Search found 6692 matches

by Doc
Mon Jan 23, 2017 4:00 pm
Forum: Investing - Theory, News & General
Topic: Upgrade button on Vanguard IRA
Replies: 20
Views: 2226

Re: Upgrade button on Vanguard IRA

Strange... The first page of my December statement on my upgraded account(s) is titled "December 31, 2016, year-to-date statement" It's followed by a summary of all my upgraded brokerage accounts and the changes in balance from 31-Dec-2015 to 31-Dec-2016 That's followed by several pages o...
by Doc
Mon Jan 23, 2017 1:37 pm
Forum: Investing - Theory, News & General
Topic: Vanguard 1099s available - Other companies just as good for sending 1099s???
Replies: 45
Views: 2869

Re: Vanguard 1099s available - Other companies just as good for sending 1099s???

boglesmind wrote:Filing amended returns due to corrected 1099s is an unnecessary additional work.

I read somewhere that the IRS regs say "should" file a corrected return not "must". I have a vague recollection that the wording was from an actual IRS site. :beer
by Doc
Mon Jan 23, 2017 1:33 pm
Forum: Investing - Theory, News & General
Topic: 2016 Relative Tax Efficiency
Replies: 16
Views: 1178

Re: 2016 Relative Tax Efficiency

The way I estimate this cost on the wiki page Tax-efficient fund placement is to assume that after-tax dividends are reinvested, the fund will be sold after N years, and tax will be paid at the appropriate rate. Several years ago I "checked" into David's spreadsheet in detail. Except for ...
by Doc
Mon Jan 23, 2017 1:19 pm
Forum: Investing - Theory, News & General
Topic: Upgrade button on Vanguard IRA
Replies: 20
Views: 2226

Re: Upgrade button on Vanguard IRA

It appears that Vanguard has been converting (or "upgrading") standard mutual fund accounts to brokerage accounts. Is Vanguard provided any critical feedback so they can plan to improve the experience and the account features? Yeh. Will Vanguard eventually be forcing all investors to &quo...
by Doc
Sun Jan 22, 2017 4:34 pm
Forum: Investing - Theory, News & General
Topic: 2016 Relative Tax Efficiency
Replies: 16
Views: 1178

Re: 2016 Relative Tax Efficiency

Agreed. In particular, stock and bond tax costs are not directly comparable. A stock fund has the additional tax cost of the capital-gains tax when you sell it; this may be zero if you donate it to charity or leave it to your heirs, or a moderate extra cost if you sell years in the future. A bond f...
by Doc
Sun Jan 22, 2017 2:58 pm
Forum: Investing - Theory, News & General
Topic: Vanguard 1099s available - Other companies just as good for sending 1099s???
Replies: 45
Views: 2869

Re: Vanguard 1099s available - Other companies just as good for sending 1099s???

Vanguard sent an email a few days back alerting customers to this. The good news is that starting from 2017 tax-year we can expect to get a single consolidated 1099 statement from Vanguard Brokerage - which will include 1099-Int, 1099-Div and 1099-B. This will also obviate the need for listing divi...
by Doc
Sun Jan 22, 2017 10:36 am
Forum: Investing - Theory, News & General
Topic: Vanguard 1099s available - Other companies just as good for sending 1099s???
Replies: 45
Views: 2869

Re: Vanguard 1099s available - Other companies just as good for sending 1099s???

Mutual fund only accounts usually have the data available by the end if December with the exception of REIT funds as previously noted. Brokerage fund account don't usually have the necessary data until January 31 of the following year because many January distributions from companies are taxable in ...
by Doc
Sat Jan 21, 2017 11:53 am
Forum: Investing - Theory, News & General
Topic: Vanguard 1099s available - Other companies just as good for sending 1099s???
Replies: 45
Views: 2869

Re: Vanguard 1099s available - Other companies just as good for sending 1099s???

