Search found 6061 matches

Go to advanced search

by baw703916
Thu May 21, 2015 10:17 am
Forum: Investing - Theory, News & General
Topic: Not your father's Total Bond Market Fund anymore
Replies: 60
Views: 6548

Re: Not your father's Total Bond Market Fund anymore

Taylor,

Is there a reason you left out the funds that outperformed TBM in 2008? :)
by baw703916
Wed May 20, 2015 11:44 pm
Forum: Investing - Help with Personal Investments
Topic: Changing jobs and retirement plan contribuions
Replies: 1
Views: 173

Changing jobs and retirement plan contribuions

Currently I'm a Federal employee, however I'm planning to change jobs later this year. I have set things up so that I am on track to max out my TSP contribution for 2015 by the time I leave my present job. However, I've just discovered that my new job's 401(k) does offer a slary match. So I'm thinki...
by baw703916
Sun May 17, 2015 10:54 am
Forum: Investing - Help with Personal Investments
Topic: VA Municipal Bonds
Replies: 10
Views: 876

Re: VA Municipal Bonds

More recently, here's a comparison between BHV and PRVAX over the last three years. On this scale VWLUX is almost indistinguishable from PRVAX. So what happened in mid 2013? Interest rates on munis in general went up and prices went down, but the biggest effect on the price of BHV was that in May 20...
by baw703916
Sat May 16, 2015 9:29 pm
Forum: Investing - Help with Personal Investments
Topic: VA Municipal Bonds
Replies: 10
Views: 876

Re: VA Municipal Bonds

The best VA TE Bond fund is PRVAX (T. Rowe Price) which has an ER of 0.48, compared to .20 the Vanguard investor shares and .12 for Admiral. The top VA state tax rate is 5.75% These numbers mean that the higher ER is made up for by the state tax savings is the yield is at least 5%. Until about 2007 ...
by baw703916
Sat May 16, 2015 8:48 pm
Forum: Personal Finance (Not Investing)
Topic: Contingent Offer
Replies: 13
Views: 1555

Re: Contingent Offer

Unless the real estate market is really slow in your area, a 90 day contingency would be a show-stopper for me, regardless of how I felt about the real estate agent.
by baw703916
Thu May 14, 2015 5:37 pm
Forum: Investing - Help with Personal Investments
Topic: Two purchases in one day. One tax lot or two?
Replies: 17
Views: 1380

Re: Two purchases in one day. One tax lot or two?

If you were to buy a stock or ETF twice in one day, it's very unlikely the two purchase prices would be the same, so they would be separate lots. For a mutual fund, however, both purchases will happen at the NAV at close for that day, so I don't see why they would have to be separate lots. Your cust...
by baw703916
Thu May 14, 2015 5:28 pm
Forum: Investing - Theory, News & General
Topic: I'm so glad I bought bonds in taxable!
Replies: 13
Views: 3519

Re: I'm so glad I bought bonds in taxable!

Also, EmergDoc's blog is geared to physicians, who are in a very high tax bracket while working and *may* be in a lower one upon retirement. So in that case a pre-tax retirement account is likely to be even more favorable.
by baw703916
Thu May 14, 2015 12:08 am
Forum: Investing - Theory, News & General
Topic: I'm so glad I bought bonds in taxable!
Replies: 13
Views: 3519

Re: I'm so glad I bought bonds in taxable!

If you had just stocks in your taxable account, would the account have gone up enough more in value to make up the difference or more ? There are a few other considerations, actually (aren't there always?). I've already made a Roth IRA contribution for this year, and if I had realized too many capi...
by baw703916
Wed May 13, 2015 9:45 pm
Forum: Investing - Theory, News & General
Topic: Very misleading graph on stock and bonds price change.
Replies: 10
Views: 1231

Re: Very misleading graph on stock and bonds price change.

Maybe they can also graph the real return of the Aggregate bond index, neglecting dividends!
by baw703916
Wed May 13, 2015 9:29 pm
Forum: Investing - Theory, News & General
Topic: I'm so glad I bought bonds in taxable!
Replies: 13
Views: 3519

I'm so glad I bought bonds in taxable!

In 2007 I got interested in tax-exempt bonds, when they suddenly acquired the unusual (at the time) characteristic of yielding more than Treasuries. I ignored the canonical Boglehead advice on asset location and put some of my bonds in taxable. I'm happy with how my tax-exempt bonds have done since ...
by baw703916
Wed May 13, 2015 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: Closing on house in less then 30 days- bad idea?
Replies: 24
Views: 2033

Re: Closing on house in less then 30 days- bad idea?

