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Re: Hourly Financial Advisor -- Yeah, right!

As a comparison data point, Wealth Logic (Allan Roth's firm--who we like here) charges $450/hr. and says to expect 6-20 hours of work. (http://daretobedull.com/services/).
by stlutz
Mon Apr 27, 2015 11:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Hourly Financial Advisor -- Yeah, right!
Replies: 8
Views: 1066

Re: TD Ameritrade user? Question regarding selling Free ETF

PLEASE don't use ETF's. Bogle is completely against it. Think...it is basically a stock. It has to rebalance daily to keep up with the index. It reduces returns over the long term. Mutual funds are the way to go. Actually, it's just the opposite. ETFs are a type of mutual fund where those making th...
by stlutz
Mon Apr 27, 2015 10:56 pm
 
Forum: Investing - Theory, News & General
Topic: TD Ameritrade user? Question regarding selling Free ETFs
Replies: 23
Views: 885

Re: What would happen if everyone at Fidelity went Boglehead

Where is your source for all the "Fact"s that you are claiming. For example: - I would bet most Fide users here make more trades than the median Fido customer. Source? - Also, keep in mind that Fido and Schwab get paid by ETF providers to provide their ETFs at no commission. WHAT? Who is ...
by stlutz
Mon Apr 27, 2015 10:51 pm
 
Forum: Investing - Theory, News & General
Topic: What would happen if everyone at Fidelity went Boglehead?
Replies: 32
Views: 1770

Re: What would happen if everyone at Fidelity went Boglehead

Remember that the the overwhelming majority of brokerage accounts only have a few trades in them per year--regardless of what they are invested in. If more people went full Boglehead and saved a lot more, those accounts would get larger and people would make more trades--I would bet most Fido users ...
by stlutz
Mon Apr 27, 2015 9:38 pm
 
Forum: Investing - Theory, News & General
Topic: What would happen if everyone at Fidelity went Boglehead?
Replies: 32
Views: 1770

Re: Vanguard: "Thank you for restoring access..."

I got one of those a few weeks back as well. However, I didn't change my password.
by stlutz
Mon Apr 27, 2015 9:24 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard: "Thank you for restoring access..."
Replies: 3
Views: 538

Re: Displeased with Fidelity Cash / BNY Mellon- debit card t

This type of situation is why I didn't go with the Fidelity Cash Management account--they aren't really a bank; they just arrange for someone to provide banking services. If you're looking to make a change (and I would in your situation), I highly recommend Schwab. Schwab Bank actually is a bank. Th...
by stlutz
Mon Apr 27, 2015 9:17 pm
 
Forum: Personal Finance (Not Investing)
Topic: Displeased with Fidelity Cash / BNY Mellon- debit card theft
Replies: 11
Views: 927

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

Question: how does the fact that ETF investors buy and sell more frequently (an assumption on my part) weigh in? Where do those costs end up? Those who are doing the trading pay the costs (commissions, spreads etc.) And a boglehead-style investor is helped by this as it provides for more liquidity ...
by stlutz
Sun Apr 26, 2015 6:07 pm
 
Forum: Investing - Theory, News & General
Topic: To ETF or Not to ETF? That is the question.
Replies: 17
Views: 1911

Re: Poll Question: Vanguard vs Fidleity taxable brokerage

Most Vanguard mutual funds that have ETF share classes can be converted to ETF share class without triggering a capital gains tax event. This may be useful if the investor wishes to transfer in-kind to another brokerage. Has anybody done this post the cost basis regs. taking effect? I'm curious as ...
by stlutz
Sun Apr 26, 2015 5:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Poll Question: Vanguard vs Fidleity taxable brokerage
Replies: 27
Views: 1169

Re: Poll Question: Vanguard vs Fidleity taxable brokerage

OP: I disagree with your poll options. :happy From your other threads I think you're setting yourself up to make things waaaaay too complicated. A few consolidated suggestions: a) Skip the auto-investing in a taxable account. You have a high income and can can make purchases in decent-sized chunks. ...
by stlutz
Sun Apr 26, 2015 5:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: Poll Question: Vanguard vs Fidleity taxable brokerage
Replies: 27
Views: 1169

Re: Problem transferring Ameriprise REITS to Fidelity

How do you know that "all of the transfers have been completed?" Some assets can be transferred in an automated fashion; others cannot. I think the most likely scenario is that the ones that can be done in an automated fashion have shown up in your account while the non-traded REITs likely...
by stlutz
Sat Apr 25, 2015 9:49 am
 
Forum: Investing - Help with Personal Investments
Topic: Problem transferring Ameriprise REITS to Fidelity
Replies: 3
Views: 387

Re: Bond: Mutual Fund or ETF?