I normally wait until mid-August when it is too hot to do anything outside. I have done a pro-forma return for 2018 and 2023 though. I needed those in December to make some decisions. I usually am very close to the exact number by Christmas week since it's often to cold to go out and play. The one ...
by Doc
Sat Jan 21, 2017 11:43 am
Forum: Investing - Theory, News & General
Topic: Mathematics of international asset allocation
Replies: 43
Views: 3782

Re: Mathematics of international asset allocation

I think it is quite reasonable to assume that on a risk adjusted basis domestic and international have the same ex-ante expected return. Given the differences in governmental/investment policies between US and foreign I'm not sure this is a a good assumption. Thinking about Eurozone for example you...
by Doc
Thu Jan 19, 2017 4:58 pm
Forum: Investing - Theory, News & General
Topic: Should you be worried about losing money in bonds?
Replies: 14
Views: 2590

Re: Should you be worried about losing money in bonds?

No, you should not worry about losing money in bonds
Alfred E. Neuman wrote:What, me worry?

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by Doc
Thu Jan 19, 2017 1:59 pm
Forum: Investing - Theory, News & General
Topic: An index isn't an index isn't an index...
Replies: 23
Views: 2403

Re: An index isn't an index isn't an index...

A likely candidate for return dispersion vs. other providers: CRSP also has designed a securities migration approach, called packeting, which lowers turnover and minimizes transaction costs. Packeting allows holdings to be shared between two indexes. A company with a changing market capitalization ...
by Doc
Thu Jan 19, 2017 10:48 am
Forum: Investing - Theory, News & General
Topic: Vanguard's new "account overview" page... BOO!
Replies: 98
Views: 8364

Re: Vanguard's new "account overview" page... BOO!

I don't have no stinking "outside investments" page to edit. :? For me, it is not a separate page. It is below my Vanguard accounts on the "Balances and holdings" page. But maybe you are just saying you have never added any outside investments ever, so you don't have any. There ...
by Doc
Thu Jan 19, 2017 10:02 am
Forum: Investing - Theory, News & General
Topic: Vanguard's new "account overview" page... BOO!
Replies: 98
Views: 8364

Re: Vanguard's new "account overview" page... BOO!

that's how I used to do it but there is no edit button available now. http://i65.tinypic.com/2u7rg5w.jpg " Edit holdings " is not really a button. Maybe your browser has a problem or is an outdated version? I don't have no stinking "outside investments" page to edit. :?
by Doc
Thu Jan 19, 2017 9:47 am
Forum: Investing - Theory, News & General
Topic: Rethinking Mutual Fund Pricing, Entirely
Replies: 1
Views: 504

Rethinking Mutual Fund Pricing, Entirely

The SEC's acceptance of "clean shares" could usher in a simpler fund-pricing scheme. http://news.morningstar.com/articlenet/article.aspx?id=788545 (This is premium content. I think there are workarounds. Maybe @ TRowe Price or with a trial subscrition. Or just try Googleling the title. Th...
by Doc
Thu Jan 19, 2017 7:46 am
Forum: Investing - Theory, News & General
Topic: An index isn't an index isn't an index...
Replies: 23
Views: 2403

Re: An index isn't an index isn't an index...

IVOV average trading volume only 32600 shares. Bye bye?
by Doc
Wed Jan 18, 2017 6:02 pm
Forum: Investing - Theory, News & General
Topic: FED Raises Rates - Sky Falls! Bond Prices are UP!
Replies: 29
Views: 5486

Re: FED Raises Rates - Sky Falls! Bond Prices are UP!

See "Why did my fund drop so much in value?" Year end cap gains distribution? A better indicator of the priced in effect might be the yield on the five year T-notes. I was using total return from Dec 9 open to Jan 13 close, not share price changes. That is as good of an indication as any ...
by Doc
Wed Jan 18, 2017 5:55 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's new "account overview" page... BOO!
Replies: 98
Views: 8364

Re: Vanguard's new "account overview" page... BOO!

