Search found 6818 matches

by Phineas J. Whoopee
Sun Feb 18, 2018 6:43 pm
Forum: Forum Issues and Administration
Topic: Fewer Readers Despite Continued Market Volatility
Replies: 7
Views: 587

Fewer Readers Despite Continued Market Volatility

Ten days ago I saw hundreds of registered users and lurkers reading. Today, on a weekend evening, it's back to normal, despite the past week's volatility. Can it be that our reader numbers increase with the market being volatile down, but decrease with it being volatile up? Maybe volatility only app...
by Phineas J. Whoopee
Sun Feb 18, 2018 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: Muni Bond market
Replies: 8
Views: 536

Re: Muni Bond market

Speaking of foreign investors, if they are not subject to US income tax why would they prefer lower-returning municipal bonds to higher-returning taxable bonds?
PJW
by Phineas J. Whoopee
Sun Feb 18, 2018 1:55 pm
Forum: Investing - Theory, News & General
Topic: Fixed Income is an Appropriate Term
Replies: 7
Views: 1099

Re: Fixed Income is an Appropriate Term

Hi Beensabu. I'm sorry it took me longer than I said to write a reply, even though the post is shorter than I thought it would be. Due to the recent terrible news event I found myself with the time but without the heart to draft a technical reply about bonds until today. I would like to learn from y...
by Phineas J. Whoopee
Sat Feb 17, 2018 1:44 pm
Forum: Investing - Help with Personal Investments
Topic: cybertheft from brokerage and retirement accounts after Equifax identity theft
Replies: 23
Views: 2774

Re: cybertheft from brokerage and retirement accounts after Equifax identity theft

neilpilot wrote:
Fri Feb 16, 2018 3:59 pm
...
OK. This is a real threat but maybe a very low probability. Still looking for a real example.
What if nobody here supplies an example you feel is real? What will you conclude?

PJW
by Phineas J. Whoopee
Fri Feb 16, 2018 2:37 pm
Forum: Investing - Help with Personal Investments
Topic: cybertheft from brokerage and retirement accounts after Equifax identity theft
Replies: 23
Views: 2774

Re: cybertheft from brokerage and retirement accounts after Equifax identity theft

It's a serious concern. I agree two-factor authentication (sometimes called other names) is a good place to start. This bit takes work, but it's what I do: At least weekly I log in to all my financial accounts, and among other things make sure we agree on what I own (whether dollars or shares). And ...
by Phineas J. Whoopee
Wed Feb 14, 2018 1:08 pm
Forum: Investing - Theory, News & General
Topic: Fixed Income is an Appropriate Term
Replies: 7
Views: 1099

Re: Fixed Income is an Appropriate Term

Hi Beensabu. I intend to discuss your questions, which are good ones and probably widely shared. You display a nice level of knowledge, and there's more I can help clarify. For those reasons I want to take care in drafting my response, but I don't think I have time today. I'll get back to you, proba...
by Phineas J. Whoopee
Tue Feb 13, 2018 8:36 pm
Forum: Investing - Theory, News & General
Topic: Fixed Income is an Appropriate Term
Replies: 7
Views: 1099

Fixed Income is an Appropriate Term

It's become fashionable around here to say fixed income is neither fixed nor income. The expression refers to coupons of plain vanilla bonds (no weird terms and conditions, T&C). Under that constraint, the coupons are fixed, and they are income. We can argue over whether a bond fund should be descri...
by Phineas J. Whoopee
Mon Feb 12, 2018 4:01 pm
Forum: Investing - Help with Personal Investments
Topic: Ally Bank no penalty CD withdrawal
Replies: 5
Views: 1051

Re: Ally Bank no penalty CD withdrawal

I'm confident Ally uses the right formula for the calculations. I'm not confident about everything they do, but I'm confident about that. The one time I withdrew early from no-penalty CDs with them the customer service representative asked me why. My reply was the question would be valid coming from...
by Phineas J. Whoopee
Sun Feb 11, 2018 6:08 pm
Forum: Investing - Theory, News & General
Topic: Fidelity halts investor purchases of three VIX-focused ETFs
Replies: 12
Views: 1291

Re: Fidelity halts investor purchases of three VIX-focused ETFs

denovo wrote:
Sun Feb 11, 2018 5:57 pm
Is anyone bothered by this? I don't think a self-directed brokerage should be squashing investment products unless it's something they are absolutely convinced is a Madoff-like scam or ponzi scheme.
You're free to switch brokers.

