Search found 375 matches

by neomutiny06
Sun Jan 15, 2017 8:03 am
Forum: Investing - Theory, News & General
Topic: Bogle worried Vanguard is getting too big
Replies: 68
Views: 13013

Re: Bogle worried Vanguard is getting too big

It seems this thread has turned into a discussion about if "indexing" gets to big. But I don't believe that is what Bogle is concerned about when he says Vanguard is getting too big.
by neomutiny06
Thu Jan 12, 2017 11:22 am
Forum: Investing - Theory, News & General
Topic: Buying vs Leasing a car for Real Estate Agent
Replies: 6
Views: 963

Buying vs Leasing a car for Real Estate Agent

I don't fully understand tax deductions. What is better for a Real Estate agent? Leasing or buying a car? Little money up front also. Thanks!
by neomutiny06
Thu Jan 12, 2017 8:42 am
Forum: Investing - Theory, News & General
Topic: Burton Malkiel says "Don't Buy Bonds"
Replies: 48
Views: 9282

Re: Burton Malkiel says "Don't Buy Bonds"

A challenge is we do not really know how TIPS would have done. We do know that TIPS can have negative real yield. We do not know how far negative the rates might go. I certainly hope they would have done better than nominal bonds, and I expect they would have, but I do not know that to be true and ...
by neomutiny06
Wed Jan 11, 2017 9:26 pm
Forum: Investing - Theory, News & General
Topic: Burton Malkiel says "Don't Buy Bonds"
Replies: 48
Views: 9282

Re: Burton Malkiel says "Don't Buy Bonds"

A challenge is we do not really know how TIPS would have done. We do know that TIPS can have negative real yield. We do not know how far negative the rates might go. I certainly hope they would have done better than nominal bonds, and I expect they would have, but I do not know that to be true and ...
by neomutiny06
Wed Jan 11, 2017 3:59 pm
Forum: Investing - Theory, News & General
Topic: Burton Malkiel says "Don't Buy Bonds"
Replies: 48
Views: 9282

Re: Burton Malkiel says "Don't Buy Bonds"

jalbert wrote:The total bond market index fund has had a total return of 20% since 1/1/2011, about the time that video was made, despite the recent volatility.


Wow is this correct? Seriously, the past World War 2 example of bond rates being pegged, and what transpired, may not happen again exactly the same way.
by neomutiny06
Tue Jan 10, 2017 11:54 pm
Forum: Investing - Theory, News & General
Topic: Burton Malkiel says "Don't Buy Bonds"
Replies: 48
Views: 9282

Re: Burton Malkiel says "Don't Buy Bonds"

The referenced video was made in early 2011. He was a tad early in his predictions about rising interest rates as the Federal Reserve gradually unwinds its interest rate repression, as Malkiel call it. I have concerns about bonds as well. Going from memory here, but it seems that bonds lost about 5...
by neomutiny06
Tue Jan 10, 2017 3:02 pm
Forum: Investing - Theory, News & General
Topic: Burton Malkiel says "Don't Buy Bonds"
Replies: 48
Views: 9282

Burton Malkiel says "Don't Buy Bonds"

Just looking for some thoughts on Malkiel's reasoning on why to not buy bonds. He says we need to look at history. Here is the video clip:

https://youtu.be/Go2CnKgyonU

He mentions it at the end of the video, around the 5 minute mark.
by neomutiny06
Tue Jan 10, 2017 12:19 pm
Forum: Investing - Theory, News & General
Topic: Mr. Larimore, reasons for your decided international %
Replies: 1
Views: 792

Mr. Larimore, reasons for your decided international %

Dear Taylor, I would like to ask how you arrived at your US/Int'l percentages. What are they currently? In the Bogleheads' Guide book, you and the authors acknowledge John Bogle's comments suggesting 20% of int'l would be okay. He has many concerns about currency risk, investor protections, etc. Tha...
by neomutiny06
Mon Jan 09, 2017 1:39 pm
Forum: Investing - Theory, News & General
Topic: How to know your risk tolerance, without ever living through a crash?
Replies: 29
Views: 2721

Re: How to know your risk tolerance, without ever living through a crash?