Was just reading an article on etf.com that referenced this site that allows you to pull up graphs like livesoft showed historically which is kind of fun: https://surveyorapp.trlm.com/
by stlutz
Fri Apr 24, 2015 9:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond: Mutual Fund or ETF?
Replies: 31
Views: 1707

Re: Opening Online Savings Account with Credit Freeze

I think whether or not a debit card is included with the account is a frequent variable.
by stlutz
Fri Apr 24, 2015 8:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Opening Online Savings Account with Credit Freeze
Replies: 10
Views: 948

Re: Bond: Mutual Fund or ETF?

I periodically promote SCHR (Schwab Int. Term Treasury) on these boards even though I don't own any of it. One thing I have noticed in watching it now and then is how inconsistent the quoted spread is throughout the day compared with other like-size competitors (e.g. VGIT, GOVT). That's not to say t...
by stlutz
Fri Apr 24, 2015 8:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond: Mutual Fund or ETF?
Replies: 31
Views: 1707

Re: Help Requested: How many ETFs & Index Funds is too much?

What is the rationale behind the extra dabs of this and that? For example, VTI currently has 13.8% in healthcare stocks. Why is that not enough that you need some extra? (Note: The fact that it *was* the best performing sector over the past X number of years is not a good answer. :happy ). If your p...
by stlutz
Thu Apr 23, 2015 1:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Help Requested: How many ETFs & Index Funds is too much?
Replies: 32
Views: 1676

Re: Cash-heavy and action-ready: How's this allocation?

I'm told that I can sell them easily and at almost no cost. On the munis, probably not. You'll likely take a hit of several percent to principal and it make take a few tries to find a buyer. Most munis trade rarely (e.g. every few months). If of course depends on the exact issue--some are much more...
by stlutz
Thu Apr 23, 2015 12:07 am
 
Forum: Investing - Help with Personal Investments
Topic: Cash-heavy and action-ready: How's this allocation?
Replies: 22
Views: 1904

Re: Cash-heavy and action-ready: How's this allocation?

stlutz, I'm a little confused. Isn't every dividend taxable, whether reinvested or not? Yes. It's what comes after. Suppose I have $55 of A and $45 of B and I want them to be equal. They each pay $5 of dividends (total = $10). I could take that $10 and put it all into B and I'm rebalanced. Or, I co...
by stlutz
Wed Apr 22, 2015 11:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Cash-heavy and action-ready: How's this allocation?
Replies: 22
Views: 1904

Re: Cash-heavy and action-ready: How's this allocation?

And...if ultimately wanting to diversity the bond holdings, how's this breakdown (all Vanguard): 40% Total Bond 24% Intermediate-Term Bond 16% Short-Term Bond (in the taxable account) 20% International Bond This really does nothing but add some complexity to the portfolio. On the domestic side, tot...
by stlutz
Wed Apr 22, 2015 11:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Cash-heavy and action-ready: How's this allocation?
Replies: 22
Views: 1904

Re: Cash-heavy and action-ready: How's this allocation?

Thanks, DC. Interesting: I've had a number of people say it's a no-brainer to reinvest dividends in non-taxable accounts, but to NOT do so in taxable accounts so that it's easier to do re-balancing. It's not so much that reblancing is easier, it's that with auto-reinvestment reblancing becomes a ta...
by stlutz
Wed Apr 22, 2015 11:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Cash-heavy and action-ready: How's this allocation?
Replies: 22
Views: 1904

Re: SCHB vs VTI

What is the calculation that you're performing here exactly? I can't figure out how you calculated the additional tax or how you went from additional tax to extra cost. The funds have a dividend yield of ~1.8%. One fund has a QDI of 100% while the other has one of 94.5%. So, in making our compariso...
by stlutz
Wed Apr 22, 2015 7:58 pm
 
Forum: Investing - Theory, News & General
Topic: SCHB vs VTI
Replies: 13
Views: 3022

Re: Muni Bonds vs Muni Bond Funds

Always remember that a bond fund is just a collection of individual bonds. There is no magic difference between the two.

