Search found 5627 matches

Return to advanced search

Re: Why is VIPSX (TIPS) active?

I do own LTPZ. The disadvantage is the 0.20% E/R. Although if Vanguard were to have an equivalent fund it would almost certainly be lower cost. The advantage is that small investments, reinvestment of dividends, and rebalancing is easier.
by baw703916
Mon Oct 20, 2014 11:59 pm
 
Forum: Investing - Theory, News & General
Topic: Why is VIPSX (TIPS) active?
Replies: 17
Views: 1239

Re: Why is VIPSX (TIPS) active?

As was stated a few hundred years ago, "Much ado about nothing". :D Not quite. Because it's an 'active" fund, the admiral threshold it $50k. If it were an index fund it would be $10K, and there could be an ETF share class. I'm sure there are people to whom this would make a difference.
by baw703916
Mon Oct 20, 2014 10:47 pm
 
Forum: Investing - Theory, News & General
Topic: Why is VIPSX (TIPS) active?
Replies: 17
Views: 1239

Re: Why is VIPSX (TIPS) active?

There are now though. The major effect of it being an "active" fund seems to be a higher Admiral threshold.
by baw703916
Mon Oct 20, 2014 9:56 pm
 
Forum: Investing - Theory, News & General
Topic: Why is VIPSX (TIPS) active?
Replies: 17
Views: 1239

Why is VIPSX (TIPS) active?

This hasn't made much sense to me. Why is this? (note the short term TIPS fund is passive).
by baw703916
Mon Oct 20, 2014 9:47 pm
 
Forum: Investing - Theory, News & General
Topic: Why is VIPSX (TIPS) active?
Replies: 17
Views: 1239

Re: inefficiencies in small lot, near-term muni bonds prices

To disagree slightly with Larry, if maturity is in 3-6 months and you have locked in a positive yield to maturity, why would you ever need to harvest losses (other than a possible default)? One thing though is that if you are buying bonds for less than par value, you may end up with a taxable capita...
by baw703916
Sun Oct 19, 2014 4:23 pm
 
Forum: Investing - Theory, News & General
Topic: inefficiencies in small lot, near-term muni bonds prices?
Replies: 8
Views: 748

Re: Recent statistics of college majors

Thank you. Thanks Victoria for the link, very interesting first chart, unless you are a Doctor Michio Kaku you are not going to make a lot of money in the field of physics (at least at the start of the career). Physics wasn't the lowest-paying major in the early stage of one's career, it was the lo...
by baw703916
Tue Oct 14, 2014 10:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Recent statistics of college majors
Replies: 35
Views: 2656

Re: Headed for a 300+ point loss today?

Steep drops in the market are an opportunity to buy. Could we have some numbers on that? How do we know what's steep enough, and how far a drop is far enough? Or is this merely a way of saying "I know, because I have sound financial intuition, but you , well, you either have it or you don't?&q...
by baw703916
Fri Oct 10, 2014 2:47 pm
 
Forum: Investing - Theory, News & General
Topic: Headed for a 300+ point loss today?
Replies: 430
Views: 28451

Re: Headed for a 300+ point loss today?

VictoriaF wrote:
oldzey wrote:Plan B - all gold? :D


Plan B stands for bills, i.e., dollar bills, Treasury bills, and Bernstein Bill.

Victoria


I have a credit card bill. I'd be happy to send you that! ;)
by baw703916
Fri Oct 10, 2014 12:48 pm
 
Forum: Investing - Theory, News & General
Topic: Headed for a 300+ point loss today?
Replies: 430
Views: 28451

Re: Sixth anniversary of worst week ever for stocks

Also, in Oct. 2008 I rather enjoyed watching CNBC, especially when they set up one entire weekend on the street across from Lehman. It was kind of entertaining in an odd sort of way, like a really campy reality show.
by baw703916
Fri Oct 10, 2014 11:40 am
 
Forum: Investing - Help with Personal Investments
Topic: Sixth anniversary of worst week ever for stocks
Replies: 51
Views: 4116

Re: Sixth anniversary of worst week ever for stocks

Six years ago today (10/10/2008), Lbill started a thread titled Will the last diehard please shut up? saying that the signal for the market to recover would be that the denizens of this board needed to start panic selling. I posted the following I'm terribly sorry, I went ahead and bought some stock...
by baw703916
Fri Oct 10, 2014 12:31 am
 
Forum: Investing - Help with Personal Investments
Topic: Sixth anniversary of worst week ever for stocks
Replies: 51
Views: 4116

Re: Headed for a 300+ point loss today?