PJW
by Phineas J. Whoopee
Sun Feb 11, 2018 2:22 pm
Forum: Investing - Theory, News & General
Topic: how did you determine your risk tolerance?
Replies: 103
Views: 4815

Re: how did you determine your risk tolerance?

Here's what I did , and a couple of years later I answered some questions about it . I offer it not as a prescription, but as a contrasting angle, to throw more light on the overall question and expose more of its contours. For the record, I think an age-based asset allocation approach will be far ...
by Phineas J. Whoopee
Fri Feb 09, 2018 6:04 pm
Forum: Investing - Theory, News & General
Topic: Active v. passive during corrections
Replies: 21
Views: 1910

Re: Active v. passive during corrections

What an individual fund does on any given day, week, or decade isn't important. What is important is the behavior of the portfolio as a whole. My 100% stock index funds follow the market. My portfolio fluctuates less than they because I include a substantial portion of fixed income. I decide how muc...
by Phineas J. Whoopee
Fri Feb 09, 2018 5:39 pm
Forum: Personal Consumer Issues
Topic: What do to following a Trojan horse clean-up?
Replies: 6
Views: 734

Re: What do to following a Trojan horse clean-up?

If you maintain strict data backup discipline, and are prepared to return to original factory settings then wait for all the cumulative updates, you're immune except for some annoyance and time. I make a weekly data backup to an external hard drive that is never plugged in unless I'm actively using ...
by Phineas J. Whoopee
Fri Feb 09, 2018 5:21 pm
Forum: Investing - Help with Personal Investments
Topic: Cashed out 401K for rollover IRA, what would you do now in this decline and volatility?
Replies: 5
Views: 541

Re: Cashed out 401K for rollover IRA, what would you do now in this decline and volatility?

I agree with retiredjg, and would like to add more. If you were not moving your old 401(k) to a rollover IRA, would you have sold everything and gone to cash? If not, the right answer is to invest immediately in your chosen asset allocation. If it made sense for you to stay in cash, would it make se...
by Phineas J. Whoopee
Thu Feb 08, 2018 8:11 pm
Forum: Personal Consumer Issues
Topic: Brokerage sweep fund- not worth the trouble
Replies: 5
Views: 576

Re: Brokerage sweep fund- not worth the trouble

I've successfully used just a few cents in leftover interest to buy mutual funds I already own. Maybe you could try doing something like that. You'll still have a sweep fund, but it will have a zero balance. If that latter part is important to you, wait until the first business day of the following ...
by Phineas J. Whoopee
Thu Feb 08, 2018 5:28 pm
Forum: Personal Consumer Issues
Topic: Suggest coffee maker please
Replies: 98
Views: 5363

Re: Suggest coffee maker please

I agree with the suggestion of a purpose-designed pour-over model, as opposed to a drip coffee maker with hot water applied. For more than two decades I've been happy with my Militta plastic cone with a readily-available #2 filter in it. Very little coffee ends up being absorbed into the filter. The...
by Phineas J. Whoopee
Thu Feb 08, 2018 5:07 pm
Forum: Personal Finance (Not Investing)
Topic: Do I have to pay taxes on a bank checking account bonus?
Replies: 16
Views: 1599

Re: Do I have to pay taxes on a bank checking account bonus?