An update of my data point. In the final round of haggling on my impending purchase, the seller was willing to accept a $1k reduction in sales price in exchange for closing a week earlier. I'd say it all depends on the individuals, apparently this seller wants to get things wrapped up ASAP, and I'm ...
by baw703916
Tue May 12, 2015 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: Closing on house in less then 30 days- bad idea?
Replies: 24
Views: 2033

Re: Closing on house in less then 30 days- bad idea?

I am in the middle of buying a condo in Seattle. Yes, it's a very tight market, a couple places I was interested in were gone before I even got a chance to look at them. I think that for some sellers a quick closing may be advantageous, particularly if they need to sell and want to get their money o...
by baw703916
Mon May 11, 2015 11:44 pm
Forum: Investing - Theory, News & General
Topic: "Why Investors Should Stop Trying to Beat The Market"
Replies: 16
Views: 1919

Re: "Why Investors Should Stop Trying to Beat The Market"

JoMoney, The excerpt you quote is what I always wonder about. It certainly implies that it's not random, that many investors have a knack for doing exactly the wrong thing at the wrong time. Now maybe that wording isn't really borne out by the data, and things are like you say: people take too much ...
by baw703916
Mon May 11, 2015 10:44 pm
Forum: Investing - Theory, News & General
Topic: "Why Investors Should Stop Trying to Beat The Market"
Replies: 16
Views: 1919

Re: "Why Investors Should Stop Trying to Beat The Market"

CABob wrote:
baw703916 wrote:How can all the children be below average?

The children are average before expenses.
:P


That was my first thought, but 8% underperfomance?
by baw703916
Mon May 11, 2015 9:47 pm
Forum: Investing - Theory, News & General
Topic: "Why Investors Should Stop Trying to Beat The Market"
Replies: 16
Views: 1919

Re: "Why Investors Should Stop Trying to Beat The Market"

How can all the children be below average?
by baw703916
Mon May 11, 2015 9:43 pm
Forum: Personal Finance (Not Investing)
Topic: Jack Bogle hates ETFs?
Replies: 22
Views: 2327

Re: Jack Bogle hates ETFs?

So don't trade them too often, and only buy ones that have a meaningful place in your portfolio.

Problem solved.
by baw703916
Sun May 10, 2015 10:23 pm
Forum: Personal Finance (Not Investing)
Topic: Frugality Reinforced - The Millionaire Next Door
Replies: 84
Views: 12540

Re: Frugality Reinforced - The Millionaire Next Door

So what books should people who are too frugal read?
by baw703916
Sun May 10, 2015 11:46 am
Forum: Investing - Theory, News & General
Topic: Vanguard investors: be thankful for ETFs!*
Replies: 24
Views: 3521

Re: Vanguard investors: be thankful for ETFs!*

However, don't those formulas only consider Federal taxes? Someone in California who has a 10% state tax rate on all distributions and is paying AMT so the state taxes aren't federally deductible might be quite a bit worse off.
by baw703916
Sun May 10, 2015 10:50 am
Forum: Investing - Theory, News & General
Topic: Vanguard investors: be thankful for ETFs!*
Replies: 24
Views: 3521

Re: Vanguard investors: be thankful for ETFs!*

tfb, A few points in reply to your comments. -While VXF may have only 10% of the total assets of the Extended Market Index Fund, what's relevant in determining the effect in avoiding capital gain distributions is the number of redemption events of ETF creation units by authorized participants. The t...
by baw703916
Sun May 10, 2015 10:22 am
Forum: Investing - Theory, News & General
Topic: Swedroe: Credit Risk Not Worth It
Replies: 43
Views: 5251

Re: Swedroe: Credit Risk Not Worth It

Jim: Thanks for the reminder. This is what happened in the bond and stock markets when I was a boy. As you say, "the 1930s could happen again": YEAR ..... 5-YR. Treas .... Large Cap Stocks 1929........+3.8%..............-31.2% 1930........+6.7%..............-24.9% 1931........-2.3%..........
by baw703916
Sun May 10, 2015 10:06 am
Forum: Investing - Theory, News & General
Topic: "Should We Teach Teenagers to Trade?"
Replies: 30
Views: 2131

Re: "Should We Teach Teenagers to Trade?"

