Search found 4456 matches

by ogd
Thu Apr 28, 2016 9:22 pm
Forum: Investing - Help with Personal Investments
Topic: Total Bond vs Municipal Bond Funds
Replies: 47
Views: 4093

Re: Total Bond vs Municipal Bond Funds

This is what's happening inside of the CA fund. It holds a lot of older premium bonds and it is distributing at a cost to capital value. Just to clarify -- the Vanguard fund isn't doing this maliciously, it really is the better thing to do tax-wise. But some managed funds hold premium bonds to attr...
by ogd
Thu Apr 28, 2016 9:18 pm
Forum: Investing - Help with Personal Investments
Topic: Total Bond vs Municipal Bond Funds
Replies: 47
Views: 4093

Re: Total Bond vs Municipal Bond Funds

Sure, the SEC yield for VCAIX is 1.28%, but it's actually distributing 2.60 . Total bond is distributing 2.51%. Of course those could change, but the distribution yields have been relatively steady. That should change your calculations just a bit. By that measure, I have a 1 year Treasury distribut...
by ogd
Thu Apr 28, 2016 7:54 pm
Forum: Investing - Help with Personal Investments
Topic: Total Bond vs Municipal Bond Funds
Replies: 47
Views: 4093

Re: Total Bond vs Municipal Bond Funds

So....drumroll......What is that "bad" about Total Bond Index int taxable? 2/3 is Treasuries and thus no state or local taxes. Much less risk. I think this should be discussed. Unfortunately, California and a couple other states only give you the exemption if 50% or more assets of a fund ...
by ogd
Thu Apr 28, 2016 7:32 pm
Forum: Investing - Theory, News & General
Topic: dividend stocks
Replies: 82
Views: 4244

Re: dividend stocks

Ogd, Financialdave & Larryswedroe, I just wanted to let you know that I bought into the "Total Stock Market" fund today. My plan is to dca into the fund & let it roll for years. Long term buy & hold. Thank you for all your help & guidance...I appreciate it :) Awesome -- co...
by ogd
Thu Apr 28, 2016 7:25 pm
Forum: Investing - Help with Personal Investments
Topic: Total Bond vs Municipal Bond Funds
Replies: 47
Views: 4093

Re: Total Bond vs Municipal Bond Funds

I also totally agree with ogd that these calculators (or any math) merely convert the rates and don't address risk. One must then determine if the extra yield is worth the risk just like one would have to do on taxable bonds. For example, is the yield on an investment grade taxable bond worth the e...
by ogd
Wed Apr 27, 2016 7:30 pm
Forum: Investing - Theory, News & General
Topic: Why not ETFs?
Replies: 54
Views: 3117

Re: Why not ETFs?

I still don't fully comprehend the idea of "properly trading" ETFs. I understand the bid/ask spread and limit orders, etc, but as a buy and hold investor with a 30+ year horizon, why would I care about optimally setting up limit orders over a few cents? Well, who cares about $10 a year? T...
by ogd
Wed Apr 27, 2016 2:36 pm
Forum: Investing - Theory, News & General
Topic: Why not ETFs?
Replies: 54
Views: 3117

Re: Why not ETFs?

But for tax gain harvesting, ETFs win easily. Possibly (haven't been in that situation for a long time), but remember that there are workarounds for MFs. One is transacting by mail, another is the ole' automatic transaction. A third one that I believe works is the big MF escape hatch at Vanguard, c...
by ogd
Wed Apr 27, 2016 11:58 am
Forum: Investing - Theory, News & General
Topic: Allan Roth on why bond funds are better than individual bonds
Replies: 63
Views: 4638

Re: Allan Roth on why bond funds are better than individual bonds

This is simple and IMO not even debatable issue as one can reproduce easily the risk/returns with just a few bonds but better yet easily beat it with CDs . (Underline mine) I am simply challenging this, as I think that it is misleading . Longinvest: while I would not call it easy , here's how I wou...
by ogd
Wed Apr 27, 2016 11:46 am
Forum: Investing - Help with Personal Investments
Topic: Expensive Bond Fund in 401k or Vanguard in Taxable?
Replies: 16
Views: 867

Re: Expensive Bond Fund in 401k or Vanguard in Taxable?