Has anyone noticed the new matching "simplified" mutual fund purchase page? You can still click through to the "full"/old page for anything complicated, but it shows that they're heading the same design direction with the whole site: VERY LARGE AND WHITE. Yep. Very irritating to...
by Doc
Wed Jan 18, 2017 1:49 pm
Forum: Investing - Theory, News & General
Topic: Mathematics of international asset allocation
Replies: 43
Views: 3782

Re: Mathematics of international asset allocation

What is wrong with this model? coviE = expected annual covariance between international return and exchange rate return corrDI = expected correlation between real domestic and real international returns US large cap and foreign large cap are mostly made up of international large cap. They all swim ...
by Doc
Wed Jan 18, 2017 8:13 am
Forum: Investing - Theory, News & General
Topic: FED Raises Rates - Sky Falls! Bond Prices are UP!
Replies: 29
Views: 5486

Re: FED Raises Rates - Sky Falls! Bond Prices are UP!

What's interesting to me is that folks on this forum state the market has things "priced in." It seemed the rate increase would have been priced in yesterday, yet markets are down today. As of latest market close, vsigx (intermediate treasuries) is up 13 bp since Dec 9, the day of the Fed...
by Doc
Fri Jan 13, 2017 6:55 am
Forum: Investing - Theory, News & General
Topic: institutional herding in corporate bonds and liquidity issues-beware ETFs in this space
Replies: 59
Views: 3438

Re: institutional herding in corporate bonds and liquidity issues-beware ETFs in this space

Nisiprius I would say not on two fronts, First BBB is way too low, especially that's an average, so many will be below that . Second duration IMO is too long entailing too much credit and call risk (though that isn't much of risk today, but I'm giving general advice) I would stick if HAD to say som...
by Doc
Fri Jan 13, 2017 6:30 am
Forum: Investing - Theory, News & General
Topic: Fidelity cuts index fund fees (but returns are lower).
Replies: 47
Views: 5102

Re: Fidelity cuts index fund fees (but returns are lower).

TheTimeLord wrote:Why did you type my name on blaugranamd post?

Huh! I did just what I did here. Highlighted the text and hit the " icon. Or at least that was my intent.

Sorry.

I edited prior post.
by Doc
Thu Jan 12, 2017 6:01 pm
Forum: Investing - Theory, News & General
Topic: Fidelity cuts index fund fees (but returns are lower).
Replies: 47
Views: 5102

Re: Fidelity cuts index fund fees (but returns are lower).

The point is there's no reason to think that FTIPX/VTIAX will be substantially different given the exact same underlying index. They don't have the same index. VFITX: FTSE Global all cap ex US FTIPX: MSCI ACWI ex US IMI (note the IMI is investable market index. There is another version without the ...
by Doc
Tue Jan 10, 2017 3:48 pm
Forum: Investing - Theory, News & General
Topic: Fidelity cuts index fund fees (but returns are lower).
Replies: 47
Views: 5102

Re: Fidelity cuts index fund fees (but returns are lower).

@informal guide We all are susceptible to "bias of the familiar". If you live in NYC you think almost everyone is a Democrat and if you live in Idaho you think everyone carries a gun. That example is not a very big deal because those those people don't talk to each other much at all. But w...
by Doc
Tue Jan 10, 2017 10:02 am
Forum: Investing - Theory, News & General
Topic: Fidelity cuts index fund fees (but returns are lower).
Replies: 47
Views: 5102

Re: Fidelity cuts index fund fees (but returns are lower).

1/10/2017 9:00 AM Not necessarily very relevant in taxable either. Not distributing LTCG means the share price did not go down so you will have the LTCG when you sell. So it is just a deferred tax not a tax savings in the long run except if your tax rate goes way down before you sell or bequeath the...
by Doc
Tue Jan 10, 2017 7:25 am
Forum: Investing - Theory, News & General
Topic: Fidelity cuts index fund fees (but returns are lower).
Replies: 47
Views: 5102

Re: Fidelity cuts index fund fees (but returns are lower).

