Search found 6077 matches

by Call_Me_Op
Mon Jul 25, 2016 6:50 am
Forum: Investing - Theory, News & General
Topic: High Yield Junk Bonds
Replies: 34
Views: 2272

Re: High Yield Junk Bonds

Bogleheads, What are your thoughts on the high yield bond funds? More yield which means more risk. Many years ago I had a family member that invested in them that believed the dividends were everything... Technically, these are interest payments, not dividends. I tend to side with the "take yo...
by Call_Me_Op
Fri Jul 22, 2016 6:28 am
Forum: Investing - Help with Personal Investments
Topic: Would it be wise to sell my index fund??
Replies: 9
Views: 922

Re: Would it be wise to sell my index fund??

budryan wrote:I know many are speculating that a recession is coming soon, wouldn't this be a good way to maxize your return?


No! That thinking is all wrong. Back to the books.
by Call_Me_Op
Fri Jul 22, 2016 6:26 am
Forum: Investing - Help with Personal Investments
Topic: Is this prudent?
Replies: 20
Views: 1342

Re: Is this prudent?

philb wrote:Does this seem prudent?


No. Bonds are for safety.
by Call_Me_Op
Thu Jul 21, 2016 6:42 am
Forum: Investing - Theory, News & General
Topic: Why does a massive company like Coca Cola or Johnson Johnson need money from investors?
Replies: 25
Views: 2493

Re: Why does a massive company like Coca Cola or Johnson Johnson need money from investors?

FRx wrote:It's probably too obvious of a question. But I was wondering, these mega-corps make a ton of income. Why do they need extra capital from investors?


Hopefully, after reading the replies, you have a better understanding of how stocks work.
by Call_Me_Op
Thu Jul 21, 2016 6:40 am
Forum: Investing - Help with Personal Investments
Topic: Just got back from Europe...ready to sell my International...
Replies: 82
Views: 9304

Re: Just got back from Europe...ready to sell my International...

Ok. Hear me out first...I just got back from Europe a couple of weeks ago and I am not feeling real good about the economic prospects there. I have been disciplined for years with my BH portfolio. I am 50-50 with 33% of equities in Vanguard Total International Stock Index Fund (VGTSX). Given the ec...
by Call_Me_Op
Tue Jul 19, 2016 5:48 am
Forum: Investing - Theory, News & General
Topic: Anti-Boglehead Claims There is a Better Way to Invest
Replies: 74
Views: 7706

Re: Anti-Boglehead Claims There is a Better Way to Invest

Personally, I've always felt the "small cap value tilt" was a product of backwards data mining. If there was any past overperformance, that advantage was likely arbitraged away when everyone started talking about it. By that thinking, the advantage of stocks over bonds should be "arb...
by Call_Me_Op
Tue Jul 19, 2016 5:46 am
Forum: Investing - Theory, News & General
Topic: Anti-Boglehead Claims There is a Better Way to Invest
Replies: 74
Views: 7706

Re: Anti-Boglehead Claims There is a Better Way to Invest

Paul Merriman is not anti-Boglehead.He just believes that you are likely to do better (over the long term) than the "total market index" by exploiting risk factors (small and value). I happen to agree with him, and I am a Boglehead.
by Call_Me_Op
Sun Jul 17, 2016 5:55 am
Forum: Personal Consumer Issues
Topic: Mother was victim of online virus scam - How can she recover the money she paid?
Replies: 56
Views: 5054

Re: Mother was victim of online virus scam - How can she recover the money she paid?

Hi student,

Understood. I was essentially complaining that such humanitarian factors should more often enter into these decisions on the part of financial institutions. Those who prey upon the elderly are among the very the lowest of the low.
by Call_Me_Op
Sun Jul 17, 2016 5:40 am
Forum: Personal Consumer Issues
Topic: Mother was victim of online virus scam - How can she recover the money she paid?
Replies: 56
Views: 5054

Re: Mother was victim of online virus scam - How can she recover the money she paid?

student wrote: Even if they took control, she authorized the transaction over the phone when the bank called her, I see no reason for the bank to reverse the charge.


