Search found 1609 matches

by Electron
Wed Dec 28, 2016 2:19 pm
Forum: Investing - Theory, News & General
Topic: High Yield Corporate Bonds Have Less Interest Rate Risk?
Replies: 17
Views: 1607

Re: High Yield Corporate Bonds Have Less Interest Rate Risk?

If rising interest rates are the result of a strengthening economy, corporate bonds will see credit upgrades and lower default rates. Those factors have a positive effect on the prices of existing bonds and can help offset declines related to higher rates. There are many factors that can impact the ...
by Electron
Wed Dec 21, 2016 12:20 am
Forum: Investing - Help with Personal Investments
Topic: VMMXX-Vanguard Prime Money Market Fund
Replies: 20
Views: 3362

Re: VMMXX-Vanguard Prime Money Market Fund

Currently (for me) Vanguard California Tax-Exempt Money Market Fund (VCTXX) is yielding more than the Vanguard Federal MM settlement fund. I'd suggest keeping an eye on the various Money Market Funds as the SEC Yields are always changing. The current SEC Yields are as follows: Prime Money Market - ...
by Electron
Sun Dec 18, 2016 4:56 pm
Forum: Investing - Theory, News & General
Topic: Over the last 40 years, 71% of the stock market's return came from dividends, not capital appreciation,"
Replies: 91
Views: 8071

Re: Over the last 40 years, 71% of the stock market's return came from dividends, not capital appreciation,"

Here is another interesting analysis to consider. http://www.fastgraphs.com/research_articles/2016-03-24-carnevale-dividends-true-contribution-may-suprise "Here are but a few examples of conclusions that I contend can mislead investors. On December 6, 2010 the heads of Black Rock’s global equit...
by Electron
Sat Dec 17, 2016 2:47 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Roth Conversion between ex div & record date
Replies: 11
Views: 593

Re: Vanguard Roth Conversion between ex div & record date

For mutual funds, is the record date the date on which it is written whether we own the fund or not, and if yes, we receive our dividends and cap gains? Does this mean there is no in-limbo period (ie. like the 2-day ex-dividend period for stocks) before the record date when we would "own"...
by Electron
Fri Dec 16, 2016 11:58 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Roth Conversion between ex div & record date
Replies: 11
Views: 593

Re: Vanguard Roth Conversion between ex div & record date

The chart does not say the ex div date, but my understanding is that it should be 2 days before the record date (am I correct?), which would be Dec. 20. (I'm assuming that mutual funds have ex div dates) Two days before the record date applies to individual stocks as a result of the three day settl...
by Electron
Fri Dec 09, 2016 10:58 pm
Forum: Investing - Help with Personal Investments
Topic: Optimizing Inherited IRA RMDs
Replies: 20
Views: 1639

Re: Optimizing Inherited IRA RMDs

I'll add two other thoughts.

Consider Tax Loss Harvesting in years when taxable accounts show any unrealized losses.

Charitable contributions can also be used to benefit the charity and reduce your taxes. Beyond that, just be happy with whatever amount remains after paying taxes.
by Electron
Fri Dec 09, 2016 3:18 pm
Forum: Investing - Help with Personal Investments
Topic: Optimizing Inherited IRA RMDs
Replies: 20
Views: 1639

Re: Optimizing Inherited IRA RMDs

One interesting thing about Inherited IRAs is that their lifetime is finite. The distributions often end before age 85 unless the distributions start in later years. Take a look at the Single Life Expectancy Table in Publication 590-B (Table I). In the case of a starting age of 35, the initial divis...
by Electron
Mon Nov 28, 2016 3:20 pm
Forum: Investing - Theory, News & General
Topic: Bond Funds when Rates Rise?
Replies: 16
Views: 2735

Re: Bond Funds when Rates Rise?