What this game misses is that the real way to win is to sell advice to other people promising to help them win the game by using "proprietary dynamic strategies identifying undervalued companies poised for a breakout" or something to that effect.
by baw703916
Sat May 09, 2015 6:11 pm
Forum: Investing - Theory, News & General
Topic: Vanguard investors: be thankful for ETFs!*
Replies: 24
Views: 3521

Re: Vanguard investors: be thankful for ETFs!*

Actually you can buy fractional shares through dividend reinvestments. I haven't done this at Vanguard, but have in another account.
by baw703916
Sat May 09, 2015 4:37 pm
Forum: Investing - Theory, News & General
Topic: "Should We Teach Teenagers to Trade?"
Replies: 30
Views: 2131

Re: "Should We Teach Teenagers to Trade?"

I learned about the stock market in a school thing in 1973. The lesson I learned is that stocks can go down a lot! I actually thought for many years that a 50% drop was a typical occurrence (as in it should be expected every few years). What I didn't realize until much later is that it's possible to...
by baw703916
Sat May 09, 2015 2:33 pm
Forum: Investing - Theory, News & General
Topic: Vanguard investors: be thankful for ETFs!*
Replies: 24
Views: 3521

Re: Vanguard investors: be thankful for ETFs!*

Meanwhile, ETF shareholders are benefitting from this deal too -- Vanguard can afford to launch small ETFs with low fees because they are sharing the expenses with a well-established mutual fund (Schwab "can launch" too, but I don't quite know how they "afford" them except as lo...
by baw703916
Sat May 09, 2015 2:16 pm
Forum: Investing - Theory, News & General
Topic: Vanguard investors: be thankful for ETFs!*
Replies: 24
Views: 3521

Re: Vanguard investors: be thankful for ETFs!*

ogd wrote:P.S: here's another thing to be grateful for: that Vanguard innovations take this form that is clearly beneficial to shareholders, rather than yet another flavor of schmundamental indexing.


+1
by baw703916
Sat May 09, 2015 1:52 pm
Forum: Investing - Theory, News & General
Topic: Vanguard investors: be thankful for ETFs!*
Replies: 24
Views: 3521

Re: Vanguard investors: be thankful for ETFs!*

The only example I can think of where a Vanguard equity index fund with an ETF share class has distributed capital gains is the FTSE small cap fund in its first two years of existence. That wasn't a case of the mutual fund shares dragging down tax efficiency (the ETF shares comprise the vast majorit...
by baw703916
Sat May 09, 2015 12:58 pm
Forum: Investing - Theory, News & General
Topic: Vanguard investors: be thankful for ETFs!*
Replies: 24
Views: 3521

Vanguard investors: be thankful for ETFs!*

* ...even if you only own mutual fund shares and wouldn't dream of owning an ETF yourself. In another thread I noticed a statement that caught me by surprise, and so I decided to look into things a little further. I think this topic deserves its own thread. ETFs have an advantage over traditional &q...
by baw703916
Sat May 09, 2015 10:54 am
Forum: Investing - Theory, News & General
Topic: Swedroe: Credit Risk Not Worth It
Replies: 43
Views: 5251

Re: Swedroe: Credit Risk Not Worth It

I don't personally own corporate bonds to any significant extent. Still, I keep wondering about the following conundrum: If credit risk isn't worth it, that's equivalent to saying that the market is not giving it an adequate risk premium. So why can't an efficient market price credit risk correctly?
by baw703916
Sat May 09, 2015 10:45 am
Forum: Investing - Theory, News & General
Topic: To ETF or Not to ETF? That is the question.
Replies: 50
Views: 5627

Re: To ETF or Not to ETF? That is the question.

In my recent ETF trades, a limit order with a price inside the bid-ask spread has executed roughly 50% of the time (albeit usually not immediately).
by baw703916
Fri May 08, 2015 7:40 pm
Forum: Investing - Theory, News & General
Topic: Should You Time the Markets When Experts Can’t?
Replies: 21
Views: 2222

Re: Should You Time the Markets When Experts Can’t?

