Search found 2168 matches

by Munir
Wed Jan 18, 2017 9:22 pm
Forum: Investing - Help with Personal Investments
Topic: Short and Intermediate Term Bond Funds
Replies: 13
Views: 1504

Re: Short and Intermediate Term Bond Funds

I am about your age and struggling with an AA. I like your allocation and wonder what is the general return you have received during the last year. Also given the downside of the bond market are you experiencing any losses? Thanks In my IRA (79 year old retiree), I have: 50% Intermediate Investment...
by Munir
Tue Jan 17, 2017 5:39 pm
Forum: Investing - Help with Personal Investments
Topic: Short and Intermediate Term Bond Funds
Replies: 13
Views: 1504

Re: Short and Intermediate Term Bond Funds

In my IRA (79 year old retiree), I have: 50% Intermediate Investment Grade (VFIDX) 20% Short Term Investment Grade (VFSUX) 15% Vanguard Core Bond Fund (VCOBX) 15% Total Bond Market Index (VBTLX) Of the total portfolio, the above bond funds form 55%, equities (Total Stock Market Index Fund) 30%, and ...
by Munir
Tue Jan 17, 2017 5:16 pm
Forum: Investing - Help with Personal Investments
Topic: Should Bond Funds be Considered a Fixed Income Investment?
Replies: 30
Views: 1820

Re: Should Bond Funds be Considered a Fixed Income Investment?

If a bond fund is not fixed income what is it? It certainly isn't equity. It is not a commodity or any of the other things that are sometimes called alternate investments so I think I am left calling it fixed income. It's an investment vehicle that may or may not fulfill the definition of fixed inc...
by Munir
Sun Jan 15, 2017 2:32 pm
Forum: Investing - Help with Personal Investments
Topic: Cardinal Sin - went to cash the day before 2016 election
Replies: 56
Views: 6112

Re: Cardinal Sin - went to cash the day before 2016 election

You are 40 years old and have a long time horizon. How about the Vanguard Balanced Index Fund (VBIAX)? Plan on staying in it long term and adding periodically. You might even consider DCA into it.
by Munir
Sat Jan 14, 2017 3:00 pm
Forum: Investing - Theory, News & General
Topic: Bogle says 50-50 short/intermediate bonds
Replies: 45
Views: 5461

Re: Bogle says 50-50 short/intermediate bonds

Does anyone know what rationale Jack Bogle gave for holding a 50:50 portfolio of short and intermediate bond funds (a recommendation that I agree with)? I cannot find a transcript or video of his conversation that deal with those specific comments.The available documentation only deals with his comm...
by Munir
Thu Jan 12, 2017 11:31 pm
Forum: Investing - Theory, News & General
Topic: Bogle says 50-50 short/intermediate bonds
Replies: 45
Views: 5461

Re: Bogle says 50-50 short/intermediate bonds

I'm a bit confused. Bond funds that have lost value owing to a higher interest rate will still generate the same returns as before. The only losses I see - perhaps I am missing something? - is if I sell the bonds, i.e. generating a loss in the principal. Newer bonds will have a higher interest rate...
by Munir
Thu Jan 12, 2017 10:04 pm
Forum: Investing - Theory, News & General
Topic: Bogle says 50-50 short/intermediate bonds
Replies: 45
Views: 5461

Re: Bogle says 50-50 short/intermediate bonds

How can one watch the whole interview or read a transcript without becoming a "member" of CNBC? All I get pn the web site is a short clip of the interview dealing with Trump when I want to hear/see what Bogle says about bonds.
by Munir
Sun Jan 08, 2017 3:18 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on choosing a Vanguard bond fund
Replies: 25
Views: 7954

Re: Advice on choosing a Vanguard bond fund

Jack Bogle's statement that the Total Bond Market Fund (VBTLX) is over-loaded with US government instruments is correct and that one can safely increase the total return by adding investment quality corporate bonds. The word "risk" has been used loosely as a scare tactic that keeps investo...
by Munir
Sun Jan 08, 2017 2:43 pm
Forum: Investing - Theory, News & General
Topic: Bogle worried Vanguard is getting too big
Replies: 68
Views: 11553