I found an interesting comment on Bankrate.com about credit card rewards: "The IRS thinks of the rewards as a discount on the purchase rather than some kind of gain in income or wealth. These “rebates” include cash back, miles or points toward merchandise." https://www.bankrate.com/finance/credit-c...
by Phineas J. Whoopee
Thu Feb 08, 2018 12:50 am
Forum: Personal Finance (Not Investing)
Topic: free dinner investing seminar
Replies: 223
Views: 13786

Re: free dinner investing seminar

... Why would it ever be necessary to follow up a "NO?" If that really happened I would think a H$LL NO would be the right response. Some of you just don't understand how to enjoy a free steak. Because, to echo Finridge's comment above, they carefully engineer a situation in which there is a social...
by Phineas J. Whoopee
Wed Feb 07, 2018 11:59 pm
Forum: Personal Finance (Not Investing)
Topic: free dinner investing seminar
Replies: 223
Views: 13786

Re: free dinner investing seminar

No. If necessary followed up with the true statement: I used to teach objection handling. By agreeing to a transaction in that context we both know one of us is going to cheat the other. If my conscience didn't nip at my heels I would cheat them. Unfortunately for my diet of free rubber chicken and...
by Phineas J. Whoopee
Wed Feb 07, 2018 10:35 pm
Forum: Investing - Theory, News & General
Topic: Why should we care about inflation?
Replies: 58
Views: 4991

Re: Why should we care about inflation?

I was responding to a specific claim that the government will take the return that can be accounted for by inflation. Brackets are adjusted, which refutes the claim. Could you identify the "specific claim" that bracket adjustment refutes, then, if it is not my own ? I refer you to my post upthread ...
by Phineas J. Whoopee
Wed Feb 07, 2018 8:53 pm
Forum: Investing - Theory, News & General
Topic: Why should we care about inflation?
Replies: 58
Views: 4991

Re: Why should we care about inflation?

spangineer wrote:
Wed Feb 07, 2018 8:24 pm
...
Yes, but that doesn't make my example inaccurate. ...

If you disagree, I hope you'll explain where my analysis is incorrect.
I don't have to defend a statement I didn't make.

Instead, I refer you to my post just above yours.

PJW
by Phineas J. Whoopee
Wed Feb 07, 2018 7:58 pm
Forum: Investing - Theory, News & General
Topic: Why should we care about inflation?
Replies: 58
Views: 4991

Re: Why should we care about inflation?

Inflation, although with the recent change it's chained CPI-U, is used to adjust the tax brackets. That helps, but for many people it has little effect on capital gains. With no inflation, and 20% tax on long-term capital gains, a 1% real return is reduced to 0.8%. With 4% inflation, a 1% real gain...
by Phineas J. Whoopee
Wed Feb 07, 2018 5:17 pm
Forum: Investing - Theory, News & General
Topic: Why should we care about inflation?
Replies: 58
Views: 4991

Re: Why should we care about inflation?

Inflation, although with the recent change it's chained CPI-U, is used to adjust the tax brackets. That helps, but for many people it has little effect on capital gains. With no inflation, and 20% tax on long-term capital gains, a 1% real return is reduced to 0.8%. With 4% inflation, a 1% real gain...
by Phineas J. Whoopee
Wed Feb 07, 2018 4:39 pm
Forum: Investing - Theory, News & General
Topic: Huge afternoon stock drop on 2.5.2018 and stock raise on 2.6.2018 is caused by mutual fund holders
Replies: 46
Views: 6770

Re: Huge afternoon stock drop on 2.5.2018 and stock raise on 2.6.2018 is caused by mutual fund holders

... IIRC it's because cheaply levering up with futures is a more cost efficient way to meet withdrawal demands for cash. So instead of their S&P 500 fund holding 100% stocks and having to sell to meet cash demands, they hold something like 98% stocks and futures contracts with a 2% notional value, ...
by Phineas J. Whoopee
Wed Feb 07, 2018 4:34 pm
Forum: Investing - Theory, News & General
Topic: Why should we care about inflation?
Replies: 58
Views: 4991

Re: Why should we care about inflation?

