Search found 6295 matches

by Phineas J. Whoopee
Sun Jun 25, 2017 4:54 pm
Forum: Investing - Theory, News & General
Topic: Amazon Buys Whole Foods
Replies: 103
Views: 10095

Re: Amazon Buys Whole Foods

I've come across speculation that Amazon means to use the physical presence to begin addressing the last mile problem, which is that distribution networks are pretty efficient these days except when it comes to delivering individual packages to individual end purchasers. The speculation was Amazon p...
by Phineas J. Whoopee
Sun Jun 25, 2017 3:10 pm
Forum: Investing - Theory, News & General
Topic: Good Article on Bubbles and Staying the Course
Replies: 22
Views: 2360

Re: Good Article on Bubbles and Staying the Course

Hi Dude2. I directly address that aspect of the misunderstanding in the post I linked to, link repeated for your convenience. It's in the middle section about market mechanics.
PJW
by Phineas J. Whoopee
Sun Jun 25, 2017 2:25 pm
Forum: Investing - Theory, News & General
Topic: Good Article on Bubbles and Staying the Course
Replies: 22
Views: 2360

Re: Good Article on Bubbles and Staying the Course

Dude2 wrote:...
Doesn't EMH tell us that we can't beat the market? IOW, prices reflect true value.
...

No, it does not tell us that, although it is widely misunderstood to. I wrote a post about what it really does say a couple of years ago
PJW
by Phineas J. Whoopee
Sun Jun 25, 2017 12:02 am
Forum: Investing - Theory, News & General
Topic: 5% of portfolio balance a better SWR than 3-4% inflation-adjusted?
Replies: 20
Views: 1759

Re: 5% of portfolio balance a better SWR than 3-4% inflation-adjusted?

CurlyDave wrote:...
BTW, 5% non-adjusted is always safe in that you will never run out of money.

Although spending may be constrained if the portfolio value falls below $0.20. :wink:
PJW
by Phineas J. Whoopee
Sat Jun 24, 2017 11:07 pm
Forum: Investing - Theory, News & General
Topic: Buying shares vs buying outright
Replies: 3
Views: 464

Re: Buying shares vs buying outright

Amazon recently purchased Whole Foods for more than the current share price . It makes me wonder why people prefer to buy a business outright vs buying shares of a business. ... Hi Confuscious. Let's see if I can shed more light than heat. The current share price as you called it, and that's a perf...
by Phineas J. Whoopee
Sat Jun 24, 2017 9:25 pm
Forum: Investing - Help with Personal Investments
Topic: Can you share some of your financial goals?
Replies: 34
Views: 2668

Re: Can you share some of your financial goals?

My personal investing mission statement, which developed over years out from two earlier objectives, only the second of which I could articulate at that time, and which took ever so long to formulate then even longer to express compactly, as I've posted before is: To meet my future financial needs, ...
by Phineas J. Whoopee
Sat Jun 24, 2017 8:56 pm
Forum: Investing - Theory, News & General
Topic: 5% of portfolio balance a better SWR than 3-4% inflation-adjusted?
Replies: 20
Views: 1759

Re: 5% of portfolio balance a better SWR than 3-4% inflation-adjusted?

Better is quite a word. I'd like to take this opportunity to point out the 'S' in 'SWR' means 'sustainable,' although much of the press misreports it as 'safe.' There is no way to find out if the WR, withdrawal rate, was sustainable or safe until the person taking the withdrawals no longer has any ...
by Phineas J. Whoopee
Sat Jun 24, 2017 7:51 pm
Forum: Investing - Help with Personal Investments
Topic: How does Fidelity makes money, if I own all Vanguard funds or ETFs
Replies: 46
Views: 3255

Re: How does Fidelity makes money, if I own all Vanguard funds or ETFs

How do credit card companies make money when they offer 2% cash back and you always pay your full bill - meaning no interest? They charge the merchants transaction processing fees in excess of the amount they rebate to you. PJW Not always, as the link above shows. BoA is losing money on those cards...
by Phineas J. Whoopee
Sat Jun 24, 2017 6:47 pm
Forum: Investing - Help with Personal Investments
Topic: How does Fidelity makes money, if I own all Vanguard funds or ETFs
Replies: 46
Views: 3255

Re: How does Fidelity makes money, if I own all Vanguard funds or ETFs

rebellovw wrote:How do credit card companies make money when they offer 2% cash back and you always pay your full bill - meaning no interest?