How about compassion and common decency?
by Call_Me_Op
Sat Jul 16, 2016 7:27 am
Forum: Investing - Theory, News & General
Topic: "John Bogle Gets the Last Laugh"
Replies: 8
Views: 2154

Re: "John Bogle Gets the Last Laugh"

Thanks Taylor. Great article!
by Call_Me_Op
Sat Jul 16, 2016 7:20 am
Forum: Investing - Theory, News & General
Topic: Stocks at all time high?
Replies: 34
Views: 3910

Re: Stocks at all time high?

Look at a long-term graph of the stock market and tell me what point in time was a bad time to buy.
by Call_Me_Op
Fri Jul 15, 2016 4:40 pm
Forum: Investing - Theory, News & General
Topic: "Pokemon Go" -- should buying Nintendo have been obvious?
Replies: 88
Views: 4469

Re: "Pokemon Go" -- should buying Nintendo have been obvious?

If "all known information" was already baked into the $18 price on July 5, then why did the stock double in 10 days? Is the company really twice as profitable today as it was just last week? You have a misunderstanding of how stocks work. The price does not follow earnings in lock step. T...
by Call_Me_Op
Fri Jul 15, 2016 6:44 am
Forum: Personal Finance (Not Investing)
Topic: Avoiding Inheriting Parents' Financial Mess / Debts
Replies: 35
Views: 2923

Re: Avoiding Inheriting Parents' Financial Mess / Debts

There is something that seems a bit unfair about this, but as I understand, at least a significant amount of debt does get transferred from parents to children in these situations. I doubt that your understanding is correct. The parents' estate, to the extent that it has any equity, would be liable...
by Call_Me_Op
Thu Jul 14, 2016 6:24 am
Forum: Investing - Theory, News & General
Topic: The age old question of Fido or VG
Replies: 12
Views: 1069

Re: The age old question of Fido or VG

If you are a do-it-yourslefer with your investments, it's hard to beat Fidelity. Where I become concerned is as I age and my faculties become less robust. I fear I may fall victim to one of Fidelity's periodic sales jobs and end-up with a high-cost/risky investment. My mother is in her 80's and I fe...
by Call_Me_Op
Thu Jul 14, 2016 5:53 am
Forum: Personal Finance (Not Investing)
Topic: Boss cutting salary in response to employee not doing "job"
Replies: 78
Views: 8591

Re: Boss cutting salary in response to employee not doing "job"

In my view, the boss is paying her to perform duties and is willing to pay her for those duties. If she is not interested in performing those duties, she should look for another job. I think causing problems for the boss will back-fire.
by Call_Me_Op
Thu Jul 14, 2016 5:44 am
Forum: Investing - Theory, News & General
Topic: Wade Pfau: What Is The Sustainable Spending Rate For Retirees In 2016?
Replies: 29
Views: 3636

Re: Wade Pfau: What Is The Sustainable Spending Rate For Retirees In 2016?

Thanks #cruncher. Yes, I was under-generalizing in my statement. I was contrasting against starting with a specific percentage and then adjusting upwards for inflation each year. That approach disconnects your withdrawals from your balance, and that's when you can run out of money.
by Call_Me_Op
Wed Jul 13, 2016 8:23 am
Forum: Investing - Theory, News & General
Topic: Wade Pfau: What Is The Sustainable Spending Rate For Retirees In 2016?
Replies: 29
Views: 3636

Re: Wade Pfau: What Is The Sustainable Spending Rate For Retirees In 2016?

