Search found 248 matches

by frankmorris
Thu Jul 20, 2017 8:39 am
Forum: Personal Finance (Not Investing)
Topic: Ally Bank 1.25% 11 month with no EWP
Replies: 111
Views: 14276

Re: Ally Bank 1.25% 11 month with no EWP

Just opened an Ally account myself and just using the high yield savings, with an associated checking for daily use. The no penalty high yield CD seems pretty great, although I agree it depends on the actual amount of money you're making at the end of the day. For $10,000 or so, yeah I'm probably wi...
by frankmorris
Sun Jul 16, 2017 9:35 am
Forum: Investing - Help with Personal Investments
Topic: 3 fund vs robo investing program
Replies: 28
Views: 2082

Re: 3 fund vs robo investing program

I think we'd all need to be open to have computers/AI could eventually provide interesting and insightful information, but as an investor concerned mostly with a large taxable account, the limitations still apply in terms of usefulness of slicing & dicing: as the computer detects newly effective...
by frankmorris
Sat Jul 15, 2017 9:26 am
Forum: Investing - Help with Personal Investments
Topic: Getting step-up in cost basis on grandma's trust?
Replies: 9
Views: 678

Re: Getting step-up in cost basis on grandma's trust?

In part a response to cas, I'm going through a situation as well in which trusts were formed under old estate tax laws that changed about 25 years into the creation of the original plan. Two elements have been frustrating: 1) None of the financial folks involved in my grandparents' estate bothered t...
by frankmorris
Sun Jul 09, 2017 8:51 pm
Forum: Investing - Theory, News & General
Topic: "Bond wipeout has just begun"???
Replies: 84
Views: 11471

Re: "Bond wipeout has just begun"???

I'm not the OP, but when I personally think about not wanting to lose the initial investment, I realize there is a margin of error and a degree of risk/reward balance. The whole point, though, is that both the risk and reward appear to be substantially less with a total bond fund than a total stock...
by frankmorris
Sun Jul 09, 2017 7:44 pm
Forum: Investing - Theory, News & General
Topic: "Bond wipeout has just begun"???
Replies: 84
Views: 11471

Re: "Bond wipeout has just begun"???

Of course, this doesn't guarantee that a bond fund will recover quickly, which brings me to y-our second point - look at how Vanguard's total bond fund performs over time in terms of both NAV/price and rate. The rate of BND tends to adjust rather quickly to a changing rate environment, and the NAV ...
by frankmorris
Sun Jul 09, 2017 7:41 pm
Forum: Investing - Theory, News & General
Topic: "Bond wipeout has just begun"???
Replies: 84
Views: 11471

Re: "Bond wipeout has just begun"???

The rate of BND tends to adjust rather quickly to a changing rate environment, and the NAV price doesn't go down (or up) by more than a few percentage points, and for more than a few months. 1) The rate of BND tends ? to adjust. No it must adjust on a minute by minute basis. That's the nature of bo...
by frankmorris
Sun Jul 09, 2017 7:31 pm
Forum: Investing - Theory, News & General
Topic: "Bond wipeout has just begun"???
Replies: 84
Views: 11471

Re: "Bond wipeout has just begun"???

Of course, this doesn't guarantee that a bond fund will recover quickly, which brings me to y-our second point - look at how Vanguard's total bond fund performs over time in terms of both NAV/price and rate. The rate of BND tends to adjust rather quickly to a changing rate environment, and the NAV ...
by frankmorris
Sun Jul 09, 2017 1:26 pm
Forum: Investing - Theory, News & General
Topic: At what point does passive investing become dangerous?
Replies: 24
Views: 3284

At what point does passive investing become dangerous?

Barron's has an article today that continues the discussion of the dangers of passive investing on the market, from lack of fundamental-based investment decisions to larger market swings that may occur because of bubbles created because people are too invested in over-priced large stocks in market c...
by frankmorris
Sun Jul 09, 2017 1:19 pm
Forum: Investing - Theory, News & General
Topic: "Bond wipeout has just begun"???
Replies: 84
Views: 11471

Re: "Bond wipeout has just begun"???

On the other hand, bond funds such as Vanguard Total Bond are constantly selling and buying new bonds of all types. The major difference is that you might see a temporary decline in face value of the Total Bond shares, but history suggests that a relatively quick recovery is likely. I don't underst...
by frankmorris
Sun Jul 09, 2017 9:27 am
Forum: Investing - Theory, News & General
Topic: "Bond wipeout has just begun"???
Replies: 84
Views: 11471

Re: "Bond wipeout has just begun"???

