Search found 1743 matches

Return to advanced search

Re: Dave Ramsey still defending 12% and still angry at "nerd

I think he could get a lot more love around here if he would just say that "Any good smallcap value mutual fund will return 12% per year". :twisted: In all seriousness, watching someone go on a big rant claiming that if an investment starts out with value of $1000, drops to $500 the next y...
by stlutz
Thu Jul 31, 2014 9:46 pm
 
Forum: Investing - Theory, News & General
Topic: Dave Ramsey still defending 12% and still angry at "nerds"
Replies: 39
Views: 3549

Re: Fidelity and Select Ishares ETFs in Fidelity Roth

Do you have an existing account at Fidelity, or are you planing to start brand new with $200/month? That influences what the available options would be.
by stlutz
Thu Jul 31, 2014 9:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fidelity and Select Ishares ETFs in Fidelity Roth
Replies: 5
Views: 294

Re: Which bond ETFs do you have?

Link? There is sometimes a disagreement between how the market is valuing a particular portfolio of bonds at any given second vs. how those who calculate a mutual fund's NAV at the end of day think the value should be. With less liquid securities that often don't trade every day (e.g. most muni bon...
by stlutz
Thu Jul 31, 2014 12:09 am
 
Forum: Investing - Help with Personal Investments
Topic: Which bond ETFs do you have?
Replies: 12
Views: 974

Re: 401k Advice

60/40 between the Blackrock index fund and the GNMA bond fund would be the lowest cost option and not an unreasonable allocation.
by stlutz
Wed Jul 30, 2014 11:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401k Advice
Replies: 12
Views: 553

Re: Fidelity Charitable Fund Questions

I trust that a copy and paste from their document is okay: The administrative fee of 0.60% is charged to the investment pool on a daily basis and affects the net asset value of the Giving Account pool holdings. Giving Accounts for which the 0.60% administrative fee is less than $100* for a given fis...
by stlutz
Wed Jul 30, 2014 11:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fidelity Charitable Fund Questions
Replies: 18
Views: 701

Re: MOM faltering? [Momentum]

Larry-- My intent was not to be antagonistic. As you know from other threads, I think it's great that one can now invest in a momentum ETF for less than 20 basis points (which for me at least is the max I'll pay for anything nowadays). Also, momentum backtests are good ones because there are fewer d...
by stlutz
Wed Jul 30, 2014 11:48 pm
 
Forum: Investing - Theory, News & General
Topic: MOM faltering? [Momentum]
Replies: 43
Views: 2484

Re: Should retirement investors own small/value stocks at al

A few notes: --For a retiree who holds, say, 30% in stocks, whether 5 or 8% of the portfolio is in SV stocks won't matter that much. --As you focus on smaller and smaller parts of the market, tail risks go up, not down. The odds of having a real bad outcome are simply larger when you are focusing on...
by stlutz
Wed Jul 30, 2014 10:11 pm
 
Forum: Investing - Theory, News & General
Topic: Should retirement investors own small/value stocks at all?
Replies: 35
Views: 2472

Re: Muni fund premium?

Munis were down more than treasuries in 2013, so you could say that they were "oversold" at the start of the year. The problem with reversion to the mean strategies is that you never know what the mean will be ahead of time. With bonds especially, it's better just to do the risk vs. potent...
by stlutz
Wed Jul 30, 2014 9:58 pm
 
Forum: Investing - Theory, News & General
Topic: Muni fund premium?
Replies: 4
Views: 567

Re: MOM faltering? [Momentum]

I think it is fair to ask advocates of various tilts at what point you would give up on the strategy. If momentum underperformed for the next 20 years, should I give up then? Or do we have to have a full 212 years of underperformance before we can say that? What is the difference between throwing th...
by stlutz
Wed Jul 30, 2014 9:55 pm
 
Forum: Investing - Theory, News & General
Topic: MOM faltering? [Momentum]
Replies: 43
Views: 2484

Re: Expected Future Yield Curve

We discussed in another thread last year that estimating the return of a "bullet" strategy as outlined here is really same as estimating the return on a rolling bond ladder. If you are rolling, say, a 10 year ladder, then your expected return in determined by the yield of the bonds when yo...
by stlutz
Wed Jul 30, 2014 9:44 pm
 
Forum: Investing - Theory, News & General
Topic: Expected Future Yield Curve
Replies: 20
Views: 1027

Re: Anyone Switched to Vanguard Account Upgrade?

