Bogleheads.org

Although we have all our mutual funds at Vanguard and sleep well, at some portfolio size, and I think you are there, it would seem to make sense to put a sizable chunk of your portfolio into some of Fidelity's low cost index funds. It would cost you practically nothing and adds diversification. If ...

moneywise3 wrote:Is there a tutorial on this somewhere?

.. here is a real quick one:
http://www.moneychimp.com/articles/finworks/fmbondytm.htm

1) the interest rate paid by the fund doesn't change, 2) the interest rate paid by the fund doubles the day after your invest to 3.2%, and 3) the interest rate paid by the fund increases the day after your invest to 5%. So, do bond fund yields increase quickly to match interest rate increases, then...

$290.00 FV payment due, in conjunction with the final (104th) payment of $58. Final 104th Balloon payment = 290+58= $348 due at 104 weeks elapse to settle balance to zero. PV = $6000 i = 5%/52weeks = 0.096% weekly N = 104 weeks PMT= $58/week FV = 290.00 (HP21C financial calculator) FV = 290.00 (Exc...

Dan, The point being that the long-term investor is better off with a large increase in rates, as your numbers illustrate. All nominal bonds are subject to inflation risk. If one is more worried than most about inflation, investing in inflation protected securities seems the answer. Good work! Rich...

The Vanguard Total Bond Market fund (admiral) has a yield of 1.6%, average maturity of 7.2 years and average duration of 5.3 years. Pretend the duration is 5 years, as it makes the math easier. How much will you have after 5 years and after 10 years if you invest $10,000 today in this fund in your ...

Trading Costs are usually listed in the "Statements of Additional Information" or SAI. For example, you can find (if you dig) the SAI for Vanguard's S&P 500 Index fund here: http://edgar.sec.gov/cgi-bin/browse-edgar?company=&match=&CIK=VFINX&owner=exclude&Find=Find+Comp...

What is a Guaranteed Rate Really Worth?, Moshe Milevsky (article overviews process of calculating VA guaranteed return) The best part about this article: So they throw out fancy numbers like 7% guarenteed... but in reality you might only get $122,940 worth of annuity payments, which means your $100...

According to the experts ... probably not. In fact, at 4%, it may have a negative return:

What is a Guaranteed Rate Really Worth?, Moshe Milevsky (article overviews process of calculating VA guaranteed return)

My 75 year old dad lives on social security and a small draw from his stocks and cash. His total net worth is about $100K now and I thought it might make sense to buy an annuity with those funds. AARP seems to be a good place to start and they offer an annuity that would guarantee him about $500 pe...

My wife has an old 401K kicking around from a prior employer. The account is with Fidelity. The specific fund is Fidelity Freedom 2010 (FFFCX). Kind of a high ER, though, for a target retirement fund. One of these days we'll roll it into her Vanguard TIRA. She called Fidelity a couple of years back...

Annuity ? ... prefer putting money in Bank ? ... TD Bank ? Wayne Gretzky is a Stanley Cup champion, entrepreneur, founder of the Wayne Gretzky Foundation for less fortunate youth, and brand ambassador for TD Bank . While I'd be an even bigger fan if he said 3-fund portfolio, his financial moves wer...

Annuity ? ... prefer putting money in Bank ? ... TD Bank ?

Wayne Gretzky is a Stanley Cup champion, entrepreneur, founder of the Wayne Gretzky Foundation for less fortunate youth, and brand ambassador for TD Bank.

FYI:

Many banks will charge an "incoming wire fee" of $20 or $25 or so.
... many do not charge for incoming ACHs.

Welcome back. Yes, your margin account rate was good for your small portfolio size. It is not as effective as the effective rate achieved using equity index futures: http://indexarb.com/yieldCurve.html Your "arbitrage" idea regarding investing excess margin cash (~90% futures) in BND is no...

Don't forget that Investor A had to earn $1.54M gross to achieve $1M after tax, using your assumed overall tax rate. ... snip Investor B also had to earn $1.54M gross to buy a $1M VA ? I don't understand your point ? ... unless, of course, we are buying both assets inside an tax deferred account, t...