You should use VINIX in tax-advantaged, for now. Then argue with your HR/provider that there should be a cheap bond fund in there, or at least cheap Target Retirement funds (of which the very short horizon ones, like Vanguard TR Income, are bond-heavy enough to be a good substitute). The 0.5% ER dis...
by ogd
Wed Apr 27, 2016 11:42 am
Forum: Investing - Theory, News & General
Topic: Why not ETFs?
Replies: 54
Views: 3117

Re: Why not ETFs?

One advantage of ETFs that I've encountered is tax loss harvesting. Many mutual funds have a minimum holding period (60/90 days) that can prevent one from selling them at a loss. This is now 30 days for Vanguard, which matches the wash sale period that would prevent you from going back into the sam...
by ogd
Wed Apr 27, 2016 11:38 am
Forum: Investing - Help with Personal Investments
Topic: Total Bond vs Municipal Bond Funds
Replies: 47
Views: 4093

Re: Total Bond vs Municipal Bond Funds

In that case, is the idea be that, the greater a 2-year CD's quoted yield compared to VSBSX, the more compelling the case for an investor, confident that they will not need to redeem prior to 2 years, to buy the CD? Yes, certainly. The reason CDs are exempt (so to speak) from the rationale that hig...
by ogd
Wed Apr 27, 2016 11:34 am
Forum: Investing - Help with Personal Investments
Topic: Total Bond vs Municipal Bond Funds
Replies: 47
Views: 4093

Re: Morningstar Calculator

oofoo2000: You may find this helpful: Morningstar Tax-Equivalent Yield Calculator Best wishes. Taylor Hi Taylor, In my posts above I'm arguing that one shouldn't use tax-equivalent yield calculators any more than they should choose the higher-yielding fund of two taxable funds, or two tax-exempt. S...
by ogd
Wed Apr 27, 2016 10:44 am
Forum: Investing - Theory, News & General
Topic: Why not ETFs?
Replies: 54
Views: 3117

Re: Why not ETFs?

Vanguard ETFs trade commission free, and I'm assuming there's no active trading going on. Otherwise the mutual funds aren't really an option at all. If you're buying and holding less than $10k, and the choice is between VTI and VTSMX, I'm taking VTI every time. I see no reason to spend that extra $...
by ogd
Wed Apr 27, 2016 10:41 am
Forum: Investing - Help with Personal Investments
Topic: Total Bond vs Municipal Bond Funds
Replies: 47
Views: 4093

Re: Total Bond vs Municipal Bond Funds

Year-to-date through 3/31 VSBSX is up 0.89%. The CD's "return" would be something like 0.38%, is that right? Based purely on these statistics, I would think someone investing at the beginning of the year would have been better off owning VSBSX (or the equivalent in Investor Shares). On to...
by ogd
Wed Apr 27, 2016 10:24 am
Forum: Investing - Theory, News & General
Topic: Why not ETFs?
Replies: 54
Views: 3117

Re: Why not ETFs?

There's a very common usage for ETF's: New investors. If you don't have enough in your account to put into the Admiral shares, then ETFs are functionally identical. Switch them over when you hit the required minimum. Personally, I don't understand the place for Investor shares in the Boglehead phil...
by ogd
Wed Apr 27, 2016 10:17 am
Forum: Investing - Theory, News & General
Topic: dividend stocks
Replies: 82
Views: 4244

Re: dividend stocks

All I know is...I like my dividends. Every quarter I look at my Vanguard Brokerage Account to see how many more shares my dividends bought. I think to myself "compounding" the 8th wonder of the world. What's not to like about compounding... snarlyjack: I'm sure it's fun to watch, but rest...
by ogd
Wed Apr 27, 2016 9:37 am
Forum: Investing - Help with Personal Investments
Topic: Total Bond vs Municipal Bond Funds
Replies: 47
Views: 4093