I wish Vanguard would just sell off VBS and just focus on providing the best mutual fund experience possible (which they don't). If somebody wants ETFs, those can be bought from any brokerage at a low or sometimes no cost.

Note: I prefer ETFs, at least for taxable accounts.
by stlutz
Tue Jul 29, 2014 10:43 pm
 
Forum: Investing - Theory, News & General
Topic: Anyone Switched to Vanguard Account Upgrade?
Replies: 20
Views: 2663

Re: Market not interested in inflation protection?

It really comes down to the type of debt that the Treasury chooses to issue. They issue more nominal than inflation protected debt. Insurance type products depend upon the availability of long-term bonds to make them work. If the government stopped issuing nominal debt and started selling only TIPS,...
by stlutz
Tue Jul 29, 2014 10:29 pm
 
Forum: Investing - Theory, News & General
Topic: Market not interested in inflation protection?
Replies: 32
Views: 2024

Re: Tell me why I shouldn't buy individual muni bonds

First off, for retail investors the best deals in individual muni bonds are in odd lots ($5000 - $20,000 increments) in the secondary market. In transactions of this size, sometimes the buyer loses; often times it's the seller. The spread is immaterial to you as a buyer--all that matters is whether ...
by stlutz
Tue Jul 29, 2014 10:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tell me why I shouldn't buy individual muni bonds
Replies: 31
Views: 1883

Re: Feasibility of tax arbitrage?

Of course, the ER of TSM is .05% and the ER of growth index is .09%. So, you're down to a .035% difference. :happy Issues like these will make a far bigger difference over that time span: --Will the mid/small caps add to or detract from performance of TSM? --How and when will you reblalance between ...
by stlutz
Mon Jul 28, 2014 10:55 pm
 
Forum: Investing - Theory, News & General
Topic: Feasibility of tax arbitrage?
Replies: 10
Views: 848

Re: Feasibility of tax arbitrage?

The value and growth index funds you mention are large cap funds only. So, you would no longer own the total market if you split that way. But, let's look at the potential savings. Suppose you are in the 28% bracket. So, the tax savings are 28-15 = 13%. VTSAX yields 1.82% and VIGAX yields 1.22% (I u...
by stlutz
Mon Jul 28, 2014 8:57 pm
 
Forum: Investing - Theory, News & General
Topic: Feasibility of tax arbitrage?
Replies: 10
Views: 848

Re: 401K Target Retirement Fund or Not

For starting a Roth IRA would you also get the same Vanguard TR Fund? Or purchase each mutual fund on your own to save on Expense Ratio and eventually reach Admiral Shares. Only problem with that is each Vanguard investor shares has a $3k minimum for Roth (Total Stock Market, Total International, a...
by stlutz
Mon Jul 28, 2014 8:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K Target Retirement Fund or Not
Replies: 19
Views: 1022

Re: Dollar-Cost Averaging at Scottrade

If you want to DCA into VG mutual funds, the best place to do that is at Vanguard.

If you want to DCA into ETFs, then do that at a broker where you can buy the ones you want at no commission.
by stlutz
Mon Jul 28, 2014 1:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Dollar-Cost Averaging at Scottrade
Replies: 11
Views: 510

Re: Vanguard sued for charging too little

It's probably worth noting that for the past few years Vanguard has not has the lowest costs in the ETF market--Schwab has. The assumption around here has been that Schwab is not offering ETFs "at cost" but at "below cost" (although I question that assumption).
by stlutz
Sun Jul 27, 2014 11:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard sued for charging too little
Replies: 114
Views: 11507

Re: Vanguard sued for charging too little

Okay, so since I did pretty well with my understanding on my first post, let me try to go further and the more knowledgeable folks can let us know if I've gone awry. My understanding of transfer pricing cases is that the issue is generally with the subsidiaries over-charging, not under-charging. For...
by stlutz
Sun Jul 27, 2014 4:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard sued for charging too little
Replies: 114
Views: 11507

Re: Vanguard sued for charging too little

After reading a few different articles, I think I have it figured out. What Vanguard should be doing tax-wise is charging the funds market prices for the services it provides, paying taxes on those profits, and then distributing those profits back to the funds. In fact, it is doing neither. On one h...
by stlutz
Sun Jul 27, 2014 10:07 am
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard sued for charging too little
Replies: 114
Views: 11507