Nobody is going to mention taxes? The government doesn’t care if your nominal returns are caused by inflation. If inflation increases the value of your stocks your purchasing power decreases because you’ll owe taxes on that capital gain even if there is no real gain. Inflation, although with the re...
by Phineas J. Whoopee
Wed Feb 07, 2018 3:20 pm
Forum: Investing - Theory, News & General
Topic: vtiax pricing
Replies: 5
Views: 648

Re: vtiax pricing

In addition to exchange rates, fair value pricing plays a role.
PJW
by Phineas J. Whoopee
Tue Feb 06, 2018 10:53 pm
Forum: Investing - Theory, News & General
Topic: Inverse VIX ETN down 80% after hours
Replies: 42
Views: 5168

Re: Inverse VIX ETN down 80% after hours

With respect to the 80% fall, the prospectus for the Credit Suisse Exchange Traded Note says explicitly, in a section starting on p. PS-18 and made numerically particular on p. PS-28, that they can end the scheme early in the event of an 80% drop. It would appear the traders who had read it anticipa...
by Phineas J. Whoopee
Tue Feb 06, 2018 7:45 pm
Forum: Investing - Theory, News & General
Topic: Tax Advantaged vs Taxable Accounts
Replies: 4
Views: 542

Re: Tax Advantaged vs Taxable Accounts

You may be interested in our wiki article: Tax-efficient fund placement.
PJW

Looks like I only came in third because I provided a little more text. P
by Phineas J. Whoopee
Tue Feb 06, 2018 7:36 pm
Forum: Investing - Theory, News & General
Topic: Standard deviation measure of risk for a bond fund?
Replies: 15
Views: 921

Re: Standard deviation measure of risk for a bond fund?

... Generally, most bond funds (at least ones I am interested in such as VWIUX) keep the bonds until they mature . ... Most bond funds very much do not do that. It's a common misconception, but it's not your fault because a lot of outlets claim they do. As for Vanguard's Intermediate-Term Tax-Exemp...
by Phineas J. Whoopee
Tue Feb 06, 2018 5:47 pm
Forum: Personal Consumer Issues
Topic: Microsoft adding stock quote functionality to Excel
Replies: 4
Views: 1021

Re: Microsoft adding stock quote functionality to Excel

It used to be a value add by market data vendors. Is Microsoft expected to offer the functionality for free? If so, it will be interesting to see if they only offer delayed data. Exchanges charge money for so-called (but not in a true engineering sense) real-time data, but after usually 15 or 20 min...
by Phineas J. Whoopee
Tue Feb 06, 2018 5:17 pm
Forum: Investing - Theory, News & General
Topic: Huge afternoon stock drop on 2.5.2018 and stock raise on 2.6.2018 is caused by mutual fund holders
Replies: 46
Views: 6770

Re: Huge afternoon stock drop on 2.5.2018 and stock raise on 2.6.2018 is caused by indexers

He's not blaming mutual funds. He blaming people trying to time the market with mutual funds.. Every single person with an S&P 500 fund who sold on a bearish break on 50 or 100 day moving averages would have had an order executed at close on Monday. OP certainly makes this claim as it is certainty ...
by Phineas J. Whoopee
Tue Feb 06, 2018 5:07 pm
Forum: Investing - Theory, News & General
Topic: Huge afternoon stock drop on 2.5.2018 and stock raise on 2.6.2018 is caused by mutual fund holders
Replies: 46
Views: 6770

Re: Huge afternoon stock drop on 2.5.2018 and stock raise on 2.6.2018 is caused by indexers

I never knew I was so powerful. You are not that powerful, but a few thousands like you - are, Equity mutual fund holders have chickened out yesterday when they saw SP500 dropping 1.5% and rushed to enter sell orders. Those with access to order info, have access to very valuable information and can...
by Phineas J. Whoopee
Mon Feb 05, 2018 11:17 pm
Forum: Investing - Theory, News & General
Topic: Inverse VIX ETN down 80% after hours
Replies: 42
Views: 5168