Are any of the FAs you've spoken to willing to manage your muni portfolio for less .12% per year? That what VG will charge you.
by stlutz
Wed Apr 22, 2015 10:17 am
 
Forum: Investing - Theory, News & General
Topic: Muni Bonds vs Muni Bond Funds
Replies: 10
Views: 732

Re: LifeStrategy in all accounts vs tax-aware allocation

The overwhelming majority of investors would do better by using a fund like Life Strategy, regardless of whether it's in a taxable or in an IRA. So, it's "good enough" in that regard. However, I agree with pretty much everyone else that I wouldn't switch. A few thoughts: --Rebalancing is n...
by stlutz
Tue Apr 21, 2015 9:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: LifeStrategy in all accounts vs tax-aware allocation
Replies: 4
Views: 702

Re: TX, MT, CO, and NM Comparative Tax Burden

State and local governments pretty much provide the same services everywhere--police, fire, roads, schools etc. It can get that revenue from taxing income, property, or sales. Most of the states with steeper overall tax burdens do that through a progressive tax. Unless you're in the top 5% of earner...
by stlutz
Tue Apr 21, 2015 9:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: TX, MT, CO, and NM Comparative Tax Burden
Replies: 37
Views: 1863

Re: SCHB vs VTI

SCHB's QDI of 94.50% for 2014 really bothers me.


Let's run the numbers:

Yield: 1.8%
Non-QDI portion: 5.5%
Additional tax on the non-QDI portion: 13% --assuming a 28% tax bracket.

Total extra cost: .013% per year.
by stlutz
Tue Apr 21, 2015 9:09 pm
 
Forum: Investing - Theory, News & General
Topic: SCHB vs VTI
Replies: 13
Views: 3022

Re: What's Up With Vanguard Muni Fund Duration

For a real world look at how these two funds performed when the bond market turned sharply downward in 2013, see:

http://thefinancebuff.com/vanguard-long ... nds-2.html
by stlutz
Tue Apr 21, 2015 8:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: What's Up With Vanguard Muni Fund Duration
Replies: 5
Views: 572

Re: All-into Reit ETF in Roth IRA (SCHH)?

I would rather have SCHB/SCHF/SCHE than to just be concentrated in one narrow sector of the market. There are plenty of other small segments of the market that have high dividend yields--what makes REITs so super-special?
by stlutz
Sun Apr 19, 2015 10:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: All-into Reit ETF in Roth IRA (SCHH)?
Replies: 17
Views: 744

Re: Quick technical question about Vanguard website

This happened to me when I setup a VG brokerage account a number of years ago (that I no longer have). Anyhow, just call them tomorrow and tell them that you somehow ended up with an extra money market fund and that you'd like to get down to just having one. They should be able to fix things up for ...
by stlutz
Sun Apr 19, 2015 10:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: [Vanguard Prime assets available in new brokerage account?]
Replies: 12
Views: 765

Re: Schwab Bank Investor Checking down to 0.06% APY

E*Trade bank is 0.05%, and Fidelity's cash management account is 0.07%, so it looks like they're all in the same neighborhood. Hopefully, the Fed's Zero Interest Rate Policy will end eventually Whenever rates do go up, it will be interesting to see which of these three goes up with them and which o...
by stlutz
Sat Apr 18, 2015 11:00 am
 
Forum: Personal Finance (Not Investing)
Topic: Schwab Bank Investor Checking down to 0.06% APY
Replies: 9
Views: 1207

Re: Should I purchase an Umbrella policy?

Do you have un/underinsured motorists coverage?

Is that $275K in a 401K, an IRA or just a regular taxable account?
by stlutz
Thu Apr 16, 2015 12:22 am
 
Forum: Personal Finance (Not Investing)
Topic: Should I purchase an Umbrella policy?
Replies: 52
Views: 5138

Re: Help me choose: HDHP/HSA or Regular Health Care Plan

How is heath coverage for $0 a bad plan?