They charge the merchants transaction processing fees in excess of the amount they rebate to you.
PJW
by Phineas J. Whoopee
Sat Jun 24, 2017 6:44 pm
Forum: Investing - Help with Personal Investments
Topic: Lump sum investing in stocks vs. DCA
Replies: 44
Views: 2214

Re: Lump sum investing in stocks vs. DCA

... Yes, but only at that point. Before you enjoyed a period of time with less risk , i.e. less risk overall. If I may, I believe the point is you can enjoy a perpetual period of time with less risk , by choosing a less-risky asset allocation . If lower but steadily increasing risk over, say, twelv...
by Phineas J. Whoopee
Sat Jun 24, 2017 6:19 pm
Forum: Investing - Help with Personal Investments
Topic: How does Fidelity makes money, if I own all Vanguard funds or ETFs
Replies: 46
Views: 3255

Re: How does Fidelity makes money, if I own all Vanguard funds or ETFs

I don't know specifically about privately-held Fidelity with few disclosure requirements, but there are many ways financial intermediaries make money that don't show up as line item charges to their customers. This is just off the top of my head. No doubt there are more. They lend out your securitie...
by Phineas J. Whoopee
Sat Jun 24, 2017 5:30 pm
Forum: Investing - Theory, News & General
Topic: Explaining a Bogle quote
Replies: 18
Views: 986

Re: Explaining a Bogle quote

The added risk of foreign market is reflected in their valuations , when it does exist. Why would cap weighing work in the US, but not in the World ? I'm writing to add, not to disagree with what you said. For a truly global truly average investor, taking institutions and sovereign wealth funds int...
by Phineas J. Whoopee
Sat Jun 24, 2017 5:00 pm
Forum: Investing - Theory, News & General
Topic: Thoughts about tilting away from the sector you work in?
Replies: 25
Views: 1486

Re: Thoughts about tilting away from the sector you work in?

Our son who is in tech, does the traditional major vanguard funds, total, mid and value (no bonds) and his discretionary investments are individual tech stocks and a couple of blackrock indexes. He has been fortunate that he started major investing in 2008. His portfolios would still look good in i...
by Phineas J. Whoopee
Wed Jun 21, 2017 12:07 pm
Forum: Investing - Theory, News & General
Topic: Thoughts about tilting away from the sector you work in?
Replies: 25
Views: 1486

Re: Thoughts about tilting away from the sector you work in?

I think it's worth noticing. The most I ever did in practice was to reduce and when good opportunity arose eliminate holdings in my employer's stock, acquired via option and restricted share grants, that sort of thing. I'm certainly grateful to have had the opportunity to be awarded them.
PJW
by Phineas J. Whoopee
Wed Jun 21, 2017 11:45 am
Forum: Investing - Theory, News & General
Topic: Argentina issuing 100-year bond.
Replies: 64
Views: 5476

Re: Argentina issuing 100-year bond.

Great Britain, prior to its becoming the United Kingdom in 1801, issued consols , which had a face value and a coupon but not a maturity date, initially in 1751. The most recent tranche came in 1923, to refinance some of the UK's debt from WW1. The government could call them at any time. It paid off...
by Phineas J. Whoopee
Tue Jun 20, 2017 10:28 pm
Forum: Personal Finance (Not Investing)
Topic: Co-workers advising to buy house RIGHT NOW
Replies: 62
Views: 5397

Re: Co-workers advising to buy house RIGHT NOW

I say let the cow-orkers who think it's a good time to buy a house right now, buy a house right now. Perhaps one of them is willing to rent it to you at a reasonable market rate. Buying a house, in my opinion, is more a long-term personal finance matter than an attempt to time a volatile market. I b...
by Phineas J. Whoopee
Tue Jun 20, 2017 9:13 pm
Forum: Investing - Help with Personal Investments
Topic: Details on Bloomberg Barclays bond benchmarks?
Replies: 6
Views: 325

Re: Details on Bloomberg Barclays bond benchmarks?

You can download the index fact sheet from this Bloomberg indices page. It describes the float-adjusted variant on p. 5. I would note it speaks of central governments, not the Fed which is a central bank but not a government. Many central governments around the globe own US bonds.
PJW
by Phineas J. Whoopee
Mon Jun 19, 2017 12:58 pm
Forum: Personal Consumer Issues
Topic: NYC coop
Replies: 12
Views: 1173

Re: NYC coop

Because of the legal implications, noted above, of a co-op unit really being a long-term lease plus non-public shares, which are personal property, the sale of which can be restricted, as opposed to real property where the owner is protected against most restrictions, a co-op unit commands a lower p...
by Phineas J. Whoopee
Sat Jun 17, 2017 3:48 pm
Forum: Personal Consumer Issues
Topic: Poaching chicken
Replies: 50
Views: 3714

Re: Poaching chicken

Deleted due to the followup.
PJW
by Phineas J. Whoopee
Sat Jun 17, 2017 11:58 am
Forum: Investing - Theory, News & General
Topic: Market Monitoring -- Best Practices?
Replies: 33
Views: 1351

Re: Market Monitoring -- Best Practices?