I have owned FSTVX in a taxable account for years. Student points out that 2016 performance net of expense ratios versus VTSAX are identical (12.66%). However, for those of us with taxable accounts, Fidelity has distributed taxable capital gains for each of the last two years at an annualized rate ...
by Doc
Mon Jan 09, 2017 8:48 am
Forum: Investing - Theory, News & General
Topic: Large cash allocation in Fidelity's index funds
Replies: 13
Views: 1410

Re: Large cash allocation in Fidelity's index funds

From the description I would assume that the lending is for short term. The lender get cash collateral, reimbursement for divs and the stock returned at the end of the term. So the fund gets all the benefits of the underlying stock except the divs are cash and not qualified divs plus whatever they e...
by Doc
Sun Jan 08, 2017 8:56 am
Forum: Investing - Theory, News & General
Topic: Large cash allocation in Fidelity's index funds
Replies: 13
Views: 1410

Re: Large cash allocation in Fidelity's index funds

Why is M* odd? Different fund companies have their own presentations/interpretations of their own data and sometimes of other firms data. M* takes raw data provided by the fund companies and presents the data for all of them on the same basis. You may think that Company A has a presentation of its d...
by Doc
Sun Jan 08, 2017 7:03 am
Forum: Investing - Theory, News & General
Topic: Large cash allocation in Fidelity's index funds
Replies: 13
Views: 1410

Re: Large cash allocation in Fidelity's index funds

M* treats any asset with less than a one year term as cash. Hence derivatives even equities show as cash for M* but the fund company might record it differently. Also M* ignores negative positions and reallocates back to 100%. This makes one able to compare different fond companies on a consistent b...
by Doc
Sat Jan 07, 2017 11:00 am
Forum: Investing - Theory, News & General
Topic: Can someone explain Vanguard's higher turnover rates vs Index Funds?
Replies: 22
Views: 1946

Re: Can someone explain Vanguard's higher turnover rates vs Index Funds?

I conclude this fund has been managed for many years with a maturity shorter than the index and the managers have not been betting interest rates would increase recently. Whether you think this is good or bad depends on you, but there doesn't seem to be major shifts in plan I don't think anyone sai...
by Doc
Fri Jan 06, 2017 5:41 pm
Forum: Investing - Theory, News & General
Topic: Can someone explain Vanguard's higher turnover rates vs Index Funds?
Replies: 22
Views: 1946

Re: Can someone explain Vanguard's higher turnover rates vs Index Funds?

Intermediate Treasury has a high correlation with its benchmark but a much lower beta (according to the July semi-annual report). The manager's comments make clear that it is managed to have a duration structurally shorter than the benchmark, so this isn't just a bet on interest rate increases. An ...
by Doc
Fri Jan 06, 2017 4:25 pm
Forum: Investing - Theory, News & General
Topic: Can someone explain Vanguard's higher turnover rates vs Index Funds?
Replies: 22
Views: 1946

Re: Can someone explain Vanguard's higher turnover rates vs Index Funds?

Bond Index funds also have (to me) surprisingly high turnover. The funds we are discussing are basically 3-10 yr funds. If they held a ladder bought at 10 yrs and sold at 3 they would be held for only 7 years not ten - I think that makes the turnover 3/7 or 43%. But they don't hold a ladder. The Tr...
by Doc
Fri Jan 06, 2017 4:03 pm
Forum: Investing - Theory, News & General
Topic: 3 Fund question with charles schwab
Replies: 24
Views: 1898

Re: 3 Fund question with charles schwab

retiredjg wrote:How is the average investor to know?

