Search found 6962 matches

by Doc
Sun Apr 23, 2017 5:49 pm
Forum: Investing - Theory, News & General
Topic: Is $20K I-Bonds considered cash or bond?
Replies: 25
Views: 1086

Re: Is $20K I-Bonds considered cash or bond?

Spirit Rider wrote:In my view anything that is principal protected and relatively liquid is Cash.

A thirty year Treasury bond can be sold in a minute during market hours and you can have Franklin's in your hands tomorrow morning. But I don't consider them as cash.
by Doc
Sun Apr 23, 2017 5:37 pm
Forum: Investing - Theory, News & General
Topic: The Skinny on Dividends
Replies: 10
Views: 1637

Re: The Skinny on Dividends

... and then simultaneously save for the $3k minimum to play in the low-cost index funds outside of the retirement playing field Think outside the Vanguard box. Schwab $1k to open account and only $1 to invest in their funds. (There is a $100 monthly alternative to the $1k to open.) Many of Schwab'...
by Doc
Sun Apr 23, 2017 5:20 pm
Forum: Investing - Theory, News & General
Topic: LMP-1: P&I article on corporate & public pension plans
Replies: 16
Views: 950

Re: LMP-1: P&I article on corporate & public pension plans

grok87 wrote:My liability matching portfolio is aimed at replicating a pension since i don't have one

I always wondered why you would want to fund a 30 yr LMP with real yields at rock bottom instead of taking more risk until yields improved. Now I know. :sharebeer
by Doc
Sun Apr 23, 2017 9:51 am
Forum: Investing - Theory, News & General
Topic: Ally Bank Just Raised 5yr CD to 2.25%
Replies: 28
Views: 3604

Re: Ally Bank Just Raised 5yr CD to 2.25%

I'm a big fan of Vanguard Short-Term Corporate Fund https://personal.vanguard.com/us/funds/snapshot?FundId=1945&FundIntExt=INT Yielding 2.18% right now. Rates will continue to rise slowly but likely so will these yields (eventually). So much can happen over the next five years I wouldn't go loc...
by Doc
Sun Apr 23, 2017 6:30 am
Forum: Investing - Theory, News & General
Topic: Ally Bank Just Raised 5yr CD to 2.25%
Replies: 28
Views: 3604

Re: Ally Bank Just Raised 5yr CD to 2.25%

You're missing interest rate risk If the stock market tanks the Treasury price is likely to go up and the CD goes down because of the EWP. Risk is a two way street. Kevin and I have gone round & round on the CD/Treasury. He discounts things like covariance with equities calling them "specu...
by Doc
Sat Apr 22, 2017 2:07 pm
Forum: Investing - Theory, News & General
Topic: Ally Bank Just Raised 5yr CD to 2.25%
Replies: 28
Views: 3604

Re: Ally Bank Just Raised 5yr CD to 2.25%

HueyLD wrote:
The big problem I have with TIPS is that the brokers can't seem to get the OID and ABP bookkeeping right. We've gotten five 1099 corrections from our brokers this year and all the corrections concerned TIPS.

Who is the broker? Vanguard?


Brokers plural.
by Doc
Sat Apr 22, 2017 11:47 am
Forum: Investing - Theory, News & General
Topic: Ally Bank Just Raised 5yr CD to 2.25%
Replies: 28
Views: 3604

Re: Ally Bank Just Raised 5yr CD to 2.25%

TIPS are government guaranteed, so they are indeed comparable. Obviously, the only real variable here is whether inflation will be higher than 1.7%. Apparently you (and the market) believe that it will be lower than an average of 1.7% over the next five years. Considering that CPI was 2.4% for the ...
by Doc
Sat Apr 22, 2017 10:43 am
Forum: Investing - Theory, News & General
Topic: Ally Bank Just Raised 5yr CD to 2.25%
Replies: 28
Views: 3604

Re: Ally Bank Just Raised 5yr CD to 2.25%

What am I missing? The yield on the five year Treasury is 1.77 with no state tax and no EWP. https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield Again, the problem is that the real return, at current inflation rates, is negative at that yield. TI...
by Doc
Sat Apr 22, 2017 9:47 am
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 133
Views: 11300

Re: Case study Broker trade executions

Thanks, Doc. I haven't found Level 2 at Fidelity. It's certainly not readily available on their standard trade screen. It would be nice to have. It might be available through their Active Trader software . I haven't used that in quite a while. I think that's where it comes from at Schwab. It opens ...
by Doc
Sat Apr 22, 2017 7:37 am
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 133
Views: 11300

Re: Case study Broker trade executions

Chip wrote:
Doc wrote:I recently got access to ARCA book. BATS is less efficient.


