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What is the difference? Without know the ETF I cannot say for sure, but IVV at 0.07% expense ratio versus VOO at 0.05% means to me the difference is so close it doesn't matter much. If you're staying at Fidelity buy the iShares as it will take many years to break even on the $8 commission. As for V...

brokered cds don't cut it. the whole point of the cd strategy is to get the cheap and easy early withdrawal penalty so you can reinvest at higher rates (with your full principal) when rates go up. Brokerage cds are like bonds and will lose value when rates go up. i rolled money to penfed and have 2...

Note that the best nationally available 5 year bank CD is offered by Everbank at 1.76%.* Brokered CDs maturing in 2018 are yielding as much as 2.2%. Be careful here; the only way you get yields that high on brokered CDs is by buying a CD on the secondary market priced above par. The amount above pa...

brokered cds don't cut it. the whole point of the cd strategy is to get the cheap and easy early withdrawal penalty so you can reinvest at higher rates (with your full principal) when rates go up. Brokerage cds are like bonds and will lose value when rates go up. i rolled money to penfed and have 2 ...

a couple of comments. we used to have a fidelity plan but moved to vanguard. there were never any additional fees, the company picked all those up. that being said, we only had about 4 index funds. The rest were acively managed with higher expense ratios (still under 1% though). That's how fidelity ...

Hi, I just met with my CPA to discuss any tax issues with a windfall I received. It is roughly $358,000 with a cost basis of $301,000 so we will have an additional approximately $58,000 in income on our tax statements. I however have a $358,000 windfall to deal with in actual money. Anyway I planne...

i can confirm the basic theory based on my two datapoints.
our "new" amana died after 7 years. our old kenmore (which we put in the basement when we bought the amana) has been going for like 15 years.
recently we got a samsung to replace the amana. so far so good.

Bloomberg is showing the 30 year TIP trading at a real yield of 1.19% on the secondary market this morning

Our 401k plan has a self-directed brokerage option. There are hundreds of fund families available with no transaction fee (load depends on specific fund), but a few dozen fund families do have a $11 transaction fee. I expected to see Fidelity and Vanguard in the same group, but no. Fidelity funds a...

Ah, but it's not about winning. It's about having fun and showing just how often the law of averages has random stock selections end up under the index. Or, about having buyer's remorse for an entire year. If I had only swapped my long and short positions... Hang on, my long pick just tanked: Exide...

personally i'd rather see that as the contest benchmark rather than Vanguard Total Stock market (VTSMX) probably because I am beating VMNFX but not VTSMX! :) cheers, Ah, but it's not about winning. It's about having fun and showing just how often the law of averages has random stock selections end ...

This credit union, as noted by another post, is big into medallion cab lending. This credit union, and several others in this lending, filed suit to block the City adding more, but they lost. http://www.cutimes.com/2013/06/10/nyc-cab-law-upheld-after-cu-suit-claimed-unfair-co Does what they do with...

By the way, in case you missed it, the Vanguard Market Neutral fund (VMNFX) is having a good year. It is up 5% for the year beating both its benchmark and competitors. http://www.morningstar.com/invest/funds/59377-vmnfx-vanguard-market-neutral-inv.html personally i'd rather see that as the contest b...

I followed a recommendation posted by I think GROK which suggested a barbell approach. Doing research I learned that a combination of short term and long term bonds with the same duration do not perform ( pre-tax ) the same as an intermediate term bond. I did this to save taxes by over weighting LT...

doug91 wrote:I'm a more-than-3-funder, and decided not to pursue international bonds based at least partly on Grok's Tip #7:

viewtopic.php?t=69087

glad you found it helpful.

Care to do a chart at various real yield levels to help folks figure out the cost for purposes of participating in the auction? Sure, here are the figures per $1,000 face value at yields from 0.7% to 1.5% in 0.1% point intervals: 0.7% 0.8% 0.9% 1.0% 1.1% 1.2% 1.3% 1.4% 1.5% Yield ------- ------- --...

While those are steep penalties, dropping to the rate in affect at the time is probably not so bad. I would only cancel the CD is rates rose dramatically. In which case, their rates might be substantially higher to remain competitive. Still, for a 5 year they are between .65% and 1% better than mos...