"safe" = guaranteed sustainable "sustainable" = sustainable Essentially they are the same thing, because I doubt that anyone advocating "safe withdrawal rates" ever meant to guarantee them. The only way to guarantee that your money will last is to withdraw a fixed perc...
by Call_Me_Op
Wed Jul 13, 2016 7:55 am
Forum: Investing - Theory, News & General
Topic: Wade Pfau: What Is The Sustainable Spending Rate For Retirees In 2016?
Replies: 29
Views: 3636

Re: Wade Pfau: What Is The Sustainable Spending Rate For Retirees In 2016?

"safe" = guaranteed sustainable "sustainable" = sustainable Essentially they are the same thing, because I doubt that anyone advocating "safe withdrawal rates" ever meant to guarantee them. The only way to guarantee that your money will last is to withdraw a fixed perc...
by Call_Me_Op
Wed Jul 13, 2016 6:39 am
Forum: Investing - Theory, News & General
Topic: Maintaining 3-10 yrs expenses in fixed income in retirement rather than set %
Replies: 107
Views: 7438

Re: Maintaining 3-10 yrs expenses in fixed income in retirement rather than set %

One shouldn't be changing their FI allocation based on current market conditions unless your name is Gross. (Pun intended. :D ) Why not? There is a risk-reward trade-off that needs to be made with any investment. I might buy a 20 year treasury if its real rate were 4%. When its real rate is 0%, and...
by Call_Me_Op
Tue Jul 12, 2016 6:26 am
Forum: Investing - Theory, News & General
Topic: Diversification sanity check
Replies: 20
Views: 1527

Re: Diversification sanity check

mcs wrote:I really like the idea behind the 3-fund portfolio (buying the whole market maximizes the expectation of the future returns)...


What does that mean? Do you have a reference for this?
by Call_Me_Op
Tue Jul 12, 2016 5:40 am
Forum: Investing - Help with Personal Investments
Topic: Fidelity advisory service fee issue
Replies: 39
Views: 2628

Re: Fidelity advisory service fee issue

The overall fee (ER + advisor fee) would still drop from 1.1% to 0.8%, but it feels pretty sketchy for them to do something like that. If we kept our previously negotiated advisor fee the overall fee would be 0.6%, but they say they will not allow this (no clear reason given). I can give you the re...
by Call_Me_Op
Mon Jul 11, 2016 12:25 pm
Forum: Investing - Theory, News & General
Topic: Maintaining 3-10 yrs expenses in fixed income in retirement rather than set %
Replies: 107
Views: 7438

Re: Maintaining 3-10 yrs expenses in fixed income in retirement rather than set %

Is the contention here that putting this large amount of money in so-called "cash" is different from putting the large amount of money in so-called bonds? Can someone please explain? In today's rate environment, I think it makes little sense to fundamentally distinguish between cash, ST-b...
by Call_Me_Op
Mon Jul 11, 2016 6:56 am
Forum: Investing - Theory, News & General
Topic: "Jane Bryant Quinn: Plan for a long retirement and maybe even a 101st birthday party."
Replies: 66
Views: 6201

Re: "Jane Bryant Quinn: Plan for a long retirement and maybe even a 101st birthday party."

I plan for an indefinite lifespan. I might live to 100, I might live to 200, or 1000. It seems quite likely (but not a sure thing) that aging will be cured in my lifetime (I'm 32), and if that happens, all bets are off. There are lots of smart people working on it, and the science is progressing ra...
by Call_Me_Op
Sat Jul 09, 2016 6:58 pm
Forum: Investing - Theory, News & General
Topic: S+P 500 is not very diversified
Replies: 77
Views: 5328

Re: S+P 500 is not very diversified

Seems to me that if you want to own "the market", you own the cap-weighted index. Is this diversified? That is strictly a matter of definition.
by Call_Me_Op
Sat Jul 09, 2016 6:39 am
Forum: Investing - Theory, News & General
Topic: Long term bond funds
Replies: 26
Views: 2228