Re: Sshwab vs. Vanguard for index funds

I couldn't quite tell from the post, but if you are looking for target date funds, definitely Vanguard. If you are looking to do index mutual funds, Vanguard. Their cheaper Admiral class shares are not available at Schwab. If you prefer ETFs, it really doesn't matter as you can buy Vanguard ETFs at ...
by stlutz
Sun Jul 27, 2014 12:08 am
 
Forum: Investing - Help with Personal Investments
Topic: Sshwab vs. Vanguard for index funds
Replies: 15
Views: 1619

Re: Experimenting with LibreOffice Calc [Importing fund pric

I stumbled upon it


Thanks! Downloaded it and it works great on my machine.
by stlutz
Sat Jul 26, 2014 3:51 pm
 
Forum: Investing - Theory, News & General
Topic: Experimenting with LibreOffice Calc [Importing fund prices]
Replies: 15
Views: 686

Re: Old people and financial advisors - a family tale

...he was the only person who had shown my great uncle any caring and kindness when his wife, my great aunt, died, and had even come by to help around the house. He told me that he trusted this advisor more than anyone else and that he was his "friend." The extent to which we "buy fr...
by stlutz
Sat Jul 26, 2014 2:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Old people and financial advisors - a family tale
Replies: 75
Views: 5508

Re: One of the simplest rational reasons why some should til

If you look at the Fama French data, or even just the Simba spreadsheet, the value premium has been larger in down markets than up markets. In other words, the historical return premium has in part come from realized risk being less than that of the market as a whole. If one expects the future to be...
by stlutz
Sat Jul 26, 2014 1:18 pm
 
Forum: Investing - Theory, News & General
Topic: One of the simplest rational reasons why some should tilt
Replies: 42
Views: 3755

Re: Is stated SEC yield before expense ratio?

SEC Yield is after the expense ratio. The way you can confirm is to compare the yield on investor shares vs. admiral shares. The yield difference is exactly the same as the ER difference.
by stlutz
Sat Jul 26, 2014 1:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is stated SEC yield before expense ratio?
Replies: 8
Views: 536

Re: equal asset location and rebalancing

In order to get back to 50:50, I would have to sell $3750 of TSM in each account, and buy $3750 of bonds in each account. But selling $3750 of TSM in the taxable account will create, on average, a capital gain of about $280 which creates taxes of $42 or more. Are we seriously worrying about $42 of ...
by stlutz
Fri Jul 25, 2014 9:24 pm
 
Forum: Investing - Theory, News & General
Topic: equal asset location and rebalancing
Replies: 6
Views: 565

Re: Profiting from Unprofitable Companies

Of course, if you define value by price/earnings, then these companies get lumped into the small growth category, the dreaded "black hole" of investing! (Cue ominious music). In fact, they have had higher expected returns I never get this. A backtest shows that group A outpeformed group B ...
by stlutz
Fri Jul 25, 2014 2:46 am
 
Forum: Investing - Theory, News & General
Topic: Profiting from Unprofitable Companies
Replies: 16
Views: 1211

Re: Advice proceeding with 100% taxable portfolio.

I estimate the amount I can save per year is probably only in the 15-20k range which is why this isn't as straightforward for me as just maxing 401k/roth/and then dumping the rest into taxable. I don't think I can swing maxing the 401k, a roth, and then still have a good chunk for taxable. $15-20K ...
by stlutz
Thu Jul 24, 2014 11:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice proceeding with 100% taxable portfolio.
Replies: 24
Views: 1596

Re: Do you split your VEU (into VEA+VWO) & VEA (into VGK+VPL

Of course, if you just want to hold things at market weight, VEU holds large and small caps in both developed and emerging markets. Easy and done.


I think you mean VXUS--it is a true total market international fund and is really the standard for that type of investment.
by stlutz
Thu Jul 24, 2014 9:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do you split your VEU (into VEA+VWO) & VEA (into VGK+VPL)?
Replies: 37
Views: 1694

Re: Advice proceeding with 100% taxable portfolio.

The only reason I am breaking my portfolio into taxable/non-taxable is because I have somewhat different investment horizons for each account. Over 30 years for Roth, and probably withdrawals for major purchases here and there for the taxable. If your plan is to use your taxable account for shorter...
by stlutz
Thu Jul 24, 2014 9:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice proceeding with 100% taxable portfolio.
Replies: 24
Views: 1596

Re: Mutual fund account with Vanguard or MerrillEdge?