Not to worry, most Bolgleheads were born in Lake Wobegone.
by Doc
Fri Jan 06, 2017 12:58 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Customer Service
Replies: 192
Views: 17170

Re: Vanguard Customer Service

Yeah and currency difference can be large. Yes, but a lot of funds hedge it away. I took a short look at Vg's prospectus and couldn't decide what their currency hedging purpose is. They do hedge currency but I'm not sure exactly how. If you are interested take a look at Tweedy Browne's funds. They ...
by Doc
Fri Jan 06, 2017 12:43 pm
Forum: Investing - Theory, News & General
Topic: 3 Fund question with charles schwab
Replies: 24
Views: 1898

Re: 3 Fund question with charles schwab

OK, but if you buy that index fund and it changes its index every few years are you any wiser for choosing that fund just because it has the term "index" in its name. I think so. I doubt that you think so. :happy The funds may perform essentially the same, but one has what I'd call "...
by Doc
Fri Jan 06, 2017 8:34 am
Forum: Investing - Theory, News & General
Topic: 3 Fund question with charles schwab
Replies: 24
Views: 1898

Re: 3 Fund question with charles schwab

Difference without meaning! When I brought this up, I didn't mean to imply that the Schwab fund is "bad" or should be avoided by investors. However, I do think the difference has an important meaning to a person who wants to use index funds and buys that one thinking it is an index fund.....
by Doc
Fri Jan 06, 2017 8:18 am
Forum: Investing - Theory, News & General
Topic: 3 Fund question with charles schwab
Replies: 24
Views: 1898

Re: 3 Fund question with charles schwab

Difference without meaning. Only if you fail to recognize it. In the first, there are valid reasons for sampling (too many) and not holding only things in the index--holdings are added and removed and so it makes sense to add early or delaye late to avoid people timing your required trades. In the ...
by Doc
Thu Jan 05, 2017 12:31 pm
Forum: Investing - Theory, News & General
Topic: 3 Fund question with charles schwab
Replies: 24
Views: 1898

Re: 3 Fund question with charles schwab

Principal Investment Strategies The Fund employs an indexing investment approach designed to track the performance of the Barclays U.S. Aggregate Float Adjusted Index. This Index represents a wide spectrum of public, investment-grade, taxable, fixed income securities in the United States—including ...
by Doc
Thu Jan 05, 2017 9:16 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Customer Service
Replies: 192
Views: 17170

Re: Vanguard Customer Service

The difficulty (if you will) at Schwab is that their international funds are broken into large developed (top 87.5% of the market), small developed (bottom 12.5% of the market), and emerging (top 87.5% of the market), so you need three funds for international. I like it myself since it gives more t...
by Doc
Wed Jan 04, 2017 3:16 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard statement error
Replies: 4
Views: 747

Re: Vanguard statement error

If it was a small differences it may be accrued dividends which sometimes post separately and sometime get added to the total depending on the type of transaction.
by Doc
Wed Jan 04, 2017 3:11 pm
Forum: Investing - Theory, News & General
Topic: Vanguard upgrading to Brokerage account comes with some nuisances
Replies: 87
Views: 11405

Re: Vanguard upgrading to Brokerage account comes with some nuisances

My experience with the new style brokerage accounts and Quicken has been that until recently the downloads have been pretty seriously broken. Basically the downloaded transactions did not include the Buys and Sells on the Federal MMF settlement account, so I had to edit the transactions and add the...
by Doc
Wed Jan 04, 2017 10:10 am
Forum: Investing - Theory, News & General
Topic: Vanguard upgrading to Brokerage account comes with some nuisances
Replies: 87
Views: 11405

Re: Vanguard upgrading to Brokerage account comes with some nuisances

@heartwood What's a check? That's usually how I feel. I may write one or two per year, usually for something at our kids' school. But I still manage to receive checks on a semi-regular basis. I was initially annoyed by the app's mobile deposit feature being broken, but I decided that I don't care. ...
by Doc
Tue Jan 03, 2017 8:36 am
Forum: Investing - Theory, News & General
Topic: Tax Loss Harvesting - Is it worth it?
Replies: 85
Views: 5297

