Search found 852 matches
- Fri Apr 21, 2023 4:01 pm
- Forum: Investing - Theory, News & General
- Topic: The TSP’s G Fund
- Replies: 38
- Views: 6633
Re: The TSP’s G Fund
I am using 70% L Income (which is mostly G Fund), and 30% G Fund. In the event we get a sharp leg down in the stock market from here, I might increase exposure a bit in stocks, but don't really need to either way. The plan is to use up TSP by age 70 when deferred SS kicks in.
- Mon Mar 27, 2023 3:48 pm
- Forum: Investing - Theory, News & General
- Topic: Is a CD a CD anymore?
- Replies: 76
- Views: 9077
Re: Is a CD a CD anymore?
A compact disc is still a compact disc, although digital files seem to be a growing trend in...oh, wait...do you mean certificates of deposit?? Yes, I think they are still a thing, too.
- Mon Mar 20, 2023 6:12 pm
- Forum: Investing - Theory, News & General
- Topic: Taxation of Treasury bills, notes and bonds
- Replies: 1078
- Views: 157347
Re: Taxation of Treasury bills, notes and bonds
The tax code requiring this level of granularity is ridiculous for smallish transaction amounts.
- Mon Mar 13, 2023 1:36 pm
- Forum: Investing - Theory, News & General
- Topic: Treasuries Today - What duration are you buying?
- Replies: 128
- Views: 23167
Re: Treasuries Today - What duration are you buying?
Currently, a nine month ladder with a maturity every month. I just purchased a 3 month at auction today. The plan is to expand the ladder to 12 months over the next few months.
- Thu Feb 23, 2023 9:06 am
- Forum: Investing - Theory, News & General
- Topic: Delay Social Security to age 70 and Spend more money at 62: How's It Going?
- Replies: 130
- Views: 19762
Re: Delay Social Security to age 70 and Spend more money at 62: How's It Going?
My wife and I chose the strategy of delaying until age 70. We are both now 64. I was the higher earner, retired at age 56 and we both have COLA-based pensions, so taking SS before age 70 didn't make sense to us when we decided that. I am now 8 years into retirement. We still have more disposable income than we need by a large margin, and 401K/IRA assets are sufficient to bridge us to age 70 with a generous increase for inflation every year. We view delaying to be "old age insurance" and a cushion for a surviving spouse situation. It is not more complicated than that. So to answer the OP, it is going better than expected, even with a significant bear market (hopefully) winding down.
- Fri Dec 23, 2022 10:11 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard still for me, warts and all
- Replies: 111
- Views: 14979
Re: Vanguard still for me, warts and all
This is the one of the primary reasons for me...that and no-cost access to their mutual funds.JBVG wrote: ↑Fri Dec 23, 2022 2:55 am For me, which I have not yet seen mentioned on this thread, is the important and unique structure of Vanguard itself. I do not know of another financial provider institution arranged in such a manner, and this defining feature tipped the scales for us many years ago as we entrusted Vanguard as stewards of our savings. This element keeps us firmly loyal today.
From the wiki:
"The new firm was established as a mutual organization with the mutual funds (and by extension, fund shareholders) owning the management company, which would provide services to the funds at cost and reduce conflicts of interest."
- Sun Nov 13, 2022 2:46 pm
- Forum: Investing - Theory, News & General
- Topic: The 4% Rule Just Became a Whole Lot Easier - Allan Roth
- Replies: 409
- Views: 76686
Re: The 4% Rule Just Became a Whole Lot Easier - Allan Roth
Maybe, maybe not. It depends on what rate you have to reinvest at in one or two years. TIPS ladders eliminate the interest rate risk for 30 years.AnnetteLouisan wrote: ↑Sun Nov 13, 2022 2:26 pm Are tips better than the current 4.6 percent on a one year treasury and 4.3 percent on a two year? Why or why not?
- Thu Nov 03, 2022 11:36 am
- Forum: Investing - Theory, News & General
- Topic: New I bonds not worth it; consider selling old ones at next reset
- Replies: 251
- Views: 57313
Re: New I bonds not worth it; consider selling old ones at next reset
This is an apples-to-oranges comparison. Each type has a different set of characteristics, ergo the buyer selects each based on their intended use.