I evaluate periodically to see if my rebalance band has been breached. If it has, I bring everything back to target, taking any resulting income tax into account. The period has been as long as a quarter and as short as a week. In truth it makes no difference.
PJW
by Phineas J. Whoopee
Sat Jun 17, 2017 11:48 am
Forum: Investing - Theory, News & General
Topic: Your Favorite Portfolio Tilts
Replies: 85
Views: 5726

Re: Your Favorite Portfolio Tilts

I hold US stocks at higher than market cap vs. international because I expect my future expenses to be denominated in US dollars, so I take account of currency risk by mildly reducing international. I hold inflation-protected fixed income at far more than market weight because, by my own analysis, I...
by Phineas J. Whoopee
Fri Jun 16, 2017 10:18 pm
Forum: Investing - Theory, News & General
Topic: How Does Fed Reduce Balance Sheet?
Replies: 24
Views: 2307

Re: How Does Fed Reduce Balance Sheet?

... The part I can't understand is how is all this connected to the stock market? If QE inflated the stock market then why aren't people worried the unwinding of QE will deflate the stock market? For years people attributed the rise in the market to QE. There is no worries that it's all going to be...
by Phineas J. Whoopee
Fri Jun 16, 2017 9:09 pm
Forum: Investing - Theory, News & General
Topic: How Does Fed Reduce Balance Sheet?
Replies: 24
Views: 2307

Re: How Does Fed Reduce Balance Sheet?

Just want to thank all who spent a few minutes to explain how it works with the Fed redeeming bonds. Sifting through all the replies I gather that the Fed borrows cash from the Treasury and used it to do the QE program. Then that would explain how the Feds balance sheet can be reduced by returning ...
by Phineas J. Whoopee
Thu Jun 15, 2017 10:52 pm
Forum: Investing - Theory, News & General
Topic: How Does Fed Reduce Balance Sheet?
Replies: 24
Views: 2307

Re: How Does Fed Reduce Balance Sheet?

If I may add a bit of detail, of course bonds mature. Mortgage-backed bonds do so gradually, because the homeowners pay back some principal along with interest every month. After the Fed stopped its long-term bond buying program, it maintained the status quo by reinvesting matured capital. It's talk...
by Phineas J. Whoopee
Thu Jun 15, 2017 10:28 pm
Forum: Investing - Theory, News & General
Topic: What growth rate for your projection calcs?
Replies: 31
Views: 2501

Re: What growth rate for your projection calcs?

I use zero percent real. Most likely it will turn out to be more, which will mean I'll be able to increase spending faster than general inflation. How well my own personal expenses will correlate with it, because CPI is based on a standardized basket of goods and services and nationwide average pric...
by Phineas J. Whoopee
Thu Jun 15, 2017 10:20 pm
Forum: Investing - Help with Personal Investments
Topic: Bond funds vs bonds (yes, again)
Replies: 16
Views: 1348

Re: Bond funds vs bonds (yes, again)

Hi retiringtype, I don't disagree with grabiner, or dbr, or lack_ey, or most others. I'm writing not to argue, but to explain it in a slightly different way. I'm not claiming others have not adequately made these points. Maybe a different approach will help you. We can go in endless circles around h...
by Phineas J. Whoopee
Thu Jun 15, 2017 9:02 pm
Forum: Investing - Theory, News & General
Topic: When you purchase shares, where does the money go?
Replies: 19
Views: 1504

Re: When you purchase shares, where does the money go?

When a company issues new shares and sells them, which is called the primary market , there's a price they get for them which is determined by the marketplace, although many of the intermediaries are different and the fees are usually higher than when individuals or institutions buy and sell among t...
by Phineas J. Whoopee
Mon Jun 12, 2017 3:09 pm
Forum: Investing - Theory, News & General
Topic: Ok reasons for a 37 year old to have a 60/40 mix?
Replies: 39
Views: 3676

Re: Ok reasons for a 37 year old to have a 60/40 mix?

Your reasoning looks good to me.