I would select based on a) the doctor network (if they are different b) the OOP maximium.
by stlutz
Wed Apr 15, 2015 1:15 am
 
Forum: Personal Consumer Issues
Topic: Help me choose: HDHP/HSA or Regular Health Care Plan
Replies: 13
Views: 1121

Re: Wellesley for Emergency Fund

Another option would be to just more fully integrate your EF into your investment plan. For example, suppose you targeted 25% bonds. Why not just do 25% + $9000 in your bond fund?
by stlutz
Tue Apr 14, 2015 9:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Wellesley for Emergency Fund
Replies: 6
Views: 956

Re: Index Bonds - Tax Placement Question

Right now (for the past 6 years or so), bonds in taxable generally makes more sense. As the wiki article notes, low yielding bonds belong in taxable. If rates went up significantly (and stayed up), that would no longer be the case. What you would do then is sell your bond funds in taxable (and take ...
by stlutz
Tue Apr 14, 2015 8:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Index Bonds - Tax Placement Question
Replies: 2
Views: 290

Re: Continual Changes to Cost Basis

Did VG provide any supplementary info. on what the ABP adjustment was for each bond? People here could help confirm if the math looks correct, but to do that a bunch of info. is needed on each bond being looked at: --the price when you inherited it and the date --the price you sold it for and the da...
by stlutz
Tue Apr 14, 2015 8:46 pm
 
Forum: Investing - Theory, News & General
Topic: Continual Changes to Cost Basis
Replies: 5
Views: 561

Re: Inflation Protected Securities Fund

TR 2015 is about 50% stocks. So, if you moved 1/2 of that to the TIPS fund, you'd be down to 25% stocks. Is that what you are looking to do? If you really want to replace all of your nominal bonds with TIPS, then you should consider going to a 3 fund type portfolio that replicates the weighting of T...
by stlutz
Mon Apr 13, 2015 10:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Inflation Protected Securities Fund
Replies: 10
Views: 1021

Re: How much riskier are munis than treasuries?

This paper actually did break out the various component of muni yields (tax, credit, liquidity) and argues that the muni yields have stayed high relative to treasuries primarily because of reduced liquidity vs. the pre-2008 period.

http://papers.ssrn.com/sol3/papers.cfm? ... id=2489190
by stlutz
Mon Apr 13, 2015 7:27 pm
 
Forum: Investing - Theory, News & General
Topic: How much riskier are munis than treasuries?
Replies: 32
Views: 3838

Re: PXSV has changed indexes

Does anyone know exactly why PXSV management decided to change indexes?


The index provider decided to stop calculating it.
by stlutz
Mon Apr 13, 2015 7:18 pm
 
Forum: Investing - Theory, News & General
Topic: PXSV has changed indexes
Replies: 125
Views: 9803

Re: How much riskier are munis than treasuries?

I think it's more a case of when the risks show up. From 1978-1981, VG IT muni fund was down 28%--before inflation (source: Yahoo finance). Over that same time span, intermediate term treasuries were up 21% (source: Simba spreadsheet). In 2008, IT-TE was basically unchanged with IT-Treasury was up 1...
by stlutz
Mon Apr 13, 2015 12:06 am
 
Forum: Investing - Theory, News & General
Topic: How much riskier are munis than treasuries?
Replies: 32
Views: 3838

Re: Living off investments / Early retirement

In 2008 total bond index fund went up while the stock funds went down. But you are correct that all three categories can go down at the same time. In fact, I would plan on it happening at some point. With stocks, a 20% decline is a fairly routine event. I hope this isn't too personal of a question: ...
by stlutz
Sun Apr 12, 2015 9:33 am
 
Forum: Investing - Help with Personal Investments
Topic: Living off investments / Early retirement
Replies: 17
Views: 3852

Re: I-Bonds vs EE Bonds vs TIPS vs Treasuries - 20 years

Why not put it all in shorter-term CDs and/or bonds (i.e. < 5 years) for now and build the ladder when rates are higher? If I was going to lock in for 20 years I'd at least want to know I'm getting a halfway decent yield. I don't consider that to be the case at this very moment.
by stlutz
Sun Apr 12, 2015 9:21 am
 
Forum: Investing - Help with Personal Investments
Topic: I-Bonds vs EE Bonds vs TIPS vs Treasuries - 20 years
Replies: 22
Views: 1884

Re: Poll: do you own individual international stocks?

The Fidelity commissions are in local currency. So 3000 yen not dollars.
by stlutz
Sun Apr 12, 2015 6:07 am
 
Forum: Investing - Theory, News & General
Topic: Poll: do you own individual international stocks?
Replies: 25
Views: 1734

Re: Bond: Mutual Fund or ETF?

I will claim this for both. Schwab makes no secret that it sells order information to folks who profit from that information. Schwab is not the only institution to do this.