Re: Total Bond vs Municipal Bond Funds

I'll just add that if we are going to talk about a free lunch--even one that has a tiny possibility of being spoiled or stolen--it seems to make more sense to compare munis to Treasuries than it does to compare them to corporates, as I read "free lunch" as getting a much better after-tax ...
by ogd
Tue Apr 26, 2016 8:10 pm
Forum: Investing - Help with Personal Investments
Topic: How do bond funds REALLY work?
Replies: 16
Views: 1733

Re: How do bond funds REALLY work?

So my question is this, how do bond funds actually work? What you're asking about is the price of bonds in general, not just funds. If you own a bunch of bonds and don't like to manage them blindfolded (i.e. pretending their price and yield doesn't change constantly), you'll face the same questions...
by ogd
Tue Apr 26, 2016 7:46 pm
Forum: Investing - Theory, News & General
Topic: "For bondholders, rising interest rates can have an upside"
Replies: 25
Views: 2685

Re: "For bondholders, rising interest rates can have an upside"

The FA was very against it ("isnt even up for discussion") Time to remind him who pays who, and whose risk tolerance matters. He said it would be better ... to put it all in index funds for the time being and wait until bonds are better Time to remind him that he's not running a multi bil...
by ogd
Tue Apr 26, 2016 1:48 am
Forum: Investing - Help with Personal Investments
Topic: Total Bond vs Municipal Bond Funds
Replies: 47
Views: 4093

Re: Total Bond vs Municipal Bond Funds

I don't think the market is very good at pricing low-probability events with extraordinary consequences, such as a series of significant municipal bond defaults. Not that I or anyone I know can price it better , saltycaper: I think that in reality the snippets in bold are functionally equivalent. W...
by ogd
Mon Apr 25, 2016 8:18 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth on why bond funds are better than individual bonds
Replies: 63
Views: 4638

Re: Allan Roth on why bond funds are better than individual bonds

Ogd You're kidding right? You can easily buy CDs with one maturing each year. Very difficult (:-)) That's for tax advantaged accounts. For taxable and in higher brackets likely a muni fund better for most individuals Larry Larry: I am not kidding that the simplicity argument doesn't work. First off...
by ogd
Mon Apr 25, 2016 6:32 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth on why bond funds are better than individual bonds
Replies: 63
Views: 4638

Re: Allan Roth on why bond funds are better than individual bonds

abuss Now why isn't it simple. You buy the bonds and hold them and just roll them at maturity. Simple as can get basically. Especially if taxables. The key is to be as simple as need be, but not simpler Larry Don't think simplicity can be an argument, Larry. Bond funds win this hands-down 1) You bu...
by ogd
Mon Apr 25, 2016 6:28 pm
Forum: Investing - Help with Personal Investments
Topic: Total Bond vs Municipal Bond Funds
Replies: 47
Views: 4093

Re: Total Bond vs Municipal Bond Funds

Ok, I've chewed on this a little and I think I get it. This may be obvious to many, but is this how I should think of all of this: non-muni fund yields / risk can be compared with each other because they're on a level playing field (i.e. all taxable, yield=risk). Yes, pretty much. Using an after-ta...
by ogd
Mon Apr 25, 2016 3:36 pm
Forum: Investing - Theory, News & General
Topic: "For bondholders, rising interest rates can have an upside"
Replies: 25
Views: 2685

Re: "For bondholders, rising interest rates can have an upside"

Thanks for the article Taylor! It's nice to have an easy to read Vanguard reference for such questions. I would also add this argument: the bad scenario when keeping bonds at longer duration, rising interest rates, comes with the silver lining shown in the article. By contrast, the bad scenario when...
by ogd
Mon Apr 25, 2016 3:30 pm
Forum: Investing - Help with Personal Investments
Topic: Total Bond vs Municipal Bond Funds
Replies: 47
Views: 4093