No, one needs to deposit cash apparently. I don't think so. Their site says, "Funding must come from an external, non-Fidelity source via any standard monetary transfer method ( a standard Transfer of Assets form , check, electronic funds transfer, ADM deposit, etc.). But, you can always call ...
by stlutz
Thu Jul 24, 2014 7:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Mutual fund account with Vanguard or MerrillEdge?
Replies: 31
Views: 1262

Re: Mutual fund account with Vanguard or MerrillEdge?

Wait a minute, I thought of a solution to that problem


ACAT transfer?
by stlutz
Thu Jul 24, 2014 6:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Mutual fund account with Vanguard or MerrillEdge?
Replies: 31
Views: 1262

Re: APY difference between Ally Savings and Ally Money Marke

Until the last couple of months they have always been the same for as long as I can remember.
by stlutz
Thu Jul 24, 2014 6:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: APY difference between Ally Savings and Ally Money Market
Replies: 3
Views: 349

Re: favorite bogleheads posts?

This nisiprius thread is my personal all-time favorite:

viewtopic.php?t=83364
by stlutz
Thu Jul 24, 2014 6:26 pm
 
Forum: Local Chapters and Bogleheads Community
Topic: favorite bogleheads posts?
Replies: 50
Views: 4050

Re: Mutual fund account with Vanguard or MerrillEdge?

A pretty complete list of available deposit bonuses is available here:

http://www.hustlermoneyblog.com/best-brokerage-bonuses/
by stlutz
Thu Jul 24, 2014 6:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: Mutual fund account with Vanguard or MerrillEdge?
Replies: 31
Views: 1262

Re: Temptations and Dangers of Higher-Yielding Funds

The one error people make a lot is is using division instead of subtraction when comparing yields. VG Intermediate Term Treasury yields 1.67% while IT Investment Grade yields 2.60.% Both have comparable durations. When looking at this, too many people say that Investment Grade yields over 50% more t...
by stlutz
Thu Jul 24, 2014 6:09 pm
 
Forum: Investing - Theory, News & General
Topic: Temptations and Dangers of Higher-Yielding Funds
Replies: 11
Views: 961

Re: Can someone explain market cap weighting in bond funds?

What's the advantage of not just buying a straight up muni index? Diversification. Index muni ETFs have to limit themselves to bonds that have relatively good liquidity. The Vanguard fund doesn't have to limit themselves to bonds that trade frequently. As a result, the VG fund hold twice as many di...
by stlutz
Thu Jul 24, 2014 6:00 pm
 
Forum: Investing - Theory, News & General
Topic: Can someone explain market cap weighting in bond funds?
Replies: 6
Views: 298

Re: Mutual fund account with Vanguard or MerrillEdge?

Merrill Edge is a discount broker and you will not have a "fianancial advisor" assigned to you. If you are going to use Merrill Edge, you should use ETFs since the trades will be cheaper, particularly if you will qualify for free trades there (which apply to ETFs but not mutual funds). Act...
by stlutz
Thu Jul 24, 2014 5:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Mutual fund account with Vanguard or MerrillEdge?
Replies: 31
Views: 1262

Re: Do you split your VEU (into VEA+VWO) & VEA (into VGK+VPL

Would you mind giving more pointer where I could find how many % is the 'qualified dividend income' within an ETF? I'm not livesoft, but what works the best for me is to just google, say, "iShares 2013 QDI" or "Vanguard 2013 QDI". These reports are sometime buried in their websi...
by stlutz
Wed Jul 23, 2014 11:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do you split your VEU (into VEA+VWO) & VEA (into VGK+VPL)?
Replies: 37
Views: 1694

Re: The article on tax efficient placement needs to be rewri

I think just focusing on the wiki article misses the point somewhat. I think we need a more fundamental rethink around this issue on this forum, as I don't think that we start from the right point when giving advice. If you look at most any "portfolio help" thread, usually by the second re...
by stlutz
Wed Jul 23, 2014 9:53 pm
 
Forum: Investing - Theory, News & General
Topic: The article on tax efficient placement needs to be rewri
Replies: 75
Views: 4095

Re: The article on tax efficient placement needs to be rewri

Really this comes down to what one considers to be "normal" interest rates. If rates now are "abnormally low" and are sure to go back up to 7 or 8% any day now, then bonds should go in tax advantaged. If sub-3% rates are the "new normal", then the old rules are wrong. I...
by stlutz
Wed Jul 23, 2014 12:35 pm
 