I'm having difficulty understanding why a market drop is good because it provides an opportunity to buy more stock at lower prices. It's like saying I don't mind if a large chunk of my nestegg just got chopped off so I could add a little piece back at a lower price. I guess by that logic, the more ...
by baw703916
Thu Oct 09, 2014 11:52 pm
 
Forum: Investing - Theory, News & General
Topic: Headed for a 300+ point loss today?
Replies: 430
Views: 28451

Re: Headed for a 300+ point loss today?

I'm glad I own an S&P index fund, because it only dropped 40 points, unlike 331 for the Dow. :)

Also, my next retirement contribution hits tonight. :)
by baw703916
Thu Oct 09, 2014 11:13 pm
 
Forum: Investing - Theory, News & General
Topic: Headed for a 300+ point loss today?
Replies: 430
Views: 28451

Re: Are you a "maximizer" or a "satisficer"?

bertilak wrote:
baw703916 wrote:Most of my posts assume no behavioral errors.

I wonder if that in itself is a behavioral error!

It hasn't had any effect on my returns :)
by baw703916
Tue Oct 07, 2014 1:31 pm
 
Forum: Personal Consumer Issues
Topic: Are you a "maximizer" or a "satisficer"?
Replies: 52
Views: 3045

Re: Are you a "maximizer" or a "satisficer"?

I am more closely aligned with being a "maximizer" (as I suspect most Bogelheads are) Jack Bogle wrote a book Enough . "Enough" is the antithesis of "maximizing." The essence of the Bogleheads-style investing is being satisfied with the market returns (minus miniscule ...
by baw703916
Tue Oct 07, 2014 11:06 am
 
Forum: Personal Consumer Issues
Topic: Are you a "maximizer" or a "satisficer"?
Replies: 52
Views: 3045

Re: today's WSJ page 1...interesting

If everyone who subscribes to the WSJ uses that method, will they all outperform the market?

Discuss.
by baw703916
Tue Oct 07, 2014 10:59 am
 
Forum: Investing - Theory, News & General
Topic: today's WSJ page 1...interesting
Replies: 22
Views: 3281

Re: Bizarre bug: Medicare.gov displays crazy costs in Euros.

If there's someone willing to exchange 100 Euros for one dollar, I'd like to find them! :D
by baw703916
Sun Oct 05, 2014 2:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Bizarre bug: Medicare.gov displays crazy costs in Euros...
Replies: 1
Views: 346

Re: Bonds Beware

TSM dropped more last month (Sept. 2014) than bonds did in their "worst ever" rout in 1994. Just wanted to point that out. So if you think bonds are way too risky, you certainly shouldn't own equities either. Oh, and gold is doing pretty awful these days, too. I guess you could put it all ...
by baw703916
Sun Oct 05, 2014 1:51 pm
 
Forum: Investing - Theory, News & General
Topic: Bonds Beware
Replies: 34
Views: 4429

Re: What will you do during the next crash?

Ged wrote:Image


The "Rollercoaster" bottle on the right seems particularly a propos. ;)
by baw703916
Sun Oct 05, 2014 1:22 pm
 
Forum: Investing - Theory, News & General
Topic: What will you do during the next crash?
Replies: 63
Views: 4007

Re: U.S. stocks in freefall

I don't think "leading" in this context means "having better returns". It could mean "being the first asset class to indicate the coming bear market". The conventional wisdom is that in the early stages of a bull market, small caps outperform large caps, while in the la...
by baw703916
Sat Oct 04, 2014 1:50 pm
 
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 941
Views: 156939

Re: Municipal Bond

--The person who is receiving 4+% yield probably bought those bonds several years ago in most cases. Right now, interest rates on tax-free bonds aren't generally close to 4% unless the bonds have very long maturity or the issuer's credit isn't very good. --If you buy individual bonds, there are a co...
by baw703916
Sat Oct 04, 2014 1:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Municipal Bond
Replies: 13
Views: 1093

Re: What will you do during the next crash?