1. Don't appoint yourself as the investment guru for your friends. If someone asks you for your opinion, offer it, but otherwise keep your mouth shut. Especially if the gist of the conversation is bragging. 2. To answer the question in your title: you can't. Make a guess as to your risk tolerance (...
by neomutiny06
Mon Jan 09, 2017 8:54 am
Forum: Investing - Theory, News & General
Topic: How to know your risk tolerance, without ever living through a crash?
Replies: 29
Views: 2721

How to know your risk tolerance, without ever living through a crash?

Many of my friends are Millennials. And I'm concerned that 100% stocks is just too aggressive for them. They don't know the hurt that may happen when the market tanks. Furthermore, their portion in bonds should probably be split between treasuries and TIPS, because they'll need that boost up when th...
by neomutiny06
Sun Jan 08, 2017 8:43 pm
Forum: Investing - Theory, News & General
Topic: VTEB has higher credit quality than VWITX? [Vanguard Tax-exempt ETF vs. Int-term Bond]
Replies: 1
Views: 407

VTEB has higher credit quality than VWITX? [Vanguard Tax-exempt ETF vs. Int-term Bond]

Looking at Morningstar, Vanguard's Tax-Exempt ETF has a higher credit quality than Vanguard's Intermediate-Term Tax-Exempt fund. Thoughts on this?
by neomutiny06
Sun Jan 08, 2017 2:10 pm
Forum: Investing - Theory, News & General
Topic: Bogle worried Vanguard is getting too big
Replies: 68
Views: 13013

Re: Bogle worried Vanguard is getting too big

"Do index funds contribute enough buying pressure on certain stocks to bid up stocks to artificially high prices?" I have no idea, but if it is happening or does happen, it would work the other way too. If index people get scared and pull their money out of the market that would drive pri...
by neomutiny06
Sat Jan 07, 2017 6:45 pm
Forum: Investing - Theory, News & General
Topic: Treasury returns historically almost match corporate bonds?
Replies: 9
Views: 1046

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 ...
by neomutiny06
Sat Jan 07, 2017 8:59 am
Forum: Investing - Theory, News & General
Topic: Treasury returns historically almost match corporate bonds?
Replies: 9
Views: 1046

Treasury returns historically almost match corporate bonds?

I was reading Swedroe and Bernstein, and they say that it's almost neck and neck between treasuries and corporates after expenses. For total returns. So if this is true, than for a long-term investor, corporates make no sense. Treasuries give you similar returns with much less risk. For an investor ...
by neomutiny06
Sat Jan 07, 2017 7:47 am
Forum: Investing - Theory, News & General
Topic: Can someone explain Vanguard's higher turnover rates vs Index Funds?
Replies: 22
Views: 2328

Re: Can someone explain Vanguard's higher turnover rates vs Index Funds?

VFITX is an actively mansged fund. The last time I looked, it was 90% treasuries and 10% CMBS. That was back in July. If you are looking to implement intermediate treasuries in your asset allocation, VSIGX, the index fund is a pure play on treasuries (and their equivalents). As an active fund, I ex...
by neomutiny06
Fri Jan 06, 2017 4:01 pm
Forum: Investing - Theory, News & General
Topic: Can someone explain Vanguard's higher turnover rates vs Index Funds?
Replies: 22
Views: 2328

Re: Can someone explain Vanguard's higher turnover rates vs Index Funds?

A fair proportion of turnover in the Intermediate Treasury fund is due to "mortgage-dollar-roll activity", which is not turnover of basic bonds. This is spelled out in the annual and semi-annual reports. Thus, the true turnover is lower. As with other posters, I wouldn't spend a lot of ti...
by neomutiny06
Fri Jan 06, 2017 8:39 am
Forum: Investing - Theory, News & General
Topic: Can someone explain Vanguard's higher turnover rates vs Index Funds?
Replies: 22
Views: 2328

Can someone explain Vanguard's higher turnover rates vs Index Funds?