To the OP: I posted a question about this a few weeks back, wondering about the difference in value change between a bond and a bond fund. If a LT bond yields 3% and at some point a 5% is offered, clearly the value of that individual bond has gone down, assuming you don't ride it out to maturity. On...
by frankmorris
Sun Jul 02, 2017 10:52 am
Forum: Investing - Theory, News & General
Topic: The "angle" at Schwab
Replies: 32
Views: 4011

Re: The "angle" at Schwab

Thanks everyone. Yes, Taylor - seems that folks are happy with the model (except the response immediately above me), despite the compensation plan being commission-based, at least in part. Certainly something to keep an eye on and be aware of, but looks like for most folks it hasn't been a deal brea...
by frankmorris
Sun Jul 02, 2017 10:48 am
Forum: Investing - Theory, News & General
Topic: Total Bond Fund in a rising rate environment
Replies: 59
Views: 4356

Re: Total Bond Fund in a rising rate environment

Thanks all. Specifically: @nisiprius: Thanks - yes, interesting that that happens, but even if we don't understand it I guess it's good that the recovery time is shorter. And yes - nothing much worked in the 70s I suppose. @NPT: ST would make more sense in terms of safety, but at 1.5% yield I'd be s...
by frankmorris
Sat Jul 01, 2017 9:25 am
Forum: Investing - Theory, News & General
Topic: Total Bond Fund in a rising rate environment
Replies: 59
Views: 4356

Re: Total Bond Fund in a rising rate environment

Thanks for being willing to enlighten dbr - I do appreciate it, and I'm continuing to mentally work toward reconciling my perspective with the truth presented in yours. Perhaps another variable in my particular investment plan (as it's unfolding, though not yet implemented): As I'm in my mid-30s and...
by frankmorris
Sat Jul 01, 2017 8:43 am
Forum: Investing - Theory, News & General
Topic: Total Bond Fund in a rising rate environment
Replies: 59
Views: 4356

Re: Total Bond Fund in a rising rate environment

What would happen if the fed continued to raise rates at a similar pace for the next 2 years - do folks think we'd see similar BND recovery? What would happen if inflation picked up and fed raised even more quickly? http://myphotos.mypclinuxos.com/images/patrick013/trsytable.png What is happening i...
by frankmorris
Sat Jul 01, 2017 8:40 am
Forum: Investing - Theory, News & General
Topic: Total Bond Fund in a rising rate environment
Replies: 59
Views: 4356

Re: Total Bond Fund in a rising rate environment

Why would you think you can't use your money along the way? You could go to FireCalc and see if a choice between LT and ST bonds makes any difference when withdrawing from a portfolio. A 50/50 stock/bond portfolio, 30 years, 4% withdrawal fails 6% of the time with LT Treasuries and 4% of the time w...
by frankmorris
Fri Jun 30, 2017 1:25 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Fund in a rising rate environment
Replies: 59
Views: 4356

Re: Total Bond Fund in a rising rate environment

I asked a similar question a while back, but given that we've never really seen what a bond index fund would do in a rising rate environment, how do you think something like BND would perform? I know the value would at least temporarily go down, but I'm curious: 1) How much of an impact 2-3 0.25% r...
by frankmorris
Fri Jun 30, 2017 1:23 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Fund in a rising rate environment
Replies: 59
Views: 4356

Re: Total Bond Fund in a rising rate environment

I asked a similar question a while back, but given that we've never really seen what a bond index fund would do in a rising rate environment, how do you think something like BND would perform? I know the value would at least temporarily go down, but I'm curious: 1) How much of an impact 2-3 0.25% r...
by frankmorris
Fri Jun 30, 2017 1:16 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Fund in a rising rate environment
Replies: 59
Views: 4356

Re: Total Bond Fund in a rising rate environment

Ah, gotcha. Yes, I'll end up being 60-80% stocks and the rest bonds. I'm generally looking for a TSM/TISM approach to equities - the bonds are less about short/moderate-term stability from an emotional perspective, and more from an "access to capital" perspective should I need to take som...
by frankmorris
Fri Jun 30, 2017 9:47 am
Forum: Investing - Help with Personal Investments
Topic: Should I Sell Energy Index (VDE) and take loss?
Replies: 43
Views: 2896

Re: Should I Sell Energy Index (VDE) and take loss?

