by Wagnerjb
Tue Sep 01, 2015 6:09 pm
Forum: Investing - Theory, News & General
Topic: Does anyone buy individual bonds and CDs?
Replies: 32
Views: 2654

Re: Does anyone buy individual bonds and CDs?

If you are patient, you can even find bargains that aren't at a premium. I just went to the Fidelity site again and looked for 7 year brokered CDs. The first one ranked is for October 2022, non callable. It is selling for $97 and is yielding 3.023%! But the offer is only for $4,000. Nonetheless, I w...
by Wagnerjb
Tue Sep 01, 2015 5:53 pm
Forum: Investing - Theory, News & General
Topic: 401(k) IRA Rollover Promotion Money
Replies: 16
Views: 701

Re: 401(k) IRA Rollover Promotion Money

I got a similar bonus recently ($2500) and it went into the IRA account itself. For that reason, the "bonus" is taxable, since I will have to pay taxes on the money when I withdraw it. Nonetheless, the bonus was well worth it....for a transfer that I would have done anyway. I checked into ...
by Wagnerjb
Tue Sep 01, 2015 11:10 am
Forum: Investing - Theory, News & General
Topic: Does anyone buy individual bonds and CDs?
Replies: 32
Views: 2654

Re: Does anyone buy individual bonds and CDs?

Guys.....let's put the risk of bank failure - and the impact on you - in perspective. Let's use the 8 year brokered CD that I just highlighted for Kevin M. They are yielding over 3% which is arguably 0.50% higher than original issue CDs. Let's be conservative and use a benefit of 0.25% annually. Ass...
by Wagnerjb
Tue Sep 01, 2015 10:29 am
Forum: Investing - Theory, News & General
Topic: "Investors are fleeing once-popular emerging markets."
Replies: 50
Views: 5016

Re: "Investors are fleeing once-popular emerging markets."

Last week, I added to Emerging Markets as part of a rebalancing move. I really don't care what the naive investors are doing, but it is usually a good sign when they are leaving a sector....that means the better returns are probably not far off.

Best wishes.
by Wagnerjb
Mon Aug 31, 2015 1:16 pm
Forum: Investing - Theory, News & General
Topic: Does anyone buy individual bonds and CDs?
Replies: 32
Views: 2654

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: 14
Views: 848

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: 1159

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: 32
Views: 2654

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: 1159

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: 1159

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: 32
Views: 2654

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: 854

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: 1159

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: 58
Views: 4190

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: 569

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: 1148

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: 1148

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: 2493

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: 569

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: 1148

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: 603

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: 446

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: 5313

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: 1345

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: 1345

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: 1345

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: 1345

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: 1404

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: 1404

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: 8669

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: 1041

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: 15583

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: 1041

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: 588

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: 15583

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: 15583

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: 15583

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 ...

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