Hi all. I try and choose funds that are passive, low cost, and that have low turnover. If I'm correct, funds with lower turnover have less trading costs charged to the investor. Vanguard's Intermediate-Term Treasury Fund (VFITX) , which is passive-like, has had turnover rates of (last 5 years), 273%...
by neomutiny06
Thu Jan 05, 2017 9:17 am
Forum: Investing - Theory, News & General
Topic: My conversation with Burton Malkiel
Replies: 10
Views: 1767

Re: My conversation with Burton Malkiel

alpenglow wrote:Thank you for sharing!

Pleasure!
by neomutiny06
Thu Jan 05, 2017 8:35 am
Forum: Investing - Theory, News & General
Topic: My conversation with Burton Malkiel
Replies: 10
Views: 1767

My conversation with Burton Malkiel

I was able to shake hands with Burton Malkiel in person recently. He is a wonderful man who has done a great service for the individual investor. I know many Bogleheads admire his work. I wanted to share our brief conversation with you. I am the first to point out that his recommendations over the y...
by neomutiny06
Thu Jan 05, 2017 8:03 am
Forum: Investing - Theory, News & General
Topic: If you only have 20% in bonds...
Replies: 42
Views: 7485

Re: If you only have 20% in bonds...

Here is my late answer to this thread. Bonds supposedly serve three functions: 1) safety, 2) rebalancing, 3) income. As such I would do an equal split between 1) Series I savings bonds. The safest bonds out there. Great for safety. Good for skyrocketing interest rates or inflation. 2) Medium to lon...
by neomutiny06
Tue Jan 03, 2017 11:42 pm
Forum: Investing - Theory, News & General
Topic: Bernstein on Bonds...wow
Replies: 31
Views: 4767

Bernstein on Bonds...wow

http://abnormalreturns.com/2014/07/21/to-bond-etf-or-not/ I just found this article online. Curious on thoughts. -He criticizes Vanguard's management on certain funds. -He also says he does not recommend Bond ETFs in any case. -Also, he says there is little reason to pay mutual fund fees if you can...
by neomutiny06
Tue Jan 03, 2017 10:15 am
Forum: Investing - Theory, News & General
Topic: 2017 and on - Bond Strategy
Replies: 12
Views: 3286

Re: 2017 and on - Bond Strategy

In retirement accounts I hold only Treasury and TIPS funds (VFIUX & FSIYX). In taxable, only the safest (credit risk) intermediate-term bond fund I could find (BMBIX). Yes, giving up some yield. I've learned to live with it. Wow, that muni fund is quite a bit better quality than VWITX at Vangua...
by neomutiny06
Tue Jan 03, 2017 8:58 am
Forum: Investing - Theory, News & General
Topic: Could Vanguard's municipal bond funds be better?
Replies: 4
Views: 790

Could Vanguard's municipal bond funds be better?

I'm looking at BMBSX which is a municipal bond fund from Baird, and it is of much higher quality than Vanguard's VWITX. Why does Vanguard include so many muni bonds below AAA rating? Are there any better alternatives? BMBSX has a high expense ratio. Thanks.
by neomutiny06
Tue Jan 03, 2017 8:08 am
Forum: Investing - Theory, News & General
Topic: 2017 and on - Bond Strategy
Replies: 12
Views: 3286

Re: 2017 and on - Bond Strategy

In retirement accounts I hold only Treasury and TIPS funds (VFIUX & FSIYX). In taxable, only the safest (credit risk) intermediate-term bond fund I could find (BMBIX). Yes, giving up some yield. I've learned to live with it. Wow, that muni fund is quite a bit better quality than VWITX at Vangua...
by neomutiny06
Tue Jan 03, 2017 8:06 am
Forum: Investing - Theory, News & General
Topic: 2017 and on - Bond Strategy
Replies: 12
Views: 3286