Re: Long term bond funds

My question is why not invest in long term bond funds just because they have a higher yield than intermediate or short term ones? I understand that if you invest in individual long term bonds, you generally cannot get your money back until they mature in 10-30 years from now. But when you're in a l...
by Call_Me_Op
Fri Jul 08, 2016 6:36 am
Forum: Personal Finance (Not Investing)
Topic: Buy vs rent Boston area?
Replies: 35
Views: 2816

Re: Buy vs rent Boston area?

early 30s couple with ~210k HHI, ~400k assets (300k of which is in taxable) no debt At our current rate each year we'll save about 60k/year. Our rent is 1800 and includes utilities. panchilly, If you can find a house for 200K, then buy. If not, don't. You won't find anything close to 200K in that a...
by Call_Me_Op
Fri Jul 08, 2016 6:33 am
Forum: Investing - Help with Personal Investments
Topic: How to find a similar Fund without a Load?
Replies: 10
Views: 654

Re: How to find a similar Fund without a Load?

TheQuestionGuy wrote:Ok, I like beating 92% and being 15% less volatile.

So whats the problem?


Well, one problem is that SEC warning you hear about past returns.
by Call_Me_Op
Fri Jul 08, 2016 5:49 am
Forum: Investing - Help with Personal Investments
Topic: Bond Market Bubble
Replies: 43
Views: 3584

Re: Bond Market Bubble

Flav wrote: I do not want to be guilty of attempting to time the market, but I do feel that bonds are overpriced at this time...


"Overpriced" relative to what? The bond market as a whole (by definition) believes that they are priced where they should be.
by Call_Me_Op
Thu Jul 07, 2016 6:53 am
Forum: Investing - Help with Personal Investments
Topic: International Stock has hurt me
Replies: 15
Views: 2438

Re: International Stock has hurt me

I looked tonight at a couple of accounts that I have where I had small 5 in International stock. It has hurt me but I'm up some from where stock market has closed. Market is up from when I did some checking and I was considerably more money then now with market close in numbers of recent days. I ha...
by Call_Me_Op
Wed Jul 06, 2016 6:16 am
Forum: Personal Finance (Not Investing)
Topic: Townhouse VS Stand Alone House ?
Replies: 8
Views: 786

Re: Townhouse VS Stand Alone House ?

I think you should ignore the financial aspect of this choice on focus on lifestyle implications. If you detest outside work, the townhouse is for you. If you enjoy it, the "stand-alone house" is a better choice. While you can still hire others to do outside work on the stand-alone house, ...
by Call_Me_Op
Mon Jul 04, 2016 9:15 am
Forum: Personal Consumer Issues
Topic: Condo vs Townhouse Living
Replies: 35
Views: 4315

Re: Condo vs Townhouse Living

stlutz wrote:It has to be extremely quiet in my townhouse for me to hear anything from my neighbors. But I have quiet neighbors too.


You are lucky.
by Call_Me_Op
Mon Jul 04, 2016 5:38 am
Forum: Investing - Theory, News & General
Topic: Credit Risk Premium
Replies: 17
Views: 1064

Re: Credit Risk Premium

For me, I'd mostly consider adding corporates mostly as a market-timing move (i.e. doing so when there is a clear advantage), which is the same thing I do with TIPS. The following is from p. 260 of William Bernstein's "The Four Pillars of Investing": 'The wise investor pays attention to t...
by Call_Me_Op
Mon Jul 04, 2016 5:31 am
Forum: Local Chapters and Bogleheads Community
Topic: The Declaration of Independence
Replies: 44
Views: 3296

Re: The Declaration of Independence

Same to you Taylor. You are an inspiration to us all.
by Call_Me_Op
Mon Jul 04, 2016 5:30 am
Forum: Investing - Help with Personal Investments
Topic: Small Cap Value question (chasing the past?)
Replies: 13
Views: 1266

Re: Small Cap Value question (chasing the past?)

livesoft wrote:To answer the question about whether outperformance is only in the past, take a look at the YTD performance of two funds: Vanguard S&P500 index fund and Vanguard small-cap value index fund.