OK. Hypothetical VA tax illustration: Investor A: Buys $1M worth SP500 index fund Investor B: Buys a $1M VA and puts the entire balance in identical SP500 index fund Magical assumption that the exorbitant extra fees associated with VA are zero . then 7 years later: Investor A: holds $2M of SP500 ind...

Can you please explain rebalancing? Rebalancing forces investors to "sell high" and "buy low" systematically over their lifetime. Preventing increased risk and generating increased portfolio returns over your lifetime (if you didn't rebalance). http://www.bogleheads.org/wiki/Reb...

Can you please explain rebalancing? Rebalancing forces investors to "sell high" and "buy low" systematically over their lifetime. Preventing increased risk and generating increased portfolio returns over your lifetime (if you didn't rebalance). http://www.bogleheads.org/wiki/Reb...

29palms wrote:How are your stocks doing so far? Am I doing all right for the year at 15.37 percent?

More importantly, have you rebalanced back to your target AA ?

The disclosed management fee of a stable value fund is readily available. For example, that fee for the popular stable value fund described earlier is 90 basis points. But other more opaque fees are difficult to ascertain. For example, wrap contract fees, administrative expenses, and subadvisory fe...

... snip ... The interest rate risk is horrific. Help. What am i missing ? I must be missing something. Why do you care what the interest rate risk is, since you're not taking that risk directly? Obviously the provider has to account for probable cash flows, etc., and some do have restrictions on w...

I'm a big fan of the one at MyMegaCorp. It's virtually all synthetic GICs, meaning that the plan maintains ownership of the underlying securities. They have a group of investment managers for the various component GICs. There's also a separate pool of insurers. The current rate for 4th quarter is 2...

Since the consensus seems to be "what have you got to lose", how I am not sure how much to put on the profile. Does one basically replicate one's resume? I cut my resume off at about 10 years though I have more experience than that. What do you do about unemployment gaps? Comments? You ca...

I know there is a thread below about social media, but I am specifically interested in LinkedIn as a job search device. Have people had "luck" with it? Has anyone with a LinkedIn account been contacted and have an interview and even a job resulting from it? Is it worth my time to get an a...

Remember,

Some bought into the S&P500 on March 24, 2000 .... 12 1/2 years ago at:

1,553.11

... it is difficult to keep perspective with recency bias.

Anyone know it or something that would work? Or could anyone tell me if I want to comfortably retire with $60,000 per year in today's money. How much would I need in 40 years, or how much would that be worth? Using the average inflation rate of 3.46% The value of the money after x years of inflatio...

These articles from Seth Hettena may be helpful on Ray Lucia's and his non-traded REITS:

http://www.sethhettena.com/2012/ray-luc ... -response/

A Professional’s View of Ray Lucia’s Nontraded REITs

It appears rates declined in anticipation of the previous three Fed announcements (QE1, QE2, and OpTwist) ... then rose or stayed flat after the news. (chart last updated 9/7 so rates do not reflect this past weeks increases) http://i48.tinypic.com/10zy8g4.gif http://advisorperspectives.com/dshort/u...

Lazy Portfolios appear to be at a all time nominal high, but if 5 year inflation is 10%, then we still have a ways to go: http://www.marketwatch.com/lazyportfolio http://i46.tinypic.com/pvx46.png Aren't the numbers in the chart average annual returns, whereas the 10% inflation number is total 5 yea...

Lazy Portfolios appear to be at a all time nominal high, but if 5 year inflation is 10%, then we still have a ways to go:

http://www.marketwatch.com/lazyportfolio

+1 As a Registered Investment Advisor, isn't Ray Lucia subject oversight by FINRA as well as by the SEC? He has a series 7, according to the SEC document, so he is a broker/dealer as well as an registered investment adviser (RIA) and has dual oversight by FINRA for the broker/dealer and the SEC for ...

Browser, yes, SEC was responsible for investigating potential fraud. However, SEC did not "regulate" Madoff. http://en.wikipedia.org/wiki/Hedge_fund#US_regulation Madoff's hedge fund was exempt from regulation. Madoff did not sell to "retail investors". Ray Lucia is directly regu...