Re: Bogle worried Vanguard is getting too big

It's clear that different groups of investors have varying needs and expectations from Vanguard. I have had Vanguard for decades and have been very happy with their service and competence on all levels (I'm a Flagship client). However, my needs are minimal and I only get in touch with them 2-3x/year...
by Munir
Sat Jan 07, 2017 1:18 pm
Forum: Investing - Theory, News & General
Topic: Treasury returns historically almost match corporate bonds?
Replies: 9
Views: 841

Re: Treasury returns historically almost match corporate bonds?

If you look at the Vanguard chart for intermediate bond funds you can see the significant difference in total return between treasury and corporate funds i.e. corporates ahead. Theoretical arguments about long term scenarios are mere speculations. Call risks and defaults among the Vanguard quality c...
by Munir
Sat Jan 07, 2017 10:23 am
Forum: Investing - Theory, News & General
Topic: Thoughts on a Bogle quote
Replies: 29
Views: 2347

Re: Thoughts on a Bogle quote

Toons wrote:
joe8d wrote:I've come to the opinion that one only needs TSM or S&P 500 for stock allocation.



+1
One doesn't really need more to attain financial goals.


+1.
by Munir
Fri Jan 06, 2017 5:28 pm
Forum: Investing - Help with Personal Investments
Topic: M*: "Bond Fund Duration May Overstate Rate Sensitivity"
Replies: 1
Views: 274

M*: "Bond Fund Duration May Overstate Rate Sensitivity"

http://news.morningstar.com/articlenet/article.aspx?id=786602 A M* article on bond fund durations dated 1/5/17 on their web site is full of graphs and calculations dealing with reported durations vs. empirical durations. It concludes with this statement: "The takeaways for investors are twofold...
by Munir
Thu Jan 05, 2017 11:02 am
Forum: Investing - Help with Personal Investments
Topic: Choice Of Bond Funds For Retirees Late In Life
Replies: 11
Views: 1599

Re: Choice Of Bond Funds For Retirees Late In Life

Unless you have a " time certain" DOA date of 10 years Max., I'd just keep a diversified bond folio in any DCP' s , and laddered tax exempts in the taxable portion like I have. (We're in our mid seventies.) we are keeping a 40/60 folio for now until about age 80 when I plan on another &qu...
by Munir
Tue Jan 03, 2017 5:51 pm
Forum: Investing - Help with Personal Investments
Topic: Choice Of Bond Funds For Retirees Late In Life
Replies: 11
Views: 1599

Re: Choice Of Bond Funds For Retirees Late In Life

Thank you for all the responses. I will be transferring some funds from intermediate bond funds and purchase the Short Term Investment Grade Fund from which I will withdraw necessary distributions such as RMDs.
by Munir
Tue Jan 03, 2017 1:22 am
Forum: Investing - Help with Personal Investments
Topic: Bond Duration for Retiree?
Replies: 4
Views: 798

Re: Bond Duration for Retiree?

If you are in the RMD phase, or just planning to liquidate some of your bond funds, it would be worthwhile to have a portion of your IRA portfolio in short term bond funds so as not to be forced to liquidate intermediate funds when you don't want to. This is especially important in a rising rate env...
by Munir
Mon Jan 02, 2017 1:12 pm
Forum: Investing - Help with Personal Investments
Topic: Choice Of Bond Funds For Retirees Late In Life
Replies: 11
Views: 1599

Re: Choice Of Bond Funds For Retirees Late In Life

arcticpineapplecorp: Thank you for your reply. My main concern is the value of the fixed income portion of my portfolio over the next ten years-- which is my timeline. 70% of the portfolio is in fixed income and about 80% of that in bond funds- all intermediate. Should I shift some of those intermed...
by Munir
Mon Jan 02, 2017 11:38 am
Forum: Investing - Help with Personal Investments
Topic: Choice Of Bond Funds For Retirees Late In Life
Replies: 11
Views: 1599