How did you get that access, Doc?

Schwab account.
by Doc
Sat Apr 22, 2017 6:16 am
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 133
Views: 11300

Re: Case study Broker trade executions

I looked up the order book on BATS and saw that the next bid was 10 x 123.97. I remembered from "Flash Boys" that BATS was pretty notorious for putting a teaser bid of 100 shares out there, then pulling it when the limit order came in, hoping to get the seller to chase the bid. I recently...
by Doc
Sat Apr 22, 2017 6:00 am
Forum: Investing - Theory, News & General
Topic: Ally Bank Just Raised 5yr CD to 2.25%
Replies: 28
Views: 3604

Re: Ally Bank Just Raised 5yr CD to 2.25%

What am I missing? The yield on the five year Treasury is 1.77 with no state tax and no EWP.

https://www.treasury.gov/resource-cente ... data=yield
by Doc
Sat Apr 22, 2017 5:51 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe says "Goodby."
Replies: 299
Views: 26564

Re: Larry Swedroe says "Goodby."

leftcoaster wrote:On his guidance - I always found that Larry's approach to bond investing was waaaay too complicated. I wonder how many non-clients actually implemented it.

At least one.
by Doc
Fri Apr 21, 2017 1:55 pm
Forum: Investing - Theory, News & General
Topic: Bond fund Maturity vs Duration
Replies: 32
Views: 2078

Re: Bond fund Maturity vs Duration

Th differences are subtle. Go to Vanguard or some other broker that has a good search criteria. For Vanguard I used Treasury Strips/Bonds/Notes with a maturity of 3 to 7 years (the part of the yield curve currently with the most term sensitivity). Sort by maturity date and compare the yields with th...
by Doc
Fri Apr 21, 2017 9:05 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe says "Goodby."
Replies: 299
Views: 26564

Re: Larry Swedroe says "Goodby."

I'm still keeping my location as

"Two left turns from Larry"
by Doc
Fri Apr 21, 2017 6:58 am
Forum: Investing - Theory, News & General
Topic: How to use Vanguard Portfolio Watch for rebalancing
Replies: 85
Views: 35542

Re: How to use Vanguard Portfolio Watch for rebalancing

Great thread. For those following along wondering about other brokerages, you can do nearly all of the VPW stuff in Merrill Edge as well, using their Portfolio Analysis tool. Since it's just using M*, the information is identical. Use Morningstar detailed data whatever way you can get it. Just usin...
by Doc
Fri Apr 21, 2017 6:37 am
Forum: Investing - Theory, News & General
Topic: LMP-1: P&I article on corporate & public pension plans
Replies: 16
Views: 950

Re: LMP-1: P&I article on corporate & public pension plans

Gee... well, bonds are generally for safety, and equity is for risk, and hopefully return. One is safe and conservative, and one is risky and aggressive. Personally, I go for 15% of this, and 85% of that, thank you... but as far as my pension goes, I just want the result, i.e. the guarantee. I'd pr...
by Doc
Fri Apr 21, 2017 6:27 am
Forum: Investing - Theory, News & General
Topic: Bond fund Maturity vs Duration
Replies: 32
Views: 2078

Re: Bond fund Maturity vs Duration

kolea wrote:It is an amazing thing about bonds, that regardless of term and coupon, the yield will be the same for the same maturity.

Duration. :D
by Doc
Thu Apr 20, 2017 1:16 pm
Forum: Investing - Theory, News & General
Topic: Site to measure individual bond's performance
Replies: 2
Views: 277

Re: Site to measure individual bond's performance

https://personal.vanguard.com/us/FixedIncomeTrading

I didn't bother to look at Schwab of Fido but they both have bond desks as do most brokers and most will have search methods.