One aspect that I think is being missed in this thread. The job of mutual fund managers isn't really to outperform the market. It's to attract investors, who can be charged fees. :) Pretend for a moment that Buffett's adage "be fearful when others are greedy and greedy when others are fearful&q...
by baw703916
Fri May 08, 2015 6:13 pm
Forum: Investing - Theory, News & General
Topic: New Vanguard AMT-free National Municipal Bond Fund
Replies: 95
Views: 10295

Re: New Vanguard AMT-free National Municipal Bond Fund

If you can point me to where it says "this fund will not invest in bonds bearing interest subject to AMT" or something to that effect I would like to see it, because I cannot find it. I did find this thread from the M* board dating to early 2007 that references Vanguard's announcement htt...
by baw703916
Fri May 08, 2015 7:42 am
Forum: Investing - Theory, News & General
Topic: New Vanguard AMT-free National Municipal Bond Fund
Replies: 95
Views: 10295

Re: New Vanguard AMT-free National Municipal Bond Fund

However, the Prospectus for VG Int Term Tax Exempt states something like "you may be subject to AMT" even though I know the fund has not been subject to any AMT for quite some time. (or ever?) Vanguard made all of their TE funds except high yield and the money markets AMT free about 8-10 ...
by baw703916
Thu May 07, 2015 4:56 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvest VWIUX -> MUB?
Replies: 12
Views: 786

Re: Tax Loss Harvest VWIUX -> MUB?

Regarding the relative riskiness, you can look at performance in 2008 or 2013 to get a sense. The relatively low durations of the long-term TE funds probably understate their riskiness somewhat. Year Fund CapRtn IncRtn TotRtn ---- ----- ------ ------ ------ 2008 VWIUX -4.15% 4.08% -0.07% 2008 VWLUX...
by baw703916
Thu May 07, 2015 10:44 am
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvest VWIUX -> MUB?
Replies: 12
Views: 786

Re: Tax Loss Harvest VWIUX -> MUB?

Have you bought any shares in the past six months (with reinvested dividends, for example)? If you sell those shares at a loss, your deductible loss will be reduced by the amount of the dividends paid on those shares. If you made a large purchase in December, waiting to sell until June might improv...
by baw703916
Wed May 06, 2015 8:09 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvest VWIUX -> MUB?
Replies: 12
Views: 786

Re: Tax Loss Harvest VWIUX -> MUB?

Ah good point I suppose i could mix a short and a long term bond to get a home-made intermediate mix. But it wouldn't be tax exempt right? I am debating VWALX too (Vanguard High-Yield Tax-Exempt Fund Admiral Shares ER 0.12) also but not sure I want that added risk. I heard this fund can almost act ...
by baw703916
Wed May 06, 2015 6:05 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvest VWIUX -> MUB?
Replies: 12
Views: 786

Re: Tax Loss Harvest VWIUX -> MUB?

MUB has a duration more similar to VWLUX than VWIUX (i.e. it has a longer duration and presumably more sensitivity to interest rates. So you may want to think whether a longer duration is something you feel comfortable with. I'm not sure I can think of a better alternative though. The new Vanguard T...
by baw703916
Tue May 05, 2015 12:16 am
Forum: Investing - Theory, News & General
Topic: Gross: stockbug alert, future investment returns will be miniscule
Replies: 67
Views: 5547

Re: Gross: stockbug alert, future investment returns will be miniscule

It's interesting that whatever the situation, the "action item" in any of Gross's columns is usually to invest in bond funds. :)
by baw703916
Sun May 03, 2015 2:34 pm
Forum: Investing - Theory, News & General
Topic: Do Active Bond Funds Beat Index Bond Funds?
Replies: 27
Views: 2066

Re: Do Active Bond Funds Beat Index Bond Funds?

Would it perhaps be more accurate to say that certain "active" bond funds, especially the low-cost Vanguard ones, are essentially crypto-indexes? For example, the Vanguard Tax-Free "active" funds are less expensive than the iShares or SPDR Muni ETFs. Would it be accurate to say ...
by baw703916
Sun May 03, 2015 12:31 pm
Forum: Investing - Theory, News & General
Topic: Bill Bernstein Rational Expectations
Replies: 16
Views: 3311

Re: Bill Bernstein Rational Expectations

In short, i guess my question is are there any articles/books that do a good job of obtaining a fair value for every asset class ( US stocks, international, small, small value, reits, etc.) soI could decide to adjust accordingly? I would go by the historical averages over as long a time period as y...
by baw703916
Sat May 02, 2015 10:05 pm
Forum: Investing - Help with Personal Investments
Topic: Selling covered vs. noncovered Vanguard MF shares?
Replies: 3
Views: 231

Re: Selling covered vs. noncovered Vanguard MF shares?