Here is some interesting information on Treasury Yields and Inflation going back to the 1960s. http://www.crestmontresearch.com/docs/i-rate-10-yr-yield.pdf http://www.crestmontresearch.com/interest-rates/ There are times when longer term interest rates react favorably to rate increases by the Federa...
by Electron
Mon Nov 28, 2016 2:15 pm
Forum: Investing - Theory, News & General
Topic: Bond Funds when Rates Rise?
Replies: 16
Views: 2735

Re: Bond Funds when Rates Rise?

Historically, Treasury Securities have yielded some premium over the inflation rate depending on the maturity. It's all based on supply and demand as investors want to be compensated for the risk they are taking. Riskier bonds such as corporates typically trade at a yield higher than the same maturi...
by Electron
Tue Nov 22, 2016 3:45 pm
Forum: Investing - Theory, News & General
Topic: Why are bonds dropping? They are supposed to be safe.
Replies: 171
Views: 20227

Re: Why are bonds dropping? They are supposed to be safe.

I put $100,000 in VG GinnieMae fund in June of 2008. Monthly dividend checks were always right around $400 for the first few months; by the beginning of 2009 they started slipping and continued to slip and slide - below $300 - starting last year and continuing into 2016 some checks slipped to barel...
by Electron
Mon Nov 21, 2016 5:57 pm
Forum: Investing - Theory, News & General
Topic: Why are bonds dropping? They are supposed to be safe.
Replies: 171
Views: 20227

Re: Why are bonds dropping? They are supposed to be safe.

One problem with looking at bond fund returns is that bond funds didn't exist (at least not the ones we're talking about) during the periods when bonds had really bad returns, especially in real terms. For the 16-year period 1966-1981, intermediate-term Treasuries had a cumulative real return of -3...
by Electron
Sat Nov 19, 2016 2:14 pm
Forum: Investing - Theory, News & General
Topic: Why are bonds dropping? They are supposed to be safe.
Replies: 171
Views: 20227

Re: Why are bonds dropping? They are supposed to be safe.

Bonds as a "safe" part of a portfolio . . Bonds have never been considered safe in the short term unless close to maturity. If you want a return greater than what is available from a risk free asset you have to take risk and invest for the longer term. However, bonds of suitable credit qu...
by Electron
Fri Nov 18, 2016 5:37 pm
Forum: Investing - Theory, News & General
Topic: Why are bonds dropping? They are supposed to be safe.
Replies: 171
Views: 20227

Re: Why are bonds dropping? They are supposed to be safe.

You sure you got that correctly, isn't it a proposed rise to between 50 and 75 basis points? FED does not intend to raise the borrowing rate 50 or 75 basis points. My chart was posted three years ago only as an example to graphically illustrate the Point of Indifference concept. I was not attemptin...
by Electron
Fri Nov 18, 2016 3:16 pm
Forum: Investing - Theory, News & General
Topic: Why are bonds dropping? They are supposed to be safe.
Replies: 171
Views: 20227

Re: Why are bonds dropping? They are supposed to be safe.

The CME Fed Watch Tool is predicting a 90% plus probability of a Fed target target rate rise of 50-75 bps. That's BIG . A rise of 50-75 bps would indeed be significant. That increase might also impact the short end of the yield curve more than the long end. This discussion prompted me to review the...
by Electron
Fri Nov 18, 2016 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Tax bomb at 70 1/2
Replies: 71
Views: 9498

Re: Tax bomb at 70 1/2

Am I the only one offended by the "tax bomb" reference?

Try an Internet search on Tax Torpedo which is a term that has been seen in many articles.

Michael Kitces has used the term Tax Bomb in regards to lapsing life insurance policies when a large loan is also involved.
by Electron
Wed Nov 16, 2016 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Tax bomb at 70 1/2
Replies: 71
Views: 9498

Re: Tax bomb at 70 1/2

I'd also review all other sources of income. You may want to emphasize qualified dividends, capital gains, and tax exempt income rather than ordinary income. However, we all need to think about any impact from tax reform which could require changes in our planning. Note also that lower marginal tax ...
by Electron
Sat Nov 12, 2016 5:40 pm
Forum: Investing - Theory, News & General
Topic: Why did the Short Term Investment Grade Dividend go down so much for the month of September
Replies: 18
Views: 2668