- Sat Oct 22, 2022 1:47 pm
- Forum: Investing - Theory, News & General
- Topic: Corporate Bonds - what to look out for?
- Replies: 4
- Views: 698
Re: Corporate Bonds - what to look out for?
Would suggest a bond fund (like VCIT, current SEC yld: 5.84%, avg. duration 6.2 yrs) rather than individual bonds if you are considering corporates. No reason to take on individual-level default risk in the safe part of your portfolio. Take that risk on the equity side.
- Mon Oct 17, 2022 6:28 pm
- Forum: Investing - Theory, News & General
- Topic: Worst. Bond. Market. Ever. [2023 update]
- Replies: 253
- Views: 51807
Re: 2022: Worst. Bond. Market. Ever? [June update]
They are all priced well right now, but the 5 year is what is coming up for auction now.
- Sun Oct 16, 2022 3:40 pm
- Forum: Investing - Theory, News & General
- Topic: Worst. Bond. Market. Ever. [2023 update]
- Replies: 253
- Views: 51807
Re: 2022: Worst. Bond. Market. Ever? [June update]
TIPS are actually priced well right now, especially the 5 year up for auction next week.
- Mon Oct 10, 2022 5:49 pm
- Forum: Investing - Theory, News & General
- Topic: "Bear Market Musings"
- Replies: 19
- Views: 3058
Re: "Bear Market Musings"
Thanks, Taylor.
This part struck home:
This part struck home:
There is no guarantee that buying stocks when they are down will lead to better outcomes, but history tells us that expected returns are higher when prices are lower. Wise investors don’t invest based on their fears about what might happen but rather on what’s most likely to happen.
- Thu Sep 29, 2022 4:25 pm
- Forum: Investing - Theory, News & General
- Topic: When Stocks & Bonds BOTH Suffer Double-digit Real Losses, 1794-2021
- Replies: 43
- Views: 5555
Re: When Stocks & Bonds BOTH Suffer Double-digit Real Losses, 1794-2021
Here is an interesting FTSE September 2022 report on global bond returns, very comprehensive...
https://content.ftserussell.com/sites/d ... _usd_0.pdf
https://content.ftserussell.com/sites/d ... _usd_0.pdf
- Fri Sep 09, 2022 6:03 pm
- Forum: Investing - Theory, News & General
- Topic: ESG investing
- Replies: 25
- Views: 2187
Re: ESG investing
It seems rather odd to invest based on ESG. The market price (the net of buyer and seller transactions at a given time) determines the market value of a company. If one avoid companies with a low ESG score, exactly how does that change the valuation? Consider efficient market theory as an example. If the point of ESG is to "get ahead of the curve" of geopolitical changes relating to the three factors (environment, social, governance), how does that improve upon what is already being determined by market forces? This sound like nothing more than marketing. Blackrock, for example, holds over $100 billion in oil company investments (not part of its ESG funds). Are not the "bad" ESG stocks still owned and valued based on mar...
- Mon Sep 05, 2022 5:50 pm
- Forum: Investing - Theory, News & General
- Topic: Where Is the Line Drawn for "Low Cost?"
- Replies: 33
- Views: 3101
Re: Where Is the Line Drawn for "Low Cost?"
It's subjective. When I first started paying attention, Vanguard 500 Index was something like 0.25%, while typical mainstream funds had expenses in 1% to 1.5% territory. Note well: what matters is the absolute difference, not the ratio. The difference between 1.25% and 0.25% is 1%, that really matters. The difference between 0.25% and 0.05% is only 0.20%, it matters much less. And the difference between 0.05% and 0.01% is only 0.04%, and matters even less. Morningstar categorizes mutual funds, but not, alas, ETFs, as having fees that are low, below average, average, above average, and high. I think they are far too kind but this, at any rate, is one source that is willing to commit to a judgement of fee level. Because the difference is so ...
- Wed Aug 31, 2022 3:27 pm
- Forum: US Chapters
- Topic: "Zoom" Bogleheads local chapter [Formerly Birmingham, Alabama]
- Replies: 81
- Views: 29621
Re: "Zoom" local chapter - based in Birmingham, Alabama
Anyone who lives in the greater Huntsville area may be interested to know we are planning to resume in-person meetings quarterly at the Madison Public Library, tentatively starting in October.