In the last crash I was able to make some additional investments because I inherited some money.

I hope that doesn't happen the next time, because it would mean that someone I know had died.
by baw703916
Fri Oct 03, 2014 11:07 pm
 
Forum: Investing - Theory, News & General
Topic: What will you do during the next crash?
Replies: 63
Views: 4007

Re: Do you deviate from the BH philosophy?

I think simplicity is overrated. If a simple portfolio works, fine. But I don't see it as being an end in itself. No Boglehead principal is "an end in itself". Even "keep costs low" and "minimize taxes" are not ends in themselves, the end or goal of both is higher net ...
by baw703916
Thu Oct 02, 2014 2:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do you deviate from the BH philosophy?
Replies: 64
Views: 3828

Re: Do you deviate from the BH philosophy?

I think simplicity is overrated. If a simple portfolio works, fine. But I don't see it as being an end in itself.
by baw703916
Wed Oct 01, 2014 8:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do you deviate from the BH philosophy?
Replies: 64
Views: 3828

Re: Dave Ramsey says asset allocation does not work

How does one not have an asset allocation?

Even if you decide to put 100% in growth mutual funds (I assume that means large cap growth stocks?), that's still an AA.
by baw703916
Wed Oct 01, 2014 7:55 pm
 
Forum: Investing - Theory, News & General
Topic: Dave Ramsey says asset allocation does not work
Replies: 87
Views: 7161

Re: CNN: 5 investing secrets of the wealthy.

under-valued, unsexy stocks + broad diversification = a value index fund
by baw703916
Tue Sep 30, 2014 7:11 pm
 
Forum: Investing - Theory, News & General
Topic: CNN: 5 investing secrets of the wealthy.
Replies: 20
Views: 3656

Re: Does market cap weighted indexing logically follow from

The proof that the market portfolio is efficient doesn't apply very well to bonds. If TIPS are 6% of the U.S. Bond market, does this mean that the efficient frontier portfolio must contain 6% TIPS in its bond allocation? With bonds, you will either receive payment as agreed upon, or the issuer will ...
by baw703916
Mon Sep 29, 2014 7:26 pm
 
Forum: Investing - Theory, News & General
Topic: Does market cap weighted indexing logically follow from EMH?
Replies: 17
Views: 1013

Re: VXUS and Muni Bonds tax efficiency

am wrote:Is total world stock from Vanguard more efficient that total us or international?


It should be quite similar.
by baw703916
Sun Sep 28, 2014 4:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: VXUS and Muni Bonds tax efficiency
Replies: 9
Views: 745

Re: Does market cap weighted indexing logically follow from

If there's a single "market" then assuming the market is efficient at allocating capital, the market portfolio (the total market cap of all investible assets) is on the efficient frontier. For an individual investor, holding everything according to their market cap weights replicates the m...
by baw703916
Sun Sep 28, 2014 4:18 pm
 
Forum: Investing - Theory, News & General
Topic: Does market cap weighted indexing logically follow from EMH?
Replies: 17
Views: 1013

Re: VXUS and Muni Bonds tax efficiency

Municipal bonds have no tax costs per se (assuming the fund isn't distributing capital gains and that you either aren't subject to AMT or you own a fund whose bonds aren't subject to AMT). The "tax cost" is that tax-exempt bonds generally pay lower interest rates than similar taxable bonds...
by baw703916
Sun Sep 28, 2014 1:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: VXUS and Muni Bonds tax efficiency
Replies: 9
Views: 745

Re: Is VXF tax efficient?

According to Morningstar, VXF has over 30% of potential capital gains exposure. How does that affect a new purchase within a taxable account? This is not a serious concern for an ETF or mutual fund with an ETF class. An active fund with a larger potential capital gains exposure would be expected to...
by baw703916
Sat Sep 27, 2014 10:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is VXF tax efficient?
Replies: 11
Views: 736

Re: EmergDoc has Surpassed 10,000 posts!

Congratulations!

Apart from the number, the information content, both here an in WCI, is excellent. Thanks for sharing your knowledge and insights with us.
by baw703916
Sat Sep 27, 2014 11:22 am
 
Forum: Local Chapters and Bogleheads Community
Topic: EmergDoc has Surpassed 10,000 posts!
Replies: 32
Views: 3091

Re: How stocks perform in recessions

nisiprius wrote:In case I am being too straight-faced about the joke, :wink: just as with recessions it is a lot easier to recognize the down years in hindsight than in foresight.