The idea of selling energy now and buying TSM is pretty much a "sell low" and "buy high" scenario. Unless you believe oil won't ever come back up, or you're anticipating needing to sell before it does, you're only baking in your losses over the past 2 years if you sell now. On th...
by frankmorris
Fri Jun 30, 2017 9:29 am
Forum: Investing - Theory, News & General
Topic: Total Bond Fund in a rising rate environment
Replies: 59
Views: 4356

Re: Total Bond Fund in a rising rate environment

For return in the long run it might be more effective to allocate a little more to stocks than to make tiny adjustments in bond selections. Just a thought. What do you mean by this?[/quote] I did make an assumption that you do not invest only in bonds. The typical investor holds a portfolio that in...
by frankmorris
Fri Jun 30, 2017 8:45 am
Forum: Investing - Theory, News & General
Topic: Total Bond Fund in a rising rate environment
Replies: 59
Views: 4356

Re: Total Bond Fund in a rising rate environment

I wonder how many people are holding more stock than they would like because bond returns have been lackluster the past number of years? If interest rates increase enough, how many of those people will move back into bonds and how much will that drive the NAV up? What is the magic threshold where b...
by frankmorris
Fri Jun 30, 2017 8:43 am
Forum: Investing - Theory, News & General
Topic: Total Bond Fund in a rising rate environment
Replies: 59
Views: 4356

Re: Total Bond Fund in a rising rate environment

I'm in my 30s and am less concerned about the bumpy ride, and am more concerned about being able to access money in a low market environment (e.g., if I needed a down payment for a house) without having to sell stocks when they're down. You can see the impact of rising interest rates on various dur...
by frankmorris
Fri Jun 30, 2017 8:42 am
Forum: Investing - Theory, News & General
Topic: Total Bond Fund in a rising rate environment
Replies: 59
Views: 4356

Re: Total Bond Fund in a rising rate environment

There are a lot of factors that would effect how it behaves, but why does it matter so much to you? If you need the money in less than a couple of years and don't want to risk losing anything you probably shouldn't be holding BND anyway. It matters because I'm not trying to plan for a specific need...
by frankmorris
Fri Jun 30, 2017 8:39 am
Forum: Investing - Theory, News & General
Topic: Total Bond Fund in a rising rate environment
Replies: 59
Views: 4356

Re: Total Bond Fund in a rising rate environment

I'm in my 30s and am less concerned about the bumpy ride, and am more concerned about being able to access money in a low market environment (e.g., if I needed a down payment for a house) without having to sell stocks when they're down. You can see the impact of rising interest rates on various dur...
by frankmorris
Fri Jun 30, 2017 8:36 am
Forum: Investing - Theory, News & General
Topic: Total Bond Fund in a rising rate environment
Replies: 59
Views: 4356

Re: Total Bond Fund in a rising rate environment

As others have noted I think total Bond has done fine in recent (post 1970s) time periods with rising rates. One option to consider is you could mix in some 2-5 year CDs to reduce term risk a little without reducing your return much. There are numerous threads on CDs on this board that provide help...
by frankmorris
Fri Jun 30, 2017 8:34 am
Forum: Investing - Theory, News & General
Topic: Total Bond Fund in a rising rate environment
Replies: 59
Views: 4356

Re: Total Bond Fund in a rising rate environment

So it might be helpful for you to look back at previous periods of rate increases to see how it fared. To elaborate on saltycaper's point, rates went from 6.5% to 9.75% in December 1988 (a bigger increase than anything you probably had in mind). And Vanguard Total Bond returned 13.17% over the 12-m...
by frankmorris
Thu Jun 29, 2017 11:32 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Fund in a rising rate environment
Replies: 59
Views: 4356

Re: Total Bond Fund in a rising rate environment

My main concern is preserving liquidity while still being able to get some interest/annual return. As I'm building my plan, I plan on having an emergency fund in cash or similar, TSM/TISM and a few others potentially, then perhaps 20-40% in bonds. I'm in my 30s and am less concerned about the bumpy ...
by frankmorris
Thu Jun 29, 2017 10:46 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Fund in a rising rate environment
Replies: 59
Views: 4356

Total Bond Fund in a rising rate environment

I asked a similar question a while back, but given that we've never really seen what a bond index fund would do in a rising rate environment, how do you think something like BND would perform? I know the value would at least temporarily go down, but I'm curious: 1) How much of an impact 2-3 0.25% ra...
by frankmorris
Tue Jun 27, 2017 7:07 am
Forum: Investing - Theory, News & General
Topic: The "angle" at Schwab
Replies: 32
Views: 4011

Re: The "angle" at Schwab

Thanks afan...
by frankmorris
Tue Jun 27, 2017 7:06 am
Forum: Investing - Help with Personal Investments
Topic: Tax/other differences between Schwab funds & Vanguard
Replies: 6
Views: 800