Re: 2017 and on - Bond Strategy

Any thoughts to share? Am I giving up a ton of yield this way? Or is the downside protection/rebalancing bonus worth it? What's your asset allocation? At only 20% bonds, your returns will be dominated by stocks, so pursuing a higher yield in bonds won't help that much even if you achieve it (4% yie...
by neomutiny06
Mon Jan 02, 2017 11:24 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's government bond index funds
Replies: 31
Views: 6414

Re: Vanguard's government bond index funds

Does anyone favor or avoid government bond index funds compared to treasury funds for any particular reason? I purchased VSIGX (index fund) today, instead of VFITX (Intermediate Treasury) for the following reasons: 1. Duration statement of prospectus: 3-10 for VSIGX, 5-10 for VFITX. 2. VFITX is onl...
by neomutiny06
Mon Jan 02, 2017 11:19 pm
Forum: Investing - Theory, News & General
Topic: 2017 and on - Bond Strategy
Replies: 12
Views: 3286

2017 and on - Bond Strategy

I am more and more intrigued by Larry Swedroe and David Swensen's arguments to own only treasuries. Swedroe makes the case that corporate bonds do not have much of a premium. But besides that, they tend to show their risk exactly when you don't want them to. So in effect, when the market is crashing...
by neomutiny06
Mon Jan 02, 2017 11:08 am
Forum: Investing - Theory, News & General
Topic: CDs or Municipal Bond Funds in taxable?
Replies: 3
Views: 566

Re: CDs or Municipal Bond Funds in taxable?

Neomutiny have no clue where you got the idea I would say CDs. I don't own any CDs in taxable accounts, only munis. But one has to do the math and it often will depend on what part of the yield curve you are talking about. As example the muni curve tends to be steeper, with very low rates on shorte...
by neomutiny06
Mon Jan 02, 2017 10:50 am
Forum: Investing - Theory, News & General
Topic: CDs or Municipal Bond Funds in taxable?
Replies: 3
Views: 566

CDs or Municipal Bond Funds in taxable?

Which is better? How do you compare the benefits and cons of using CDs vs Municipal Bond Funds? Larry Swedroe will say CDs. Bogle will say Munis. I know it depends on personal situation. What are the factors you consider to make your decision?
by neomutiny06
Mon Jan 02, 2017 10:48 am
Forum: Investing - Theory, News & General
Topic: Bogle worried Vanguard is getting too big
Replies: 68
Views: 13013

Re: Bogle worried Vanguard is getting too big

Your quote doesn't say why "the concentration troubles" Mr Bogle. Any more to the quote that you can provide. Many seem to be assuming the "trouble" with market concentration is the potential to manipulate prices. But, the trouble could be other things as well, for example maybe...
by neomutiny06
Mon Jan 02, 2017 10:10 am
Forum: Personal Finance (Not Investing)
Topic: PENFED 5 year CD rate 2.25%
Replies: 6
Views: 1555

Re: PENFED 5 year CD rate 2.25%

epictetus wrote:Just fyi,
I saw the rate for 5 year CD at PENFED was 2.25%.
Looks like early redemption penalty within first year is all interest earned.
After first year the penalty is 30% of the interest the certificate would have earned if it had been held to maturity.


Penalty sounds too high for me.
by neomutiny06
Sun Jan 01, 2017 11:44 pm
Forum: Investing - Theory, News & General
Topic: Bogle worried Vanguard is getting too big
Replies: 68
Views: 13013

Bogle worried Vanguard is getting too big

I'm not sure I understand the reasoning for his worries. Can anyone explain if they have some further insight or other quotes from Bogle? From a 2012 interview with ETF.com: "I do worry that Vanguard is getting too big. For years the highest market share in the mutual fund industry, going back ...
by neomutiny06
Sat Dec 31, 2016 5:16 pm
Forum: Investing - Theory, News & General
Topic: Does it matter "when" you buy bonds?
Replies: 11
Views: 1188

Re: Does it matter "when" you buy bonds?