Re: Total Bond vs Municipal Bond Funds

However, if I follow this line of logic, since my target portfolio is the three-fund portfolio with TBM shouldn't I be using TBM in taxable since in the words of Bogle I'll be owning the entire haystack (its risks and rewards) as opposed to a small slice of the bond market (tax-exempt municipals) a...
by ogd
Mon Apr 25, 2016 1:31 pm
Forum: Investing - Theory, News & General
Topic: is now a good time to buy - opinions
Replies: 12
Views: 1185

Re: is now a good time to buy - opinions

Curios for opinions if now is a good time to jump in, or is general opinion that the bottom is soft right now? Yes, it's a good of a time as we can discern. Timing the market (i.e. deciding when "the bottom is soft" with some probability of success) is so hard that when full time professi...
by ogd
Mon Apr 25, 2016 1:26 pm
Forum: Investing - Help with Personal Investments
Topic: Total Bond vs Municipal Bond Funds
Replies: 47
Views: 4093

Re: Total Bond vs Municipal Bond Funds

Hi Bogleheads, I realize that at higher income tax levels the muni fund may make more sense, but in my tax situation it seems like choosing the Total Bond fund in the taxable account is appropriate which totally flies in the face of conventional wisdom as I understand it. Am I totally off-base here...
by ogd
Sun Apr 24, 2016 1:54 pm
Forum: Investing - Help with Personal Investments
Topic: Misallocated, No Bonds - What Now?
Replies: 11
Views: 1194

Re: Misallocated, No Bonds - What Now?

Any major selling would trigger gains taxes and push me into a higher tax bracket. Also with bond yields well below average yields, it would appear that a major reallocation to bonds would likely result in capital losses as the yields revert to the mean It's a mistake to think that low safe bond yi...
by ogd
Sun Apr 24, 2016 1:33 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth on why bond funds are better than individual bonds
Replies: 63
Views: 4638

Re: Alan Roth on why bond funds are better than individual bonds

But, number 4, interest risk... well, that's argued endlessly. However, his statement that "That is a little lacking in the logic department since a bond fund is merely a collection of bonds" is spurious. It is not "merely" a collection of bonds. It is more than that: it is a co...
by ogd
Fri Apr 22, 2016 4:09 pm
Forum: Investing - Help with Personal Investments
Topic: First time investor, nervous about dropping $150.000 into the market
Replies: 8
Views: 1975

Re: First time investor, nervous about dropping $150.000 into the market

Some answers below: Tax-Exempt Bonds? I've run out of place in my tax advantaged account and it seems to me that at my tax rates regular bonds in taxable account are a bad idea. Vanguard also offers CA-tax exempt bonds. Should I consider them? Why would I want to choose one over the other? Yes, use ...
by ogd
Thu Apr 21, 2016 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: Entering the market: lump sum vs DCA vs tactical asset allocation
Replies: 19
Views: 1095

Re: Entering the market: lump sum vs DCA vs tactical asset allocation

Overall, your points are well taken. However, I'm not convinced that what I'm suggesting is equivalent to running a "tactical allocation fund." The difference is that it's one time and only shifts towards my target asset allocation, which is *not* based on Shiller P/E but market capitaliz...
by ogd
Thu Apr 21, 2016 7:58 pm
Forum: Investing - Help with Personal Investments
Topic: Entering the market: lump sum vs DCA vs tactical asset allocation
Replies: 19
Views: 1095

Re: Entering the market: lump sum vs DCA vs tactical asset allocation

I am not so much anti-DCA as anti-VooDoo. It's fine to DCA if you need some time to get used to being invested in anything other than cash, but don't fool yourself thinking there is some clever math going on that is protecting you from market forces. There isn't, except one's skill at market timing...
by ogd
Thu Apr 21, 2016 6:05 pm
Forum: Investing - Theory, News & General
Topic: Bond Fund Strategy?
Replies: 26
Views: 2702

Re: Bond Fund Strategy?