For Vg I chose "agencies" and then TVA in the "issuer" drop down. You can also enter a cusip.
by Doc
Thu Apr 20, 2017 6:38 am
Forum: Investing - Theory, News & General
Topic: Bond fund Maturity vs Duration
Replies: 32
Views: 2078

Re: Bond fund Maturity vs Duration

If interest rates drop then prepayment and refinancing is likely, but if interest rates rise it isn't. So it's an asymmetric risk, which can't be captured by a single number. More generally, the duration only gives the sensitivity of the bond price to a very small change in interest rates (if you w...
by Doc
Wed Apr 19, 2017 2:59 pm
Forum: Investing - Theory, News & General
Topic: Bond fund Maturity vs Duration
Replies: 32
Views: 2078

Re: Bond fund Maturity vs Duration

Can I summarize things as follows? ⋅ The duration is intended to represent what maturity (if issued today) the bond in question would need to make it equivalent to other newly-issued bonds with the same coupon. ⋅ The calculation to reach that number can be made in several ways, ...
by Doc
Wed Apr 19, 2017 12:50 pm
Forum: Investing - Theory, News & General
Topic: H&R Block online - How to enter Vanguard Total Bond treasury interest?
Replies: 5
Views: 578

Re: H&R Block online - How to enter Vanguard Total Bond treasury interest?

There's a bit of subtlety here, and the short answer is that it depends on the state. It's true that no state can tax Treasury bond interest. However, mutual funds and ETFs do not distribute Treasury bond interest. As a registered investment company (RIC), they distribute dividends to their shareho...
by Doc
Wed Apr 19, 2017 12:41 pm
Forum: Investing - Theory, News & General
Topic: Bond fund Maturity vs Duration
Replies: 32
Views: 2078

Re: Bond fund Maturity vs Duration

Looking at what Alex said from a different prospective: "There is "Modified Duration" which measures price sensitivity." "There is "Macaulay Duration" which is what you see on a fund's fact sheet. It is the time weighted cash flows of a bond." Sometimes referr...
by Doc
Tue Apr 18, 2017 9:14 am
Forum: Investing - Theory, News & General
Topic: RMD Question
Replies: 6
Views: 655

Re: RMD Question

I don't know what Fidelity does, but I would assume something similar to Vanguard. I don't know what Vanguard does, but I would assume something similar to Fidelity . FIDO calculates and will automatically send you the RMD based on the FIDO balance or any RMD amount you choose. You can have them wi...
by Doc
Tue Apr 18, 2017 6:32 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe on SPIVA Survey
Replies: 12
Views: 1900

Re: Larry Swedroe on SPIVA Survey

nedsaid wrote:I track in Quicken but not sure that Quicken calculates returns correctly

You should be good to go with Quicken as long as you have a position at start & end of period. Put in $1 if needed. (Excel has similar problems.)
by Doc
Mon Apr 17, 2017 7:06 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe on SPIVA Survey
Replies: 12
Views: 1900

Re: Larry Swedroe on SPIVA Survey

I would love to see how this one looks without fees. I've been interested in the Vanguard Core Bond Fund ... There have been two recent articles on active/passive comparisons from Morningstar and PIMCO that purport to show that the underperformance of active funds in the fixed income area is not th...
by Doc
Mon Apr 17, 2017 6:48 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Customer Service
Replies: 229
Views: 22009

Re: Vanguard Customer Service

littlebird, I'm interested in what issues you've had. I have full agent authorization to act on behalf of my wife and haven't had any issues making all the changes I needed to make but perhaps I just have hit the problematic issue yet I have full agent authorization on my wife's account but I occas...
by Doc
Sun Apr 16, 2017 1:52 pm
Forum: Investing - Theory, News & General
Topic: Treasury.gov issue
Replies: 4
Views: 486

Re: Treasury.gov issue

Real rates are working.

Long term are not. But yes. Hitting the refresh thingy gets the data.
by Doc
Sun Apr 16, 2017 1:18 pm
Forum: Investing - Theory, News & General
Topic: Treasury.gov issue
Replies: 4
Views: 486

Re: Treasury.gov issue

Now it looks like 4 of 5 are back.
by Doc
Sun Apr 16, 2017 1:17 pm
Forum: Investing - Theory, News & General
Topic: Treasury.gov issue
Replies: 4
Views: 486

Re: Treasury.gov issue

Looks like all of them are unavailable.

All the links where you expect numbers here https://www.treasury.gov/resource-cente ... fault.aspx don't work.

They are back.