Here's what I did, a non-age-based asset allocation approach, and a couple of years later I answered some questions about it.

To be clear, I think an age-based allocation strategy will be far more practical for most investors.

PJW
by Phineas J. Whoopee
Mon Jun 12, 2017 1:12 pm
Forum: Personal Consumer Issues
Topic: College admissions question - she got a "C"
Replies: 100
Views: 7829

Re: College admissions question - she got a "C"

staythecourse wrote:...
Are there liberal arts schools? Yes. So if I need to correct for that yes, but then you need to correct your assertion that one does "college" for any of the above fields.
...

Now I get it. You and I have different understandings of the meaning of the English word college.
PJW
by Phineas J. Whoopee
Sun Jun 11, 2017 4:02 pm
Forum: Personal Consumer Issues
Topic: College admissions question - she got a "C"
Replies: 100
Views: 7829

Re: College admissions question - she got a "C"

In my second to last semester of my bachelor's program I received a C in an advanced but core course in one of my majors, just as I was sending transcripts to grad schools. I phoned the department immediately, but the instructor could not be contacted until the spring semester started. I wrote to th...
by Phineas J. Whoopee
Sun Jun 11, 2017 3:46 pm
Forum: Personal Consumer Issues
Topic: College admissions question - she got a "C"
Replies: 100
Views: 7829

Re: College admissions question - she got a "C"

staythecourse wrote:...
That is the a VERY U.S. centric point of view. You have been brainwashed for so long you don't realize it. There are MANY countries (including the largest population in the world, i.e. India) that has no college. ...

Your assertion is false on its face.
PJW
by Phineas J. Whoopee
Sun Jun 11, 2017 2:09 pm
Forum: Investing - Theory, News & General
Topic: Bogle Doubles Down on US Index Funds
Replies: 118
Views: 11914

Re: Bogle Doubles Down on US Index Funds

From another recent interview with Mr. Bogle: "So if people knew they were putting 45% of their so-called international, non-US, money in Great Britain, France and Japan — I mean every one of those three countries has real problems," Bogle said. "The French don’t work very hard, The ...
by Phineas J. Whoopee
Sun Jun 11, 2017 1:41 pm
Forum: Investing - Theory, News & General
Topic: Troublesome and questionable change in I-ORP Social Security Calculations
Replies: 16
Views: 1266

Re: Troublesome and questionable change in I-ORP Social Security Calculations

... It would have been so much better if SS had been settleed long befor this. It was , in 1983. One of its selling points, which helped get it passed, is it can't add to the federal deficit because the law limits the Social Security Administration to pay out only what it receives, including spendi...
by Phineas J. Whoopee
Sat Jun 10, 2017 2:53 pm
Forum: Investing - Help with Personal Investments
Topic: How to divide investments for early retirement
Replies: 16
Views: 1989

Re: How to divide investments for early retirement

With respect to Substantially Equal Periodic Payments, SEPP, under section 72(t) of Congress's Internal Revenue Code , I'd like to make several points. 1) As noted above, SEPP law is very rigid. You can start out right, then years later mess it up, called busting the plan, and owe years of back exci...
by Phineas J. Whoopee
Fri Jun 09, 2017 7:39 pm
Forum: Investing - Theory, News & General
Topic: "Here's why bonds still belong in your portfolio."
Replies: 8
Views: 2173

Re: "Here's why bonds still belong in your portfolio."

... Regardless of reactions to Fed interest rate changes, it still makes sense over the long term to include bonds in your portfolio. Bonds help offset potential downturns in stocks, in part because their prices tend to rise when equity prices fall , but also because of the income they provide thro...
by Phineas J. Whoopee
Fri Jun 09, 2017 6:08 pm
Forum: Investing - Theory, News & General
Topic: Why does S&P PE ratio matter
Replies: 30
Views: 1480

Re: Why does S&P PE ratio matter

... ... If it was, everyone WOULD use it, which then of course would cause it not to work anymore :oops: Doesn't this apply to index funds too? No, because indexing, at least total-market indexing, is not an attempt to beat the market. In aggregate investors hold the entire cap-weighted market, the...
by Phineas J. Whoopee
Fri Jun 09, 2017 6:04 pm
Forum: Investing - Theory, News & General
Topic: Why does S&P PE ratio matter
Replies: 30
Views: 1480

Re: Why does S&P PE ratio matter

BogleAlltheWay wrote:...
I was confusing the ratios. These articles are suggesting that it has paid off to use CAPE ratio to time the market. If it is that easy, why doesn't everyone do it?