Please message me if you are interested in attending.
Please message me if you are interested in attending.
- Sun Aug 28, 2022 1:22 pm
- Forum: Investing - Theory, News & General
- Topic: Why valuations don't matter much
- Replies: 142
- Views: 10514
Re: Why valuations don't matter much
I disagree. TSLA sucks up all the best engineers from Silicon Valley. They are leading most companies today on technical innovation.
- Sun Aug 28, 2022 12:30 pm
- Forum: Investing - Theory, News & General
- Topic: Why valuations don't matter much
- Replies: 142
- Views: 10514
Re: Why valuations don't matter much
To be clear, there are TSLA investors (I am not one, other than in the TSM index) who value the company as more than its car sales. In particular, they point to robot development, as in the Jetson's Rosie the Robot.
- Thu Aug 25, 2022 8:25 am
- Forum: Investing - Theory, News & General
- Topic: Why valuations don't matter much
- Replies: 142
- Views: 10514
Re: Why valuations don't matter much
Market valuation has two components, actual return (profits, dividends) and speculative return (the expected growth rate). Applies to both individual companies and indexes.
- Mon Aug 22, 2022 3:04 pm
- Forum: Investing - Theory, News & General
- Topic: Wellesley/Wellington
- Replies: 56
- Views: 11540
Re: Wellesley/Wellington
None that I know of. That said, I hold some Wellington fund shares. Why? It is low expense and is managed conservatively, so there is an outside chance of outperforming (and of course, vice versa). So yeah there is no inherent advantage.homebuyer6426 wrote: ↑Mon Aug 22, 2022 7:15 am What's the advantage of using these active funds compared to a few basic index funds with a lower expense ratio? Genuine question, because they seem to be well respected funds on this board.
- Mon Aug 15, 2022 12:27 pm
- Forum: Investing - Theory, News & General
- Topic: Lumpy expenses and withdrawing from portfolio
- Replies: 59
- Views: 5217
Re: Lumpy expenses and withdrawing from portfolio
I better check current car prices again. I may be under-budgeted!Broken Man 1999 wrote: ↑Mon Aug 15, 2022 12:05 pm
Two major lumpy expenses that could strike any minute: replacing our vehicle ($75.000) and new roof ($12,000-$17,000).
- Mon Aug 15, 2022 10:33 am
- Forum: Investing - Theory, News & General
- Topic: Lumpy expenses and withdrawing from portfolio
- Replies: 59
- Views: 5217
Re: Lumpy expenses and withdrawing from portfolio
I keep a spreadsheet with a section for lumpy expenses (car, roof, etc.). This "escrow" is funded with a fixed monthly amount.
While that amount is somewhat arbitrary, it is useful for maintaining a conservative measure of net worth and operating budget. When lumpy charges get incurred, the escrow balance is reduced accordingly. The escrow is of course in liquid accounts (cash, I-Bond, CD, etc.)
While that amount is somewhat arbitrary, it is useful for maintaining a conservative measure of net worth and operating budget. When lumpy charges get incurred, the escrow balance is reduced accordingly. The escrow is of course in liquid accounts (cash, I-Bond, CD, etc.)
- Thu Aug 11, 2022 4:34 pm
- Forum: Investing - Theory, News & General
- Topic: Rick Ferri view on Moneymarket
- Replies: 23
- Views: 3833
Re: Rick Ferri view on Moneymarket
I mention All About Asset Allocation here, and re-read parts of it quite often. I consider it a primary reference on the subject.
- Tue Aug 09, 2022 1:58 pm
- Forum: Investing - Theory, News & General
- Topic: Kotlikoff - Upside investing strategy
- Replies: 66
- Views: 7485
Re: Kotlikoff - Upside investing strategy
Yep. Aaaaaand final judgment...... hokum.BitTooAggressive wrote: ↑Tue Aug 09, 2022 8:01 am
Why not? He came across to me with his sales pitch just like the guys peddling annuities. They do that quite often when they pitch indexed annuities. Very dishonest.