I am quite sure you aware that this is meaningless.
by Call_Me_Op
Sun Jul 03, 2016 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: Muni funds vs. ladders in a withdrawal strategy
Replies: 5
Views: 688

Re: Muni funds vs. ladders in a withdrawal strategy

Should I be wary that fluctuating interest rates may mean selling fund assets at a loss vs. laddering where the payoff at maturity is relatively certain? Any differences between a rolling bond ladder and bond mutual fund (holding similar securities and having similar average duration) are very subt...
by Call_Me_Op
Sun Jul 03, 2016 11:54 am
Forum: Investing - Theory, News & General
Topic: Fixed 60/40 AA in retirement
Replies: 105
Views: 9002

Re: Fixed 60/40 AA in retirement

In my view, 60/40 may be appropriate for someone who has barely enough, and needs to take that amount of risk to have a reasonable probability of portfolio survival. But if I only need a 2%-3% withdrawal rate, I would go with a more conservative portfolio leading-up to and in retirement.
by Call_Me_Op
Sun Jul 03, 2016 7:06 am
Forum: Investing - Theory, News & General
Topic: dividend paying stocks good substitutes for safe bonds (NOT)
Replies: 102
Views: 7948

Re: dividend paying stocks good substitutes for safe bonds (NOT)

Hi Larry,

Are you still recommending an average duration of around 5 years for safe bonds?
by Call_Me_Op
Sun Jul 03, 2016 6:52 am
Forum: Investing - Theory, News & General
Topic: Fidelity lowers expense ratio of some index funds
Replies: 117
Views: 8414

Re: Fidelity Cutting Fees on Index Funds

Also, if Fidelity is charging less than half of what the index fund costs to run, then (a) they are not running it as efficiently as Vanguard, and (b) they are making up for the loss by luring people into products to which bogleheads might well object. They wouldn't have the index funds unless that...
by Call_Me_Op
Sat Jul 02, 2016 6:05 am
Forum: Investing - Theory, News & General
Topic: R.I.P. CIT Bank 3.25% brokered CD (called)
Replies: 49
Views: 4605

Re: R.I.P. CIT Bank 3.25% brokered CD (called)

abuss368 wrote:David Swensen always recommended Treasuries and one of the reasons was no call risk.


You can get brokered CD's with no call risk as well; you just have to choose those ones, and accept the slightly lower interest rate.
by Call_Me_Op
Fri Jul 01, 2016 6:53 am
Forum: Local Chapters and Bogleheads Community
Topic: Abuss368 has 10,000 posts!!
Replies: 29
Views: 1747

Re: Abuss368 has 10,000 posts!!

I can condense them for you: Have you had enough of TIPS yet, and Thank You Jack Bogle! :)

In seriousness, he is a valuable member of the Bogleheads team.
by Call_Me_Op
Fri Jul 01, 2016 6:48 am
Forum: Investing - Help with Personal Investments
Topic: Retired: Are we on track??
Replies: 6
Views: 1364

Re: Retired: Are we on track??

Your portfolio seems reasonable - simple, diversified, balanced, and low-cost. As long as you limit your spending from it to no more than about 4% per year ($14k/yr, today - but that includes the advisor's fee), you should be OK.
by Call_Me_Op
Fri Jul 01, 2016 6:37 am
Forum: Investing - Theory, News & General
Topic: Fidelity lowers expense ratio of some index funds
Replies: 117
Views: 8414

Re: Fidelity lowers expense ratio of some index funds

jwillis77373 wrote:I used to get regular once a year "Check up calls" from Fidelity .. which were obviously [Sales] calls to try and "diversify" me.