Well not all of them.
by Doc
Sun Apr 16, 2017 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Customer Service
Replies: 229
Views: 22009

Re: Vanguard Customer Service

They are just not able to handle the volume of new customers, many of whom, especially retirement accounts, need help. That's certainly part of it. Another is compliance with Dodd Frank (name ?). They are not alone with this problem. A big part of the problem which is all Vanguard's doing is their ...
by Doc
Sat Apr 15, 2017 2:02 pm
Forum: Investing - Theory, News & General
Topic: PIMCO - active management outperforms for bonds
Replies: 8
Views: 1057

Re: PIMCO - active management outperforms for bonds

Not a surprise given the source, but I thought this was an interesting paper on the role of active management in the bond space, where it appears to have been more successful than it has been in equities. https://www.pimco.com/en-us/insights/vi ... -12-points I have not checked their claims, but I ...
by Doc
Sat Apr 15, 2017 1:42 pm
Forum: Investing - Theory, News & General
Topic: Vanguard corrected 1099B is now incorrect
Replies: 18
Views: 2187

Re: Vanguard corrected 1099B is now incorrect

Just got email from Schwab with a heads up on a correction to the first correction. Should receive paper within 1 week for US, 2 weeks for overseas. Extension anyone? :annoyed Last time the download was not available for several days after the heads up IIRC. I was really PO'd at Schwab for sending ...
by Doc
Sat Apr 15, 2017 9:05 am
Forum: Investing - Theory, News & General
Topic: Where to go for free or low cost advice?
Replies: 23
Views: 1922

Re: Where to go for free or low cost advice?

When just starting out, I found Morningstar's investor education helpful. It is basic information to start the financial education process. http://www.morningstar.com/cover/Classroom.html Good luck and let me know how you got the gig. It is something I would love to do for pre-retirees and current ...
by Doc
Sat Apr 15, 2017 8:32 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Customer Service
Replies: 229
Views: 22009

Re: Vanguard Customer Service

harvestbook wrote:VG is primarily for cheap set-it-and-forget-it use.

I absolutely agree.
by Doc
Sat Apr 15, 2017 6:47 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Customer Service
Replies: 229
Views: 22009

Re: Vanguard Customer Service

.Based on your continuous animosity toward Vanguard, I doubt if I'll be reading your soon-to-be published biased study, let alone pay for it. I have all my accounts at Vanguard. It has excellent mutual funds. Unfortunately their habit of changing their index every few years violates my IPS which re...
by Doc
Fri Apr 14, 2017 6:59 pm
Forum: Investing - Help with Personal Investments
Topic: STRIPS ladder to buy my retirement home?
Replies: 13
Views: 1228

Re: STRIPS ladder to buy my retirement home?

I'm trying to liability-match my essential retirement expenses Strips should give you an easily managed LMP for a fixed nominal liability. I don't think that strips are signifant ly less efficient than other T's. If you have to reinvest coupons you add uncertainty to your LMP which you don't want. ...
by Doc
Fri Apr 14, 2017 6:41 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Customer Service
Replies: 229
Views: 22009

Re: Vanguard Customer Service

Why would you think the article was about mutual funds? The question is the sample. Was there any effort to solicit responses from brokerage customers or just CR readers that invest @ Vg. Since Vg has only been in the brokerage business for a handful of years since they "fired" Pershing m...
by Doc
Fri Apr 14, 2017 3:23 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Customer Service
Replies: 229
Views: 22009

Re: Vanguard Customer Service

I would not make major financial decisions based on a Consumer Reports reader survey. :confused The point isn't to make investment decisions, the point was that this board doesn't provide anything close to a representative sample of customer service experiences. A survey of consumer reports subscri...
by Doc
Fri Apr 14, 2017 6:19 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Customer Service
Replies: 229
Views: 22009

Re: Vanguard Customer Service

@JamesSFO Investment Company Buying Guide In September 2016, Consumer Reports Magazine published its Ratings of Investment Companies about what they really provide to their customers—and how customers value those services. Our findings were based on a survey about their experiences investors had wi...
by Doc
Thu Apr 13, 2017 5:38 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Customer Service
Replies: 229
Views: 22009

Re: Vanguard Customer Service

@JamesSFO Investment Company Buying Guide In September 2016, Consumer Reports Magazine published its Ratings of Investment Companies about what they really provide to their customers—and how customers value those services. Our findings were based on a survey about their experiences investors had wit...
by Doc
Thu Apr 13, 2017 5:28 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Customer Service
Replies: 229
Views: 22009

Re: Vanguard Customer Service

I can't recall any references to Consumer Reports studies. :?: Link (subscription required): http://www.consumerreports.org/cro/investment-companies.htm Vanguard ranked #1, categories included (left to right): investment returns, met goals, customer service , advice, online reports. Vanguard got th...
by Doc
Thu Apr 13, 2017 3:55 pm
Forum: Investing - Theory, News & General
Topic: What rate of return do you use when planning for retirement?
Replies: 178
Views: 22081

Re: What rate of return do you use when planning for retirement?