I am looking at the returns for the past 30 years when rates were falling, and you can see there is a tail wind on returns. I don't see rates falling much lower as they are at historic lows. So...logically, I would expect the opposite effect while rates rise as to when rates were falling, i.e. retu...
by ogd
Thu Apr 21, 2016 5:43 pm
Forum: Investing - Help with Personal Investments
Topic: What's the deal with long term gov bonds?
Replies: 26
Views: 1833

Re: What's the deal with long term gov bonds?

Is modern portfolio theory replacing Boglehead? In 20 years, will I have been an idiot for going Boglehead? It was supposed to be so simple: "pick cheap index funds" and wait. Now, I have to decide on LT index bonds vs U.S. Bond Index (both cheap). So confused??? You don't need to. You wa...
by ogd
Thu Apr 21, 2016 5:38 pm
Forum: Investing - Theory, News & General
Topic: Bond Fund Strategy?
Replies: 26
Views: 2702

Re: Bond Fund Strategy?

My advice, like others, is to forget about bond market timing. I guess I gave everyone the wrong impression because I said I am not interested in long term bonds. I have no intention of timing bonds or stocks. Whatever I decide on, I will maintain that ratio for a decade or more. The sentence that ...
by ogd
Thu Apr 21, 2016 3:27 pm
Forum: Investing - Help with Personal Investments
Topic: What's the deal with long term gov bonds?
Replies: 26
Views: 1833

Re: What's the deal with long term gov bonds?

fortfun wrote:Ogd, would "wide" be us bond index fund? Sorry for my ignorance.

Yes, that's what I meant. The long term treasury fund is much narrower.
by ogd
Thu Apr 21, 2016 3:26 pm
Forum: Investing - Theory, News & General
Topic: Bond Fund Strategy?
Replies: 26
Views: 2702

Re: Bond Fund Strategy?

My advice, like others, is to forget about bond market timing. The schedule for interest rate increases is baked into the current prices / yields with far more data and subtlety than you can hope to manage. VBTLX by itself is perfectly appropriate for a 60/40 bond allocation. With only one gotcha. D...
by ogd
Thu Apr 21, 2016 3:18 pm
Forum: Investing - Help with Personal Investments
Topic: What's the deal with long term gov bonds?
Replies: 26
Views: 1833

Re: What's the deal with long term gov bonds?

Do not look at past performance. Look at current SEC yield to decide if it's "to good to be true". That past performance came because of decreasing yields, so it's bittersweet if you own the fund, just bitter if you don't. My recommendation is use the wide bond index fund unless stock AA i...
by ogd
Tue Apr 19, 2016 9:42 pm
Forum: Investing - Theory, News & General
Topic: A new kind of a roth back door.
Replies: 7
Views: 1618

Re: A new kind of a roth back door.

You can do this, but I would call it expensive. So you added another 5%, and this cost you taxes on a year's worth of gains of whatever would have been in your Roth (or else it cost you a lot more). Best case is bonds, which you relocate to taxable, make 2% and lose 0.5% to taxes; but in more normal...
by ogd
Mon Apr 18, 2016 6:25 pm
Forum: Investing - Theory, News & General
Topic: Why not buy a DIVIDEND stock?
Replies: 36
Views: 3172

Re: Why not buy a DIVIDEND stock?

Imagine two similarly situated stocks, one that pays a dividend and one that doesn't. Now imagine both companies fail and the stock price goes to zero. Which stock would you rather have owned? The dividend-less stock, obviously. I'm reinvesting dividends, so the dividend paying stock would have me ...
by ogd
Sun Apr 17, 2016 3:00 pm
Forum: Investing - Help with Personal Investments
Topic: convert to ETF?
Replies: 7
Views: 474

Re: convert to ETF?

For Vanguard funds, there is no difference in tax efficiency between the mutual fund shares and ETF shares of the same fund. So you never convert for this purpose - either it doesn't help or you can't because it's not the same fund.
by ogd
Thu Apr 14, 2016 11:28 am
Forum: Investing - Theory, News & General
Topic: Total Bond Achilles Heel?
Replies: 47
Views: 5052

Re: Total Bond Achilles Heel?