Re: Choice Of Bond Funds For Retirees Late In Life

Yeah, you might shift a bit more to lower duration on average or just do some liability matching, like with a TIPS ladder for at least part of your fixed income. Or CD ladder, if you're willing to trade inflation risk for perhaps a bit higher expected return. If there is a succession of interest ra...
by Munir
Sun Jan 01, 2017 8:49 pm
Forum: Investing - Help with Personal Investments
Topic: Choice Of Bond Funds For Retirees Late In Life
Replies: 11
Views: 1599

Choice Of Bond Funds For Retirees Late In Life

It is often mentioned that the "sweet spot" in bond fund investment is the intermediate bond fund. For a retiree in his late seventies or over whose life expectancy is less than 10 years, I wonder how applicable that advice is unless one is planning to leave the bulk of the portfolio to hi...
by Munir
Fri Dec 30, 2016 6:17 pm
Forum: Investing - Theory, News & General
Topic: What's up with VBMFX? [Vanguard Total Bond Market]
Replies: 33
Views: 4209

Re: What's up with VBMFX? [Vanguard Total Bond Market]

novicemoney: I stand corrected. ogd is more knowledgeable in these matters than I am.
by Munir
Fri Dec 30, 2016 4:32 pm
Forum: Investing - Theory, News & General
Topic: What's up with VBMFX? [Vanguard Total Bond Market]
Replies: 33
Views: 4209

Re: What's up with VBMFX? [Vanguard Total Bond Market]

ogd: Thank you for the response and your patience. Since I am 79 years old with a life expectancy of 10 years at best, does that mean it will take 12 years to get back to the original NAV? If so, it means I'm investing for my heirs :happy. It will take that long to get the original NAV plus the 2% ...
by Munir
Fri Dec 30, 2016 2:13 pm
Forum: Investing - Theory, News & General
Topic: What's up with VBMFX? [Vanguard Total Bond Market]
Replies: 33
Views: 4209

Re: What's up with VBMFX? [Vanguard Total Bond Market]

ogd: Thank you for the response and your patience. Since I am 79 years old with a life expectancy of 10 years at best, does that mean it will take 12 years to get back to the original NAV? If so, it means I'm investing for my heirs :happy. It will take that long to get the original NAV plus the 2% ...
by Munir
Fri Dec 30, 2016 1:19 pm
Forum: Investing - Theory, News & General
Topic: What's up with VBMFX? [Vanguard Total Bond Market]
Replies: 33
Views: 4209

Re: What's up with VBMFX? [Vanguard Total Bond Market]

Looks like your return will turn positive by year 4. By year 12 (2x duration), you will exceed the original 2% return despite ongoing rate increases. You can see how the yield by that time (about 8%/year) is enough to pay for the yield increases, give you your original 2%, and a little extra. ogd: ...
by Munir
Fri Dec 30, 2016 11:48 am
Forum: Investing - Theory, News & General
Topic: What's up with VBMFX? [Vanguard Total Bond Market]
Replies: 33
Views: 4209

Re: What's up with VBMFX?

If rates keep rising every six months (for example), isn't the duration re-set every six months for the time it takes to return to your original NAV since the NAV will drop every time the rates rise? Doesn't this mean that one will recoup the original NAV only when rates stop rising- or what am I m...
by Munir
Thu Dec 29, 2016 9:06 pm
Forum: Investing - Theory, News & General
Topic: What's up with VBMFX? [Vanguard Total Bond Market]
Replies: 33
Views: 4209

Re: What's up with VBMFX?