I think it's more accurate to say that government central bankers have decided that high inflation is bad, but also that very low or no inflation also is bad. This is why the Fed target is 2% and not 0%. The Federal Reserve System is the central bank of the United States. It performs five general f...
by Doc
Thu Apr 13, 2017 3:28 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Customer Service
Replies: 229
Views: 22009

Re: Vanguard Customer Service

Take the posts here in context, this is a VG-focused forum that will draw out a disproportionate amount of VG complaints <accolades>. Consumer Reports surveys suggest VG does quite well. There are very few complaints about Vanguard mutual funds . Maybe there is a high correlation between consumer r...
by Doc
Thu Apr 13, 2017 8:25 am
Forum: Investing - Theory, News & General
Topic: Wealthfront: Why we avoid Blackrock ETFs
Replies: 24
Views: 3651

Re: Wealthfront: Why we avoid Blackrock ETFs

Once you get down to expense ratios of 0.20% and under, it's starting to look like The Principle Of The Thing, awarding your business to Vanguard in order to show the industry that you appreciate Vanguard's governance or something. Our ETF breakdown: iShares: 41% Schwab: 33% Vanguard: 26% Reasoning...
by Doc
Wed Apr 12, 2017 7:12 pm
Forum: Investing - Theory, News & General
Topic: What rate of return do you use when planning for retirement?
Replies: 178
Views: 22081

Re: What rate of return do you use when planning for retirement?

Ferri is betting that the future will look quite different from the past, and history has shown that that's a dangerous bet. I think Rick "retired" several years ago. Given what Kevin said about the FED target of 2%, Portfolio Solutions use of 2% doesn't seem out of line. So what is the b...
by Doc
Wed Apr 12, 2017 7:08 pm
Forum: Investing - Theory, News & General
Topic: What rate of return do you use when planning for retirement?
Replies: 178
Views: 22081

Re: What rate of return do you use when planning for retirement?

4% nominal, somewhere in the ballpark of 2% to 3% real. FWIW Portfolio Solutions is using a 2% inflation rate. And that's for 30 years. Your 1 to 2% inflation rate seems very low. Breakeven inflation rates using nominal minus TIPS rates on 4/11/2017: 1.70 5-year 1.91 10-year 1.95 20-year 2.02 20-ye...
by Doc
Wed Apr 12, 2017 1:07 pm
Forum: Investing - Theory, News & General
Topic: What rate of return do you use when planning for retirement?
Replies: 178
Views: 22081

Re: What rate of return do you use when planning for retirement?

randomizer wrote:4% nominal, somewhere in the ballpark of 2% to 3% real.

FWIW Portfolio Solutions is using a 2% inflation rate. And that's for 30 years. Your 1 to 2% inflation rate seems very low.
by Doc
Wed Apr 12, 2017 12:07 pm
Forum: Investing - Theory, News & General
Topic: What rate of return do you use when planning for retirement?
Replies: 178
Views: 22081

Re: What rate of return do you use when planning for retirement?

I use Portfolio Solutions (x Rick Ferri) expected returns. https://portfoliosolutions.com/latest-learnings/blog/30-year-risk-and-return-forecast-2016 plannerman Do his estimates include dividends? Possibly, but look at his 30 year predicted spread between LCB and SCV; it's .8%. Over any 30 year his...
by Doc
Sun Apr 09, 2017 10:23 am
Forum: Investing - Help with Personal Investments
Topic: Real-life, real-time wash sale & TLH documented
Replies: 128
Views: 15563

Re: Real-life, real-time wash sale & TLH documented

What Cost Basis method would you recommend? I see 3 choices: Average Cost, First in First Out and Specific Identification. Always use Specific Identification. See the red text in the bit that you quoted in your post please. 1. Only mutual funds can use Average Cost. ETFs and stocks cannot use Avera...

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