Setting aside its being easy, if everybody used a sure-fire strategy to beat the market, would everybody beat the market?
PJW
by Phineas J. Whoopee
Fri Jun 09, 2017 5:53 pm
Forum: Investing - Help with Personal Investments
Topic: How to divide investments for early retirement
Replies: 16
Views: 1989

Re: How to divide investments for early retirement

If you retire in the year you turn 55, your retirement accounts can be accessed without penalty. (That's 900 or so days away for me, but who's counting? :D ) Not traditional IRAs. I only know of that possibility for employer-sponsored accounts like 401(k)s if you separate from service in the year y...
by Phineas J. Whoopee
Thu Jun 08, 2017 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: Health insurance advice when leaving a job
Replies: 8
Views: 883

Re: Health insurance advice when leaving a job

Hi elephantstone, Anybody not otherwise covered can buy a health insurance plan on an exchange, without revealing income or asking for any financial assistance. Also, anybody can buy an off-exchange ACA-compliant plan. You may be referring to the Premium Tax Credit . You are eligible for the PTC if ...
by Phineas J. Whoopee
Thu Jun 08, 2017 2:07 pm
Forum: Investing - Theory, News & General
Topic: Emerging Markets Index Missing Big Names
Replies: 30
Views: 3029

Re: Emerging Markets Index Missing Big Names

The diversification is there no matter whether there is a concrete current benefit. It is a good point that while some diversifications are beneficial, others can be detrimental. How do you, jalbert, determine which ones those are in advance, assuming beneficial means higher risk-adjusted returns o...
by Phineas J. Whoopee
Thu Jun 08, 2017 1:28 pm
Forum: Investing - Theory, News & General
Topic: Stocks to Bonds Relationship
Replies: 23
Views: 1847

Re: Stocks to Bonds Relationship

Nobody doesn't necessarily include corporate bodies, that is to say legal but not natural persons. Before some nominal sovereign rates went negative, it was widely believed that no entity would be able to issue and successfully sell a bond with negative nominal yield. We can look back in hindsight ...
by Phineas J. Whoopee
Wed Jun 07, 2017 6:45 pm
Forum: Investing - Theory, News & General
Topic: Stocks to Bonds Relationship
Replies: 23
Views: 1847

Re: Stocks to Bonds Relationship

In June 2016 the entire yield curve of Swiss sovereign debt was negative. I generally agree that there should be practical limits to how low this can go, but only a few years ago, it was considered a given that nobody would ever buy a bond with a negative yield. No body doesn't necessarily include ...
by Phineas J. Whoopee
Wed Jun 07, 2017 6:19 pm
Forum: Investing - Help with Personal Investments
Topic: How do I get monthly checks from my investments in retirement?
Replies: 15
Views: 2544

Re: How do I get monthly checks from my investments in retirement?

... Vanguard has managed payout fund. https://personal.vanguard.com/us/funds/snapshot?FundIntExt=INT&FundId=1498 I don't think a lot of people here recommend it because they can manage their portfolio and payouts at a slightly lower expense, as well as the timing of their disbursements, but if ...
by Phineas J. Whoopee
Wed Jun 07, 2017 6:00 pm
Forum: Investing - Help with Personal Investments
Topic: Moving from Edward Jones to Fidelity - Pros/Cons of Index funds
Replies: 12
Views: 1200

Re: Moving from Edward Jones to Fidelity - Pros/Cons of Index funds

It seems as if the reasoning leading one to the Contrafund must be everybody is stupid except me.
PJW
by Phineas J. Whoopee
Wed Jun 07, 2017 5:54 pm
Forum: Personal Finance (Not Investing)
Topic: question about Social Security indexing
Replies: 4
Views: 678

Re: question about Social Security indexing

Up until age 60 the calculation is indexed not to inflation, but to overall wage growth . From 62 it's indexed to CPI-W . The reason for the gap is the wage index isn't known until well into the following year. At 62 your earning record is calculated based on the wage index from when you were 60. Fr...
by Phineas J. Whoopee
Tue Jun 06, 2017 5:16 pm
Forum: Personal Consumer Issues
Topic: Suit for [medical] residency interviews
Replies: 57
Views: 3175

Re: Suit for residency interviews

I am not now, nor have I ever been, a member of the medical siblinghood. That said, I've had high-stakes interviews, and I've conducted them. My opinion is a good suit won't get you an offer, but a bad enough one will prevent it. Your color choices are fine. If you're interviewing in the Washington-...

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