Stock market risky oh no. Get the upside but not the downside…
- Mon Aug 08, 2022 2:50 pm
- Forum: Investing - Theory, News & General
- Topic: Kotlikoff - Upside investing strategy
- Replies: 66
- Views: 7485
Re: Kotlikoff - Upside investing strategy
The idea of preferring bonds over stocks when you have "won the game" is sound. The variable mostly ignored in these kinds of models is consideration of what is the legacy goal: spend it to zero, leave most to others/charity, or somewhere in-between.
If you have enough, it is obvious there is no need to take on stock market risk, but also obvious there is an ability to take on stock market risk without impacting one's chosen standard of living for the unused portion. If the goal is to spend it all down, choose the former, and if the goal is to bequest it, choose the latter.
It's not rocket surgery.
If you have enough, it is obvious there is no need to take on stock market risk, but also obvious there is an ability to take on stock market risk without impacting one's chosen standard of living for the unused portion. If the goal is to spend it all down, choose the former, and if the goal is to bequest it, choose the latter.
It's not rocket surgery.
- Mon Aug 08, 2022 12:06 pm
- Forum: Investing - Theory, News & General
- Topic: Kotlikoff - Upside investing strategy
- Replies: 66
- Views: 7485
Re: Kotlikoff - Upside investing strategy
Who decided the standard for measuring long term stock market performance is 30 years? There is no consensus. If we are considering average annual return, it is calculated using any number of periods, but usually between 5 and 10 years, not 30.
- Mon Aug 08, 2022 11:05 am
- Forum: Investing - Theory, News & General
- Topic: Kotlikoff - Upside investing strategy
- Replies: 66
- Views: 7485
Re: Kotlikoff - Upside investing strategy
But, you respond: The U.S. is not Japan. Over all 30-year periods from 1926 to the present, the U.S. stock market has yielded an annual return of at least 8 percent. My response: First, you need to adjust for inflation. Once you do so, the 8 percent minimum 30-year annual stock return is only 0.5 percent. Second, the U.S. data provide only three independent, 30-year cumulative-return data points. Studies that reference “all” 30-year periods are using the same annual return data over and over again. That’s not statistically kosher. Third, the U.S. stock data suffer from survivor bias. We don’t have data on stock returns from countries that didn’t survive the test of time or whose stock markets were closed during periods of occupation or reg...
- Sun Aug 07, 2022 12:16 pm
- Forum: Investing - Theory, News & General
- Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
- Replies: 6658
- Views: 1241620
Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
Thanks for correcting me. States cannot tax Government bond instruments.
- Sat Aug 06, 2022 6:40 pm
- Forum: Investing - Theory, News & General
- Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
- Replies: 6658
- Views: 1241620
Re: Series I savngs bond (aka ibond) question
I Bond interest is not free from taxes in all states.
- Sat Jul 30, 2022 1:37 pm
- Forum: Investing - Theory, News & General
- Topic: Are Current Rates On Bonds Telling Us Something?
- Replies: 41
- Views: 5820
Re: Are Current Rates On Bonds Telling Us Something?
There is conflicting data in the credit markets. On the one hand, the 2-10 yield curve inverted which is an indicator of recession. On the other hand, the high yield spread, a risk measure of corporate debt, is still near the average, which suggests not much of a slowdown. Ahead of (or concurrent with) recessions, the spread climbs to 7% or higher. Today it is 5%.
Here is a discussion on this very conflict: https://fsinvestments.com/fs-insights/c ... ndicators/
Here is a discussion on this very conflict: https://fsinvestments.com/fs-insights/c ... ndicators/
- Wed Jul 20, 2022 2:58 pm
- Forum: Investing - Theory, News & General
- Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
- Replies: 6658
- Views: 1241620
Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
To be clear...If you login in one day after you purchase - let's say you bought on 7/19/2022 - it will say the "issue date" is 7/1/2022. On 8/1/2022, you have accrued one month of interest even if the bond is not technically one month old.
It also means that if you hold for the full 30 years, the effective maturity date is 6/30/2052.
It also means that if you hold for the full 30 years, the effective maturity date is 6/30/2052.
- Tue Jul 19, 2022 4:57 pm
- Forum: Investing - Theory, News & General
- Topic: Wellington fund
- Replies: 66
- Views: 20397
Re: Wellington fund
Using this along with a Vanguard target date fund (50/50) in the IRA. It is well run with low expenses for an actively managed fund. Turnover rate last year was 35%. Keep in mind Wellington's equity side under-performs whenever tech outperforms because of its conservative portfolio of stocks, and vice versa.