Re: Inverse VIX ETN down 80% after hours

To put it simply, those funds are short VIX . Losses on shorts can be unlimited so a 100% spike in the VIX will now force those ETN to terminate. From what I am reading, many pensions and annuity companies have been short volatility since it was seen as an easy relatively low risk trade to generate...
by Phineas J. Whoopee
Mon Feb 05, 2018 10:49 pm
Forum: Investing - Theory, News & General
Topic: Bitcoin in Freefall
Replies: 162
Views: 16618

Re: Bitcoin in Freefall

thx1138 wrote:
Sun Feb 04, 2018 12:32 am
...
Lol, no. It is mostly paper wealth to begin with and bitcoin is a vanishingly small amount of capitalization compared to just equity markets (not to mention the equally large bond markets). ...
You mean, paper wealth as opposed to stacks of physical $100 bills?

PJW
by Phineas J. Whoopee
Mon Feb 05, 2018 9:04 pm
Forum: Investing - Theory, News & General
Topic: Inverse VIX ETN down 80% after hours
Replies: 42
Views: 5168

Re: Inverse VIX ETN down 80% after hours

potentially stupid question here... VIX was up more than 100% today. Doesn't it make sense XIV would go to zero? XIV is based off VIX futures, not the spot VIX. So a large change in the spot VIX wouldn't necessarily drive it to zero. Thanks I realize it was written informally, but there is no spot ...
by Phineas J. Whoopee
Mon Feb 05, 2018 8:37 pm
Forum: Investing - Theory, News & General
Topic: Inverse VIX ETN down 80% after hours
Replies: 42
Views: 5168

Re: Inverse VIX ETN down 80% after hours

It doesn't answer the specific question about the -0.80 number, but it may help to read this article from our wiki: Inverse and leveraged ETFs. The ETN structure also introduces more counterparty risk.
PJW
by Phineas J. Whoopee
Mon Feb 05, 2018 8:30 pm
Forum: Investing - Help with Personal Investments
Topic: Raising interest rates are good for bonds.
Replies: 17
Views: 2208

Re: Raising interest rates are good for bonds.

whodidntante wrote:
Mon Feb 05, 2018 8:19 pm
Oh yeah, it's just wonderful to watch a NAV drop eclipse all that interest for an entire year, or the interest for a few years.
Then just don't look. Be rational about investing.

PJW
by Phineas J. Whoopee
Mon Feb 05, 2018 8:18 pm
Forum: Investing - Help with Personal Investments
Topic: Where would you tell a 12 year old to park his money
Replies: 32
Views: 1827

Re: Where would you tell a 12 year old to park his money

I wouldn't. Tell, that is. I'd age-appropriately go through some options, taking our time. College funding in six years or so is good, so maybe CDs. [Sorry - missed that point.] Getting a start on an emergency fund is good, so maybe high-yield savings. Increasing one's economic options later in life...
by Phineas J. Whoopee
Mon Feb 05, 2018 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard federal money market interest
Replies: 4
Views: 605

Re: Vanguard federal money market interest

welderwannabe has it right.
On p. 27 of the Money Market Funds statutory prospectus, Vanguard wrote:...
The Fund’s income dividends generally are declared daily and distributed monthly.
...
PJW
by Phineas J. Whoopee
Sun Feb 04, 2018 4:18 pm
Forum: Investing - Theory, News & General
Topic: Frequency of rebalancing -- target date and balanced funds
Replies: 5
Views: 548

Re: Frequency of rebalancing -- target date and balanced funds

Most of the time, at least, Vanguard, at least, handles it out of daily cash flows from investors buying and selling.
PJW
by Phineas J. Whoopee
Sun Feb 04, 2018 3:13 pm
Forum: Forum Issues and Administration
Topic: Fewer acronyms please
Replies: 93
Views: 5302

Re: Fewer acronyms please

dual wrote:
Sun Feb 04, 2018 2:44 am
Acronyms are bad enough but what about redundant acronyms?!! Please no more:
...
personal PIN number
...
It's a lucky thing we have PIN numbers. If all we had were PI numbers we'd never finish entering them.