If you don't specify which shares you sell, shares are sold FIFO, at whatever basis they have (average cost if you use it, otherwise the purchase price of the share). If you bought 1000 shares at $9 two years ago, and 1000 shares at $11 six months ago, and you sell 1000 shares today at $11 using av...
by baw703916
Sat May 02, 2015 7:45 pm
Forum: Forum Issues and Administration
Topic: Forum is now back ONLINE!
Replies: 45
Views: 1537

Re: Forum is now back ONLINE!

Thanks to LG et al. for all the work on the site!
by baw703916
Sat May 02, 2015 1:52 pm
Forum: Investing - Theory, News & General
Topic: Do Active Bond Funds Beat Index Bond Funds?
Replies: 27
Views: 2066

Re: Do Active Bond Funds Beat Index Bond Funds?

Yet one of the bond funds he calls out by name, PIMCO Diversified Inc D, PDVDX, has an expense ratio of 1.15%. Many actively managed stock funds (and not just Vanguard's!) have lower expense ratios than his personally favored bond fund. And of course the same expense ratio is worse for a bond fund ...
by baw703916
Sat May 02, 2015 1:19 pm
Forum: Investing - Help with Personal Investments
Topic: Selling covered vs. noncovered Vanguard MF shares?
Replies: 3
Views: 231

Selling covered vs. noncovered Vanguard MF shares?

I have a couple of Vanguard tax-exempt bond funds and wish to sell some shares. Both of the funds contain a mixture of covered and non-covered shares. The recent history of interest rates causes the non-covered shares to have a significant capital gain, while the non-covered shares have gains that a...
by baw703916
Sat May 02, 2015 12:11 pm
Forum: Investing - Theory, News & General
Topic: Do Active Bond Funds Beat Index Bond Funds?
Replies: 27
Views: 2066

Re: Do Active Bond Funds Beat Index Bond Funds?

Only 12 out of 35 Vanguard' Bond Funds are index funds.

I think I know the reason...but I thought it should be pointed out in the context of this thread. :)
by baw703916
Fri May 01, 2015 10:15 pm
Forum: Personal Finance (Not Investing)
Topic: House Next Door for Sale...Kind Of: Ethics Issue?
Replies: 38
Views: 5288

Re: House Next Door for Sale...Kind Of: Ethics Issue?

If this tax thing is accurate you could report him to the IRS. I'm sure they wouldn't take kindly to someone claiming to be selling the house so that they could secure a tax advantage if they weren't really making a bone fide attempt to do so.
by baw703916
Fri May 01, 2015 10:03 pm
Forum: Personal Finance (Not Investing)
Topic: Supreme Court Decision on Obamacare & Relocating
Replies: 8
Views: 1007

Re: Supreme Court Decision on Obamacare & Relocating

klneutral, Would you qualify for subsidies under ACA? If not, then the upcoming decision will not directly impact you. I say "directly" because the concern has been expressed that without the subsidies there could be an insurance death spiral. If that were to actually happen, then potentia...
by baw703916
Fri May 01, 2015 6:08 pm
Forum: Personal Finance (Not Investing)
Topic: Residents of states w/o income tax, do you itemize?
Replies: 34
Views: 2065

Re: Residents of states w/o income tax, do you itemize?

Washington, and itemize. Charitable giving, mortgage interest, property tax, and sales tax take us well past the standard deduction. Ditto. Baw, was it completely clear that you can use the IRS tables and avoid any detailed calculations and still claim the sales tax? Yes, that's good to know. I had...
by baw703916
Thu Apr 30, 2015 10:30 pm
Forum: Investing - Theory, News & General
Topic: Holding long-term bond to increase rebalancing bouns?
Replies: 11
Views: 741

Re: Holding long-term bond to increase rebalancing bouns?

Also, my understanding is that the negative correlation of stocks and long-term Treasuries is more a feature of recent decades than previous decades. The correlation of annual returns for S&P500 and 10-year Treasury is close to 0 for 1928-2014, and you can find years in previous decades when st...
by baw703916
Thu Apr 30, 2015 10:24 pm
Forum: Personal Finance (Not Investing)
Topic: Residents of states w/o income tax, do you itemize?
Replies: 34
Views: 2065

Re: Residents of states w/o income tax, do you itemize?

It is not like this is a choice. You must do the following: - compute standard deduction, - compute itemized deduction, - whichever is better, you take that. I'm not sure what your point is. Knowing whether you are likely to itemize deductions in a particular year matters. For instance, if you have...

Go to advanced search