- Sat Jul 16, 2022 8:53 am
- Forum: Investing - Theory, News & General
- Topic: Jack's book on sale for $2.99 on Kindle
- Replies: 26
- Views: 3967
Re: Jack's book on sale for $2.99 on Kindle
Thanks Rick for the heads up. Will definitely get a kindle copy tomorrow.
- Sat Jul 16, 2022 8:49 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard Customer Service Mega-thread
- Replies: 1514
- Views: 169547
Re: Vanguard Customer Service Mega-thread
That is what happened to me years ago with Schwab when I left them for Vanguard. The account was moved, but then a second transfer was done upon settlement of late dividends.
- Fri Jul 15, 2022 1:10 pm
- Forum: Investing - Theory, News & General
- Topic: "What Would Jack Do? Ask Vanguard's Clients"
- Replies: 11
- Views: 2242
Re: "What Would Jack Do? Ask Vanguard's Clients"
The article, without even saying it, points to how much Jack's leadership and reputation means versus Vanguard today. How well would you say is Vanguard doing today on the question of: "Vanguard’s priority is to put investors first"? While not the only metric, let's consider their website, their "app" and their telephone customer service for people with less than $1 million in assets. How's that priority doing now? NoRoboGuy: According to the J.D. Power Company who measures such things, Vanguard is doing better than most: https://www.jdpower.com/business/press-releases/2021-us-self-directed-investor-satisfaction-study Best wishes Taylor Jack Bogle's Words of Wisdom: "I do not believe it is hyperbole to say that suc...
- Fri Jul 15, 2022 12:48 pm
- Forum: Investing - Theory, News & General
- Topic: "What Would Jack Do? Ask Vanguard's Clients"
- Replies: 11
- Views: 2242
Re: "What Would Jack Do? Ask Vanguard's Clients"
The article, without even saying it, points to how much Jack's leadership and reputation means versus Vanguard today.
How well would you say is Vanguard doing today on the question of: "Vanguard’s priority is to put investors first"? While not the only metric, let's consider their website, their "app" and their telephone customer service for people with less than $1 million in assets. How's that priority doing now?
How well would you say is Vanguard doing today on the question of: "Vanguard’s priority is to put investors first"? While not the only metric, let's consider their website, their "app" and their telephone customer service for people with less than $1 million in assets. How's that priority doing now?
- Fri Jul 15, 2022 11:28 am
- Forum: Investing - Theory, News & General
- Topic: TSP G Fund rate 3.00% (Nov 2023)
- Replies: 231
- Views: 38397
Re: TSP G Fund rate 3.00% (June 2022)
The G fund has less expected returns than the other fund options. The G Fund has the same expected return as an Intermediate Treasury fund. Total Bond has about 35% corporate bonds, so has higher risk, with higher expected return. Long Treasury funds have higher risk. Short Treasury funds have lower risk. 2/3rds of Total Bond is in U.S. Govt, so that portion represents taking on uncompensated interest/duration risk relative to the G fund. SEC yield 3.41% versus G fund 3.00%. A much cleaner pairing without this uncompensated risk overlap with the G fund is an intermediate term corporate bond fund like VCIT SEC yield 4.77%. Which is my point. Holding the G fund allows other parts of the bond portfolio to take on more term and default risk, t...
- Thu Jul 14, 2022 12:39 pm
- Forum: Investing - Theory, News & General
- Topic: TSP G Fund rate 3.00% (Nov 2023)
- Replies: 231
- Views: 38397
Re: TSP G Fund rate 3.00% (June 2022)
The G fund has less expected returns than the other fund options. The G Fund has the same expected return as an Intermediate Treasury fund. Total Bond has about 35% corporate bonds, so has higher risk, with higher expected return. Long Treasury funds have higher risk. Short Treasury funds have lower risk. 2/3rds of Total Bond is in U.S. Govt, so that portion represents taking on uncompensated interest/duration risk relative to the G fund. SEC yield 3.41% versus G fund 3.00%. A much cleaner pairing without this uncompensated risk overlap with the G fund is an intermediate term corporate bond fund like VCIT SEC yield 4.77%. Which is my point. Holding the G fund allows other parts of the bond portfolio to take on more term and default risk, t...