Of course it matters when you buy bond fund shares. The question really is, Does it matter enough to you? Let me ask a point blank question: Take the fund VICSX. Would you rather have bought on 09/29/2016 or 3 months later on 12/15/2016? Yes I see your point. Down 3% vs 0%. So it's just price I'm l...
by neomutiny06
Sat Dec 31, 2016 4:30 pm
Forum: Investing - Theory, News & General
Topic: Does it matter "when" you buy bonds?
Replies: 11
Views: 1188

Does it matter "when" you buy bonds?

I am contributing to my accounts this January. I will be adding quite a bit to my Vanguard Corporate Bond Index fund and my Vanguard TIPS fund. I keep reading about timing the bond market. Is there a good or bad time to buy into bond funds? Is it anything like stocks being expensive or cheap? Also, ...
by neomutiny06
Sat Dec 31, 2016 9:29 am
Forum: Investing - Theory, News & General
Topic: If you only have 20% in bonds...
Replies: 42
Views: 7485

Re: If you only have 20% in bonds...

No need for TIPS funds at your age or possibly any age. No income from TIPS either. We sold that fund many years ago and consolidated with Total Bond and this has worked very well. In fact Vanguard recommends a two fund approach - Total Bond and Total International Bond. I'm using 50% of TIPS becau...
by neomutiny06
Fri Dec 30, 2016 6:33 pm
Forum: Investing - Theory, News & General
Topic: Bogle worried about currency risk in Int'l Stocks
Replies: 34
Views: 3146

Re: Bogle worried about currency risk in Int'l Stocks

Yes, currency risk is real assuming you will be spending the money in US$s. This is a good reason to hold less than the cap weight (around 50%) of equities in International. Many people hold 20% to 40% of their equities in Int'l for this reason. Ok this is interesting. Because of currency risk, man...
by neomutiny06
Fri Dec 30, 2016 11:54 am
Forum: Investing - Theory, News & General
Topic: Bogle worried about currency risk in Int'l Stocks
Replies: 34
Views: 3146

Re: Bogle worried about currency risk in Int'l Stocks

I think currency "risk" is a great reason to hold international stock. If everything you own is in US dollars - you are taking one big risk with the US currency. Granted the US currency is currently considered the world's best currency - it may not be in 20 years. Essentially - internatio...
by neomutiny06
Fri Dec 30, 2016 11:18 am
Forum: Investing - Theory, News & General
Topic: Bogle worried about currency risk in Int'l Stocks
Replies: 34
Views: 3146

Bogle worried about currency risk in Int'l Stocks

I am reading "Common Sense on Mutual Funds" and John Bogle states that he does not like international investing. Many of his reasons seem to relate to a "home country bias" where he favors the US. I don't agree with that point of view. I think nobody can say which countries will ...
by neomutiny06
Fri Dec 30, 2016 8:43 am
Forum: Investing - Theory, News & General
Topic: The Middle Road of Asset Allocation
Replies: 12
Views: 2062

Re: The Middle Road of Asset Allocation

White Coat Investor wrote:Any reasonable portfolio will do as long as you can stick with it and fund it adequately.


This statement is probably overlooked, myself included
by neomutiny06
Fri Dec 30, 2016 12:38 am
Forum: Investing - Theory, News & General
Topic: The Middle Road of Asset Allocation
Replies: 12
Views: 2062

The Middle Road of Asset Allocation

I have read quite a few authors suggested by Bogleheads. While they all agree on passive investing, their sample expert portfolios always look far different from each other. So here are some ways I have taken the "Middle Road:" Stock/Bond ratio? Bogle: Age in Bonds Paul Merriman: 120 minus...
by neomutiny06
Thu Dec 29, 2016 6:45 pm
Forum: Investing - Theory, News & General
Topic: How many of you invest 100% at Vanguard?
Replies: 118
Views: 8826

Re: How many of you invest 100% at Vanguard?