Re: Why did the Short Term Investment Grade Dividend go down so much for the month of September

I read through the notes in the latest Semiannual Report to see if derivatives could impact the dividend from month to month. Here are a few paragraphs extracted from the report. There are many more notes and they are not easy to understand. Any comments? Also note the last paragraph where they stat...
by Electron
Thu Nov 10, 2016 3:27 pm
Forum: Investing - Help with Personal Investments
Topic: An alternate to DNP [DNP Select Income Fund Inc.]
Replies: 21
Views: 1574

Re: An alternate to DNP [DNP Select Income Fund Inc.]

I'll add a few comments to my earlier post. Regular withdrawals from a mutual fund would be very easy to do in a tax sheltered account. Distributions would be reinvested and would not be a complication. In a taxable account, you would want to anticipate distributions where possible and minimize the ...
by Electron
Wed Nov 09, 2016 3:59 pm
Forum: Investing - Help with Personal Investments
Topic: An alternate to DNP [DNP Select Income Fund Inc.]
Replies: 21
Views: 1574

Re: An alternate to DNP

One approach is to use Morningstar Charts to compare Total Returns. The chart below shows that Vanguard Wellington and Wellesley both outperformed DNP since inception in 1987. If you find a fund that meets your needs, you could take a fixed level of income and withdrawals from the fund at any interv...
by Electron
Fri Nov 04, 2016 12:29 pm
Forum: Personal Consumer Issues
Topic: Any recs for a Linux-compatible laptop?
Replies: 62
Views: 5445

Re: Any recs for a Linux-compatible laptop?

An Internet search on Linux, UEFI, Secure Boot will provide a lot of helpful information. Here is one good site.

https://www.linux.com/learn/how-install ... ecure-boot
by Electron
Thu Nov 03, 2016 5:01 pm
Forum: Personal Consumer Issues
Topic: Any recs for a Linux-compatible laptop?
Replies: 62
Views: 5445

Re: Any recs for a Linux-compatible laptop?

Take a look at the Ubuntu and Linux Mint forums. The Ubuntu Hardware Forum has a thread on Laptop Compatibility.

https://ubuntuforums.org/index.php
https://forums.linuxmint.com/
by Electron
Thu Nov 03, 2016 4:44 pm
Forum: Investing - Theory, News & General
Topic: Individual stocks that are sound w/ indexing
Replies: 84
Views: 6549

Re: Individual stocks that are sound w/ indexing

Take a look at the Nifty Fifty stocks from the 1960s. https://en.wikipedia.org/wiki/Nifty_Fifty The odds of anyone beating the market over the long term is very low. However, it's fine if you want to be a portfolio manager with a small percentage of your assets. The majority of your portfolio should...
by Electron
Wed Nov 02, 2016 1:45 pm
Forum: Investing - Theory, News & General
Topic: Why did the Short Term Investment Grade Dividend go down so much for the month of September
Replies: 18
Views: 2668

Re: Why did the Short Term Investment Grade Dividend go down so much for the month of September

There are no distributions to date for this fund. Doc - Thanks for the information on VTIPX. That is noteworthy that the fund has not paid any distributions year-to-date. I also see that Total Return is pretty close to flat since inception several years ago. Even so, would a 9% position in TIPS exp...
by Electron
Tue Nov 01, 2016 5:33 pm
Forum: Investing - Theory, News & General
Topic: Why did the Short Term Investment Grade Dividend go down so much for the month of September
Replies: 18
Views: 2668

Re: Why did the Short Term Investment Grade Dividend go down so much for the month of September

Why isolate the dividends? It seems total return is doing just fine. Thanks for the chart. I had also wondered about Total Return and how the use of derivatives might affect both the dividend and NAV. One question is whether Morningstar's Total Return charts are accurate in the short term. Since di...
by Electron
Tue Nov 01, 2016 2:00 pm
Forum: Investing - Theory, News & General
Topic: Why did the Short Term Investment Grade Dividend go down so much for the month of September
Replies: 18
Views: 2668