Thanks for the clarification--our understandings are in line with each other.
by stlutz
Sat Apr 11, 2015 6:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond: Mutual Fund or ETF?
Replies: 31
Views: 1707

Re: Which 3 year old hybrid: Camry or Prius

I would choose based on whether you want a hatchback or a sedan. I think sedans are the most useless car car design. The Prius is smaller and more useful.
by stlutz
Sat Apr 11, 2015 5:50 pm
 
Forum: Personal Consumer Issues
Topic: Which 3 year old hybrid: Camry or Prius
Replies: 36
Views: 2745

Re: Bond: Mutual Fund or ETF?

Furthermore, if one submits a market order at Schwab, the ask price will go up between the time you click your submit button and the time your order is actually executed, so it is very likely that you will pay more than you thought you would. That is, you will end up paying the full spread and it w...
by stlutz
Sat Apr 11, 2015 3:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond: Mutual Fund or ETF?
Replies: 31
Views: 1707

Re: Bond: Mutual Fund or ETF?

Quoted bid/ask information outside of market hours is basically useless. Look again when the market is open. This ETF trades with an average spread of about .04% (http://www.etf.com/SCHZ). So, when placing a trade I would watch that the difference is at that level or less. Otherwise, wait an hour or...
by stlutz
Sat Apr 11, 2015 2:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond: Mutual Fund or ETF?
Replies: 31
Views: 1707

Re: ETF limit order relative to NAV?

Agreed. I was making a theoretical response to your entirely practical question. :P I wonder if the type of trading software like Interactive Brokers uses or TD Ameritrade's Think or Swim would let you set up a trading rule based on the ratio of market price to iNav--my guess is "yes". Tha...
by stlutz
Sat Apr 11, 2015 2:47 pm
 
Forum: Investing - Theory, News & General
Topic: ETF limit order relative to NAV?
Replies: 7
Views: 433

Re: REITs Question

No--it's really unrelated to whether you should have an extra allocation to REITs beyond what the total market index provides. Owning and living in residential real estate is much different than commerical real estate operations. REITs should just be thought of as stocks that work differently from a...
by stlutz
Sat Apr 11, 2015 2:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: REITs Question
Replies: 3
Views: 482

Re: ETF limit order relative to NAV?

A better example is probably the muni bond ETF MUB (and also the forthcoming Vanguard fund that will track the same index). It went pretty nonlinear during the financial crisis (market price and NAV differed by several %). Due to illiquidity of the underlying securities in turbulent market conditio...
by stlutz
Sat Apr 11, 2015 2:37 pm
 
Forum: Investing - Theory, News & General
Topic: ETF limit order relative to NAV?
Replies: 7
Views: 433

Re: Small cap premium

Hmmm...I've been honestly trying to work out whether this is a better analogy. I think not? If I own a bunch of small bonds and there are more defaults than expected, the other companies are not going to cover my lost expected returns. My analogy obviously wouldn't happen in real life--it's just a ...
by stlutz
Sat Apr 11, 2015 10:23 am
 
Forum: Investing - Theory, News & General
Topic: Small cap premium
Replies: 32
Views: 2397

Re: Is there Smart Beta in Corporate Bonds?

On the question of whether the inclusion of any credit risk is worthwhile, I think Rick's view ("yes") wins in the logic department while the Treasurys-only view ("no") wins in the backtesting department. Whether using the Simba spreadsheet or portfoliovisualizer, I've never been...
by stlutz
Sat Apr 11, 2015 10:00 am
 
Forum: Investing - Theory, News & General
Topic: Is there Smart Beta in Corporate Bonds?
Replies: 35
Views: 3213

Re: Is there Smart Beta in Corporate Bonds?

Thanks for sharing the paper, Rick! Now that I've had a chance to reflect on it and the comments, I have a few thoughts. One of the things the paper shows is that that market views "investment grade" and "high yield" to be different asset classes entirely. What "works" ...
by stlutz
Sat Apr 11, 2015 9:43 am
 
Forum: Investing - Theory, News & General
Topic: Is there Smart Beta in Corporate Bonds?
Replies: 35
Views: 3213

Re: Small cap premium

I thought the Vanguard High Yield fund hasn't had any defaults?


They typically sell (at a significant loss) before the actual default occurs.
by stlutz
Sat Apr 11, 2015 2:03 am
 
Forum: Investing - Theory, News & General
Topic: Small cap premium
Replies: 32
Views: 2397
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