But the inverted yield curve has predicted 10 out of the last 7 recessions, or something like that. :)
by baw703916
Mon Sep 22, 2014 7:47 pm
 
Forum: Investing - Theory, News & General
Topic: How stocks perform in recessions
Replies: 13
Views: 1402

Re: how to prevent medical expense catastrophe?

The insurance companies could easily solve this problem by putting a clause in the preferred provider agreement stating that after pre-approval for a medical procedure, an in-network physician or hospital is not allowed to involve anyone outside of network unless there's an unforeseen medical neces...
by baw703916
Mon Sep 22, 2014 10:36 am
 
Forum: Personal Finance (Not Investing)
Topic: how to prevent medical expense catastrophe?
Replies: 174
Views: 7869

Re: how to prevent medical expense catastrophe?

The insurance companies could easily solve this problem by putting a clause in the preferred provider agreement stating that after pre-approval for a medical procedure, an in-network physician or hospital is not allowed to involve anyone outside of network unless there's an unforeseen medical necess...
by baw703916
Mon Sep 22, 2014 9:30 am
 
Forum: Personal Finance (Not Investing)
Topic: how to prevent medical expense catastrophe?
Replies: 174
Views: 7869

Re: Financial Psychology - Mind Over Money

VictoriaF wrote:Kahneman, Ariely, and other prominent BE researchers freely admit that the knowledge of cognitive biases has not protected them from making every mistake in the book.


Hopefully they at least ended up with plenty of marshmallows.
by baw703916
Tue Sep 16, 2014 5:39 pm
 
Forum: Investing - Theory, News & General
Topic: Financial Psychology - Mind Over Money
Replies: 78
Views: 4183

Re: Bond Fund Duration ?

The duration does depend on how much interest is paid. The duration of a zero coupon bond is quite a bit longer than that of a bond which pays interest before maturity.

The duration of a bond fund depends only on its holdings, not on whether an investor in the fund reinvests dividends.
by baw703916
Tue Sep 16, 2014 5:32 pm
 
Forum: Investing - Theory, News & General
Topic: Bond Fund Duration ?
Replies: 13
Views: 900

Re: Good hobby for a bright/obsessive 9 year old?

He sounds quite a bit life I was a that age. Some things that I enjoyed: -Astronomy. At the time there was a kit where you could grind your own mirror for a reflector telescope. Talk about something that involved a significant time commitment! Not sure if they still have those. -A microscope. Didn't...
by baw703916
Tue Sep 16, 2014 5:27 pm
 
Forum: Personal Consumer Issues
Topic: Good hobby for a bright/obsessive 9 year old?
Replies: 73
Views: 3215

Re: Financial Psychology - Mind Over Money

Don't make behavioral mistakes!
by baw703916
Tue Sep 16, 2014 4:24 pm
 
Forum: Investing - Theory, News & General
Topic: Financial Psychology - Mind Over Money
Replies: 78
Views: 4183

Re: What evidence would prove the Boglehead mentality wrong?

The concept of a rate of return makes no sense without exponential growth. It's not meaningful to discuss one investment style vs. another except in terms of the expected return, which implicitly assumes continued economic growth. It depends on what you mean by "the Boglehead mentality". D...
by baw703916
Tue Sep 16, 2014 12:24 pm
 
Forum: Investing - Theory, News & General
Topic: What evidence would prove the Boglehead mentality wrong?
Replies: 212
Views: 15520

Re: What evidence would prove the Boglehead mentality wrong?