Re: Why did the Short Term Investment Grade Dividend go down so much for the month of September

Did anyone ever find an explanation? I contacted Vanguard through my account and was told that the dividend was impacted by a larger than normal 9% position in TIPS. It's hard for me to see how that small position in TIPS could have resulted in a 28% decline in the dividend. Actually, if we adjust ...
by Electron
Sun Oct 30, 2016 3:28 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Core Bond Fund
Replies: 55
Views: 6223

Re: Vanguard Core Bond Fund

Interesting M* article on the core bond fund: http://news.morningstar.com/articlenet/article.aspx?id=775899 Thanks for the reference to the Morningstar article. One thing I noticed is that the monthly dividend has varied quite a bit compared with the bond index fund. That is not necessarily importa...
by Electron
Tue Oct 25, 2016 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion Target - Time to Break Even
Replies: 25
Views: 2536

Re: Roth Conversion Target - Time to Break Even

If you consider your after-tax net worth before and after a Roth Conversion, the concept of break even changes considerably. The more important question is whether the Roth Conversion will add value in future years, and a number of factors come into play as part of that analysis. One factor is the d...
by Electron
Fri Oct 21, 2016 2:08 pm
Forum: Investing - Theory, News & General
Topic: Why are tax-exempt money market yields so high?
Replies: 21
Views: 3818

Re: Why are tax-exempt money market yields so high?

The SEC 7 Day Yield on the Vanguard Tax-Exempt Money Market fund peaked a week ago and appears to be drifting down. 10/07/2016 $1.00 0.71% 10/10/2016 $1.00 0.72% 10/11/2016 $1.00 0.72% 10/12/2016 $1.00 0.72% 10/13/2016 $1.00 0.72% 10/14/2016 $1.00 0.72% 10/17/2016 $1.00 0.70% 10/18/2016 $1.00 0.70% ...
by Electron
Mon Oct 17, 2016 10:24 pm
Forum: Investing - Help with Personal Investments
Topic: An alternate to DNP [DNP Select Income Fund Inc.]
Replies: 21
Views: 1574

Re: An alternate to DNP

The CEF Connect website provides a lot of information on Closed End Funds. http://www.cefconnect.com/fund/DNP If you click on Distributions you can see the details for each distribution which may have included Return of Capital. The site provides a Fund Screener that will help you locate other Close...
by Electron
Thu Oct 13, 2016 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Question
Replies: 7
Views: 740

Re: Tax Question

Duke Energy bought Progress Energy back in 2012. I believe cash was only involved for the fractional shares that resulted from the 1:3 reverse split. My capital gain on the fractional shares was only a few dollars. The much larger unrealized capital gain on all of the whole shares can be deferred as...
by Electron
Mon Oct 10, 2016 12:58 pm
Forum: Investing - Theory, News & General
Topic: PBS Program on Roth IRA - Ed Slott
Replies: 31
Views: 5785

Re: PBS Program on Roth IRA - Ed Slott

I've struggled with this. I'm 63 have 2m in IRAs at 15% tax. at 70 will be at 25% or 28%. Would it be ok to do $100000 a years until 70. I would need to use money from my IRA to pay tax. I could get killed with my IRA,SS and wife's SS. I do not have the money for tax's. There are many earlier forum...
by Electron
Mon Oct 10, 2016 12:43 pm
Forum: Investing - Help with Personal Investments
Topic: VG's tax exempt MMF yield now competitive with online savings
Replies: 23
Views: 3112

Re: VG's tax exempt MMF yield now competitive with online savings

The new rules affecting Money Market funds take effect on October 14. It will be interesting to see if yields remain at current levels after that date. There have been significant outflows from Prime and Tax Exempt Money Market funds as a result of the reform and that has affected yields. Try a Goog...
by Electron
Sun Oct 09, 2016 4:43 pm
Forum: Investing - Theory, News & General
Topic: PBS Program on Roth IRA - Ed Slott
Replies: 31
Views: 5785