- Tue Jul 12, 2022 12:34 pm
- Forum: Investing - Theory, News & General
- Topic: Winning the game and investing in Fixed Income
- Replies: 272
- Views: 37515
Re: Winning the game and investing in Fixed Income
I am surprised no one has brought up a buckets strategy if the goal is to have a simple way to manage fixed income after "winning the game". For example, something like:
Cash for one year
Bucket 1: Ladder of T-bills/CDs for next five years.
Bucket 2: Intermediate treasury index fund (or direct purchase) for next 10 years.
Bucket 3: Long term treasury index fund (or direct purchase) for remainder.
Cash for one year
Bucket 1: Ladder of T-bills/CDs for next five years.
Bucket 2: Intermediate treasury index fund (or direct purchase) for next 10 years.
Bucket 3: Long term treasury index fund (or direct purchase) for remainder.
- Sun Jul 10, 2022 12:03 pm
- Forum: Investing - Theory, News & General
- Topic: TSP G Fund rate 3.00% (Nov 2023)
- Replies: 231
- Views: 38397
Re: TSP G Fund rate 3.00% (June 2022)
The G Fund is a rare instance of a "free lunch" in that it provides a higher risk free return than comparable investments available to the general public.
The utility of the fund is it permits one to increase bond duration elsewhere, thereby increasing the overall risk-adjusted return of the bond portfolio.
The utility of the fund is it permits one to increase bond duration elsewhere, thereby increasing the overall risk-adjusted return of the bond portfolio.
- Sat Jul 09, 2022 6:35 pm
- Forum: Investing - Theory, News & General
- Topic: [Allan Roth -- Why stay at Vanguard?]
- Replies: 116
- Views: 11877
Re: Why stay at Vanguard?
The point Roth makes about trust is a good one. IIRC, Schwab had an issue with some of their bond/money market funds . Fidelity is said to rank high in customer service. It was for this reason I recommended them to a friend who was looking for a broker with good customer service as she was an ex-patriot. When she called Fidelity and specifically asked for one of their low fee funds, they essentially told her they could not do that (buy their OWN FUND) and instead tried to manipulate her into buying multiple high ER funds instead. I was surprised, to say the least. The point? Trust matters a lot. And Vanguard had an issue with their Target Date Funds. The most recently paid 6.25 million as part of settlement with Massachusetts’. What about ...
- Sat Jul 09, 2022 3:14 pm
- Forum: Investing - Theory, News & General
- Topic: [Allan Roth -- Why stay at Vanguard?]
- Replies: 116
- Views: 11877
Re: Why stay at Vanguard?
The point Roth makes about trust is a good one. IIRC, Schwab had an issue with some of their bond/money market funds . Fidelity is said to rank high in customer service. It was for this reason I recommended them to a friend who was looking for a broker with good customer service as she was an ex-patriot. When she called Fidelity and specifically asked for one of their low fee funds, they essentially told her they could not do that (buy their OWN FUND) and instead tried to manipulate her into buying multiple high ER funds instead. I was surprised, to say the least. The point? Trust matters a lot. And Vanguard had an issue with their Target Date Funds. The most recently paid 6.25 million as part of settlement with Massachusetts’. What about ...
- Sat Jul 09, 2022 2:37 pm
- Forum: Investing - Theory, News & General
- Topic: [Allan Roth -- Why stay at Vanguard?]
- Replies: 116
- Views: 11877
Re: Why stay at Vanguard?
Here is another reference to Schwab's bond problems in 2010.
https://www.investmentnews.com/sec-slap ... unds-24647
https://www.investmentnews.com/sec-slap ... unds-24647
- Sat Jul 09, 2022 2:27 pm
- Forum: Investing - Theory, News & General
- Topic: [Allan Roth -- Why stay at Vanguard?]
- Replies: 116
- Views: 11877
Re: Why stay at Vanguard?
The point Roth makes about trust is a good one.
IIRC, Schwab had an issue with some of their bond/money market funds.
Fidelity is said to rank high in customer service. It was for this reason I recommended them to a friend who was looking for a broker with good customer service as she was an ex-patriot. When she called Fidelity and specifically asked for one of their low fee funds, they essentially told her they could not do that (buy their OWN FUND) and instead tried to manipulate her into buying multiple high ER funds instead. I was surprised, to say the least.