I think the early withdrawal penalties are pretty onerous.
http://www.depositaccounts.com/blog/201 ... -only.html

Its 180 days plus your rate for the entire term drops to whatever the savings rate is

Now, I wish I could compute what I would need to pay for my desired face value of TIPs bonds given my estimate of the auction price. ⋅ Compute the price for the yield you anticipate using a bond calculator like ficalc.com . I get a price of 85.697% using the following assumptions: ⋅&...

Thanks grok87 - I think you are 100% right, but I don't read his comments that he thinks dividend paying stocks are bonds, he says With that in mind, it would behoove retirees to pay more attention to dividend-paying stocks in a retirement account. So what I think he is saying, that if you need an ...

Well here's what i think: 1) Social security and pensions should be thought of as bonds 2) dividend paying stocks are stocks not bonds. not now, not ever. 3) it is probably not that bad to overweight short term high quality corporates. but investing in long term corporates is a mugs game http://www....

Not meaning to be pedantic, but I would probably not say that the Vanguard funds track their respective indices. Both the Vanguard Int Treasury fund and the Vanguard Inflation protected securities fund are actively managed- i.e. are not index funds. So while they have benchmark indices that they co...

Hi, You are correct, they were transposed. I fixed it: Fidelity Funds can be compared by the fund's composition and its tracking benchmark. In this case, - Vanguard Inflation-Protected Securities Fund Investor Shares (VIPSX) and Spartan® Inflation-Protected Bond Index Fund - Fidelity Advantage Clas...

Year-to-date munis are doing better than Treasuries, so I'm not clear what period you're looking at. As for today, it was a "flight to quality" day which means buy treasuries. Looking at the bigger picture, muni bonds have a higher equity correlation than all other types of bonds (includi...

My last purchase of a 30-year TIPS was in in June 2011, with a yield of 1.774%. At the time, I thought it seemed like a so-so investment. Worked out well. I am a buy-and-hold investor in TIPS and I am 59 years old. If I buy a 30-year TIPS today I will be 89 when it matures. I 'might' be alive then,...

And I just got an email response from Berkshire Hathaway, in response to to an email I sent this weekend to berkshire@berkshirehathaway.com, saying: "We are not intending to provide an official press release or statement." Okey-dokey. I guess. Very bad news for US retirees. It may be a ha...

Yes, I value LTPZ for the liquidity and considering buying it if the yield curve steepens even more. I looked up an LTPZ quote on TD Ameritrade and it seems to indicate a 0.8% yield. Thank you. that's a good source. here's the link https://research.tdameritrade.com/grid/public/etfs/profile/profile....

Doc, I'm afraid we're wandering off grok 's original topic. Valid point. Back on topic: One of the main reasons to invest in TIPS is to capture attractive long term yields without incurring any inflation risk. I don't consider Grok's 1.25% at thirty years to be very attractive. The only reason to d...

yukon50 wrote:Is there a way to find the current yield on LTPZ (Pimco Long-Term TIPS fund)? Does anyone own this?

I looked on Morningstar and pimco. Looks like they only tell you the nominal yield not the real.

The yield of the Feb 2043 TIPS has certainly risen significantly recently. But rates on other TIPS maturities have risen about as much. For example here are the yields of four TIPS on 4/5/2013 (a recent low point) and nine weeks later on 6/7/2013: ----------- Yield ---------- Duration Extra Yield M...

I think the key point is that this fund has more interest rate risk than other intermediate bond funds. So what does your analysis tell you about a fund like the Vanguard TIPS fund VIPSX of intermediate TIPS? Well the real duration of the fund is about 8.5 and the convexity is about 0.94. And TIps ...

Retired at age 73 and 20 % in vanguard gnma. Have I waited to long to get out. Lee I think the key point is that this fund has more interest rate risk than other intermediate bond funds. For example during May 5 year treasury yields rose by 37 bps = 0.37% (from 0.68% to 1.05%). Based on its duratio...

Anyone ever heard of Equity Concepts based out of Richmond VA? I was taken on a nice golf outting by one of their reps (I'm the cynical type, I figure everyone who is currently invested with them just paid for my 250$+ golf outing) and given the soft sell. They offer a bunch of stuff that is usuall...