The basic laws of mathematics would have to be proven incorrect? Is the assumption that exponential economic growth can continue forever valid? Especially if population stops growing exponentially? I'm not saying the assumption might not be valid, but I'm not 100% convinced we can just assume that ...
by baw703916
Tue Sep 16, 2014 12:07 pm
 
Forum: Investing - Theory, News & General
Topic: What evidence would prove the Boglehead mentality wrong?
Replies: 212
Views: 15520

Re: You may want to rethink the odds of ever needing LTCi

This is odds of ltc not ltci Well, more precisely, the odds of needing LTC for a length of time for which having LTCi would make the difference of not having to spend down all your assets and go on Medicaid. It only works if you don't have too little, but not too much, money, and end up needing LTC...
by baw703916
Mon Sep 15, 2014 8:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: You may want to rethink the odds of ever needing LTCi
Replies: 89
Views: 9179

Re: 100% Small and Value Tilting

This chart shows the YTD performance of each of the holdings of he SV ETF RZV. It has 147 stocks, and a handful of them have done really well, the others, not so much: This is a real world example of something Larry has pointed out on a few occasions: in SV, a disproportionate share of the total per...
by baw703916
Sun Sep 14, 2014 10:50 pm
 
Forum: Investing - Theory, News & General
Topic: 100% Small and Value Tilting
Replies: 72
Views: 4649

Re: You may want to rethink the odds of ever needing LTCi

You also need to consider the difference in long term care costs and what your normal retirement budget is since many(but not all) of your other expense will be reduced if you go into a nursing home. If you end up having to pay $70,000 a year for nursing home (or whatever it cost in your area) but ...
by baw703916
Sun Sep 14, 2014 1:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: You may want to rethink the odds of ever needing LTCi
Replies: 89
Views: 9179

Re: An Interesting Correlation

I've posted on EDV in other threads' I'll summarize my thoughts here. -The correlation coefficient between long Treasuries and equities is substantially negative over the last several years largely because of 2008 (when everybody was fleeing to the safety of bonds issued by the entity which prints t...
by baw703916
Sun Sep 14, 2014 12:50 pm
 
Forum: Investing - Theory, News & General
Topic: An Interesting Correlation
Replies: 22
Views: 2082

Re: Inherited tIRA-benefits to liquidating?

The key oversight here is very common: people forget that tax-deferred savings are tax-deferred. Hence the mythology about "capital gains being taxed at regular income tax rates". You pay the regular income tax rate today or you defer it to the withdrawal age. Either way, you pay regular ...
by baw703916
Sun Sep 14, 2014 11:16 am
 
Forum: Investing - Help with Personal Investments
Topic: Inherited tIRA-benefits to liquidating?
Replies: 14
Views: 898

Re: You may want to rethink the odds of ever needing LTCi

Nisi,

One difference is that with homeowner's insurance, you pretty much know what the maximum loss is (more or less the value of your house). With LTC, it's pretty much open ended, but the insurance doesn't actually cover the tail.
by baw703916
Sat Sep 13, 2014 9:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: You may want to rethink the odds of ever needing LTCi
Replies: 89
Views: 9179

Re: Reminder: estimated taxes due Monday

You're welcome, linenfort. Ybsybs, I have to pay state estimated taxes also. One thing to note is even though they are paid "quarterly" it really isn't. The dates are April 15, June 15, Sept. 15, and Jan. 15 of the following year. So intervals of three months, two months, three months, and...
by baw703916
Sat Sep 13, 2014 8:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Reminder: estimated taxes due Monday
Replies: 17
Views: 1195

Re: Inherited tIRA-benefits to liquidating?

Thanks, all, for your thoughts. baw703916, the pro-rata rule doesn't apply to non-spousal inherited IRAs, from what I can see; however, with a spousal inherited IRA, that's a really good point. Another reason for the superiority of the Roth inherited IRA! what I was thinking of was a situation wher...
by baw703916
Sat Sep 13, 2014 8:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Inherited tIRA-benefits to liquidating?
Replies: 14
Views: 898

Re: You may want to rethink the odds of ever needing LTCi

This is odds of ltc not ltci Well, more precisely, the odds of needing LTC for a length of time for which having LTCi would make the difference of not having to spend down all your assets and go on Medicaid. It only works if you don't have too little, but not too much, money, and end up needing LTC...
by baw703916
Sat Sep 13, 2014 7:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: You may want to rethink the odds of ever needing LTCi
Replies: 89
Views: 9179

Re: You may want to rethink the odds of ever needing LTCi

Also, LTCi doesn't really cover tail risk anyway.
by baw703916
Sat Sep 13, 2014 7:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: You may want to rethink the odds of ever needing LTCi
Replies: 89
Views: 9179
Next

Return to advanced search