Re: Tax Loss Harvesting - Is it worth it?

dumb question, I apologize, but how exactly do we "carry over" an investment loss for TLH from previous years? I use taxact but do not remember it "asking" me if I had investment losses from prior years. and how/who tracks all this? how does the IRS know when we've "exhaust...
by Doc
Mon Jan 02, 2017 10:37 am
Forum: Investing - Theory, News & General
Topic: How do you treat 401k Match for IRR Purposes?
Replies: 46
Views: 2110

Re: How do you treat 401k Match for IRR Purposes?

Without a doubt the employer match is part of your compensation which has then been invested in the 401K as a contribution. Counting it as a dividend, which is part of return, would give you a completely distorted result for IRR. Yes. But a dividend also counts except that if you reinvest it (keep ...
by Doc
Sun Jan 01, 2017 6:17 pm
Forum: Investing - Theory, News & General
Topic: 100% TIPS and 0% in Nominal Bonds?
Replies: 168
Views: 8673

Re: 100% TIPS and 0% in Nominal Bonds?

I would like to see Vanguard Index the intermediate term fund much like the Short Term fund. Perhaps monthly dividend income as well. I belive that the TIPS coupon schedule would make it difficult. Monthly dividends would create a cash flow problem. Also they have to pay out the OID even with low c...
by Doc
Sun Jan 01, 2017 6:08 pm
Forum: Investing - Theory, News & General
Topic: 100% TIPS and 0% in Nominal Bonds?
Replies: 168
Views: 8673

Re: 100% TIPS and 0% in Nominal Bonds?

I do remember reading threads where some TIPS had been priced for negative real returns. Don't think that is the case today. Still negative out to about 4 1/2 years as of "last year" and the nothing's changed so far this year. :D http://online.wsj.com/mdc/public/page/2_3020-tips.html The ...
by Doc
Sun Jan 01, 2017 3:31 pm
Forum: Investing - Theory, News & General
Topic: 100% TIPS and 0% in Nominal Bonds?
Replies: 168
Views: 8673

Re: 100% TIPS and 0% in Nominal Bonds?

nedsaid wrote:I do remember reading threads where some TIPS had been priced for negative real returns. Don't think that is the case today.


Still negative out to about 4 1/2 years as of "last year" and the nothing's changed so far this year. :D

http://online.wsj.com/mdc/public/page/2_3020-tips.html
by Doc
Sun Jan 01, 2017 9:52 am
Forum: Investing - Theory, News & General
Topic: If you only have 20% in bonds...
Replies: 42
Views: 6883

Re: If you only have 20% in bonds...

I care more about annual correlation. Liquidity is best provided by cash or short-term instruments, so monthly covariance of bond classes is not as significant to me. Monthly correlation with equities might be more relevant in terms of diversifying shorter term variance of equities. That is likely ...
by Doc
Sat Dec 31, 2016 6:52 pm
Forum: Investing - Theory, News & General
Topic: If you only have 20% in bonds...
Replies: 42
Views: 6883

Re: If you only have 20% in bonds...

jalbert wrote:Annual return correlations since 1/1/2006 of treasuries, corporates, and TIPs are interesting


Can you run using monthly data and maybe shorten the time period to say two years centered around Lehman?

It's the short term correlation that is likely to be the most significant.
by Doc
Sat Dec 31, 2016 5:09 pm
Forum: Investing - Theory, News & General
Topic: Tax Loss Harvesting - Is it worth it?
Replies: 85
Views: 5297

Re: Tax Loss Harvesting - Is it worth it?

A theoretical question - if an investor plans on spending his entire taxable investment portfolio during his lifetime and anticipates always being in the 15% cap gain bracket, is there a realized benefit to TLH? Seems like there would not be because all locked in losses create equivalently large ga...

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