If rates keep rising every six months (for example), isn't the duration re-set every six months for the time it takes to return to your original NAV since the NAV will drop every time the rates rise? Doesn't this mean that one will recoup the original NAV only when rates stop rising- or what am I mi...
by Munir
Wed Dec 28, 2016 11:21 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Total Bond Market v. Inter-Term Bond Index v. I-T Investment Grade Inv
Replies: 19
Views: 2184

Re: Vanguard Total Bond Market v. Inter-Term Bond Index v. I-T Investment Grade Inv

The only issue I have with the Bond Index Fund (VBILX) is the longer duration as compared to the other two especially that the Feds have promised a continuation of rising rates. I have substituted the Core Bond Fund (VCOBX) for the Bond Index Fund (VBILX) and thus ending up with Inter. Inv. Gr. (VFI...
by Munir
Tue Dec 27, 2016 4:01 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Total Bond Market v. Inter-Term Bond Index v. I-T Investment Grade Inv
Replies: 19
Views: 2184

Re: Vanguard Total Bond Market v. Inter-Term Bond Index v. I-T Investment Grade Inv

Doesn't the question of duration become more important in a rising interest rate environment especially for retirees who have 70% of their portfolio in bond funds? Moreover, the timeline for older retirees is not as long as for younger investors unless one is investing for the heirs.
by Munir
Mon Dec 26, 2016 2:32 pm
Forum: Investing - Help with Personal Investments
Topic: SPIA?
Replies: 5
Views: 530

Re: SPIA?

Hello everyone, Short of calling Vanguard, is there anyway to determine the approximate amount a $110,000 SPIA would deliver monthly to a 72-year-old? Wasn't sure if there was a Calculator out there were some other way of getting a ballpark estimate. Thank you, and happy holidays! Hueler Investment...
by Munir
Mon Dec 26, 2016 2:14 pm
Forum: Investing - Theory, News & General
Topic: Pimco Income Fund vs. Vanguard Total Bond Market
Replies: 51
Views: 3634

Re: Pimco Income Fund vs. Vanguard Total Bond Market

Unlike ofcmetz and Taylor I belive that active management in fixed income does not suffer from the high management cost and high transaction costs that you get in equity funds. In our Vanguard accounts I prefer their active bond funds to their indexed funds for FI. An active can easily avoid a low ...
by Munir
Sat Dec 17, 2016 8:16 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees: How much cash do you keep?
Replies: 103
Views: 8635

Re: Retirees: How much cash do you keep?

Of course. I don't know how it side tracks the thread to correct an error in the labeling of a relevant table. But no one corrected the table yet. I will write that I am not going to correct it, but I'll ask for volunteers to take the data in the table and create a new properly labelled table that ...
by Munir
Sat Dec 17, 2016 7:34 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees: How much cash do you keep?
Replies: 103
Views: 8635

Re: Retirees: How much cash do you keep?

livesoft wrote:^It's interesting, but if you go take the poll at that web site, it doesn't seem that anyone had any problems answering the poll.

(OK, maybe one voter had a problem.)


Maybe they are more intelligent than we are :D
by Munir
Sat Dec 17, 2016 5:19 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees: How much cash do you keep?
Replies: 103
Views: 8635

Re: Retirees: How much cash do you keep?

The Early Retired forum had a recent pol l on how much cash do folks keep. ... I think this presentation is mislabeled. The categories should not be "less than" but rather "between." However, the data is helpful. Congratulations. We have a winner in side tracking this thread. [I...
by Munir
Fri Dec 02, 2016 6:36 pm
Forum: Investing - Theory, News & General
Topic: What percentage of international do you hold?
Replies: 127
Views: 6216

Re: What percentage of international do you hold?