So, for those that don't like TBM, is there another Vanguard index fund that more closely matches your perception of what a better bond portfolio would look like? Is there a single fund that meets your criteria? If not, would Core Bond have any worth in this regard? I like VBILX (Int Term Bond Inde...
by ogd
Wed Apr 13, 2016 6:04 pm
Forum: Investing - Help with Personal Investments
Topic: International
Replies: 34
Views: 2124

Re: International

So as I am finishing up my portfolio acquisitions I am sort of questioning why should I buy international? My target allocation is 56/24 int/20 bond. I know the past doesn't predict the future, but when looking at the vanguard total int admiral fund, which I just bought, it hasn't done well at all ...
by ogd
Wed Apr 13, 2016 5:54 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Achilles Heel?
Replies: 47
Views: 5052

Re: Total Bond Achilles Heel?

We're talking past each other. ... A whole family of anti-indexing arguments have the form "it applies to that market, but not this market." Where "this" might be emerging markets stocks, bonds, small-caps. Of course that doesn't mean they are invalid, but I'm suspicious of the ...
by ogd
Wed Apr 13, 2016 5:21 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Achilles Heel?
Replies: 47
Views: 5052

Re: Total Bond Achilles Heel?

Yes, I do think this is a theoretical problem with the bond index construction. This is the same argument that's made about all kinds of indexing. It's no more valid or invalid for bonds than it is for stocks. In the case of stocks you frequently hear that the market puts the most money in the compa...
by ogd
Wed Apr 13, 2016 5:01 pm
Forum: Investing - Help with Personal Investments
Topic: Need advice on bond fund
Replies: 10
Views: 956

Re: Need advice on bond fund

I’m thinking that instead of simply moving the 10 % from stocks to bonds (Total Bond Mkt Index fund), I should add the Short Term Bond Index Fund (VBIRX), and put the 10 % there. My thinking is that the coming rise in interest rates would hit the Total Bond Mkt fund harder than the Short Term Bond ...
by ogd
Tue Apr 12, 2016 1:25 pm
Forum: Investing - Help with Personal Investments
Topic: Mutual or ETF?
Replies: 14
Views: 772

Re: Mutual or ETF?

I have about $13,500 i would like to put into my vanguard brokerage account for a yr or so then take 11,000 and put it into his and hers Roth accounts, I have 2 questions, would I be better off buying Vanguard total stock market or the S&P 500, and would I be better off buying index mutual fund...
by ogd
Tue Apr 12, 2016 12:49 pm
Forum: Investing - Theory, News & General
Topic: what is the draw of active management?
Replies: 37
Views: 1968

Re: what is the draw of active management?

At one point he said, "one of the misconceptions I often need to clear up is that everyone should be maxing out their 401(k)'s". Apparently he thinks taxable accounts should be filled before the 401(k) is maxed out (obviously against standard BH wisdom). The discussion should end right th...
by ogd
Tue Apr 12, 2016 12:39 pm
Forum: Investing - Theory, News & General
Topic: a look at unconstrained bond funds
Replies: 9
Views: 1047

Re: a look at unconstrained bond funds

Just like "smart beta", I want to ask why we let these guys choose their own adjectives? "Unconstrained" sounds too good. Who wants constraints? Must be strictly better than "constrained". A positive, liberating thing. Turns out not to be all that good in practice. How ...
by ogd
Tue Apr 12, 2016 10:57 am
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting for individual stock
Replies: 9
Views: 570

Re: Tax loss harvesting for individual stock

Thank you all for your replies! As to why i'm not selling all my holdings, i'm down about ~ 15% :oops: on my stock picks and wanted to wait at least till i break even. Do you think these stocks are outstanding investments right now, better than the market? Would you buy them anew? Do you think all ...

Go to advanced search