HueyLD wrote:I will not put all my eggs in one basket. :)


For what reason?
by neomutiny06
Thu Dec 29, 2016 11:52 am
Forum: Investing - Theory, News & General
Topic: How many of you invest 100% at Vanguard?
Replies: 118
Views: 8826

Re: How many of you invest 100% at Vanguard?

My wife's 403b is at TIAA, and I have the choice of TIAA and VG. I have switched back and forth between TIAA and VG, with $$ in both. I honestly like the interface at TIAA a lot more, and have been piling in there b/c I am a fan of TREA. Now that I am over the limit for TREA, I will prob start send...
by neomutiny06
Thu Dec 29, 2016 8:24 am
Forum: Investing - Theory, News & General
Topic: How many of you invest 100% at Vanguard?
Replies: 118
Views: 8826

Re: How many of you invest 100% at Vanguard?

Oh... about 70 to 75% is at Vanguard, the remainder is split among the following: - TD Ameritrade -HSA - Utah 529/DFA - Treasury Direct - I Bonds/EE Bonds/TIPS Ladder - Fidelity - Spartan TSM - US Govt - Future SS (not included in above %) - Current Employer - Future pension (not included in above ...
by neomutiny06
Wed Dec 28, 2016 10:37 pm
Forum: Investing - Theory, News & General
Topic: How many of you invest 100% at Vanguard?
Replies: 118
Views: 8826

Re: How many of you invest 100% at Vanguard?

I currently invest solely in Vanguard ETFs at Vanguard in an IRA and a taxable account. They were a solid custodian as I started investing and I have few complaints. For the following 4 reasons I will be moving to Merrill Edge: 1) Vanguard has screwed up my cost basis accounting and takes weeks to ...
by neomutiny06
Wed Dec 28, 2016 9:13 pm
Forum: Investing - Theory, News & General
Topic: Is the Vanguard TIPs fund Active or Passive?
Replies: 19
Views: 2312

Re: Is the Vanguard TIPs fund Active or Passive?

White Coat Investor wrote:Like most Vanguard bond funds, it isn't an index fund but it is very index like, which is really all that matters.


Thank you!
by neomutiny06
Wed Dec 28, 2016 7:18 pm
Forum: Investing - Theory, News & General
Topic: If you only have 20% in bonds...
Replies: 42
Views: 7485

If you only have 20% in bonds...

If you are younger and only have 20% in bonds, which funds would you use? Total Bond Market?

And/or would you pair that with a TIPS fund? I have heard some good arguments for using TIPS, but I am not sure if that applies to a young investor.
by neomutiny06
Wed Dec 28, 2016 1:56 pm
Forum: Investing - Theory, News & General
Topic: How many of you invest 100% at Vanguard?
Replies: 118
Views: 8826

How many of you invest 100% at Vanguard?

I am close to moving all of my assets to Vanguard. I have a couple of funds at Schwab due to possible doomsday scenarios, but after reading up on it, it looks like there isn't much to worry about by using only one mutual fund family. There are many protections in place.
by neomutiny06
Wed Dec 28, 2016 9:53 am
Forum: Investing - Theory, News & General
Topic: Is the Vanguard TIPs fund Active or Passive?
Replies: 19
Views: 2312

Re: Is the Vanguard TIPs fund Active or Passive?

I think it might as well be an index fund... see the chart below. When I needed a TIPS fund at Fidelity, after mulling it over, I opted for the iShares TIP ETF (ER 0.20). It IS an index ETF. Since then, I've consolidated everything at Vanguard and I am perfectly content with VIPSX (ER 0.20%) even t...
by neomutiny06
Tue Dec 27, 2016 10:57 pm
Forum: Investing - Theory, News & General
Topic: Does Vanguard always have our best interests in mind?
Replies: 55
Views: 5117

Re: Does Vanguard always have our best interests in mind?

They went from recommending equity portfolios to include only 20% international, to 30%, to 40%, and now talk of getting to 50%. What talk from Vanguard? I heard one Vanguard advisor in a video on YouTube said that the "least amount of international" equity one should have is 40%, and pro...

Go to advanced search