0% international- both equities and fixed income.
by Munir
Wed Nov 30, 2016 12:58 am
Forum: Personal Finance (Not Investing)
Topic: should I ask for referral bonus? (physician private practice)
Replies: 26
Views: 2002

Re: should I ask for referral bonus? (physician private practice)

How common are referral bonuses in physician group practices for members of that group? I have never heard of them in my medical community.
by Munir
Tue Nov 29, 2016 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: should I ask for referral bonus? (physician private practice)
Replies: 26
Views: 2002

Re: should I ask for referral bonus? (physician private practice)

I recently joined a private practice (as staff, non-partnership track). I am happy with job description/compensation/benefits/etc and subsequently referred a friend and former coresident of mine to the group. He subsequently signed on also for a staff position. Should I ask for a referral bonus fro...
by Munir
Tue Nov 29, 2016 10:52 am
Forum: Investing - Theory, News & General
Topic: "Where is the “Sweet Spot” for Passive Investing?"
Replies: 8
Views: 2274

Re: "Where is the “Sweet Spot” for Passive Investing?"

If you do not have enough money for an emergency fund to when you have enough money to consider multi-generational risk and want to buy 'insurance' of having assets throughout the world I cannot understand this post. Is it a one-sentence statement or a question, and what does it mean? If you do not...
by Munir
Tue Nov 29, 2016 2:30 am
Forum: Investing - Theory, News & General
Topic: "Where is the “Sweet Spot” for Passive Investing?"
Replies: 8
Views: 2274

Re: "Where is the “Sweet Spot” for Passive Investing?"

qwertyjazz wrote:If you do not have enough money for an emergency fund to when you have enough money to consider multi-generational risk and want to buy 'insurance' of having assets throughout the world


I cannot understand this post. Is it a one-sentence statement or a question, and what does it mean?
by Munir
Fri Nov 25, 2016 2:47 pm
Forum: Investing - Theory, News & General
Topic: "Bonds And The Good News About Rising Rates"
Replies: 15
Views: 2384

Re: "Bonds And The Good News About Rising Rates"

Thanks saltycaper. Looking forward to comments on his post.
by Munir
Mon Nov 21, 2016 10:59 am
Forum: Investing - Theory, News & General
Topic: "Vanguard Inflation-Protected Securities Is a Top Pick."
Replies: 23
Views: 3568

Re: "Vanguard Inflation-Protected Securities Is a Top Pick."

According to M*, VIPSX has done better than other Vanguard intermediate bond funds during the last month. But does that mean it will outperform on a long term basis as a core bond fund?
by Munir
Sun Nov 20, 2016 5:49 pm
Forum: Investing - Help with Personal Investments
Topic: Which Vanguard Intermediate Bond Fund Fund Has Outperformed During Last 3 Weeks?
Replies: 7
Views: 1339

Re: Which Vanguard Intermediate Bond Fund Fund Has Outperformed During Last 3 Weeks?

The question then arises whether or not the TIPS and GNMA funds could act as core fund holdings and whether their longer term results are as competitive as they have been for the past 3-4 weeks. Another variable is that no one know how long the interest rates will keep rising, and what happens to pe...
by Munir
Sun Nov 20, 2016 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: Which Vanguard Intermediate Bond Fund Fund Has Outperformed During Last 3 Weeks?
Replies: 7
Views: 1339

Re: Which Vanguard Intermediate Bond Fund Fund Has Outperformed During Last 3 Weeks?

The TIPS fund has done well recently in spite of a relatively long duration compared to the other funds mentioned of over 8 years. I have no explanation for that. Maybe someone can enlighten us.
by Munir
Sun Nov 20, 2016 12:54 am
Forum: Investing - Theory, News & General
Topic: What does a bond bear market look like?
Replies: 91
Views: 8506

Re: What does a bond bear market look like?

At our age, 70's, we are heavy on bonds and the NAV has been dropping since the shaky election , with a rate increase expected in December by the Fed. The end of each year we take a lump sum RMD (100% bonds in IRA's)which amounts to another pension. Hope things calm down by then in bonds, but it ha...
by Munir
Sat Nov 19, 2016 8:59 pm
Forum: Personal Consumer Issues
Topic: Michelin Premier AS, anyone have them?
Replies: 13
Views: 1216

Re: Michelin Premier AS, anyone have them?