Re: PBS Program on Roth IRA - Ed Slott

If you are planning charitable donations throughout your retirement years, there is no particular reason to finish all your conversions so early. When RMDs start, you can fulfill your RMDs with nontaxable Qualified Charitable Donations (QCDs) Correct. If you work this out carefully, you won't conve...
by Electron
Sun Oct 09, 2016 4:14 pm
Forum: Investing - Theory, News & General
Topic: PBS Program on Roth IRA - Ed Slott
Replies: 31
Views: 5785

Re: PBS Program on Roth IRA - Ed Slott

In case anyone missed it, the Wiki on this site has a lot of helpful information on both Roth IRAs and Roth Conversions. https://www.bogleheads.org/wiki/Outline_of_personal_retirement_plans#IRA_accounts In hindsight, I should have looked at Roth Conversions in more detail ten years ago. There are ma...
by Electron
Fri Oct 07, 2016 2:36 pm
Forum: Investing - Theory, News & General
Topic: PBS Program on Roth IRA - Ed Slott
Replies: 31
Views: 5785

Re: PBS Program on Roth IRA - Ed Slott

Does the sentence I highlighted mean that when converting TIRA to Roth IRA you move shares from one to the other instead of selling shares in TIRA and then buying shares in Roth? You can do a Roth Conversion either way. Try a Google search on Roth Conversion In Kind. Taxes will be due in either cas...
by Electron
Wed Oct 05, 2016 12:09 pm
Forum: Investing - Theory, News & General
Topic: Why did the Short Term Investment Grade Dividend go down so much for the month of September
Replies: 18
Views: 2668

Re: Why did the Short Term Investment Grade Dividend go down so much for the month of September

The reason for the drop in the September dividend would be a good question for Vanguard. One possibility might be the various derivatives used in the fund. See the latest annual report and review pages 15-50 as there is a lot of information provided. The fund invests in Futures Contracts, Options on...
by Electron
Sun Oct 02, 2016 2:12 pm
Forum: Investing - Theory, News & General
Topic: Why are tax-exempt money market yields so high?
Replies: 21
Views: 3818

Re: Why are tax-exempt money market yields so high?

The Money Market Funds at Fidelity have the same relationship we are seeing at Vanguard when comparing the Tax-Exempt and Prime Money Market Funds. The Fidelity Institutional Funds are showing 0.63% for Tax-Exempt and 0.55% for Prime. Those figures are the 7 day SEC yields. You can see the decline i...
by Electron
Sat Oct 01, 2016 2:17 pm
Forum: Investing - Theory, News & General
Topic: Why are tax-exempt money market yields so high?
Replies: 21
Views: 3818

Re: Why are tax-exempt money market yields so high?

There will undoubtedly be a number of interesting articles on Money Market Fund outflows in the coming weeks. I'll also be looking forward to the commentary in the next Vanguard Annual Reports. It's quite interesting to look at the Money Market Fund portfolios in the Vanguard Annual Reports. Vanguar...
by Electron
Thu Sep 29, 2016 3:54 pm
Forum: Investing - Theory, News & General
Topic: Why are tax-exempt money market yields so high?
Replies: 21
Views: 3818

Re: Why are tax-exempt money market yields so high?

Take a look at this Bloomberg article. The title is "Muni Money Market Funds Decimated by Rules Intended to Save Them".

http://www.bloomberg.com/news/articles/ ... -save-them
by Electron
Thu Sep 29, 2016 2:39 pm
Forum: Investing - Theory, News & General
Topic: Why are tax-exempt money market yields so high?
Replies: 21
Views: 3818

Re: Why are tax-exempt money market yields so high?

There have been many articles recently about outflows from Prime Money Market funds related to the upcoming changes. Try a Google search. My guess is that the same thing may be happening with Tax Exempt Money Market funds. In any of these cases, it would be harder to sell new paper without yields ri...
by Electron
Mon Sep 19, 2016 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Windfall will put me into AMT for 2017... How to ride it out?
Replies: 12
Views: 1673

Re: Windfall will put me into AMT for 2017... How to ride it out?