Re: Tax/other differences between Schwab funds & Vanguard

You mentioned ETF but later specified SWTSX (a mutual fund) in the original post, which was a bit confusing. As long as you stick w ETF versions of the mutual funds (like SCHB, ETF .... instead of the equiv mf, SWTSX) you should be good for a taxable account. Ah, thanks - sorry for that bit of conf...
by frankmorris
Mon Jun 26, 2017 8:24 am
Forum: Investing - Help with Personal Investments
Topic: Tax/other differences between Schwab funds & Vanguard
Replies: 6
Views: 800

Re: Tax/other differences between Schwab funds & Vanguard

Thanks everyone - first, I'm referring to similar products, as in broad market ETFs. In terms of my tax situation, part of my unique experience is that I'll likely be investing a large amount in a taxable account. I'm in my 30s, so expect the amount to grow fairly substantially over the coming decad...
by frankmorris
Mon Jun 26, 2017 8:20 am
Forum: Investing - Theory, News & General
Topic: The "angle" at Schwab
Replies: 32
Views: 4011

Re: The "angle" at Schwab

Really, really appreciate everyone'e insight and perspective about this. This is such a helpful place to get insight, and people like you all are an invaluable resource. Thank you. Sounds like consensus is almost uniformly positive, and while I might expect a light suggestion for more expensive prod...
by frankmorris
Sun Jun 25, 2017 9:29 am
Forum: Investing - Theory, News & General
Topic: The "angle" at Schwab
Replies: 32
Views: 4011

Re: The "angle" at Schwab

Thanks for the reply. So, I'm going to update my original thread with this question you made me think of: How is opening account online different than in person? Will I be assigned an "advisor" either way? What is that advisor doing? Are they looking at my account and calling to pitch prod...
by frankmorris
Sun Jun 25, 2017 9:26 am
Forum: Investing - Help with Personal Investments
Topic: Tax/other differences between Schwab funds & Vanguard
Replies: 6
Views: 800

Tax/other differences between Schwab funds & Vanguard

I'm leaning toward opening a Schwab account and keeping most of my investments there. However, I've been (perhaps well) trained to prefer the Vanguard funds. I know you can hold Vanguard ETFs in Schwab accounts and the fee is currently only 4.95 for trades, and I don't plan on doing a lot of trades....
by frankmorris
Sun Jun 25, 2017 9:21 am
Forum: Investing - Theory, News & General
Topic: The "angle" at Schwab
Replies: 32
Views: 4011

The "angle" at Schwab

I like the idea of a physical location, and have read through a lot of posts on BH with folks being pleased with the customer service at Schwab, balanced with the philosophy of respecting the DIY investor. I stopped by the local branch this week just to assess the experience, even though I know I ca...
by frankmorris
Sat Jun 24, 2017 7:05 pm
Forum: Investing - Help with Personal Investments
Topic: Long or short-term capital gains after merger?
Replies: 7
Views: 535

Re: Long or short-term capital gains after merger?

TDAmeritrade uses GainsKeeper for the cost basis editing and reporting. I just looked at my account and I can change the basis of shares I sold back in 2002 still. Don't ask me why they would let me do that, but I do like that the online records go back that far. :) Yes, it's interesting that it's ...
by frankmorris
Sat Jun 24, 2017 9:26 am
Forum: Investing - Help with Personal Investments
Topic: Long or short-term capital gains after merger?
Replies: 7
Views: 535

Re: Long or short-term capital gains after merger?

Thanks kaneohe. Livesoft - yes, had a call with him yesterday and I think we made some progress.
by frankmorris
Sat Jun 24, 2017 7:06 am
Forum: Investing - Help with Personal Investments
Topic: Long or short-term capital gains after merger?
Replies: 7
Views: 535

Re: Long or short-term capital gains after merger?

Sounds like the merger was tax free https://www.enbridge.com/investment-center/investor-faqs/enbridge-and-spectra-merger-faqs-updated so the holding period should include that for the original company as well as the new company so LTCG. The contrast with a taxable merger may be useful https://www.t...
by frankmorris
Fri Jun 23, 2017 2:19 pm
Forum: Investing - Help with Personal Investments
Topic: Long or short-term capital gains after merger?
Replies: 7
Views: 535

Long or short-term capital gains after merger?