I purchased them from Costco four months ago and have been very happy with their traction, low noise level, and performance generally.
by Munir
Sat Nov 19, 2016 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: Which Vanguard Intermediate Bond Fund Fund Has Outperformed During Last 3 Weeks?
Replies: 7
Views: 1339

Which Vanguard Intermediate Bond Fund Fund Has Outperformed During Last 3 Weeks?

I tried to compare how the major Vanguard intermediate bond funds have performed during the rise in interest rates over the past 3-4 weeks. The closest comparison I could find is the M* fund comparison chart. It showed that over the past month, the Total Bond Market Fund (VBTLX), the Intermediate In...
by Munir
Sat Nov 05, 2016 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: Mortgage Backed Securities (MBS) & Asset Backed Securities (ABS)
Replies: 11
Views: 1374

Mortgage Backed Securities (MBS) & Asset Backed Securities (ABS)

I have read about the definition of Mortgage Backed Securities (MBS) and Asset Backed Securities (ABS). As a novice, what I am trying to get a handle on is what does ownership of these assets by a mutual fund mean to the credit risk and interest rate risk of the fund? For example, on the spectrum of...
by Munir
Mon Oct 31, 2016 4:02 pm
Forum: Investing - Help with Personal Investments
Topic: New M* Review Article On Vanguard's Core Bond Fund
Replies: 4
Views: 872

Re: New M* Review Article On Vanguard's Core Bond Fund

I just noticed the three last conversations in an older thread on the same M* article above and a good graph. My apologies I did not see them earlier.

viewtopic.php?f=1&t=198779&start=50
by Munir
Mon Oct 31, 2016 10:43 am
Forum: Investing - Help with Personal Investments
Topic: New M* Review Article On Vanguard's Core Bond Fund
Replies: 4
Views: 872

New M* Review Article On Vanguard's Core Bond Fund

In an article dated October 30, Morningstar published a long article on the Vanguard Core Bond Fund (VCOBX) detailing its goals, strategy, style of management, and interviews with its managers. http://beta.morningstar.com/articles/775899/vanguard-goes-active-with-new-core-bond-fund.html Does it have...
by Munir
Fri Oct 28, 2016 8:15 am
Forum: Investing - Theory, News & General
Topic: Who disagrees with Jack. . .
Replies: 73
Views: 5852

Re: Who disagrees with Jack. . .

Since Argument By Authority is a fallacy, I don't agree with Jack just because he's Jack. In my judgement he's right on many things, but I don't agree with him on 'there's no need for international equity funds' and I share the OP's concern with adding more corporate bonds to the TBM. Jack's a livi...
by Munir
Sun Oct 23, 2016 2:44 pm
Forum: Investing - Theory, News & General
Topic: Who disagrees with Jack. . .
Replies: 73
Views: 5852

Re: Who disagrees with Jack. . .

I strongly agree with Jack on corporate bonds and on avoiding international holdings. The re-balancing is minor and the Social Security issue I avoid since it sounds too complicated.
by Munir
Tue Oct 04, 2016 7:10 pm
Forum: Investing - Theory, News & General
Topic: Which Bond Fund As Emergency Fund?
Replies: 39
Views: 4169

Re: Which Bond Fund As Emergency Fund?

Lieutenant.Columbo, Multiple respondents have suggested online savings accounts yielding slightly over 1% for your emergency fund but I don't recall you stating your opinion about such accounts. Do you have reservations about this option? Hi Munir, My only reservations about savings accounts yieldi...
by Munir
Tue Oct 04, 2016 3:55 pm
Forum: Investing - Theory, News & General
Topic: Which Bond Fund As Emergency Fund?
Replies: 39
Views: 4169

Re: Which Bond Fund As Emergency Fund?

Lieutenant.Columbo,

Multiple respondents have suggested online savings accounts yielding slightly over 1% for your emergency fund but I don't recall you stating your opinion about such accounts. Do you have reservations about this option?

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