Forum: Investing - Theory, News & General
Topic: The article on tax efficient placement needs to be rewri
Replies: 75
Views: 4095

Re: Do you split your VEU (into VEA+VWO) & VEA (into VGK+VPL

Years ago a lot of people (including me) used VGK+VPL+VWO because Total International was a fund of funds and therefore ineligible for the foreign tax credit. I still have those holdings but started using VXUS for all going-forward investments. I suppose the slice-n-dice options could become useful ...
by stlutz
Tue Jul 22, 2014 10:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do you split your VEU (into VEA+VWO) & VEA (into VGK+VPL)?
Replies: 37
Views: 1694

Re: Vanguard Account Owners - has this happened to you?

I think the way one poster put it once is that it seems like VG has periodic issues with "account information integrity." I think a good percentage of the issues that happen get posted about here as this forum serves to some extent as the Vanguard complaint page, so it's hard to say how pr...
by stlutz
Tue Jul 22, 2014 10:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Account Owners - has this happened to you?
Replies: 17
Views: 2636

Re: Slice and Dicers -- Plans when you can't manage it anymo

It seems to me that if one is concerned either about their own ability to mange their portfolio or beneficiaries ability to do so, using a Life Strategy or Target Retirment fund is a great way to go. The simplicity move from 3 funds to 1 is much greater than from, say, 8 funds to 3.
by stlutz
Tue Jul 22, 2014 10:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Slice and Dicers -- Plans when you can't manage it anymore?
Replies: 38
Views: 2269

Re: not all value metrics are equal

For decades, the printed stock tables in newspapers have included price/earnings ratios. Barron's still has them weekly. Price/earnings ratios have also been public knowledge. The problem with EPS is that it changes through time. The first version of EPS is when a company puts out its earnings rele...
by stlutz
Tue Jul 22, 2014 10:17 pm
 
Forum: Investing - Theory, News & General
Topic: not all value metrics are equal
Replies: 36
Views: 1853

Re: VMMXX: Finally Pulled the Trigger

I thought lots of bogleheads don't like to reinvest dividends; instead they send the dividends to Prime Money Market. What is happening to all your dividends? Are you sending them to Balanced Index Fund Admiral? I send them to my bank. Moving money between my bank and VG is simply much easier than ...
by stlutz
Tue Jul 22, 2014 1:52 am
 
Forum: Investing - Help with Personal Investments
Topic: VMMXX: Finally Pulled the Trigger
Replies: 20
Views: 2676

Re: Joel Greenblatt's "magic formula"

Much of the problem with the "magic formula" is that other researchers couldn't come anywhere close to replicating the backtested results indicated in the book. For example:

http://www.alphaarchitect.com/blog/2011 ... 83OB7EVBOI
by stlutz
Mon Jul 21, 2014 10:40 pm
 
Forum: Investing - Theory, News & General
Topic: Joel Greenblatt's "magic formula"
Replies: 22
Views: 5339

Re: not all value metrics are equal

And, of course, one should not that "the literature" shows that Enterprise Value to EBITDA outperforms all of the metrics Larry discusses. For example, http://csinvesting.org/wp-content/uploa ... search.pdf
by stlutz
Mon Jul 21, 2014 10:34 pm
 
Forum: Investing - Theory, News & General
Topic: not all value metrics are equal
Replies: 36
Views: 1853

Re: not all value metrics are equal

Part of the explanation is simply that the dividend yield calculation makes no assumptions about what information would have been known at the time. The yield was the yield and everyone back then saw it in their morning paper. With the other metrics, it's more complicated. To copy and paste from a p...
by stlutz
Mon Jul 21, 2014 9:33 pm
 
Forum: Investing - Theory, News & General
Topic: not all value metrics are equal
Replies: 36
Views: 1853

Re: What to do in a market correction

What, exactly, is a market correction? The traditional definition is a drop > 10% but <20% (which would be a "bear market"). The drop in 2011 was interesting because it was a "bear market" if you look at intraday prices but only a "correction" if you went by close pric...
by stlutz
Mon Jul 21, 2014 1:18 am
 
Forum: Investing - Theory, News & General
Topic: What to do in a market correction
Replies: 32
Views: 3083
Next

Return to advanced search