PJW
by Phineas J. Whoopee
Sat Feb 03, 2018 6:26 pm
Forum: Personal Consumer Issues
Topic: Cheapest funeral options
Replies: 40
Views: 3012

Re: Cheapest funeral options

I briefly and non-professionally worked in the funeral industry to earn tuition money years ago (I was the funeral director's assistant, driver, telephone answerer, and building maintenance person, and an extra pall bearer if one was needed). We offered what we called a quick cremation, and back the...
by Phineas J. Whoopee
Sat Feb 03, 2018 6:09 pm
Forum: Investing - Help with Personal Investments
Topic: Index Funds During Stock Market Decline?
Replies: 20
Views: 1991

Re: Index Funds During Stock Market Decline?

If the stock market goes down, mutual funds which track it will go down. That's what they do. Some active managers keep cash around, which softens the downward moves just as much as it softens the upward moves. I choose how much to keep in fixed income and in what vehicles. I expect my fully-investe...
by Phineas J. Whoopee
Fri Feb 02, 2018 8:39 pm
Forum: Investing - Help with Personal Investments
Topic: Pros & Cons of Zero Coupon Treasuries
Replies: 18
Views: 1364

Re: Pros & Cons of Zero Coupon Treasuries

I would like to add two things: For zeros that aren't T-bills, one has to buy them from some institution that separated the coupons and principal, STRIPS . They're not available at original auction, although very large investors may well be able to get them close to that yield; and That there scary ...
by Phineas J. Whoopee
Fri Feb 02, 2018 6:34 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund vs. Stable Value
Replies: 34
Views: 2928

Re: Bond Fund vs. Stable Value

Hi dodecahedron.

No need to scuff the toes of your shoes. We have a wiki article about Stable Value Funds: Stable value fund.

PJW
by Phineas J. Whoopee
Fri Feb 02, 2018 6:15 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund vs. Stable Value
Replies: 34
Views: 2928

Re: Bond Fund vs. Stable Value

Hi Chester1a, and welcome to the forum. Now that Earl Lemongrab and I agree that we agree and are not arguing, for more information I'd like to point you to our wiki article about Stable Value Funds: Stable value fund . If after you've read it you have more questions please don't hesitate to post th...
by Phineas J. Whoopee
Fri Feb 02, 2018 5:26 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund vs. Stable Value
Replies: 34
Views: 2928

Re: Bond Fund vs. Stable Value

^^ Because some people decided to make them sound riskier than they are. I never said that they were risk-free, just very low risk. Do you agree or disagree? Does Dodecahedron? If we all agree then there is no further need of discussion. If not, then it's reasonable to discuss it. If by pointing ou...
by Phineas J. Whoopee
Fri Feb 02, 2018 4:55 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund vs. Stable Value
Replies: 34
Views: 2928

Re: Bond Fund vs. Stable Value

What else do we have to go on? We know the structure of the various forms, and we see how that structure has been tested in the past. No one can predict the future of course. But this is not a case of predicting return, but safety. That's a different task and one that's quite reasonable to use past...
by Phineas J. Whoopee
Fri Feb 02, 2018 4:30 pm
Forum: Forum Issues and Administration
Topic: Fewer acronyms please
Replies: 93
Views: 5302

Re: Fewer acronyms please

tesuzuki2002 wrote:
Fri Feb 02, 2018 4:08 pm
longleaf wrote:
Thu Feb 01, 2018 7:22 pm
https://www.bogleheads.org/wiki/Abbrevi ... d_Acronyms

By the way, imho is in my humble opinion
Do you ever have an un-humble opinion??

This who nuance made me LOL!!! Thanks all! Happy Friday!
IMNSHO, no.

PJW