If there is any way to reduce Adjusted Gross Income next year that should lower AMT. One example might be replacing ordinary income from investments with tax exempt income. A key factor is the phaseout of the AMT exemption. Qualified Dividends might also be preferable to ordinary income. You might f...
by Electron
Sat Sep 17, 2016 5:19 pm
Forum: Personal Finance (Not Investing)
Topic: Windfall will put me into AMT for 2017... How to ride it out?
Replies: 12
Views: 1673

Re: Windfall will put me into AMT for 2017... How to ride it out?

I'd suggest modeling your taxes in any good tax program such as TaxAct. Here is an excellent article on AMT that is worth reviewing. https://www.kitces.com/blog/evaluating-exposure-to-the-alternative-minimum-tax-and-strategies-to-reduce-the-amt-bite/ One key is understanding the phaseout of the AMT ...
by Electron
Fri Sep 16, 2016 12:50 pm
Forum: Personal Consumer Issues
Topic: Unlocked Android Phones - Any Issues with Software Updates?
Replies: 9
Views: 948

Re: Unlocked Android Phones - Any Issues with Software Updates?

Thanks all for the additional information. My main concern was getting a new or backup phone from someplace other than Cricket Wireless and not knowing whether updates would be affected. My SIM card would be moved to the new phone. There was one comment in the thread I referenced above that I found ...
by Electron
Thu Sep 15, 2016 12:49 pm
Forum: Investing - Help with Personal Investments
Topic: VMMXX-Vanguard Prime Money Market Fund
Replies: 20
Views: 3362

Re: VMMXX-Vanguard Prime Money Market Fund

I had an email from Vanguard in early August that was an Account Change Confirmation. The Federal Money Market fund had been opened with zero balance. Click on "Messages" after you log in and check your Inbox. I had a message indicating that assets would need to be transferred into the new...
by Electron
Thu Sep 15, 2016 12:29 pm
Forum: Personal Consumer Issues
Topic: Unlocked Android Phones - Any Issues with Software Updates?
Replies: 9
Views: 948

Re: Unlocked Android Phones - Any Issues with Software Updates?

Thanks all for the replies. I found a thread on the android central forum and it looks like this may be a complicated subject. It appears that not all unlocked phones are offered software upgrades after they become available. It may depend on the specific phone and the carrier involved. The thread m...
by Electron
Wed Sep 14, 2016 12:02 pm
Forum: Personal Consumer Issues
Topic: Unlocked Android Phones - Any Issues with Software Updates?
Replies: 9
Views: 948

Unlocked Android Phones - Any Issues with Software Updates?

I've heard that some carriers have customized versions of the Android operating system. Does this present any issues for either minor or major software updates?

In addition, is it possible to stay with the standard version of Android when a major update becomes available?
by Electron
Sun Sep 11, 2016 12:17 pm
Forum: Investing - Theory, News & General
Topic: Wall St. Nuclear Meltdown
Replies: 62
Views: 9160

Re: Wall St. Nuclear Meltdown

After sharp declines of this type in the market, the media rarely mentions that the selling is being done largely by short term investors and speculators and not long term investors. Most of the selling is related to traders with margin accounts, market timers, hedge funds, computer trading, and oth...
by Electron
Thu Sep 08, 2016 4:44 pm
Forum: Investing - Help with Personal Investments
Topic: $50M+ - Need a sounding board/advice
Replies: 205
Views: 23582

Re: $50M+ - Need a sounding board/advice

A large taxable portfolio presents some interesting questions about taxation. It's fairly easy to model different scenarios with programs such as TaxAct. If the $70M portfolio was invested entirely in the Total Stock Market Index, you would have approximately $1.4M in Qualified Dividends. It looks l...
by Electron
Sun Sep 04, 2016 1:32 pm
Forum: Investing - Help with Personal Investments
Topic: $50M+ - Need a sounding board/advice
Replies: 205
Views: 23582

Re: $50M+ - Need a sounding board/advice

I'd also think about whether you want to use a single brokerage firm with all assets held by one custodian.

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