The surprise isn't that the Buckets approach is complete hooey - a 10-year old would be able to see that (although apparently not a large number of presumably knowledgeable "investors"). The surprise is that the SEC is involved. Were't these the same guys who completely missed the Madoff ...

The SEC charges are severe. It occurred to me that many may not understand why. Ray Lucia's firm is a "Registered Investment Adviser" (RIA) and Ray Lucia is a representative of his firm (RIAR). RIA and RIARs are subject to an additional Security law that most "financial advisers"...

IMHO, it would be speculating. The flow of foreign capital into Scandinavian real estate markets due to the European debt crisis should be (hopefully) transitory. The Varied Cycles of European Housing Markets, Moody's Analytics, Feb 2012 From the article: http://i46.tinypic.com/paxdj.png http://i47....

"Buckets of Money" has been mentioned, suggested, and discussed on this forum in the past. Some have even read Lucia's book. ... it appears to be a complete fraud:.... I don't recall participating in a Buckets of Money discussion (could be wrong) because I haven't read the book, nor am I ...

letsgobobby wrote:Was it fraud or was it incompetence or some of both? I agree with previous poster, his sin is so small compared to many of the psychopaths in our corporate world and even in the investment world.

Lies imply Fraud.

Lets be clear about the SEC claims (IMO): Ray Lucia clearly lied and cheated. His "Buckets of Money" is a failing strategy. Investors following this strategy may have been, or may be seriously damaged. The SEC backtested his claimed " Buckets of Money " strategy and found out it ...

"Buckets of Money" has been mentioned, suggested, and discussed on this forum in the past. Some have even read Lucia's book. ... it appears to be a complete fraud: SEC Press Release A few of the Bogleheads threads: Bogleheads vs Lucia three Buckets Lucia's Bucket #2 Ray Lucia Ben Stein pro...

Returns on SPIA have never been lower.

jdouge wrote:...snip... The Vanguard CFP also pointed out that some of the bonds may be worth holding (rather than liquidating) even at Vanguard, ...snip...

The only reason not to SELL these bonds is if they can't get the right price on liquidation.

... What am I missing? Where is ML hiding their greedy hand/pocket/siphon? Or where I should look (must admit to glazed eyes running over those account and transaction statements)? Any informed guesses or hard facts appreciated. Generally, the bond "buys" and "sells" typically h...

I think i found the answer to my question

http://biz.yahoo.com/p/fam/ing_retirement_funds.html

ING Index Solution 2025 Portfolio - Service 2 Class IXXVX

Aren't all the fees an employee pays in a 401k ... embedded into the price changes on the fund NAVs ?
Don't they list fund NAVs in the 401k ?

In other words, the funds choices used in the 401k must be a separate share class for a 401k with much higher expense ratios ?

Do Not Pay Off your mortgage now. ... snip ... Paying off your mortgage is equivalent to buying a 2-year bond at 3.35% (2.34% after tax) ... snip ... Unlike buying a 2 year bond, which can be sold immediately in an emergency ... ... paying off your mortgage is " irreversible ". Once done,...

Do Not Pay Off your mortgage now. ... snip ... Paying off your mortgage is equivalent to buying a 2-year bond at 3.35% (2.34% after tax) ... snip ... Unlike buying a 2 year bond, which can be sold immediately in an emergency ... ... paying off your mortgage is " irreversible ". Once done,...

Langkawi and grabiner,

thank you. dan

"annual ER / 252" That is not correct. Weekends aren't free. Help me understand: ... at 4:15pm on Friday, a mutual fund company posts the day's NAV by first subtracting the annualized management fee pro-rata (i say 1/252th, you say 1/365th) for that Friday's management services. What happ...

+1 One can figure that the e.r. is paid daily as in "annual e.r. / 365". This may not be exackalackaly true, but it is close enough. ... well ;) , to be more precise, the annualized expense ratio is debited against the funds NAV at the end of each trading day of year before posting the day...