Hi folks - I had some Spectra stock before it merged with Enbridge in March. My shares converted into Enbridge shares, and I'm now looking to exit some of my position in Enbridge. I held the Spectra shares for more than one year, so profits would have been considered a long-term capital gain. Howeve...
by frankmorris
Tue Jun 13, 2017 9:57 am
Forum: Personal Finance (Not Investing)
Topic: Merging bypass & survivor's trust
Replies: 7
Views: 718

Re: Merging bypass & survivor's trust

Bsteiner advocates considering decanting the trust into another trust that will be included in the estate of the beneficiary. There are several possible solutions: 1. If the Will or revocable trust creating the credit shelter (bypass) trust was well-drafted (or even averagely drafted), the trustees...
by frankmorris
Sun Jun 11, 2017 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Merging bypass & survivor's trust
Replies: 7
Views: 718

Re: Merging bypass & survivor's trust

Thanks - capital gains savings would be significant, so definitely worth pursuing. Fortunately there are some other, more knowledgeable folks working on this, but I thought I'd see if anyone had any other ideas.
by frankmorris
Sun Jun 11, 2017 7:39 am
Forum: Personal Finance (Not Investing)
Topic: Merging bypass & survivor's trust
Replies: 7
Views: 718

Merging bypass & survivor's trust

A while back, older family members (married) set up a bypass and survivors trust, which seemed to be the thing to do before estate tax exemptions were lifted a few years back. One family member passed in mid 2000s before the exemption amount was raised, activating the bypass trust, with the survivin...
by frankmorris
Fri Jun 02, 2017 3:39 pm
Forum: Investing - Theory, News & General
Topic: Actual TLH Efficiency
Replies: 18
Views: 1038

Re: Actual TLH Efficiency

Cool - thanks everyone. Definitely seems like there can be some benefits, not a reasonable counter-argument by those trying to convince me that higher turnover and realized capital gains are insignificant.
by frankmorris
Fri Jun 02, 2017 2:28 pm
Forum: Investing - Theory, News & General
Topic: Actual TLH Efficiency
Replies: 18
Views: 1038

Re: Actual TLH Efficiency

Thanks all - just checked out that Kitces link - that broke it down quite helpfully, and I think I've now come to understand that the best TLH can go is defer taxes into the future. In the event that one has a highly active account (buying and trading throughout the year) in a taxable account, this ...
by frankmorris
Fri Jun 02, 2017 8:51 am
Forum: Investing - Theory, News & General
Topic: Actual TLH Efficiency
Replies: 18
Views: 1038

Re: Actual TLH Efficiency

Thanks everyone - definitely different issues to consider. Perhaps I'm thinking about this too generally. I'm still trying to get a sense of whether tax inefficiency with higher turnover in an index fund, for example, (e.g., a small cap value fund or a momentum fund) would be offset a little, a lot,...
by frankmorris
Thu Jun 01, 2017 9:32 pm
Forum: Investing - Theory, News & General
Topic: Actual TLH Efficiency
Replies: 18
Views: 1038

Actual TLH Efficiency

Slowly working my way toward ruling our more complicated allocations, and one argument I consistently present to myself and others is tax inefficiency of slicing & dicing or actively trading in a taxable account. An argument I receive back is tax loss harvesting. So, I'm trying to estimate the r...
by frankmorris
Thu Jun 01, 2017 6:10 am
Forum: Investing - Theory, News & General
Topic: TSM Dividend Yield Change
Replies: 11
Views: 1326

Re: TSM Dividend Yield Change

Hi folks, So, here's my question: I'm assuming that if the market drops by 50% at the NEXT dividend date and the value of your ETF equity is $50, and NO company adjusted/canceled its dividend, the dividend yield would be 4% and you'd STILL get $2 on the next dividend date. Correct? Unfortunately, w...
by frankmorris
Wed May 31, 2017 6:50 pm
Forum: Investing - Theory, News & General
Topic: TSM Dividend Yield Change
Replies: 11
Views: 1326

Re: TSM Dividend Yield Change

SNP dividends are pretty darn robust. from 1960-2000 there were only two dividend cuts, both less than 5%. In 2001 there was a 5% cut and in the GFC the dividends dropped about 20%. In all cases they recovered within three years in the worst case. http://pages.stern.nyu.edu/~adamodar/New_Home_Page/...
by frankmorris
Wed May 31, 2017 6:12 pm
Forum: Investing - Theory, News & General
Topic: TSM Dividend Yield Change
Replies: 11
Views: 1326

Re: TSM Dividend Yield Change

livesoft wrote:
frankmorris wrote: I've learned previously that dividends are calculated based on CURRENT yield.

I use finance.yahoo.com mostly, but sometimes vanguard.com.


I can't seem to find this in visual/graph format - is there a specific way in yahoo finance to access this? Thanks
by frankmorris
Wed May 31, 2017 6:10 pm
Forum: Investing - Theory, News & General
Topic: TSM Dividend Yield Change
Replies: 11
Views: 1326

Re: TSM Dividend Yield Change

Got it - so the dividend and dividend yield are calculated in the same way for individual companies & TSM, yes?

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