The point? Trust matters a lot.
IIRC, Schwab had an issue with some of their bond/money market funds.
Fidelity is said to rank high in customer service. It was for this reason I recommended them to a friend who was looking for a broker with good customer service as she was an ex-patriot. When she called Fidelity and specifically asked for one of their low fee funds, they essentially told her they could not do that (buy their OWN FUND) and instead tried to manipulate her into buying multiple high ER funds instead. I was surprised, to say the least.
The point? Trust matters a lot.
- Thu Jun 30, 2022 11:12 am
- Forum: Investing - Theory, News & General
- Topic: Market Down, Dividends UP YTD
- Replies: 252
- Views: 16541
Re: Market Down, Dividends UP YTD
EarlyRetirementNow has a nice 3 part series on attempts to use yield to make things safer starting here https://earlyretirementnow.com/2019/02/13/yield-illusion-swr-series-part-29/ Whatever else you might say about ERN's conclusions, at least he is pretty clear about what he is saying/calculating/assuming. I often post this picture from that series because I feel it makes people think about what is being claimed about dividend focused investing strategies (as opposed to say total market strategies): https://i0.wp.com/earlyretirementnow.com/wp-content/uploads/2019/02/SWR-Part29-Chart01a-1.png?resize=863%2C575&ssl=1 If we are all agreeing on the right figure, dividend focused investing is just a preference. I think the arguments come whe...
- Thu Jun 30, 2022 10:51 am
- Forum: Investing - Theory, News & General
- Topic: "5 Things To Do During a Bear Market"
- Replies: 37
- Views: 5889
Re: "5 Things To Do During a Bear Market"
1. Take a nice morning walk.
2. Have a hot cup of coffee.
3. Take a nap.
4. Take a drive through the countryside.
5. Go to the park.
2. Have a hot cup of coffee.
3. Take a nap.
4. Take a drive through the countryside.
5. Go to the park.
- Fri Jun 24, 2022 3:32 pm
- Forum: Investing - Theory, News & General
- Topic: does more risk on the bond side payoff in the long run?
- Replies: 29
- Views: 2516
Re: does more risk on the bond side payoff in the long run?
Please read my post more carefully.euler wrote: ↑Fri Jun 24, 2022 10:49 amI didn't mean to pick on @NoRoboGuy, but the "bonds are for ballast not return" narrative irks me. As you say, bonds [hopefully] match or beat inflation in the long run whereas cash does not. (I had in mind the layperson's definition of cash, i.e. pieces of green paper or savings accounts.) That is a function of bond return. So, bonds are not merely for ballast.arcticpineapplecorp. wrote: ↑Thu Jun 23, 2022 9:29 pmcash loses value to inflation whereas over the long term bonds have beat inflation somewhat:
- Thu Jun 23, 2022 8:31 pm
- Forum: Investing - Theory, News & General
- Topic: does more risk on the bond side payoff in the long run?
- Replies: 29
- Views: 2516
- Thu Jun 23, 2022 5:44 pm
- Forum: Investing - Theory, News & General
- Topic: does more risk on the bond side payoff in the long run?
- Replies: 29
- Views: 2516
Re: does more risk on the bond side payoff in the long run?
This makes sense.Portfolio7 wrote: ↑Thu Jun 23, 2022 5:30 pm I can get higher returns with less standard deviation in my total portfolio by investing less in BND (or the Int Treasuries I prefer) and more in Equities... rather than trying to replace BND with junk and duration.
There's no reason to mess with junk bonds. I'm not aware of any situation where their use optimizes a portfolio.
Long term bonds can pair really well with a high equity percent, but I don't like their history. When they get slammed, it's devastating. Intermediate bonds have been more reliable for longer as an effective hedge to equities.
My 2 cents.
Take risk on the stock side. The primary role of bonds is ballast for stock volatility, not bond returns.
- Wed Jun 22, 2022 9:30 pm
- Forum: Investing - Theory, News & General
- Topic: TSP share price in Google Sheets like GoogleFinance
- Replies: 112
- Views: 34853
Re: TSP share price in Google Sheets like GoogleFinance
Apparently they are having issues. That page returns
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