I only get them when they switch advisors and the new advisor is apparently not aware that I am incorrigible.
by Call_Me_Op
Fri Jul 01, 2016 6:35 am
Forum: Investing - Theory, News & General
Topic: Fidelity lowers expense ratio of some index funds
Replies: 117
Views: 8414

Re: Fidelity Cutting Fees on Index Funds

I have an account at Fidelity and I like them. But I continue to be suspicious as to how long the fee reductions will last. Probably as long as Vanguard exists. After all, this move is in response to competition from the likes of Vanguard. Not necessarily so. Financial companies have a history of d...
by Call_Me_Op
Fri Jul 01, 2016 6:27 am
Forum: Investing - Theory, News & General
Topic: R.I.P. CIT Bank 3.25% brokered CD (called)
Replies: 49
Views: 4605

Re: R.I.P. CIT Bank 3.25% brokered CD (called)

Brokered CDs seem quite complicated compared to traditional back CDs, unfortunately. It's keeping me from having any at present, since I don't understand them I don't think they are very complicated at all. They are basically an FDIC-insured bond. You do have to examine the features before buying, ...
by Call_Me_Op
Thu Jun 30, 2016 5:49 am
Forum: Investing - Theory, News & General
Topic: Total return vs Liability driven investing
Replies: 7
Views: 633

Re: Total return vs Liability driven investing

You can construct a portfolio that is both a total return and liability-driven portfolio. One way to do this is to employ a total return portfolio consisting of SAFE and RISKY assets (e.g., take your risk on the equity side), and instituting a rule that the SAFE portion cannot fall below a floor. Th...
by Call_Me_Op
Wed Jun 29, 2016 9:02 am
Forum: Investing - Theory, News & General
Topic: Fidelity lowers expense ratio of some index funds
Replies: 117
Views: 8414

Re: Fidelity Cutting Fees on Index Funds

nvboglehead wrote:I have an account at Fidelity and I like them. But I continue to be suspicious as to how long the fee reductions will last.


Probably as long as Vanguard exists. After all, this move is in response to competition from the likes of Vanguard.
by Call_Me_Op
Wed Jun 29, 2016 6:22 am
Forum: Investing - Help with Personal Investments
Topic: Just bought into a Target Retirement Fund 2060. Now what?
Replies: 22
Views: 1990

Re: Just bought into a Target Retirement Fund 2060. Now what?

qwe7791 wrote: I'd prefer not to hold anything I don't understand such as international stocks and bonds...


Do you understand domestic stocks and bonds? The principles are the same.
by Call_Me_Op
Mon Jun 27, 2016 1:34 pm
Forum: Investing - Theory, News & General
Topic: One thing I have always wondered..why should investors buy and hold when a stock/bond/fund keeps dropping and dropping?
Replies: 74
Views: 5930

Re: One thing I have always wondered..why should investors buy and hold when a stock/bond/fund keeps dropping and droppi

Because it could turn around and start going up at any point in time. In order to be fully invested at the time of the turn-around, the most reliable approach is to stay invested.
by Call_Me_Op
Mon Jun 27, 2016 5:54 am
Forum: Investing - Theory, News & General
Topic: Bond Diversification w/ Slice & Dice
Replies: 11
Views: 1247

Re: Bond Diversification w/ Slice & Dice

Risky investments are "sliced and diced" in large part to reduce risk. With high quality fixed-income, slicing and dicing is largely a waste of time and often increases risk (because it tempts you to add junk bonds).
by Call_Me_Op
Sun Jun 26, 2016 1:37 pm
Forum: Investing - Theory, News & General
Topic: Strategies for Refilling Cash Holdings (Bucket 1) Over Time
Replies: 25
Views: 2099

Re: Strategies for Refilling Cash Holdings (Bucket 1) Over Time

This doesn't sound hard. For example, at the end of each year, examine your main portfolio and determine how you will fill the cash bucket. If stocks are up, skim from there. If bonds are up, skim from there. Or skim from both. The idea is to keep your stock/bond mix. Now, I employ an approach I thi...

Go to advanced search