This looks like a good article: The pros and cons of CD-type annuities . She mentions plenty of cons. The higher rate doesn't come for free; there is quite a different pattern of risks and restrictions than with a bank CD. good article. i stopped reading as soon as they mentioned there was no FDIC ...

It looks like the announcement will be published on Thursday, June 13. Within the announcement there will be an estimated real interest rate for the offering and it will be interesting to see what Treasury uses for that number. I last bought when the real number was 2.125%. I was considering adding...

I think it might make sense to hold off and see if this is part of a trend and where it is going. Of course, we are all talking about market timing. That is anathema to many here, who would respond by periodically re-balancing their TIPS allocation, no matter what. I guess I could be called guilty ...

I agree that the auction could interesting. The 30 tips yields have increased by about 60 basis points in the last two months and 25 in the last two weeks. This has cost holders of the more recent 30 year tips holders about twelve percent over two months. The question to ask yourself is if it looks...

LadyGeek wrote:Tis but a scratch. I'll wait for the 2nd quarter results.

(I'm ignoring this as market noise: Krispy Kreme Skyrockets)

Well said!

1.25 is better than its been, but is it worth buying? I consider the natural 30 year TIPS range 1-3%., with the rare extremes under 1% or over 3%. I buy over 2%. I think it depends. Personally i want some long term tips to match my retirement income needs. So I'm willing to accept a 1% ish rate (gi...

At the moment, the Feb 15 2043 is yielding 0.957%. Why would this issue yield another 30bp? Here's how I think it COULD happen: 1) Interest rates drift up another 15 bps over the next couple of weeks. With the treasury market this volatile, that's quite possible. 2) The auction tails badly, by 15 b...

At the moment, the Feb 15 2043 is yielding 0.957%. Why would this issue yield another 30bp? Here's how I think it COULD happen: 1) Interest rates drift up another 15 bps over the next couple of weeks. With the treasury market this volatile, that's quite possible. 2) The auction tails badly, by 15 b...

Just a heads up to everyone that the next 30 year TIPs auction is on June 20th. If you've been following the TIPs market lately you know that, along with regular treasuries, yields have been spiking higher. I think this auction could be interesting and that there is a decent chance real yields might...

The First Quarter results are in... I've got a firm hold on 4th from the bottom. Bogleheads 2013 Hedge Fund Contest Someone please remind me to never short junk food - KKD (Krispy Kreme Doughnuts). http://libra-investments.com/hf/bh.html LadyGeek, Hmm...it looks like your hold on 4th from the botto...

I have done most of these. Index funds are a larger and larger share of my equities. A Total Market Index fund is my largest holding. I am not at half. The individual stocks I own are diversified across industry groups and I rarely trade. See 9 below. I keep my investment expenses low. I have owned...

Curious: did you try backtesting your strategy? Also, I see a very interesting exchange between grok87 and Ged regarding PE10 starting here . thanks. i guess one thing to consider is the example of Japan. We used to think Japan was an outlier that their "economic stuff" could never happen...

Japan's culture and in particular savings rate is quite different from ours. I have some diversification there but it isn't large. Holding that regardless of their PE/10 doesn't scare me. However I do know one fact about the US - the only two times PE/10 was well above 30 we had a significant loss ...

I would never buy a cd where the right to withdraw early at reasonable terms was not guaranteed Tell me if I am wrong, but my understanding is that even if early withdrawal is guaranteed when you buy the CD, the bank can change that later. This should not be legal, but I think it is. see my post ab...

in general i am more trusting of credit unions than banks on this issue. my understanding is that banks/credit unions need to reserve the right to deny early withdrawal requests. i.e. if they are silent on the issue, but mention the penalty then the early withdrawal request must be allowed. but i'm...

Vanguard introduced a long term corporate bond ETF in late 2009 and the returns have been very good, averaging 12% annual return since inception Does this ETF follow the Long Term Investment Grade Fund? I've been in the fund for about a decade now and I don't plan to change. Perhaps Intermediate Te...

Grok, How much information about the next 10-20 years worth of returns in LT Gov't vs. Corps do you think is contained in the history you looked at over the prior 40 years? Do you have any sense on if or why the market has mispriced corporate bonds in the past and why or if you think that mispricin...